EEPC India seeks to include steel products in BTA negotiations with US, calls for tariff status quo with EU

New Delhi: EEPC India, the apex engineering export promotion body, has asked the government to include various steel and aluminum products manufactured especially by MSMEs in the ongoing negotiations with the United States for a Bilateral Trade Agreement (BTA).

EEPC India also suggested maintaining the status quo in terms of quotas and out-of-quota tariffs while negotiating a free trade agreement (FTA) with the European Union (EU).

Raising the concerns of the export community to the FTA negotiating team, Pankaj Chadha, President, EEPC India, said the implementation of the 50 per cent tariff under Section 232 has had a significant impact on engineering exports to the US market, necessitating the inclusion of specific products in the BTA negotiations.
“The imposition of 50% tariffs by the United States increases the tariff gap with our competitors to an average of 30%. This has a definite impact on our position in the American market. A special support program that can absorb at least 15% of this gap would help us consolidate our position,” he suggested.

Furthermore, Chadha pointed out that the new EU proposal to reduce quotas and increase out-of-quota customs duties to 50% is worrying.

He stressed: “The existing quota is already a challenge for exporters because our volumes are much higher. The EU has also kept these products out of the scope of its trade deal negotiations with India. In this case, our suggestion is to maintain the status quo in terms of quota and out-of-quota customs duties. (TRQ), EEPC India Chairman has sought exemption from tariff quota for long stainless steel products (categories 14, 15 and 22), considering their dominance by MSMEs and strategic importance. For other product categories, the Engineering Export Promotion Council suggested increasing quota volumes.

“One could ensure that out-of-quota customs duties do not exceed 25%, and that these duties are phased out over five to six years, especially given the ongoing FTA negotiations with the EU,” Chadha said.

He urged the India-EU FTA negotiating team to take up these issues with EU authorities to ensure better market access for Indian exporters in this important region.

EEPC India has given top priority to strengthening its position in traditional markets, including the US and EU.