This is a specialized legislative research report published by the National Diet Library in the "Foreign Legislation" series in August 2025, dealing with legal analysis of the European Union (EU) regulation prohibiting products made with forced labor.
International Background of Regulation Enactment
According to International Labour Organization (ILO) reports, an estimated 28 million people worldwide remain in forced labor situations in the 21st century, with approximately 17 million forced to work in the private economic sector. Forced labor problems integrated into international supply chains - including cotton and solar panel production in Xinjiang Uyghur Autonomous Region, fisheries and palm oil production in Southeast Asia, and cobalt and diamond mining in Africa - have been continuously highlighted by human rights organizations and international institutions. Facing criticism that the EU indirectly contributes to human rights violations through these products' circulation in European markets, the need for comprehensive legal responses was recognized, leading to this regulation's enactment.
Legal Structure and Scope of Regulation
The EU Forced Labor Products Prohibition Regulation has legally binding force comprehensively prohibiting import to EU markets and domestic sales and distribution of products made with forced labor. Application targets include all products using forced labor at any supply chain stage from raw materials to final products, comprehensively applying across industries including textiles, electronics, agricultural products, and mineral resources. EU domestic companies' production activities in third countries are also regulated, with corporate due diligence obligations explicitly stipulated.
Enforcement Structure and Monitoring Mechanisms
For effective regulation implementation, multi-layered monitoring and enforcement structures connecting the European Commission, member state customs authorities, and labor inspection agencies have been constructed. Import suspension authority for suspicious products, on-site investigation authority, and corporate information provision request authority are granted to each agency, with technical means including AI-powered risk assessment systems, satellite imagery analysis for production site monitoring, and blockchain technology-based supply chain tracking systems introduced. Violating companies face sanctions up to 4% of annual revenue or €20 million.
Corporate Compliance Obligations
Companies operating in EU markets have legal obligations including supply chain-wide forced labor risk identification and assessment, prevention and mitigation measure implementation, periodic auditing and reporting, and victim remedy mechanism construction. Particularly large companies (500+ employees, €150 million+ annual revenue) face stricter human rights due diligence obligations, requiring supply chain transparency assurance, third-party certification acquisition, and worker complaint filing system provision.
Relationship with International Trade Law
This regulation's consistency with World Trade Organization (WTO) non-discrimination and most-favored-nation principles becomes an important issue. The EU argues this regulation is not targeting specific countries or companies but rather necessary minimum trade restrictions based on legitimate human rights protection policy objectives, though some countries including China have criticized it as WTO rule violations. International policy coordination with the US "Uyghur Forced Labor Prevention Act" and Canada's "Modern Slavery Act" also becomes important.
Economic Impact and Industrial Transformation
This regulation's implementation forces fundamental production process reviews for companies worldwide exporting to EU markets. Particularly in labor-intensive industries (textiles, electronics assembly, agriculture), structural transformations including production location changes, procurement source diversification, and automation investment promotion are advancing. However, economic side effects including compliance cost increases, supply chain complexity, and excessive burdens on small and medium enterprises are also pointed out, with consideration measures including technical support, financial assistance, and grace period establishment being examined.
Significance as Human Rights Diplomacy
The EU Forced Labor Products Prohibition Regulation is positioned as a new form of human rights diplomacy means alternative to economic sanctions, drawing international attention as symbolic policy of "values-based trade policy." "Regulatory globalization" effects promoting global labor standard improvement through EU market economic influence leveraging are expected.
The article provides comprehensive legal policy analysis of how the EU Forced Labor Products Prohibition Regulation influences similar policies in other major economic regions and what effects it brings to human rights standard improvement in global supply chains as a new legal framework in the intersection of international human rights law, international labor law, and international trade law.