America has started a major trade investigation against 60 countries of the world. The purpose of this investigation is to find out what steps have been taken by these countries to ban the import of goods made with forced labour. India is also included in this list. America says that many countries have not taken concrete steps to stop such goods from entering their markets. For this reason this investigation has been started.

US Trade Representative Jameson Greer said that there is consensus around the world against forced labour, but many governments have failed to effectively ban the import of such goods. He said that through this investigation, it will be found out what steps were taken by different countries to stop goods made from forced labor and if this was not done, then how it affected America’s industries and workers.

A day before, investigation had also started on 16 countries.
This step has been taken at a time when just a day earlier America had announced to start investigation against 16 countries. In that investigation, it is being seen whether the policies related to production and construction of these countries are becoming a burden on America’s trade or are restricting it. India’s name was also included in that list.

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Many big countries are also under investigation
Not only India but also many countries like Pakistan, China, Russia, Thailand, Bangladesh, Venezuela and Cambodia are involved in this investigation. Also Algeria, Angola, Argentina, Australia, Bahamas, Bahrain, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, European Union, Guatemala, Guyana, Honduras, Hong Kong, Indonesia, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Mexico, Morocco, New Zealand, Nicaragua, Countries like Nigeria, Norway, Oman, Peru, Philippines, Qatar, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Trinidad and Tobago, Turkey, United Arab Emirates, United Kingdom, Uruguay and Vietnam are also included.

Under which law is the investigation being conducted?
This investigation is being conducted under Section 301 (B) of the Trade Act of 1974. Under this law, America investigates those foreign policies and trade practices that harm or restrict its business.

Hearing will be held in April
The US Trade Representative said that the hearing related to this investigation will be held in the month of April. In this, opinion of people and experts associated with the industry will also be taken. This investigation has started at a time when recently the Supreme Court of America had canceled the tariffs imposed on many countries by President Donald Trump. After this, under a new provision, the Trump administration has imposed a 10 percent temporary duty on goods coming from all over the world. This system is going to be in effect till July.

Trump said that the Supreme Court’s decision was disappointing to him, but he has many other ways to implement trade policy. If needed, they can take further steps to protect American industries.

India-US Trade Deal: Very important progress has been made in the ongoing trade deal negotiations between India and America and a deal can be made between the two countries soon. According to NDTV report, despite the India-European Union (EU) Free Trade Agreement reaching the final stage at the political level, talks with the US continued.

Government sources rejected speculation that the India-EU agreement was part of a bargaining strategy with the US. Sources say that America was not mentioned even once in the limited meetings of India-EU on the last day. According to the government, the EU agreement was put forward on its own independent timeline and in its own commercial interests, and not as a response to parallel negotiations with the US.

Government has full eye on American market also

The government also clarified that a completely cautious approach has been adopted regarding America also. According to sources, the US market is at least equally important, but in many cases even more so. A source said that even during the crucial phase of India-EU talks, Indian trade negotiators were in constant touch with their American counterparts. Talks are still ongoing and India is optimistic about a positive outcome.

Impact of changes in the global trade system

Sources linked India’s trade strategy to the increasing fragmentation of the global trading system. He said that the MFN based WTO system is currently under pressure, hence countries are now giving priority to bilateral and multilateral agreements with big partners. India’s strategy is aimed at ensuring access to larger markets, stability and predictable rules for exporters and investors, and not at treating one agreement as a substitute for another.

India does not consider EU and US exports as competitors

Government sources stressed that India does not consider exports to the EU and the US as competing goals of each other. The priority of the government is to increase exports in both the markets, which will strengthen employment and investment in the country. Describing EU as the world’s largest import market, sources said that the India-EU agreement is an example of how India wants to move forward with big markets. Although the sources did not disclose about the India-US trade agreement, they said that the talks are ongoing. According to him, the possibility of a compromise in future has increased.

Trying to reassure the industry

The public signal of the government is also for the industry. According to sources, an attempt is being made to convey that the EU agreement is not a geopolitical strategy to get ahead of each other and talks with America are also in the final stages. The government emphasizes that India’s trade policy is being determined not by strategic signals but by concrete business outcomes such as market access, stable regulations and supply chain integration.