New Delhi/Washington: The United States Trade Representative (USTR) has proposed trade action against 60 economies, including India, alleging that they have failed to impose and effectively enforce bans on the import of goods produced through forced labour.
In a statement, the USTR said it had determined under Section 301 of the US Trade Act of 1974 that the policies and practices of the identified economies are “unreasonable” and place a burden on or restrict US commerce, making them subject to action under American trade laws.
India is among 54 economies that the USTR claims have not implemented or effectively enforced prohibitions on imports linked to forced labour. The list also includes major US trading partners such as China, the United Kingdom, Australia, Japan, Bangladesh, Saudi Arabia, Singapore, Bahrain, Kuwait and the United Arab Emirates.
US Trade Representative Ambassador Jamieson Greer said the failure of key trading partners to address the importation of goods produced with forced labour creates an uneven global marketplace and disadvantages American workers and businesses.
According to the USTR, the absence of effective import restrictions on forced labour products undermines global efforts to eradicate labour exploitation, distorts competition by reducing production costs for non-compliant manufacturers and allows circumvention of existing trade restrictions.
As part of its proposed measures, the USTR suggested that economies which have already adopted, or committed to adopting, forced labour import bans could face an additional tariff of 10 per cent. Economies that have not taken such steps may be subjected to a higher tariff of 12.5 per cent.
The proposal comes at a significant time, with senior trade officials from India and the United States currently engaged in a three-day round of negotiations in New Delhi aimed at advancing a bilateral trade agreement.
The USTR has also proposed a separate framework for textile and apparel imports that would allow a specified volume of goods from selected economies to enter the US market at a lower Section 301 tariff rate.
The agency indicated that further trade measures could follow based on the outcome of its ongoing investigations into forced labour-related import practices.
