The US is weaponsing a law designed to block imports made with 'forced labour" to end a court-imposed block on tariffs that used another law.
New Zealand will be caught up in this stand-off if it proceeds.
This is what the US Trade Representative has ruled:
The U.S. Trade Representative today has determined that the failure of each of the 60 investigated economies to impose and effectively enforce a forced labor import prohibition is unreasonable or discriminatory and burdens or restricts U.S. commerce, and thus is actionable under Section 301(b)(1) of the Trade Act. In particular, the U.S. Trade Representative determined:
- The following 54 economies have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor:
- Algeria; Angola; Argentina; Australia; the Bahamas; Bahrain; Bangladesh; Brazil; Cambodia; Chile; China, People’s Republic of; Colombia; Costa Rica; Dominican Republic; Egypt; El Salvador; Guatemala; Guyana; Honduras; Hong Kong, China; India; Iraq; Israel; Japan; Jordan; Kazakhstan; Kuwait; Libya; Malaysia; Morocco; New Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines; Qatar; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Sri Lanka; Switzerland; Taiwan; Thailand; Trinidad and Tobago; Türkiye; United Arab Emirates; United Kingdom; Uruguay; Venezuela; and Vietnam.
- The following six economies have failed to effectively enforce a prohibition on the importation of goods produced with forced labor: Canada; Ecuador, the European Union; Indonesia; Mexico; and Pakistan.
- Therefore, all of the investigated economies have failed both to impose a forced labor import prohibition and to effectively enforce such a prohibition.
If enacted, exports from New Zealand (and all the countries listed) will attract a 12.5% tariff.
McClay rejects suggestion NZ is 'somehow part of forced labour'
Finance Minister Nicola Willis said the Government would look at the specific proposal, adding: "We would always ask that trade rules be upheld and obliged".
"We don't think escalating tariffs helps anyone, and so we will oppose it on those grounds.
"But equally, we recognise that we are one of many countries affected by this equally, that New Zealand hasn't been singled out specifically, that we sit alongside Australia and other countries we compare ourselves with."
Willis said her thoughts went out to exporters, who had been through a "really volatile situation vis-a-vis US tariffs, but who have also showed themselves to be extremely resilient with trade across a range of products and services continuing to increase into US, despite what has been a very uncertain tariff regime".
Speaking on RNZ, Trade Minister Todd McClay, who is in France, rejected the suggestion that New Zealand was "somehow part of forced labour".
McClay said the tariff would replace the current 10% tariff, and it was harmful to trade, RNZ reported.
*Additional reporting Anna Whyte.
10 Comments
NZ needs to disentangle itself from this despotic clown show that is the US. As much as our right wing poiticians fawn over American exceptionalism, its' exceptional politicians and golden ballrooms, it's time to draw a line under the insults! Look for ties elsewhere!
Entrenched though isn’t it. Not just New Zealand. That great fat daddy golden mile has been as a bright porch light to moths. Everybody wanted in regardless, and simply because it was perceived as just being the most lucrative market on this planet. In a converse way Trump, with his tariffs and barriers is actually addressing that status. The thing is though, if the USA actually needs the product, lean NZ grinding beef for example, the trade takes care of itself.
We've been run by the disciples of the neolib/con cult for so long there's no institutional memory of self sufficiency. The tenticles of corporatism, especially US corporatism, have invaded every aspect of our society. Disentanglement would take generations, or catestrophic shock. This moment was always coming because democracy can't survive human civilisational overgrowth. We can no longer even meet the least detructive climate heating parameters without tech/corporate intervention.
Globalists were so sure the invisible hand guiding the economic super organism was the answer to life the universe and everything. The concept that anyone could possibly reject the market enlightenment? Beyond comprehension. Enter Putin, Trump, physical limits et al.
Free market neoliberalism is still alive and well in the outposts of Western Europe, Canada, the blue half of the US and Oceania, awaiting a return to "normal programming".
There's lots of vids on UTube with Americans complaining fast food now costs what a restaurant meal used to cost. Must be the tariff sauce the patties have been liberally coated in?
...dodgy 'investigation'
Mandy Te wrote on this site, this year, about extensive failings of current NZ law on the issue.
I remember that. The was the ACT position:
"In September 2024, Workplace Relations Minister Brooke van Velden told 1News that while she thought modern slavery was important, she didn't think there needed to be a new law to fix it. "
LOL! Modern slavery keeps the wheels of commerce rolling and the cash flowing upwards. Just the system working as intended.
Again the irony. The USA menial labour force is riddled with the so called illegals to the point that they have become, more often than not, vital. Many in that category of the labour force, live in squalor and are subjugated almost to the point of slavery. Now the USA is swinging the pot and kettle around in hypocritical, terms beyond belief.
Is it the law or the enforcement of the law that’s the problem?
Isn't the Zespri brand built on "forced labor" needed during picking season? I think I saw some quite damning evidence to suggest that.
But we turn a blind eye because we want cheap fruit and veg - plus the labourers wouldn't be so well paid if they stayed in their home country.
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