MEPs voted on Tuesday to ban products made from forced labor – China in their sights – before another vote on Wednesday to ratify a “duty of vigilance” imposed on companies to protect the environment and human rights in their chains of production. The European Parliament and member state negotiators agreed in early March on legislation banning the marketing in the EU of products made from forced labor – which could concern Chinese production involving the Uyghur Muslim minority. The text was adopted by an overwhelming majority (555 for, 6 against, 45 abstentions) in plenary, before the final formal confirmation of the States.
“Europe cannot export its values while importing products made from forced labor. The fact that the EU finally has a law to ban these products is one of the greatest successes of this mandate,” underlined the Socialist MEP Maria-Manuel Leitao-Marques, co-rapporteur of the text. For certain products deemed to be at risk, importers will have to provide detailed information on the manufacturers. Above all, Brussels will create an updated database and establish a list of sectors affected by state-imposed forced labor in specific regions: a key criterion for opening an investigation.
Uighurs
This could concern the Chinese region of Xinjiang: several Western countries have condemned the practice of massive forced labor carried out by the Chinese government against the Uighur minority, which Beijing contests. A law adopted at the end of 2021 by the American Congress prohibits the importation of products from Xinjiang into the United States, unless companies can prove that their production does not include forced labor. “Victory!”, declared MEP Raphaël Glucksmann, head of the French socialist list in the European elections, on X. “It is the culmination of 4 years of citizen mobilization and political fight against the enslavement of the Uighurs, then long months of negotiations,” he added.
Forced labor affected 27.6 million people worldwide in 2021, including 3.3 million children, according to the International Labor Organization. According to the text, the European Commission will launch investigations in the event of suspicions in supply chains in third countries. If the use of forced labor is proven (the decision will be taken by a committee bringing together the Twenty-Seven), the products will be seized at the borders and will have to be withdrawn from the European market like online platforms. If the risk concerns an EU member state, national authorities will lead the investigation. “Essential or strategic goods may, however, be withheld (and not destroyed) until the company eliminates forced labor from its supply chains,” the lawmakers said.
“Major implications”
MEPs must also endorse separate legislation on Wednesday imposing a “duty of vigilance” on companies. “These two texts are closely connected, sides of the same coin,” insists environmentalist MEP Anna Cavazzini. The companies concerned will be required to prevent, identify and correct violations of human and social rights (child labor, forced labor, safety, etc.) and environmental damage (deforestation, pollution, etc.) in their supply chains. value across the globe, including their suppliers, subcontractors and subsidiaries.
The European Parliament and States concluded a political agreement in December on this unprecedented text. After failing twice to find the required majority, the Twenty-Seven finally formally ratified it in mid-March – at the cost of a clearly limited scope of application. The December agreement provided that the rules would apply to groups with more than 500 employees and with a net global turnover of at least 150 million euros, as well as to companies with 250 employees or more if their sales exceed 40 million euros and half come from risky sectors (textiles, agriculture, minerals, etc.). Finally, the final text only targets companies with 1,000 employees or more with a turnover of at least 450 million euros. With these modified thresholds, only 5,400 companies would be affected, compared to 16,000 in the initial agreement in December, according to the NGO Global Witness.
The text obliges these large companies to develop a climate transition plan – but removes the obligation initially planned to link the variable remuneration of managers to compliance with carbon emissions objectives. And financial institutions are not concerned.