Envoys Back Supply Chain Due Diligence Law-Belgian Presidency

The Belgian presidency of the Council of the European Union has confirmed that member state permanent representatives have approved the Corporate Sustainability Due Diligence and amending Directive (CSDDD). As highlighted earlier (see 0931GMT bullet 'EU: Envoys Seek To Pass Supply Chain Rules After Significant Watering-Down'), the notable changes made to the supply chain rules, which exempted nearly 70% of firms that initially would have been subject to the CSDDD, were deemed sufficient to avoid another rejection.

• The rules intend to see EU firms liable for human rights abuses or environmental degredation coming from their supply chains outside the Union.
• The CSDDD vote was not the only notable action on industry and trade by permanent representatives, with an earlier vote in favour of an effective ban on the use of plastics recycled outside the Union.
• Finbar Bermingham at SCMP posted on X: "EU deal reached on packaging rules that could seriously upend trade flows! Commission lobbied against a French amendment, which it argued was a de-facto import ban on plastics recycled outside the EU. But it has now supported its passage and member states have voted yes."
• The China Chamber of Commerce to the EU replied "This could be very concerning. The business community is worried about possible trade disruptions and cost increases. We call for urgent clarification, and the EU should refrain from erecting market barriers that hinder non-EU producers."