IN BRIEF
- Experts say Australia’s modern slavery laws focus on disclosure, not forcing companies to act.
- Despite tougher trade restrictions, the US still faces modern slavery and forced labour risks.
President Donald Trump of the United States has issued a warning about potential tariffs targeting numerous global economies, including Australia, which might seem like a politically strategic move.
However, analysts believe this forced-labour controversy raises a significant domestic issue: Is Australia adequately preventing the infiltration of goods associated with exploitation into its supply chains?
Australia was one of several economies called out by the Trump administration following a probe into import practices. US trade representative Jamieson Greer criticized Australia for not effectively banning the importation of goods produced through forced labour.
The report that compiled these findings did not include specific instances regarding Australia.
This development is part of the US’s broader initiative to strengthen trade regulations related to forced labour, including the enforcement of the Uyghur Forced Labour Prevention Act, which was enacted in 2021.
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A broader challenge
Despite introducing stronger import restrictions targeting forced labour, research from the University of Oxford estimates that around 1.1 million people were living in modern slavery conditions in the US in 2021.
University of Sydney associate professor Martijn Boersma said the tariff threat was “completely opportunistic” but reflected existing policy discussions in Australia.
Australia’s Modern Slavery Act requires businesses to report modern slavery risks but does not require action or impose penalties for inadequate reporting.
A government-commissioned review of the Modern Slavery Act, informed by public consultation in 2022, delivered recommendations in 2023 to strengthen Australia’s response. The federal government responded in December 2024, supporting most recommendations while continuing consultation on some reforms.
Boersma said there had been growing political debate over whether Australia should move further.
“One of the things that has been debated in Canberra for a while now is whether we need import bans, basically blocking goods suspected of having been created by means of forced labour.
“Canberra has not gone that far yet and neither have they imposed mandatory human rights due diligence,” he said.
“You’re compliant if you report on your risks, and that’s where the whole thing stops.”
Australia rejects tariff criticism
Prime Minister Anthony Albanese has defended Australia’s existing approach, saying the country already had world-leading laws addressing modern slavery and forced labour that had received unanimous parliamentary support.
He also said any tariff imposed on Australian exports would be unjustified and inconsistent with the free trade agreement between Australia and the US.
“We continue to use every opportunity that we have to advocate that US tariffs imposed on Australia are unwarranted,” Albanese told the ABC on Thursday.
Opposition leader Angus Taylor also criticised the proposal, saying Australia should not face tariffs from one of its closest allies and that the Coalition would continue opposing the measures.
What does ‘forced labour’ refer to?
Experts say forced labour does not necessarily resemble historical depictions of slavery and can involve a range of coercive labour conditions.
Boersma said it often involved workers being unable to leave harmful working environments because of threats, debt, withheld documents or other forms of pressure.
“It’s not like the traditional form of slavery where people are shackled … It’s more that people have no other avenue to go down, so they simply have to accept whatever horrible working conditions they find themselves in.”
Do forced labour import bans work?
Research published last year by the University of Oxford found some evidence that import bans prevented goods linked to forced labour from entering markets and influenced business behaviour. But evidence remained limited and mixed, with little indication bans alone prevent forced labour.
Human Rights Law Centre associate legal director Freya Dinshaw said concerns around forced labour in Australian supply chains pre-dated the tariff proposal.
“Buying goods should never come at the expense of someone else’s freedom,” she said.
“The alarm bells have been ringing for a long time in relation to the risk of goods made with forced labour flooding Australian shop shelves.
“If the US is looking to penalise countries who have not taken sufficient steps to prevent forced labour in global supply chains, then Australia is indeed vulnerable.”
Could the tariff threat accelerate reform in Australia?
NSW Anti-slavery Commissioner James Cockayne said in a statement that the tariff proposal reflected growing international pressure.
“The concern raised is that producers in Australia and around 60 other countries have an unfair advantage over US competitors because they are able to rely on modern slavery to keep their costs down,” he said.
Cockayne called on the federal government to strengthen Australia’s modern slavery laws, including through mandatory due diligence requirements.
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