MTI defends enforcement record after US tariff move

The 12.5% levy covers about one-third of domestic exports.

The Ministry of Trade and Industry (MTI) defended Singapore’s record against forced labour after the US Trade Representative (USTR) imposed an additional 12.5% tariff on about one-third of its domestic exports.

“Singapore does not condone the use of forced labour and has a comprehensive enforcement framework and good track record against such illegal practices within our borders,” MTI said on 24 July.

The USTR concluded that Singapore and 59 other economies covered by its Section 301 investigation had failed to impose or effectively enforce a ban on imports made with forced labour.

It said the additional tariff would apply to about one-third of the country’s domestic exports to the US from 12:01 am on 24 July, Eastern time. Products covered by Section 232 tariffs will be exempt.

Other exclusions include energy products, pharmaceuticals and pharmaceutical ingredients, certain electronics and aerospace products, semiconductors, and metals used in currency and bullion.

“Forced labour in complex and multi-tiered international supply chains is a transnational issue that requires international cooperation and is most effectively addressed at source,” the ministry said.

It added that any import restriction would need further assessment because Singapore is a major trading hub, with consultations to continue with the Singapore Economic Resilience Taskforce and the business community.

MTI said it would continue discussions with the USTR “to explore options on this matter,” adding that further implementation details would be released later.

Singapore is also amongst 16 economies facing a separate USTR Section 301 investigation into manufacturing overcapacity. The findings and proposed measures from that investigation have not been released.