Forced labour laws are becoming a source of geopolitical risk across global supply chains, according to a new report from Verisk Maplecroft. It says the risks are likely being underestimated and should be prioritised by sourcing teams, as enforcement of forced labour legislation through targeted trade policies is increasingly being used as a geopolitical tool.

Measures including the US Uyghur Forced Labor Prevention Act, Canada's forced labour prohibition and the forthcoming EU Forced Labour Regulation are giving authorities greater powers to detain shipments where forced labour concerns are identified.

“The blind spot for many companies is that enforcement risk does not map cleanly to supplier-level labour risk,” said James Allan, head of corporate risk and sustainability at Verisk Maplecroft. “Even businesses with limited direct exposure can face sudden disruption if regulators target a product, a country or an upstream link in the supply chain.”

The company's Forced Labour Index indicates that substantial volumes of imports entering both the US and the EU originate from countries with high or very high forced labour risks. However, it argues that businesses must now also factor geopolitical tensions into their assessments because these increasingly influence where enforcement action is taken.


See the next issue of CIR Magazine for more on this report.

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