Responsibility for applying steel, aluminum on the security field rather than safeguards: US to India WTO India

A logo is displayed in the World Trade Organization (WTO) building. |Photo source: Reuters

The United States has notified the global trade agency WTO that the decision to impose tariffs on steel and aluminum is based on national security sites and should not be considered a safeguard.

The United States shared the response with the World Trade Organization (WTO) after India negotiated with the U.S. WTO safeguards agreement requirements on April 11.

India said that although the U.S. describes the measures as security measures, they are essentially safeguards.

It also noted that the United States failed to notify the WTO safeguards Commission in order to take the decision to take safeguards under the provisions of the Safeguards Agreement (AOS).

“The United States points out that the premise of consultations under Article 12.3 of the Safeguards Agreement is that tariffs are safeguards. … The President imposed tariffs on steel and aluminum under Article 232, and according to the standard, according to the provisions of the steel and aluminum, is necessary to adjust the tariffs on steel and aluminum in accordance with the provisions of the steel and aluminum to the trade agency.

The United States also stated that Article 232 is a national security regulation, and tariffs have been retained under the security exception allowed by the 1994 General Tariffs and Trade Agreement (GATT).

It added that the tariffs were not levied under the Trade Act of 1974, which is a law that the United States takes safeguards.

The United States added: “The United States has not maintained these actions under safeguards/emergency action provisions…these actions are not safeguards and therefore there is no basis for consultation under safeguard agreements regarding these measures.”

It added: “Therefore, the Indian consultation request is not based on the agreement of safeguards.

On March 8, 2018, the United States issued safeguards for certain steel and aluminum items, imposing Valorem tariffs of 25% and 10% respectively. It will take effect on March 23, 2018.

The newsletter said that on February 10 this year, the United States revised its safeguards on the import of steel and aluminum items, which will take effect from March 12, 2025 and will last for an unlimited period.