Council for Trade in Goods - Committee on Safeguards - Immediate notification under article 12.5 of the Agreement on Safeguards to the Council for Trade in Goods of proposed suspension of concessions and other obligations referred to in paragraph 2 of article 8 of the Agreement on Safeguards - India

IMMEDIATE NOTIFICATION UNDER ARTICLE 12.5 OF THE AGREEMENT ON
SAFEGUARDS TO THE COUNCIL FOR TRADE IN GOODS OF PROPOSED
SUSPENSION OF CONCESSIONS AND OTHER OBLIGATIONS
REFERRED TO IN PARAGRAPH 2 OF ARTICLE 8
OF THE AGREEMENT ON SAFEGUARDS

INDIA

The following communication, dated and received on 9 May 2025, is being circulated at the request of the delegation of India.

 

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India hereby notifies the Council for Trade in Goods of its proposed suspension of concessions and other obligations referred to in Article 8.2 of the Agreement on Safeguards (AoS) under Article 12.5, AoS. This notification is made in connection with safeguard measures extended by the United States of America ("United States") on imports of aluminium, steel and derivative articles, vide Presidential Proclamation Nos. 10895 and 10896 dated 10 February 2025 with the effective date of 12 March 2025.

This notification is made in accordance with the format for notification (_G/SG/1/Rev.1 dated 05 November 2009).

1. Which Member is proposing suspension of concessions and other obligations referred to in Article 8.2:

India.

2. Specify the measure, the product subject to the measure, the WTO document that notified the safeguard measure, and the Member imposing the measure in relation to which the Member is proposing suspension of concessions and other obligations referred to in Article 8.2:

The safeguard measures were imposed by the United States on imports of aluminium and steel articles, vide Presidential Proclamation Nos. 9704 and 9705 dated 08 March 2018 respectively, and extended vide Presidential Proclamation No. 9980 dated 24 January 2020, and, now, through Presidential Proclamation Nos. 10895 and 10896 dated 10 February 2025 with the effective date of 12 March 2025. The products subject to the measures are aluminium and steel articles, and their derivative articles, as specified by the United States in the measures.[1]

The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures. India maintains that the measures taken by the United States are not consistent with the GATT 1994 and AoS. As consultations provided for under Article 12.3, AoS have not taken place, India reserves the right to suspend concessions or other obligations under Article 8, AoS that are substantially equivalent to the adverse effects of the measure to India’s trade.

3. Describe the proposed suspension of concessions and other obligations referred to in Article 8.2 and the proposed date from which it will come into effect

The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States. Without prejudice to the effective exercise of its right to suspend substantially equivalent obligations referred to in Article 8.2, AoS, India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification.

The safeguard measures would affect US$ 7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be US$ 1.91 billion. Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States.

To ensure the effective exercise of its right to suspend substantially equivalent concessions or other obligations referred to in Article 8.2, India reserves its right to adjust the products as well as the tariff rates. India reserves the right to withdraw, modify, supplement or replace this notification, and/or make a further notification or notifications as and when required, to ensure that the objective under Article 8, AoS is met at all times.

India will inform both the Council for Trade in Goods and Committee on Safeguards on the next appropriate steps.

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[1] The identification of the measures in this notification is without prejudice to India's right to characterize the measure differently in further or other procedures to include any other connected or related measure.