Washington: The United States has proposed imposing an additional 12.5% import duty on 54 countries, including India, according to a recommendation by the Office of the US Trade Representative (USTR).

The USTR cited allegations that certain goods made in India involve forced-labour practices, and said the targeted countries have failed to introduce and effectively enforce restrictions to prevent forced-labour-produced goods from entering their markets.

India has firmly rejected what it called defamatory allegations related to forced labour. New Delhi said the issue should be addressed through bilateral trade discussions and urged Washington to drop the proposed additional duty.

The USTR said the list includes India, China, Japan, Brazil, Australia, the United Kingdom and Saudi Arabia, among others. Separately, it noted that countries with trade agreements with the US could face a 10% additional duty if they have taken some steps to curb forced-labour practices.

Amid this, US lead negotiators are in Delhi for a three-day visit, holding intensive talks with Indian officials to finalise a bilateral trade agreement.