Nigeria has come under trade scrutiny from the US as Washington opens an investigation into whether several economies, including Africa’s largest economy, have adequate laws to block the importation of goods produced with forced labour, ENigeria Newspaper has learnt.
ENigeria Newspaper gathered that the Office of the United States Trade Representative (USTR) initiated the investigation, which focuses on 60 economies whose trade practices will be examined in accordance with Section 301 of the Trade Act of 1974. The inquiry will ascertain whether their import laws pertaining to forced labour put American companies at a disadvantage.
According to a notice issued by the agency and signed by its General Counsel and obtained by ENigeria Newspaper, Jennifer Thornton, the inquiry will assess whether governments have failed to establish or enforce strict bans on goods made with forced labour.
“The Trade Representative is initiating investigations with respect to acts, policies, and practices of the economies listed in Annex A of this notice related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour,” the notice stated in part.
The USTR clarified that the action is a component of Washington’s ongoing initiative to keep exploitative labour practices out of global trade networks. It emphasized that the strategy has been ingrained in US trade law for many years.
“For almost 100 years, US law has prohibited the importation of goods mined, produced, or manufactured in whole or in part with forced labour,” the notice stated, noting that the rule is tied to humanitarian, foreign policy and national security concerns.
Officials said goods produced under forced labour conditions often enter global supply chains and may still circulate in markets where import restrictions do not exist.
“In markets without forced labour import prohibitions, US exports are required to compete with products produced wholly or in part with forced labour,” the notice said.
The governments of the nations included in the investigation — Nigeria, China, India, Brazil, South Africa, the United Kingdom, Canada, and the European Union — will be consulted during the review process. Businesses, labour unions, and other interested parties have also been asked to provide proof of the efficacy of the measures taken by these economies to limit imports of forced labour.
Public hearings on the matter are scheduled to begin on April 28 at the United States International Trade Commission in Washington, DC, and could run until May 1. Written submissions must be filed through the USTR’s electronic portal by April 15.
The United States may impose trade remedies, such as higher tariffs or import restrictions, if the investigation finds that the actions of the economies in question impair American commerce or distort fair trade.
According to USTR-cited global assessments, forced labour is still pervasive. According to estimates from the International Labour Organization, 28 million people, roughly 3.5 out of every 1,000 people, were ensnared in forced labour globally as of 2021. The USTR claims that the practice taints entire international supply networks.
