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EU’s new supply chain law will make improve Bangladesh’s labor law

BTJ Desk Report
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EU’s new supply chain law will make improve Bangladesh’s labor law

The European Parliament recently passed the Corporate Sustainability Due Diligence Directive (CSDDD), aiming to establish sustainability standards for businesses within the EU and globally. This directive, expected to gain final approval from EU member states soon, holds both suppliers and importers accountable for compliance with environmental and labor standards. The law is particularly significant for Bangladesh, as over 64 percent of its garment exports go to the EU.

The law, scheduled to be gradually implemented by 2030, could lead to substantial changes in production practices, compliance, and responsible business conduct. Notably, importers will now share responsibility for ensuring compliance within the supply chain, marking a departure from previous practices where only manufacturers were held liable.

Bangladesh, while excelling in certain areas like green factories, still needs to make improvements to meet CSDDD standards. This includes ratifying UN conventions on human rights, labor rights, good governance, and environmental protection. Additionally, the country faces challenges such as reducing carbon emissions and ensuring decent working conditions and living wages for workers. While Bangladesh has ratified core ILO conventions, implementation remains a concern, especially regarding aspects like collective bargaining and living wages, which are central to the new law.

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