India rejects USTR Section 301 probes on excess capacity and forced labour, urges ending investigations, says trade surplus is macroeconomic and denies any unfair advantage2 Min Read
India has refuted allegations of excess capacity and forced labour raised in probes launched by the US Trade Representative (USTR) under Section 301 of the Trade Act of 1974.The probes cite excess capacity (by 16 economies, including India) and forced labour (by 60 economies, including India) as detrimental to US trade interests. The Section 301 probe on excess structural capacity and production covers multiple countries, including India, across sectors such as petrochemicals and textiles.Urging the USTR to make a “negative determination and terminate the investigation forthwith,” India said that since both nations have initiated negotiations for a Bilateral Trade Agreement (BTA), trade concerns should be addressed within that framework rather than through unilateral measures.It added that India remains willing to engage constructively with the United States in the ongoing investigation, including consultations, describing the $42 billion trade surplus with the US in 2025 as a “macroeconomic phenomenon” and a “product of a concatenation of circumstances.”The response noted that India has a “significantly smaller trade share with the US” compared to other trading partners and therefore cannot be seen as “playing a role in widening the US trade deficit.”It added that the USTR’s selective focus on sectors where India has a global trade surplus does not establish “structural excess capacity.” The reply said there is no cogent rationale or prima facie evidence to substantiate claims that India’s major industries have such capacity leading to a trade surplus with the US, and argued that the probe does not meet the requirements under Sections 301 and 302 of the Trade Act of 1974.On the forced labour allegations, India said the probe fails to meet the legal threshold for initiation, adding that the notice assumes forced labour automatically gives Indian exporters a competitive advantage over US industry and workers.The response stated there is no evidence that India’s exports confer any artificial advantage or burden or restrict US commerce.
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