Trade Cases
India Appeals Section 232 Tariffs to WTO
Written by Sandy Williams
May 24, 2018
India is disputing the legality of Section 232 tariffs and quota arrangements by the United States, claiming violations of the GATT and Safeguards Agreement.
India filed an official request with the World Trade Organization for dispute settlement consultations with the United States. India joins several other nations which dismiss the claim that imports of aluminum and steel are threatening U.S. national security. India, China, Russia, Japan, Turkey and the EU have labeled the tariffs safeguard measures under WTO rules, entitling them to a combined $3.5 billion in annual compensation. The nations have informed the WTO they may increase duties on U.S. goods in retaliation under WTO safeguard rules to balance the effects of the U.S tariffs.
India asserts that quota deals arranged by the U.S with Argentina, Brazil, South Korea and Australia are voluntary export restraints prohibited by WTO rules.
Article 11.1(b) of the Agreement on Safeguards and Article XI:1 of the General Agreement on Tariffs and Trade states that “a Member shall not seek, take, or maintain any voluntary export restraints, orderly marketing arrangements or any other similar measures on the export or the import side.” GATT Article XI:1 states that WTO members may not maintain trade restrictions other than duties, taxes or other charges.
India also asserts that the U.S. is not applying tariffs and quotas uniformly to nations that export steel and aluminum to the U.S., thereby discriminating against products originating from India.
The WTO must respond to India’s May 18 consultation request within 10 days, and enter into consultations within 30 days. If after 60 days the U.S. and India have not resolved the issues, India can request the establishment of a dispute settlement panel.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Price: Should billions in Section 232 revenue go to foreign manufacturers or to the American people?
Do we want the benefits of the Section 232 tariffs to flow to the bottom lines of foreign steel and aluminum producers or to the US government and, ultimately, domestic manufacturers and their workers? In our view, the answer is simple. Section 232 exceptions do nothing more than lead to underserved profits for foreign manufacturers who are harming the US industrial base. That revenue could be used to pursue the Trump administration’s other policy priorities - such as deficit reduction or expanded tax cuts.
Mills allege ‘critical circumstances’ in CORE trade case vs. South Africa, UAE
"Recent activity in the marketplace strongly indicates that these imports are being rushed into the United States in an effort to avoid the imposition of antidumping duties," petitioners said.
European Commission eyes retaliation vs. Trump steel tariffs: Report
The European Commission is looking into making current quotas on steel imports stricter as a countermeasure to President Trump’s recently announced tariffs on steel and aluminum imports to the US, according to an article in Reuters.
Trump could levy tariffs on auto imports in April: Report
President Donald Trump said last week that he could place tariffs on auto imports, according to an article in Politico.
Section 232 tariffs are headed downstream
The Trump administration has revealed the list of derivative steel products being added to the Section 232 tariff list.