US proposes 12.5% additional tariff on India, 53 other nations over forced labour import concerns

Washington: The Office of the US Trade Representative (USTR) has proposed imposing an additional 12.5 per cent tariff on imports from India and 53 other countries, alleging that they have failed to prohibit the import of goods produced using forced labour.

The proposal follows investigations into 60 economies over what the USTR described as inadequate measures to ban and enforce restrictions on imports linked to forced labour.

US Trade Representative Jamieson Greer said the failure of key trading partners to address the issue was unfair to American workers.

"The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field," Greer said in a statement.

India has rejected the allegations and urged the US to terminate the investigation, arguing that such concerns should be addressed through ongoing bilateral trade negotiations.

According to the USTR, 54 countries, including India, China, Japan, Brazil, Australia, the UK and Saudi Arabia, have failed to impose and effectively enforce prohibitions on the import of goods made with forced labour.

The agency said six economies, namely Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, have existing prohibitions in place but have failed to enforce them effectively.

Under the proposal, economies that already prohibit forced labour imports, have committed to doing so through an Agreement on Reciprocal Trade, or maintain a partial regime restricting certain forced labour goods, would face an additional tariff of 10 per cent.

All other economies, including India, would be subject to an additional 12.5 per cent duty.

The USTR also proposed a separate textile mechanism that would allow a specified volume of apparel and textile imports from certain economies to enter the US at a reduced tariff rate.

Interested parties have been invited to submit requests to testify before June 22 and provide written comments by July 6. Public hearings on the proposed measures are scheduled for July 7.

Greer said that while some trading partners had taken initial steps to curb imports linked to forced labour, more needed to be done to ensure that global trade does not encourage or perpetuate such practices.