India may retaliate against US auto tariffs at WTO

• The US cites 'national security'

- MUKESH JAGOTA

INDIA HAS NOTIFIED the World Trade Organisation (WTO) that it proposes to retaliate against the additional 25% duty imposed by the US on imports of automobiles and auto parts in May.

This move follows India's request for consultations with the US on the tariffs early last month. India has described the extra duties as "safeguard measures," which, under WTO rules, must be officially notified to the WTO under the Agreement on Safeguards.

However, the US rejected India's position, asserting that the tariffs were imposed on the grounds of "national security" and are therefore not subject to the safeguards agreement.

"India reserves its right to suspend concessions or other obligations after the expiration of thirty days from the date of this notification," New Delhi informed the WTO.