NEW DELHI: India has begun to legally examine the move by the United States to impose higher duties on steel and aluminium imports to check if countries are free to use domestic laws to raise taxes to secure their local industry.
The US’ threat of trade wars with countries to reduce its trade deficit has made India cautious as it anticipates a similar raise in duties on products it exports to Washington. “When a country (US) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” US President Donald Trump tweeted last week.
India will study if such a step is in accordance with norms of the World Trade Organization (WTO), a government official told ET. “We are examining from a legal perspective if countries are free to use domestic laws to raise taxes to secure their local industry and whether this is WTO compatible,”
The US’ threat of trade wars with countries to reduce its trade deficit has made India cautious as it anticipates a similar raise in duties on products it exports to Washington. “When a country (US) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” US President Donald Trump tweeted last week.
India will study if such a step is in accordance with norms of the World Trade Organization (WTO), a government official told ET. “We are examining from a legal perspective if countries are free to use domestic laws to raise taxes to secure their local industry and whether this is WTO compatible,”
No comments:
Post a Comment