RoDTEP Scheme Backlash: European Union and USA impose CVDs on Indian Products

India’s RoDTEP Duty Remission Scheme has backfired, causing EU and USA to impose CVDs on these Indian Products.
RoDTEP Scheme Backlash - European Union and USA impose CVDs Indian Products - TAXSCAN

In a retaliatory move against India’s Remission of Duties and Taxes on Export Products (RoDTEP) scheme introduced in January 2021, the United States and the European Union have now implemented countervailing duties (CVDs) on four Indian products.

The affected products, which underwent countervailing investigations resulting in the imposition of CVDs, include paper file folders, common alloy aluminum sheet, and forged steel fluid end blocks by the United States. Additionally, certain graphite electrode systems faced CVDs imposed by the European Commission (EC), as disclosed by Minister of State for Commerce and Industry, Anupriya Patel, during her statement to Lok Sabha on Wednesday.

Ms. Patel highlighted that both the Indian government and the impacted exporters vigorously refuted the subsidy allegations related to various government programs and schemes at both the Central and State levels. These responses were presented in written and oral formats during the investigation processes.

When questioned about the possibility of India pursuing a formal dispute with the World Trade Organization (WTO) if bilateral resolution efforts prove unsuccessful, Ms. Patel stated, “Any party may approach the WTO Dispute Settlement mechanism if a WTO member adopts any measures inconsistent with the agreements under the WTO.”

This development signifies a looming trade dispute, with potential implications for international commerce, as the involved parties navigate the complexities of trade agreements and seek resolutions through diplomatic channels or international trade forums like the WTO.

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