The US has informed the World Trade Organization ( WTO ) that India’s formal complaint was challenged because it was being made on national security grounds rather than as a safeguard measure.
The US claimed in a letter from April 17 that the tariffs were imposed under Area 232 of US business laws, which grants the President the authority to impose restrictions on imports that threaten to undermine national security. The US notes that India’s demand for interviews under Article 12.3 of the Safeguards Agreement is based on the statement in the conversation that” the taxes are prevent measures”. According to Section 232, the President decided that taxes are necessary to adjust exports of steel and aluminum products that threaten to undermine the US’s regional stability.
India requested interviews with the US in accordance with the WTO’s Agreement on Safeguards on April 11. The answer followed. Regardless of how the US labels the tariffs, India has argued that they are in fact prevent measures that come with strict commitments under WTO rules, including official notifications and consultations.
India alleged that the US had failed to notify the WTO Committee on Safeguards as required under the Agreement on Safeguards ( AoS), noting that these measures are in essence safeguard measures.
The US argued in its response that Section 232 is a national security statute rather than a safeguard tool, and that this fall under the General Agreement on Tariffs and Trade ( GATT ) of 1994’s security exception clause. This provision gives WTO members the authority to take actions “necessary for the safety of important safety pursuits.”
Numerous nations have voiced their opposition to the US’s original US levies on steel and aluminum. Washington aims to protect the shift from WTO attention by framing the action as under national protection rather than protection.
India’s decision to start interviews reflects a desire to make these business controls more accountable and transparent. India may ask the WTO to establish a dispute settlement board if the issue is certainly resolved through discussions.
