US opens unfair trade practices probe of 60 countries over forced labour

WASHINGTON: The US Trade Representative’s office said late on Thursday (Mar 12) it had initiated Section 301 unfair trade practices probes of 60 economies in relation to what it called failures to take action on forced labour.

President Donald Trump’s administration has sought to rebuild tariff pressure on countries around the world after the US Supreme Court struck down his global tariffs as illegal on Feb 20.

“These investigations will determine whether foreign governments have taken sufficient steps to prohibit the importation of goods produced with forced labour and how the failure to eradicate these abhorrent practices impacts US workers and businesses,” US Trade Representative Jamieson Greer said in a statement.

The list of 60 countries includes some major US trade partners and allies such as Australia, Canada, the EU, Britain, Israel, India, Qatar and Saudi Arabia. China and Russia are also on the list.

Other economies subject to the probe include Hong Kong, Indonesia, Japan, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. 

Trump imposed a 10 per cent tariff for 150 days under Section 122 of the Trade Act of 1974 after the Supreme Court’s ruling. 

On Wednesday, his administration said it was launching trade investigations into excess industrial capacity in 16 major trading partners.

Greer said on Wednesday the “Section 301” unfair trade practices investigation could lead to new tariffs imposed against China, the European Union, India, Japan, South Korea and Mexico by this summer. 

The US has already cracked down on solar panel imports and other goods from China’s Xinjiang region under the Uyghur Forced Labor Protection Act signed into law by former President Joe Biden, and the probe could expand such actions to other countries.

Greer said he wanted other countries to enforce bans on goods produced with forced labour similar to those enshrined in a nearly century-old trade law.

The US alleges that Chinese authorities have established labour camps ​for ethnic Uyghur and other Muslim groups. Beijing denies allegations of abuse.

Greer said he hoped to conclude the Section 301 investigations, including proposed ​remedies, before Trump’s temporary tariffs expire in July.