The United States has launched a new round of trade investigations targeting India and dozens of other major trading partners over allegations that goods imported into the U.S. may be produced using forced labour.
According to the office of the U.S. Trade Representative, the investigation will examine whether 60 trading partners have taken sufficient measures to prevent the import of goods linked to forced labour practices. The probe forms part of a broader effort by the U.S. government to address trade practices it believes give foreign producers an unfair advantage in global markets.
The investigation includes several major economies and manufacturing hubs, including India, Pakistan, China, Bangladesh, Cambodia and Vietnam, as well as the European Union. Canada, the United States’ second-largest trading partner, is also among the countries being reviewed.
U.S. officials say the probe aims to determine whether these countries have adequate safeguards to prevent forced labour from being used in goods exported to the United States. Authorities argue that such practices create an artificial cost advantage for foreign manufacturers and place American workers and companies at a disadvantage.
The investigation is being carried out under Section 301 of the U.S. Trade Act of 1974, which allows the government to investigate trade practices considered unfair or discriminatory and to respond with measures such as tariffs or trade restrictions.
The move comes shortly after the United States launched a separate Section 301 investigation into India and several other major economies over what it described as unfair trade practices linked to excess manufacturing capacity. That earlier probe included countries and economic blocs such as China, Japan, South Korea, Mexico and the European Union.
Analysts say the new investigation could provide a pathway for the administration of Donald Trump to introduce additional trade barriers following a recent court decision that limited the government’s ability to impose sweeping tariffs.
Earlier this year, the Supreme Court of the United States ruled that the administration had exceeded its authority when it introduced large tariffs on several countries, including a proposed 50 per cent levy on Indian imports, under emergency economic powers.
In response to the ruling, the U.S. government introduced a temporary 10 per cent tariff on all imports using a separate legal authority while continuing to pursue investigations that could justify new trade actions against key trading partners.