India defended itself against the threat of higher US tariffs, arguing that Washington failed to provide evidence the country lacked policies preventing forced labor, and was thereby disadvantaging American businesses.
The US Trade Representative is holding public hearings in Washington this week related to its investigations into forced-labor prohibition policies in several countries, under Section 301 of the Trade Act of 1974. The USTR has determined that the countries failed to impose and enforce bans against imports made with forced labor. Goods from those countries face an additional 10% or 12.5% duty.
In its submission to the USTR this week, New Delhi said the evidence across major Indian exports to the US “does not suggest any linkage with forced labor inputs.” In a public hearing Wednesday in Washington, Indian officials reiterated that issues around labor policies should be dealt within the framework of ongoing trade talks between the two sides.
The US and India have been locked in negotiations over a trade deal since last year, which have been complicated by political tensions. Although an initial trade agreement was reached in February with an 18% duty on Indian goods, a US Supreme Court order shortly after invalidated US President Donald Trump’s reciprocal tariffs.
The Trump administration has since moved to revive its protectionist trade agenda by looking to impose tariffs under Section 301. India has consistently said it would only formalize a trade deal with the US once the 301 probes are finalized.
India said in its submission that the USTR has failed to provide any country or product specific evidence in its present investigation to prove its case. It also pointed out that the US has listed some products, such as coffee, on its list of goods produced from forced labor, even though those goods have been exempted from tariffs.
“This creates a contradiction and inconsistency in the US’s own approach by exempting the products that are clearly flagged as having forced labor concerns,” according to India’s submission.
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