U.S. launches trade investigation into Nigeria, 59 countries over forced labour concerns

The United States government has opened a major trade investigation into Nigeria and 59 other economies over concerns that their trade practices may allow the importation of goods produced with forced labour, raising potential implications for international trade.

The probe, announced by the Office of the United States Trade Representative, formally commenced on March 12, 2026, under Section 301 of the Trade Act of 1974, which authorizes the USTR to investigate policies or practices of foreign countries that may be “unreasonable or discriminatory” and that place a burden on U.S. commerce.

According to the notice signed by Jennifer Thornton, General Counsel at the USTR, the review will assess whether Nigeria and other listed economies have failed to enforce measures preventing the importation of goods produced with forced or exploitative labour.

“The Trade Representative is initiating investigations with respect to acts, policies, and practices of the economies listed in Annex A… related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour,” the notice said.

Nigeria appears on the list alongside major global 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 businesses.

While many countries outlaw forced labour domestically, the USTR noted that weak oversight of imported goods allows companies to access products made under exploitative conditions through international supply chains.

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“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 agency said, citing humanitarian, foreign policy, and national security considerations.

Experts warn that forced labour provides producers with an artificial cost advantage, enabling them to sell goods more cheaply and distort competition in global markets.

The International Labour Organisation (ILO) estimates that about 28 million people worldwide were trapped in forced labour in 2021, equivalent to roughly 3.5 per 1,000 people, with the number rising by 2.7 million between 2016 and 2021, mostly linked to private sector exploitation.

Financially, profits generated from forced labour in the global private economy were estimated at $63.9 billion annually as of 2024. Products commonly associated with such risks include agricultural commodities, textiles, minerals, seafood, and palm-oil derivatives used in food and biofuel production.

“Even when goods produced under forced labour are blocked from entering the U.S., they can still circulate in other markets and compete with American exports,” the notice added.

Trade analysts say the USTR investigation signals increasing scrutiny on global supply chains and could have far-reaching consequences for exporters in Nigeria and other affected economies.

“This is a wake-up call for countries whose regulatory oversight of forced-labour goods is weak. Compliance will be critical if exporters want continued access to the U.S. market,” said Dr. Emeka Okafor.

Experts also warn that failure to address forced labour concerns could result in tariffs, import restrictions, or other trade remedies that would directly affect export-dependent industries.

The USTR will engage with governments, industry groups, labour organisations, and other stakeholders as part of the investigation. Written comments from interested parties on the existence of laws banning forced-labour imports, and their impact on U.S. trade, are invited by April 15, 2026.

Public hearings are scheduled to begin April 28, 2026, at the U.S. International Trade Commission in Washington, D.C., and may continue until May 1.

Following consultations and hearings, the USTR will determine whether the practices of the listed economies violate Section 301, potentially triggering trade remedies.

Analysts note that the investigation underscores growing U.S. attention to ethical sourcing and may push countries like Nigeria to strengthen enforcement against forced labour in their export supply chains.

This probe adds to a global trend of heightened scrutiny on labour practices, as countries and multinational corporations face increasing pressure to ensure supply chains are free from exploitation.