India rejects US Section 301 allegations, seeks termination; calls for resolution via talks

India has strongly pushed back against the United States’ Section 301 investigations, rejecting allegations of unfair trade practices and seeking immediate termination of the probes.In its submission to the US Trade Representative (USTR), India “firmly denies all allegations made in the initiation notice” related to claims of excess structural capacity and production in manufacturing sectors, PTI reported. “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,” the submission said. India said the notice provides no “cogent rationale” or prima facie evidence to support allegations that the country has structural excess capacity leading to a trade surplus with the US. “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 said. The government also urged that trade concerns be addressed through ongoing bilateral negotiations rather than unilateral measures, noting that both countries are engaged in discussions for a Bilateral Trade Agreement. “India remains willing to constructively engage with the United States in the underlying investigation, including any consultation,” it added. Separately, responding to another Section 301 probe launched on March 12 on alleged failure to act against forced labour, India said the investigation does not meet legal requirements for initiation. “India requests the USTR to make a negative determination and terminate the investigation against India. Additionally, India remains willing to constructively engage with the United States in the underlying investigation, including any consultation,” the submission said. The responses have been filed by the commerce and industry ministry on behalf of the government. On March 11, the USTR initiated investigations into policies and industrial practices of 16 economies, including India, China, Japan and the European Union, to examine “unfair foreign practices” affecting American manufacturing. A day later, on March 12, the USTR launched a broader probe covering 60 economies, including India and China, to assess whether their practices related to forced labour imports are unreasonable or discriminatory and restrict US commerce. India said its submissions represent the public, non-confidential summary of its response, while the full version has been filed separately as confidential.