USTR Finds Goods Produced with Forced Labor Create Uneven Playing Field for U.S. Rice Farmers

WASHINGTON, DC – Yesterday, the U.S. Trade Representative (USTR) published a report summarizing findings from its Section 301 investigation into the forced-labor policies, acts, and practices of 60 countries, including those of interest to the rice industry such as India, Thailand, Pakistan, Vietnam, and the EU. 

In its investigation, USTR found that all 60 countries fail to either prohibit or enforce the agency’s own bans on imported goods made with forced labor.  As a result, USTR recommends new tariffs on many of the U.S. imported goods ranging from 10-12.5 percent.  Notably for rice, the concluded report highlights imported rice from Burma (Myanmar) demonstrates how the failure of a country to prohibit the import of goods made with forced labor can negatively impact the competitiveness of U.S. rice exports. 

In its press release, U.S. Trade Representative Jamieson Greer rightfully pointed out that "failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable.  This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.  We will no longer tolerate this disparity."

USTR proposed tariffs on all countries under its investigation and would include rice.  More specifically, USTR proposes only a 10 percent tariff be imposed for countries that impose a forced labor import prohibition and have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or countries that have imposed a partial regime with the effect of preventing the importation of certain forced labor goods.  For all other countries, USTR proposes a 12.5 percent tariff.

“While USA Rice would like to see a higher than 12.5 percent tariff imposed on rice imports from the major exporters, and especially those bad actors like India, Thailand, Vietnam, and Pakistan, we appreciate the Trump Administration’s swift investigation and proposed use of tariffs to maintain critical leverage in negotiations and to help level the playing field for American producers,” said USA Rice President & CEO Peter Bachmann.

USA Rice submitted public comments to the USTR during its investigation highlighting certain countries found to employ child or forced labor for the cultivation and/or processing of rice by the U.S. Department of Labor's 2024 List of Goods Produced by Child Labor or Forced Labor.  USA Rice advocated for additional tariffs imposed for rice imports from the countries under investigation.