The United States has proposed additional tariffs ranging from 10 per cent to 12.5 per cent on imports from Bangladesh and 59 other economies following investigations into the alleged failure of countries to prohibit and effectively enforce bans on the import of goods produced with forced labour.
The Office of the United States Trade Representative in a notification issued on Tuesday said that the acts, policies and practices of the 60 investigated economies were actionable under Section 301(b) of the US Trade Act.
The USTR invited public comments on the proposed actions until July 6, and public hearings were scheduled to begin on July 7.
Interested parties seeking to appear at the hearings must submit requests by June 22, the notification said.
Businesses and economists expressed concern that imposing an additional tariff on Bangladeshi products could impact the country’s export sector, which is currently grappling with domestic and global pressure.
They also urged the government to prepare for appeal with proper documents at the due time.
Bangladesh currently enjoys around 15 per cent or more on particular products in exporting to the US, along with another universal tariff of 10 per cent, which would be expired on July 24.
The US on March 12 launched the investigations into 60 economies, including Bangladesh, to examine policies and practices ‘related to the failure to impose and effectively enforce a ban on the importation of goods produced with forced labour,’ and determine whether such practices burden or restrict US commerce.
‘The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,’ US Trade Representative Jamieson Greer said.
Greer said that the US would no longer tolerate the disparity, adding that some trading partners had taken initial steps to prevent the importation of goods produced with forced labour, including through the USMCA and commitments under Agreements on Reciprocal Trade.
However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally.
As a result of the determinations, the USTR proposed responsive actions for public comment, including additional duties on all products from the investigated economies.
Commerce minister Khandakar Abdul Muktadir told New Age that Bangladesh had responded appropriately to the investigations launched by the USTR in March over alleged forced labour and overcapacity issues.
He said that although the USTR had proposed additional tariffs after concluding the investigations, no decision had yet been taken regarding the imposition of such measures.
‘However, if any action is eventually taken, Bangladesh will respond jointly an appropriately,’ the minister said.
Referring to future bilateral discussions, the minister said that Bangladesh would present proper data and evidence to demonstrate that the country did not support forced labour in any form.
According to the USTR announcement, countries that already imposed a forced labour import prohibition, had committed to enforce such measures through an agreement on reciprocal trade, or maintained a partial regime preventing the importation of certain forced labour goods would face an additional 10 per cent duty.
All other economies would face a proposed additional duty rate of 12.5 per cent.
Bangladesh was listed among 54 economies that, according to the USTR, failed both to impose and effectively enforce prohibitions on the importation of goods produced with forced labour.
The list also included countries including Australia, Bahrain, Brazil, Cambodia, Egypt, Hong Kong, China, India, Japan, Malaysia, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Türkiye, United Arab Emirates, United Kingdom, and Vietnam.
The six other economies, Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, were found to have failed to effectively enforce such prohibitions.
The USTR also proposed a textile mechanism that would allow a certain volume of apparel and textile imports from selected economies to enter the United States at a reduced Section 301 tariff rate.
The announcement said that Section 301 of the Trade Act of 1974 was designed to address unfair foreign acts, policies or practices affecting US commerce and could be used to respond to acts considered unjustifiable, unreasonable or discriminatory.
The USTR said that the practices burdened US commerce by exposing American producers to unfair competition from forced labour goods in both domestic and export markets.
Bangladesh Garment Manufacturers and Exporters Association senior vice-president Inamul Haq Khan said that they were still unclear about the USTR statement.
‘We are seeking an appointment from the US embassy to discuss the matter,’ he said.
He also said that it might me be a mechanism to impose tariffs on the US trading partner as the universal 10 per cent tariff announced earlier to be expired on July 22.
‘We urge the government to appeal within the deadline, with proper documents showing that Bangladesh is free from forced labour,’ said Shovon Islam, managing director of Sparrow Group.
Research and Policy Integration for Development chairman and economist M Abdur Razzaque, chairman of the said that it has been a matter of concern that the USTR proposal reflects a growing tendency to use tariff threats to advance regulatory norms that have not been established through multilateral agreement.
While combating forced labour is a legitimate and widely shared objective, making market access conditional on a specific US-preferred regulatory model risks weakening the MFN-based trading system and further fragmenting global trade governance, he said.
He also said that Bangladesh needs to project itself as reform-oriented and cooperative while avoiding unnecessary concessions or confrontation.
