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1 1 (June 15, 2021)

handle is hein.crs/govedrk0001 and id is 1 raw text is: Section 301 of the Trade Act of 1974 Updated June 15, 2021 Section 301 of the Trade Act of 1974 (19 U.S.C. §2411) grants the Office of the United States Trade Representative (USTR) a range of responsibilities and authorities to investigate and take action to enforce U.S. rights under trade agreements and respond to certain foreign trade practices. Prior to the Trump Administration and since the conclusion of the Uruguay Round of multilateral trade negotiations in 1995, which established the World Trade Organization (WTO), the United States has used Section 301 authorities primarily to build cases and pursue dispute settlement at the WTO. However, former President Trump was more willing to act unilaterally under these authorities to promote what its Administration considered to be free, fair, and reciprocal trade. The recent use of Section 301 has been the subject of congressional and broader international debate. The Trump Administration attributed this shift in policy to its determination to close a large and persistent gap between U.S. and foreign government practices that it said disadvantaged or discriminated against U.S. firms. In addition, it justified many of its tariff actions-particularly those against China-by pointing to alleged weaknesses in WTO dispute settlement procedures and the inadequacy or nonexistence of WTO rules to address certain Chinese trade practices. It also cited the failure of past trade negotiations and agreements to enhance reciprocal market access for U.S. firms and workers. While the Biden Administration is reportedly reviewing the previous administration's trade policies, most analysts do not expect any immediate changes to Section 301 actions or to the tariff exclusions on U.S. imports from China. Overview of Section 301 Title III of the Trade Act of 1974 (Sections 301 through 310, 19 U.S.C. §§2411-2420), titled Relief from Unfair Trade Practices, is often collectively referred to as Section 301. Section 301 provides a statutory means by which the United States imposes trade sanctions on foreign countries that violate U.S. trade agreements or engage in acts that are unjustifiable or unreasonable and burden U.S. commerce. Prior to 1995, the United States used Section 301 extensively to pressure other countries to eliminate trade barriers and open their markets to U.S. exports. The creation of an enforceable dispute settlement mechanism in the WTO, strongly supported by the United States, significantly reduced U.S. use of Section 301. While the United States retains the flexibility to seek recourse for foreign unfair trade practices in the WTO or under Section 301, a determination to bypass WTO dispute settlement and impose retaliatory measures (if any) in response to a Section 301 investigation may be challenged at the WTO. Section 301 Investigations While the law does not limit the scope of investigations, it cites several types of foreign government conduct subject to Section 301 action, including (1) a violation that denies U.S. rights under a trade agreement, (2) an unjustifiable action that burdens or restricts U.S. commerce, and (3) an unreasonable or discriminatory action that burdens or restricts U.S. commerce. The statute defines commerce to include goods, services, and investment. Procedures for Section 301 Action Sections 302 through 309 describe the procedural requirements and limitations for Section 301 actions. Administration. Section 301 investigations are conducted by a Section 301 Committee-a subordinate, staff-level body of the USTR-led, interagency Trade Policy Staff Committee (TPSC). The Section 301 Committee reviews Section 301 petitions, conducts public hearings, and makes recommendations to the TPSC regarding potential actions under Section 301. The USTR then bases its final decision on the recommendations provided by the TPSC. Initiation. The USTR may initiate a Section 301 case as a result of a petition or can self-initiate a case. Any interested person may file a petition with the USTR requesting that the agency take action under Section 301. Within 45 days of the receipt, the USTR must review the allegations and determine whether to initiate an investigation. Section 301 also provides two means by which the USTR may initiate an investigation in the absence of a petition. It can investigate any matter, but only after consulting with appropriate stakeholders. In addition, the USTR is generally required to initiate a Section 301 investigation of any country-within 30 days-after identifying it as a Special 301 Priority Foreign Country. In its annual Special 301 report, the USTR identifies countries that do not provide adequate intellectual property rights (IPR) protection and enforcement. (Rules for IPR cases initiated through Special 301 differ somewhat from those that govern standard Section 301 investigations.) Consultations. Upon initiating an investigation, the USTR must request consultations with the targeted foreign government regarding the issues raised. If the investigation involves a trade agreement and a mutually acceptable resolution is not reached, the USTR must request formal dispute settlement proceedings under the governing trade agreement (WTO or potential U.S. free trade agreement). In the past, with regard to investigations that do not involve an agreement, the USTR has initiated investigations while simultaneously requesting consultations with the foreign government and seeking information and advice from appropriate trade advisory committees. If an investigation includes mixed issues, some of which are covered by an agreement and some of which are not, the USTR generally pursues consultations within the agreement framework and through bilateral negotiations. Determinations and Implementation. Following consultations, the USTR begins its investigation to determine if the alleged conduct is unfair or violates U.S. rights under trade agreements. If the USTR's determination is affirmative, it then decides what action, if any, to take ittps://Crsreports.cong ress.gt

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