Stricter Labor Standards Poised to Reshape Global Supply Chains, Impacting Businesses Worldwide
The study focuses on how labor standards in global supply chains are becoming stricter, especially in relation to ESG issues. The IPEF agreement is introducing a new model for trade-labor linkage, with negotiations ongoing. The labor standards in the IPEF agreement are expected to include specific labor obligations, potentially impacting businesses in ASEAN countries. Monitoring mechanisms at the workplace level may become crucial for companies to comply with these standards. It is important to consider potential labor issues with the US and other IPEF member countries. Establishing legal and institutional frameworks to stabilize supply chains is essential for compliance with the IPEF labor standards.