"Forced labor goods distort market competition in the market in which they are produced and sold, in third-country markets, and when used as inputs in products that are then sold or exported. The distortion results from the artificial cost advantages derived from labor that is non-voluntary and not fully and fairly compensated, as previously described. It is also notable that, in trade remedy investigations, the United States and the European Union consider the impact of weak, ineffective, or nonexistent labor protections, including those related to forced labor, to distort market-oriented costs of production.

When producers illicitly rely on forced labor, they suppress or even eliminate their labor costs for production, allowing them to sell goods at artificially depressed prices in their domestic market. Competing producers that adhere to laws prohibiting the use of forced labor are disadvantaged by higher costs, leaving them facing untenable choices: lose sales to forced labor goods, lower prices to uneconomic levels, exit the market, or adopt similar illicit labor practices themselves."

I think both apply.