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October 3, 2022

Week in review: Garment-making hotspots under fire over forced labour claims

While China remains front of mind for the US when it comes to tariffs over ongoing forced labour concerns in Xinjiang, the US Department of Labor (DOL) has published a list of other nations where labour welfare is a concern and it includes several garment-making hotspots.

By Laura Husband

Garment-making hotspots Bangladesh, Vietnam, Pakistan and Turkey are all on the latest DOL list over forced labour concerns. This is despite both Bangladesh and Pakistan currently being among the top 10 biggest suppliers of apparel and textiles to the US.

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The news will arguably be concerning for Bangladesh as it is working hard to prepare its readymade garment sector for growth ahead of its graduation from least developed country (LDC) status. It will continue to benefit from duty-free access to the European Union, Canada, and Japan until 2027. Notably this does not extend to the US so it will be vital for the nation to keep all relations positive and strong. 

In saying this, China remains the largest apparel supplier to the US despite forced labour tariffs and ongoing allegations of forced labour in the Xinjiang region. It does benefit from being widely regarded as an efficient and cost-effective option when it comes to apparel sourcing. 

The president and CEO of the National Council of Textile Organizations, Kim Glas applauded the recent decision to keep the US’ forced labour tariffs against China in place, saying they only serve to benefit the US garment industry. 

She told Just Style last week more US companies are either moving production back home by reshoring operations or shifting production closer to home through nearshoring and US garment manufacturing is clearly on the rebound. 

Some of the countries listed on the DOL list as having forced labour issues do benefit from being good nearshoring options for the US such as Mexico, Brazil and Argentina. 

Will any or all of the countries cited in the DOL list influence US apparel executives’ future decisions to source from those regions? Only time will tell. 

Key garment-making hubs named on US forced, child labour list

Garment and textiles made in Bangladesh and Ghana have been identified on the US Department of Labor (DOL) of products made using forced and child labour.

Bangladesh’s RMG industry preparing for next phase of growth

Bangladesh’s readymade garment sector is preparing for its next phase of growth as it looks to contribute to the country’s economic development.

China tariffs are working in nearshoring manufacturing

China tariffs have significantly contributed to the new ‘bringing it home’ trend in US fashion manufacturing, writes Kim Glas, president and CEO of the National Council of Textile Organizations.

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Thematic Research- ESG – Governance Factors

Governance is central to GlobalData’s ESG framework, developed to help companies understand and address their responsibilities across three main areas: environmental, social, and governance (ESG). Organizing the topic into these three key areas makes it easier for companies to assess where they stand. The framework goes deeper and defines four key areas within each topic. Within corporate governance, these are corporate structure, risk management, corruption, and bribery and ethics. Then, within each area, the framework identifies several contributing factors and mitigating actions to help companies identify where progress is needed and create action plans. Good corporate governance has never been more important. It has come to the fore as directors and executives recognize that they are responsible not just to shareholders, as in the past, but to a wide range of stakeholders. GlobalData’s report on ESG - Governance Factors, taken from the collection of >17,000 reports on GlobalData Explorer, will help you to:    
  • Assess companies based on GlobalData’s detailed ESG framework on governance
  • Identify relevant issues pertaining to governance using our framework
  • Explore reasons why governance is an important ESG issue
  • Identify factors which help to improve corporate governance in a company
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
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