Investigation Background
India’s Directorate General of Trade Remedies (DGTR) has launched a safeguard investigation into imports of non-alloy and alloy flat steel products, as per the 19 December notice from the Ministry of Commerce. The investigation covers products such as hot rolled coils, sheets, plates, cold rolled coils, and metallic-coated steel products, including galvanized, aluminized, and color-coated steel sheets. The HS codes under consideration range from 7208 to 7226. Notably, certain products like cold-rolled electrical steels and stainless steel are excluded from the investigation.
Reasons and Scope of Investigation
The investigation was initiated following an application by the Indian Steel Association (ISA) on behalf of major domestic producers, including ArcelorMittal Nippon Steel India, JSW Steel, and others. The ISA highlighted a “sudden, sharp, and significant increase” in imports during the period under review, attributing this to unforeseen developments and obligations under the General Agreement on Tariffs and Trade (GATT) 1994. The DGTR will examine data from April 2021 to September 2024 to determine whether the surge in imports has caused or threatens to cause serious injury to the domestic industry.
Potential Implications
The DGTR noted there is sufficient prima facie evidence to justify the investigation, which aims to assess whether protective measures, such as safeguard duties, are necessary. This could lead to increased tariffs on the identified products to curb imports and support local steel producers. Exporters and stakeholders should monitor the investigation closely and prepare for potential changes in trade dynamics.
