India Strongly Rejects US Trade Allegations, Seeks End to Probes
India has issued a robust rebuttal to the United States' Section 301 investigations, categorically denying claims of unfair trade practices and demanding the immediate termination of these probes. In a formal submission to the US Trade Representative (USTR), the Indian government has challenged the legal and factual basis of the allegations, emphasizing a preference for resolving trade issues through ongoing bilateral discussions.
Firm Denial of Allegations
India's response, as reported by PTI, "firmly denies all allegations made in the initiation notice" concerning excess structural capacity and production in manufacturing sectors. The submission argues that the notice relies on aggregate macroeconomic indicators without specifying any particular Indian government act, policy, or practice that could be deemed "unreasonable or discriminatory" under Section 301(b) of the Trade Act of 1974.
The document states: "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."
Lack of Evidence and Legal Grounds
India contends that the notice provides no "cogent rationale" or prima facie evidence to support allegations of structural excess capacity leading to a trade surplus with the US. The submission asserts that the investigation fails to meet the legal requirements for initiation under Sections 301 and 302 of the Trade Act of 1974.
"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 declares.
Advocacy for Bilateral Engagement
The government has 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 has expressed willingness to constructively engage with the United States in the investigation, including any consultations.
India's stance is clear: "India remains willing to constructively engage with the United States in the underlying investigation, including any consultation."
Response to Forced Labor Probe
Separately, India has responded to another Section 301 probe launched on March 12, which alleges failure to act against forced labor. India argues that this investigation also does not meet the legal requirements for initiation.
The submission states: "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."
Background of the Investigations
These responses were filed by India's 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 labor imports are unreasonable or discriminatory and restrict US commerce.
India has clarified that its submissions represent the public, non-confidential summary of its response, with the full version filed separately as confidential.
