‘There is no basis …’: US disagree with the US for consulting WTO on auto tariffs; This is called ‘necessary safety exception’. India trade news
The United States has informed the World Trade Organization (WTO) that India’s request for consultation about American tariffs on automobiles and auto components under the security agreement of the trade watchdog was baseless.The United States on Monday informed the WTO that the motor vehicle tariff was implemented under a National Security Provision Section 232, and that the country continues to maintain these measures under the required security exception within the global trade rules. The US said it was “to maintain these tasks as per the necessary security exception.”India said for consultation with the United States that the later 25% advertisement Veloum tariff increase was implemented on the import of passenger vehicles, light trucks and specific automobile parts generated from India.According to the ET report, the measures of automotive components affected any specified end date from May 3, 2025.
US rejected India seeking WTO counseling
- India had expressed concern about the US failure in informing the WTO committee about security measures on the provisions of security measures (AOS).
- Global auto parts imported a total of $ 89 billion in the US in the last year, contributing $ 36 billion in Mexico, China $ 10.1 billion, and $ 2.2 billion in India.
- The United States has stated that its functions were not taken under Section 201 of the 1974 Trade Act, which controls security measures. The US said that consultation was not implemented under the agreement on security measures as these were not safety measures.
- The US Response reflects its stance on India’s proposed counterfeit duties on 29 US products, including apples, almonds, pears, anti-freezing preparations, boric acids and specific iron and steel items. They were intended to compete with the US tariff on steel and aluminum, which said that US imports would have an impact of $ 7.6 billion.
This WTO discussion comes amidst the ongoing talks between the two nations for the bilateral trade agreement (BTA). US trade representatives visited New Delhi from 4–10 June to discuss the trade treaty.
