US Proposes Fresh Tariffs on India Over Forced Labour Rules
The list includes Australia, China, India, Israel, Japan, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Turkiye, UAE and UK
Washington DC: The United States on Tuesday (local time) proposed a fresh round of tariffs, including an additional duty of 10 per cent and 12.5 per cent on imports from key global economies, claiming investigations found goods from 60 countries were being produced using forced labour.
The details were announced by the US Office of the Trade Representative (USTR) in a statement.
The USTR identified 54 economies that it said had failed to impose and effectively enforce prohibitions on the import of goods produced through forced labour. The list includes Australia, China, India, Israel, Japan, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Turkiye, the UAE and the United Kingdom.
According to the proposal, economies that already have some form of forced labour import prohibition, or have committed to implementing such measures through trade agreements, could face an additional tariff of 10 per cent. Other economies may be subjected to a 12.5 per cent additional duty.
The proposed action also includes a textile mechanism that would allow a specified volume of apparel and textile imports from certain economies to enter the US at a reduced Section 301 tariff rate.
The USTR said the action falls under Section 301 of the Trade Act of 1974, which allows the US to take measures against foreign acts, policies or practices deemed unreasonable or burdensome to American commerce.
As part of the move, the USTR has invited public comments on the proposed tariffs.
"For economies that impose a forced labour import prohibition, that have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or economies that have imposed a partial regime with the effect of preventing the importation of certain forced labour goods, the U.S. Trade Representative proposes 10% as the rate of additional duties. For all other economies, the U.S. Trade Representative proposes 12.5% as the rate of additional duty," the statement said.
The USTR also flagged six economies, including the European Union, Pakistan and Canada, for allegedly failing to effectively enforce prohibitions on the import of goods produced with forced labour.
"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," said Jamieson Greer.
The proposed tariffs come as Indian negotiators prepare for talks with a visiting US delegation aimed at finalising a bilateral trade agreement (BTA).
Sources told ANI that securing preferential market access and obtaining relief from US Section 301 investigations will be key priorities for India during the negotiations.
The talks, scheduled from June 1 to June 4, are being led by US Chief Negotiator Brendan Lynch and India's Additional Secretary Darpan Jain.
According to the Ministry of Commerce, the discussions will focus on finalising details of an interim trade pact and advancing negotiations on market access, non-tariff barriers, customs and trade facilitation, investment promotion and economic security cooperation.
