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EU Member States Give New Supply Chain Law Final Approval

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Ministers for the European Union’s member states on Friday gave their final approval to a much fought-over law requiring companies to protect human rights in their supply chains.

The Directive on Corporate Sustainability Due Diligence – also known as the European Supply Chain Act, is intended to hold large companies accountable if they profit from child or forced labour outside the EU.


No member states voted against the law, but 10 abstained, including Germany. Getting the law over the line took considerable diplomatic effort.

It was particularly controversial within Germany’s coalition government, where the liberal Free Democratic Party feared overburdening businesses.

An initial deal with the European Parliament, brokered last year by Spain, failed to get enough support from member states.

The new deal approved on Friday, negotiated by Belgium, raises the threshold at which companies will fall under the new rules.

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