US proposes up to 12.5% tariffs on India, 59 countries for alleged failure to curb forced labour

The United States Trade Representative on Tuesday proposed additional tariffs of 10% or 12.5% on imports from 60 economies, including India, citing their alleged failure to effectively prohibit the trade of goods produced with forced labour.

The agency said that it had determined that the acts, policies and practices of the 60 economies were “unreasonable” and burdened or restricted US commerce, making them actionable under Section 301 of the Trade Act of 1974.

The proposal would impose an additional tariff of 10% on imports from economies that have taken some measures against forced labour imports and 12.5% on imports from all other economies.

India is among the economies that will face 12.5% tariffs.

The US Trade Representative said that the “failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable”.

The inaction against forced labour in supply chains has created an “unlevel playing field” for American workers, US Trade Representative Ambassador Jamieson Greer added.

The proposal came after investigations were launched on March 12 into 60 economies about alleged failures to enforce prohibitions on imports of goods made with forced labour.

According to the investigation, 54 economies, including India, Bangladesh, China, Israel, Japan, allegedly failed to impose and effectively enforce such prohibitions. Six others, Canada, Ecuador, the...

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