Pakistan among 60 economies ‘likely’ hit by US forced-labour tariffs

• Duties ranging from 10pc to 12.5pc proposed by United States Trade Representative

• Pakistan among six economies accused of weak enforcement

• Washington says unfair trade harms American workers

• Public comments invited before final tariff decision

• China rejects allegations, denounces ‘unilateral’ measures

• EU, Switzerland dismiss US findings as unjustified

 WASHINGTON: The United States Trade Representative (USTR) has proposed new tariffs on imports from 60 economies, including Pakistan and India, over their alleged failure to effectively curb the importation of goods made with forced labour, as the Trump administration seeks to revive its trade agenda following a series of legal setbacks.

The proposed duties, ranging from 10pc to 12.5pc, were outlined in a government filing and will be subject to a public comment period before a final decision is taken.

The move comes months after Washington launched investigations into several major trading partners, including China, the European Union (EU) and Japan, to determine whether they had taken adequate measures against the import of goods produced through forced labour and whether such practices adversely affected US commerce.

On Tuesday, the USTR said 54 economies had “failed to impose and effectively enforce a forced labour import prohibition”.

The group includes China, Vietnam, Taiwan, the United Kingdom and India.

Six other economies — Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan — were found not to have effectively enforced such prohibitions.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” USTR Jamieson Greer said in a statement.

“This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” he added.

“We will no longer tolerate this disparity,” Greer said, adding that “each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally”.

According to the USTR, imports from Canada, Ecuador, the EU, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain would be subject to a 10pc duty under the forced labour investigation.

The agency said an additional tariff of 12.5pc would be imposed on imports from the remaining 45 economies covered by the probe.

The proposed measures, however, include a number of exemptions covering products such as beef, coffee, and certain fruits and nuts.

Goods from Canada and Mexico that comply with the North American free trade agreement will also be exempt, along with selected textile and apparel products.

The USTR has invited written comments from the public until July 6 and will subsequently hold hearings before finalising its decision.

The announcement comes ahead of the July 24 expiry of a temporary 10pc tariff imposed by the Trump administration on February 20, the same day the US Supreme Court struck down President Donald Trump's tariffs enacted under the International Emergency Economic Powers Act.

‘Unjustified’

Reacting to the proposal, China on Wednesday rejected the allegations of forced labour and reiterated its opposition to what it described as “unilateral” tariffs.

“There is no so-called forced labour in China, and we oppose using this as an excuse for political manipulation,” Mao Ning, spokesperson for China's foreign ministry, told a regular press briefing.

Meanwhile, the European Commission described the proposed tariffs as unjustified and reaffirmed its commitment to implementing the trade agreement reached with Washington last year.

“The EU considers tariffs imposed on these grounds to be unjustified,” a commission spokesperson said.

“On the EU side, we are on track to ensure implementation of our Joint Statement tariff commitments by the end of June.”

The Swiss government also rejected the US findings regarding how dozens of economies, including Switzerland, address goods allegedly produced through forced labour.

Switzerland's economy ministry said US industry was not being harmed by Swiss practices and noted that it had already communicated its position on the matter to American authorities.