India Rejects Allegations in US Section 301 Probe, Asks for Termination of Both Investigations

India Rejects US Trade Representative's Allegations of Excess Structural Capacity and Production

The Government of India has strongly rejected allegations made by the US Trade Representative (USTR) in investigations regarding excess structural capacity and production involving several countries, including India. According to a submission made by New Delhi to the USTR, the initiation notice has failed to provide a "cogent rationale" to substantiate the claims.

On March 11, the US announced the initiation of investigations against its trading partners, including India, China, Japan, and the EU, to look into and address "unfair foreign practices" that adversely impact American manufacturing. The United States Trade Representative, Jamieson Greer, announced the initiation of a probe regarding the "acts, policies, and practices" of various economies under Section 301(b) of the Trade Act of 1974, relating to structural excess capacity and production in manufacturing sectors.

The economies subject to these investigations are Bangladesh, Cambodia, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Norway, Singapore, Switzerland, Taiwan, Thailand, and Vietnam. In response to the notice issued by the USTR, the Government of India firmly denied all allegations made in the initiation notice.

The notice, according to the submission made by India, provides no cogent rationale or prima facie evidence to substantiate its allegation that India has "structural excess capacity" in its major industries, leading to a trade surplus with the United States. 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. Additionally, India remains willing to constructively engage with the United States in the underlying investigation, including any consultation. The submissions have been made by the Commerce and Industry Ministry on behalf of the Government of India.

Comparison of Investigations

| Investigation | Date | Number of Economies | | --- | --- | --- | | Structural Excess Capacity and Production | March 11 | 16 | | Failure to Take Action on Forced Labour | March 12 | 60 |

India has also submitted a response to another investigation launched by the USTR on March 12 against the number of nations, including India, on failure to take action on forced labour. India has requested the USTR to make a negative determination and terminate the investigation against India. India remains willing to constructively engage with the United States in the underlying investigation, including any consultation.