NEW DELHI: The Office of the United States Trade Representative (USTR) has initiated investigations into the acts, policies and practices of several major economies—including India—over concerns related to structural excess capacity and production in manufacturing sectors.
In a notice issued under Section 301 of the Trade Act of 1974, the USTR said the probe will examine whether such practices are unreasonable or discriminatory and whether they burden or restrict US commerce.
The investigations will cover economies that appear to exhibit structural excess capacity and production, including China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan and India.
According to the USTR, several key trading partners have developed production capacity that is not aligned with domestic or global demand. This imbalance can lead to overproduction, persistent trade surpluses and significant underutilised or unused capacity in manufacturing sectors.
The agency said such conditions could distort global markets and affect the competitiveness of US manufacturers.
As part of the process, the inter-agency Section 301 Committee will seek public comments and hold hearings to gather views from stakeholders, including industry groups, companies and trade experts. These consultations will help determine whether the practices under examination warrant action under US trade laws.
Section 301 of the Trade Act empowers the USTR to investigate and respond to foreign government practices that may harm US commerce. If the investigation finds violations or unfair trade practices, the US administration may consider retaliatory measures, including tariffs or other trade restrictions.
The move comes amid growing concerns in Washington over global manufacturing imbalances and efforts to strengthen domestic industrial capacity.