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.
- Recently India has won a major trade dispute against the US at the World Trade Organization (WTO) regarding domestic content requirements and subsidies.