India takes U.S. steel tariffs complaint to the WTO

Reuters  |  GENEVA 

By Tom Miles

Indian officials told last month that their government would open a WTO dispute if the country's firms were not granted an exemption.

Trump imposed the tariffs in March, levying 25 percent on imports and 10 percent on aluminium. He said they were justified by national security concerns and therefore outside the WTO's remit.

India, China, Russia, Japan, and the have all dismissed that claim, regarding the U.S. tariffs as "safeguards" under the WTO rules, entitling them to a combined $3.5 billion in annual compensation.

India's retaliation claim seeks to recoup a cost of $31 million levied on its aluminium exports and $134 million on steel, and it has said it could target U.S. exports of soya oil, palmolein and cashew nuts in its retaliation.

Its latest legal challenge seeks to force the to scrap the tariffs entirely. It follows a similar move last month by China, which called "completely baseless".

Under WTO rules, the has 60 days to settle the complaint, after which could ask the WTO to set up an expert panel to adjudicate.

However, uncertainty is hanging over the WTO's dispute settlement system because Trump is vetoing the appointment of new appeals judges.

In its complaint, listed a string of ways the U.S. tariffs violated the WTO rules and unfairly damaged India's interests.

It said they broke the WTO's safeguards agreement and the United States was trying to use its tariffs to get other countries to agree to "voluntary export restraints".

The United States had also exceeded the maximum import tariff allowed by the WTO and the tariffs were not applied uniformly to and aluminium imports from all suppliers, breaking a core principle of the WTO rulebook.

(Reporting by Tom Miles; Editing by and David Stamp)

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First Published: Wed, May 23 2018. 20:01 IST