USTR Launches Forced-Labor-Related Investigations into 60 Economies
The U.S. Trade Representative (USTR) found that 60 economies have shortcomings in enforcing bans on imports of goods made with forced labor, which it considers harmful to U.S. business interests. Sellers should closely monitor supply-chain compliance to mitigate potential import restrictions and trade-sanction risks.
What are the key facts?
- 160 economies
- 2Section 301 investigations
- 3Weak enforcement of forced-labor import bans
What happened?
Under Section 301 of the Trade Act of 1974, the U.S. Trade Representative (USTR) determined that 60 economies had failed to effectively enforce the ban on imports of goods made with forced labor. Their policies and enforcement practices were deemed unreasonable and burdensome to U.S. commerce, prompting the USTR to take action to protect U.S. interests. The investigation underscores a zero-tolerance policy toward goods made with forced labor and is expected to intensify oversight of noncompliant businesses.
What does this mean for cross-border sellers?
Strengthen supply-chain traceability and ensure all goods exported to the United States comply with forced-labor regulations. Otherwise, shipments may be detained or denied entry. Highest priority: identify and audit every supplier for compliance to support smooth customs clearance.