The United States government has opened a sweeping trade investigation targeting Nigeria and dozens of other economies over concerns that goods produced through forced labour may be entering their markets and ultimately affecting American trade.
The probe, announced by the Office of the United States Trade Representative (USTR), was launched under Section 301 of the Trade Act of 1974.
The review will examine whether the trade policies of the listed economies are unfair or discriminatory and whether they create obstacles for US businesses.
In a formal notice signed by USTR General Counsel Jennifer Thornton, the agency confirmed that the investigation officially began on March 12, 2026.
The Inquiry
According to the notice, the inquiry will assess whether Nigeria and 59 other economies have failed to establish or properly enforce laws that prohibit the importation of goods made with forced labour.
“The Trade Representative is initiating investigations with respect to acts, policies and practices of the economies listed in Annex A of this notice related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour,” the notice stated.
Nigeria is included among the 60 economies under review, alongside major trading partners such as China, India, Brazil, South Africa, the United Kingdom, Canada and the European Union.
US authorities argue that the use of forced labour enables companies to manufacture goods at artificially low costs, creating an uneven playing field in global trade.
According to the USTR, such practices undermine businesses that comply with fair labour standards.
The agency noted that US law has banned the importation of goods made with forced labour for nearly a century.
It added that the policy is driven not only by economic considerations but also by humanitarian concerns, foreign policy priorities and national security interests.
Global Data
Global data cited by the USTR indicates that forced labour remains a significant issue.
Estimates from the International Labour Organization (ILO) show that about 28 million people were trapped in forced labour worldwide as of 2021, equivalent to roughly 3.5 individuals per 1,000 people globally.
The number of victims increased by approximately 2.7 million between 2016 and 2021, with much of the exploitation occurring within private sector supply chains.
The ILO also estimated that forced labour generates about $63.9bn in profits annually within the global private economy as of 2024.
US officials warn that products linked to forced labour can infiltrate global supply chains and reach international markets through multiple routes. Industries frequently associated with such practices include agriculture, textiles, mining, fisheries and palm oil production used in food and biofuel manufacturing.
The USTR noted that even when products suspected of being produced with forced labour are barred from entering the United States, they can still circulate in other markets that lack similar import restrictions.
Government Engagement
“In markets without forced labour import prohibitions, US exports are required to compete with products produced wholly or in part with forced labour,” the notice said.
As part of the investigation, the USTR plans to engage with the governments of the affected economies while gathering input from companies, labour groups and other stakeholders.
Public hearings on the issue are scheduled to take place at the US International Trade Commission in Washington beginning April 28, 2026, and may continue through May 1.
Interested stakeholders must submit written comments through the USTR’s electronic portal by April 15, 2026.
If the probe finds evidence of unfair trade practices, the United States could respond by imposing additional tariffs or restricting imports from the affected economies.
Meanwhile, Nigeria’s trade performance showed signs of weakening toward the end of 2025.
Data released by the National Bureau of Statistics (NBS) in its report titled “Foreign Trade in Goods Statistics” revealed that the country’s merchandise trade surplus fell significantly in the fourth quarter of the year.
Trade Surplus
Nigeria recorded a trade surplus of ₦1.71 trillion during the period, sharply lower than the ₦3.42 trillion posted in the same quarter of 2024.
The NBS attributed the drop primarily to declining crude oil exports.
Total trade for the quarter stood at ₦36.21 trillion, slightly below the ₦36.60 trillion recorded a year earlier.
Exports fell to ₦18.96 trillion, representing a 5.25 per cent decrease year-on-year and a 16.88 per cent drop compared with the previous quarter.
Crude oil remained the backbone of Nigeria’s export earnings, accounting for ₦9.70 trillion, or 51.17 per cent of total exports.
Imports, however, rose during the period. The NBS reported that Nigeria’s total imports increased to ₦17.25 trillion, up 3.98 per cent from ₦16.59 trillion recorded in the corresponding quarter of 2024.
Machinery and transport equipment constituted the largest share of imports at ₦5.13 trillion, representing 29.75 per cent of total imports.
This was followed by mineral fuels valued at ₦4.52 trillion and chemicals and related products worth ₦2.70 trillion.
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China remained Nigeria’s largest source of imports during the period, accounting for ₦5.39 trillion, or 31.22 per cent of total imports.
Other major import partners included the United States, the Netherlands, India and Brazil.