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Why Is US Threatening India With Forced Labour Tariffs While Negotiating A Trade Deal?

The Office of the USTR launched Section 301 investigations on March 12 into the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour

Why Is US Threatening India With Forced Labour Tariffs While Negotiating A Trade Deal?
Summary
  • USTR proposes up to 12.5% tariffs over forced labour import rules

  • India-US trade agreement talks continue despite parallel Section 301 probe

  • India may challenge proposed tariffs as bilateral trade negotiations near completion

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Summary

The timing could not have been more deliberate. Even as a US trade delegation led by Assistant United States Trade Representative (USTR) Brendan Lynch was sitting inside offices in New Delhi — working through what both sides had called the final stretch of a bilateral trade agreement — Washington released a report proposing fresh tariffs on India. The stated reason was forced labour.

The Office of the USTR launched Section 301 investigations on March 12 into the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.