Switzerland rejects US forced labour claims as tariff talks continue

ZURICH, June 5 (Reuters) - Switzerland will continue trade talks with the United States while rejecting allegations that it failed to combat imports of goods made with forced labour, the government said on Friday.

The government said it would restate its position in writing, arguing its approach focusing on supply chains was effective, as Washington considers additional tariffs of 12.5% on Switzerland.

"The Federal Council strongly rejects the allegations made in the course of this investigation," the government said, adding that Switzerland's approach combines regulation, mandatory private-sector risk assessments and international cooperation.

The U.S. findings, published on June 2, followed Section 301 investigations launched in March into alleged unfair trade practices, including industrial overcapacity and enforcement against forced labour goods.

The proposed tariffs would not take effect immediately, with interested parties first invited to submit comments ahead of a public hearing.

The additional U.S. tariffs are likely to replace the current 10% additional tariffs that are in force until July 24, the government said, while additional tariffs may be imposed because of a U.S. investigation into overcapacity.

(Reporting by John Revill, Editing by Miranda Murray)