US Probes India, 59 Others For Forced Labour After Unfair Trade Practices Row

The United States has launched a fresh investigation into around 60 trading partners, including India, over allegations related to the use of forced labour in the production of goods, escalating trade scrutiny as Washington intensifies its review of global supply chains. The probe was announced by the Office of the United States Trade Representative (USTR) on Friday and comes amid broader trade tensions and policy adjustments following legal challenges to earlier tariff measures imposed by the US administration.

The investigation has been initiated under Section 301(b) of the Trade Act of 1974, a provision that allows the US government to examine whether the policies or practices of foreign economies are unreasonable or discriminatory and whether they burden or restrict American commerce. According to the USTR, the inquiry will focus on whether these economies have failed to impose or effectively enforce bans on the importation of goods produced using forced labour, a practice widely condemned under international labour standards.

US Trade Representative Jamieson Greer said the investigation is aimed at protecting American workers and businesses from unfair competition linked to labour exploitation. Greer stated that despite a global consensus against forced labour, several governments have not implemented or enforced strong measures to block such goods from entering their markets. He added that the probe will assess whether these shortcomings have allowed foreign producers to gain artificial cost advantages, undermining fair trade practices.

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In India, forced labour is legally prohibited. Article 23 of the Constitution explicitly bans human trafficking, begar, and other forms of forced labour. The constitutional safeguard is part of a broader legal framework intended to protect workers’ rights and ensure that labour exploitation is prevented through legislation and enforcement mechanisms across industries.

The latest probe follows another move by the USTR a day earlier, when the agency initiated an investigation into what it described as “structural excess capacity and production” in India under the same Section 301 mechanism. US authorities cited India’s approximately $58 billion trade surplus with the United States last year and flagged sectors such as solar modules, petrochemicals, and steel as industries where production capacity may significantly exceed domestic demand.

The announcement comes after a series of developments in US-India trade relations earlier this year. Washington and New Delhi had agreed in early February on a trade deal that would reduce US tariffs on several Indian goods to 18 percent from 50 percent. However, the US Supreme Court later struck down certain tariff measures imposed under emergency powers, disrupting negotiations. Meanwhile, the US has introduced a new 15 percent global tariff on most imported goods. The forced labour probe will also cover several other economies, including China, the European Union, Japan, Mexico, Bangladesh, Vietnam, Singapore, and South Korea, with the USTR expected to consider possible tariff or non-tariff actions after public hearings and consultations.

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