Lawmakers in the European Parliament and Council announced that they have reached a provisional agreement on new rules banning products made with forced labor from being sold on the EU market, or exported.

The agreement follows an initial proposal by the European Commission in September 2022 aimed at addressing modern slavery, directing customs authorities to identify and stop products made with forced labor from entering EU borders, and empowering member states’ national authorities to remove products made with forced labor, following an investigation. The proposed regulation covered all products, including those made in the EU for domestic consumption and export, and imported goods.

According the Commission, the proposed regulation was launched to address the estimated 27.6 million people in forced labor globally, across multiple industries and regions.

The agreement between Council and Parliament includes a series of modifications from the Commission’s initial proposal, including setting criteria for determining which authority will lead investigations, with the Commission responsible for investigations if third party countries are involved, and member states’ competent authorities leading in cases in which the risks are in the member states’ territory. Based on the principle of mutual recognition, decisions made by a national authority will apply across all member states.

Under the new regulation, goods that are determined to have been made using forced labor can be ordered removed by the authorities, to be either donated, recycled, or destroyed. Firms that do not comply with the regulation can be fined, while the regulation would allow products back on the market if the company eliminates forced labor from its supply chain.

The agreement also calls on the Commission to create a list of specific economic sectors regions in which state-imposed forced labor exists, and to establish a database with regularly updated information about forced labor risks, supporting the authorities’ assessments of possible violations of the regulation.

Following the agreement, Pierre-Yves Dermagne, Belgian Deputy Prime Minister and Minister for the Economy and Employment, said:

“It is appalling that in the 21st century slavery and forced labour still exist in the world. This hideous crime must be eradicated and the first step to achieve this consists in breaking the business model of companies that exploit workers. With this regulation we want to make sure that there is no place for their products on our single market, whether they are manufactured in Europe or abroad.”

With the provisional agreement in place, the new regulation will be sent for formal approval by the European Parliament and the Council, and will apply 24 months after entering into force.