Trade Strategy to Combat Forced Labor Issued

The Office of the U.S. Trade Representative recently issued its first-ever strategy for using trade tools to combat forced labor. This document discusses the actions the U.S. government is already taking on this issue as well as areas for potential future action.

According to USTR, the four goals guiding the implementation of this strategy are (1) developing equitable trade policy through inclusive processes, (2) fully utilizing all available trade tools to combat forced labor, (3) developing and implementing innovative trade tools to combat forced labor, and (4) increasing multilateral action with trading partners to combat forced labor as an unfair trade practice.

The report details the actions that USTR “has undertaken and will consider continuing” to meet these goals, highlights of which include the following.

– monitoring areas of potential circumvention of the statutory prohibition on imports made with forced labor, including by de minimis shipments, and considering ways to improve implementation and enforcement of that prohibition

– working with Canada and Mexico to implement the USMCA commitments to prohibit imports of goods made with forced labor and to coordinate enforcement activities

– supporting the Department of Justice in increasing criminal prosecutions related to forced labor

– supporting the Department of Commerce in implementing the human rights crossover rule in exports and updated antidumping/countervailing duty regulations

– working with the departments of State and the Treasury to examine how to utilize sanctions authority to further address forced labor

– developing new trade arrangements that include high-standard commitments and outcomes on issues like addressing forced labor through supply chains

– encouraging trading partners to incorporate their own prohibitions on imports of goods made with forced labor

Sandler, Travis & Rosenberg offers a comprehensive suite of services to help companies address forced labor concerns around the world, including supply chain reviews, due diligence strategies, and proactive remediation. ST&R also maintains a frequently updated web page offering a broad range of information on forced labor-related efforts in the U.S. and around the world. For more information, please contact ST&R at supplychainvisibility@strtrade.com.