India Unlikely to Take WTO Fight Over US Steel Tariffs
Why in the news
India asked the US for consultations at the WTO on 25% tariffs on steel and aluminium, but is not expected to push this into a full dispute while bilateral trade talks continue.
Key facts
- India used Article 12.3 of the Agreement on Safeguards; officials call it procedural, not escalatory, only preserving India’s right to retaliate later.
- It is the first WTO case between India and the US since they agreed to drop seven pending cases under the Biden administration.
- India views the US tariffs as safeguard measures; the US argues a national security exception.
- The US told the WTO Council for Trade in Goods that it is acting on essential security grounds and is not changing its tariff bindings.
Why restraint
- The WTO Appellate Body is non-functional because the US blocks appointment of judges, so a binding ruling may never come.
- India prefers a bilateral solution while talks with the US gather pace.
- Joining China’s formal WTO case against the US is considered unlikely.
Significance
- Shows pragmatism: a senior official questioned relying on mechanisms that are themselves under strain.
- Signals a preference for diplomacy in a fractured global trade setting.
Exam angle
- Provision: Article 12.3, Agreement on Safeguards.
- Body in deadlock: WTO Appellate Body.
- Number of earlier India-US cases withdrawn: seven.