INDIA

Addendum

The following communication, dated and received on 8 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 aluminium, steel and derivative articles, vide Presidential Proclamation Nos. 10895 and 10896 dated 10 February 2025 with the effective date of 12 March 2025. Again, on 3 June 2025 there is an increase in the tariff rate for imports of steel articles and derivative steel articles, and aluminum articles and derivative aluminum articles, from 25% ad valorem to 50% ad valorem vide Presidential Proclamation No. 10947 dated 3 June 2025 effective from 4 June 2025.

Without prejudice to its earlier notification to the Council for Trade in Goods and the Committee on Safeguards _G/L/1571 - _G/SG/N/12/IND/5 dated 12 May 2025, India reserves its right to adjust the products and tariff rates. This request is made in response to the increase in the tariff rate by the United States, from 25% ad valorem to 50% ad valorem.

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:

The safeguard measures were imposed by the United States on imports of aluminium and steel articles, vide Presidential Proclamation Nos. 9704 and 9705 dated 8 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. There is a further adjustment  in the tariff rate for imports of steel articles and derivative steel articles, and aluminum articles and derivative aluminum articles, from 25% ad valorem to 50% ad valorem vide Presidential Proclamation No. 10947 dated 3 June. 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 United States  have not notified these measures to the WTO, as required, even though these  are, in essence, safeguard measures. India maintains that the actions taken by the United States are inconsistent with its obligations under the GATT 1994 and Agreement on Safeguards(AoS). Moreover, the United States has not engaged in the consultations mandated under Article 12.3 of the AoS. In light of these procedural and substantive shortcomings, and pursuant to  Article 8 of the AoS, India reserves its right to suspend substantially equivalent concessions or other obligations, commensurate with the adverse effects of these measures on 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$7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be US$ 3.82 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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