India Bans Import of Goods Produced Using Forced Labour Amid US Probe
On June 3, the US proposed to impose 12.5 per cent tariffs on 54 countries, including India, for allegedly failing to prohibit the import of goods produced with forced labour. Six countries, Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan, would face an additional 10 per cent import duty
New Delhi: Amid a US investigation into forced labour practices in 60 countries, including India, the government has banned import of goods produced through use of forced labour amid US probe, amending the foreign trade policy. The move comes at a time when India is engaged with the US on the matter as both sides are negotiating a bilateral trade agreement (BTA). The Section 301 investigations by the US Trade Representative (USTR), however, raises concerns related to forced labour. The USTR has alleged that these countries have failed to enforce import bans on goods made with forced labour.
Amending the Foreign Trade Policy (FTP) 2023, the directorate general of foreign trade (DGFT) has inserted a paragraph that reads — the import of goods produced or manufactured, wholly or in part, through the use of forced labour is prohibited, according to a gazette notification dated July 13. “The provisions of the notification shall come into effect after the expiry of 30 days from the date of its publication in the official gazette,” the DGFT stated.
On June 3, the US proposed to impose 12.5 per cent tariffs on 54 countries, including India, for allegedly failing to prohibit the import of goods produced with forced labour. Six countries, Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan, would face an additional 10 per cent import duty.
Commenting on the move, think-tank GTRI also said the order establishes a legal framework rather than an immediate import ban. “Its effectiveness will depend on how the government conducts investigations, the evidence required to establish forced labour, and the products it ultimately targets,” GTRI founder Ajay Srivastava said, adding that India’s notification signals to strengthen its domestic legal framework in line with international standards, a step that could strengthen its position in future trade negotiations and market-access discussions.
Srivastava further said that the US authorities consider products such as cotton, textiles, solar-panel polysilicon, seafood, metals, batteries and electronics vulnerable to forced-labour risks, particularly when linked to China's Xinjiang region. “Yet the US and the EU continue to import many such products from China, underscoring the challenges of enforcing forced-labour rules,” he added.
According to the DGFT notification, the central government can issue a notification at any time to ban the import of specific goods if it finds, based on an inquiry or any other relevant evidence, that those goods have been produced using forced labour. The procedure for conducting an enquiry by the DGFT into the use of forced labour in the production of such goods will be as prescribed in the handbook of procedures, 2023.
The DGFT has also added a new para under Chapter 11 (definition) of the FTP, 2023, under which ‘Forced Labour’ means all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily, as defined under the ILO Forced Labour Convention, 1930 (No. 29).
