Graham Act deadline nears, no word on India tariffs

Washington, October 15 (IANS): Three days before US President Donald Trump must act on tariffs against the biggest buyers of Russian oil, the administration has published no list of targeted countries, no duty rate and no waiver, leaving India’s exposure unresolved as Secretary of State Marco Rubio prepares to travel to the country.The Lindsey O. Graham Sanctioning Russia and Iran Act, signed by Trump on September 18, says the President “shall” raise duties on all goods from covered countries to a rate of up to 100 per cent within 30 days of enactment, which falls on Saturday, October 18.As of Thursday morning, the White House, the Office of the US Trade Representative and the Treasury Department, including its Office of Foreign Assets Control, had released no top-five country list, rate, Section 113 justification or Section 115 waiver.The Federal Register’s public inspection list for Thursday, which carries 131 documents, contains no Graham Act tariff notice or waiver certification. The latest USTR press releases deal with the G20 trade ministers’ meeting and labour cases involving Mexico.Under Section 113(g) of the law, the President or the US Trade Representative must send relevant congressional committees a written justification for any duty “not later than 10 days before imposing” it. For duties starting on October 18, that point passed on or about October 8.The law requires the justification to go to Congress, not to be published, and committee staff may have received it without releasing it.Section 115 lets the President waive any duty, but only after giving Congress “a certification in writing” that the waiver is in the national interest of the United States. No such certification has been made public.India’s exposure turns on its oil purchases. A country is covered if it was among the five largest importers of Russian crude oil or natural gas in the 12 months before enactment and “knowingly made new purchases” on or after October 18.India is the second-largest buyer of Russian crude after China on unofficial rankings, and does not figure among the largest buyers of Russian gas.The timing puts Rubio’s first trip to India as Secretary of State under a spotlight. The State Department has announced that he will attend a meeting in Samarkand, Uzbekistan, on October 17 and then travel to Mumbai and Jamnagar from October 19 to 22.Jamnagar is home to Reliance Industries’ refinery complex, among the largest buyers of Russian crude in India. Rubio will arrive the day after the deadline, as the law’s “new purchases” test begins to apply.The administration’s own signals on the date have been mixed. US Ambassador to India Sergio Gor told a forum in New Delhi on Wednesday that Trump “has to make a determination in the next I believe 10 or so days” under the law, a timeline that would run past October 18.Gor said India “does fall in one of those buckets, along with a lot of other countries”, referring to the law’s tests for oil, gas and sanctions evasion. Asked about relief for India, he said: “That’s a decision for the President.”Earlier this month, US Trade Representative Jamieson Greer said of the law’s reporting requirement: “We have to name names — so we’ll be doing that. What kind of action we’ll take is for the president to decide.”The deadline comes amid a separate fight on Capitol Hill over Trump’s decision to allow imports of Russian diesel fuel. Seven senators led by Senate Foreign Relations Committee ranking member Jeanne Shaheen said on October 11 the administration had “failed to consult with Congress or submit any explanation to justify its decision as required by statute”.Twelve senators, including Republican Mitch McConnell and India Caucus co-chair John Cornyn, wrote to Trump on October 13 urging him to use Graham Act authorities against Russia’s “chief enablers … in particular China”. India was not named in the letter.Indian goods already pay a 10 per cent duty under Section 301. Any Graham Act duty would be stacked on existing tariffs.The Graham Act passed the Senate 86-11 on August 7 and the House 262-159 on September 16.