US Opens Forced-Labour Trade Probe Against 60 Countries, Including India

New Delhi, Mar 14 (KNN) The Office of the United States Trade Representative (USTR) has launched investigations against 60 countries, including India, to determine whether they failed to effectively prevent the import of goods produced with forced labour.

The probes, initiated under Section 301(b) of the Trade Act of 1974, will examine whether the acts, policies or practices of these economies are unreasonable or discriminatory and burden US commerce.

In a statement, the USTR’s office said, “The investigations will determine whether acts, policies, and practices of each of these economies related to the failure to impose and effectively enforce a ban on the importation of goods produced with forced labor are unreasonable or discriminatory and burden or restrict US commerce.” 

Countries under investigation include Canada, China, Japan, South Korea, Switzerland, Pakistan and Bangladesh, among others.

The move comes a day after the US launched another Section 301 investigation into India, the European Union, China and 13 other economies over policies that may create ‘excess manufacturing capacity’ for exports that could harm US domestic industry. 

Other economies in that probe include Singapore, Norway, Indonesia, Malaysia, Cambodia, Thailand, Vietnam, Taiwan, Mexico and Japan.

Both investigations follow a ruling by the Supreme Court of the United States on February 20 that invalidated earlier additional tariffs imposed on trading partners.

After the ruling, the US imposed a 10 per cent surcharge on all imports under Section 122 of the Trade Act, a temporary measure allowed for up to 150 days with a maximum cap of 15 per cent to address balance-of-payments deficits.

By using Section 301 investigations, the US may seek to extend or reintroduce additional tariffs, strengthening its leverage in trade negotiations to secure duty-free access for American exports and commitments on investment and purchases from partner countries.

(KNN Bureau)