India asks America to review proposed 12.5% tariff, conveys strong reservations over USTR's forced labour findings
India has maintained that trade-related differences with the United States should be addressed through bilateral negotiations rather than unilateral actions, calling on the US Trade
India has maintained that trade-related differences with the United States should be addressed through bilateral negotiations rather than unilateral actions, calling on the US Trade Representative (USTR) to reconsider its proposed 12.5% tariff. New Delhi argued that the Section 301 investigation into alleged forced labour contains inconsistencies. Appearing at a public hearing, Brij Mohan Mishra, Joint Secretary in the Department of Commerce, conveyed India's strong reservations over the USTR's findings, highlighting the country's constructive engagement on issues related to forced labour. What did Department of Commerce say on USTR's findings? India also reaffirmed that eliminating forced labour is a constitutional commitment and an obligation it upholds under international law and established principles. "India would like to highlight its concerns with the USTR's report and findings against India," he said. The USTR has not satisfied the relevant legal standards under Section 301(d) of the Trade Act. A mere absence of a forced labour import prohibition without evidentiary basis of other statutory requirements cannot be construed as unreasonable under Section 301, he added. The USTR determination does not provide a rationale for countrywide tariffs and impermissibly clubs 46 economies (including India) into a single category, according to the written transcript of the hearing, held on July 8 and published on the USTR website. Also Read | Apple sues OpenAI over alleged theft of trade secrets The USTR's Section 301 investigation focuses on whether countries have failed to prohibit and effectively prevent the import of goods produced using forced labour.
India argued that the methodology adopted in the investigation is fundamentally flawed, contending that the findings are based on case studies involving only a limited number of economies while drawing broader conclusions from overall trade patterns. According to India, the report relies on aggregate trade data and assumes that goods imported into an economy and flagged for potential links to forced labour are subsequently exported to the United States, without presenting sector-specific or country-specific evidence or establishing direct links to forced labour. Also Read | Trump administration increasingly pessimistic of clinching Iran nuclear deal In relation to India, there is inadequate and insufficient evidence that lack of forced labour import ban causes an unfair competitive advantage to the detriment of the American industry, he said. "In conclusion, it is submitted that the USTR reconsider the imposition of tariff in light of the identified inconsistencies in the report in the Federal Register notice. We ask any trade problems be addressed within the framework of the India-US bilateral trade negotiation, not through unilateral measures such as this investigation," he added. India remains willing to engage constructively with the USTR through consultation and dialogue on any specific concern. ‘The present investigation against India may be rescinded without prejudice’ Making submissions on behalf of Agricultural and Processed Food Products Export Development Authority (APEDA), Shreyans Gupta, First Secretary in the Embassy of India in Washington, DC, said that the export promotion body objects to the USTR's observations on the import of rice allegedly made with forced labour into India and the alleged impact on such imports in distorting the competitive conditions for the export and domestic sale of rice produced in the US.
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