Section 301
Encyclopedia
Section 301 of the U.S. Trade Act of 1974
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§ 2411) authorizes the President to take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce. Section 301 cases can be self-initiated by the United States Trade Representative (USTR) or as the result of a petition filed by a firm or industry group. If USTR initiates a Section 301 investigation, it must seek to negotiate a settlement with the foreign country in the form of compensation or elimination of the trade barrier. For cases involving trade agreements, the USTR is required to request formal dispute proceedings as provided by the trade agreements.
Section 301 authorizes the President to take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce. The law does not require that the U.S. government wait until it receives authorization from the World Trade Organization
(WTO) to take enforcement actions, but the U.S. has committed itself to pursuing the resolution of disputes under WTO agreements through the WTO dispute settlement mechanism, which has its own timetable.
As enacted, Super 301 required the USTR for 1989 and 1990 to issue a report on its trade priorities and to identify priority foreign countries that practiced unfair trade and priority practices that had the greatest effect on restricting U.S. exports. The USTR then would initiate a Section 301 investigation against the priority countries to obtain elimination of the practices that impeded U.S. exports, in the expectation that doing so would substantially expand U.S. exports.
If USTR initiates a Section 301 investigation, it must seek to negotiate a settlement with foreign country in the form of compensation or elimination of the trade barrier. For cases involving trade agreements, the USTR is required to request formal dispute proceedings as provided by the trade agreements.
However, President Clinton issued an executive order (EO 12901) reactivating Super 301 for two years (1994 and 1995)
The Super 301 process was again extended through 1997 by EO 12973 (September 1995), but was not in operation in 1998.
On March 31, 1999, Super 301 again was re-instated and revised by EO 13116. It required the USTR by April 30 to issue its Super 301 report on priority foreign trade practices and to initiate section 301 cases against such practices if agreement is not reached after 90 days. Neither the USTR’s April 1999 or April 2000 Super 301 report identified any priority foreign trade practices under Super 301, but USTR did announce that it would initiate Section 301 cases against trade practices in several countries.
In its April 2001 Super 301 report, USTR did not make any designations under Super 301, but did announce that consultations (the first stage in WTO dispute settlement) had been requested with Mexico on measures affecting live swine imports, with Belgium on rice import restrictions, and with the European Union on import surcharges on corn gluten feed.
In a January 2002 letter report to the Senate Finance Committee on activities under Section 301, the USTR did not identify any priority foreign trade practices under Super 301, although it did report on other activities undertaken under Section 301-310 of the Trade Act of 1974
.
as contrary to the WTO Agreement, but the challenge was rejected. http://www.sice.oas.org/DISPUTE/wto/tract41e.asp#CONCLUSIONS
The U.S. Trade Representative also performs a "Special" 301 report on intellectual property in many nations. (http://www.ustr.gov/Document_Library/Reports_Publications/2006/2006_Special_301_Review/Section_Index.html
Trade Act of 1974
The Trade Act of 1974 was passed to help industry in the United States become more competitive or phase workers into other industries or occupations.-Fast track authority:...
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United States Code
The Code of Laws of the United States of America is a compilation and codification of the general and permanent federal laws of the United States...
§ 2411) authorizes the President to take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce. Section 301 cases can be self-initiated by the United States Trade Representative (USTR) or as the result of a petition filed by a firm or industry group. If USTR initiates a Section 301 investigation, it must seek to negotiate a settlement with the foreign country in the form of compensation or elimination of the trade barrier. For cases involving trade agreements, the USTR is required to request formal dispute proceedings as provided by the trade agreements.
Section 301 authorizes the President to take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce. The law does not require that the U.S. government wait until it receives authorization from the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
(WTO) to take enforcement actions, but the U.S. has committed itself to pursuing the resolution of disputes under WTO agreements through the WTO dispute settlement mechanism, which has its own timetable.
Initiated by USTR or petition
Section 301 cases can be self-initiated by the United States Trade Representative (USTR) or as the result of a petition filed by a firm or industry group.As enacted, Super 301 required the USTR for 1989 and 1990 to issue a report on its trade priorities and to identify priority foreign countries that practiced unfair trade and priority practices that had the greatest effect on restricting U.S. exports. The USTR then would initiate a Section 301 investigation against the priority countries to obtain elimination of the practices that impeded U.S. exports, in the expectation that doing so would substantially expand U.S. exports.
If USTR initiates a Section 301 investigation, it must seek to negotiate a settlement with foreign country in the form of compensation or elimination of the trade barrier. For cases involving trade agreements, the USTR is required to request formal dispute proceedings as provided by the trade agreements.
Timeline
The original Super 301 provisions expired in 1990.However, President Clinton issued an executive order (EO 12901) reactivating Super 301 for two years (1994 and 1995)
The Super 301 process was again extended through 1997 by EO 12973 (September 1995), but was not in operation in 1998.
On March 31, 1999, Super 301 again was re-instated and revised by EO 13116. It required the USTR by April 30 to issue its Super 301 report on priority foreign trade practices and to initiate section 301 cases against such practices if agreement is not reached after 90 days. Neither the USTR’s April 1999 or April 2000 Super 301 report identified any priority foreign trade practices under Super 301, but USTR did announce that it would initiate Section 301 cases against trade practices in several countries.
In its April 2001 Super 301 report, USTR did not make any designations under Super 301, but did announce that consultations (the first stage in WTO dispute settlement) had been requested with Mexico on measures affecting live swine imports, with Belgium on rice import restrictions, and with the European Union on import surcharges on corn gluten feed.
In a January 2002 letter report to the Senate Finance Committee on activities under Section 301, the USTR did not identify any priority foreign trade practices under Super 301, although it did report on other activities undertaken under Section 301-310 of the Trade Act of 1974
Trade Act of 1974
The Trade Act of 1974 was passed to help industry in the United States become more competitive or phase workers into other industries or occupations.-Fast track authority:...
.
Challenged
In the 1990s, Sections 301-310 of the Trade Act were challenged by a number of Members of the World Trade OrganizationWorld Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
as contrary to the WTO Agreement, but the challenge was rejected. http://www.sice.oas.org/DISPUTE/wto/tract41e.asp#CONCLUSIONS
External links
A list of investigations to date is available on the USTR site http://www.ustr.gov/assets/Trade_Agreements/Monitoring_Enforcement/asset_upload_file985_6885.pdfThe U.S. Trade Representative also performs a "Special" 301 report on intellectual property in many nations. (http://www.ustr.gov/Document_Library/Reports_Publications/2006/2006_Special_301_Review/Section_Index.html