As India and the United States are trying to finalise a trade deal, New Delhi on Wednesday said that it remains engaged with Washington on the matter as part of the Section 301 proceedings. The statements comes as the United States Trade Representative (USTR) has concluded investigations against 60 economies, including India, and proposed 12.5 per cent as the rate of additional duty for failures related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour. “India is also parallelly engaged with the US for finalisation of a framework agreement as was announced on 2nd February 2026 and in accordance with the joint statement released on 7th February 2026,” the Ministry of Commerce & Industry said in a statement.
What is Section 301?
Section 301 of the Trade Act of 1974 is one of the most powerful trade enforcement tools available to the United States government. It has been designed to address unfair foreign acts, policies, or practices affecting US commerce. It allows the Office of the United States Trade Representative (USTR) to investigate foreign governments.
When a foreign nation violates a trade agreement or engages in practices that harm American commercial interests (such as intellectual property theft or forced technology transfers), Section 301 allows the US to take retaliatory actions.
USTR launched 60 investigation
According to the information available, the USTR, on March 12, 2026, initiated 60 investigations related to the failure of various economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
Following the investigation, the USTR found that all 60 economies failed both to impose a forced labour import prohibition and to effectively enforce such a prohibition.
Why does it matter for India?
The development is significant, as it comes at a time when India and the US are negotiating a proposed bilateral trade agreement. Any additional tariffs on India will make its goods more expensive, reducing its competitiveness with other nations.
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