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.

In America, Donald Trump administration has started a new investigation against 16 major trading partner countries including India, China and Bangladesh. This investigation is being conducted under America’s Trade Act Section 301 (Trade Act 1974). Under this law, America can increase tariff i.e. import tax on any country. This step has been taken when last month the US Supreme Court had canceled the tariffs imposed by the Trump administration, calling them illegal. After this, America is again trying to put pressure through a new investigation.

US Trade Representative Jamieson Greer said that if irregularities are found in the investigation, new tariffs could be imposed on many countries. The countries that may be affected include China, European Union, India, Japan, South Korea and Mexico. The purpose of this investigation is to look at those countries which have more production capacity or which continuously sell goods to America with large trade surpluses. America says that in such circumstances the domestic industry may suffer losses.

Which other countries were included?

Other countries included in this investigation include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway. Interestingly, America’s second largest trading partner Canada is not included in this list. The US has also said that it is going to launch a separate investigation, which will look at the possibility of banning the import of products that are made with forced labour. This investigation can cover more than 60 countries.

What action did America take against China?

Even before this, America had taken action on solar panels and other products coming from Xinjiang region of China. This step was taken under the Uyghur Forced Labor Protection Act, which was recognized during the regime of former US President Joe Biden. America alleges that people of the Uyghur Muslim community are forced to work in the Xinjiang region of China. However, China has been denying these allegations. The Trump administration has set a fast deadline for this investigation. Suggestions will be sought from the public till April 15 and a public hearing will be held around May 5. After this, there is a plan to complete the investigation by July. This step is considered to be part of the larger goal of the Trump administration, in which America wants to reduce trade deficit and strengthen domestic manufacturing.

What is section 301?

Section 301 is an important part of the US trade law Trade Act of 1974. It is used when America feels that another country is adopting wrong or unfair methods in trade. Under this law, America can start an investigation against that country and impose tariffs or other trade restrictions if necessary. According to this law, the Office of the United States Trade Representative (USTR), the trade department of the US government, investigates the trade policies of a country.

US Trade Investigation: In America, the Donald Trump administration has started a new trade investigation into industrial production abroad. This investigation started on Wednesday. According to reports, this step was taken when the US Supreme Court canceled the old import duty imposed by Trump citing economic emergency. In this new investigation, 16 big economies including India have been included.

Making the official announcement, US Trade Representative Jameson Grier said that the government will start an investigation under Section 301 of the Trade Act of 1974. After this investigation, America can impose new import tax on goods coming from these countries.

Which countries were included

Many big trading partner countries of America have been included in this investigation. These include China, European Union, Mexico, India, Japan, South Korea and Taiwan. Apart from this, Switzerland, Norway, Indonesia, Singapore, Thailand, Malaysia, Cambodia, Vietnam and Bangladesh are also under investigation.

America’s concern about production capacity

According to news agency Bloomberg, while talking to journalists, Jameson Grier said that America believes that many big trading partner countries have increased production capacity so much that it is not related to domestic and global demand. In an official statement, Grier said that America will no longer allow its industrial base to be weakened by other countries. He says that many countries are blaming America for the problem of their excessive production and are sending large quantities of goods here.

He said that it is clear from these investigations that the Trump administration wants to re-establish the essential supply system within America and create good-paying jobs for American workers.

Talk of impact on American industries

Grier further said that the Trump administration’s industrial development efforts face a big challenge. Production in many foreign economies is exceeding requirements. In many areas, America’s trading partner countries are producing more goods than they can use in their own countries. For this reason extra goods are being sent to other countries.

This is affecting America’s domestic industries and in many cases, plans to set up or expand new factories in America are also being halted. America’s production capacity in some areas has reduced significantly and in many cases it has lagged behind foreign competitors.

The deal has been done recently

Recently a bilateral trade agreement has been announced between India and America. After this agreement, the Trump administration reduced the import tax imposed on India from 50 percent to 18 percent. According to America, this decision was taken when India assured to reduce and stop oil purchases from Russia. Complete details of this trade agreement between India and America have not been revealed yet. Despite this, both the countries have called it a historic agreement. It is believed that this may strengthen the trade relations between the two countries in the future.