Indo-US collision in WTO, how did the matter deteriorate?

Everything is not normal in India and America these days. Even though sometimes diplomatic smiles are seen in pictures. But the ground reality is something else. On the one hand, America is dealing with rare minerals with China. Componses are being reached on the supply of magnets and minerals. On the other hand, pressure is being made by putting heavy tariffs on automobiles and autopartals coming from India. India considered the move against the international trade regulations and lodged a complaint directly to the WTO. India says that these tariffs are safeguards. While the US directly denied this, he said that we did not put any safeguard and hence there is no basis for the conversation.

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Last week, India sought consultation with the US, when Washington adopted a measure in India or from there as a 25% valuable tariff increase on imported passenger vehicles and light trucks and some automobile parts. This measure on automobile parts will be applicable from May 3, 2025, and will be applicable for an unlimited period. Washington informed the World Trade Organization that the automobile has been imposed under Tariff Section 232, which is a National Security Act, and the US is taking these steps under the necessary security exception to the global trade rules. Emphasizing that it did not work according to Section 201 of the Business Act of 1974, under which he applies security measures, the US said that these work is not safety measures and hence there is no basis for consultation under the security agreement regarding these measures.

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India had said that the US failed to inform the WTO committee on security measures under the provision of agreement (AOS) on security measures to decide to implement security measures. The US last year imported $ 89 billion auto parts globally, with Mexico’s share of $ 36 billion, China’s $ 10.1 billion and India only $ 2.2 billion. Washington has also responded to the proposal of New Delhi to counter apples, almonds, pears, anti-freeing preparations, boric acid and some products made of iron and steel to combat American tariffs on steel and aluminum in the name of safety measures. New Delhi told the WTO that these measures would affect imports of $ 7.6 billion in the US.

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