The United States has launched a sweeping investigation into imports from 60 economies, including India, China, Japan, and the European Union, to examine whether goods produced with forced labour undermine American workers and businesses. The probe was initiated by the Office of the United States Trade Representative (USTR) under Section 301(b) of the Trade Act of 1974.
The investigations aim to determine whether the failure of these economies to ban imports made with forced labour constitutes practices that are “unreasonable or discriminatory and burden or restrict US commerce.” The USTR will assess the impact of such imports on domestic industries and examine whether governments have taken sufficient action to prevent goods produced under forced labour conditions from entering their markets.
On March 13, US Trade Representative Jamieson Greer stated that despite international agreements against forced labour, many governments have not effectively implemented or enforced bans on such imports. “American workers and firms face competition from foreign producers who may gain an artificial cost advantage through forced labour,” Greer added.
The countries and regions under review include major trading partners such as India, China, the European Union, Japan, the United Kingdom, Bangladesh, Vietnam, Pakistan, Brazil, and Mexico. The USTR can, under US law, respond to practices deemed unjustifiable, unreasonable, or discriminatory, potentially resulting in trade actions.
The investigation process will involve consultations with the governments of the affected economies to assess their regulatory frameworks and enforcement measures regarding forced-labour goods. Officials will examine whether the absence of effective bans allows companies to profit from lower production costs and distort international trade.
USTR documents highlight that forced labour continues across global supply chains despite longstanding international prohibitions. Estimates from the International Labour Organization indicate that approximately 28 million people were subjected to forced labour worldwide in 2021, generating roughly $63.9 billion in annual private sector profits.
The US has prohibited imports made wholly or partially with forced labour for nearly a century, citing both humanitarian concerns and the economic impact on domestic producers. The investigations aim to safeguard American businesses from unfair competition and uphold international labour standards while identifying gaps in enforcement globally.
Analysts note that this probe could influence trade policies and compliance measures across multiple countries, pushing governments to strengthen labour protections and improve monitoring of supply chains. The outcomes may set precedents for enforcement of ethical trade practices and raise scrutiny on how global imports affect domestic markets.
