EEPC calls for inclusion of steel, aluminium in trade talks with U.S.

The Hindu Bureau

Steel and aluminium products, especially those made by MSME units, should be included in the ongoing negotiations with the U.S. for a bilateral trade agreement, said EEPC India.

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

Pankaj Chadha, chairman of EEPC India, said the 50% tariff under Section 232 by the U.S. has significantly impacted engineering exports to the US market, necessitating the inclusion of specified products in the BTA negotiation.

“The 50% tariff imposition by the U.S. increases the tariff differential with our competitors to an average of 30%. A special support package that can absorb at least 15% of this differential would help us to secure our position,” he said.

Further, the new EU proposal on reducing quotas and increasing out-of-quota tariffs to 50% is a cause of concern. The EU has kept these products out of the purview of its trade agreement negotiations with India, he said.

“It may be ensured that out-of-quota tariffs do not exceed 25%, and the same is gradually phased out over five to six years, especially considering the ongoing FTA negotiations with the EU,” he said.

Eom/msp