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Section 301 Action Background
7.
Section 301 action is retaliatory action against foreign practices found to be jeopardizing US trade. Under Section 301 of the US Trade Act of 1974, the US Administration is authorized to investigate foreign practices which are unjustifiable, unreasonable or discriminatory and which burden or restrict US commerce, and to
retaliate against the offending country's exports to the US unless a satisfactory resolution to the trade dispute is reached within statutory deadlines.
Present Position
8.
In March 1991, the United States Trade Representative (USTR) published its annual National Trade Estimates Reports. These contained a long list of Chinese trade barriers such as high tariffs, import bans and quotas and technical barriers to trade. Consultations on market access were subsequently held with the Chinese in June and August. On 30 September, China handed over a formal response to the US on concrete measures to lower its market access barriers. However, the US considered the Chinese response unsatisfactory and on 10 October the USTR formally announced its decision to initiate a Section 301 investigation of China's market access barriers to US imports. The USTR is required to complete investigation within one year and to determine whether actionable practices exist, and what retaliatory action is to
action is to be taken within 30
be taken within 30 days after the determination, i.e. not later than 10 November 1992. Meanwhile, the USTR continues to hold consultations with China with a view to reducing the latter's trade barriers, but the consultations were temporarily stalled in the past few months as attention was focused on the Special 301 action.
Special 301 Action
Background
9.
Special 301 provisions of the 1988 Omnibus Trade and Competitiveness Acts deal with intellectual property protection. Under the provisions, the USTR is required to identify countries who have problems in protecting intellectual property, and within 30 days of identification, initiate a Special Section 301 investigation. The USTR must decide, within six months after initiation, whether the country's practices are actionable and what retaliatory action, if any, to take.
Present Position
10.
On 26 April 1991, the USTR identified China, together with India and Thailand, as priority foreign countries where problems with intellectual property protection are particularly acute. On 26 May, the USTR initiated an investigation against China.
No comments yet.
Private notes are available after approval.