Trump administration investigates 60 countries for forced labour practices. There is also the EU
The Trump administration has launched an investigation into dozens of countries accused of not adequately countering forced labour, leveraging a law that allows the federal government to impose tariffs and other trade restrictions
The Trump administration has launched an investigation into dozens of countries accused of not adequately countering forced labour, leveraging a law that allows the federal government to impose tariffs and other trade restrictions. This is reported in the US media.
EU and Russia also under investigation
The initiative is conducted under Section 301 of the Trade Act of 1974, a law designed to curb unfair trade practices. The approximately 60 countries and territories affected by the investigations include some of the United States' major trading partners, such as China, Canada, Mexico, Japan, South Korea, Vietnam, Australia, the United Kingdom, and the European Union. Russia is also present.
"For too long, American workers and businesses have been forced to compete with foreign manufacturers who may have an artificial cost advantage from the scourge of forced labour," said Trade Representative Jamieson Greer.
The allegations underlying the investigation
The legal documents that launched the investigation claim that many other countries, unlike the United States, do not have strong bans on the import of goods produced with forced labour. As a result, companies in those countries could "source, use, and profit from imported products made with forced labour," putting US companies at a disadvantage. "These investigations will determine whether foreign governments have taken sufficient steps to prohibit the importation of goods produced with forced labour and how the failure to eradicate these aberrant practices affects US workers and businesses," Greer said. The statement does not explicitly threaten the imposition of tariffs.
Possible justification for new tariffs
However, Section 301 allows his office to impose tariffs and import restrictions if an investigation determines that a country has engaged in unfair trade practices. The previous day, Greer had announced another set of Section 301 investigations into 16 US trading partners, targeting allegations of 'structural overcapacity' - the production of more goods than a country can reasonably consume.
