The US Trade Representative’s (USTR) office began a three-day hearing from July 7 on its proposal to impose tariffs on various countries.
The US had launched an investigation into the forced-labour prohibition policies of 60 countries in March, by citing a regulation that authorises tariffs on countries deemed to unfairly burden US commerce.
That basis is viewed as more legally sound than the emergency power President Donald Trump used last year to impose tariffs that were ruled illegal by the Supreme Court in February.
The USTR determined in early June that each of the investigated economies failed to “impose and effectively enforce a forced labour import prohibition”.
USTRT recommended that goods imported into the US from those economies face an additional 10 or 12.5% duty.
As part of the process, dozens of stakeholders will make their case – for or against the duties – to US trade officials.
White House officials have already made it clear that they plan to use the forced labour and other investigations to restore import taxes to levels in place under Trump’s emergency tariffs.
“In the meantime, the administration has a temporary 10% global tariff in place that expires on Jul 24,” the Business Times reported.
In a detailed submission dated June 6 to the USTR, India has expressly stated it stringently prohibits forced labour domestically under Article 23 of the Constitution (Right against Exploitation) and the Bonded Labour System (Abolition) Act, 1976.
India maintains that the allegations primarily stem from global supply chain linkages rather than domestic practices. The USTR has proposed 12.5% tariffs on imports from India.
Diplomats and trade officials from India, Brazil, Mexico, Jordan, Pakistan Chile, Ecuador, Guatemala, Guyana, Honduras, Peru and several other countries are also set to put forth their arguments.
The hearings will wrap up with comments from the National Council of Textile Organizations, joined on the panel by the American Cotton Producers.
Image courtesy: Freepik
