The European Parliament has overwhelmingly approved comprehensive new regulations to eliminate products tainted with forced labour from the EU market. The law, passed with a resounding majority, targets both import and export markets to eradicate modern slavery and human rights abuses from global supply chains.
The regulation empowers national authorities to investigate products suspected of forced labour links and ban their entry into the EU market. The European Commission can initiate probes of suspected forced labour cases in third countries and request inspections from their governments. Products already in circulation that are found to be linked to forced labour will be donated, recycled, or destroyed. Companies that fail to comply with the new rules will face substantial fines determined by member states.
This groundbreaking legislation targets a growing trend of cheap products made with forced labour infiltrating the EU market, leading to an increase in forced labour victims and illicit profits. The International Labour Organization estimates that 28 million people worldwide endure forced labour, generating a staggering $236 billion in annual profits.
The EU’s move follows a worrying trend of major European clothing brands being linked to forced labour in China’s Xinjiang region, where systemic abuses against Uyghurs and other minority groups have been documented. Reports suggest that brands like H&M and Zara may be sourcing materials from forced labour camps in Xinjiang, which accounts for a significant portion of China’s cotton production and global supply.
The US has taken a lead in combating forced labour by implementing a law that prohibits the import of goods manufactured in Xinjiang unless importers can prove that they are free from forced labour. Lawmakers in the US are also investigating Chinese retail giants Shein and Temu, along with Adidas and Nike, for potential connections to Uyghur forced labour.
The EU legislation, initially proposed by the Commission in September 2022, faced delays and challenges. However, negotiations accelerated between the parliament and EU capitals, allowing for swift adoption before the upcoming European elections in June.
While the plans have garnered widespread support, critics have expressed concerns about excessive bureaucracy and potential disruptions to critical raw material supply chains. The legislation includes provisions that allow companies supplying critical products to temporarily withhold their products if they cannot demonstrate their operations are free from forced labour.
Despite these concerns, civil society organizations have highlighted limitations in the new regulation, particularly the lack of an obligation for companies to provide compensation to victims before lifting a product ban. They also regret the absence of a presumption of state-sponsored forced labour in high-risk areas and sectors.
In response, the EU Commission will compile a list of high-risk areas and sectors, and an online platform will be established for stakeholders to access relevant information. The Environmental Justice Foundation has urged member states and European institutions to ensure the robust implementation and enforcement of these new rules to effectively combat forced labour and protect human rights in global supply chains.
