US blacklists Indian garment export industry again
Due to the employment of child labor in India’s garment export industry, the U.S. government has blacklisted India for the third consecutive year, which has caused greater doubts about future purchases of global brands from India. Despite several attempts by Indian exporters to convince the U.S. government that this was not the case, the executive order list continued to place India on the list.
Brand companies will need to explain their trade with India now that the United States has issued a formal child labor declaration. The United States will submit them a caution notice stating that they must do due diligence before doing business with India. India’s contribution to global apparel trade is 3%, and India receives 30% trade share from US consumers. The executive order list prevents tainted countries from trading with the U.S. federal government in certain areas. The current list was published by the U.S. Department of Labor on May 31, 2011.
Industry insiders believe that the list makers did not distinguish between domestic industries and exporters. Exporters say that while saree and Zari embroidery businesses employ child labor to cater to the Indian market, the garment export industry has gained a bad name. The Apparel Export Promotion Council of India expressed its objection to the US notification, but it was too late to save the overall situation.
The United States once raised suspicions in a report, saying that it found four child laborers in India’s garment export industry with 6.7 million people. Leaving aside trade with the U.S. government for now, being labeled an industry that employs child labor will seriously hamper India’s future trade.
A person in charge of a garment company said that because the Indian garment industry has sent out the wrong message, customers are now increasing their supervision of factories. Brands deploy independent agencies to monitor Indian businesses. At least three brands come to visit the factory every week to talk to employees and learn about working conditions, overtime and forced labor. After being blacklisted by the United States, it will be difficult for Indian exporters to get new orders.
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