The United States government has opened a trade investigation into Nigeria and 59 other economies over concerns that their trade practices may allow the importation of goods produced with forced labour.
The probe was announced in a notice issued by the Office of the United States Trade Representative (USTR).
Signed by the General Counsel at the Office of the USTR, Jennifer Thornton, the notice stated that the investigation formally commenced on March 12, 2026.
What the notice says
The agency said the investigation was initiated under Section 301 of the Trade Act of 1974 to determine whether the policies or practices of the affected economies are “unreasonable or discriminatory” and whether they place a burden on American commerce.
According to the document, the review will assess whether Nigeria and other economies have failed to enact or enforce measures preventing the importation of goods produced with forced labour.
“The Trade Representative is initiating investigations with respect to acts, policies, and practices of the economies listed in Annex A of this notice related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour,” the notice stated.
Nigeria appears on the list alongside several major economies, including China, India, Brazil, South Africa, the United Kingdom, Canada, and the European Union.
The USTR explained that the investigation aims to determine whether gaps in import restrictions across these markets create an uneven global trading environment that disadvantages American firms.
Why the US launched the probe
According to the agency, although many countries outlaw forced labour domestically, weak oversight of imported goods means companies may still access products made under exploitative conditions through international supply chains.
The notice pointed out that American law has long taken a strict stance on the issue.
- “For almost 100 years, U.S. law has prohibited the importation of goods mined, produced, or manufactured in whole or in part with forced labour,” the document said, noting that the policy reflects humanitarian, foreign policy, and national security considerations.
USTR also warned that forced labour provides producers with an artificial cost advantage, enabling them to sell goods more cheaply and distort competition in global markets.
The agency cited global estimates showing that the problem remains widespread. Data from the International Labour Organisation indicates that about 28 million people were trapped in forced labour worldwide in 2021, equivalent to roughly 3.5 out of every 1,000 people.
The ILO also reported that the number of people in forced labour rose by about 2.7 million between 2016 and 2021, with much of the increase linked to exploitation within the private sector.
In financial terms, profits generated from forced labour in the global private economy were estimated at around $63.9 billion annually as of 2024.
USTR further warned that forced labour practices can affect entire supply chains. Products commonly associated with such risks include agricultural commodities, textiles, minerals, seafood products, and palm-oil derivatives used in food production and biofuels.
The agency noted that even when goods produced under forced labour are blocked from entering the United States, they can still circulate in other markets and eventually compete with American exports.
- “In markets without forced labour import prohibitions, U.S. exports are required to compete with products produced wholly or in part with forced labour,” the notice said.
Consultation process and possible trade actions
As part of the investigation, the USTR will engage with the governments of the economies listed in the notice while collecting evidence from industry groups, labour organisations, and other stakeholders.
Businesses, labour unions, and other interested parties have been invited to submit written comments on whether the economies under review have introduced or are developing laws to ban the importation of forced-labour goods.
- The agency is also seeking evidence on whether the absence of such measures has resulted in reduced US exports, weaker economic output, or downward pressure on wages for American workers.
- Public hearings on the investigation are scheduled to begin on April 28, 2026, at the US International Trade Commission in Washington, DC, and may run until May 1.
- Stakeholders intending to participate in the hearings or submit comments must file their submissions through the USTR’s electronic portal no later than April 15, 2026.
Following consultations and hearings, the Trade Representative will decide whether the practices identified in the investigation violate Section 301 of the Trade Act.
If the review concludes that the policies of the affected economies constitute unfair trade practices, the United States may impose trade remedies such as additional tariffs or import restrictions on goods originating from those markets.
