Pakistan fights US forced labour probe
Pakistan is pursuing a case in Washington in the backdrop of the withdrawal of reciprocal tariffs imposed by the Trump administration. Officials said a public hearing began on April 28 and will continue until May 14, 2026.
Pakistan's ambassador to the United States is pursuing the case along with representatives of the textile and commerce ministries and the Ministry of Human Resource Development. The government has imposed a ban on imported goods produced or manufactured by forced labour to avoid the tariff imposed by the Trump administration. Pakistan is one of 60 economies facing investigations by the Trump administration after the US Supreme Court withdrew the reciprocal tariff. In a recent high-level meeting of the steering committee, the commerce secretary briefed that following the withdrawal, the US Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 regarding acts, policies and practices of 60 economies (including Pakistan) related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
The USTR is examining national laws, regulations and enforcement practices of these 60 economies related to the prohibition of forced labour imports. Questions raised include whether any economy subject to these investigations maintains or is in the process of establishing a forced labour import prohibition, and whether any such prohibition is being effectively enforced; whether the failure to establish and enforce such a prohibition is unreasonable, discriminates against US goods, or constitutes a persistent pattern of conduct permitting forced or compulsory labour; and how such failure has negatively affected US commerce. The USTR also seeks input on what action should be taken, including duties or import restrictions on products from these economies.
The commerce secretary further apprised the committee that three consultative sessions were held with the secretary for overseas Pakistanis and representatives of the textiles and apparel industry to deliberate on Pakistan's draft response. After thorough consultation, it was agreed that written statements would be submitted to the USTR from both the public and the textiles sector, and that a process would be initiated to prohibit importation of goods mined, produced or manufactured with forced labour under the Import Policy Order as determined by the International Labour Organisation (ILO). All written statements were deliberated to avoid divergences between public and private stakeholders.
The SAPM for industries inquired whether the draft submission addressed concerns raised a couple of years ago regarding forced labour on a few cotton farms in Sindh. The director general (textile) shared that, as a similar concern was also reported in the US Department of Labour's 2024 report on the 'List of Goods Produced by Child Labour or Forced Labour' (referencing an ILO report published in 2004), the draft encompasses key initiatives undertaken by the government and industry in collaboration with international development partners and global brands. These include Better Cotton Initiatives, organic and regenerative cotton, and traceability systems to align the local cotton value chain with global regulations on supply?chain traceability, elimination of forced and compulsory labour, and strengthening of farmer livelihoods.
The secretary of the Ministry of Overseas Pakistanis and Human Resource Development suggested a few changes to the draft. While Pakistan maintains strict enforcement on eliminating forced labour at the manufacturing level, the government is also aligning its trade?related regulations with emerging global standards concerning the importation of goods produced with forced labour. The secretary further shared a proposed amendment under the Import Policy Order of the commerce ministry to prohibit import of goods made with forced labour. The chair desired that the necessary process be immediately initiated by the Ministry of OPHRD, enabling the commerce ministry to move a summary for consideration of the amendment by the Economic Coordination Committee (ECC) of the cabinet.
During the meeting, it was decided that the draft submission from the government of Pakistan to the USTR investigation, as presented by the commerce ministry with slight amendments suggested by the secretary of OPHRD, was approved by the steering committee for onward submission to the USTR by the Pakistani embassy via its online portal. The steering committee also recommended that Pakistan's ambassador to the US attend the public hearing at the US International Trade Commission (USITC) in person for an oral statement on behalf of the government, accompanied by the commercial attache in Washington, the director general (textile) of the commerce ministry, and a representative of the Ministry of Overseas Pakistanis.