The US Trade Representative Office (USTR) has proposed imposing an additional import tax of up to 12.5% on goods from 60 economies because these countries and territories are considered not to have banned or effectively implemented the prevention of goods related to forced labor.
According to the conclusion drawn based on Article 301 of the 1974 Commercial Act, USTR argues that all 60 economies have not yet applied or effectively implemented measures banning the import of goods produced by forced labor. The agency believes that this situation creates an "inequal playing field" for American workers.
The new proposal could affect most of US trade partners, including China, the European Union (EU) and Japan.
According to the plan, economies that have applied a partial or total ban on commercial activities related to forced labor will be subject to a 10% additional tax. The remaining economies may face a tax rate of 12.5%.
USTR also proposed a separate mechanism for the textile and garment industry. Accordingly, a certain amount of garments and textile products from some economies will be allowed to enter the US market with lower preferential tariffs.
US Trade Representative Jamieson Greer said that the fact that important US trading partners do not address the import of goods produced by forced labor is unacceptable.
Mr. Jamieson Greer emphasized that this situation forces American workers to compete in the global market in unfair conditions. He affirmed that Washington will not continue to accept that disparity.
According to Mr. Jamieson Greer, some trade partners have taken initial steps to prevent goods related to forced labor, including commitments in the US-Mexico-Canada Agreement (USMCA) and reciprocal trade agreements. However, he believes that US partners need to take more measures to ensure that trade activities do not inadvertently encourage or strengthen forced labor globally.
USTR's proposal marks a large-scale trade move, aimed at linking labor standards with US tariff and trade policies.
According to the ILO Convention on the Forced Work of 1930 (No. 29), forced or compulsory labor is: "All work or service requested from any person under the threat of punishment and that person not voluntarily performed".
