Government Urges Industry to Look Deeper Into Supply Chains for Forced Labor
Government representatives from the State Department, the Office of the U.S. Trade Representative and Homeland Security and an official from the International Labor Organization reminded importers that there are tools to help them source responsibly, such as "Better Work," Responsible Sourcing and "Comply Chain." Josh Kagan, acting assistant U.S. trade representative for labor, told attendees "we want to be in partnership with the business community and recognizing that you are an important player in the global fight against forced labor." The speakers were convened at a U.S. Chamber of Commerce virtual event July 30 called "Tackling Forced Labor."
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While the business speakers said they share the government goal of eliminating forced labor, Stefan Marculewicz, co-chair of the business and human rights practice group at Littler Mendelson, said that when governments move beyond disclosure and transparency laws to requiring measures to identify and avert human rights risk, that's problematic. "The U.S. Chamber is deeply concerned about legislation that would impose a one-size-fits-all solution," he said, and also is troubled by the possibility that Congress could pass a law in reaction to the recent Nestle Supreme Court case, which would allow people to sue U.S. companies for actions of their suppliers. He said such legislation could lead companies to pull out of developing countries altogether, depriving poor people of the income they rely on.
He also said that in addition to working with Canada and Mexico as they implement bans on the importation of goods made with forced labor, the agency is working to use its trade and investment framework talks with trading partners to fight forced labor. He noted that the topic was discussed with Taiwan last month.
Eric Choy, a top official on CBP's forced labor enforcement team and a deputy assistant DHS secretary for trade, said everyone has noticed the increased actions by CBP on forced labor. "Forced labor is modern-day slavery that hurts vulnerable workers, undermines the competitiveness of U.S. businesses, and exposes American consumers purchasing unethical goods," he said. He said that CBP's civil enforcement authorities "are an effective tool to provide economic pressure to end forced labor practices overseas."
He noted that CBP engages with the private sector on forced labor enforcement through COAC, and events like this one. He said his department's "ultimate mission is protecting U.S. industry, U.S. workers, and to build a better, more compliant and more secure U.S. economy and supply chain system. The department doesn't intend to take any actions that will isolate us from our global economic partners at large, because economic interdependence is a key to successful industries, and a secure economy."
Choy noted that CBP recently held an industry day to learn about tracing tools and artificial intelligence software that could help businesses assess risk more deeply in their supply chains.
Kagan, Choy and Kari Johnstone, the acting director of the State Department's office in charge of monitoring trafficking in persons, all noted the new Xinjiang business advisory. "In China, the government itself is the trafficker," she said, with Uyghurs and other ethnic minorities forced to work in the carpet, garment, footwear, yarn and solar power industries.
Kagan said that although USTR is trying to hear more from workers, that doesn't mean its door is closed to business in the new administration. “We are always available for folks that want to talk through problems," he said.