Seven Countries Criticise EU Safeguard Move On Steel Imports

Economic Times that European Union’s decision to initiate a safeguard investigation on imports of certain steel products is adding to the problem of growing protectionism worldwide. The EU while initiating the move on March 26, however failed to cite a “sharp and significant increase in the targeted products” and resultant “injury to domestic producers” to justify the launch of an investigation, these countries argued at a meeting in WTO last week. Korea, Turkey, Argentina, Egypt, Vietnam and Chile are the other countries that disapproved the EU’s move.

An official aware of the development said that “The EU has initiated an investigation to impose a safeguard duty on some of our products because they feel excessive imports from India are threatening their industry.”

A second official said the EU fears that a lot of steel would be diverted towards it after the US action on steel and aluminium exports from many countries. ‘

The EU has said its safeguard investigation was in the initial phase and it would be carried out in line with WTO requirements. If it goes ahead, it could have a serious bearing on India’s engineering exports, experts said.