India Seeks WTO Consultations with US Over Four-Year Quartz Surface Tariff Quota

India has formally sought consultations with the United States at the World Trade Organization (WTO) regarding Washington’s safeguard measure on imports of quartz surface products. The diplomatic and trade move follows the US imposition of a four-year tariff-rate quota (TRQ) that took effect on August 15.

The US action follows a determination by the US International Trade Commission (USITC) that increased imports were causing serious injury to domestic American industries. The measure covers various items, including quartz slabs and other fabricated quartz surface products created from a mixture of silica and resin binders.

Under the USITC recommendations, imports falling within the established quota will face a 25 percent tariff in the first year. Shipments exceeding the quota will incur a 40 percent duty. Both rates are structured to decline by one percentage point annually over the four-year period, eventually reaching 22 percent and 37 percent respectively by the fourth year.

According to WTO notifications, India, Vietnam, Spain, and Thailand were identified as major exporting countries during the investigation period. The safeguard measure carries substantial economic weight for Indian manufacturers. Data from the Federation of Quartz Surface Manufacturers of India (FQSMI) indicates that approximately 95 percent of India’s quartz surface production is exported to the United States, with exports for the 2024-25 period valued at roughly $700 million.

In its official submission to the WTO, India stated that it holds a substantial interest in the matter and has requested consultations under Article 12.3 of the WTO Agreement on Safeguards. India has proposed holding the consultations virtually at a mutually convenient time to review the provided information and exchange views on the proposed measure.

Under WTO rules, the United States is required to respond to the request within 10 days and enter into consultations within 30 days, unless both parties agree to an alternative timeline. The initial consultations remain confidential with the objective of reaching a mutually satisfactory solution.

Should these consultations fail to resolve the dispute within 60 days of the request, India retains the option to ask the WTO’s Dispute Settlement Body to establish a panel to adjudicate the matter legally.

"Trade measures of this scale directly impact export-reliant manufacturing sectors, particularly when a single destination accounts for the vast majority of outbound shipments. For businesses operating in this space, sudden tariff adjustments introduce severe pricing and supply chain unpredictability. Utilizing formal dispute mechanisms like WTO consultations is a necessary step to safeguard exporter interests, while reinforcing the need for domestic manufacturers to continuously evaluate market diversification strategies to mitigate geopolitical and regulatory risks." — Dr. Shishir Gupta, Founder & CEO, StartupLanes