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 3 July 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 automobile parts from India.

This notification is made in accordance with the format for notification (_G/SG/1/Rev.1 dated 5 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:

On 26 March 2025, the United States of America ("United States") adopted a safeguard measure in the form of a tariff increase of 25% ad valorem on imports of passenger vehicles and light trucks, and on certain automobile parts originating in or from inter alia the India.[1] These measures apply from 3 May 2025 as regards automobile parts, and for an unlimited duration.

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 would take 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$ 2895 million imports annually into the United States of the relevant products originating in India, on which the duty collection would be US$ 723.75 million. 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, AoS 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.

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