Australia’s deputy PM says the new 12.5% US anti-forced labour tariff is unjustified and inconsistent with the free trade agreement.
CANBERRA: Australia’s Deputy Prime Minister Richard Marles said on Friday that a new anti-forced labour tariff announced by the United States “makes no sense.”
Marles told Australian Broadcasting Corporation (ABC) radio on Friday that the federal government was disappointed by the Trump administration’s decision to impose the tariff, reported Xinhua.
The new levy will be imposed from Friday at a rate of 10 and 12.5% on imported goods from 60 countries accused by the United States of failing to crack down on forced labour, replacing an expiring temporary 10% tariff. Exports from Australia to the United States will be subjected to the higher 12.5% duty.
“This really, in our view, makes no sense,” Marles said. “We continue to make that argument to the Trump administration, both in terms of trade but also in terms of our stance in relation to forced labour.”
Australia’s Minister for Trade and Tourism Don Farrell said in a statement that the tariffs are unjustified, inconsistent with the Australia-US free trade agreement and should be removed.
“Australia’s measures to combat forced labour and modern slavery are among the strongest in the world, and we are recognised globally, including in the United States, for our leadership,” Farrell said.
Earlier in July, the Australian embassy in Washington lodged a formal objection with the US Trade Representative against the proposal for the forced labour tariff.
The objection said that there was “no credible evidentiary basis” for the tariff to be imposed on Australian goods.
