ZURICH, June 5 - The Swiss federal government said on Friday it will press ahead with trade discussions with the United States while rejecting allegations that it has not done enough to prevent imports produced with forced labour.
In a written response the government said it would reiterate its position to U.S. authorities, arguing that its current approach - which places emphasis on supply-chain scrutiny - is effective. Swiss officials highlighted a mix of regulation, compulsory private-sector risk assessments and cooperation with international partners as the core elements of their strategy.
Firm rebuttal
The Federal Council expressly "strongly rejects the allegations made in the course of this investigation," the statement said, outlining the government’s confidence in its existing mechanisms to address forced-labour concerns in imported goods.
Context of the U.S. action
The U.S. findings that prompted Switzerland’s response were published on June 2 and follow investigations launched in March under Section 301. Those investigations examine alleged unfair trade practices, with specific reference to industrial overcapacity and enforcement relating to goods made with forced labour.
Tariff process and timing
U.S. authorities are considering imposing additional tariffs of 12.5% on Swiss imports. Any such measures would not be applied immediately. Interested parties will first be asked to submit comments, and a public hearing will be held as part of the procedural steps before a final decision.
The Swiss government noted that any new additional tariffs are likely to replace a current 10% additional tariff that remains in force until July 24. It also said further tariffs could be imposed as a result of the related U.S. investigation into industrial overcapacity.
Outlook
Swiss officials have committed to continuing the dialogue with Washington while formally contesting the U.S. conclusions on enforcement against forced-labour goods. The process established by the U.S. - including the comment period and public hearing - means that outcomes and timing remain subject to further procedural steps.