India questions US over proposed tariffs related to ‘forced labour’
New Delhi, July 9: India has questioned the US over its plans to impose another tariff series linked to alleged forced labour, saying its approach is inconsistent and that the issue should be dealt with through bilateral trade negotiations instead of unilateral action.
During an interaction with the US Trade Representative (USTR), Brij Mohan Mishra, Joint Secretary in the Ministry of Commerce, raused questions regarding the basis for the proposed tariffs and highlighted what India sees as inconsistencies in the US framework.
Mishra pointed out that the USTR exempts around 1,600 products that cannot be produced or grown in the US from scrutiny related to forced labour.
“What we submit is that the exemptions provided by the USTR not only undermine the policy rationale of addressing forced labour impact in the global supply chain but also of preventing such impact caused by circumvention practices,” Mishra said while responding to questions from the USTR panel.
He also objected to the US practice of offering lower tariff rates on textile products manufactured using US cotton and related inputs.
“By providing reduced tariff rates on the basis of imports of US-origin textile inputs, the textiles mechanism operates as an arbitrary requirement that influences and constrains the sourcing decisions of foreign manufacturers, without fully addressing the concern of forced labour,” Mishra said.
The issue relates to a proposed additional 12.5 per cent tariff under a US investigation into imports allegedly produced using forced labour.
Commerce Ministry officials said India remains committed to engaging constructively with the US Trade Representative (USTR) and believes the matter can be addressed through ongoing trade discussions between the two countries.
India argued that the US proposal lacks consistency because several products and countries have been exempted despite similar concerns.
Officials contended that the investigation does not provide a clear country-specific assessment or establish a direct link between India’s policies and any harm to US businesses.
They also questioned the rationale behind selectively excluding nearly 1,600 products from the proposed measures.
The government maintained that India’s legal framework already contains safeguards against forced labour and said it would continue presenting its case before US authorities.
The latest development comes as India and the US continue negotiations on a broader bilateral trade agreement aimed at expanding market access and strengthening economic ties.
New Delhi has emphasised that trade disputes should be resolved through dialogue and established trade mechanisms rather than additional tariff barriers.
The outcome of the consultations could have implications for a range of Indian exports to the US, including labour-intensive sectors.
While discussions are expected to continue, India has indicated that it will seek a mutually acceptable solution that preserves the momentum in bilateral trade relations and avoids unnecessary disruptions for businesses in both countries. (BVI)
