India, June 3 -- India could face fresh US tariffs just as New Delhi and Washington are trying to conclude a trade deal, after the United States Trade Representative (USTR) determined that India and dozens of other economies have failed to adequately block imports made using forced labour.

The proposed action has attracted attention because it is not based on allegations that Indian exports are produced using forced labour. Rather, the USTR's complaint is that India does not have an effective enough system to prohibit imports of goods made with forced labour elsewhere in the world.

The move, announced on June 2, comes at a time when the two countries are negotiating the first tranche of a Bilateral Trade Agreement (BTA) while also attem...