EU backs legislation to ban forced labor in supply chains

European Union countries have agreed to a law requiring companies to ensure their supply chains do not cause environmental damage or use forced labor.

On Friday, a majority of 17 of the 27 commissioners supported the bill, with no votes against it.

This agreement was concluded only after significant changes were made to the original text.

Critics say the law is too diluted to be effective.

The Corporate Sustainability Due Diligence Directive (CSDDD) requires European companies to document that the products they import comply with environmental and human rights standards, including the absence of child labor.

They are also required to prevent or minimize potential harm and communicate the consequences.

But a compromise reached after weeks of negotiations on the draft document means only large companies with over 1,000 employees and a net turnover of at least €450m (£384m, $489m) will be affected.

Under the original proposal, companies with 500 or more employees and a turnover of 150 million euros would be affected.

The bill must be approved by the European Parliament to become law, and MEPs are also expected to support it.

Companies then have time to implement new practices.

Friday’s approval of the bill came after the Bullock twice failed to approve the bill in February.

Countries that opposed the original text included Germany and Italy, which were concerned that it would have a major impact on their industries due to the large number of small and medium-sized enterprises.

There were also concerns that companies would leave the EU due to red tape and legal risks.

Markus Beiler, executive director of the lobbying group BusinessEurope, said the new rules “add unparalleled obligations, set tough sanctions that can be life-threatening for companies, and unilaterally expose companies to lawsuits from around the world.” It will expose you to it.”

“European companies with global operations and millions of indirect relationships will be at a disadvantage compared to their global competitors,” Baylor added.

Environmentalists and human rights campaigners welcomed the move to improve corporate accountability, but expressed disappointment with the bill.

The World Wildlife Fund (WWF) said the changes to the draft wording exempted almost 70% of European companies from the new obligations.

“This nasty deal completely ignores the needs of both businesses and communities to effectively address the impacts of climate change,” said WWF spokesperson Uku Lileveri.

Marc-Olivier Harman, Oxfam’s head of economic justice, said: “They have slashed rules to appease big business, damaging Europe’s self-proclaimed status as a champion of democracy and human rights. ” he said.

The campaign group “Anti-Slavery International” posted on X (formerly Twitter), ” [European] The Council was able to come together and keep this commitment, putting people and the planet above political and business interests. ”

But he added: “While today’s progress is very positive, we know that the quality of the law is being undermined by these post-deal challenges.”