Malaysia is among 60 countries currently facing investigations by the Office of the United States Trade Representative regarding alleged failures to ban and effectively enforce restrictions on imports of goods produced with forced labour.
A statement from the office indicated that the investigations will examine whether the acts, policies, or practices of the involved economies are unreasonable or discriminatory. The probe also aims to determine if these practices burden or restrict United States commerce.
This forced labour investigation comes as the United States announced yesterday that it was launching separate trade investigations into excess industrial capacity in Malaysia and 15 other major trading partners.
Impact on American workers and businesses
Trade Representative Jamieson Greer stated that despite a broad international consensus against forced labour, many governments had failed to effectively stop goods produced using such practices from entering their markets.
He noted in the statement that for too long, American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labour.
Greer added that the investigations would assess whether foreign governments had taken sufficient steps to prohibit imports of goods produced with forced labour. The probe will also evaluate how failures to address the issue affected workers and businesses in the United States.
Public hearings and government consultations
The office stated it will seek consultations with the governments of the countries under review to discuss the findings and potential resolutions.
Public hearings regarding the matter are scheduled to be held on April 28. Interested parties are required to submit written comments and requests to appear by April 15.
The findings from these investigations could have significant implications for Malaysia’s trade relations with the United States, particularly concerning labour standards and industrial capacity.
