The United States Trade Representative (USTR) has concluded a fresh Section 301 investigation covering 60 countries, including India. The report states that India has failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour. This finding comes even as a US trade delegation is in India from June 1 to June 4 for discussions on a bilateral trade agreement between the two countries.
USTR Report Findings
In its report, the USTR examined the practices of 60 economies accounting for more than 99 per cent of US imports. The report concluded that India's approach to imports linked to forced labour is actionable under Section 301 of the US Trade Act of 1974.
"In sections III.A.7 and III.B.7, USTR found that India has failed to impose and effectively enforce a forced labor import prohibition," the report said. It further stated: "In section IV, we found that the failure to impose and effectively enforce a forced labor import prohibition is unreasonable. In section V, we found that the failure to impose and effectively enforce a forced labor import prohibition burdens or restricts U.S. commerce."
The US Trade Representative office said: "For nearly a century, the United States has prohibited the importation of goods made with forced labor. It is time for our trading partners to follow suit. Today, Ambassador Greer determined that the acts, policies, and practices of 60 economies related to the failure to prohibit the importation of goods produced with forced labor is unreasonable and burdens or restricts U.S. commerce."
India Among 54 Economies Without Forced Labour Import Ban
Based on those findings, the report concluded that "the acts, policies, and practices of India related to the failure to impose and effectively enforce a forced labor import prohibition are unreasonable and burden or restrict U.S. commerce." India was among 54 economies that, according to the USTR, have failed to impose a legal prohibition on the importation of goods produced wholly or in part with forced labour. The report said six other economies—Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan—have such prohibitions in place but have failed to enforce them effectively.
The investigation was initiated by the USTR in March 2026 and covered economies from which 99.4 per cent of US imports originate. The report argues that the absence of forced labour import bans distorts global trade, creates unfair competitive advantages, and undermines efforts to eliminate forced labour from international supply chains.
Impact on US-India Trade Talks
According to the report, "the failure of each of the investigated economies to impose and effectively enforce a forced labor import prohibition is unreasonable" because it undermines the global objective of eliminating forced labour, distorts market conditions, and contributes to the circumvention of existing import restrictions. The report also said that such failures "burden or restrict U.S. commerce by subjecting U.S. producers to unfair competition from forced labor goods in both export markets and the U.S. market."
The findings assume significance as India and the United States are currently engaged in negotiations aimed at deepening bilateral trade and resolving market access issues. A US trade delegation is visiting India from June 1 to June 4 for discussions related to the proposed bilateral trade agreement and other trade issues, including tariffs imposed by the United States.
