Intro
India said the report lacked evidence of unfair export advantages and failed to provide country-specific proof for its claims
New Delhi
India has asked US trade authorities to reconsider a proposed 12.5% tariff after raising concerns over a report related to forced labour issues. The government said trade disputes should be solved through discussions and bilateral negotiations instead of one-sided actions. Commerce official Brij Mohan Mishra said India takes the elimination of forced labour seriously and believes the investigation does not meet required legal standards under the US Trade Act.
India argued that the report lacks sufficient evidence linking its policies with unfair advantages for Indian exporters. It said the investigation combined several economies together without providing specific proof against each country. Officials stated that the findings relied on broad data and limited examples rather than detailed sector-based information. India also said there was no clear evidence showing that the absence of a nationwide import ban on forced labour products harmed American industries. The country requested the USTR to review the proposed measure and continue dialogue through trade channels.
Representatives from Indian industry bodies including APEDA, Ficci and CII also opposed the proposed tariff. APEDA said claims about imported rice affecting competition were not supported by strong evidence. It explained that India’s rice imports are small and serve specific market needs. The agency added that strict checks prevent the export of imported rice produced through forced labour. Industry groups warned that additional duties could increase costs for exporters businesses and consumers in both countries. They said Indian companies already follow compliance rules and that higher tariffs could affect supply chains.
The USTR had launched Section 301 investigations covering multiple economies over forced labour concerns and other trade issues. The proposed tariff has not been finalised and the agency will consider comments before making a decision. India has expressed willingness to work with US officials through consultation and cooperation to address concerns. Experts believe continued talks may help protect trade relations between the two nations while ensuring fair practices for workers and businesses. The outcome of the review will determine whether the proposed tariff moves forward or receives further changes.