- within Antitrust/Competition Law topic(s)
Indian Updates
India and the USA announce framework for Interim Agreement (07 Feb)
Earlier this month, India and the USA announced the framework for Interim Agreement regarding reciprocal and mutually beneficial trade. India agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products. On the other hand, the USA agreed to apply a reciprocal tariff rate of 18% on textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home decor, artisanal products, and certain machinery. As per the framework, India would not be subject to the additional ad valorem rate of duty of 25% with immediate effect. The USA would have also removed reciprocal tariffs after successful completion of the Agreement on various products including pharmaceuticals, gems and diamonds, and aircraft parts. Further, the USA also agreed to remove tariffs on certain aircraft and aircraft parts from India and give India preferential tariffs on imports of automatic parts. The refund of duties, as applicable, would have been processed pursuant to applicable law and the standard procedures of the US Customs and Border Protection for such refunds. However, with the IEEPA tariffs having been struck down, there is a lack of clarity, as the tariffs agreed upon under the framework may need to be revisited. This is especially since no agreement, interim or final, has yet been signed.
WTO Dispute Settlement Body establishes Panel to review certain Indian incentive schemes (24 Feb)
The WTO Dispute Dispute Settlement Body has agreed to establish a Panel after second request by China to examine Indian incentive schemes supporting advanced chemistry cell batteries, automobiles, auto components, and electric vehicles. China has alleged that the measures discriminate against foreign firms and violate WTO rules, including national treatment and the prohibition of import-substitution subsidies. India has expressed regret, but has maintained that its measures are WTO-consistent.
Global Updates
Imposition of a Temporary Import Surcharge to address Fundamental International Payments Problems (20 Feb)
The US President has issued a proclamation declaring that the USA is experiencing "fundamental international payments problems" within the meaning of Section 122 of the Trade Act, 1974. As a result, a temporary 10% ad valorem import surcharge for 150 days, effective February 24th, 2026, through July 24th, 2026, has been imposed.
The surcharge will be applicable in addition to other duties. The surcharge will be treated as a regular Customs duty and will include specific rules for goods entering Foreign Trade Zones. However, the surcharge will not be applicable to certain selected goods and goods covered under Section 232 of the Trade Expansion Act of 1962 which authorizes the US President to impose tariffs on imports that threaten national security. The Proclamation provides multiple exceptions based on economic necessity, supply limitations, or statutory considerations. Exemptions include certain critical minerals, energy products, pharmaceuticals, specific agricultural goods, selected electronics and vehicles, aerospace products, qualifying goods under the Dominican Republic–Central America Free Trade Agreement, and goods in transit before the effective date. The United States Trade Representative will monitor conditions and recommend modification, suspension, or termination if warranted.
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