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.
_______________
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.
__________
[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.