India formally submitted on Tuesday its intentions to seek consultations at the World Trade Organization over US' 25% tariffs on auto parts.
In a notice, the Indian delegation said the measure, imposed by US on March 26, in its design and effect, constitute safeguard measure within the meaning of Article XIX of GATT 1994 and the Agreement on Safeguards, as it is intended to protect the US domestic industry from increased imports.
"The US failed to notify the WTO Committee on Safeguards under Article 12.1(c) of the Agreement on Safeguards (AoS) on taking a decision to apply the safeguard measure," they said. "Accordingly, as an affected member with significant export interest to the United States in the products concerned, India requests consultations with the United States."
Now, India is looking to set a "mutually convenient date and venue for the above-mentioned consultations" to take the matter forward.
India had earlier moved the WTO against US' steel, aluminium tariffs, but US has rejected the claims. The US' rejection came after India submitted a formal notification to the WTO on May 9.
India's position was that the US tariffs—imposed under Section 232 of the US Trade Expansion Act of 1962—amounted to safeguard measures under WTO rules, entitling India to withdraw equivalent concessions.
Given this rejection, India now faces several options, such as retaliation, raising a formal dispute or settling through talks.
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