The European Union is on the brink of implementing a ban on goods produced through forced labor, following a provisional agreement reached on Tuesday.
The legislation, aimed at specific economic sectors where state-imposed forced labor occurs, awaits approval from the European Parliament and the Council, comprising EU member states.
While the ban refrains from explicitly naming China due to World Trade Organization regulations, as per reports, it was primarily prompted by allegations of state-sponsored forced labor in Xinjiang, China.
This legislation, unlike the US ban targeting Xinjiang, applies globally, encompassing products from all regions, including within the EU.
Debate among negotiators centered on the administration of the ban, with concerns raised over resource allocation for its global enforcement. Commission sources underline the necessity for additional staff resources from member states to effectively implement the ban.
Under the agreement, the European Commission will investigate supply chains flagged for suspicions outside the EU, while member states will handle investigations within the union. If forced labor is discovered in a supply chain, authorities can demand withdrawal of goods from sale and detainment at borders until remediation occurs.
Furthermore, the Commission will compile a list of regions suspected of employing forced labor and identify products with a higher risk of such practices. Importers and exporters of these products will be required to provide additional details to EU customs.
Lawmakers hail the agreement as groundbreaking in human rights, aiming to prevent forced labor products from entering the EU market and emphasising the importance of fair trade and supply chain transparency.
However, recent events cast doubt on the legislation’s passage, as EU member states previously thwarted a directive requiring companies to conduct forensic audits of their suppliers’ human rights records, particularly in China.
Pressure on the EU to address forced labor intensified following a UN report implicating the Chinese government in potential crimes against humanity in Xinjiang. Campaigners advocate for importer accountability similar to US legislation, criticizing the proposed risk-based approach.
While the EU faces criticism for its proposed legislation, companies like BASF have already announced divestment from Xinjiang ventures due to reported human rights abuses, prompting calls for others, such as Volkswagen, to follow suit.
