India has decided to ban the import of goods that are produced using forced labour, a move that comes at a time when the United States is investigating labour practices in around 60 countries, including India. The Directorate General of Foreign Trade (DGFT), which functions under the Commerce Ministry, has amended the Foreign Trade Policy (FTP) 2023 to include a new provision prohibiting such imports.
According to the notification, “The import of goods produced or manufactured, wholly or in part, through the use of forced labour is prohibited.” The new rules were notified on Monday, 13th July and will come into effect 30 days after their publication in the Official Gazette.
The decision comes as the Office of the United States Trade Representative (USTR) is carrying out investigations under Section 301 into labour practices in 60 economies, including India.
The US has alleged that these countries have not taken enough steps to stop the import of products made using forced labour. The issue has become particularly important as India and the United States continue negotiations on a proposed bilateral trade agreement.
Earlier, on 3rd June, Washington proposed imposing a 12.5% tariff on imports from 54 countries, including India, accusing them of failing to ban goods linked to forced labour. Countries such as Canada, Ecuador, Indonesia, Mexico, Pakistan and the European Union were also expected to face additional import duties.
What counts as forced labour?
The DGFT has also added a formal definition of “forced labour” under Chapter 11 of the Foreign Trade Policy.
According to the notification, forced labour means “all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily”, as defined under the International Labour Organisation’s Forced Labour Convention of 1930.
The government said the new rules empower it to prohibit the “import of goods produced or manufactured, wholly or in part, through the use of forced labour”.
