Landmark trade deal: US agrees to provide broader market exposure for India's aluminium and steel products

On June 23, the Ministry of Commerce and Industry, Govt. of India, stated that the United States has agreed to grant wider market penetration to Indian-origin aluminium and steel products. According to the trade deal, the US Department of Commerce would approve 80 per cent of aluminium and 70 per cent of steel applications for goods manufactured in India. During Indian Prime Minister Narendra Modi's current tour to the United States, the decision was taken.

According to the Indian Ministry of Commerce and Industry, it would provide a solid push to increase India's aluminium and steel exports by almost 35 per cent.

Since June 14, 2018, the United States has restricted market access through the exclusion process outlined in Section 232 of the Trade Expansion Act of 1962. Additional 25 per cent and 10 per cent tariffs were imposed on steel and aluminium items, respectively. Meanwhile, India has promised to eliminate supplementary charges, such as retaliatory taxes on specific items. It stated that these products' current basic import duty, which applies to all imports, will be maintained.

While speaking about the development, Piyush Goyal, the Commerce and Industry Minister, Govt. of India, said, "It is a historic decision that has been taken under the leadership of Prime Minister Narendra Modi and President Joe Biden. During the last two years, India and the US have engaged in discussions to terminate these six outstanding disputes at the WTO."