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
United Kingdom
The
following communication, dated and received on 28 May 2025, is being circulated
at the request of the delegation of the United Kingdom.
_______________
Pursuant to
Article 12.5 of the Agreement on Safeguards, and in accordance with the agreed
format for notifications,[1] the United Kingdom
provides immediate notification to the Council for Trade in Goods of the
proposed suspension of concessions or other obligations referred to in
paragraph 2 of Article 8 of the Agreement on Safeguards.
Notwithstanding the reservation of rights in
this notification, the United Kingdom remains committed to reaching a positive
outcome through an ongoing dialogue with the United States.
1. Which Member is proposing
suspension of concessions and other obligations referred to in Article 8.2.
The United Kingdom.
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 United
States has introduced additional customs duties, at a rate of 25% ad valorem,
on certain automobiles from 3 April 2025 and certain automobile parts from 3 May 2025.[2] These measures apply with
respect to the United Kingdom from their respective dates of application for an
unlimited period.
Although the United States did not
notify these measures to the Committee on Safeguards under Article 12.1(c) of
the Agreement on Safeguards, the United Kingdom considers that the measures are
safeguard measures to which Article XIX of GATT 1994 and the Agreement on
Safeguards are applicable.
3. Describe the proposed suspension of concessions and other
obligations referred to in Article 8.2 of the Agreement on Safeguards, and the
proposed date from which it will come into effect.
The United
Kingdom hereby reserves the right to suspend the application of substantially
equivalent concessions or other obligations pursuant to Article 8 of the
Agreement on Safeguards.
Without prejudice to the
effective exercise of its right to suspend substantially equivalent obligations
referred to in Article 8.2 of the Agreement on Safeguards, the United Kingdom
hereby reserves the right to apply the proposed suspension: (i) in relation to
those measures that have not been taken as a result of an absolute increase in
imports, from 28 June 2025, accounting for the expiration of 30 days after this
notification is received by the Council for Trade in Goods, and (ii) in
relation to those measures that have been taken as a result of an absolute
increase in imports, from 3 April 2028 (in respect of the measures on
automobiles) and 3 May 2028 (in respect of the measures on automobile parts), or
from the fifth day following the date of the adoption by, or notification to,
the WTO Dispute Settlement Body of a ruling that the United States' safeguard
measures are inconsistent with the relevant provisions of the WTO Agreement, if
that is earlier.
The United Kingdom considers
that the measures on automobiles and automobile parts would result in around GBP 2.1
billion and up to around GBP 0.3 billion respectively in theoretical
additional duties collected on United States imports of relevant affected
products from the United Kingdom, based on the import values in 2024, almost
all of which[3] is
with regard to products the import of which into the United States from the
world have not increased in absolute terms.
The proposed suspension of
substantially equivalent concessions or other obligations would take the form
of an increase in customs duty on selected products originating in the United
States. The details of the suspension of concessions or other obligations will
be provided to the Council for Trade in Goods before any application of future
measures.
The United Kingdom reserves the right to
withdraw, modify, supplement or replace this notification and/or make a further
notification or notifications, should it deem that appropriate, including in
light of any subsequent developments.
__________
[1] _G/SG/1,
1 July 1996; amended on 19 October 2009, _G/SG/1/Rev.1
- _G/SG/N/6/Rev.1
- _G/SG/89.
[2] Presidential Proclamation 10908 of March 26, 2025 Adjusting Imports
of Automobiles and Automobile Parts Into the United States (90 FR 14705).
[3] Over 99% in respect of automobiles, and over 95% in respect of
automobile parts.