Changes from plenary report to adopted text

RemovedEXPLANATORY STATEMENT

RemovedThe ILO Forced Labour Convention, 1930 (No. 29) defines forced labour as ‘all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily’.

RemovedForced labour violates the rights of more than 27 million people across the world. No region of the world is spared from forced labour, not even the European Union. The recent and multiple crises, especially the COVID19 pandemic, the climate crisis and multiple armed conflicts, most recently the Russian aggression in Ukraine, have exacerbated poverty and food insecurity, fuelling the problem of forced labour, and thus increasing the number of people in forced labour by 2,7 million from 2016 to 2021. As many other societal problems, forced labour has a disproportional negative effect on women, children and vulnerable groups in society.

RemovedThe European Parliament has called for an instrument to ban products made by forced labour on numerous occasions, and most recently, in its resolution of 9 June 2022.

RemovedThe Commission proposal, published in September 2022, has been naturally welcomed by the two co-Rapporteurs. The Commission proposal represents a first step in the right direction, as it sets up a straightforward instrument to ban products made using forced labour. The co-Rapporteurs strongly believe that with the instrument the Commission has proposed, the European Union has a unique opportunity to act and eradicate forced labour, both inside and outside the EU.

RemovedThe co-Rapporteurs are convinced that the new proposal will help not only workers abroad, but also workers in the Union. This will be done two-fold: workers suffering from forced labour in the Union will be helped directly by this proposal; and companies in our internal market who play by the rules, as well as their workers, will be protected from unfair and immoral competition. Abiding by high labour standards cannot be a disadvantage, and this proposal helps to ensure this.

RemovedIn order for the instrument to be more efficient and have more impact on the conditions of workers across the world, the co-Rapporteurs presented several changes to the Commission proposal. The draft Report contains the points of convergence between the two co-Rapporteurs, and it touches upon all the main elements of the draft Regulation.

Removed In terms of scope, and more precisely, products made with forced labour, the co-Rapporteurs believe that the packaging, transportation and distribution of goods should be covered by the proposal, given the fact that these activities are an essential part of the goods supply chain and a sector where there is evidence of existence of forced labour.

Removed Providing remediation to the workers involved in the production of product using forced labour is an absolute priority for the co-Rapporteurs. Indeed, in the co-Rapporteur’s views, remediation should be included as a condition to clear an investigation or to withdraw a decision to ban a product.

Removed The co-Rapporteurs point out differentiated impact of forced labour on vulnerable and marginalised groups, including children, women, migrants, refugees or indigenous peoples. Therefore, the co-Rapporteurs consider that an intersectional and gender sensitive approach is essential to effectively fighting forced labour.

Removed The draft report considers more closely the protection of individuals, in particular the protection of persons at risk of threats or reprisals as a result of having shared information in relation to products made using forced labour, including their eligibility for support, legal aid or physical protection.

Removed The co-Rapporteurs agree that the database should be a central element of this proposal. The co-Rapporteurs consider the Commission proposal as a good starting point, and in particular the involvement of external experts in the set up of the database, but they also suggest some improvements. For example, the co-Rapporteurs suggest the database should be based on independent and verifiable information, including reports from international organisations, in particular the International Labour Organization, civil society, business organisations, social partners, and experience from implementing Union legislation setting out due diligence requirements with respect to forced labour. In order to ensure public transparency, the co-Rapporteurs agree that the database should include a list of all open investigations and a list of all decisions taken.

Removed The co-Rapporteurs go further than the Commission proposal, including a possibility for the experts to identify specific products produced in specific geographic areas as products of high-risk of Article 3 violations. For these specific products the co-Rapporteurs strongly support a reversal of the burden of proof, placing it instead on the economic operators.

Removed Clear and comprehensible guidelines are key to help economic operators, especially SMEs to comply with this Regulation. In the co-Rapporteurs’ view, guidelines should be ready 12 months after the entry into force of the Regulation, and should include, in particular, guidance for the submissions of complaints and cooperation with national authorities. Furthermore, the co-Rapporteurs insist that the Commission should develop accompanying measures to support the efforts of economic operators and their business partners in the same value chain, in particular the small and medium-sized enterprises (SMEs).

Removed Several provisions of the draft Report focus on governance and enforcement, as the co-Rapporteurs are convinced these are key elements to allow the ban on products made with forced labour to be implemented effectively and consistently throughout the Union. In the co-Rapporteurs’ view, it is essential that the Commission is given the opportunity to intervene on an equal footing as the national competent authorities, including by giving the Commission the possibility to start investigations, take decisions and ensure the compliance of economic operators. Additionally, while welcoming the setting-up of the Union Network Against Forced Labour Products, the co-Rapporteurs believes that its capacity should be reinforced and additional tasks should be added, in order to add a true European dimension to the Network and strengthen its role. Finally, in order to avoid Member States establishing different level of penalties, the co-Rapporteurs agreed to task the Commission to establish a harmonised level of penalties. Uniform, EU-wide penalties will avoid a race to the bottom among Member States and ensure a level playing field.

Removed Finally, the co-Rapporteurs believe that the Commission should carry out an evaluation of this Regulation, assessing whether the Regulation achieved its objective, in particular with regard to reducing the number of products made with forced labour on the Union market, improving cooperation between competent authorities and strengthening the controls on products entering the Union market, while taking into account the impact on business and in particular on SMEs.

Removed18.7.2023