July 9: The Federation of Indian Chambers of Commerce and Industry (FICCI) has urged the United States to reconsider its proposed economy-wide tariff on Indian imports, stating that an evidence-based and sector-specific approach would be more effective in addressing concerns related to forced labour.
Presenting the views of Indian industry during a hearing before the US Trade Representative (USTR), FICCI reaffirmed its commitment to eliminating forced labour from global supply chains. The industry body, however, expressed concerns over the proposal to impose a uniform 12.5% tariff across all Indian products and sectors, arguing that such a measure does not distinguish between compliant and non-compliant industries.
FICCI stressed that targeted enforcement based on credible evidence, combined with stronger collaboration between governments and businesses, would better address labour rights issues while minimising disruptions to legitimate trade. It also noted that broad-based tariffs could adversely affect businesses, supply chains, and consumers without effectively addressing the underlying concerns.
The industry body called for continued dialogue between India and the United States to strengthen trade relations while promoting responsible business practices and internationally accepted labour standards.