India bans imports of goods made with forced labour amid US trade scrutiny
The development has come amid the US Trade Representative (USTR) undertaking Section 301 investigations against 60 economies, including India, over concerns related to forced labour
India has banned the import of goods manufactured using forced labour, amid a US investigation into forced labour practices in 60 countries, including India.
Amending the Foreign Trade Policy of 2023, the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry has inserted a paragraph that reads: "the import of goods produced or manufactured, wholly or in part, through the use of forced labour is prohibited."
The provisions of the notification dated 13 July will come into force after the expiry of 30 days from the date of its publication in the Official Gazette, it stated.
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The development has come amid the US Trade Representative (USTR) undertaking Section 301 investigations against 60 economies, including India, over concerns related to forced labour. The USTR has alleged that these countries have failed to enforce import bans on goods made with forced labour.
India is engaged with the US on the matter as both sides negotiate a bilateral trade agreement (BTA).
On 3 June, the US proposed imposing 12.5% tariffs on 54 countries, including India, for allegedly failing to prohibit the import of goods produced with forced labour. Six countries — Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan — would face an additional 10% import duty.
The DGFT has also added a new paragraph under Chapter 11 (Definition) of the Foreign Trade Policy (FTP), 2023, under which "forced labour" means all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily, as defined under the ILO Forced Labour Convention, 1930 (No. 29).
