Steel Ministry fears US tariff on imports will result in cross dumping
Stating that the US move could lead to cross dumping into the country, the Ministry as well as domestic industry representatives said there are two options before the USTR — the first is to have a 25 per cent duty levied on all imported steel, and the second is to cap the quantity of steel that the US administration will allow to be imported into the country.
Domestic steel manufacturers are pinning hopes on the meeting between representatives of the Commerce Ministry and the USTR which is scheduled to be held in less than a fortnight in the US. There has already been one round of meeting with the American representatives in June-end.
The approach to put a cap on imports is being preferred by the domestic industry as it allows 75 per cent of the subject steel to be consumed in the US and just 25 per cent to be left for a possible dumping into other countries. Effectively, the USTR could consider the annual steel imports as a reference point and could put a cap on allowing imports up to 75 per cent of the reference quantity for the time period the duty is enforced.