(MENAFN- KNN India) New Delhi, Nov 10 (KNN) Engineering Export Promotion Council (EEPC) of India has urged the government to include select steel and aluminium products - largely manufactured by MSMEs - in the ongoing bilateral trade agreement (BTA) discussions with the United States, citing the adverse impact of high US tariffs on Indian engineering exports.

EEPC Chairman Pankaj Chadha said exports to the US have been hit by the 50 percent tariff under Section 232, widening the tariff gap with competing countries by an average of 30 percent.

He suggested a special support package to offset at least 15 percent of this gap to safeguard India's market presence.

Chadha also flagged concerns over the European Union's proposal to reduce import quotas and raise out-of-quota tariffs to 50 percent on certain steel categories.

Noting the challenges, he said,“The existing quota already poses a challenge for exporters as our volumes are much higher. The EU has also kept these products out of the purview of its trade agreement negotiations with India,” reported ET.

He recommended maintaining the current quota and tariff structure, bringing these products into the India–EU free trade agreement (FTA) framework, and phasing out tariffs once the pact is implemented.

For the EU's tariff rate quota regime, EEPC has sought exemption for stainless-steel long products, which are predominantly produced by MSMEs, and pushed for higher quota volumes for other items.

Out-of-quota duties, the council suggested, should be capped at 25 percent and phased out over five to six years amid ongoing FTA negotiations.

Reiterating the strategic importance of the US and EU markets, Chadha urged India's trade negotiators to raise these issues to ensure improved access and competitiveness for domestic exporters, particularly MSMEs, in key global destinations.

(KNN Bureau)

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