EEPC India urges inclusion of steel in US trade talks, seeks status quo with EU

Kolkata, Nov 10 (PTI) Engineering exports promotion body EEPC India has called for the inclusion of key steel and aluminium products, primarily from MSMEs, in the ongoing bilateral trade agreement (BTA) negotiations with the United States.

It also advocates maintenance of the current tariff structure in talks with the European Union.

The group has formally raised the exporting community's concerns with the government's FTA negotiating teams, according to a statement.

EEPC India Chairman Pankaj Chadha stated that the 50 per cent tariff imposed by the US under Section 232 has significantly hampered engineering exports, making it imperative to address this issue in the BTA talks.

"The 50 per cent tariff imposition by the US increases the tariff differential with our competitors to an average of 30 per cent. This definitely impacts our position in the US market," Chadha said.

He suggested a "special support package" to absorb at least 15 per cent of this differential to help secure India's market position.

Regarding the EU, Chadha expressed concern over the bloc's new proposal to reduce quotas and increase out-of-quota tariffs to 50 per cent.

"The existing quota already poses a challenge for the exporters as our volumes are much higher. Our suggestion is to maintain the status quo in terms of both quota and the out-of-quota tariffs," he noted.

He further emphasised that this issue should be brought under the purview of the India-EU Free Trade Agreement (FTA) negotiations, with tariffs being phased out gradually once the pact is implemented.

On the specific issue of the EU's Tariff Rate Quota (TRQ), the EEPC India chairman sought an exemption for stainless-steel long products, citing MSME dominance and strategic importance.

For other product categories, the body recommended increasing quota volumes and ensuring that out-of-quota tariffs do not exceed 25 per cent, with a phased elimination over five to six years. PTI BSM NN