The Confederation of Indian Industry (CII) has advised the United States to tackle forced labor issues using bilateral trade discussions rather than imposing extra tariffs. Speaking at a US Trade Representative hearing, Shuchita Sonalika emphasized that punitive trade actions would not effectively address the problem and could disrupt the growing trade partnership between the two nations.
Sonalika stressed the significance of the rapidly expanding US-India trade relationship and recommended enhancing cooperation through the existing India-US Trade Policy Forum instead of implementing tariffs or non-tariff measures on Indian industries. She proposed that a compliance-focused approach would be more successful in resolving issues compared to broad trade restrictions.
Highlighting the importance of compliance-based collaboration, Sonalika expressed that mechanisms centered on compliance and cooperation would be more beneficial than relying on tariffs. She mentioned CII’s collaboration with the International Labour Organization (ILO) and the United Nations Development Programme (UNDP) on responsible business practices and expressed willingness to work closely with US authorities to strengthen compliance systems.
Sonalika underlined that Indian companies already adhere to comprehensive compliance frameworks, including corporate codes of conduct, ethics policies, and environmental standards. She welcomed cooperation with relevant US entities to further enhance these systems and emphasized the need for dialogue and cooperation to address forced labor issues effectively.
