India Seeks WTO Consultation Over US 50% Duty on Copper Products

On Tuesday, India sought consultation from the US under the World Trade Organization (WTO) safeguard agreement regarding the 50% duty imposed on copper products. This step has been taken after India reserved the right to impose retaliatory duty on selected US products in response to the US duty on steel, aluminum, and vehicle parts.

The US had decided to impose a 50% duty on all imports of few copper products on 30 July this year. This measure was implemented for an unlimited period from August 1 this year. "India believes that this step, though claimed to be taken for security interests, is in fact a safeguard measure. This letter is being circulated at the request of the Indian delegation," a letter to the WTO said.

It said that the US has not informed the WTO's safeguard committee about its decision to impose safeguard measures. Therefore, India requests consultations with the US. The WTO further said, India hopes to receive an early response from the US on this request and to determine a mutually convenient date and place for consultations.

World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala said on Tuesday that the share of global trade carried out on WTO terms has fallen to 72% amid the biggest disruption to the international trading system in the last 80 years. Global trade carried out under the WTO's Most Favoured Nation (MFN) terms has declined since US President Donald Trump started imposing high import duties on most trading partners.

Under this principle, WTO members are required to treat others equally. The head of the Geneva-based trade regulatory body also said in an interview that, as long as most of the trade is happening on MFN terms, I think we should be happy. We are still a long way from the 50% reduction figure.