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 8 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 Kingdom has established rights to suspend concessions or other
obligations in relation to existing safeguard measures applied in 2018 and 2020
by the United States on certain steel and aluminium products and steel and
aluminium derivative products (the "Existing Safeguard Measures").[2]
On
12 March 2025, the United States of America (the "United States")
introduced additional customs duties, at a rate of 25% ad valorem, on imports of other steel and
aluminium products and steel and aluminium derivative products that were not
included within the scope of the Existing Safeguard Measures (the "New
Safeguard Measures").[3]
The New Safeguard Measures apply with respect to the United Kingdom from
12 March 2025 for an unlimited period.
Although
the United States did not notify the New Safeguard 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.
Also
on 12 March 2025, the United States made certain of the Existing Safeguard
Measures more restrictive by increasing the additional customs duties on
imports of certain aluminium products and aluminium derivative products from
10% to 25% ad valorem (the
"Increased Aluminium Duty").
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 New Safeguard Measures that have not been
taken as a result of an absolute increase in imports, and in relation to the
Increased Aluminium Duty, from 9 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 New Safeguard Measures that have been taken as a
result of an absolute increase in imports, from 12 March 2028, 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 notes that more than three years have passed since
the Existing Safeguard Measures on aluminium products and aluminium derivative
products were applied. The United Kingdom considers that: (i) the New Safeguard
Measures would result in around £0.6bn in theoretical additional duties
collected on United States imports of relevant affected products from the
United Kingdom, based on the import values in 2024, of which around £0.4bn is
with regard to products the import of which into the United States from the
world have not increased in absolute terms, and (ii) the Increased Aluminium
Duty would result in around £11m in theoretical additional duties collected by
the United States on imports of relevant affected products from the United
Kingdom, based on the import values in 2024.
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] _G/L/1237
- _G/SG/N/12/EU/1
of 18 May 2018, and _G/L/1356
- _G/SG/N/12/EU/2
of 7 April 2020.
[3] Proclamation 10895 of February 10, 2025, Adjusting Imports of
Aluminum Into the United States (90 FR 9807), and Proclamation 10896 of
February 10, 2025, Adjusting Imports of Steel into the United States (90 FR
9817).