US Rejects India's Plea For WTO Consultations Over Metal Tariffs, Cites National Security

New Delhi: The United States has declined India's request for World Trade Organisation consultations regarding American tariffs on steel, aluminum, and derivative products, Parliament learned on Tuesday.

The US justified these measures as necessary for national security reasons, according to Minister of State for Commerce and Industry Jitin Prasada. India disputes this classification, arguing these are actually safeguard actions that should have been properly notified and discussed under the WTO's Agreement on Safeguards (AoS).

Due to America's non-compliance with AoS obligations, India has reserved its right to impose equivalent retaliatory trade measures. Despite this trade dispute, both nations continue working toward a Bilateral Trade Agreement (BTA) to boost commerce and investment. Negotiations launched in March 2025 have progressed through five rounds, with the latest held July 14-18 in Washington.

These discussions allow countries to protect sensitive domestic sectors through exclusion lists limiting tariff concessions. Minister Prasada emphasized that nations can implement trade remedial measures like anti-dumping duties and safeguards when import surges threaten domestic industries. This framework helps balance international trade liberalization with protecting local farmers and manufacturers.

Addressing other trade relationships, the minister clarified that India has not restricted trade or tourism with Turkey and Azerbaijan. However, Turkish imports declined from $3.78 billion in 2023-24 to $2.99 billion in 2024-25. Major Turkish imports include petroleum crude, gold, inorganic chemicals, granite, natural stones, and aircraft parts.