India’s Ministry of Steel has stated that it will hold consultations with the domestic steel industry before submitting its formal view on the ongoing 16-country free trade agreement under the Regional Comprehensive Economic Co-operation Pact (RCEP), a government official said on Monday, July 1.
The official said that, while the Ministry of Commerce is spearheading India’s negotiations regarding the RCEP, the Ministry of Steel will need to hold fresh consultations with all steel industry stakeholders as there have been several representations from the industry expressing concerns regarding the possibility of severe damage to domestic producers from surging imports, particularly from China.
The industry has pointed out that putting steel and steel products under zero tariffs as proposed in the ongoing RCEP talks will lead to the opening of the floodgates for imports, and has indicated that the Ministry of Steel needs to take a fresh look with the help of inputs from the industry before taking a formal view on the subject, and place it before the Ministry of Commerce, the official added.
Domestic steel producers have been seeking for steel to be kept out of the purview of the RCEP negotiations but, while the Indian government is expected to push for significant protection for domestic producers, a final view on keeping steel out of the RCEP will only be taken once fresh consultations are completed, the official said.