United States may reject India's plea to join China in tariff dispute

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BELGIUM-EU-MEDITERRANEAN-ECONOMY-TRADE

She also expressed concern about increased tensions over trade between the United States and China, saying it could develop into something "very worrisome for the global economy".

"The move would help create a pressure on the U.S. as other member countries may join India in this".

The US on Thursday rejected a separate submission for consultation by India on the same matter at the committee of safeguards, holding that the tariff action by the Donald Trump administration is not safeguard duties but a step taken to protect national security.

The US move follows WTO procedures, which order members to respond to a request for settlement from another member within ten days, said MOC spokesperson Gao Feng.

The WTO confirmed on April 17 that the European Union had filed a consultation request with the organization on April 16 regarding the newly implemented US steel and aluminum tariffs. "Nonetheless, we are open to discuss this or any other issue with India", the United States said.

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India had dragged the USA to the WTO earlier this week demanding that it give adequate compensation to it under the Safeguards Agreement for the 10 per cent increase in tariffs for aluminium and 25 per cent for steel imposed selectively on the country last month.

"This is not a dispute in the full sense of the word, but a somewhat different track", he stressed.

The consultations, however, don't fall under the World Trade Organisation's (WTO's) dispute settlement system. However, once a dispute settlement panel is established, it can not refuse other countries joining the dispute as third parties.

Indias move assumes significance as the country has urged the U.S. to give exemption from the tariff hikes.

India considers this move "to be an emergency action/safeguard measures" under a provision of the General Agreement on Tariffs and Trade and the Agreement on Safeguards, the WTO has said.

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