Communication from the United States In
Response to the United Kingdom's Notification Proposing to Suspend Concessions
Under
Article 8.2 of the Agreement on Safeguards
United States
The following communication,
dated and received on 10 June 2025, is being circulated at the
request of the delegation of the United States.
_______________
The
United States has received the United Kingdom's (UK) notification*
under Article 12.5 of the Agreement on
Safeguards regarding its proposed suspension of concessions or other
obligations under Article 8.2, with respect to the tariffs imposed on certain
derivative aluminum products (i.e., beer and empty aluminum cans), pursuant to
Section 232 of the Trade Expansion Act of 1962.
The
United States notes that, similar to its 29 April 2025 request for
consultations under Article 12.3 of the Agreement
on Safeguards, the premise for the UK's proposed suspension of
concessions or other obligations under Article 8.2 is that the tariffs are
safeguard measures for purposes of that Agreement. The President imposed the
tariffs on these derivative aluminum products pursuant to Section 232, under which
the President determined that tariffs are necessary to adjust imports of these
articles that threaten to impair the national security of the United States.
Section 232 is a national security statute, and the United States is
maintaining these actions pursuant to the essential security exception in
Article XXI of the GATT 1994.
The
United States did not take action pursuant to Section 201 of the Trade Act of
1974, which is the law under which the United States imposes safeguard
measures.[1] The United States
is not maintaining these actions pursuant to the safeguards / emergency action
provision in Article XIX of the GATT 1994 and the Agreement on Safeguards. These actions are, therefore, not
safeguard measures. Accordingly, there is no basis for the UK's proposal to
suspend concessions or other obligations under Article 8.2 of the Agreement on Safeguards with respect to
these measures.
Article
8.2 of the Agreement on Safeguards
states, in relevant part, that an exporting Member shall be free to suspend,
upon the expiration of 30 days from the day on which written notice of
suspension of concessions is received by the Council for Trade in Goods, "the
application of substantially equivalent concessions or other obligations under
GATT 1994, to the trade of the Member applying the safeguard measure."
However, the United States is not "applying [a] safeguard measure."
Thus, by its terms, Article 8.2 cannot accommodate the UK's proposal. Moreover,
Article 8.2 prefaces an exporting Member's ability to suspend such
concessions upon holding consultations under Article 12.3 with the Member
applying the safeguard measure. Although the UK previously requested such
consultations with the United States, the position of the United States is that
there is no basis under Article 12.3 to hold such consultations because there
is no safeguard measure at issue.[2]
The
United States will not discuss the Section 232 tariffs under the Agreement on
Safeguards as we do not view these tariffs as safeguard measures. Nonetheless,
we remain open to discuss this issue generally with the UK, including the joint
UK-US announcement of 8 May 2025, as it relates to these derivative aluminum
products.
__________
* _G/L/1575 – _G/SG/N/12/GBR/2
[1] See _G/SG/N/1/USA/1
(6 April 1995) and _G/SG/N/1/USA/1/Suppl.1
(20 July 2015).
[2] See Communication from the United States In
Response to the United Kingdom's Request For Consultations (28 March 2025).