PM Modi, Dutch counterpart Mark Rutte to find ways to protect Tata Steel exports

NEW DELHI: The issue of safeguarding steel exports to the US by Tata Steel’s unit in the Netherlands amid Washington’s decision to impose tariff on this sector in Europe will top the agenda when Dutch Prime Minister Mark Rutte meets his Indian counterpart Narendra Modi here on May 24 as the two leaders try to devise a strategy to protect their mutual interests.

The tariff on steel and aluminum is fast turning out to be a contentious issue for the US and European Union (EU), besides the Trump administration’s recent decision to pull out of the Iranian nuclear deal.

India and the EU, as part of a retaliatory measure, have given the World Trade Organization a list of US products that might incur higher tariff.


ET has learnt that a crucial item on the agenda for discussion between Modi and Rutte on May 24 would be the imposition of tariff on steel exported by Europe as the issue impacts both countries.

Some of the other subjects that might come up for discussions are the implications of US’ pullout from the Iranian nuclear deal, US-EU ties, and post-Brexit EU. Rutte will separately interact with the Tata Group chairman N Chandrasekaran.

"Tata Steel values its investments in Holland and is committed to building a sustainable future in the European Steel industry," a senior Tata Steel spokesperson told ET.

Earlier in March, the Dutch wing of Tata Steel had urged the US to exempt it from the new import tariffs on steel and aluminium as its products are vital to the American economy. “We don’t dump our steel on the American market, our products are no threat to American national security and many American companies depend on our products,” Tata Steel Netherlands director Theo Henrar had said in a statement.

Tata Steel’s Netherlands unit has major footprint in the US. From its factories in IJmuiden, near Amsterdam, Tata supplies high-quality steel to companies such as machine-builder Caterpillar and battery-maker Duracell. Tata also supplies products to carmakers and the packaging and bottling industry in the US. The Tata Group is one of the biggest foreign investors in the Netherlands.

Rutte’s visit — his second in four years — will essentially be a business mission that will focus on agriculture, the clean Ganga initiative, startups, smart cities, port infrastructure, clean energy besides space and science & technology. Nearly 231Dutch business delegates, representing 130 companies, have registered and paid to join Rutte’s Trade Mission to India. The delegates represent various sectors, including agri-food, horticulture, logistics, education, smart cities, water, health and life sciences, IT and maritime.

The EU said Trump’s steel tariffs could cost $1.5 billion and aluminium tariffs a further $100 million, and listed rice, cranberries, bourbon, corn, peanut butter and steel products among the US goods that it could target for retaliation. India said it was facing additional US tariffs of $31million on aluminium and $134 million on steel, and listed US exports of soya oil, palmolein and cashew nuts among its potential targets for retaliatory tariffs. Rutte is being accompanied by ministers for agriculture, foreign trade and international cooperation, infrastructure and water management, and medical care.

One of Rutte’s key focus in Delhi would be the Clean Ganga mission as Netherlands has pioneering technology to clean rivers. The Netherlands, home to the world’s two biggest ports, is also keen to expand its footprints in the Indian port sector. Rotterdam and Amsterdam ports are gateway for Indian products to Europe, Eurasia and vice-versa. The cumulative investment from Netherlands to India was $23 billion between 2000 and December 2017 and the country is home to around 2,35,000 Indians, the highest in Europe’s mainland.