Asia-Pacific forced labour: Due diligence laws outperform tariffs

The Inadequacy of Tariff-Based Interventions

The United States Court of International Trade is scheduled to review Washington's Section 301 tariffs concerning forced labour on 30 September. These tariffs have drawn criticism, with some observers suggesting their primary purpose is to secure trade leverage rather than to directly address the issue of forced labour itself.

Regardless of the court's verdict, the fundamental question remains: do existing forced labour standards within the Asia-Pacific region function effectively? Despite the presence of anti-human trafficking legislation, criminal codes, and labour laws prohibiting forced labour across the region, an estimated 15 million people continue to be subjected to such conditions.

Documented instances include practices within Thailand's fishing sector, production of rubber gloves and palm oil in Malaysia, and the garment industry in Bangladesh. This persistence shows that current regulatory frameworks may not be sufficient to eradicate the problem.

Limitations of Disclosure and the Call for Due Diligence

Many Asia-Pacific nations have enacted legislation to combat forced labour, including multilateral agreements such as the ASEAN Convention Against Trafficking in Persons, Especially Women and Children, signed by member states in November 2015. However, the effectiveness of disclosure-based regulatory models has shown limitations.

Australia's Modern Slavery Act, in force since 2019, mandated that companies report on modern slavery risks within their supply chains. This legislation, however, did not include financial or criminal penalties for submitting inadequate reports, a factor that hindered its impact.

Australia's Anti-Slavery Commissioner, in January 2026, released recommendations to strengthen these laws, advocating for a transition beyond mere disclosure towards a minimum due diligence obligation. This conclusion was reached independently, prior to the imposition of the US tariffs, underscoring a regional recognition of the need for more stringent measures.

Designing Effective Due Diligence Frameworks

To effectively address forced labour, a foundational step involves establishing a clear due diligence obligation for all entities operating within the Asia-Pacific. This obligation would require companies to report on and actively mitigate the risk of forced labour in their supply chains.

The scope of these due diligence requirements should extend beyond immediate, or Tier 1, suppliers to encompass at least second-tier subcontractors, with provisions for further expansion to additional tiers as operational and enforcement capacity develops. The European Union’s Forced Labour Regulation provides a potential model for such a framework.

Implementation strategies can vary, including binding national regulations where institutional structures permit, phased introductions in other contexts, or joint regional efforts through bodies like ASEAN where unilateral action is not practical or sufficient.

Verification, Technology, and Consequences

Moving beyond simple attestations to verifiable compliance is critical for effective due diligence. While auditors offer one method of verification, their efforts can be significantly augmented by remote auditing technologies. These technologies can identify high-risk regions, sectors, and products, providing coverage that in-person audits cannot match.

For example, satellite-based vessel monitoring can flag fishing vessels operating without required tracking, and such data can inform when and where unannounced physical audits should be conducted. Furthermore, poor performance in due diligence requires tangible consequences.

As Australia’s Commissioner observed, disclosure without penalties often results in polished reports that do not necessarily translate into improved conditions on the ground. The ability to enforce these obligations is paramount, particularly given the weak enforcement of many existing laws in parts of the Asia-Pacific.

Enforcement measures can be scaled, ranging from public disclosure of non-compliance and procurement blacklisting to financial penalties and, in severe cases, criminal charges.

Implications for Asia's Supply Chains and Policy Direction

Addressing the prevalence of forced labour in the Asia-Pacific fundamentally requires a policy shift towards verifiable due diligence and robust enforcement, rather than a primary reliance on trade tariffs. This necessitates the development of sector- and region-specific risk data, akin to the database mandated by Article 8 of the EU’s Forced Labour Regulation.

Such data can be compiled from existing information provided by organisations including the International Labour Organisation, Human Rights Watch, and Goodweave. For decision-makers, Asian companies, particularly those operating in high-risk sectors such as fishing, rubber, palm oil, and garments, face increasing scrutiny.

They must implement and verify stringent due diligence practices to maintain market access and protect brand reputation.

The efficacy of regional policy will be determined by the widespread adoption and enforcement of these verifiable standards, with initial assessments of strengthened national frameworks, such as Australia's, expected to offer insights into implementation success within the next 12 to 18 months.