MIP on steel to curb cheap inbound shipments: Nirmala Sitharaman
The Dollar Business Bureau
The government has imposed minimum import price (MIP) on certain steel products with a view to controlling cheap inbound shipments and not to help the industry get a “permanent cover”, said Commerce and Industry Minister Nirmala Sitharaman.
Sitharaman was referring to the MIP imposed on 173 steel products, ranging between $341 and $752 per tonne in February 2016.
“Our intention is not to give a permanent cover but to extend little help because it was so that the quantum of cheap steel which was coming into the country had to be stopped and where the surge was clearly established, we took this step. They were all for a short duration,” elaborated Sitharaman.
The government later reduced the MIP to cover only 66 items which have been further narrowed down to only 19 items at present.
As per experts, MIP does not comply with global norms which can be an issue for India’s trading partners who might raise the concern in the World Trade Organisation (WTO).
It should be noted that Japan disputed certain measures taken by New Delhi on imports of iron and steel products with the WTO last month. The matter has been taken by the trade organisation, according to which the request for consultations is the first step to be followed in a dispute of this nature.
As per the trade body, consultation helps the parties reach a satisfactory solution, thus eliminating the need of directly heading for litigation.