THE WHAT?  In a significant legislative move, the European Parliament approved rules aimed at banning the sale, import, and export of goods within the EU that are made using forced labor. This decision underscores a growing legislative trend toward reinforcing human rights within global trade practices.

THE DETAILS   This legislation, driven by concerns over human rights violations in China’s Xinjiang region, mirrors a similar law enacted by the United States in 2021. The U.S. law was established to protect its market from products potentially compromised by the human rights abuses in Xinjiang, a key cotton-producing area also known for its contribution to the global solar panel market. China, however, continues to deny any wrongdoing in the region.

THE WHY? Under the new EU rules, national authorities across the 27-country bloc or the European Commission itself will have the power to conduct investigations into suspicious goods, supply chains, and manufacturers. These preliminary investigations are mandated to conclude within 30 working days. Products found to be produced with forced labor will be prohibited from being sold within the EU, and affected shipments will be stopped at the EU’s borders.