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DRAFT OPINION (COM(2022)0453 – C90307/2022 – 2022/0269(COD))

On the proposal for a regulation of the European Parliament and of the Council on prohibiting products made with forced labour on the Union market

AFET-PA-745348

Committee on Foreign Affairs · Rapporteur: Salima Yenbou

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The Committee on Foreign Affairs gives its opinion on the Commission proposal for a regulation banning products made with forced labour from the Union market. It welcomes the proposal but lists shortcomings and tables 38 amendments. The amendments add rules on consulting and protecting stakeholders, shift the burden of proof onto economic operators, require remediation for victims, and link the ban to EU sanctions regimes. They also cover the forced labour risk database, guidelines, definitions of remediation and stakeholders, and cooperation with third countries.

Committee position. The Committee on Foreign Affairs calls on the Internal Market and Consumer Protection and International Trade committees to take into account its amendments, which welcome the proposal but address shortcomings on stakeholder consultation, burden of proof, remediation, sanctions and the database.

Key points

  1. Forced labour violates fundamental human rights and is prohibited by Article 5(2) of the EU Charter of Fundamental Rights and Article 7(1) of the Rome Treaty of the International Criminal Court.
  2. The rapporteur welcomes the Commission proposal and its reference to the EU's 2020-2024 Action Plan on Human Rights and Democracy, but identifies shortcomings that would harm efforts to eradicate forced labour.
  3. Relevant stakeholders, including workers, workers associations and human rights defenders, must be consulted and engaged at all stages of investigation and international cooperation, and protected regardless of their country of origin.
  4. The burden of proof should fall on economic operators, in line with their due diligence duty, rather than on competent authorities.
  5. Corrective actions must include remediation for victims of forced labour, and remediation should be considered when lifting bans and included in Commission guidelines.
  6. Corrective actions should connect to the EU Global Human Rights sanctions regime (EU Magnitsky Act) and economic sanctions regimes targeting individuals, entities and countries that do not respect the prohibition.
  7. The forced labour risk database should involve stakeholder engagement, be accessible to human rights defenders, civil society and local communities, and products listed in it should be presumed in violation of Article 3.
  8. The amendments add definitions of 'remediation', 'relevant stakeholders' and 'meaningful engagement of stakeholders' to align with the Corporate Sustainability Due Diligence Directive.
  9. The prohibition should cover products at any stage of production, manufacture, harvest and extraction, including shipping and transport towards and within the Union market.
  10. The Commission should issue guidelines on due diligence, forced-labour risk indicators, remediation measures, meaningful stakeholder engagement and corrective actions, with particular focus on SMEs.
  11. Competent authorities should grant reasonable time to economic operators to identify, mitigate, prevent, remediate and end forced labour risks, and should not investigate where there is no substantiated concern.
  12. The Union should cooperate with third countries, international organisations, stakeholders and civil society, and support partner countries in ratifying and implementing ILO conventions on forced labour.

Who is affected

  • Economic operators, who would bear the burden of proving forced labour was not used and must carry out due diligence and remediation.
  • Relevant stakeholders, including workers, trade unions, local communities, indigenous people, human rights defenders and civil society organisations, who gain consultation and protection rights.
  • Victims of forced labour, who would be entitled to remediation under the amendments.
  • Micro, small and medium-sized enterprises (SMEs), for which guidelines and accompanying measures would be provided.
  • Third countries, in particular developing countries, which would receive support for implementing ILO conventions and could face sanctions.

Figures and deadlines

  • More than 3.3 million children are estimated to be in situations of forced labour.
  • Over half of children in forced labour are in commercial sexual exploitation.
  • Children account for about 12 % of all those in forced labour.
  • Economic operators and relevant stakeholders must submit information within 15 working days from the request.
  • The database must be made publicly available at the latest 24 months after the entry into force of the Regulation.