- India urged US to resolve trade disputes through bilateral dialogue.
- India rejected USTR’s forced labor claims citing insufficient evidence.
- India questions basis for proposed 12.5% tariffs on imports.
India has urged the United States to resolve trade differences through bilateral negotiations and mutual dialogue instead of unilateral measures, asking the Office of the United States Trade Representative (USTR) to reconsider its proposal to impose an additional 12.5 per cent tariff.
During a public hearing, Brij Mohan Mishra, Joint Secretary in the Department of Commerce, said India believes the Section 301 investigation into forced labour contains several shortcomings and does not meet the legal standards required under the Trade Act.
India Rejects USTR’s Findings
Mishra said eliminating forced labour is both a legal obligation and an international commitment for India, adding that the country takes the issue seriously and adheres to international laws and principles.
He said India wanted to express its concerns over the USTR report and its findings.
According to Mishra, the USTR had not met the legal standards required under Section 301(d) of the Trade Act. He said merely stating that a country does not prohibit the import of products made with forced labour is not sufficient evidence and cannot, by itself, constitute an unfair trade practice under Section 301.
India Questions Basis For Proposed Tariffs
According to the written record of the July 8 hearing, later published on the USTR website, India argued that there was no clear basis for imposing additional tariffs on an entire country.
India also said the USTR had grouped 46 different economies into a single category despite each country having distinct circumstances.
India Disputes Section 301 Investigation
The USTR’s Section 301 investigation alleges that many countries lack effective enforcement measures to prevent the import of goods produced through forced labour.
India rejected the conclusion, saying the investigation relied on selected country examples and broad trade data without presenting concrete evidence against any specific country or industry.
According to India, the report assumes that products linked to forced labour are entering the United States from the countries identified, without providing evidence to support that conclusion.
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India also said there is no strong evidence to show that its policies are harming American industries or providing unfair advantages to Indian products.
India Calls For Bilateral Resolution
India urged the USTR to reconsider the proposed tariffs in view of what it described as shortcomings in the report.
It said trade disputes should be resolved through the framework of India-US bilateral trade negotiations rather than unilateral investigations and tariff measures.
India also said it remains open to constructive dialogue and consultations with the United States on any specific concerns.
India Rejects Claims On Rice Imports
Shreyans Gupta, First Secretary at the Indian Embassy in Washington, also made submissions on behalf of the Agricultural and Processed Food Products Export Development Authority (APEDA).
He objected to the USTR’s observation that rice produced in India using forced labour was being imported into the United States and harming American rice producers.
Gupta said India imports rice only in limited quantities to meet demand for specific varieties.
He added that the value of rice imported into India is less than three per cent of the value of Indian rice exported to the United States.
He also said India has strict regulations prohibiting the export of rice produced through forced labour and that only rice mills and processing units registered with the Ministry of Agriculture are permitted to export rice to the United States.
FICCI, CII Oppose Proposed Tariff
The Federation of Indian Chambers of Commerce and Industry (FICCI) also opposed the proposed additional tariff.
FICCI said the move would increase the economic burden not only on Indian exporters but also on American manufacturers, importers, retailers and ultimately consumers in the United States.
The industry body said additional tariffs would raise costs for companies that already comply with existing regulations and standards, and urged the USTR to reconsider the proposal in view of India’s legal framework, industry regulations and the strong supply chains linking the two countries.
The Confederation of Indian Industry (CII) also opposed the proposal, saying the additional 12.5 per cent tariff was not supported by available evidence and would defeat its intended purpose.
According to CII, the USTR report does not demonstrate that India’s policies impose any undue burden on US trade.
Background Of The USTR Investigation
The USTR launched two separate Section 301 investigations on March 11 and 12, 2026, covering issues related to forced labour and excess industrial capacity across 60 economies.
On June 3, 2026, it released its report proposing additional tariffs on imports from several countries.
Under the proposal, imports from Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan could face an additional 10 per cent tariff, while products from 54 other countries, including India and China, could be subject to an additional 12.5 per cent tariff.
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