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Japan has threatened India to take it to the World Trade Organisation (WTO) over restrictions that nearly halved Japanese steel exports to the South Asian nation over the past year, reported Reuters.
Japan, world’s second-biggest steel producer generally tries to solve its trade disputes with bilateral talks, making an unexpected action because of global trade uncertainties. After this, Reuters also added that the Japanese are also worried about the rougher and tumble climate for global trade being engendered by incoming U.S. President Donald Trump, and feels it must make a strong stand for open and fair international markets.
According to Reuters, India imposed duties of up to 20 percent on some hot-rolled flat steel products in September 2015, and set a floor price in February 2016 for steel product imports to deter countries such as China, Japan and South Korea from undercutting local mills.
Following this, Japan alarmed India, while saying that its actions are inconsistent with the WTO international trade rules. And India’s unfair international trade policies on steel caused a plunge in steel exports from Japan to India.
