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India rejects US investigations into trade practices, policies

16 Apr 2026

In March, the US began investigating trade practices of 16 economies, including India, China, Japan, the EU, and forced labour related reviews across 60 economies.

India has firmly rejected the United States’ Section 301 investigations and called for their termination.


In its submission to the US Trade Representative (USTR), India argued that the probe is based on broad macroeconomic indicators rather than any specific act, policy, or practice that could be deemed “unreasonable or discriminatory” under the Trade Act of 1974.


India has also challenged a second Section 301 investigation related to alleged inaction on forced labour, again asserting that the probe does not meet legal requirements for initiation.


Section 301 of the US Trade Act of 1974, one of Washington’s most powerful trade‑enforcement tools, allows the US Trade Representative (USTR) to investigate whether another country is engaging in:

  • Unfair trade practices

  • Discriminatory policies

  • Actions that burden or restrict US commerce


If the USTR concludes that such practices exist, the US can impose unilateral trade measures, including tariffs other restrictions, without waiting for WTO approval.

 

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