The European Commission plans to remove all goods produced by forced labour from the EU market.
On Wednesday, the European Commission presented a proposal for a regulation on prohibiting products made using forced labour on the Union market. The proposed regulation would ban products produced by forced labour from the EU market. All products in the EU would be affected, regardless of whether they are produced for domestic consumption, for export or imported from third countries, the Commission said.
The proposed regulation is of wider effect than the approach taken in the US where, under the Uyghur Forced Labor Prevention Act, imports from China’s Xinjiang region into the US are banned unless businesses can prove that the goods were produced without using forced labour. The EU regulation would apply to products produced anywhere in the world, and follows a different enforcement approach.
Dr Eike W. Grunert, compliance law expert at Pinsent Masons, said that the new proposal sets a new focus on the issue of forced labour. "With the German Supply Chain Due Diligence Act coming into force in 2023 and the proposed EU Directive Corporate Sustainability Due Diligence, numerous other human rights and also environmental issues will be addressed. To avoid risks and liability, careful risk management in the supply chain will become increasingly important for businesses. "
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