- The USTR proposed a 12.5% tariff on India and 59 other economies for forced labour use.
- The move cites failure to enforce rules against importing goods made with forced labour.
- The action is based on Section 301 of the Trade Act of 1974 targeting unfair trade practices.
The United States Trade Representative (USTR) has proposed to impose an additional 12.5% tariff on India and 59 other economies over allegations of using forced labour to produce imported goods.
In a statement issued on June 2, USTR claimed that a total of 60 economies have failed to enforce rules against imported goods made via forced labour.
"Under Section 301 of the Trade Act of 1974 that the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens or restricts U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act," the statement read.
Which economies have been impacted?
Algeria; Angola; Argentina; Australia; the Bahamas; Bahrain; Bangladesh; Brazil; Cambodia; Chile; China, People's Republic of; Colombia; Costa Rica; Dominican Republic; Egypt; El Salvador; Guatemala; Guyana; Honduras; Hong Kong, China; India; Iraq; Israel; Japan; Jordan; Kazakhstan; Kuwait; Libya; Malaysia; Morocco; New Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines; Qatar; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Sri Lanka; Switzerland; Taiwan; Thailand; Trinidad and Tobago; Türkiye; United Arab Emirates; United Kingdom; Uruguay; Venezuela; Vietnam, Canada; Ecuador, the European Union; Indonesia; Mexico; and Pakistan.
Speaking over forced labour allegations on trading partners, Amabassador Jamieson Greer said, “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field."
He added, “We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally.”
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