US has launched trade probe into Nigeria and 59 other economies over forced labour imports.
NewsOnline Nigeria reports that the United States government has launched a formal trade investigation into Nigeria and 59 other economies over their alleged failure to prevent the importation of goods produced with forced labour.
In a notice released by the Office of the United States Trade Representative (USTR), the US said the probe was initiated under Section 301 of the Trade Act of 1974 to determine whether the trade practices of the affected economies are “unreasonable or discriminatory” and whether they place a burden on American commerce.
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The notice, signed by USTR General Counsel Jennifer Thornton, confirmed that the investigation began on March 12, 2026. It will examine whether Nigeria and the other listed economies have failed to introduce or effectively enforce bans on 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 statement said.
Nigeria is among 60 economies named in the probe, alongside major trading partners including China, India, Brazil, South Africa, United Kingdom, Canada, and the European Union.
According to the USTR, the investigation seeks to determine whether the absence of strict import bans on forced-labour goods in these economies creates unfair trade conditions that disadvantage American businesses.
The agency noted that although many countries prohibit forced labour domestically, weak controls on imports allow companies to continue sourcing products produced under exploitative conditions through global supply chains.
“For almost 100 years, US law has prohibited the importation of goods mined, produced, or manufactured in whole or in part with forced labour,” the notice stated, adding that the policy is rooted in humanitarian, foreign policy, and national security considerations.
Global estimates cited by the USTR show that forced labour remains widespread. Data from the International Labour Organization indicates that about 28 million people were trapped in forced labour worldwide as of 2021, equivalent to roughly 3.5 out of every 1,000 people.
The number of victims increased by approximately 2.7 million between 2016 and 2021, largely due to exploitation in the private sector. The ILO also estimates that profits generated from forced labour in the global private economy reached about $63.9bn annually in 2024.
The USTR warned that forced labour distorts competition in international markets by allowing producers to cut costs and sell goods at artificially lower prices. Products commonly linked to forced labour include agricultural commodities, textiles, minerals, fish products, and palm oil derivatives used in food and biofuel production.
The agency also noted that goods denied entry into the United States can often be redirected to other markets lacking strict import bans, creating unfair competition for American firms.
As part of the process, the USTR will consult with governments of the economies under investigation and gather evidence from businesses, labour organisations, and other stakeholders.
Public hearings on the investigation are scheduled to begin on April 28, 2026, at the US International Trade Commission in Washington, DC and may continue until May 1.
Meanwhile, Nigeria’s external trade performance has recently weakened. Data from the National Bureau of Statistics shows that the country’s merchandise trade surplus declined sharply to N1.71tn in the fourth quarter of 2025, down from N3.42tn recorded in the same period in 2024.
According to the NBS, total trade stood at N36.21tn in Q4 2025, slightly lower than the N36.60tn recorded in Q4 2024, reflecting a 1.07 per cent year-on-year decline.
Exports dropped to N18.96tn during the quarter, representing a 5.25 per cent fall from N20.01tn recorded in the same period of 2024, largely due to declining crude oil earnings.
However, imports rose to N17.25tn in Q4 2025, representing a 3.98 per cent increase year-on-year, highlighting Nigeria’s continued dependence on imported manufactured goods and fuel products.
China remained Nigeria’s largest import partner during the period, followed by the United States, the Netherlands, India and Brazil.
Following the investigation and consultations, the US Trade Representative will determine whether the trade practices of the economies under review violate provisions of Section 301. If confirmed, the United States could impose trade remedies, including additional duties or import restrictions on goods from the affected economies.
