The United States has initiated investigations into whether Bangladesh and several other countries are engaging in industrial overproduction and failing to prevent the use of forced labor in manufacturing. The Office of the US Trade Representative (USTR) announced on Wednesday that sixteen countries, including Bangladesh, are being investigated for overcapacity, followed by a Thursday announcement expanding the probe to sixty countries regarding forced labor. Countries found to be involved in unfair trade practices could face import tariffs under US trade law.
The investigations will assess national laws, policies, and enforcement related to banning imports made with forced labor, as well as whether such practices burden or restrict US trade. Each government must respond in writing by March 17, with hearings scheduled for early May. The move follows the US Supreme Court’s annulment of former President Donald Trump’s reciprocal tariff policy and the non-implementation of the US-Bangladesh Reciprocal Trade Agreement.
Bangladesh’s commerce secretary said the government sees no immediate risk from the investigation and will respond if formally asked. Economists noted that the US may use the probe to justify new tariffs and urged Bangladesh to prepare for negotiations to safeguard its trade interests.