European Parliament approves EU-wide ban on products produced with forced labor – more or less a done deal

Yesterday, the European Parliament approved the proposed EU forced labor Regulation. The Regulation will prohibit the sale, import and export of goods made using forced labor.

As noted in the Parliament press release, decisions to investigate will be based on factual and verifiable information. This may include, for example, information received from international organizations, cooperating authorities and whistleblowers. Several risk factors and criteria will be taken into account, including the prevalence of state-imposed forced labor in certain economic sectors and geographic areas.

Manufacturers of banned goods will have to withdraw the products from the EU single market and donate, recycle or destroy them. Non-compliant companies can be fined. Goods may be allowed back on the EU single market once the company eliminates forced labor from the product supply chain.

The Regulation was adopted with overwhelming support – 555 votes for, 6 against and 45 abstentions. The next step is for the text of the Regulation to receive final formal approval from the EU Council. Reports indicate that this is expected to occur after the June EU elections, sometime during the third quarter. The Regulation will then be published in the Official Journal. The Regulation will take effect three years after it enters into force, in 2027.

Forced labor import bans also are in place in the United States (see here), Canada and Mexico (see here). Several jurisdictions also have modern slavery reporting statutes. The newest of these is Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act. The first reports under that Act are due on May 31 (see here, here and here). Mandatory human rights due diligence requirements also are increasing. More on those developments in a later post.

About our practice

Ropes & Gray has a leading ESG, CSR and business and human rights compliance practice. We offer clients a comprehensive approach in these subject areas through a global team with members in the United States, Europe and Asia. Senior members of the practice have advised on these matters for more than 30 years, enabling us to provide a long-term perspective and depth and breadth of experience that few firms can match. For further information on the practice, click here.

Subscribe to Ropes & Gray Viewpoints by topic here.