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Indian Economy

US Drags India to WTO

  • 05 Jul 2019
  • 2 min read

The United States has dragged India to the World Trade Organisation, requesting dispute consultations on the 'retaliatory duties' imposed by India on 28 US goods in June, 2019.

  • India has imposed the duties as a tit-for-tat move against the US decision to impose unilateral additional tariffs on steel and aluminium imported from India.
  • The US claims that the additional duties are inconsistent with the provisions of the WTO's General Agreement on Tariffs and Trade.
  • India's argument in support of its duties is that retaliation is permitted under the WTO's Agreement on Safeguards.
  • To this, the US maintains that its tariffs are not a safeguard measure but were taken under Section 232 of the US Trade Expansion Act of 1962 on grounds of national security.
  • If the dispute consultations between the two countries fail to resolve the matter then the US can ask the WTO to set up a panel to decide on the matter.
  • This mini-tariff war between the US and India sparked from USA's decision to withdraw GSP status from India and other economic issues.
  • Also, it is not the first time the USA and India had there trade issues settled at WTO.
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