US imposes 10% tariff on India, Pak, Bangladesh, UK, others in forced labour probe
Pakistan, Bangladesh, Cambodia, Sri Lanka and the United Kingdom were also subject to 10% tariffs.
Also Read: Temporary 10% US tariff to expire on Friday unless extended or new tariffs announced
“Based on the findings of the investigation into India, including India’s adoption of a forced labor import ban, and considering public comments and testimony, the recommendation of the Section 301 Committee, and the recommendations of advisory committees, and in accordance with the President’s specific direction, the Trade Representative has determined to impose a 10% tariff on Indian products…” the U.S. Trade Representative said in its final report on Friday.
On June 14, India changed its foreign trade policy to ban imports of goods produced using forced labor. Washington launched another investigation in March, alleging excess capacity for certain goods. The United States has not yet released its draft report on overcapacity.
It said trading partners that have committed to adopting and effectively implementing a forced labor import ban will face a 10 percent tariff, and trading partners that have not adopted a forced labor import ban will face a 12.5 percent tariff rate.
The two investigations come after the US Supreme Court in February rejected last year’s “reciprocal tariffs”, deeming the emergency illegal, and the US government responded by imposing 10% tariffs on all countries by July 24. “I am encouraged by trading partners who are moving quickly to adopt forced labor import bans and look forward to ensuring their effective implementation,” USTR Jamieson Greer said, adding that today’s action “will begin to remediate both human rights abuses and distorted trade practice.” welfare of workers everywhere”.
Also Read: Forced labor explained: Why did India change its import policy?
USTR said Cambodia, Guatemala, Honduras, India, Sri Lanka, and Trinidad and Tobago have made commitments to bans on forced labor imports or have implemented such bans “following intergovernmental consultations.”
To date, 10 trading partners have agreed to enact such a ban in their Reciprocal Trade Agreements, according to USTR, and other countries have also enacted such bans in response to these investigations in recent weeks.
“The Trade Representative, in accordance with the specific instructions of the President, has determined that the tariff rate to be applied and the scope of tariffs and exemptions are appropriate to ensure the elimination of the actions, policies and practices determined to be actionable in the investigation,” the statement said.
The new tariffs come at a time when negotiations for a proposed trade deal between India and the US are progressing well and the framework agreement is ready to be signed at the right time.
Commerce and Industry Minister Piyush Goyal and Greer met last month to discuss issues related to the first phase of the bilateral trade agreement (BTA). New Delhi has insisted on comparative advantage over neighbors and rival countries and said the agreement will cover all aspects of trade.
