Piyush Goyal on US Section 301: India need not worry and trade deal on track | Today’s news
India-US Trade Agreement: Union Commerce and Industry Minister Piyush Goyal has expressed confidence that India and the United States will successfully strike a bilateral trade deal, even as New Delhi closely monitors developments surrounding Washington’s Section 301 probe and potential tariff measures.
Speaking at the Financial Express India’s Best Banks Awards in Mumbai, Goyal said US Trade Representative Jamieson Greer is expected to visit India in the next two weeks for further talks on the proposed trade deal.
“So this (Section 301 investigation) is really a mechanism being created, given their (US) restrictions that Congress will not support any of their actions (on reciprocal tariffs)… They are trying to create a competitive advantage for India. So I don’t think (we have to) worry about Section 301, we will work it out, it is our responsibility.”
What is US Section 301?
President Trump administration has launched a new investigation into alleged “unfair trade practices” of 16 major trading partners, including India, Chinaand Bangladesh. The move is aimed at re-applying tariff pressure following a US Supreme Court ruling last month that ruled previous charges illegal.
These investigations are conducted under Section 301 of the Trade Act of 1974. The Act authorizes the US Trade Representative to enforce tariffs or other punitive measures against countries found to be using unfair trade practices.
US Sales Representative Jamieson Greer has previously indicated that the investigation could result in new tariffs on China, the European Union, India, Japan, South Korea and Mexico by the coming summer.
“The investigation (Section 301) is country-specific,” Goyal told a Financial Express event on June 7, without naming China.
The minister said India is eagerly awaiting what kind of tariffs will eventually be imposed under Section 301. “We will protect India’s interests and I am very confident that (the India-US trade deal) will pass. It will be a good deal,” he said.
Goyal’s remarks come just days after Indian and US negotiators concluded another round of talks in New Delhi aimed at narrowing differences in an interim trade pact. The two sides had earlier indicated that negotiations were in the final stages, with Goyal earlier hinting that a deal could be reached by July.
I strongly believe that (the India-US trade deal) will pass.
According to the Office of the United States Trade Representative, Section 301 of the Trade Act of 1974 is intended to address unfair foreign practices that affect US trade. The section allows the U.S. to respond to actions by foreign governments that are unjustified, unreasonable, or discriminatory and burden or restrict U.S. trade. According to ยง 302 letter (b) of the Act, the US Trade Representative has the authority to initiate an investigation under Section 301 on his own.
