India won’t withdraw WTO complaints against US tariffs unless resolved, as intense trade talks begin in New Delhi to finalize a bilateral deal.
India will not withdraw its World Trade Organization complaints against US tariffs on steel, aluminium and automobiles unless the dispute is resolved even as negotiating teams from both sides began intensive talks in New Delhi on Thursday to finalise an early bilateral trade deal, according to people familiar with the matter.
A team led by assistant US trade representative Brendan Lynch arrived in Delhi late on Wednesday for discussions with a ministry of commerce team that began on Thursday. The talks are scheduled for two days of engagements as both countries work toward an announcement on an early portion of the Bilateral Trade Agreement (BTA), potentially this month itself.
The negotiations come against a critical July 9 deadline when an additional 16% reciprocal tariff on Indian goods is set to take effect, adding urgency to the bilateral talks.
According to two officials aware of the matter, the parallel dispute at the World Trade Organisation is expected to not interfere with the BTA negotiations and India expects the issues to be resolved through mutually agreed solutions (MAS) mechanism, as was done for seven other disputes in June and September 2023.
“India is unlikely to withdraw its complaints against the US for illegally imposing safeguard tariffs on Indian steel, aluminium and automobiles at the World Trade Organisation,” said one of these people, asking not to be named.
“It is hoped that this matter will be resolved amicably under MAS as the trade negotiation is all about greater market access for both parties,” he added
The stance reflects India’s determination to challenge what it views as violations of multilateral trade rules while stressing on the need to get the BTA done. In a notice to the World Trade Organisation, India indicated it would respond to the metals tariffs by proportionately suspending concessions given to American imports. Washington rejected the notice on May 9.
The controversy around the steel, aluminium and automobile and auto components tariffs stems from the Trump administration’s decision on February 10 to impose 25% levies on these imports effective from March 12, forcing India to approach the World Trade Organisation on May 9. The matter escalated when the Trump administration doubled tariffs on the metals to 50% effective from June 4, citing national security.
Besides metals, the US on March 26 raised tariffs on imports of passenger vehicles, light trucks and certain automobile parts from India to 25%. The deadline for India’s one-month notice to the US on the steel and aluminium issue ends on June 8, after which it would be free to retaliate.
In its latest notice dated June 2 regarding automobile tariffs, New Delhi again sought resolution before potential retaliation after a month.