The United States has launched a trade investigation into Nigeria and 59 other economies over their alleged failure to prevent the importation of goods produced with forced labor.
In a notice released by the Office of the United States Trade Representative and obtained Sunday, the U.S. government said it had begun a formal probe under Section 301 of the Trade Act of 1974 to determine whether the trade practices of the listed economies are “unreasonable or discriminatory” and burden American commerce.
The notice, signed by the general counsel at the agency, Jennifer Thornton, said the investigation was initiated March 12, 2026.
According to the document, the probe will examine whether Nigeria and the other economies have failed to introduce or effectively enforce bans on the importation of goods produced with forced labor.
The countries named in the investigation include China, India, Brazil, South Africa, the United Kingdom, Canada and the European Union.
The USTR said the probe aims to determine whether the absence of effective import bans on goods made with forced labor creates unfair trade conditions that disadvantage American businesses.
The agency noted that while many countries prohibit forced labor domestically, weak controls on imports allow companies to continue sourcing products made under exploitative conditions through global supply chains.
“For almost 100 years, U.S. law has prohibited the importation of goods mined, produced or manufactured in whole or in part with forced labor,” the notice said, adding that the policy reflects humanitarian, foreign policy and national security concerns.
According to estimates by the International Labour Organization, about 28 million people were trapped in forced labor globally as of 2021, or roughly 3.5 out of every 1,000 people.
The number increased by about 2.7 million between 2016 and 2021, largely driven by exploitation in the private sector, the agency said. It also estimated that profits generated from forced labor in the global private economy reached about $63.9 billion annually in 2024.
The USTR said forced labor distorts global markets by giving producers an artificial cost advantage, allowing them to sell goods at lower prices and undermining fair competition.
Products linked to forced labor include agricultural commodities, textiles, minerals, fish products and palm oil derivatives used in food and biofuel production.
The agency warned that goods produced under such conditions may re-enter global markets even after being denied entry into the United States, creating unfair competition for American companies.
“In markets without forced labor import prohibitions, U.S. exports are required to compete with products produced wholly or in part with forced labor,” the notice said.
As part of the investigation, the USTR will consult with governments of the economies under review and gather evidence from businesses, labor groups and other stakeholders.
Public hearings on the probe are scheduled to begin April 28, 2026, at the U.S. International Trade Commission in Washington, D.C. and may continue until May 1. Written submissions must be filed through the USTR’s electronic portal by April 15.
Following the hearings and consultations, the trade representative will determine whether the practices of the economies under investigation are actionable under Section 301. If confirmed, the United States could impose trade remedies, including additional duties or import restrictions on goods from the affected economies.
Meanwhile, data from the National Bureau of Statistics shows Nigeria’s merchandise trade surplus fell sharply to N1.71 trillion in the fourth quarter of 2025, down from N3.42 trillion recorded in the same period in 2024.
The agency attributed the decline largely to falling crude oil exports and rising imports.
Nigeria’s total trade during the quarter stood at N36.21 trillion, slightly lower than the N36.60 trillion recorded a year earlier. Total exports fell to N18.96 trillion in the period, a 5.25% drop from the previous year and a 16.88% decline from the preceding quarter.
Crude oil remained the country’s largest export, contributing N9.70 trillion, or 51.17% of total exports.
Imports, however, rose to N17.25 trillion in the fourth quarter of 2025, up 3.98% from N16.59 trillion recorded in the same period in 2024.
Machinery and transport equipment accounted for the largest share of imports at N5.13 trillion, followed by mineral fuels valued at N4.52 trillion and chemicals and related products worth N2.70 trillion.
Regionally, Nigeria imported most of its goods from Asia, valued at N8.08 trillion, followed by Europe at N5.75 trillion and Africa at N696.13 billion.
China remained Nigeria’s largest import partner, accounting for N5.39 trillion of imports, followed by the United States, the Netherlands, India and Brazil.
