Australia urged to keep pace as the EU, UK and Canada crack down on modern slavery

A wave of new modern slavery measures across the European Union, United Kingdom and Canada has highlighted Australia’s much-debated shortcomings, with global governments moving beyond supply chain transparency to implement tougher enforcement, import controls and stronger due diligence.

Many of the developments have gathered pace since last week, with the UK strengthening enforcement of its Modern Slavery Act by introducing significant financial penalties for non-compliance with reporting requirements.

It has also signalled support for broader reforms, including mandatory human rights due diligence and a forced labour import ban.

Trade Minister Sir Chris Bryant MP told a UK Parliament Business and Trade Committee hearing he would be “absolutely amazed and demoralised and upset” if the UK had not introduced “some kind of forced labour ban” by the end of the current Parliament.

The European Commission has also released implementation guidance and business support tools for its landmark Forced Labour Regulation.

This will stop products made with forced labour from being sold in or exported from the EU, starting from 14 December 2027.

The new guidance is designed to help businesses prepare well ahead of the regulation’s effective date, with organisations expected to strengthen supply chain traceability and risk management now.

This follows Canada’s recent update, in which the Government of Canada introduced legislation to strengthen its existing framework, which prevents goods made with forced labour from entering the Canadian market.

On our own shores, Australia’s Anti-Slavery Commissioner, Chris Evans, has warned Australia risks losing ground unless it modernises its own framework.

“Around the world, we are seeing clear momentum towards stronger action on forced labour,” he said.

“The United Kingdom, the European Union and Canada are all strengthening their legal frameworks, increasing enforcement and raising expectations on businesses operating in global supply chains.

“These are not isolated developments. They reflect a growing international consensus that goods produced through forced labour should have no place in our economies.”

Australia’s Modern Slavery Act, introduced in 2018, was regarded as one of the world’s leading transparency regimes at the time.

However, unlike the European Union and several other jurisdictions, Australia does not currently prohibit imports made with forced labour or require companies to undertake mandatory human rights due diligence.

“When Australia’s Modern Slavery Act was introduced, we were regarded as an international leader,” said Evans.

“Today, many comparable jurisdictions are moving beyond transparency requirements and introducing stronger enforcement mechanisms, due diligence obligations and import controls.

“As our major trading partners continue to strengthen their responses, Australia risks falling behind and becoming a destination market for goods made with forced labour that are facing restrictions elsewhere.”

Evans has consistently argued that Australia’s laws should evolve to reflect changing international standards, earlier this year releasing recommendations calling for mandatory due diligence obligations, a forced labour import ban, stronger enforcement powers and a risk-based declaration system for high-risk products and industries.

This has been backed by the United Nations Committee on Economic, Social and Cultural Rights, which, in its concluding observations on Australia, recommended the Modern Slavery Act be reformed to introduce mandatory human rights due diligence and urged the Federal Government to take action within 24 months.

The issue has also taken on greater trade significance recently, with the United States criticising Australia and other trading partners for not doing enough to prevent the entry of goods linked to forced labour and proposing new tariffs of 12.5 percent.

US Trade Representative Jamieson Greer said the failure of America’s trading partners to address the importation of goods made with forced labour was “unacceptable,” with his office’s report separately finding Australia’s specific failure to impose and effectively enforce a forced labour import ban “unreasonable”.

This has led experts to warn that Australia risks becoming a “dumping ground” for goods rejected by other countries if a forced labour ban is not implemented soon.

Evans said aligning Australia’s approach with key trading partners would benefit both vulnerable workers and Australian businesses.

“The direction of travel internationally is clear. Leading democracies are recognising that transparency alone is not enough and are adopting stronger legal and regulatory tools to address forced labour in global supply chains. Australia should be part of that movement.

“This is not simply a human rights issue. Strengthening Australia’s framework would also help Australian businesses remain competitive, retain access to international markets and meet evolving regulatory and stakeholder expectations.”

Evans is travelling to the United Kingdom this week to meet with government, business and civil society leaders as international reforms continue to gather momentum, using the visit to examine emerging best practice and reinforce the case for stronger action in Australia.

“Every worker deserves freedom, dignity and fair treatment,” he concluded.

“The momentum we are seeing across the UK, Europe and Canada should encourage Australia to take the next step in ensuring Australian consumers and businesses are not connected to exploitation.”