US aims forced labour gaps with tariffs
The United States has proposed additional tariffs on imports from 60 countries, including Bangladesh, following a review that found shortcomings in efforts to restrict trade in goods produced with forced labour.
The proposal was announced on Tuesday by the Office of the United States Trade Representative (USTR) after a series of Section 301 investigations launched earlier this year into forced labour enforcement practices among key US trading partners.
US Trade Representative Jamieson Greer said inadequate measures to prevent imports linked to forced labour undermine fair competition and disadvantage American workers.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” Greer said. He added that governments should take stronger action to ensure global trade does not incentivise or facilitate forced labour practices.
The USTR identified 54 economies, including Bangladesh, India, China, Japan, the United Kingdom, Vietnam and Thailand, as failing to impose and effectively enforce restrictions on imports of goods produced with forced labour. A further six economies, including Canada, Mexico and Pakistan, were cited for inadequate enforcement of existing prohibitions.
Under the proposed framework, countries that maintain partial bans on forced labour imports or have reciprocal trade arrangements with the United States would face an additional 10 per cent tariff.
Countries without such arrangements could be subject to a higher 12.5 per cent duty on exports to the US market.
The proposed measures are not expected to take effect immediately. The USTR has opened a public consultation process before any final decision is made, allowing governments, businesses and other stakeholders to submit comments and recommendations.
According to the notice, written submissions must be filed by 6 July, while a Section 301 review panel is scheduled to begin public hearings from 7 July. The consultation process could result in amendments to the proposal before any duties are formally adopted.
The initiative forms part of a broader Section 301 trade strategy under which Washington is reviewing trade practices and enforcement standards among major trading partners. The process could ultimately lead to country-specific tariff measures replacing temporary arrangements that are due to expire later this year.
Alongside the tariff proposal, the USTR has outlined a separate mechanism for textile and apparel trade. The plan would allow a specified volume of textile and garment imports from selected economies to enter the US market at reduced Section 301 tariff rates.
However, details regarding eligibility criteria, participating countries and quota allocations have yet to be finalised.
The proposed tariffs could have implications for a number of export-oriented economies, including Bangladesh, which relies heavily on access to the US market for its ready-made garment sector.
The outcome of the consultation process will be closely watched by governments and exporters ahead of any final decision by US trade authorities.
