NEW DELHI — India has formally asked the United States to withdraw a proposed 12.5% tariff on certain Indian imports that the U.S. Trade Representative (USTR) is considering under Section 301 of the Trade Act, citing a lack of concrete evidence that the goods are produced with forced labour.
In a written submission to the USTR, the Indian Ministry of Commerce and Industry argued that the investigation’s “broad approach” does not meet the evidentiary standards required for trade‑distorting measures. The ministry said the current framework “does not distort trade unfairly” and that the United States has not provided sufficient documentation to substantiate its allegations.
India’s response emphasized its willingness to engage in “dialogue and consultation on specific concerns,” offering to address any identified issues through bilateral mechanisms rather than through punitive tariffs.
The USTR announced in March that it was launching a probe into forced‑labour practices in several countries, including India, and that it could impose tariffs of up to 12.5% on imports such as textiles, apparel, and footwear if violations were confirmed.
Analysis: The tariff threat comes amid growing U.S. pressure on global supply chains to eliminate forced‑labour, a policy championed by the Biden administration. By challenging the USTR’s evidence base, India is seeking to protect a $30 billion‑plus export relationship while signaling openness to remedial action. If the United States proceeds without additional proof, it could set a precedent for trade actions based on broad allegations, potentially prompting other trading partners to contest similar measures. Conversely, a negotiated resolution could preserve market access for Indian producers and demonstrate the efficacy of diplomatic channels in resolving labor‑rights disputes.
Sources
Times of India – “India urges US to reconsider proposed 12.5% tariff over forced labour probe under USTR’s Sec‑301” (https://timesofindia.indiatimes.com/business/india-business/india-urges-us-to-reconsider-proposed-12-5-tariff-over-forced-labour-probe-under-ustrs-sec-301/articleshow/132241671.cms)
Story synopsis gathered from: Times of India – Top Stories — source
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