Labour standards have long been a controversial issue in global trading environment. In particular forced labour in global supply chains poses a significant challenge and regulation on forced labour is becoming a key component in trade legislations.
T...
Labour standards have long been a controversial issue in global trading environment. In particular forced labour in global supply chains poses a significant challenge and regulation on forced labour is becoming a key component in trade legislations.
The Uyghur Forced Labor Prevention Act or “UFLPA”, which entered into force in the United States on June 21, 2022, is a leading example, and in a similar vein the European Commission announced on 14 September 2022 the Proposal for a Regulation on prohibiting products made using forced labour on the Union market. Although the United States’ UFLPA and the Commission’s proposal have similar regulatory objectives and some institutional elements in common, the differences are also evident. For example, the Commission’s proposal is different from the geographical scope of the UFLPA in that it does not target products made by forced labour originating from a specific country, region, or company; and applies to not only imported products but products produced within the EU. Further, certain differences can be identified as regards designation of competent authorities and the burden of proof for violation of obligations.
It is expected that the United States and EU will persistently attempt to develop a certain trend in a particular direction to address forced labour for the entire supply chain of products. Since the United States‘ UFLPA and the Commission’s proposal, future international trade agreement negotiations are likely to require a higher level of labor standards, especially in relation to forced labour issues. While joining this trend in a broader framework, this study stresses that a detailed plan and a thorough examination on potential legal risks should be followed when domestically introducing laws and systems for regulatory measures that link labour standards and supply chains, such as import prohibitions of products made by forced labour targeted on certain companies, regions, or countries.