US Trade Representative Jamieson Greer says Australia has failed to impose and enforce prohibitions against slave labour. Photo: US Government.
Almost all Australian exports to the United States will be hit with a 12.5 per cent tariff for what the Trump administration describes as a “failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”.
The US Trade Department has issued a statement confirming the immediate start to the previously threatened tariffs, which Australia is criticising as completely unjustified.
Australia is one of 54 countries targeted with the new punitive 12.5 per cent tariff.
The list includes New Zealand, the United Kingdom, China, Brazil, Egypt, India, Israel, Japan, Singapore, Russia and Norway.
Bizarrely, some other economies such as the European Union, Canada and Mexico are attracting a lesser 10 per cent tariff because the US says they have imposed slave labour prohibitions but simply failed to enforce them.
All up, 60 international economies will be hit with the US’s slave labour tariffs.
“Today, Ambassador Jamieson Greer is taking final action, at President Trump’s direction, under Section 301 of the Trade Act of 1974 by imposing tariffs on 60 economies for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour,” the US Trade Department’s statement said.
“Today’s action comes after the Office of the United States Trade Representative’s (USTR) investigations, which included two rounds of public hearings, more than 2100 public comments, and engagement with our trading partners to remedy these longstanding concerns.
“President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains,” US Trade Representative Jamieson Greer said in a statement overnight on Friday (24 July) AEST.
“The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.
“Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere.
“I am encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement.”
Australia is pushing back. The Federal Government is saying this country does not deserve a tariff over slave labour as Australia has world-leading laws against modern slavery.
Deputy Prime Minister Richard Marles said the government was vigorously stating its anti-slave labour credentials to the US.
“We share an objective there to stamp that out,” Mr Marles said.
“But we would have also made clear that the legal regime that we have in Australia in respect of forced labour is amongst the best legal regimes that exist in the world today.
“And we’re making that point very clearly to the Trump administration as well … This, in our view, makes no sense.”
Trade Minister Don Farrell has also commented on the development, calling the tariffs “completely unjustified”.
Speaking from Labor’s national conference in Adelaide on Friday, the minister said the government was serious in its efforts to oppose modern slavery.
“We continue to maintain that these tariffs are unjustified. Australia is a country that deals with the issue of modern slavery seriously,” Senator Farrell said.
“And from my point of view, the government’s point of view, we will continue to argue very strongly for the removal of these tariffs.”
The Australian Chamber of Commerce and Industry (ACCI) has also condemned the new tariffs, saying their imposition ignores a free trade agreement (FTA) the US has had with Australia for more than 20 years.
ACCI chief executive officer Andrew McKellar described the decision as “ludicrous and unjustified” and said the business chamber wants to work with the Federal Government to help resolve the issue.
“The US has again unilaterally cast aside its FTA obligations with Australia,” Mr McKellar said.
“Australia and the United States signed a free trade agreement in 2005 for the purposes of enhancing trade, and these tariffs are in clear breach of that agreement.
“What makes it even more unjustified is the fact the US is imposing these tariffs on the basis of forced labour or modern slavery.
“Australia has some of the highest protections and enforcement against modern slavery anywhere in the world.
“The US administration’s decision will reduce trade and increase costs for US businesses and consumers.”
Labor recently moved to beef up its anti-slavery laws in the face of the US tariffs threat.
The government announced new legislation will soon be drafted seeking to apply the Criminal Code to Australian companies with an annual consolidated revenue of more than $100 million, and that can’t prove they have tried to stop worker exploitation in the goods they are selling.
Original Article published by Chris Johnson on Region Canberra.
