India moves to bar imports made with forced labour amid US tariff probe

NEW DELHI: India has decided to prohibit the import of goods made wholly or partly through forced labour, according to a notification issued by the trade ministry, in a step that could help the country avoid fresh US tariffs tied to such imports.

The ministry said in a notification dated Monday that the central government is being empowered to block the import of products produced or manufactured, wholly or in part, through the use of forced labour. The measure is set to take effect after 30 days.

Under the notification, India’s foreign trade body will examine whether imported goods were made using forced labour. If evidence is established, it will recommend to the government that those products be barred from import after consultations.

India is among several countries facing proposed US trade duties of up to 12.5 per cent over allegations that they did not prohibit the import of goods produced with forced labour. At present, as with most countries, the majority of Indian goods are subject to a 10pc US tariff.

Washington is expected to impose higher tariffs through two separate investigations related to forced labour and excess industrial capacity. Last month, the Office of the United States Trade Representative proposed new duties targeting 60 economies, including India and Pakistan, over alleged failures to act against forced labour.

According to a US government filing, the proposed tariffs range between 10pc and 12.5pc. The proposal will now go through a public comment period before a final decision is taken.