US, Mexico and Argentina sign G20 statement against forced labour in supply chains

The trade ministers of the United States, Mexico and Argentina have signed a joint statement on eliminating forced labour from global supply chains, the Office of the US Trade Representative (USTR) announced on 2 October. The statement was agreed at the G20 Trade Ministerial meeting in Milwaukee.

US Trade Representative Jamieson Greer welcomed the move and praised his Mexican and Argentine counterparts for "recognizing the continued existence of forced labor as an abhorrent human rights issue that distorts global supply chains," according to the USTR release. He called on other countries to step up joint efforts against the practice.

According to a summary of the statement published by Fibre2Fashion, the three ministers argue that goods made with forced labour give producers an artificial price advantage and create unfair competition for manufacturers, exporters and buyers that follow ethical practices. The statement cites International Labour Organization estimates that around 28 million people were in forced labour in 2021, some 2.7 million more than five years earlier.

The ministers encouraged members of the World Trade Organization to:

• exchange risk information on imports and supply chains considered at risk of forced labour;
• share details of how they implement and enforce measures against forced labour;
• cooperate on import prohibitions and market bans for such goods.

The statement puts Mexico, a neighbour and close trading partner of the United States, alongside Washington in calling for coordinated action on forced-labour goods.

What it means for Egyptian exporters

Garments and textiles are among the product groups most exposed to forced-labour checks, because cotton and other inputs can be hard to trace. Closer cooperation between the United States and its trading partners on risk information and import bans points to more scrutiny of supply chains for everything sold into the American market. Egyptian exporters that can document where their cotton, yarn and fabric come from will be better placed to pass buyer audits and customs checks, and can present that traceability as a selling point to US and European brands.