India has proposed to impose retaliatory duties under the
WTO (World Trade Organisation) norms against the US over American tariffs on
steel and aluminium in the name of safeguard measures. A WTO communication said
the safeguard measures would affect $7.6 billion imports into the US of the
relevant products originating in India, on which the duty collection would be
$1.91 billion.
Accordingly, it said, India's proposed suspension of
concessions would result in an equivalent amount of duty collected from
products originating in America. Earlier in April, India had sought
consultations with the US under the WTO's safeguard agreement, following
American authorities' decision to impose these tariffs. The US informed the
global trade body that its decision to impose the tariffs was based on national
security grounds and should not be considered as safeguard measures.
On March 8, 2018, the US promulgated safeguard measures on
certain steel and aluminium articles by imposing 25 per cent and 10 per cent ad
valorem tariffs, respectively. It came into effect on March 23, 2018. It was
extended in January 2020. On February 10 this year, the US again revised the
safeguard measures on imports of steel and aluminium articles, effective from
March 12, 2025, and with an unlimited duration. Now, it has imposed 25 per cent
tariffs.
It stated ‘India hereby notifies the Council for Trade in
Goods of its proposed suspension of concessions and other obligations...This
notification is made in connection with safeguard measures extended by the
United States of America on imports of aluminium, steel and derivative
articles, vide Presidential Proclamation...dated 10 February 2025, with the
effective date of12 March 2025.’
It said the communication, dated and received on May 9,
2025, is being circulated at the request of the delegation of India. It added
that the measures have not been notified by the US to the WTO, but are, in
essence, safeguard measures. ‘India maintains that the measures taken by the US
are not consistent with the GATT (General Agreement on Trade and Tariff) 1994
and AoS (Agreement on safeguards),’ it said, adding that as consultations
provided for under a provision of the AoS have not taken place, India reserves
the right to suspend concessions or other obligations that are substantially
equivalent to the adverse effects of the measure to India's trade.
Source: Ace Equity
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