Sri Lanka, July 24 -- Sri Lanka has secured a lower 10% tariff rate on its exports to the United States under a new Section 301 trade directive, following a swift policy decision in Colombo to enact a national ban on imports produced with forced labour.

The determination, announced by the Office of the United States Trade Representative (USTR), shields Sri Lanka's key export industries, most notably its multi-billion-dollar apparel sector, from the steeper 12.5% baseline penalty imposed on non-compliant trade partners, including China, Thailand and Vietnam.

The Policy Shift

The trade action follows a months-long US investigation initiated in March into 60 global economies. The USTR formally determined that a failure to prohibit or e...