BRUSSELS: The European Commission said it had received an anti-dumping complaint by European steel producers' group Eurofer against imports of stainless steel wires from India.
The complaint alleges that producers of certain types of steel wire have benefited from a number of subsidies granted by India, and are selling their wire in the EU at below-market prices hurting European competitors.
The Commission said late on Friday it was opening an investigation into whether or not the steel wire is being unfairly subsidised and has invited the Indian government for consultations on the matter.
India and the European Union have been negotiating a free trade agreement since 2007, but talks stalled this year over differences in duties on cars and market access for software and service companies.
The EU is India's biggest trade partner and bought more than 40 billion euros ($49.26 billion) worth of Indian goods and services in 2010. But trade with India represented just 2.4 per cent of the EU's total.
India has also locked horns with the 27-country bloc recently over an EU law to make all airlines flying in and out of Europe pay for their carbon emissions.
India has said it won't comply with the law, but changes to the aircraft leases almost all of its airlines rely on may force the country's hand.