US, EU Issue Guidance On Expectations For Due Diligence To Address Forced Labor Risks

On July 13, 2021, the US Department of State, US Department of the Treasury, US Department of Commerce, US Department of Homeland Security, Office of the United States Trade Representative, and US Department of Labor issued an updated advisory (the "US Xinjiang Supply Chain Advisory") to alert businesses to risks and considerations associated with forced labor and human rights abuses linked to the Xinjiang region of China. In tandem with the US guidance, the European Commission and the European External Action Service issued their own guidance (the "EU Due Diligence Guidance") setting out a framework for what constitutes effective due diligence measures to address the risk of forced labor in an organization's supply chain. Together, the documents underscore the importance that entities ensure that they have in place procedures to identify and address risks related to forced labor in their operations and their supply chains.