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India and US reach agreement on joint monitoring of steel and aluminium exports

India and the US announce a landmark agreement allowing duty-free exports of steel and aluminium, resolving past trade disputes.

India and US reach agreement on joint monitoring of steel and aluminium exports

India and the United States have successfully negotiated terms for the collaborative monitoring of India's steel and aluminium exports to the US, thereby eliminating the imposition of additional duties. This breakthrough follows the resolution of bilateral trade disputes at the World Trade Organization, culminating in Prime Minister Narendra Modi's state visit to Washington in June 2023.

The Department of Commerce in India has recently finalized the terms of reference for the joint monitoring mechanism. Under these terms, certain steel and aluminium products can now be exported to the US without incurring extra duties. The United States has agreed to admit 336,000 tonnes of steel and aluminium from India, with the exemption of additional duties that were originally imposed under a national security law during the Trump administration in 2018. It is noteworthy that similar duties were levied on several other countries, including China, Russia, Norway, Türkiye, and Switzerland.

To ensure smooth implementation, an inter-ministerial mechanism has been established within the Indian government to oversee the exports of steel and aluminium entering the US without incurring additional duties. In the event of any bottlenecks or challenges faced by Indian exporters, these issues will be promptly communicated to the Commerce Ministry and addressed during meetings of the joint monitoring mechanism with the United States. This collaborative effort aims to foster stronger economic ties and facilitate more streamlined trade between the two nations.

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