Govt To Evaluate Indian Products That Attract CVD In U.S.

NEW DELHI: Encouraged by the WTO ruling against the U.S. countervailing duty on certain Indian steel products, the government said it is undertaking an evaluation of all other products on which America has applied the same provision to impose CVD.

"This ruling potentially questions the validity of a number of other CVD (countervailing duty) proceedings conducted by the United States on products of Indian origin.

"The government is undertaking an evaluation all other products of Indian origin on which the U.S. has applied the same provision to arrive at CVD," the Commerce Ministry said.

This provision, it added, has been in existence in the U.S. for many years and India is the first country to successfully challenge this provision.

The U.S. Department of Commerce (USDOC) had imposed CVD on India's exports of hot rolled carbon steel flat products.

The measures continue to be in force and adversely impact the Indian exports, the Ministry added.

The World Trade Organisation Dispute Settlement Panel has held that the US law mandating cumulation of non-subsidised imports with subsidised imports while determining injury in a CVD investigation is inconsistent with WTO obligations.

The panel also held that the U.S. had no factual basis to hold that the grant of mining rights for iron ore and coal was a subsidy.

It has also found that the U.S. should not have ignored market prices available in India while determining the amount of subsidies, if any.

"The Panel has also held that the United States was not correct in applying adverse facts standard in 73 out of 85 instances for imposition of penultimate duty," the Ministry said.

The WTO body could not consider some of India's claims such as those relating to the methods of calculating the amount of subsidies and one relating to the application of adverse fact available.

The Panel has also not accepted India's claim that NMDC was not a "public body" within the meaning of WTO law, disregarding the previous ruling of the WTO Appellate Body in another WTO case.

"The ruling is appealable before the WTO Appellate Body and the decision to appeal against the same is currently under active consideration, in light of the systemic concerns on some of India's claims denied by the Panel" the Commerce Ministry added.