Thank you for the question, Mr. Chair.
I think there are a number of factors feeding into U.S. decision-making with respect to the section 301 investigation. Ambassador Greer has stated publicly that part of the motivation behind looking into forced labour regimes is to increase and enhance enforcement of the existing prohibitions and to encourage countries that have not put in place prohibitions to move forward in that direction. As noted in the report on the investigation, they found that there are a number of countries that have not put in place bans, and countries, including Canada, that have, but they are encouraging greater enforcement.
There is also the underlying motivation behind this: the fact that a number of the U.S. broad-based tariffs, including the section 122 tariffs, are expiring as of the end of July. There is some sense that part of the motivation behind the U.S. is finding an alternative source of tariff authority. I think the findings of the USTR need to be looked at in that context as well.
