India Rejects US Trade Allegations and Seeks Termination of Investigations
US’ 301 probes: India denies allegations, seeks termination of both investigations
The Economic TimesImage: The Economic Times
India has denied allegations made by the US Trade Representative regarding excess structural capacity in sectors like petrochemicals and textiles. New Delhi seeks the termination of two investigations, arguing that they lack substantive evidence and do not meet legal requirements.
- 01India denies US allegations of excess structural capacity in key sectors.
- 02New Delhi argues that its trade surplus with the US is a macroeconomic phenomenon.
- 03India claims the US investigation lacks sufficient evidence.
- 04India requests the termination of two ongoing investigations by the US.
- 05The investigations are seen as unfairly targeting India's trade practices.
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India has formally rejected allegations from the US Trade Representative (USTR) concerning excess structural capacity in various sectors, including petrochemicals and textiles. The Indian government emphasized that its $42 billion bilateral trade surplus with the US in 2025 is a result of macroeconomic factors rather than structural issues within its industries. India argues that the USTR's focus on specific sectors does not prove the existence of excess capacity. Furthermore, India has requested the USTR to terminate two investigations, including one related to forced labor, stating that these probes do not meet the legal criteria for initiation under the Trade Act of 1974. India asserts that there is no evidence to support claims that forced labor provides an unfair competitive advantage to its exporters. In both cases, India is seeking a negative determination from the USTR to conclude the investigations.
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The outcome of these investigations could affect India's trade relations with the US and its exporters in key sectors.
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