Section 301 Investigation into Forced Labor Practices — US Allies and FTA Partners Under Scrutiny
On March 12, 2026, the United States Trade Representative (USTR) published its Initiation of Section 301 Investigations into the practices of various economies, including that of US allies and long-standing trade partners, for their alleged failure to prohibit the importation of goods produced with forced labor.
What Can the USTR Do?
Section 301, formally known as Title III of the Trade Act of 1974 or “Relief from Unfair Trade Practices,” authorizes the USTR to investigate acts, policies, or practices that it considers unreasonable, discriminatory, or burdensome to US commerce. The USTR goes on to say that practices which permit forced or compulsory labor meet the criteria of unreasonable, unfair, and inequitable. If the USTR concludes that an act is “unjustifiable” and “burdens or restricts” US commerce, action is mandatory. On the other hand, if the USTR determines that such act is only “unreasonable or discriminatory” and “burdens or restricts” US commerce, action is discretionary. In either case, when the USTR aims to remedy a foreign trade practice, the agency can (1) impose tariffs or other import restrictions, (2) withdraw or suspend trade agreement concessions, or (3) enter into a binding agreement with the foreign government to either cease the conduct in question or compensate the US. Additionally, the statute requires that when USTR’s action is mandatory, the agency’s action should “affect goods or services of the foreign country in an amount that is equivalent in value to the burden or restriction […]
