Nigeria, Saudi Arabia, India and 57 other countries face possible new US trade penalties over forced labour concerns

• Nigeria is among 60 economies targeted in a new US trade action.

• The US is considering a 12.5% tariff on some Nigerian exports.

• Washington says the countries failed to effectively block goods linked to forced labour.

• The proposal has not yet been approved and remains under review.

Nigeria could face new trade penalties from the United States after being listed among 60 economies accused of failing to effectively prevent the importation of goods produced with forced labour.

The move could result in an additional 12.5 per cent tariff on certain exports to the American market if the proposal is eventually approved by the US government.

The decision was announced by the Office of the United States Trade Representative (USTR), which concluded that several countries had not taken sufficient steps to ban or enforce restrictions on goods linked to forced labour.

According to the USTR, the countries' actions, or lack of enforcement, create unfair competition for American businesses and workers.

Nigeria was placed in the higher tariff category and could face an additional 12.5 per cent duty on exports to the United States if the proposed measures are adopted.

The tariffs have not yet taken effect. The proposal is currently undergoing a public consultation process before any final decision is made.

Apart from Nigeria, several other countries were included in the investigation. They include:

• South Africa

• Egypt Ghana

• Kenya• Ethiopia

• Tanzania• Uganda

• Algeria• Morocco

• Tunisia• India

• Indonesia

• Thailand

• Vietnam

• Malaysia

• Pakistan

• Bangladesh

• Turkey

• Saudi Arabia

• United Arab Emirates•

• Brazil

• Argentina

• Chile

• Colombia

• Mexico

Dozens of other economies across Africa, Asia, the Middle East, Europe and Latin America were also named in the investigation.

The United States argues that countries that allow goods produced with forced labour to enter their markets contribute to unfair trade practices because such products are often produced at lower costs than goods made under internationally accepted labour standards.

If the proposed tariffs are eventually implemented, some Nigerian exports could become more expensive in the United States, potentially affecting their competitiveness in one of Nigeria's most important export markets.

RELATED: How Libya’s stolen weapons ended up with terrorists in Nigeria — UN raises alarm

The development comes as Nigeria continues efforts to expand non-oil exports and strengthen trade relations with major economies around the world.

For now, the tariffs remain proposals, but Nigeria's inclusion on the list places the country among those facing increased scrutiny from Washington over labour-related trade practices.