U.S. ban on cotton from forced Uyghur labor goes into effect
The fashion industry has been told it must wean itself off cotton from China's Xinjiang region, as a new law comes into effect giving US border officials more powers to freeze or seize goods related to forced labor in China.
The Uyghur Forced Labor Prevention Law (UFLPA), which comes into effect today, assumes that any product partially or entirely made in Xinjiang, northwest China, is tied up in the region's labor camps. Since 2017, Chinese authorities have detained up to one million Uyghurs and subjected them to forced labor.
The fashion industry will be particularly affected by the new law . About 20% of the world's cotton comes from China and 84% from Xinjiang.
UFLPA has designated cotton as a "high priority for enforcement", along with tomatoes and polysilicon. Any UK or European fashion brand exporting to the US will also be subject to it, and failure to provide adequate certification or supply chain details can result in fines of up to $250,000 (205,000 £).
However, the ban poses big problems for the industry. Fashion Revolution's Liv Simpliciano said Xinjiang cotton is ubiquitous in supply chains. "The difficulty is that at the ginning stage [when the fibers are separated from their seeds], cotton from disparate places is mixed together, making it impossible to trace provenance," she said. .
A number of tech companies, including TrusTrace, SupplyShift, and TextileGenesis, plan to use blockchain and artificial intelligence to trace brand supply chains of fashion. Brands can use the platforms to register all their purchase orders and certifications.
In order to conclusively prove the absence of Xinjiang cotton, brands should show a " complete digital chain of custody," said Shameek Ghosh, Managing Director of TrusTrace - "where a brand is in full control of its supply chain from the farm".
While the fashion has always been notoriously suspicious of its supply chains, there is now a strong business case for full transparency. A recent report by financial think tank Planet Tracker said implementing traceability “can improve bottom line profit by an average of 3% to 7% for apparel companies.” And that's before any fashion stock is confiscated by border forces.
Due to General Data Protection Regulations, TrusTrace is not alerted if Xinjiang cotton is found in a brand's supply chain. "Only the brand is informed," Ghosh said. "They wouldn't use a platform like this [if they were exposed]."
Blockchain technology is not without its problems, however. "If you're relying on brand discretion to ratify its sourcing practices, then how effective will that be?" asked Philippa Grogan of Eco-Age. “Furthermore, blockchain technology is unregulated, so it creates a risky environment – the lack of regulatory oversight makes it vulnerable to market manipulation.”
The fashion industry has been told it must wean itself off cotton from China's Xinjiang region, as a new law comes into effect giving US border officials more powers to freeze or seize goods related to forced labor in China.
The Uyghur Forced Labor Prevention Law (UFLPA), which comes into effect today, assumes that any product partially or entirely made in Xinjiang, northwest China, is tied up in the region's labor camps. Since 2017, Chinese authorities have detained up to one million Uyghurs and subjected them to forced labor.
The fashion industry will be particularly affected by the new law . About 20% of the world's cotton comes from China and 84% from Xinjiang.
UFLPA has designated cotton as a "high priority for enforcement", along with tomatoes and polysilicon. Any UK or European fashion brand exporting to the US will also be subject to it, and failure to provide adequate certification or supply chain details can result in fines of up to $250,000 (205,000 £).
However, the ban poses big problems for the industry. Fashion Revolution's Liv Simpliciano said Xinjiang cotton is ubiquitous in supply chains. "The difficulty is that at the ginning stage [when the fibers are separated from their seeds], cotton from disparate places is mixed together, making it impossible to trace provenance," she said. .
A number of tech companies, including TrusTrace, SupplyShift, and TextileGenesis, plan to use blockchain and artificial intelligence to trace brand supply chains of fashion. Brands can use the platforms to register all their purchase orders and certifications.
In order to conclusively prove the absence of Xinjiang cotton, brands should show a " complete digital chain of custody," said Shameek Ghosh, Managing Director of TrusTrace - "where a brand is in full control of its supply chain from the farm".
While the fashion has always been notoriously suspicious of its supply chains, there is now a strong business case for full transparency. A recent report by financial think tank Planet Tracker said implementing traceability “can improve bottom line profit by an average of 3% to 7% for apparel companies.” And that's before any fashion stock is confiscated by border forces.
Due to General Data Protection Regulations, TrusTrace is not alerted if Xinjiang cotton is found in a brand's supply chain. "Only the brand is informed," Ghosh said. "They wouldn't use a platform like this [if they were exposed]."
Blockchain technology is not without its problems, however. "If you're relying on brand discretion to ratify its sourcing practices, then how effective will that be?" asked Philippa Grogan of Eco-Age. “Furthermore, blockchain technology is unregulated, so it creates a risky environment – the lack of regulatory oversight makes it vulnerable to market manipulation.”
What's Your Reaction?
