Nigeria, 59 other countries face new US sanctions

Nigeria has been listed among about 60 economies facing possible new US trade penalties over alleged failures to block imports linked to forced labour, a move that could significantly raise duties on its exports to the American market.

The Office of the United States Trade Representative (USTR) said it completed a Section 301 investigation and found that several countries had not adequately banned or enforced restrictions on goods produced with forced labour. It said this was “unreasonable and burdens U.S. commerce.”

Nigeria is among 54 economies accused of failing both to prohibit and effectively enforce such import bans. Others named include Algeria, Egypt, Morocco, South Africa, China, India, Vietnam, the United Kingdom and Brazil.

USTR said the proposal could add either 10 per cent or 12.5 per cent in additional duties depending on a country’s compliance level. This would be on top of an existing 10 per cent baseline tariff, potentially pushing Nigeria’s total rate to 27.5 per cent.

US Trade Representative Jamieson Greer said: “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable.”

He added: “We will no longer tolerate this disparity.”

The agency argued that weak enforcement allows unfair competition by lowering production costs in countries where forced labour is not adequately addressed.

Six economies, including Canada, Mexico and the European Union, were noted as having rules in place but failing to enforce them effectively.

The proposal is still subject to public consultation and has not yet taken effect.