India Responds To USTR Forced Labour Findings And Proposed Tariffs

India has opposed a proposed 12.5% tariff by the United States Trade Representative (USTR), arguing that trade-related concerns over forced labour should be addressed through bilateral discussions rather than unilateral measures. During a public hearing, India questioned the findings of the USTR's Section 301 investigation, stating that the report lacked sufficient evidence and did not meet the required legal standards for imposing countrywide tariffs.

Joint Secretary in the Department of Commerce Brij Mohan Mishra represented India at the hearing and said the country takes the elimination of forced labour seriously as a constitutional responsibility and a matter of international commitment. He raised concerns over the USTR's determination, arguing that the absence of a specific forced labour import prohibition alone cannot be considered an unfair trade practice without supporting evidence. India maintained that the investigation did not establish a direct link between its policies and any harm caused to US industries.

India also criticised the methodology used in the USTR report, stating that the findings relied on broad trade patterns and limited case studies rather than country- and sector-specific evidence. According to Indian officials, the report grouped 46 economies together without providing individual assessments and did not demonstrate that India's import policies created a competitive disadvantage for American businesses. New Delhi urged the USTR to reconsider the proposed tariff and resolve concerns through ongoing India-US trade negotiations.

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The Agricultural and Processed Food Products Export Development Authority (APEDA) also raised objections, particularly regarding observations related to rice imports. Representing APEDA, First Secretary at the Indian Embassy in Washington, DC, Shreyans Gupta said India's rice imports are limited and mainly serve specific market requirements. He highlighted that imported rice accounts for less than three per cent of the value of India's rice exports to the US and said regulatory safeguards prevent the export of imported rice produced through forced labour.

Industry bodies in India have also opposed the proposed tariff, warning that it could increase costs for exporters, US businesses and consumers. The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) argued that the measure is not supported by adequate evidence and could affect established supply chains between the two countries. The USTR had launched Section 301 investigations covering 60 economies over forced labour and excess industrial capacity concerns, with the proposed tariffs still under review before a final decision is made.

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