EU Forced Labor Regulation
Governmental Agency: European Commission
Jurisdiction: European Union
Ref no: 2022/0269(COD)
Status: IN REVIEW
This regulation, first proposed by the Commission in September 2022, seeks to prohibit products made using forced labor to be sold in the EU or exported from the EU market. The Commission would establish a database, the Forced Labor Single Portal, with verifiable and regularly updated information regarding forced labor risks, including reports from organizations like the International Labor Organization. This should support the investigation of possible violations of the regulation. If a violation is found, the authorities can demand that relevant goods be withdrawn from the EU market and online marketplaces, and confiscated at the borders. The products would then have to be donated, recycled or destroyed. Products of strategic or critical importance for the Union may be withheld until the company eliminates forced labor from its supply chains.
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The forced labor regulation focuses on products and will not place additional due diligence requirements on companies that do not use forced labor in their supply chains. However, it is often associated with the directive on Corporate Sustainability Due Diligence. Firms in violation of the regulation would be fined—though if they eliminate forced labor from their supply chains, banned products can be allowed back on the market.
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The Council adopted its negotiating position on January 26, 2024. The Council and the European Parliament reached a provisional deal on March 5, 2024. On April 23, it was approved by the European Parliament with overwhelming support—555 votes for, 6 against and 45 abstentions—and now the next step is for the Regulation to receive final formal approval from the EU Council.
