In retaliation for Britain's decision to place limits on steel imports, India has proposed extra customs tariffs of 15% on the entry of 22 products from the UK, including whisky, cheese, and diesel engine parts.
India stated in a submission to the World Trade Organization (WTO) that it is anticipated that the safeguard measures implemented by the UK on steel products have caused a decrease in exports
of 2,19,000 tonnes, with a resulting loss of duty revenue of USD 247.7 million.Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the UK, it said.
"India hereby notifies the (WTO's) Council for Trade in Goods of its decision to suspend concessions or other obligations under the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards that are substantially equivalent to the amount of trade affected by the measures of the UK," it added.
The additional goods include semi-diesel engine components, unwrought gold, turbo jets, processed cheese, scotch, blended whiskey, gin, animal feed, liquified propane, some essential oils, beauty items, cosmetics, and toiletries, as well as unsorted diamonds, silver, and platinum.
It added, "India wishes to explain that suspension of concessions will be comparable to the amount of trade affected by the UK's restrictions. The suspension of concessions and other obligations will continue to apply until the UK's safeguard measures are repealed.
On September 1, India proposed that if there is no agreement on compensation in a case concerning the imposition of restrictions by Britain on steel products,
India will impose retaliatory customs duties in accordance with WTO standards on approximately USD 250 million worth of goods imported from the UK. Further, India and the UK are negotiating a free trade agreement, and discussions should be finished soon.
From USD 13.2 billion in 2020–21 to USD 17.5 billion in 2021–22, the bilateral trade has grown. In 2021–22, India's exports totaled USD 10.5 billion while its imports totaled USD 7 billion.