The World Briefly

April 24, 2024

Cutting the Chains

European Union

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The European Parliament approved a new law on Tuesday that would ban products made by forced labor from the European Union market, a measure aimed mainly at China but also other countries accused of engaging in the practice, Euronews reported.

With an overwhelming majority of 555 votes in favor versus six against and 45 abstentions, the law is aimed at eliminating products tainted by modern slavery and human rights abuses, and targets both imports and exports.

Scheduled to take effect in 2027 pending approval from EU nations, the regulation will empower national authorities to investigate and prohibit products suspected of being linked to forced labor.

If suspicions arise regarding non-EU countries, the European Commission can launch investigations.

Companies found violating these rules face fines, while products made from forced labor already circulating in the EU will be donated, recycled or destroyed.

Lawmakers said the new rules will play a crucial role in protecting human lives and strengthening the European market.

Analysts said the legislation seeks to begin tackling the global crisis of forced labor and illegal profits stemming from it: The International Labor Organization estimates that around 28 million people worldwide are subjected to forced labor, generating $236 billion annually.

While the new regulations target products everywhere in the world, the measures are seen as a deliberate move against countries such as Turkmenistan and China, where there is evidence of state-sponsored forced labor, the news outlet wrote.

A new report showed links between major European clothing brands and forced labor in China’s Xinjiang region, where Beijing is accused of conducting systemic human rights abuses against Muslim Uyghurs and other minority ethnic groups.

Some lawmakers said the bill will help strengthen the market and protect human lives. But despite support, the legislation has faced resistance from policymakers since it was first proposed in 2022.

Critics, such as Germany’s pro-business Free Democratic Party, warned about excessive bureaucracy and disruptions to supply chains.

One of the chief concerns is that the new rules could lead to shortages in “sensitive” components needed in Europe for its transition to green energy. In a compromise, the new law includes provisions for critical products, allowing for delayed bans until companies demonstrate compliance.

Even so, workers’ rights advocates cautioned that the law lacks measures for victim remediation and falls short of addressing state-imposed forced labor in high-risk areas such as Xinjiang.

This story originally appeared in the April 24, 2024 newsletter, Finding a Foothold.