India has formally requested a review of the proposed 12.5% tariff imposed by the United States, citing what it calls significant flaws in the U.S. Trade Representative's (USTR) report on forced labour. During a public hearing, Joint Secretary in the Department of Commerce Brij Mohan Mishra submitted that India's engagement on forced labour issues has been genuine and substantive, and expressed strong concerns over the USTR's determination.
India's Strong Objections
Mishra emphasized that India has consistently cooperated with international labour standards and has taken concrete steps to address any allegations of forced labour. He argued that the USTR's report fails to acknowledge these efforts and relies on incomplete or inaccurate data. The proposed tariff, he said, would be unjustified and could harm bilateral trade relations.
Background of the Dispute
The USTR initiated an investigation into forced labour practices in India earlier this year, leading to the proposed 12.5% tariff on certain Indian goods. India has maintained that its labour laws are robust and that it is committed to eradicating forced labour. The public hearing was part of the U.S. process to gather stakeholder input before finalizing the tariff.
Impact on Trade
According to trade experts, the tariff could affect billions of dollars in exports from India to the United States. India has urged the USTR to reconsider its findings and engage in a dialogue to resolve the issue amicably. The Indian government has also reserved the right to take retaliatory measures if the tariff is imposed.
