Latest news with #AgreementonSafeguards
Time of India
2 days ago
- Business
- Time of India
US to WTO: Auto duty levied on national security grounds
The US has rejected India's claim that American tariffs on auto and auto parts qualify as safeguard measures under the WTO (World Trade Organisation) rules, and asserted that the duties are imposed on national security grounds. It has added that, on these grounds, India has no basis to propose retaliatory tariffs against these duties. India has said it is reserving the right to impose retaliatory duties on US tariffs (25 per cent) on automobiles and auto parts, stating that the levies are safeguard measures that are harming its domestic industry. In a reply to this, the US has informed the WTO that US President Donald Trump imposed these tariffs to adjust imports of these articles as they threaten to impair the national security of America. "These actions are... not safeguard measures. Accordingly, there is no basis for India's proposal to suspend concessions or other obligations under... the Agreement on Safeguards with respect to these measures," a WTO communication, dated July 17, said. It was circulated at the request of the delegation of the US. The US also said that India has not complied with the obligations under the WTO's Agreement on Safeguards. "The United States will not discuss the Section 232 tariffs under the Agreement as we do not view the tariffs as a safeguard measure," it added. A similar communication was also circulated to reject India's claim that American tariffs on steel and aluminium are safeguard measures under the WTO rules . The proposed suspension of concessions, which India has notified, could take the form of increased tariffs on selected US products. While India has not disclosed those items yet, in a similar move in 2019, it had imposed retaliatory tariffs on 28 US products, ranging from almonds and apples to chemicals. Earlier this month, India proposed imposing retaliatory duties against the US over American tariffs on imports of the country's auto parts in the name of safeguard measures. The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US. On July 10, India revised its proposal to impose retaliatory duties against the US over American tariffs on steel and aluminium in view of the further hike in duty by the Trump administration. agencies.
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Business Standard
3 days ago
- Automotive
- Business Standard
US rejects India's WTO claim on auto tariffs, cites security grounds
The United States has insisted that the Trump administration's tariffs on auto and auto parts were enacted on national security grounds and are not subject to retaliatory action. The comments come in response to India's claim that its automobile-related tariffs fall under 'safeguard measures' as defined by the World Trade Organisation (WTO). The communication was made in response to India's WTO notification signalling its intent to impose retaliatory duties on select US goods. India has claimed that the 25 per cent tariffs imposed by the Trump administration on automobile imports meet the definition of safeguards under WTO rules—temporary protections allowed to shield domestic industries from import surges. US says safeguard rules don't apply In a formal communication dated July 17, the US reiterated its stance that the 25 per cent tariffs on autos and auto parts, imposed under Section 232 of the Trade Expansion Act, are rooted in domestic security concerns rather than protectionist motives. Concluding that the measure, therefore, does not fall within the scope of the WTO's Agreement on Safeguards. 'These actions are… not safeguard measures,' the US said in the submission. 'Accordingly, there is no basis for India's proposal to suspend concessions or other obligations under the Agreement on Safeguards with respect to these measures.' The US, however, has said it will not engage in discussions on the matter under the Safeguards Agreement framework and further accused New Delhi of failing to meet procedural obligations under that agreement, including consultation requirements. Washington also accused India of failing to fulfil required procedural steps under the agreement, including prior consultations. It said it would not entertain discussions on the issue under the safeguards framework. India calls move is procedural, WTO-compliant Indian officials dismissed the criticism, stating that the filing was procedural and consistent with existing WTO rules. While New Delhi has not specified which US imports might face higher duties, the notice is seen as strategic signalling amid ongoing bilateral trade negotiations. 'This doesn't impact our current negotiations,' said an Indian official, referring to the fifth round of US-India trade talks underway in Washington. India challenges steel, aluminium tariff This is not India's first attempt to challenge Section 232 tariffs. Earlier this month, it revised a similar notification in response to the US raising steel and aluminium duties to 50 per cent. In 2019, India imposed retaliatory tariffs on 28 US goods, including almonds, apples, and chemicals, after earlier rounds of Section 232 duties. While the WTO allows retaliatory actions in response to safeguard measures, the distinction becomes murkier when tariffs are imposed on national security grounds — a justification that has become increasingly common in global trade disputes. Legal experts say the WTO has yet to clearly define the boundaries of such claims, leaving countries to interpret the rules through their own lenses. Trump tariffs and policies Trade relations with the US have entered into chaos since Donald Trump returned to office and began imposing tariffs on a long list of trading partners. In April, the White House introduced a universal 10 per cent baseline tariff on most imports, with 'reciprocal' tariffs of up to 70 per cent targeting specific countries. Trump then imposed a 90-day pause, set to lapse on July 9, as markets started to crash. While some countries were granted extensions until August 1 to conclude trade deals, India has yet to reach an agreement. Negotiations remain ongoing, despite earlier expectations that New Delhi would be among the first to finalise a bilateral deal under Trump's renewed trade agenda.
Scroll.in
11-07-2025
- Business
- Scroll.in
India proposes to double retaliatory tariffs on US over aluminium, steel duties
India has proposed to double the retaliatory tariffs it plans to impose on the United States under World Trade Organization norms in response to Washington hiking import duties on aluminium and steel, reported PTI on Friday. In a communication circulated among members of the organisation on Wednesday, India reportedly said that the reciprocal tariffs would apply to $7.6 billion worth of American goods and lead to a duty collection worth $3.82 billion. On May 9, India had notified the World Trade Organization that it may impose retaliatory tariffs on the US after Washington increased the import duties on aluminium and steel to 25%. The previously proposed retaliatory measures would have led to a duty collection of $1.9 billion. US President Donald Trump on June 3 announced that his administration will double the tariffs on steel to 50%. In the communication shared by the World Trade Organization, India said that it 'reserves its rights to adjust the products and tariff rates', reported PTI. 'This request is made in response to the increase in tariff rate by the US from 25% ad valorem to 50%,' it added. The revision came even as India and the United States are in the middle of negotiating a bilateral trade deal. The Trump administration had first imposed higher tariffs on aluminium and steel imports in 2018. This was modified in February to impose duties of 25% on imports of the two metals. The measures took effect in March. Washington also removed country-specific and product-specific exemptions that several countries had managed to negotiate. While Washington has claimed that the increased tariffs had been taken in the interest of national security and were not safeguard measures, New Delhi argued that the actions were safeguard measures. 'The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,' The Hindu had quoted India as having communicated to the international organisation in May. 'India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards.'
Mint
04-07-2025
- Automotive
- Mint
India warns of retaliatory tariffs against US over auto parts safeguard duties
New Delhi: India has formally notified the World Trade Organization (WTO) of its plan to suspend trade concessions on certain US-origin products in response to Washington's safeguard tariffs on Indian automobile parts, escalating trade tensions just days ahead of the anticipated announcement of a bilateral trade deal. In a notification dated 3 July to the WTO's Council for Trade in Goods, and published on Friday, India invoked Article 12.5 of the Agreement on Safeguards, stating its intention to impose retaliatory duties on select US products. The move follows the United States' decision to extend safeguard tariffs—amounting to a 25% ad valorem increase—on imports of passenger vehicles, light trucks, and certain automobile components from India, effective 3 May. 'The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US,' India's WTO communication stated, noting that these retaliatory duties would match the impact of the US safeguard action. The estimated trade affected by the US action is valued at $2.9 billion, with India seeking to reciprocally recover $723.75 million annually through its proposed tariff measures. Article 12.5 of the WTO Agreement on Safeguards allows a member country to notify its intention to suspend trade concessions if another member imposes safeguard measures without proper consultation. A senior government official, on the condition of anonymity, said that India's action was necessary to assert its WTO rights and prevent the normalisation of unilateral safeguard measures. 'This sends a clear message that India will not allow unfair trade actions to go unanswered, particularly when due process under the WTO framework is bypassed,' the official said. Earlier, Mint reported on 11 June that Washington had turned down India's notice for WTO consultations on the US's 25% tariff on auto components, asserting that the auto duties were imposed on national security grounds and therefore are not subject to multilateral trade rules, as per a WTO paper. According to the WTO document, India maintained that the US measures, which were imposed without prior notification to the WTO or the mandatory consultations under Article 12.3 of the Safeguards Agreement, are inconsistent with the global trade rules enshrined in the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO's safeguard provisions. Article 12.3 of the WTO Safeguards Agreement requires a country planning safeguard measures to consult affected members in advance, providing them an opportunity to discuss the proposed action and seek clarification. While India has not yet specified the exact products or tariff rates, it has reserved the right to implement the retaliatory duties 30 days after the date of notification—effectively from early August. The government also retained the option to revise the product list and duty structure as needed, signalling flexibility in its retaliatory strategy, as per India's WTO notice. The timing of India's notification is significant. It comes amid heightened expectations of a breakthrough in the ongoing India-US Bilateral Trade Agreement (BTA) negotiations, with both sides reportedly aiming for a first-phase announcement before 9 July. The move could be seen as an attempt by India to build negotiating leverage, especially as it pushes for the removal of US safeguard duties as part of the final deal contours. Trade analysts say that India's WTO notification is a legal and strategic step, signaling its readiness to retaliate against the US safeguard duties on automobiles and parts.'By invoking Article 8.2 of the Safeguards Agreement, India is asserting its rights under international trade rules. The proposed retaliation—tariff hikes on US goods worth over $700 million—is proportionate to the injury caused,' said Ajay Srivastava, co-founder of the Global Trade Research Initiative, a trade research think tank. 'However, whether India will follow through remains uncertain. In a similar case involving US steel tariffs, India held back. Given the sensitive timing of the India-US trade deal and broader geopolitical considerations, this may be more of a warning shot than a guaranteed action,' said Srivastava.
Scroll.in
04-07-2025
- Business
- Scroll.in
India proposes retaliatory duties against United States over auto tariffs at WTO
New Delhi on Friday proposed to impose retaliatory tariffs against the United States under the norms of the World Trade Organization over Washington's so-called safeguard duties on automobile imports from India, PTI reported. 'The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the United States,' said a WTO notification that was circulated at India's request. New Delhi notified the international organisation's Council for Trade in Goods of its proposed suspension of concessions and other obligations under WTO provisions, the news agency reported. On March 26, Washington had decided to levy a 25% tariff, in proportion to the estimated value of the goods, on imports of passenger vehicles, light trucks and select automobile parts from India. The duties were to take effect on May 3, The Indian Express reported. New Delhi has argued that the measures by Washington were not consistent with the 1994 General Agreement on Trade and Tariff and the WTO agreement on safeguards, PTI reported. India also said that it reserved 'the right to suspend' equivalent concessions as the consultations it had sought have not taken place, according to The Indian Express. The duties could be imposed after 30 days, NDTV Profit reported. The American measures could hurt $2.8 billion worth of Indian exports to the US annually, on which the duty collection would be $723 million, according to PTI. 'Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,' PTI quoted New Delhi's notification as having said. This came at a time when India and the US are negotiating a trade deal. The agreement is close to being finalised and will be announced soon, the White House had said on Monday. The statement came days before the 90-day suspension of tariffs announced by US President Donald Trump is set to end on July 9. In June, the US rejected India's May 9 notice to the World Trade Organization proposing retaliatory tariffs after Washington increased the import duties on aluminium and steel to 25%. The US argued that it had imposed the tariffs on the grounds of national security and claimed that there were procedural errors in India's case. Washington also asserted that the tariffs were not safeguard measures. However, New Delhi argued that the actions were safeguard measures. India said that it had the right to impose retaliatory tariffs as the US had not held consultations, as are mandatory under the Agreement on Safeguards.
