TAPP Responds to USTR Request for Comments on Section 301 Investigations of Forced Labor

The Trade Alliance to Promote Prosperity recently responded to “Request for Comments on Section 301 Investigations of Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor” posted by the U.S. Trade Representative on the agency’s comments portal.

In part, TAPP wrote:

“The failure of China to establish — and meaningfully enforce — a prohibition on the importation of goods produced with forced or compulsory labor can reasonably be characterized, in trade-policy terms, as unreasonable conduct, a source of de facto discrimination against U.S. goods, and part of a persistent pattern that permits forced labor to affect global commerce…

USTR should ensure that the scope of this investigation encompasses not only systemic policies and practices of the Government of China, but also specific commercial arrangements and supply-chain structures that may enable goods produced with forced or compulsory labor to enter global commerce. In this regard, for example, USTR should consider examining allegations reported in publicly available sources concerning Milwaukee Tool’s sourcing practices in China, including claims that certain products were manufactured at facilities associated with coercive labor programs. Including such examples within the investigative scope, whatever the findings might be, would help ensure that the review captures the full range of conduct that may affect the effectiveness of existing U.S. trade remedies, including tariff measures intended to address unfair competitive advantages…

Additionally, USTR should consider applying a degree of tariff flexibility for companies that have consistently reduced their dependency on China. This could help support those who are proactively shifting their supply chains and thereby addressing concerns such as forced labor…

Read TAPP’s full comments here.