Easing of the Supply Chain Act - A Breath of Fresh Air for Businesses - Easing of the supply chain law brings welcome respite to businesses
The German government has faced criticism from various quarters over its recent decision to amend the Supply Chain Act, with the Confederation of German Employers' Associations, human rights expert Armin Paasch from Misereor, the Greens, and others expressing concerns.
The amendment, which aims to reduce bureaucracy, relaxes reporting requirements, including those on compliance with human rights standards in supply chains. Critics argue that this move is a violation of international law, a regression in human rights protection in the economy, and a weakening of existing supply chain rules.
The Supply Chain Act, effective since 2023, ensures certain labor and environmental standards for products manufactured abroad for the German market. However, violations of due diligence will only be penalized in severe cases, according to a draft bill for the Supply Chain Act passed by the federal cabinet in Berlin.
Labor Minister Bärbel Bas (SPD), who is supporting the amendment of the Supply Chain Act in the Bundestag, stated that by removing the reporting requirement under the Supply Chain Due Diligence Act, they are implementing the coalition agreement to further relieve companies.
The national Supply Chain Due Diligence Act will continue to apply until it is replaced by a law implementing the European supply chain directive. The EU is currently negotiating changes regarding the implementation of the European supply chain directive.
Minister Bas also emphasized that the government will not relent in its fight against child and forced labor, and the protection against exploitation at work.
Despite the government's claims of reducing bureaucracy, the Supply Chain Act continues to face criticism. The Greens remain critical of the black-red coalition's approach to supply chain rules, arguing that the amendment is a step backwards in terms of human rights protection.
The draft bill aims to avoid "duplicative reporting requirements" created by EU and German legislation. Companies are no longer required to submit as many reports, providing some relief for businesses.
However, the controversy surrounding the amendment to the Supply Chain Act persists, with many questioning the impact on human rights protection and international law compliance. The debate continues as the EU finalizes its negotiations on the European supply chain directive.
