US drags India to WTO alleging customs duties on 28 American products violating international trade norms

According to a recent report, the United States on Thursday, July 4, lodged a complaint to the World Trade Organisation against India’s move to impose customs duties on 28 American goods, alleging the decision violates international trade norms.

Last month, the Indian government had announced an increase in customs duties on US products ranging from almond, pulses, and walnut. This move was in response to the United States’ decision of imposing 25 per cent higher tariff on Indian steel and 10 per cent on aluminium. In average, India exports steel and aluminium to the US worth US$1.5 billion every year.

Initially, India had proposed to impose higher customs duties on 29 US items but later on removed artemia from the list. Before applying the duties, India waited for a long time hoping to strike a direct deal with the US administration, and in due course of time deferred the decision several times. India was almost the last country to levy its retaliatory duties. The country took this decision finally when the United States withdrew export incentives to Indian exporters under its Generalised System of Preferences (GSP) programme.

The US in its filing to the WTO said that the additional duties imposed by India "appear to nullify or impair the benefits accruing to the US directly or indirectly" under the GATT 1994.

The US also said: "India fails to extend to products of the US an advantage, favour, privilege or immunity granted by India with respect to customs duties and charges of any kind imposed on or in connection with the importation of products originating in the territory of other members."