India Criticises US Forced Labour Tariff Proposal
India has termed the United States' approach to imposing tariffs on imports from 60 economies, including India, over alleged failure to prevent forced labour in global supply chains as inconsistent. The US has proposed tariffs ranging from 10 to 12.5 per cent on these economies.
Representatives from Indian industry bodies FICCI and CII presented their views on the US proposal during consultations. They highlighted that India itself has exempted 1,600 items from similar forced labour-related duties, showcasing its commitment to eradicating the issue.
India's Exemptions and Trade Stance
India's exemption of 1,600 items from forced labour tariffs underscores its proactive measures to ensure supply chains are free from such practices. The Indian government argues that the US proposal is inconsistent with global trade norms and could disrupt bilateral trade relations.
The US maintains that the targeted economies have not done enough to prevent goods made with forced labour from entering global markets. However, India contends that its domestic laws and enforcement mechanisms are robust.
Industry Reactions and Implications
FICCI and CII representatives emphasised that the proposed tariffs could harm Indian exports, particularly in sectors like textiles, agriculture, and manufacturing. They urged the US to consider India's compliance efforts and the exemptions already in place.
The US proposal is part of a broader strategy to address forced labour globally. India's response highlights the complexity of trade disputes and the need for balanced, evidence-based approaches.
