June 5, 2026
NEW DELHI – The United States Trade Representative (USTR) has placed India under scrutiny in a fresh Section 301 investigation, concluding that the country has not put in place and effectively enforced restrictions on the import of goods produced through forced labour. The findings, released as part of a review covering 60 economies, state that India’s existing approach is actionable under Section 301 of the US Trade Act of 1974.
The investigation assessed the policies and practices of 60 economies that collectively account for more than 99 per cent of US imports.
USTR cites enforcement gaps
According to the report, India was found to have failed to establish and effectively implement a prohibition on imports linked to forced labour. The USTR said this shortcoming falls within the scope of action under Section 301.
The USTR determined that the absence of such measures is unreasonable and has the effect of burdening or restricting US commerce.
What is Section 301?
Section 301 is a provision of the US Trade Act of 1974 that authorises the United States Trade Representative (USTR) to investigate foreign government policies, practices or regulations that are considered unfair, unreasonable or discriminatory and that burden or restrict US commerce. Following an investigation, the USTR can recommend measures such as additional tariffs, import restrictions, suspension of trade concessions or other trade actions against the country concerned.
Findings cover dozens of economies
The USTR said India was among 54 economies that do not have a legal prohibition on the import of goods produced wholly or partly through forced labour.
The report separately identified six economies: Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, as jurisdictions that have such prohibitions in place but, according to the USTR, have not enforced them effectively.
Investigation launched in 2026
The review was initiated in March 2026 and focused on economies from which more than 99 per cent of US imports originate.
According to the report, the absence of forced labour import restrictions can affect market conditions, create competitive imbalances and weaken international efforts aimed at eliminating forced labour from global supply chains.
The USTR argued that such failures can result in unfair competition for American producers in both domestic and international markets.
USTR outlines broader concerns
The report stated that economies which do not prohibit or effectively enforce restrictions on forced labour-linked imports contribute to trade distortions and undermine efforts to prevent the circulation of such goods.
Based on its findings, the USTR concluded that India’s existing framework concerning imports allegedly linked to forced labour is unreasonable and places restrictions on US commercial interests.