India and the US are attempting to clinch a trade deal in the wake of the latter proposing to withdraw Generalized System of Preference (GSP) benefits for Indian exports and have agreed a volume cap for steel shipments, sources at India’s Ministry of Commerce said on Monday, March 11.
The official talks between the two countries are working out a slew of concessions from both sides to agree on the new trade deal. In the case of steel exports from India, both sides have agreed to impose a volume ceiling of such exports of steel products to the US in lieu of which the US will exempt Indian steel from the additional 25 percent tariff imposed recently by the Trump Administration, the sources said. The annual steel export ceiling from India to the US will be average shipment volume to the US markets over the immediate three preceding years.
However, the sources added that, while the deal on steel has been agreed by officials of both sides, implementation will depend on the final signing of a new trade deal including bilateral trade of other products agreed by the two countries.
Also, Indian steel exporters have submitted that the trade negotiations should also include the current high countervailing duty on steel products imposed by the US in the range of 45-55 percent, the sources added.