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WTO Appellate Body Accepts Major Indian Challenges to US
Dec 13, 2014

India has achieved a significant victory at the WTO, as the Appellate Body (AB) held that the Countervailing Duty (CVD) measures imposed by the United States against certain Hot Rolled Carbon Steel Flat Products are inconsistent with various provisions of the Agreement on Subsidies and Countervailing Measures (ASCM). It will definitely help the domestic manufacturers who had been suffering on account of inconsistent practices by the USDOC.

The United States Department of Commerce (US DOC) imposed Countervailing Duty (CVD) on India’s exports of Hot Rolled Carbon Steel Flat Products. India had challenged the determinations made by the US DOC in various investigations /reviews treating several programmes of India as subsidy whereas, these programmes do not confer any subsidy on the Indian exporters. Various provisions under challenge were that of US Tariff Act and the Code of Federal Regulations as being inconsistent with the provisions of WTO Subsidy Agreement (ASCM). The Panel Report was circulated on 14 July, 2014.

Thereafter, India and the US appealed before the WTO Appellate Body (AB) on various issues related to the Panel’s Rulings. On 8 December, 2014 the AB published its Report.

Under the US law, cumulation of subsidised imports and dumped imports is mandated for the participating countries to arrive at the injury margin. India challenged this measure as it has been impacting the CVD investigations by the US leading to exorbitant CVD against India. The AB ruled, in line with the Panel ruling, with a minor modification.

India will actively monitor the implementation of this ruling by the United States in order to ensure that the interests of Indian exporters are fully protected. India`s efforts in this dispute show case its commitment to ensuring a level playing field for its industry. India recognizes with appreciation the contribution made by various stakeholders including the domestic industry, the law firm and the various departments who worked in close coordination to achieve this result.


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