India has made a major change in its Foreign Trade Policy (FTP) 2023 and for the first time has added such a legal provision, under which the import of goods made with forced labor can be banned. This step is considered an important change in India’s trade policy. Its objective is to protect human rights, promote transparent supply chains and responsible trade at the global level.
DGFT got the right to investigate and take action
Under the new notification of the Directorate General of Foreign Trade (DGFT), para 2.20B has been added to the FTP. According to this, if there is evidence of use of forced labor completely or partially in the manufacturing of any product, then on the basis of investigation, the Central Government can notify that product and ban its import.
In this case, the responsibility of investigation will be of DGFT and the entire process will be completed as per the rules laid down in the Handbook of Procedures.
Clear definition of Forced Labor given for the first time
The official definition of Forced Labor has also been included for the first time in the new notification. In the new paragraph 11.64 of the FTP, quoting the Forced Labor Convention, 1930 (Convention No. 29) of the International Labor Organization (ILO), it has been said that work done to a person against his will, under threat, threat or pressure of any punishment, will be considered as forced labour. This change will provide a clear legal basis for identifying and investigating such cases in future.
No name of any country or company
No country, company or product has been named in the notification issued by the government. That means this rule has not been made to target any one country. In future, if forced labor is proved to be used in the manufacturing of any product coming from any country, then its import can be banned.
However, most of the discussion at the international level has been about some products made in the Xinjiang region of China. America, some experts of the United Nations and many human rights organizations have alleged that the Uyghur Muslim community and other minorities are used as forced labor there. China has been continuously rejecting these allegations.
America and Europe have already made strict rules
Many major economies of the world have already adopted a strict stance on products made from forced labour. America has implemented strict rules on the import of products related to Xinjiang by implementing the Uyghur Forced Labor Prevention Act (UFLPA). At the same time, the European Union (EU) has also prepared a new regulatory framework to keep such products out of its market. Many developed countries including Canada have also made strict rules regarding observance of human rights in the supply chain.
Why is this decision important for India?
India is taking this step at a time when it is trying to establish itself as a global manufacturing hub. Besides, work is also going on at a rapid pace on Free Trade Agreements (FTA) with Europe, Britain and other countries.
Today, in global business, not only cheap prices and better quality matter, but supply chain transparency, environmental, social and governance (ESG) standards and adherence to human rights have also become an important part of business.
Experts believe that this change is not just an amendment in the foreign trade policy, but it is a sign that India is also moving rapidly towards adopting the standards of Ethical Trade and Responsible Supply Chain in global trade.
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