The United States government announced this week that it started an investigation into Costa Rica and nearly 60 other economies. The review centers on concerns that these countries have not taken strong enough action against forced labor in global supply chains.
The U.S. Trade Representative launched the process to examine whether the actions, policies and practices of these economies fail to stop imports of goods produced with forced labor. Officials will check if those failures count as unreasonable or discriminatory and if they damage or limit U.S. trade.
Findings from the review could lead to new tariffs or other trade steps on exports from the countries involved. U.S. Trade Representative Jamieson Greer pointed out that countries share a broad agreement against forced labor. He said many governments still have not put effective measures in place to keep such goods out of their markets.
The investigations will test whether foreign governments have done enough to bar those products and how the situation hits American workers and businesses. Costa Rica sits on the list with big trading partners that include China, Japan, India, the European Union, the United Kingdom, Canada and South Korea. The group also covers several countries in the Middle East, Asia and Africa.
The Ministry of Foreign Trade of Costa Rica, known as COMEX, said it has begun to review the information from the U.S. action. Bilateral consultations with the involved countries will form the first part of the process. COMEX staff members are putting together their plan for those talks.
“This announcement marks the beginning of a process that includes a period of consultations with each of the countries involved,” the ministry stated. “We are currently analyzing the available information to defend Costa Rica’s export sector and will communicate any relevant updates in a timely manner,” it added.
The investigation operates under Section 301 of the Trade Act of 1974. This stands as one of the main tools the United States uses to handle foreign trade practices it considers unfair or damaging to its commerce. Being named in the investigation does not bring automatic trade sanctions. The step starts a review to measure the rules each government has set up to prevent trade in goods tied to forced labor.
