Section 301 Investigation on Import Prohibitions Related to Forced Labor

The Brazilian Government expresses profound disagreement with the preliminary conclusion announced yesterday (2 June) by the USTR regarding the Section 301 investigation on import prohibitions related to forced labor indiscriminately penalizing 59 countries and the European Union.

It is regrettable that an issue as relevant as the protection of decent conditions for millions of workers is being distorted to serve as justification for unilateral protectionist measures.

It is absurd to attempt to associate the competitiveness of the Brazilian economy with external inputs obtained through trade that violates human dignity. The International Labour Organization (ILO) has for decades recognized Brazil as an international reference in combating forced labor, thanks to the combination of inspection, accountability, institutional cooperation, and political commitment.

Brazil reserves the right to resort to the instruments provided for in the Reciprocity Law, approved unanimously by the National Congress, to address situations of injustice against the Brazilian State, without basis in the rules of international trade.

In the context of the present investigation, Brazil provided written submissions and explanations on the national legal framework to curb imports of goods produced through forced labor. Brazilian customs authorities have legal competence to deny entry to and confiscate any foreign merchandise that is contrary to public morality, public decency, public health or public order. Any good produced wholly or in part through forced labor falls within that definition.

The free trade agreements concluded by Brazil and MERCOSUR, including with Chile, the European Union and the European Free Trade Association, contain commitments to eliminate forced and compulsory labor and to effectively enforce those prohibitions.

The Ministry of Labour and Employment of Brazil remains available to continue the longstanding and active cooperation with the U.S. Department of Labor, in close coordination with trade union partners and the ILO, to respond to the challenges faced by workers around the world.

The Government reaffirms its expectation that the USTR’s preliminary recommendations will not be converted into actual tariffs and reiterates that it will adopt measures to reduce the damage that may be caused to the economy, jobs and income of Brazilians.

Government of Brazil