US proposes tariffs on Pakistan, 60 other economies over forced labour practices

WASHINGTON: The United States Trade Representative has proposed fresh tariffs on imports from 60 economies, including Pakistan and India, saying they did not take sufficient action against goods produced with forced labour.

According to a US government filing, the proposed duties range from 10 per cent to 12.5pc and will go through a public comment process before any final determination is made. The move is part of the Trump administration’s effort to rebuild its tariff framework after legal setbacks in recent months.

The USTR had earlier opened investigations into a number of trading partners, including China, the European Union and Japan, to examine whether they had acted against imports made with forced labour and whether that had affected US commerce.

Countries listed in the proposal

On Tuesday, the USTR said 54 economies had failed to impose and effectively enforce a ban on imports made with forced labour. That list includes China, Vietnam, Taiwan, the United Kingdom and India.

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

The trade agency said it had determined that 10pc duties linked to the forced labour investigation would apply to imports from Canada, Ecuador, the EU, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan and Britain. It added that an additional 12.5pc duty would be imposed on the remaining 45 countries covered by the investigation.

US justification and timeline

In a statement, USTR Jamieson Greer said the proposed action was aimed at what Washington sees as an uneven competitive environment for US workers. “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” Greer added.

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

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

The proposed tariffs include exemptions for some products, including beef, coffee and certain fruits and nuts. Goods from Canada and Mexico that meet the terms of the North American free trade pact would also be excluded, along with certain textiles and apparel.

The USTR has invited written comments from the public by July 6 and said hearings will follow. The announcement comes before 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 issued under the International Emergency Economic Powers Act.