After US and Mexico, trade uncertainty emerges from EU

India has approached the World Trade Organization (WTO) for consultations with the European Union (EU) as the bloc’s proposed tariffs and quotas on ferro-alloy imports deepen worries about global trade uncertainty when the two parties are negotiating a free-trade pact.India has a substantial trade interest in the products concerned and has invoked provisions of the Agreement on Safeguards to seek consultations with the EU, according to the WTO document reviewed by Mint.The EU issued a notification last month, proposing a safeguard duty after claiming serious injury or threat to its domestic ferro-alloy industry due to rising imports.The EU imported iron and steel products worth about $4.25 billion from India in 2024, according to the United Nations COMTRADE database. Ferro-alloys such as silico-manganese, ferro-manganese and ferro-silicon, which are essential inputs for steelmaking in Europe, accounted for about $381 million.While total Indian exports to the EU in the category may be small, the EU’s move increases uncertainty even as the two sides are engaged in talks for a free-trade pact.

India is already negotiating a trade deal with the US to avoid the 50% tariffs. Earlier this month, Mexico approved up to 50% tariffs on cars imported from countries, including India, that do not have a trade pact with it.“India has suggested that the consultations be held virtually between 16 and 19 December, while reserving its rights under WTO rules to take further action if the issue is not resolved,” the WTO document said.