The Office of the United States Trade Representative (USTR) recently initiated investigations under Section 301 of the Trade Act of 1974, examining whether certain countries have failed to impose and effectively enforce prohibitions on the importation of goods produced with forced labor. These investigations assess if these countries’ forced labor import policies are unreasonable, discriminatory, or negatively impact U.S. commerce.
WHAT FORCED LABOR PRACTICES ARE BEING EXAMINED?
The review examines whether governments have implemented and effectively enforced measures that prohibit the importation of goods produced wholly or in part using forced labor. U.S. law prohibits the importation of goods produced with forced labor, reflecting both humanitarian concerns and the potential economic impact on domestic producers competing with goods produced under exploitative labor conditions. The investigation targets 60 countries including some of the U.S.’s largest trading partners: Canada, India, China, Mexico, Norway, Israel, and Japan, as well as the European Union.
READ THE FULL NOTICE HERE: USTR Initiates 60 Section 301 Investigations Relating to Failures to Take Action on Forced Labor
According to the Federal Register notice initiating the investigation, firms using forced labor may incur lower labor costs, which can allow those goods to be sold at artificially lower prices. This dynamic may influence competition across global supply chains and international markets.
WHAT HAPPENS NEXT IN THE SECTION 301 INVESTIGATION?
The USTR has requested consultations with the governments included in the investigation and is seeking public comments related to the issues under review. Written comments and requests to appear at the hearing must be submitted by April 15, 2026. Public hearings are scheduled to begin on April 28, 2026, at the U.S. International Trade Commission. Following the comment and hearing process, the Section 301 Committee will review the information submitted before making any determination regarding potential trade actions.
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