Forced Labor Bans, Labor Strikes, and a UFLPA Enforcement Alert

In this trade news roundup, we will cover the latest developments in the international trade industry. From the U.S. government's expansion of the list of companies barred from importing goods linked to Uyghur forced labor in China, to the potential labor strike at East Coast and Gulf Coast ports, and the importance of proactive measures in complying with the Uyghur Forced Labor Prevention Act (UFLPA). This knowledge is crucial for industry professionals as it provides insights into evolving trade regulations, labor negotiations, and enforcement efforts, which can impact supply chains, trade operations, and compliance strategies. Understanding these developments can help you prepare for potential disruptions, navigate compliance requirements, and make informed decisions to ensure the efficiency and integrity of their import/export activities.

U.S. Bars Imports and Takes a Stand

The U.S. government has expanded its list of companies barred from importing goods allegedly linked to Uyghur forced labor in China, including shoe manufacturer Dongguan Oasis Shoes Co, electrolytic aluminum maker Xinjiang Shenhuo Coal and Electricity Co, and food processor Shandong Meijia Group Co. The Department of Homeland Security emphasized its focus on key sectors like seafood, aluminum, and shoes in Xinjiang, aimed at preventing goods made with forced labor from entering the U.S. market. This move reflects ongoing concerns about human rights abuses in Xinjiang and the impact on global supply chains.

Highlights:

• The U.S. adds three companies to the list barring imports tied to Uyghur forced labor in China.
• Targeted firms include a shoe manufacturer, aluminum maker, and food processor in Xinjiang.
• Department of Homeland Security underscores the importance of blocking goods made with forced labor.
• Chinese embassy denies allegations of forced labor in Xinjiang, calling them a tool to destabilize the region and contain China’s development.

Read the full article here

Risk of East Coast and Gulf Coast Ports Labor Strike Increases

The International Longshoremen’s Association (ILA) has suspended negotiations with the United States Maritime Alliance (USMX) over a new labor contract, which has raised the risk of a strike at East Coast and Gulf Coast ports. The ILA claims that APM Terminals and Maersk, the world’s second-largest shipping company and APM Terminals’ parent company, have been using automated technology to process trucks at port terminals without union labor, in violation of the current ILA/USMX Master Contract. The ILA stated that it will not meet with USMX until the “auto gate” issue is resolved. The ILA is the largest longshoreman union in North America, representing 85,000 members, and its master contract with the USMX is set to expire on September 30, which poses potential risks to the port industry and international trade.

Here are 4 key bullet points from the article:

• The International Longshoremen’s Association has suspended talks planned for this week with the United States Maritime Alliance about a new labor contract for East Coast and Gulf Coast ports.
• The union claims that APM Terminals and Maersk have been using automated technology to process trucks at port terminals without union labor in violation of current agreements.
• A labor strike looms as negotiations continue, representing potential risks to the port industry and international trade.
• The International Longshoremen’s Association is the largest longshoreman union in North America, representing 85,000 members, and its master contract with the United States Maritime Alliance is set to expire on September 30.

Read the entire article here

UFLPA Enforcement Alert: Stay Proactive or Face Sudden Consequences

The head of the Forced Labor Enforcement Task Force, Robert Silvers, emphasized the importance of proactive measures in complying with the Uyghur Forced Labor Prevention Act (UFLPA). Silvers stated that companies that fail to take a proactive approach may face sudden enforcement, resulting in supply chain disruptions and potential business and reputation consequences. The article mentions a case involving Volkswagen, where a banned component was sourced from a third-tier supplier. Additionally, a white paper released by the Consumer Technology Association highlights the need for comprehensive supply chain mapping and awareness of the priority sectors in the UFLPA. Silvers also mentioned the expanding enforcement efforts beyond the current priority sectors, and the increasing use of AI-powered tools in combating forced labor.

Highlights:

• The head of the Forced Labor Enforcement Task Force warns that companies not proactive on UFLPA compliance may face sudden enforcement actions.
• Volkswagen's self-reporting of a component from a company on the Uyghur Forced Labor Prevention Act Entity List is highlighted as a positive example.
• The need for comprehensive supply chain mapping and awareness of priority sectors in the UFLPA is emphasized.
• The article mentions the increasing use of AI-powered tools and software in due diligence and compliance efforts.

Read the entire article here

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