India Rejects USTR Allegations, Seeks Termination Of Section 301 Investigation

New Delhi, Apr 16 (KNN) India has strongly rejected allegations made by the Office of the United States Trade Representative (USTR) in its ongoing Section 301 investigations, asserting that the probe lacks a ‘cogent rationale’ and fails to provide any substantive evidence.

In its submission, India has urged the USTR to issue a negative determination and terminate the investigation against the country, PTI reported.

The investigation, announced on March 11 by Jamieson Greer, examines ‘acts, policies, and practices’ related to structural excess capacity and production across several economies, including India, China, Japan and the European Union, under Section 301(b) of the Trade Act of 1974.

A separate probe launched on March 12 focuses on alleged failures by countries to address forced labour concerns in global supply chains.

India Challenges Basis of Investigation

The submission stated, "The initiation Notice is premised on aggregate macroeconomic indicators, without identifying any specific act, policy or practice of the Government of India that could be considered 'unreasonable or discriminatory' and that 'burdens or restricts United States commerce' as required by Section 301(b) of the Act."

It further said that the notice does not present prima facie evidence to support claims of ‘structural excess capacity’ in Indian industries or its impact on trade balances with the US.

Calls for Dialogue Over Unilateral Action

"India submits that the present investigation does not satisfy the requirements for the initiation of this investigation pursuant to Sections 301 and 302 of the Trade Act of 1974. India calls upon the USTR to make a negative determination and terminate the investigation forthwith," it noted.

India emphasised that both countries are currently engaged in negotiations for a bilateral trade agreement and said that any trade-related concerns should be addressed through that framework rather than unilateral investigations.

The submission reiterated India’s willingness to engage constructively with the US, including through consultations under the ongoing investigations.

Commerce Ministry Leads Response

The response has been filed by the Ministry of Commerce and Industry on behalf of the government, with a detailed submission provided confidentially to US authorities.

(KNN Bureau)