(The original article in Japanese was posted on July 1, 2022)

The United States started implementing the "Import ban based on the Uyghur Forced Labor Prevention Act." With the enforcement of the law, as of June 21, all products produced in the Xinjiang Uyghur Autonomous Region in China are presumed to be involved in forced labor and prohibited from importation into the United States. Besides, any products made with raw materials or parts produced in the region will be subject to the import ban, including those shipped via third countries. Also, a list of high-priority sectors is identified for enforcement. Specific commodities designated are apparel products, cotton/cotton products, silica-based products including polysilicon, and tomatoes/tomato products.

As usual, exceptions to the presumption are allowed. Importers of such detained goods need to provide “clear and convincing evidence to prove no connection to forced labor.” However, first of all, it is impossible for private businesses to collect authentic evidence in China to satisfy the U.S. authorities as long as China “consistently and definitely refutes the existence of any forced labor.” In fact, a protest filed by Fast Retailing Co., Ltd. to the blockage of some of UNIQLO brand products was rejected in 2021 due to the company’s “failure to prove that the goods are free of forced labor.” Although quite a few ambiguous points can be found to implement operational procedures in future, it is highly unlikely that standards for certification will be less strict than before. Resultingly, relevant companies will be forced to change their marketing strategies toward the U.S., by enhancing traceability and restructuring the entire system of supply chains.

An approach to encouraging individual companies to disclose the status of their commitment to human rights has been taken mainly in Europe and the United States. On the other hand, Japan, considered "slow" in taking action in human rights issues, is now working on establishing the first guidelines for the prevention of corporate human rights violations with the aim of publicizing the details this summer. The guidelines are based on a "Draft Plan for the Guidelines for Respecting Human Rights in Supply Chains” released this past April by the study group from the Ministry of Economy, Trade and Industry (METI). The scope of targeted human rights is indicated, which includes freedom from being subject to forced labor or child labor, freedom of movement and residence, freedom of association, and rights to collective bargaining. It is intended to identify human rights violations and facilitate the action to improve human-rights conditions in the entire supply chains.

It should be noted that the individual right conditions worldwide are growing increasingly unstable while social distortions derived from the aggressive globalization movement intensify the inclination towards authoritarian regimes. It is not a particular concern for developing countries, but even under democratic regimes, social atmosphere calling for anti-intellectualism and authoritarianism has gradually prevailed more than ever. Besides, geopolitical conflicts make the situation more serious. Diversified "justice," "circumstances," and "interests" shown from every different standpoint create conflicts in a complicated manner, and accordingly the gap in human rights in the context of definition, scope, and importance, is widening more significantly. If that is the reality, or I dare say that is why individual companies should clearly express their corporate philosophy and values internally and externally and develop business activities in accordance with their own code of conduct. In short, that is the bottom line we should always keep in mind.

This Week’s Focus, July 1

Takashi Mizukoshi, the President