WTO Agreement on Safeguards (AoS)

WTO Agreement on Safeguards (AoS) : Recently, India formally notified the World Trade Organization (WTO) of its intention to impose retaliatory tariffs on $7.6 billion worth of U.S. goods.

o This move responds to the U.S. decision to reintroduce 25% tariffs on steel and aluminium imports from March 2025, citing national security and offering no exemptions by country or product.

• About WTO AoS : Emergency trade actions under the WTO Agreement on Safeguards to protect domestic industries from a surge in imports causing or threatening serious injury.

o Purpose: Prevent or reduce harm to domestic industries by temporarily restricting imports.

o Forms: May include import quotas or raising tariffs above bound rates.

o Nature: Unlike anti-dumping and countervailing duties, no unfair trade practice needs to be proven.

• Conditions: Must be temporary and progressively liberalized.

o Should apply on a non-selective, Most-Favored-Nation basis

o Requires compensation to affected trading partners.