Despite India seeking consultation in the WTO on the imposition of 25 percent import duty on steel and aluminum products by the US, there is little possibility of India filing a dispute against the US on this issue, as both the parties are currently in talks to reach a mutually beneficial trade agreement. The consultation on imposition of safeguard duty on steel and aluminum is the first issue on which India and the US are at loggerheads at the WTO. Earlier, the Joe Biden administration had decided to withdraw all the 7 pending cases filed in this multilateral body.
A government official, on the condition of anonymity, said, ‘There is a provision in the agreement itself that if one member feels that the protective measures taken by the other member are unreasonable, then it can ask the member to take consultation steps within 30 days. This is a very procedural issue. We have sought advice. This is not an exaggerated step, but the right to retaliate after consultation is reserved. India has argued that the US has linked these measures to the country’s security, but it is a protectionist move.
In its submission to the WTO, India said, ‘The US failed to inform the WTO Safeguards Committee under Article 12.1(c) of the Agreement on Safeguards (AOS) on its decision to impose safeguard measures.’ It further said, ‘India expects an early response from the US on this request and a mutually convenient date and venue for the above consultations.’
However, the official said India is unlikely to join China and other countries in pulling in the WTO on the retaliatory duty imposed by the US (which is now suspended) or the 10 per cent baseline duty currently in effect. On April 4, China has requested consultation on additional country-specific duties imposed by the US on imports from China.
“Ultimately it will be a political decision,” the official said. America’s move is a blow to the global trade framework. But can the issues over which there has been dispute for years be resolved only through that means? We are talking with the US to find a solution through a bilateral trade agreement.
The Appellate Tribunal in the WTO is currently inactive because the US has been blocking the issue of appointment of judges in the organization. This is effectively creating a barrier to final adjudication on trade disputes between member states.
First Published – April 13, 2025 | 10:17 PM IST
