PTI New Delhi

India has "only" reserved its right under WTO norms to impose retaliatory duties on certain American products over the US' steel and aluminum tariffs and it may choose to resolve the issue through the ongoing bilateral trade agreement (BTA) negotiations between the two countries, an official said on Tuesday.

The official said earlier also a similar notification has been issued to the World Trade Organization (WTO) by India against the European Union over EU's steel safeguard measure of 2019 and 2021, but it has not been implemented to date.

"Accordingly, India's current notification to WTO Council for Trade in Goods against US' steel and aluminium tariffs only reserves India's right under the Agreement on Safeguards to retaliate at any future date. However, it is for India to decide whether to effectuate these proposed retaliation after 30 days of the notification or later or resolve it as part of ongoing BTA negotiations," the official said.

Retaliatory tariff proposal may cast shadow on trade pact talks with US: GTRI

India's proposal to impose retaliatory import duty on certain US products in response to American tariffs on steel and aluminium could cast a shadow over ongoing negotiations for a trade agreement between the two countries, think tank GTRI said on Tuesday. The Global Trade Research Initiative (GTRI) said that if the US engages in consultations with India on the matter or withdraws tariffs, a resolution may be reached.

Otherwise, India's retaliatory import duties could take effect in early June, potentially impacting US exporters and deepening trade frictions, it added. In a significant move targeting US safeguard duties on steel, aluminium, and their derivative products, India has formally notified the World Trade Organisation (WTO) of its intention to suspend trade concessions granted to the US. The proposed suspension of concessions could take the form of increased tariffs on selected US products.