The Peruvian government is proposing a law to ban imports of goods produced via forced labor to avoid punitive tariffs from the United States. According to a project presented by the Executive branch on July 2, the measure aims to satisfy OECD accession requirements and address a USTR investigation into 60 economies, including Peru.
Why is Peru banning forced labor imports now?
Peru faces a direct threat of increased tariffs from the U.S. Trade Representative (USTR). In a report reviewed by Gestión, the USTR determined that Peru “has failed” to implement an effective legal prohibition on imports made with forced labor, calling the lack of enforcement “unreasonable.”
The USTR is proposing additional tariffs ranging from 10% to 12.5% for economies under investigation. For the textile sector, a mechanism is proposed to allow specific volumes into the U.S. at reduced rates, but broader agro-exports remain vulnerable.
How would the proposed ban actually work?
The project, drafted by the Ministry of Foreign Trade and Tourism (Mincetur), targets any merchandise produced “in whole or in part” through forced labor. Implementation would follow these steps:
- Identification: Mincetur and the Ministry of Labor (MTPE) would create a list of restricted imports.
- Verification: Authorities would consult public officials in the country of origin to identify companies with active forced labor sanctions.
- Enforcement: This data would be sent to the National Superintendency of Customs and Tax Administration (Sunat) for monitoring and seizure of goods.
Gonzalo Bernal, a partner at Echecopar, questioned the depth of this plan. Bernal argued that relying solely on official reports from other countries is “innocent,” suggesting instead that Peru should require importers to carry the administrative burden of proof.
What happens to Peruvian agro-exports if the law fails?
The impact would be most severe for the agricultural sector, which is already struggling with the effects of El Niño (FEN). Rafael Zacnich, Economic Studies Manager at ComexPerú, warns that new U.S. tariffs are likely because they serve as a way to “revive” reciprocal tariffs.
Zacnich noted that a 10% tariff would be the “positive” outcome compared to potential rates exceeding 12.5%. He cautioned that the damage would affect both the volume and the value of exports, as current prices are not as supportive as they were during the 2023 FEN event.
Bernal believes simply passing the law may not be enough. He pointed out that Mexico already has similar norms, yet the U.S. still demands better results, leaving Peru—which is further behind—in a precarious position.
Comparing the USTR Findings and Peru’s Response
| USTR Position | Peruvian Gov Proposal |
|---|---|
| Peru “has failed” to impose a legal ban. | Proposed law to ban all forced-labor goods. |
| Lack of enforcement is “unreasonable.” | Sunat empowered to seize prohibited goods. |
| Proposed tariffs of 10% to 12.5%. | Urgent legislative push to avoid these costs. |
Frequently Asked Questions
Will this law stop U.S. tariffs?
Not necessarily. According to Gonzalo Bernal, the U.S. is looking for results, not just laws. Other nations with similar laws are still facing USTR scrutiny.
Which sectors are most at risk?
Agro-exports and textiles are the primary concerns. The USTR has specifically proposed different mechanisms for the textile sector and general tariff hikes that would hit agricultural goods.
Is this related to the OECD?
Yes. The Peruvian government explicitly linked the proposal to its goal of joining the OECD, which includes labor standards in its accession checklist.
What do you think about these trade tensions? Do you believe a legal ban is enough to satisfy U.S. requirements? Let us know in the comments or subscribe to our newsletter for more trade analysis.
