Context:

The office of the United States Trade Representative (USTR) is initiating investigations into taxes adopted or under consideration by 10 nations, including India, on revenues of American digital service companies like Netfl ix, Airbnb, Uber, Linked In, and Spotify.

About Section 301 Report

• The Special 301 Report is prepared annually by the Office of the United States Trade Representative (USTR).
• The USTR inquiry is under the US Trade Act of 1974 and Section 301 of this law, hence referred to as ‘301 investigations’.
• The US law mandates consultations with trading partners as and when a Section 301 investigation is initiated.
• The Section 301 provision gives the USTR “broad authority” to investigate and respond to a foreign country’s action which may be “unfair” or “discriminatory” as well as negatively affect US commerce.
• Adopted in 1974, it allows the US President to impose tariffs or other curbs on foreign nations.
• India will also be accorded an opportunity to negotiate with the US and prevent the imposition of tariffs by reaching a comprehensive outcome, one the line of similar negotiations that are currently underway with France.

United States Trade Representative (USTR)

Founded in 1962, the Office of the United States Trade Representative (USTR) has lead responsibility for developing and coordinating U.S. international trade, commodity, and direct investment policy.