On Friday, August 18, the US Trade Representative (USTR) initiated an investigation of China’s intellectual property practices pursuant to Section 301 of the Trade Act of 1974, as amended.

Section 301 is the principal statutory authority under which the United States may impose trade sanctions against foreign countries whose acts, policies and practices violate trade agreements, deny US rights or benefits under trade agreements, or are unjustifiable, unreasonable or discriminatory and burden or restrict US commerce.  Where the USTR makes an affirmative determination under Section 301, it may suspend or withdraw trade concessions, impose duties or other import restrictions, withdraw, limit or suspend benefits under the various trade preference programs, and negotiate agreements to eliminate or phase out the violation and/or provide compensation for trade distortion.

The USTR will accept written comments on the underlying Section 301 investigation through September 28, and a public hearing will be held on October 10.

Questions may be addressed to AWPA Counsels Fred Waite and Kim Young.