USTR probes Bangladesh, 59 others in crackdown on forced labour

The Office of the United States Trade Representative (USTR) has launched investigations into 60 economies, including Bangladesh, under Section 301 of the Trade Act of 1974, over alleged failures to take action against forced labour practices linked to trade.

The economies under investigation are among the United States' largest trading partners. They include the United Kingdom, United Arab Emirates, Pakistan, Sri Lanka, Saudi Arabia, Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, according to a statement issued from Washington yesterday (12 March).

The main BRICS economies – Brazil, Russia, India, China, and South Africa – are also included in the probes.

The forced-labour probes follow separate Section 301 investigations launched on Wednesday targeting excess industrial capacity in 16 economies, including Bangladesh, India, China, Australia, Indonesia, Japan, Malaysia, Singapore, South Korea, Switzerland, and Thailand.

According to the USTR, the investigations on forced labour will examine whether the acts, policies, and practices of these economies – particularly their failure to impose and effectively enforce bans on imports of goods produced with forced labour – are "unreasonable or discriminatory" and whether they burden or restrict US commerce.

For Bangladesh, apparel remains the country's major export item to the US and is a highly labour-intensive sector.

Mahmud Hasan Khan Babu, president of the BGMEA, told The Business Standard that there is no forced labour in Bangladesh's apparel sector.

He also argued that not only the apparel industry, but also other formal sectors in the country are currently free from forced labour.

However, when asked why the USTR had launched investigations on two different issues on consecutive days and whether there might be other motives behind the move, he declined to comment.

Another apparel sector leader, speaking on condition of anonymity, said the move could signal pressure from the US. "Considering these developments, it appears that the United States wants to put pressure on Bangladesh or other countries," he said.

Attempts to contact two officials of the Ministry of Labour and Employment for comments on the matter were unsuccessful.

USTR's reasoning

USTR Ambassador Jamieson Greer, in the statement, said, "Despite the international consensus against forced labour, governments have failed to impose and effectively enforce measures banning goods produced with forced labour from entering their markets."

"For too long, American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labour," he added.

Greer said the investigations would assess whether foreign governments have taken sufficient steps to prevent the importation of goods produced with forced labour and how such practices affect US workers and businesses.

The latest probes appear to provide an alternative route to replace at least some of the "reciprocal tariffs" introduced by US President Donald Trump, which were struck down by the US Supreme Court last month.

The court ruled that the former president had exceeded his authority in imposing the tariffs. Following the ruling, Trump introduced a 10% global blanket tariff under Section 122 of the Trade Act of 1974 and warned it could be increased to 15%.

According to the statement, Section 301 of the Trade Act of 1974 is designed to address unfair foreign practices affecting US commerce.

Under Section 301, the USTR can respond to foreign government practices that are considered unjustifiable, unreasonable, or discriminatory and that restrict US commerce. The agency is also allowed to self-initiate such investigations under Section 302(b) of the Trade Act of 1974.

The statement said that after considering the advice of the inter-agency Section 301 Committee and consulting with appropriate advisory committees, the USTR has initiated these investigations.

It further noted that the USTR has requested consultations with the governments of the economies in connection with the investigations.

Public hearings on the matter are scheduled for 28 April 2026. Interested parties have been asked to submit written comments, requests to appear at the hearing, and summaries of testimony by 15 April, the USTR statement said.