India proposes retaliatory tariffs Against US Over Auto Duties at WTO
World Trade Organization
(WTO) norms over latest American tariffs on
automobile imports
in the guise of safeguard measures. "The safeguard measures would affect $2.895 billion imports annually into the US of the relevant products originating in India, on which the duty collection would be $723.75 million," New Delhi told the WTO.
Last month, India sought consultations with the US after Washington adopted a measure in the form of a 25% tariff increase ad valorem on imports of passenger vehicles and light trucks, as well as certain auto parts originating in or from India.
India said its proposed suspension of concessions or other obligations would be in the form of higher tariffs on selected products originating in the US.
"Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the US," it said. "This notification is made in connection with safeguard measures extended by the United States of America on imports of automobile parts from India."
The US imported $89 billion worth of auto parts globally last year, with Mexico accounting for $36 billion, China at $10.1 billion, and India at only $2.2 billion.
This is the second instance of New Delhi proposing retaliatory tariffs on US goods.
In May, India proposed to levy retaliatory duties on certain American products under the WTO to counter US tariffs on steel and aluminium in the guise of safeguard measures. At the time, New Delhi told the WTO that these measures would affect $7.6 billion imports into the US.
On March 26, the US adopted a safeguard measure in the form of a tariff increase of 25% ad valorem on imports of passenger vehicles and light trucks, and on certain auto parts from India. These measures were effective May 3 for auto parts, and for an unlimited duration.
The steps are still to be notified by the US to the WTO, but are, in essence, safeguard measures. India has maintained that the measures taken by the US are not consistent with the General Agreement on Trade and Tariff 1994 and the agreement on Safeguards.
As consultations sought by India on these tariffs are still to happen, New Delhi said it reserves right to suspend concessions or other obligations to the US in the meantime.
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