Geneva: India joined China and several other countries on Friday at the World Trade Organization (WTO) to warn the US about its “unilateral" trade measures imposed under Section 301 of the US Trade Act of 1974, saying it risks provoking “a full-blown trade war", people familiar with the development said.

On Friday, the office of the US Trade Representative (USTR) placed India on the Special 301 priority watch list on grounds that New Delhi failed to provide “sufficient measurable improvements, particularly with respect to patents, copyrights, trade secrets, and enforcement." India’s administration of intellectual property provisions also raised “new issues that have negatively affected US (IP) right holders over the past year (last 12 months)," the USTR said.

At a dispute settlement body meeting, China called all members “to join with each other to take actions against the unilateralism and protectionism manifested in the US conduct, so that what happened time after time in the past will not repeat itself in the future."

The continued unilateral measures imposed by the US under its Section 301 provisions posed a systemic threat to the global trading system.

“The US has initiated 125 investigations under Section 301 of the Trade Act of 1974 and retaliated in 17 instances," China said.

“Twenty-seven years after the establishment of the WTO (in 1995), Section 301 of the Trade Act of 1974 continues to serve as the tool of the US to take unilateral actions against other members," China said. A WTO dispute settlement panel in 2000 clearly pronounced that any actions taken under Section 301 must be based on the “rulings and recommendations" issued by the DSB (dispute settlement body).

“What certainly has happened today," according to China, “is that the unilateral nature of Section 301 is revised and is now challenging the foundation of the rules-based multilateral trading system." China launched a trade dispute against the US’ Section 301 last month at the WTO.

Without naming the US, India said “adoption of unilateral measures by members will erode our long-cherished principles of predictability and non-discrimination and can lead to a real risk of a full-blown trade war."

“As a firm supporter of the rules-based multilateral trading system," India said, “gaps, imperfections and unfair elements in trade rules need to be discussed and reformed in the WTO."

“Unilateral measures, on the other hand, could stop the fragile global economic recovery in its tracks, with consequences for jobs, GDP growth and development that would harm us all," New Delhi argued.

Several other countries—Pakistan, Russia, Hong Kong, Taipei, the European Union (EU), Brazil and Norway—cautioned the US about the dangers unilateral actions posed to the global trading system. Taipei and the EU said while they share the US’s concern about China’s alleged violations of intellectual property rights (IPRs), the best way to address the matter was through the multilateral trading system.

The US said it had already catalogued the Chinese abuse of IPRs in its trade dispute complaint filed last month. “Instead of addressing its damaging and discriminatory policies, China accuses the US of “unilateralism," Washington maintained.

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