Why is it in the news?
US launched a Section 301 investigation into forced labour in supply chains.
The probe includes India and 59 other economies.
Category: IR
Important Points:
● The investigation is under Section 301 of US Trade Act, 1974.
● It targets goods produced using forced labour.
● It covers 60 economies including India, China, EU and Japan.
● It aims to address unfair trade advantages.
● It may lead to tariffs or trade restrictions.
● India prohibits forced labour under Bonded Labour System Act, 1976.
● Sectors like textiles, solar and electronics may face scrutiny.
● It focuses on supply chains using imported intermediate goods.
● Exporters may need strict traceability mechanisms.