U.S. USTR launches Section 301 probe on forced labor; government vows "joint public–private response"

[The Financial News]
The Office of the United States Trade Representative (USTR) has launched an investigation under Section 301 of the Trade Act into forced labor practices, targeting 60 trading partners including South Korea. The Korean government has announced it will respond through a joint public–private task force.
According to the Ministry of Trade, Industry and Energy of the Republic of Korea on the 13th, the investigation initiated by the Office of the United States Trade Representative (USTR) on the 12th (local time) will determine whether a trading partner's failure to ban imports of goods produced with forced labor is unreasonable or discriminatory, and whether it burdens or restricts U.S. commerce.
USTR has requested consultations with 60 trading partners, including South Korea, China, the European Union (EU), and Japan. The Korean government has received the consultation request and plans to accept written comments from stakeholders until April 15, followed by a public hearing on April 28.
The U.S. government had previously stated that, following the court ruling that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, it would restore tariff measures by using provisions such as Sections 122 and 301 of the Trade Act. The Korean government said, "We plan to consult closely with the U.S. side under the principles of maintaining the balance of benefits under the existing Korea–U.S. tariff agreement and ensuring treatment that is no less favorable than that accorded to other major countries."
Regarding the series of Section 301 investigations, including the previously announced probe on overcapacity and the new investigation on forced labor, the government plans to establish a joint public–private response system involving government agencies, industry, and experts, and to respond in a systematic manner.

aber@fnnews.com Reporter Park Ji-young Reporter