WTO Trouble For US as India Files Complaint Over Aluminium and Steel Derivatives

WTO Trouble For US as India Files Complaint Over Aluminium and Steel Derivatives

According to reports, India is invoking the World Trade Organisation’s (WTO’s) safeguard agreement against American authorities over the Trump administration’s decision to increase import duties on derivatives of steel and aluminium products.

The move follows after a US presidential proclamation, which increased tariffs by 25% on steel derivatives and by 10% on aluminium derivatives. Aluminium derivatives include stranded wire, cables, plaited bands, as well as bumper stampings of aluminium used in the motors of vehicles.

India sees this measure as a safeguard measure within the provision of the 1994 General Agreement on Tariffs and Trade 1994, and the Agreement on Safeguards. “Accordingly, as an affected Member with significant export interest to the US for the products at issue, India requests consultations with the US… In accordance with …the Agreement on Safeguards, India seeks to exercise its right to consult on the specifics of the measures and its right to determine appropriate trade compensation with the US,” Delhi said on Tuesday.

The WTO said that India reserves the right to raise additional issues and make further factual and legal arguments, without prejudice to any other remedies provided for under the understanding on rules and procedures governing the settlement of disputes and the covered agreements during the course of consultations.

The consultations do not fall under the WTO’s dispute settlement system.