Nature of Section 301

08/12/2022 05:30 - 83 Views

Fundamentally, Section 301 proceedings involve political pressure and policy objectives more than law and facts. United States companies pursue Section 301 cases when they want the United States Government through the use of threatened sanctions - to help the company or industry achieve some objective in relation to foreign rivals. Not surprisingly, foreign countries have balked at this approach. Section 301 has therefore emerged as one of the most controversial and politically sensitive weapons in the arsenal of United States trade remedies.

The intensely political nature of what is commonly referred to as Section 301 emerged over time. Congress initially enacted it as part of the 1974 Trade Act. Originally intended to provide United States industries with a mechanism to enforce United States rights under international agreements, over the years Section 301 has been transformed by Congress from a narrow legal tool for raising issues under international agreements into a much broader policy weapon for United States industry to wield. Congress has expanded the reasons for invoking Section 301 and has intensified the political pressure on the Administration to act.

Some perceive Section 301 as being targeted at developed countries and areas such as the EU and Japan. Although there certainly have been Section 301 cases against developed countries, there have also been numerous cases against developing countries. These cases have involved a wide range of United States complaints against its trading partners.

As table 1 shows, a wide range of countries and a wide variety of practices have been challenged under Section 301.

Table 1. Developing country Section 301 cases since 1974, in chronological order

Country	Product/issue	Allegation
Guatemala	Cargo preference	Discriminatory shipping practice
China	Major home appliances	Confiscatory tariff levels
Brazil, Republic of Korea and China	Thrown silk	Preventing entry of imports
Argentina	Marine insurance	Requirement that marine insurance be placed with
Republic of Korea	Insurance Hides	Argentine firm
Argentina	Non-rubber footwear	Failure to issue a licence
Brazil	Steel wire rope	Export controls on hides Import restrictions
Republic of Korea	Soybean oil and meal	Subsidization of export of Korean steel wire rope
Brazil	Rice	Export and production subsidies and quantitative restrictions
Taiwan Province (China)	Air couriers	Subsidization of exports
Argentina	Films	Exclusive control over the alr transportation of commercial documents
Taiwan Province (China)	Informatics	Discrimination against foreign film distributors
Brazil	Insurance	Investment restrictions, subsidies, and import restrictions
Republic of Korea	Intellectual property rights	Restriction of the ability of United States insurers to provide insurance services
Republic of Korea	Soybeans and soybean	Lack of effective protection
Argentina	products	Differential in export taxes
Taiwan Province (China)	Customs valuation	Duty paying system to calculate customs duties
Taiwan Province (China)	Beer, wine and tobacco	Policies and practices regarding distribution
India	Almonds	Licensing requirements and steep tariffs
Brazil	Pharmaceuticals	Lack of process and patent protection
Republic of Korea	Cigarettes	Unreasonable denial of access
Republic of Korea	Beef	Restrictive licensing system on imports of all bovine meat
Republic of Korea	Wine	Unreasonable denial of access
Argentina	Pharmaceuticals	Denial of product patent protection
Brazil	Import licensing	Certain import restrictions
India	Investment	Trade-restricting measures on foreign investors
India	Insurance	Barriers to foreign insurance providers
Thailand	Copyright enforcement	Inadequate enforcement
Thailand	Pharmaceuticals	Denial of adequate and effective patent protection
India	Intellectual property protection	Dental of adequate and effective protection
China	Intellectual property protection	Denial of adequate and effective protection, equitable market access
Indonesia	Pencil slats	Enhancement of export to third-country markets
Brazil	Intellectual property rights	Denial of adequate and effective protection
Republic of Korea	Agricultural market access restrictions	Practices regarding importation
Colombia	Bananas	Practices regarding exportation of bananas
Pakistan	Pharmaceutical and agricultural chemicals	Denial of patents, and exclusive marketing rights
Turkey	Tax on box office revenues	Discriminatory treatment of United States films
India	Pharmaceuticals and agricultural chemicals	Denial of patents and exclusive marketing rights
Argentina	Apparel, textiles, footwear	Specific duties, statistical tax and labelling requirement
Indonesia	Promotion of motor vehicle sector	Grant of conditional tax and tariff benefits
Brazil	Trade and investment in auto sector	Export performance and domestic content requirements
Republic of Korea	Auto imports	Barriers to imports
Honduras	Intellectual property rights	Inadequate protection
Paraguay	Intellectual property laws and practices	Denial of adequate and effective protection
Mexico	High fructose corn syrup	Agreement between Merican sugar growers and bottlers