The United States Trade Representative has launched investigations into alleged unfair trade practices in 60 economies, including Pakistan. The inquiry will examine whether these governments have failed to introduce and effectively enforce restrictions on the import of goods made through forced labour.
The investigation covers several major US trading partners, among them the European Union, China, Japan, India, Mexico, South Korea, Singapore, Switzerland, Taiwan, Pakistan, and Vietnam. This development comes shortly after Pakistan and the United States signalled interest in expanding economic cooperation during recent discussions in Washington.
The move could lead to trade penalties, including possible new tariffs, as the US administration looks for alternative trade measures. For Pakistan, this is particularly significant because the United States remains its largest export market, making any trade restrictions potentially difficult for local businesses to absorb.
US officials have argued that inadequate action by foreign governments against forced labour harms American workers and companies by allowing foreign producers to benefit from lower costs. The investigation has been initiated under Section 301 of the Trade Act of 1974, which authorises the US Trade Representative to examine foreign government practices considered unjustifiable or unreasonable in their impact on US commerce.
The process has begun following consultations with relevant government and advisory bodies. The next stage will involve consultations with the governments concerned, while hearings are scheduled for April 28, 2026. Written submissions, requests to participate, and summaries of testimony must be filed by April 15, 2026.
