Now, USTR to probe 60 nations for forced labour

NEW DELHI: In a fresh bid to get trading partners on the negotiating table, the US Trade Representative has launched a fresh section 301 probe against 60 countries, including India, for alleged failure to impose and effectively enforce a prohibition on the import of goods produced with forced labour.The investigation ordered Thursday, came a day after a similar action related to structural excess capacity and production in manufacturing sectors against 16 countries, including India. After the US Supreme Court setback on reciprocal tariffs, American President Donald Trump had announced his intent to deploy section 301 against countries and the move is seen as an attempt to gain leverage once the current 10% tariff on countries expires in 150 days.

The USTR notice announcing the probe referred to a 2024 report by the US Bureau of International Labour Affairs, which had listed 28 products produced in India and alleged that it involved the use of forced labour or child labour. It included bricks, carpets, hybrid cotton seeds, embellished textiles, garments, rice, sandstone, shrimps, stones, sugarcane, tea, and thread or yarn. Besides, when it came to downstream products, it accused India of purchasing palm fruit from Malaysia, which used child labour or forced labour.

Govt officials, however, dismissed the allegations. Trade experts saw the two actions aimed more at China than India and said that almost all large trading partners including China, Australia, Canada, the UK, Vietnam and Mexico are facing the investigation.US is looking to get countries to explicitly commit to ban use of forced labour.