Why is it in the news?
The United States launched a Section 301 investigation into India and other trading partners.
The probe targets alleged unfair trade practices and structural excess capacity.
Category: IR
Important Points:
● The probe is conducted under Section 301 of the US Trade Act, 1974.
● It allows the US to investigate unfair trade practices affecting its commerce.
● The investigation targets 16 countries including India.
● It focuses on structural excess capacity in sectors like solar modules, petrochemicals and steel.
● India has a bilateral trade surplus of about USD 58 billion with the US.
● The US may impose tariffs, import restrictions or suspend trade concessions if violations are found.
● In 2018, the US imposed tariffs up to 25% on Chinese imports under Section 301.
● The legality of Section 301 has been debated at the WTO but key provisions were upheld.
● Policies like subsidies, state support and currency practices are examined under the probe