U.S. Considering ‘301 probe’ on India

The Deputy U.S. Trade Representative (USTR) has stated that the U.S. will consider a 301 investigation which is a precursor to tariffs and other trade measures. if the trade issues between the two countries are not resolved quickly.

The U.S. which is opposing the data localization provisions said India finalizing data localisation policies could be deal-breaker, paving the way for 301 investigations.

301 Probe

• Section 301 of the Trade Act of 1974 provides the United States administration with the authority to enforce trade agreements, resolve trade disputes, and open foreign markets to U.S. goods and services.
• The law also provides the United States to impose trade sanctions on foreign countries that either violate trade agreements or engage in other unfair trade practices.
• The law states that when negotiations to remove the offending trade practices fail, the United States may take action to raise import duties on the foreign country’s products as a means to rebalance lost concessions.
• The list of products on which the United States raises import duties is called a “retaliation list.”

The USTR carefully chooses the products to be included on retaliation to minimize the adverse impact on U.S. consumers, firms, and workers.