Should EEPC India Push for Steel Products in India-US Trade Talks?
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Synopsis
EEPC India's recent appeal to the government highlights the urgent need for including steel and aluminium products in the India-US trade talks. With tariffs impacting MSMEs, this could reshape India's export landscape significantly.
Key Takeaways
- EEPC India advocates for including steel and aluminium in trade talks.
- Current US tariffs impose a 50% burden on Indian exports.
- Support for MSMEs is critical for sustaining export growth.
- Negotiations with the EU must address tariff issues.
- Long-term planning for tariff reductions is essential.
New Delhi, Nov 10 (NationPress) The Engineering Export Promotion Council of India (EEPC India) has called on the government to advocate for the inclusion of various steel and aluminium products, particularly those manufactured by MSMEs, during the ongoing bilateral trade negotiations with the United States.
This leading engineering exports promotion organization has also requested the preservation of quota and out-of-quota tariff levels in the free trade agreement (FTA) discussions with the European Union (EU), as stated in an official announcement.
According to the engineering exports body, the US has levied a 50% tariff under Section 232, which has “significantly affected” engineering exports, underscoring the need to include certain products in the bilateral trade agreement (BTA) negotiations.
“The imposition of a 50% tariff by the US escalates the tariff differential with our competitors to an average of 30%. This undoubtedly affects our standing in the US market. A dedicated support package that can offset at least 15% of this differential would be beneficial in maintaining our market position,” stated Pankaj Chadha, Chairman of EEPC India.
Moreover, EEPC has expressed apprehension regarding an EU proposal to diminish quotas and elevate out-of-quota tariffs to 50%, deeming this action problematic due to its impact on exporters' volumes and the omission of specific products from FTA discussions.
Chadha emphasized that these issues should also be addressed in FTA negotiations and that tariffs should be gradually eliminated once the FTA is established.
EEPC has requested the exemption of stainless-steel long products (categories 14, 15, and 22) from the EU tariff-rate quotas, highlighting their significance in MSMEs and their strategic value.
For additional product categories, the Engineering Exports Promotion Council proposed an increase in quota volumes.
“It should be ensured that out-of-quota tariffs do not surpass 25% and are gradually phased out over a span of five to six years, especially in light of the ongoing FTA negotiations with the EU,” Chadha remarked.
Point of View
It's crucial to recognize the strategic importance of EEPC India's appeal. The inclusion of steel and aluminium products in trade negotiations is not just an economic necessity; it aligns with national interests and supports the growth of MSMEs. A balanced trade framework with the US and EU can significantly bolster India's engineering sector, ensuring competitiveness while fostering domestic growth.
NationPress
10/11/2025
Frequently Asked Questions
What is EEPC India?
EEPC India stands for the Engineering Export Promotion Council of India, which is a premier organization focused on promoting Indian engineering exports.
Why is the inclusion of steel products important?
Inclusion of steel products is vital for addressing the significant tariffs imposed by the US, which impacts India's competitiveness in the global market.
What are the current tariffs imposed by the US?
The US has imposed a 50% tariff under Section 232, which has greatly affected engineering exports from India.
What role do MSMEs play in this context?
MSMEs are crucial for India's economy, and the inclusion of their products in trade discussions can enhance their growth and international presence.
What is the EU's proposal regarding trade?
The EU has proposed reducing quotas and increasing out-of-quota tariffs to 50%, which could adversely affect exporters.
