New Delhi , June 16: India has proposed to impose retaliatory tariffs on 30 US products by notifying it to World Trade Organisation of its decision to suspend concessions to United States and raising the customs duty by up to 50 percent.
India clarified that as duties hiked by the US on certain steel and aluminium products would have implications of about $241 million on India, the raise in tariffs proposed by New Delhi, too, would have an equal implication on America.The country has proposed this move under the WTOs Agreement on Safeguards.
Customs duty on motorcycles with engine capacity over 800 cc will be raised up to 50 percent, almonds 20 percent, walnuts 20 percent and apples 25 percent.
This move came as retaliation to Washington’s move to impose higher duties on Indian steel and aluminium exports.
India in a letter to the World Trade Organisation (WTO) stated that the suspended concessions are substantially equivalent to the amount of trade affected by the measures imposed by the United States.
India notified World Trade Organisation of its decision to suspend concessions to US on 30 products, after safeguard measures imposed by US on imports of certain articles. India clarified that suspension of concessions shall be equal to amount of trade affected by US’ measures. pic.twitter.com/SAyY6HWYsf
— ANI (@ANI) June 16, 2018
“This notification is made in connection with safeguard measures imposed by the United States of America on imports of certain aluminium and steel articles,” India said.
India expects around USD 238.09 million of duty to be collected through the measure imposed on the US.In March, the US imposed 25 percent duty on certain steel products and 10 percent on aluminium products, which will help the US collect $241million of duty.
“The revision is being provided to adjust the products and the tariff rates in accordance with India’s rights reserved vide its notification to the Council for Trade in Goods contained in the WTO document…of May 18, 2018. India hereby reiterates its decision to suspend concessions or other obligations notified to the Council for Trade in Goods on May 18, 2018…of the General Agreement on Tariffs and Trade 1994 and Article 8.2 of the Agreement on Safeguards, that are substantially equivalent to the amount of trade affected by the measures imposed by the United States,” the communication by India to WTO said.
It said that the proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the US, based on the measures of the America.
“India reserves its right to further suspend substantially equivalent concessions and other obligations based on the trade impact resulting from the application of the measures of the US,” it added.