India is set to challenge the proposed US tariffs on exports before the US Trade Representative (USTR) next week, arguing that the findings related to alleged forced labor are legally flawed and could have a negative impact on US businesses and consumers.According to news agency PTI, representatives of the Commerce Ministry along with industry bodies including APEDA, FICCI, CII and ACMA will present India’s counter arguments at a public hearing to be held on July 8.
India says USTR findings ignore legal safeguards
India has already submitted a written response that USTR’s findings do not adequately consider the country’s “strong domestic legal regime”, which it describes as a structured framework combining statutory prohibitions, institutional mechanisms and ongoing policy measures aimed at preventing forced labour.The government says its regulatory system reflects a progressive approach that reduces vulnerability to forced labor in supply chains.
Industry bodies defend compliance framework
In its submission, the Confederation of Indian Industry (CII) argued that India’s policy framework does not qualify as “unfair” or “discriminatory” under Section 301(b) of the US Trade Act of 1974.It added that India has a strong constitutional and statutory system that ensures that companies cannot engage in forced labour.The Federation of Indian Chambers of Commerce and Industry (FICCI) said Indian export supply chains serving the US market operate under established compliance systems, including traceability, supplier due diligence, independent audits and responsible sourcing practices.The Automotive Component Manufacturers Association (ACMA) also said India’s auto-component sector is organised, technology-driven and governed by established labor and compliance frameworks, adding that forced labor is neither inherent nor inherent in its operations.Other organizations, including All India Spice Exporters Forum and All India Vegetables Dehydrated Manufacturers Development Association, have also submitted their responses to USTR on this issue.
US proposal and upcoming hearing
Last month, the USTR proposed an additional 12.5 percent tariff on Indian goods under forced-labor import rules, invoking Section 301 of the Trade Act of 1974. Many other countries were also included in this proposal.The move is part of a broader set of trade actions that the US says are aimed at addressing supply chain practices linked to forced labour.Section 301 is considered one of the most powerful US unilateral trade tools, allowing the investigation of foreign trade practices and the imposition of tariffs or sanctions.India has already said in its pleas that the findings are not in line with its legal and institutional safeguards and the proposed tariffs will be harmful not only for Indian exporters but also for US businesses and consumers.
