hanumadu wrote:Why is the world giving a free pass to Chinese steel? Why is India not imposing tariff against Chinese steel? Can you imagine the Chinese not being able to sell half of their steel production? Would be fun to watch.
WTO forbids that. When China was admitted to WTO, they agreed to tariffs. Those tariffs were exorbitant compared to what another manufacturer in another country pays. For eg. why was Tata steel still running shop in UK? The UK tariffs for steel are lower which made manufacturing and selling profitable. The profits have reduced and hence they are now shutting shop. Its easy to blame Chinese but the reality is the labour costs in UK are very high compared to elsewhere.
India could increase taxation if it chooses but it will be against the WTO treaties and we will be taken to a tribunal for doing so. I feel one way out of it may be to increase the VAT (GST) on imports.