New Delhi: The United States has turned down India’s request for WTO consultations on the 50 per cent tariffs on copper and copper derivative products imposed by the Trump administration, claiming that the duties are not safeguard measures as claimed by New Delhi.
In a communication to the WTO, the US stated there was “no basis” for India to seek consultations under the WTO Agreement on Safeguards (AoS).
This is the third such case of the US refusing a request for trade consultation after earlier disputes with India on steel and aluminium, and automobiles and auto components.
The 50 per cent tariff, levied under Section 232 of the US Trade Expansion Act, has been in effect since August 1. It applies indefinitely to semi-finished and derivative copper imports. Section 232 authorises the U.S. president to restrict imports deemed a threat to national security.
“The United States is not maintaining this action pursuant to the safeguards/emergency action provision. These tariffs are, therefore, not safeguard measures, and there is no basis to conduct consultations under the AoS,” the US has informed the WTO.
India, on the other hand, has argued that the duties, although claimed to be taken for security interests, are safeguard measures.
As India is an exporter of copper products to the US, it had sought consultations with the US on the matter under the WTO safeguard agreement in September.
India exported copper products, including plates, tubes, and other semi-finished forms, worth $360 million to the US in FY25. However, India is a net importer of copper, with imports totalling $14.45 billion in 2024-25, far outweighing its exports.
“These actions are not safeguard measures. Accordingly, there is no basis for India’s proposal to suspend concessions or other obligations under…the Agreement on Safeguards with respect to these measures,” according to a communication, dated November 6, from the US in response to India’s notification.
A WTO member may take a safeguard action which entails restricting imports of a product temporarily under the WTO Agreement on Safeguards to protect the domestic industry from an increase in imports of any product which is causing, or is threatening to cause, serious injury to the industry.
But before imposing a safeguard duty, a member country has to conduct an investigation and notify other members about the matter.
India has earlier announced reserving the right to impose retaliatory duties on select US products in response to American tariffs on steel, aluminium, and auto components.
The development comes as India and the US continue efforts to advance negotiations on a bilateral trade agreement. A USTR team led by Chief Negotiator Brendan Lynch held talks with Indian officials in New Delhi on Tuesday.
(IANS)
