The United States has announced plans to impose a 12.5% tariff on exports from 60 countries, including Australia, citing insufficient action against forced and slave labour worldwide. US Trade Representative Jamieson Greer stated on Wednesday that the failure of major trading partners to address goods made with forced labour is unacceptable. Prime Minister Anthony Albanese responded by calling the proposed tariff 'unjustified', arguing that Australia possesses 'robust, comprehensive and world-leading legislation' on forced labour and modern slavery.
Which Countries Are Affected?
A report from the US Trade Representative identified 54 nations, including Australia, China, New Zealand, and the United Kingdom, as failing to legally prohibit and effectively enforce bans on importing goods produced with forced labour. These countries face a 12.5% tariff. Another six economies—Canada, the European Union, and Indonesia, among others—face a lower 10% tariff due to having more comprehensive laws but weak enforcement.
What Is Forced Labour?
Forced labour, a form of modern slavery, is defined under international law as work or service exacted under threat of penalty and without voluntary consent. This aligns with Section 307 of the US Tariff Act of 1930, which prohibits imports made by forced labour. The US also enacted the Uyghur Forced Labor Prevention Act in 2022, targeting goods from China's Xinjiang region over credible allegations of widespread forced labour.
Trade Motives Behind the Tariffs
These forced labour tariffs appear driven more by trade policy than labour rights. After US courts blocked President Donald Trump's broader tariffs, he vowed to find alternative routes. Former Australian ambassador Joe Hockey noted that 'America is running out of money and they need to get it from somewhere.' The tariffs are subject to a month of public consultations.
Australia's Modern Slavery Record
Globally, an estimated 50 million people are trapped in modern slavery, with over half in forced labour. Australia alone has over 41,000 forced labourers and victims of other forms of modern slavery, including child marriages. Reports of human trafficking to the Australian Federal Police have nearly doubled in five years.
Flaws in Australia's Legislation
Australia's Modern Slavery Act, passed in 2018, requires large businesses to report annually on modern slavery risks in their operations and supply chains. Over 17,000 statements from 27,000 businesses have been lodged. However, a 2023 independent review found no hard evidence that the Act has led to meaningful change for victims, largely due to a lack of enforcement mechanisms.
What Needs to Change?
To strengthen its case against US tariffs and genuinely combat forced labour, Australia must enforce its Modern Slavery Act with penalties and introduce a human rights due diligence obligation, similar to EU laws. The 2023 review recommended penalties for non-compliance and due diligence requirements. The Albanese government partially accepted these but has not taken serious action in three years. Additionally, Australia should establish a forced labour import ban, like the EU's, to stop suspected goods at the border.
Whether or not these tariffs take effect, the US investigation could spur much-needed action. Millions continue to work in dangerous conditions to produce goods sold in Australia and worldwide—it is long overdue to do more to stop it.
