September 10, 2009  
LABOR DEPT. PUBLISHES LIST OF PRODUCTS BELIEVED TO BE MADE WITH FORCED OR CHILD LABOR

 The Department of Labor published today a list of 122 products from 58 countries that are believed to be made with child or forced labor. This list should concern global vendors and suppliers because it is likely to affect U.S. importers' assessment of risks associated with sourcing from particular countries and could increase consumer pressure for increased transparency and traceability of the listed products.

The products on the DOL list include the following.

Textiles and toys from China
Sugarcane from the Dominican Republic
Cotton from Uzbekistan
Diamonds and gold from the Democratic Republic of Congo
Garments from India and Jordan

This list has been published in accordance with the Trafficking Victims Protection Reauthorization Act of 2005, which also requires the DOL to take steps to ensure that the listed goods are not imported into the U.S., including working with producers to help set standards to eliminate the use of forced or child labor. Importers and exporters of the listed goods would be well-served to seek ways to participate in this process so that these standards reflect business realities and promote compliant practices. Importers and exporters should also begin moving now to ensure their own operations will pass muster, through measures such as assessing and understanding risk levels, strengthening compliance programs, ensuring due diligence on monitoring enforcement, developing and documenting best practices, and effectively communicating efforts to appropriate audiences.

The DOL list is only one of numerous efforts by the U.S. government to crack down on labor violations abroad. For instance, the 2008 Farm Bill requires the Department of Agriculture, with input from a consultative group composed of a wide variety of stakeholders, to issue by June 2011 guidelines for a voluntary initiative that will help companies address forced and child labor issues in the agriculture sector. These guidelines are expected to include standards for supply chain compliance and reflect the current trend toward monitoring and certification programs. In addition, a pending customs reauthorization bill would tighten existing statutory prohibitions on the importation of goods made with forced labor by (a) removing the "consumptive demand" clause, thereby eliminating an exemption that allows prohibited goods to be imported if the U.S. cannot produce enough of those goods to meet domestic demand, and (b) banning the importation of goods produced with trafficked labor. The bill would also prescribe specific civil penalties for those who import prohibited goods and create a new office within U.S. Immigration and Customs Enforcement to monitor imported products and enforce statutory prohibitions.

ST&R can help you comply with current and future labor-related requirements and turn a potential liability into a competitive advantage. Our Washington, D.C., office has a unique team of professionals with extensive experience in corporate social responsibility strategies and stakeholder relations who can provide assistance. For more information, including how to participate in one of ST&R's upcoming webinars on this important topic, please contact:

  
Donna Chung
Washington, D.C.
Tel: (202) 216-9307
Fax: (202) 842-2247
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