India has introduced a ban on the import of goods manufactured using forced labor by issuing a corresponding notification. This step comes as the US considers imposing tariffs as part of an investigation under Section 301.
Import Ban Provision
The Directorate General of Foreign Trade (DGFT) announced that the import of products produced wholly or partially using forced labor is prohibited. The notification dated July 13 specified that forced labor is defined as any work or service extracted from a person under the threat of punishment, where the person did not voluntarily consent, according to the International Labour Organization's (ILO) definition of forced labor.
International Context and Standards Compliance
According to an official representative of the Ministry of Commerce, this is the first instance where India sets a standard to restrict imports related to forced labor. By adopting the ILO Convention's definition verbatim, India aligns itself with international standards also applied by the United States (US) domestically, noted Agneshwar Sen, head of the trade policy department at EY India.
Forced Labor Issues
In recent years, international inspections have linked forced labor in China's Xinjiang province to sectors such as cotton, textiles, apparel, and polysilicon used in solar panels. This province is home to the Uyghurs, the largest ethnic group in Xinjiang, and under the Uyghur Forced Labor Prevention Act, goods connected to Xinjiang are presumed to be made with forced labor unless proven otherwise.
Status of US Investigation
The U.S. Trade Representative's Office (USTR) published a draft report on the forced labor investigation in June. The deadline for public comments was July 6, but Washington has not yet made a final decision on tariffs after reviewing the submitted materials. Indian Commerce Minister Rajesh Agrawal stated on Monday that the final report is expected this month.
Tariff Proposals and Legal Framework
The Section 301 investigation proposed reducing tariffs to 10 percent for certain economies, including Pakistan, Indonesia, Mexico, and Canada, among others, in recognition of their implementation of a 'partial regime' to prevent the import of goods made with forced labor. Ayari Srivastava, founder of the GTRI think tank in Delhi, emphasized that this directive establishes a legal framework, not an immediate import ban. He added that the effectiveness of this order will depend on how the government conducts investigations, what evidence is required to establish forced labor, and which products will ultimately be targeted.