The report raises human rights concerns for German firms that source Uzbek cotton
German businesses are said to be increasingly looking at Uzbekistan as a potential market, encouraged by the Ministry of Economic Cooperation and Development and the German textile industry.
A report with a title ‘Human Rights Activism: Assessing the Risks of German Companies in Uzbekistan’s Textile Sector’ examines how these companies are working hard to comply with supply chain regulations.
It investigates how companies meet their due diligence obligations and what changes are needed to ensure compliance with German and EU laws and acceptable standards of responsible business practices.
Uzbek Forum for Human Rights founder and director Umida Niyazova said: “Rights violations, including illegal land grabbing, state interference in cotton production contracts and mandatory production quotas, reveal the lack of protection for those involved in cotton production in Uzbekistan.” “
The report also warns other companies that supply cotton to many German companies about producers in Türkiye or elsewhere.
“Effective and thorough human rights due diligence is therefore key to protecting product integrity.”
Through the privatization of cotton production, Uzbekistan has introduced ‘cluster’ models that include cultivation, processing, and production. Yet issues such as binding contracts, limited land for farmers, and poor labor conditions seem to still be prevalent.
These include possible forced labor during harvest due to government quotas presented as ‘predictions,’ restrictions on unionization, land insecurity, government interference, and exploitation of farmers.
Businesses are expected to conduct risk-based due diligence to identify and mitigate human rights risks in their supply chains.
The author of the report, Ben Vanpeperstraete, said: “Companies’ public relations do not guarantee that they are adequately assessing or dealing with risks, especially when locating in Uzbekistan. Our research identified an overly broad approach to human rights due diligence, rather than a tailored approach that reflects the Uzbek context, which poses a significant risk to law enforcement.”
Key observations:
– Despite reforms in Uzbekistan that end government-enforced forced labor, residual risks persist.
– The potential for forced labor and other human rights violations in the Uzbek cotton industry remains high.
– Disclosure of the business shows the lack of recognition of forced labor or other rights abuses as risks when buying in Uzbekistan; there is also a lack of information about efforts to detect, prevent, address, and correct these issues.
