UPSC Prelims Practice Questions — U.S. begins probing India’s ‘discriminatory trade policies’

Q1. How many economies were named by the U.S. Trade Representative in the Section 301(b) investigation on 'structural excess capacity and production in manufacturing sectors' initiated in March 2026?

  • A. 12
  • B. 14
  • C. 16
  • D. 18

Q2. With reference to the March 2026 Section 301(b) action against India and earlier U.S. trade measures, consider the following statements: 1. Unlike the 2019 withdrawal of Generalized System of Preferences (GSP) benefits for India, the 2026 Section 301(b) action was launched simultaneously against multiple economies. 2. The legal basis of the 2026 probe is the same statute under which earlier Section 301 tariffs were imposed on China from 2018 onwards. 3. The 2026 investigation is being conducted by the U.S. Department of Commerce, whereas the 2019 GSP review was conducted by the U.S. Trade Representative. Which of the statements given above is/are correct?

  1. Unlike the 2019 withdrawal of Generalized System of Preferences (GSP) benefits for India, the 2026 Section 301(b) action was launched simultaneously against multiple economies.
  2. The legal basis of the 2026 probe is the same statute under which earlier Section 301 tariffs were imposed on China from 2018 onwards.
  3. The 2026 investigation is being conducted by the U.S. Department of Commerce, whereas the 2019 GSP review was conducted by the U.S. Trade Representative.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. Which one of the following U.S. agencies is empowered to initiate and conduct investigations under Section 301 of the Trade Act of 1974, such as the March 2026 probe naming India?

  • A. U.S. Department of Commerce
  • B. Office of the United States Trade Representative (USTR)
  • C. United States International Trade Commission (USITC)
  • D. Bureau of Industry and Security

Q4. In the context of the March 2026 U.S. action against India, the term 'Section 301' refers to a provision of which one of the following?

  • A. A provision of the U.S. Trade Act of 1974 that authorises the USTR to investigate and respond to foreign acts, policies or practices that are unjustifiable, unreasonable or discriminatory and burden U.S. commerce
  • B. A provision of the WTO Dispute Settlement Understanding governing retaliation against non-compliant members
  • C. A section of the U.S. Tariff Act of 1930 dealing with anti-dumping and countervailing duties
  • D. A safeguard provision under Article XIX of the GATT 1994 administered through the WTO Agreement on Safeguards
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