CURRENT AFFAIRS | 28 MAY 2026
United States Trade Representative Jamieson Greer told reporters on 27 May 2026 that he expects to meet Union Commerce and Industry Minister Piyush Goyal “soon” to finalise the framework of an India-US Bilateral Trade Agreement (BTA). The development comes as Washington is set to roll out a new tariff architecture next month – replacing the reciprocal tariff regime which the US Supreme Court declared illegal in February 2026 – and is widely expected to lean on the Section 301 investigation route launched in March 2026 against India and dozens of other countries.
Constitutional & Statutory Framework
- Foreign Trade (Development and Regulation) Act, 1992: India’s domestic statute under which the Centre frames Foreign Trade Policy and the DGFT operates.
- Customs Tariff Act, 1975 – Sections 9, 9A and 9B: Statutory mirror of WTO Agreements on Countervailing Duties, Anti-Dumping and Safeguards.
- GATT 1994 – Article I: Most-Favoured-Nation (MFN) rule – any trade advantage must be unconditionally extended to all WTO Members.
- GATT 1994 – Article XXIV: Permits Customs Unions and Free Trade Areas as exceptions to MFN, provided “substantially all the trade” is liberalised.
- Section 301 of the US Trade Act, 1974: USTR’s statutory power to investigate and respond to unfair foreign practices through tariffs or other duties.
- Trade Promotion Authority (TPA): US Congressional ‘fast-track’ authority for Presidential trade agreements – last lapsed in 2021.
The CLAT Angle – Why This Matters
India-US trade is the single largest bilateral relationship in India’s external-economic portfolio – $4.17 billion in Feb 2026 FPI outflow and $2.62 billion in May 2026 are partly attributable to the tariff flux. For CLAT, three IR threads converge here:
- WTO law – any BTA must navigate MFN (Article I) via the FTA exception (Article XXIV). India + US together account for under “substantially all the trade” only if the BTA covers goods, services and tariff lines comprehensively.
- US tariff legality – the Feb 2026 US SC verdict striking down reciprocal tariffs under IEEPA effectively shifted the executive’s tool of choice to Section 301, which requires an investigation and a finding of “unjustifiable, unreasonable or discriminatory” foreign practices.
- India’s domestic remedy – any counter-tariff or safeguard duty India levies must follow Sections 9/9A/9B of the Customs Tariff Act + DGTR investigation, mirroring WTO disciplines.
Key Facts – Memorize These
| Statement | USTR Greer expects to meet Piyush Goyal “soon” |
| Date | 27 May 2026 |
| Goal | Finalise framework of India-US Bilateral Trade Agreement (BTA) |
| Trigger | US SC (Feb 2026) struck down reciprocal tariffs as illegal under IEEPA |
| New tool | Section 301 investigation (US Trade Act 1974) launched March 2026 |
| Next US visit | 1-4 June 2026 to India |
| FPI outflow | $4.17 bn (Feb 2026) + $2.62 bn (May 2026) |
| WTO MC | MC14 (Yaounde, Cameroon) – Goyal-Greer sidelines meeting |
| India statute | FT (D&R) Act 1992; Customs Tariff Act 1975 (Sec 9/9A/9B) |
Memory Hook
“301 not Reciprocal” – the new US tariff vehicle after Feb 2026 is Section 301, not reciprocal tariffs. India counters using Sections 9/9A/9B of the Customs Tariff Act.
“Article I bars discrimination; Article XXIV allows FTAs” – the GATT MFN-then-exception pair every BTA must satisfy.
For aspirants, this story is a tutorial in the modern grammar of trade: domestic constitutionality (US SC v IEEPA), statutory plumbing (Section 301), multilateral discipline (GATT XXIV), and bilateral negotiation (BTA framework). Goyal is also in Washington at the Council on Foreign Relations to anchor parallel talks with the US Treasury.
Practice Quiz — 10 CLAT-Style Questions
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