Well the other nations might be denouncing you because they view you as competition in the slavery arena. Growth decreases because instead of reproducing, those people are working all the time.
Idea for implementing slavery through an early civic. The player would have 4 settings for their slavery level.
0. No slavery, no bonus.
1. Indentured Servitude - 20% production bonus in that city, but 50% less growth.
2. Foreigners as Slaves - 40% production bonus, but 75% less growth and...
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