India Takes Action to Block Imports Associated with Forced Labour Amid USTR Investigation
NEW DELHI: The Indian government is set to enhance its trade regulations by introducing a new clause aimed at blocking imports of goods produced using forced labor. This decision comes in response to a Section 301 investigation by the U.S. Trade Representative (USTR), which scrutinized 60 countries, including India, for their failure to address such imports. The proposed clause will be integrated into the Foreign Trade Policy, empowering the Directorate General of Foreign Trade (DGFT) to identify and prohibit specific goods based on investigations.
The government plans to adopt the International Labour Organisation’s (ILO) definition of forced labor to strengthen its framework for restricting imports. According to the ILO’s 1930 Forced Labour Convention, forced labor is defined as any work or service extracted from an individual under threat of penalty and for which the person has not voluntarily offered themselves.
Government Notification and Legal Framework
The notification, issued on Monday, will take effect in 30 days, coinciding with the expected implementation of USTR’s recommendations. This follows a setback for the U.S. administration, which had its reciprocal tariffs deemed illegal by the Supreme Court. As a result, two investigations were initiated, one focusing on forced labor and the other on structural excess capacity, with India included among the countries under scrutiny.
USTR has proposed a 12.5% additional tariff on over 50 countries, including India, for allegedly failing to curb imports linked to forced labor, a claim the Indian government has denied. Commerce Secretary Rajesh Agrawal indicated that the framework agreement between India and the U.S. may provide potential solutions to these investigations.
Experts believe that India’s notification reflects a commitment to align its legal framework with international standards. Ajay Srivastava, founder of trade research organization GTRI, noted that this move could bolster India’s position in future trade negotiations. EY India’s trade policy leader, Agneshwar Sen, emphasized that by adopting the ILO definition, India is not only countering U.S. allegations but also asserting its capability to regulate forced labor within its supply chains.
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