US Denies India's Request for WTO Talks Over 50% Copper Tariffs

As per the news reports, the United States has rejected India’s request for consultations at the World Trade Organisation (WTO) regarding the US 50% tariffs on copper and copper derivative products. India had argued that these tariffs are safeguard measures that hurt its copper trade, but the US disagreed. 

It told the WTO that there was “no basis” for India to conduct consultations. This is the third case in which India has sought such consultations with the US and the latter has refused, after disputes over steel and aluminium, and automobiles and auto components.

US Position and Section 232

The tariffs were imposed on semi-finished and derivative copper imports from 1 August under Section 232 of the Trade Expansion Act of 1962. This provision authorises the US president to adjust imports if they are considered a threat to national security. The tariffs are set for an unlimited duration. 

The safeguard agreement is used when a sudden increase in imports causes serious injury to a domestic industry, but Section 232 is focused on national security concerns. The US maintains that its action is not related to protecting industries from trade disturbances but is rather aimed at ensuring supply chains for critical sectors such as defence and infrastructure remain secure.

Impact and Future Negotiations

The dispute is happening as both countries discuss a proposed bilateral trade agreement aimed at improving trade relations. American negotiators were in New Delhi for talks on India-US trade ties, including this agreement, even as disagreements persist. 

The rejection of India’s request highlights ongoing trade tensions between the two nations. If these tariffs remain, industries dependent on copper imports, such as construction, electronics, and manufacturing, may face higher costs and supply challenges. 

At the same time, both countries are trying to strengthen their trade partnership, and resolving such issues is important for the success of future agreements. How this matter develops at the WTO will likely influence broader discussions on trade policy between India and the US.

Read More: India and US Finalise Terms of Reference to Address Trade Tariff Barriers!

Conclusion 

The rejection marks a continued challenge in resolving trade disputes between India and the US. While both sides are negotiating a bilateral trade agreement, differences over tariffs and trade rules remain. 

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