On Tuesday, negotiators from the European Parliament and the European Council achieved a provisional agreement concerning new regulations aimed at prohibiting products manufactured with forced labour from entering the EU market.
The agreement outlines a framework for implementing this ban, which includes provisions for conducting investigations, deploying new IT solutions, and fostering cooperation with relevant authorities and countries.
Investigations will be conducted by national authorities or, if third countries are implicated, by the EU Commission.
If an investigation reveals the use of forced labour within a company’s supply chain, authorities are empowered to demand the withdrawal of relevant goods from the EU market and online platforms, with the possibility of confiscation at borders.
These goods are then required to be either donated, recycled, or destroyed. In cases involving goods of strategic importance for the Union, they may be withheld until the company rectifies the issue of forced labour within its supply chain.
Non-compliant firms may face fines, although banned products can be readmitted to the market upon the elimination of forced labour from their supply chains.
At the insistence of the Parliament, the Commission will compile a list of specific economic sectors and geographical regions where state-imposed forced labour is prevalent, which will serve as a criterion for initiating investigations.
Additionally, the Commission may identify high-risk products or product groups, mandating importers and exporters to provide additional details to EU customs, such as information on manufacturers and suppliers.
A new Forced Labour Single Portal will be established to facilitate the enforcement of the regulations, featuring guidelines, ban information, a database of risk areas and sectors, publicly available evidence, and a whistleblower portal.
Furthermore, a Union Network Against Forced Labour Products will enhance cooperation among authorities.
The regulations also outline provisions for cooperation with third countries, potentially involving information exchange, best practices sharing, and even checks and inspections in third countries with the agreement of relevant companies and governments.
Co-rapporteur Samira Rafaela hailed the agreement as groundbreaking in the realm of human rights, emphasising its role in preventing forced labour products from entering the EU market and its focus on remediation.
Co-rapporteur Maria-Manuel Leitão-Marques underscored the persistent issue of forced labour and the necessity of the instrument provided by the agreement to combat it.
The next steps involve final approval from both the European Parliament and Council, followed by publication in the Official Journal and entry into force the subsequent day.
EU member states will then have three years to begin implementing the new rules.
The forced labour regulation concentrates on products and does not impose additional due diligence requirements on companies that do not engage in forced labour within their supply chains.
However, it is closely associated with the directive on Corporate Sustainability Due Diligence, which is yet to receive final approval from the Council.
Nike and forced labour in China.
Canada’s ethics watchdog subsequently launched investigations into allegations that Nike Canada and Dynasty Gold, a gold mining company, benefitted from Uyghur forced labour in their China operations.
U.S. Senator Marco Rubio.
Nike stated that they no longer have ties to the companies accused of using Uyghur forced labour.
According to UN estimates, China has detained more than a million Uyghurs and other Muslims in camps in Xinjiang.
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