India has resorted to WTO’s safeguard agreement to begin consultations with the US against the President Proclamation issued by the US President Donald Trump in January, according to local media. The proclamation extends the 25pc tariff levied on imports of steel and 10pc tariff on imports of aluminium in March 2018.

 

In January, the White House issued a proclamation on adjusting imports of derivative aluminium and steel products into the US. The proclamation cited that imports of derivative steel and aluminium threatened the country’s national security as per the provisions of Section 232, Trade Expansion Act of 1962. 

 

India being an affected member of the proclamation with significant exports of these products into the US has requests consultations with the US. India seeks to exercise its rights to make factual, legal arguments and raise additional issues with the US authorities during the consultations.

 

In 2019, a total of 34,563mt of aluminium derivatives were exported into the US, Mexico topped the list with 15,035mt of exports, followed by 6,194mt from Canada, 4,225mt from India and 3,162mt from China. A total of 520,068mt of steel derivatives were exported into the US in 2019, China topped the list with 197,737mt exports, while India ranked ninth with 18,563mt exports. Steel and aluminium derivatives include body stamping of steel and aluminium for automobile parts and accessories, including tractors.

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