India-US trade deal: Union Commerce and Industry Minister Piyush Goyal has expressed confidence that India and the United States would successfully conclude a bilateral trade agreement, even as New Delhi closely monitors developments surrounding Washington’s and potential tariff actions.
Speaking at the Financial Express India’s Best Banks Awards in Mumbai, said US Trade Representative Jamieson Greer is expected to visit India within the next two weeks for further negotiations on the proposed trade deal.
“So this (Section 301 investigation) is really a mechanism being created, given their (the US) constraints that the Congress is not going to support any of their actions (on reciprocal tariffs)… They are trying to create a competitive edge for India. So I don’t think (we need to) worry about Section 301, we’ll tackle it, it’s our responsibility,” Goyal said.
What is US Section 301?
administration has initiated fresh investigations into alleged “unfair trade practices” by 16 major trading partners, including India, , and Bangladesh. The move aims to reapply tariff pressure following a US Supreme Court ruling last month that declared previous levies illegal.
These inquiries are being carried out under Section 301 of the Trade Act of 1974. The law empowers the US Trade Representative to enforce tariffs or other punitive measures against nations found to be using unfair trade practices.
US Trade Representative had earlier indicated that the investigations could result in new tariffs on China, the European Union, India, Japan, South Korea, and Mexico by the coming summer.
“The (Section 301) investigation is directed at a particular country,” Goyal said at the Financial Express event on 7 June, without naming China.
The Minister said India was keenly awaiting what kind of tariffs would ultimately be imposed under . “We will protect India’s interests and I am very confident that the (India-US trade) deal will come through. It will be a good deal,” he said.
Goyal’s remarks come days after Indian and US negotiators concluded another round of talks in New Delhi aimed at narrowing differences on the interim trade pact. Both sides have previously indicated that negotiations are in the final leg, with Goyal earlier suggesting that an agreement could be reached by July.
According to the Office of the , Section 301 of the Trade Act of 1974 is intended to tackle unfair foreign practices that impact US trade. The Section allows the US to respond to foreign government actions that are unjustifiable, unreasonable, or discriminatory and that burden or restrict US commerce. Under Section 302(b) of the Act, the US Trade Representative has the authority to initiate a Section 301 investigation on their own.
(With agency inputs)
