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Understanding Forced Labor Trade Laws: What You Need to Know

10 January 2024 by Janet Myers

Globalization has brought myriad benefits to businesses and consumers alike. However, with it comes the dark side of exploitation — forced labor. Forced labor, also known as modern-day slavery, exists in different industries, including agriculture, textile, construction, and even domestic work. There are now international laws in place to combat this social ill, and this blog will guide you through what you need to know about forced labor trade laws.

What Are Forced Labor Trade Laws?

Forced labor trade laws are international laws that govern activities related to organizations engaging in trade and commerce within and outside of their countries. These laws are designed to put a stop to forced labor and other labor-related abuses, including child labor. These laws provide a framework for identifying risks of slavery and forced labor in supply chains and the specific actions businesses are expected to take to identify, prevent, and mitigate these risks. 

Who Is Affected by Forced Labor Trade Laws?

Forced labor trade laws affect businesses of all sizes that use foreign suppliers or subcontractors. Although large organizations often come under the spotlight of these laws, small and medium-sized businesses are also now subject to these rules. You must consider your company's impacts on human rights and take steps to identify, prevent, and remediate adverse impacts.

Compliance Challenges and Solutions

Complying with forced labor trade laws requires businesses to conduct extensive supply chain due diligence. This task involves tracking both direct and tier suppliers to root out any red flags related to labor exploitation. While this task may seem daunting, solutions such as supplier monitoring software, in partnership with NGOs, and other stakeholders such as trade unions, can help ease the burden. Businesses can also leverage responsible business practices and mutual learning from their suppliers to manage the risks of exploitation.

Benefits Of Compliance

With the ethical dimensions of economic transactions becoming more important to consumers than ever before, taking action to comply with forced labor trade laws can create considerable benefits in the marketplace. By demonstrating a commitment to human rights, your company can build a strong reputation, enhance your brand, and increase your customer base. Additionally, taking steps to eliminate modern-day slavery from your supply chain improves worker welfare and guarantees that the products you sell are free from exploitation.

Forced labor is a modern-day plague affecting people across the globe. However, as a business owner, you can play a crucial role in ending this social evil and creating a fairer world. By creating robust supply chains that promote sustainability and human rights, you can comply with forced labor trade laws, reap the benefits for your business, and establish a legacy of ethical business practices that the younger generation will be proud of. Remember that preventing forced labor is an ongoing commitment, so keep monitoring your supply chains and working to continuously improve your practices.

For more information on forced labor trade law, contact a professional near you.

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