As USTR cites failure to prevent forced imports
THE PHILIPPINES face hope of additional US prices, after US Trade USTR’s (USTR) investigation found it and 59 other economies had not done enough to curb the importation of manufactured goods.
In its report on the Section 301 investigation, USTR proposed additional duties on imports from 60 economies, citing what it described as inadequate measures to prevent imports of goods manufactured under duress.
“The results of this investigation show that the actions, policies and practices of the Philippines related to the failure to enforce and enforce the ban on forced labor imports are unreasonable and burdensome or hinder US trade,” it said.
Last March, the USTR began an investigation into forced labor in 60 economies under Section 301 of the US Trade Act of 1974.
“The failure of our most important trading partners to address forced imports is unacceptable,” USTR Ambassador Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete on a global level playing field. We will not tolerate this division any longer.”
Under the proposal, USTR said economies without measures against forced labor sales would face an additional 12.5% tax.
The USTR has identified 54 economies, including the Philippines, Australia, Cambodia, China, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam, as having failed to prevent the importation of manufactured goods.
In other economies it has said that a 10% tax will be added.
It identified six economies: Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan as “failing to effectively enforce the import ban.” goods produced under compulsion.”
“Some trading partners have taken the first steps to prevent the importation of forced goods, including the USMCA (US-Mexico-Canada Agreement) and the commitment to Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not encourage the opposite and concentrate forced labor around the world,” said Mr. Greer.
It said the failure of 60 economies to enforce and enforce the ban on the importation of labor into the country is “absurd” as it undermines the goal of ending forced labor globally; allows companies to use forced labor to produce goods at a lower cost and distorts market conditions for firms that do not use forced labor; and undermines profitability of companies that do not use forced labor.
USTR said it is also proposing a textile route that would allow a certain volume of clothing and textiles to enter the US at a reduced rate of duty, although duties and volumes were not disclosed.
The announcement comes ahead of the July 24 expiration of a temporary 10% tariff imposed by the Trump administration on February 20, the day the Supreme Court overturned US President Donald J. Trump’s State of Emergency. The Law of Economic Power.
In the case of forced labor, USTR said several products including energy, rare earths and other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, and organics will not be taxed. chemicals and aircraft parts.
USTR said it will accept public comments on the proposed tariffs and other remedies until July 6, with the public. A hearing is scheduled for July 7.
‘END IN THE HOUSE’
A new tax on Philippine exports could be the last “funeral nail” for exporters already struggling with rising costs amid political tensions, Foreign Buyers Association of the Philippines (FOBAP) President Robert M. Young said.
“Right now, we’re already fighting to be competitive, in terms of pricing and pricing,” he said by phone.
“Therefore, [the tariffs] it will add to the cost [of doing business] and consumers may be turned off. The Philippines may be wiped out of their (American firms’) procurement process already.”
He noted that many FOBAP members are located in export zones, such as free trade zones and special economic zones, which operate under federal authorities that oversee compliance with labor laws.
Mr. Young said members of this group sign a contract agreement with their American buyers for every purchase order to ensure that their production methods are in compliance with international laws and regulations.
Jose Sonny G. Matula, president of the Federation of Free Workers, said USTR’s findings serve as a “wake-up call” for the Philippine government to strengthen labor inspections and due diligence practices.
“The key issue is not just whether forced labor exists, but whether government agencies are effectively identifying, investigating, and preventing high-risk sectors and supply chains,” he said in a Viber message. – Beatriz Marie D. Cruz with Reuters
