WASHINGTON: The United States Trade Representative (USTR) has proposed new tariffs on imports from 60 economies, including Pakistan and India, citing concerns over the enforcement of measures aimed at preventing goods made with forced labour from entering global supply chains.
Under the proposal, Pakistan would face a 10 percent tariff, while India could be subject to a 12.5 percent duty. The measures are part of a broader review by the USTR and will be subject to a public consultation process before any final decision is taken.
According to a USTR filing, 54 economies were found to have failed to impose and effectively enforce prohibitions on imports linked to forced labour. These include China, India, Vietnam, Taiwan and the United Kingdom.
A further six economies — Pakistan, Canada, Ecuador, the European Union, Indonesia and Mexico — were identified as not having effectively enforced such restrictions.
USTR Jamieson Greer said the proposed measures are intended to address concerns that goods produced with forced labour create unfair competition for American workers and businesses.
Proposed tariff rates
The USTR said it plans to impose a 10 percent duty on imports from Pakistan and several other economies, including Bangladesh, Malaysia, Cambodia, Argentina, Guatemala, El Salvador, Taiwan and the United Kingdom.
Imports from 45 other economies covered by the investigation would face additional duties of 12.5 percent.
The proposed tariffs include exemptions for certain products, including beef, coffee and selected fruits and nuts.
Goods from Canada and Mexico that comply with the United States-Mexico-Canada Agreement (USMCA) would also be exempt, along with certain textile and apparel products.
Public consultation process
The USTR has invited written public comments on the proposal until July 6 and plans to hold hearings before making a final determination.
The announcement follows investigations launched by Washington into several trading partners, including China, the European Union and Japan, to assess their actions against imports linked to forced labour and the potential impact on US commerce.
The proposal also comes ahead of the July 24 expiration of a temporary 10 percent tariff imposed by the Trump administration following a legal challenge that affected earlier tariff measures.
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