India has approached the World Trade Organisation (WTO) seeking consultations under the dispute settlement system over the 286% duty imposed by the US on certain categories of steel pipes imported from India.

Under WTO rules this is a mandatory first step, where the two sides can seek to resolve the issues through mutual discussions. If a settlement cannot be reached in this manner within 60 days, the complainant can then move the WTO adjudication panel.

Last month the US Commerce Department had issued orders that circular welded carbon quality steel pipes of 16” and below diameter would attract a countervailing duty after an inquiry ruled that these products were receiving a 286% subsidy from the Indian government. Companies have to deposit the amount with immediate effect, though a final ruling will only be passed in August.

Last year India exported about $64.5 million worth of steel pipes to the US. Exports in the non-alloy or carbon steel category have risen 26 per cent y-o-y to 3.36 million tonnes for the April-February 2012 period.