US Launches Investigation into Global Forced Labour Practices Affecting 60 Economies

The United States has embarked on a second round of Section 301 trade investigations targeting alleged forced labour practices across 60 economies, including major exporters like India and China. The investigations, announced by the US Trade Representative, aim to identify countries that import goods produced through forced labour, particularly focusing on China's Xinjiang region.

India, which exports solar panels, electronics, and garments to the US, may face increased scrutiny due to its use of Chinese imports possibly linked to forced labour. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), highlighted that these goods, if entering US markets via third countries, could potentially suppress legitimate US producers by reducing production costs.

If the probe determines that certain economies have unreasonable or discriminatory trade practices, the US could impose tariffs or trade restrictions. This investigation follows allegations of forced labour practices in regions like Xinjiang, which is significant in global supply chains for cotton and polysilicon. Although India bans forced labour, it could still be scrutinized due to its dependence on imports from affected Chinese areas.