Inadequate, insufficient evidence on forced labour 301 probe: India tells US

New Delhi: India has told the US that the Unites States Trade Representative (USTR) determination of 12.5% tariff under Section 301 investigation into forced labour concerns, does not provide a rationale for countrywide tariffs and impermissibly clubs 46 economies into a single category.

At a public hearing on July 8 at the USTR, New Delhi said there is inadequate and insufficient evidence that lack of forced labour import ban causes an unfair competitive advantage to the detriment of the American industry.

Also read: US Forced Labour Hearings: Trump's next tariff threat looms over 60 countries, including India




Citing inconsistencies in its Section 301 investigation into forced labour concerns, India said that trade issues should be resolved through bilateral trade negotiations rather than unilateral measures.

“India would like to highlight its concerns with the USTR's report and findings against India,” India said, adding that the USTR has not satisfied the relevant legal standards under Section 301(d) of the Trade Act.

A mere absence of a forced labour import prohibition without evidentiary basis of other statutory requirements cannot be construed as unreasonable under Section 301, according to the written transcript of the hearing, held on July 8 and published on the USTR website.

The USTR's Section 301 investigation report concerns the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.

India has stated that the adopted methodology is particularly flawed as the determination is based on case studies of a handful of economies and relied on broad trade patterns.

The report, as per New Delhi, relies on broad data and it presupposes that an economy's imports flagged for this stuff involving imports made with forced labour are exported to the US without providing any sector- or country-specific evidence and actual linkages with forced labour.

India insisted that there is inadequate and insufficient evidence that lack of forced labour import ban causes an unfair competitive advantage to the detriment of the American industry.

“In conclusion, it is submitted that the USTR reconsider the imposition of tariff in light of the identified inconsistencies in the report in the Federal Register notice. We ask any trade problems be addressed within the framework of the India-US bilateral trade negotiation, not through unilateral measures such as this investigation,” India told the USTR, adding that it remains willing to engage constructively with the USTR through consultation and dialogue on any specific concern.

The Agricultural and Processed Food Products Export Development Authority said that the export promotion body objects to the USTR’s observations on the import of rice allegedly made with forced labour into India and the alleged impact on such imports in distorting the competitive conditions for the export and domestic sale of rice produced in the US.

It explained that the overall value of rice imported into India in relation to the value of rice exported from India to the US is not even 3% and rice exports from India to the US is allowed only from the rice mills and processing units registered with the agriculture ministry.

Moreover, there are regulatory checks in place that prevent exports from India of imported rice that have been produced with forced labour.