America is preparing to impose 12.5% ​​additional duty on 54 countries including India, know what is the whole controversy!

Washington: The US Trade Representative has proposed to impose an additional 12.5 percent duty on 54 countries, including India, for not enforcing the ban on imports of goods manufactured with forced labour. This proposal comes after the investigations that the US had initiated against 60 countries on the grounds that they had failed to ban and effectively enforce the import of goods made from forced labour. “It is unacceptable for our most important trading partners to fail to stop the import of goods made with forced labor,” US Trade Representative (USTS) Jamieson Greer said in a statement. This creates a situation in which American workers face unequal competition on a global scale.” He said, ”We will no longer tolerate this inequality.”

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Rejecting the allegations of bonded labour, India has demanded the US to end these investigations. India says such issues should be resolved within the framework of the ongoing trade negotiations between the two countries. Greer said some trading partners have taken initial steps to stop the import of goods made with forced labor. These include commitments made under the United States Mexico-Canada Agreement (USMCA) and reciprocal trade agreements. However, he added that “each trading partner must do more to ensure that global trade does not encourage or perpetuate forced labour.”

Additional charges will be imposed on 54 countries

The US Trade Representative said in a statement that 54 countries, including India, China, Japan, Brazil, Australia, Britain and Saudi Arabia, have failed to effectively enforce and ban imports of goods made from forced labour. According to the statement, there are six economies – Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan – that have banned the import of goods made from forced labour, but have not been able to effectively enforce it. The US Trade Representative has proposed imposing an additional 10 percent duty on economies that have imposed a ban on the import of goods involving forced labor, or have committed to establish and enforce such a ban under a reciprocal trade agreement, or have implemented a partial regime prohibiting the import of certain types of such goods.

The statement said, “For all other economies, the US Trade Representative has proposed an additional duty rate of 12.5 percent.” This 12.5 percent additional duty will be applicable to 54 countries, which also includes India. USTR has also proposed a special mechanism for the textile sector, under which a specified quantity of apparel and textiles imported into the US from certain countries could be allowed to enter the US at a reduced duty rate. It has asked interested parties to submit applications and a summary of their statements to attend the hearing by June 22. Besides, written comments have also been sought till July 6. “USTR will hold a hearing on these proposed actions on July 7,” the statement said.