[Federal Register Volume 91, Number 108 (Friday, June 5, 2026)]
[Notices]
[Pages 34272-34345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-11296]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket Nos. USTR-2026-0265, USTR-2026-0266]
Notice of Determinations and Request for Comments Concerning
Actions in Section 301 Investigations of Acts, Policies, and Practices
of Various Economies Related to the Failure To Impose and Effectively
Enforce a Prohibition on the Importation of Goods Produced With Forced
Labor
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Notice of determinations, request for comments, and notice of
public hearings.
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SUMMARY: On March 12, 2026, the United States Trade Representative
(Trade Representative) initiated 60 investigations related to the
failure of various economies to impose and effectively enforce a
prohibition on the importation of goods produced with forced labor. The
Trade Representative has determined that 54 of the investigated
economies have failed to impose and effectively enforce a forced labor
import prohibition. The Trade Representative has determined that six of
the investigated economies have failed to effectively enforce a forced
labor import prohibition. The Trade Representative has determined that
the failure of each of the investigated economies to impose and
effectively enforce a force labor import prohibition is unreasonable
and burdens or restricts U.S. commerce. As a result of the findings in
each investigation, the Trade Representative proposes that appropriate
action includes additional duties on all products of the investigated
economies, except as provided in Annex A to this Notice. For economies
that impose a forced labor import prohibition; have taken on
commitments related to forced labor import prohibitions through an
Agreement on Reciprocal Trade; or have imposed a partial regime with
the effect of preventing the importation of certain forced labor goods,
the Trade Representative proposes 10% as the rate of additional duties.
For all other economies, the Trade Representative proposes 12.5% as the
rate of additional duties. The Trade Representative also proposes a
textile mechanism that would allow for a certain volume of apparel and
textile imports from certain economies to enter the United States at a
reduced Section 301 tariff rate. USTR seeks public comments on the
proposed actions in the investigations and will hold public hearings in
connection with the proposals.
DATES:
June 22, 2026: To be assured of consideration, submit requests to
appear at the hearings, along with a summary of the testimony, by this
date.
July 6, 2026: Submit written comments by this date.
July 7, 2026: The Section 301 Committee will convene public
hearings in the main hearing room of the U.S. International Trade
Commission, 500 E Street SW, Washington, DC 20436, beginning at 10:00
a.m., and continuing, as appropriate.
Five days after the last day of the public hearings: Submit post-
hearing rebuttal comments.
ADDRESSES: Submit documents in response to this Notice, including
written comments, rebuttal comments, and requests to appear through
USTR's electronic portal: https://comments.ustr.gov/s/. The docket
number for written comments and rebuttal comments is USTR-2026-0265.
The docket number for requests to appear is USTR-2026-0266.
FOR FURTHER INFORMATION CONTACT: For procedural questions concerning
comments, contact the USTR Section 301 support line at (202) 395-5725.
Direct all other questions regarding this notice to Megan Grimball,
Chair of the Section 301 Committee, at (202) 395-5725.
SUPPLEMENTARY INFORMATION:
I. Proceedings in the Investigations
On March 12, 2026, the Trade Representative initiated 60
investigations related to the failure of various economies to impose
and effectively enforce a prohibition on the importation of goods
produced wholly or in part with forced labor (forced labor import
prohibition), pursuant to section 302(b)(1) of the Trade Act of 1974,
as amended (Trade Act) (19 U.S.C. 2412(b)(1)). See 91 FR 12884 (March
17, 2026). The notice of initiation solicited written comments on,
inter alia: whether any economy subject to these investigations
maintains or is in the process of establishing a forced labor import
prohibition, and whether any such import prohibition is being
effectively enforced; the extent to which the failure of any economy to
establish and effectively enforce a forced labor import prohibition is
unreasonable, discriminates against U.S. goods, or constitutes a
persistent pattern of conduct that permits any form of forced or
compulsory labor; the extent to which the failure of any economy to
establish and effectively enforce a
[[Page 34273]]
forced labor import prohibition has negatively affected U.S. commerce,
such as through lost U.S. exports or economic output, lower prices for
U.S. goods, or lower wages for U.S. workers; and what action, if any,
should be taken to address these issues.
Interested persons filed over 450 written comments in response to
the notice, including post-hearing rebuttal comments. In addition, USTR
and the Section 301 Committee convened public hearings from April 28-
29, 2026, during which nearly 60 witnesses provided testimony and
responded to questions. The public submissions are available at:
https://comments.ustr.gov/s/ at docket numbers USTR-2026-0133 and USTR-
2026-0134. Transcripts of the hearings are available on USTR's website.
On March 12, 2026, the date the investigations were initiated, the
Trade Representative requested consultations with the governments of
each of the economies subject to investigation, pursuant to Section
303(a) of the Trade Act (19 U.S.C. 2413(a)). USTR held consultations
with the following economies:
1. Angola
2. Argentina
3. Australia
4. The Bahamas
5. Brazil
6. Cambodia
7. Canada
8. Chile
9. Costa Rica
10. Dominican Republic
11. Ecuador
12. Egypt
13. El Salvador
14. European Union
15. Guatemala
16. Honduras
17. India
18. Indonesia
19. Israel
20. Japan
21. Jordan
22. Kazakhstan
23. Kuwait
24. Malaysia
25. Mexico
26. Morocco
27. New Zealand
28. Norway
29. Oman
30. Pakistan
31. Peru
32. The Philippines
33. Qatar
34. Saudi Arabia
35. Singapore
36. South Africa
37. South Korea
38. Switzerland
39. Taiwan
40. Thailand
41. Trinidad and Tobago
42. T[uuml]rkiye
43. United Arab Emirates
44. United Kingdom
45. Uruguay
46. Vietnam
The governments of the remaining economies did not accept the Trade
Representative's request for consultations or were otherwise unable to
participate.
Based on information obtained during the investigations, including
the confidential government-to-government consultations, the public
comments, testimony obtained at the public hearings, the confidential
advice of the appropriate advisory committees, and the Section 301
Committee, USTR prepared a comprehensive report, Acts, Policies, and
Practices of Various Economies Related to the Failure to Impose and
Effectively Enforce a Prohibition on the Importation of Goods Produced
with Forced Labor (the ``Report''), regarding the acts, policies, and
practices of each economy under investigation. For each investigation,
the Report supports determinations that the acts, policies, and
practices of each investigated economy related to the failure to impose
and effectively enforce a forced labor import prohibition are
unreasonable and burden or restrict U.S. commerce, and are thus
actionable under Section 301 of the Trade Act. The Report is
incorporated by reference into this Notice, and is available on USTR's
website.
II. The Acts, Policies, and Practices of the Investigated Economies
Related to the Failure To Impose and Effectively Enforce a Forced Labor
Import Prohibition
Forced labor may be understood as work or service exacted from a
person under the menace of any penalty for its nonperformance and for
which the worker does not offer himself voluntarily. There is universal
international consensus that forced labor is a practice that should not
be tolerated. Numerous international instruments, such as the United
Nations Universal Declaration of Human Rights (1948); the International
Labour Organization (ILO) Abolition of Forced Labour Convention, 1957
(No. 105); the International Covenant on Civil and Political Rights
(1976); and the ILO Declaration on Fundamental Principles and Rights at
Work and its Follow-up (1998), as amended in 2022, contain provisions
seeking to eliminate forced labor. Despite this clear and longstanding
consensus, the use of forced labor across the world continues to
persist and has even increased in recent years.
The United States has long recognized that eliminating forced labor
is a moral and economic imperative and that trade is a critical means
to assist in that goal. For nearly 100 years, the United States has
prohibited the importation of goods produced with forced labor under
Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307). Commitments to
prohibit forced labor imports in the United States--Mexico--Canada
Agreement, as well as in recently signed Agreements on Reciprocal
Trade, reflect the increasing awareness of this issue and recognition
that the adverse effects of trade in forced labor goods must be
addressed.
The existence of forced labor imports in markets across the globe
has nurtured an economic system that permits the use of forced labor or
forced labor inputs, penalizing firms and economies that do not. By
prohibiting forced labor domestically and effectively enforcing its
forced labor import prohibition, the United States aims to ensure that
neither domestically produced products nor imports can gain a
competitive advantage in the U.S. market through the use of forced
labor. This helps ensure that competition in the U.S. market is based
on legitimate factors, such as quality and innovation, rather than an
artificial cost advantage from the illicit use of forced labor.
Economies that fail to impose and effectively enforce a forced
labor import prohibition fail to ensure that market competition in
their jurisdiction occurs on a level basis with respect to labor costs.
While the vast majority of economies prohibit forced labor
domestically, such measures, if effectively enforced, only discipline
domestic producers. However, as demonstrated in the Report, these
measures fail to discipline the influx of imported forced labor goods
or to prevent domestic producers from using forced labor inputs.
III. Determinations on Acts, Policies, and Practices Under
Investigation
Based on the information obtained during the investigations, as
reflected in the Report, and considering the advice of the appropriate
advisory committees and Section 301 Committee, the Trade Representative
has made the following determinations under sections 301(b) and 304(a)
of the Trade Act (19 U.S.C. 2411(b) and 2414(a)): the acts, policies,
and practices of each of the 60 economies covered in the investigations
are unreasonable and burden or restrict U.S. commerce, and thus are
actionable under section 301(b) of the Trade Act.
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In particular, the Trade Representative has determined:
The following 54 economies have failed to impose and
effectively enforce a prohibition on the importation of goods produced
with forced labor: Algeria; Angola; Argentina; Australia; the Bahamas;
Bahrain; Bangladesh; Brazil; Cambodia; Chile; China, People's Republic
of; Colombia; Costa Rica; Dominican Republic; Egypt; El Salvador;
Guatemala; Guyana; Honduras; Hong Kong, China; India; Iraq; Israel;
Japan; Jordan; Kazakhstan; Kuwait; Libya; Malaysia; Morocco; New
Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines;
Qatar; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Sri
Lanka; Switzerland; Taiwan; Thailand; Trinidad and Tobago;
T[uuml]rkiye; United Arab Emirates; United Kingdom; Uruguay; Venezuela;
and Vietnam.
The following six economies have failed to effectively
enforce a prohibition on the importation of goods produced with forced
labor: Canada; Ecuador; the European Union; Indonesia; Mexico; and
Pakistan.
Therefore, all of the investigated economies have failed
both to impose a forced labor import prohibition and to effectively
enforce such a prohibition.
The failure of each of the investigated economies to
impose and effectively enforce a forced labor import prohibition is
unreasonable because it: (1) undermines the universal aim of
eliminating forced labor; (2) permits firms that avail themselves of
forced labor to produce goods at lower cost and thereby distort market
conditions for firms that do not use forced labor; (3) undermines the
profitability of firms that do not use forced labor; and (4)
contributes to the circumvention of existing forced labor import
prohibitions.
The failure of each of the above-listed economies to
impose and effectively enforce a forced labor import prohibition
burdens or restricts U.S. commerce by subjecting U.S. producers to
unfair competition from forced labor goods both in export markets and
the U.S. market, and by displacing foreign goods produced without
forced labor or forced labor inputs into the United States and other
markets.
IV. Proposed Actions To Be Taken in the Investigations
Section 301(b) of the Trade Act provides that upon determining that
the acts, policies, and practices under investigation are actionable
and that action is appropriate, the Trade Representative shall take all
appropriate and feasible action authorized under section 301(c),
subject to the specific direction, if any, of the President regarding
such action, and all other appropriate and feasible action within the
power of the President, that the President may direct the Trade
Representative to take under section 301(b), to obtain the elimination
of that act, policy, or practice.
Section 301(c) of the Trade Act authorizes the Trade Representative
to take certain actions for purposes of carrying out the provisions of
Section 301(b). Among others, Section 301(c)(1)(B) authorizes the Trade
Representative to ``impose duties or other import restrictions'' on the
goods of the foreign country subject to the investigation.
Pursuant to Sections 301(b) and (c), the Trade Representative
proposes to determine that action is appropriate and that appropriate
action to obtain the elimination of the acts, policies, and practices
would include the imposition of ad valorem duties on all products of
the 60 economies subject to investigations, except as provided in Annex
A to this Notice. The proposed exemptions in Annex A include all
articles and parts currently subject to section 232 tariffs and raw
materials that if subject to the proposed additional tariffs could lead
to the unavailability of domestic supply. Annex A also includes
products that could cause economy-wide disruptions if subject to the
proposed additional tariffs and certain products that cannot be grown
or produced in sufficient quantities in the United States or obtained
from other sources. The proposed exemptions include informational
materials (e.g., books), donations, and accompanied baggage. Finally,
the proposed exemptions include articles for which additional tariffs
may not contribute substantially to the elimination of the investigated
acts, policies, and practices described above.
For economies that impose a forced labor import prohibition--
Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan;
for economies that have undertaken commitments in their respective
Agreements on Reciprocal Trade regarding forced labor import
prohibitions--Argentina, Bangladesh, Cambodia, Ecuador, El Salvador,
Guatemala, Indonesia, Malaysia, and Taiwan; and economies that have
imposed a partial regime with the effect of preventing the importation
of certain forced labor goods--the United Kingdom; the Trade
Representative proposes additional duties of 10% for products of these
economies. For all other economies that have failed to impose and
effectively enforce a forced labor import prohibition, the Trade
Representative proposes 12.5% as the rate of additional duties.
The Trade Representative also proposes a textile mechanism that
would allow for a certain volume of apparel and textile imports to
enter the United States at a reduced Section 301 tariff rate. Under
such a textile mechanism, the volume of reduced-duty imports from
certain trading partners would be equivalent to the quantity of exports
of textiles (e.g., U.S. produced man-made and cotton fiber textile
inputs) from the United States to that trading partner. A certain
volume of apparel and textile imports would also be allowed to enter
the United States at the reduced Section 301 rate based on the volume
of U.S. cotton and cotton products a trading partner imports from the
United States during a certain period of time.
V. Response to Significant Comments
USTR responds below to significant issues raised in the public
comments and hearings in response to the March 17, 2026, Federal
Register notice.
Response to Significant Comments Raising Legal Arguments Regarding
Findings of ``Unreasonableness''
Multiple comments raised threshold arguments that the Trade
Representative should not find that the failure of an economy to impose
and effectively enforce a prohibition on the importation of goods
produced with forced labor is unreasonable where: (1) an economy has
domestic laws prohibiting forced labor; (2) where no international
standards exists which provide an affirmative obligation on economies
to impose a forced labor import prohibition; or (3) where an economy
has otherwise made commitments to the United States with respect to
imposing and/or enforcing a forced labor import prohibition. This
section takes each of these arguments in turn.
With respect to the first argument, and as explained in the Report
and above, solely prohibiting forced labor domestically is unreasonable
because it fails to discipline the influx of forced labor goods or to
prevent domestic producers from using forced labor inputs. Thus, while
an economy may have taken steps to ensure that the condition of forced
labor is extinguished within its borders, the economy nevertheless
permits market conditions where imported forced labor goods have a
competitive advantage over U.S. goods imported into their economy.
In response to the second argument, USTR notes the Section 301
statute,
[[Page 34275]]
which governs these investigations, does not require the existence of
international standards discipling specific conduct as a prerequisite
to a finding of an unreasonable act, policy, or practice under Section
301(b) of the Trade Act. As explained in the Report, the definition of
unreasonable acts, policies, and practices in Section 301(d)
contemplates circumstances where, as here, acts, policies, and
practices of a foreign country may not be inconsistent with or violate
the international legal rights of the United States, but are
nevertheless unfair. Thus, the statutory structure of Section 301
contemplates that the Trade Representative may find unreasonable
conduct on the part of a trading partner even in the absence of
international standards or obligations.
Third, some comments argued that where an economy has made
commitments to the United States regarding forced labor import
prohibitions, including through an Agreement on Reciprocal Trade, the
Trade Representative is without basis to find that same economy's
failure to impose and effectively enforce a forced labor import
prohibition is unreasonable. USTR applauds Argentina, Bangladesh,
Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, and
Taiwan, which have undertaken commitments regarding a forced labor
import prohibition. However, commitments to take action in the future
is distinct from forbidding legally the importation of forced labor
goods, and effectively enforcing such prohibition. Until such time as
the commitment is implemented, U.S. products will continue to compete
against forced labor products that have a competitive advantage in
global markets which, among other reasons explained in the Report, is
unreasonable.
The Trade Representative fully expects economies that have
undertaken commitments related to prohibiting the importation of forced
labor goods to abide by those commitments. Accordingly, the Trade
Representative proposes that the additional duty rate to be applied in
the investigations take into account whether an economy has undertaken
such commitments.
Response to Significant Comments Regarding Actions To Be Taken in the
Investigations
A number of comments responded on potential responsive action by
the Trade Representative. These comments recommended that the Trade
Representative engage in multilateral negotiations, including at the
ILO, to encourage economies to impose a forced labor import prohibition
rather than take ``punitive measures,'' and to provide capacity
building and technical assistance, especially to developing economies,
to encourage effective enforcement of such a prohibition.
The Trade Representative proposes that taking an action is
appropriate, and that action includes the imposition of additional
duties on products of the investigated economies, in order to obtain
the elimination of the investigated acts, policies, or practices.
However, the Trade Representative will continue to consider these
comments in conjunction with any action that might be taken with
respect to the investigations.
VI. Request for Public Comments
In accordance with section 304(b) of the Trade Act (19 U.S.C.
2414(b)), USTR invites comments from interested persons with respect to
the proposed actions to be taken in the investigations. To be assured
of consideration, you must submit written comments on the proposed
actions by July 6, 2026, in accordance with the instructions in section
VIII below.
With respect to the proposed action, USTR invites comments
regarding:
The specific products to be subject to increased duties,
including whether products should be retained or removed from the scope
of the action, or whether products currently listed in Annex A should
be added to the scope of the action;
Whether products listed in Annex A are appropriately
excluded;
The level of the increase, if any, in the rate of duty;
Whether different tariff rates should be applied to an
economy where the economy has made a commitment to the United States to
impose and enforce a forced labor import prohibition; has imposed a
forced labor import prohibition; or has imposed a partial regime with
the effect of preventing the importation of certain forced labor goods.
Features of a textile mechanism, including the U.S. and
foreign products to be covered, the relative market opportunities for
each side, and the tariff rate (if any) to be applied to products
subject to that mechanism, as well as whether a similar mechanism
should apply to any other product or sector.
In considering whether certain articles should be subject to
additional duties under Section 301, USTR will consider the needs of
the U.S. economy. In commenting on the inclusion or removal of
particular tariff subheadings subject to the proposed action, USTR
requests that comments address specifically whether the products under
the tariff subheading are necessary raw materials that if subject to
the proposed additional tariffs could lead to the unavailability of
domestic supply; whether additional tariffs would cause serious
dislocations in the supply of the products and could cause economy-wide
disruptions, or other similar factors; and whether imposing additional
tariffs on products under the tariff subheading would be practicable or
effective in obtaining the elimination of the investigated acts,
policies, and practices.
Additional instructions on how to submit written comments are
provided in section VIII below.
VII. Hearing Participation
The Section 301 Committee will convene public hearings beginning on
July 7, 2026, in the main hearing room of the U.S. International Trade
Commission, 500 E Street SW, Washington, DC 20436, beginning at 10:00
a.m. The hearings may continue, as appropriate. To testify at the
hearings, you must submit a request to appear using the electronic
portal at https://comments.ustr.gov/s/, following the instructions in
Part VIII below.
Requests to appear must include a summary of testimony, and may be
accompanied by a pre-hearing submission. USTR will announce details of
the hearing at a later time. All submissions must be in English. To be
assured of consideration, USTR must receive your request to appear and
summary of the testimony by June 22, 2026.
VIII. Procedures for Written Comments
You must submit requests to appear at the hearings or written
comments using the appropriate docket on the portal at https://comments.ustr.gov/s/. All submissions must be in English.
Interested persons wishing to provide testimony at the hearings
must submit a notification of intent and summary of testimony using the
docket entitled ``Request to Appear at the Hearing on Proposed Action
in the Section 301 Investigations of Acts, Policies, and Practices of
Various Economies Related to the Failure to Impose and Effectively
Enforce a Prohibition on the Importation of Goods Produced with Forced
Labor,'' docket number USTR-2026-0266.
To submit written comments, including rebuttal comments, use the
docket on the portal entitled ``Request for Comments Concerning
Proposed Action in Section 301 Investigations of Various Economies
Related to the Failure to Impose and Effectively
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Enforce a Prohibition on the Importation of Goods Produced with Forced
Labor Rights'', docket number USTR-2026-0265.
You do not need to establish an account to submit comments. The
first screen of each docket allows you to enter identification and
contact information. Third party organizations such as law firms, trade
associations, or customs brokers, should identify the full legal name
of the organization they represent, and identify the primary point of
contact for the submission. Information fields are optional; however,
your comment or request may not be considered if insufficient
information is provided.
Fields with a gray Business Confidential Information (BCI) notation
are for BCI information which will not be made publicly available.
Fields with a green (Public) notation will be viewable by the public.
After entering the identification and contact information, you can
complete the remainder of the comment, or any portion of it by clicking
``Next.'' You may upload documents at the end of the form and indicate
whether USTR should treat the documents as business confidential or
public information.
Any page containing BCI must be clearly marked `BUSINESS
CONFIDENTIAL' on the top of that page and the submission should clearly
indicate, via brackets, highlighting, or other means, the specific
information that is BCI. If you request business confidential
treatment, you must certify in writing that disclosure of the
information would endanger trade secrets or profitability, and that the
information would not customarily be released to the public.
Parties uploading attachments containing BCI also must submit a
public version of their comments. If these procedures are not
sufficient to protect BCI or otherwise protect business interests,
please contact the USTR Section 301 support line at (202) 395-5725 to
discuss whether alternative arrangements are possible.
USTR will post attachments uploaded to the docket for public
inspection, except for properly designated BCI. You can view
submissions on USTR's electronic portal at https://comments.ustr.gov/s/.
Jennifer Thornton,
General Counsel, Office of the United States Trade Representative.
Annex A
Note: All products that are properly classified in the
provisions of the Harmonized Tariff Schedule of the United States
(HTSUS) that are listed in this Annex are not covered by the
proposed action. The product descriptions that are contained in this
Annex are provided for informational purposes only, and are not
intended to delimit in any way the scope of the action. Only items
that are properly classified in the listed provisions of the HTSUS
are excluded from the action. Any questions regarding the scope of
particular HTSUS provisions should be referred to U.S. Customs and
Border Protection. In the product descriptions, the abbreviation
``nesoi'' means ``not elsewhere specified or included''.
Notes on certain HTSUS provisions for which only a portion of the
provision is covered in this Annex, as provided in the ``Scope
Limitations'' column:
A subheading marked with ``Ex'' is defined and limited by
the product description.
A subheading marked with ``Aircraft'' includes only
articles of civil aircraft (all aircraft other than military aircraft);
their engines, parts, and components; their other parts, components,
and subassemblies; and ground flight simulators and their parts and
components, that otherwise meet the criteria of general note 6 of the
HTSUS, regardless of whether a product is entered under a provision for
which the rate of duty ``Free (C)'' appears in the ``Special'' sub-
column.
In addition to the products listed in this Annex, the proposed
action does not cover informational materials, donations, accompanied
baggage; all articles and parts of articles that are subject to section
232 tariffs; USMCA-compliant goods of Canada or Mexico; and textiles
and apparel articles that enter duty-free as a good of Costa Rica, the
Dominican Republic, El Salvador, Guatemala, Honduras, or Nicaragua
under CAFTA-DR.
BILLING CODE 3390-F4-P
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[FR Doc. 2026-11296 Filed 6-4-26; 8:45 am]
BILLING CODE 3390-F4-C