The Uyghur Forced Labor Prevention Act (UFLPA), in force today, presupposes that any product made in whole or in part in Xinjiang, in northwest China, is linked to labor camps in the area. . Since 2017, Chinese authorities have arrested up to one million Uighurs and forced them to work. The fashion industry will be particularly affected by the new law. About 20% of the world’s cotton comes from China and 84% of it comes from Xinjiang. UFLPA has designated cotton a “high priority for enforcement”, along with tomatoes and polysilicon. Any British or European fashion brand exporting to the US will also be subject to it and failure to provide adequate certification or supply chain information could result in fines of up to $ 250,000 (20 205,000). However, the ban poses major problems for the industry. Fashion Revolution Liv Simpliciano said that Xinjiang cotton is ubiquitous in supply chains. “The difficulty is that at the stage of ginning [when fibres are separated from their seeds]”Cotton from different locations is mixed together, making it impossible to trace the origin,” he said. Some tech companies, including TrusTrace, SupplyShift and TextileGenesis, plan to use blockchain and artificial intelligence to track supply chains for fashion labels. Brands can use the platforms to record all their orders and purchase certifications. In order to conclusively prove the absence of Xinjiang cotton, the brands must display a “complete digital security chain,” said Shameek Ghosh, CEO of TrusTrace – “where a brand has full control of its post-farm supply chain and. “. Subscribe to the daily Business Today email or follow the Guardian Business on Twitter at @BusinessDesk While fashion has historically been notoriously trapped in its supply chains, there is now a strong business case for full transparency. A recent report by financial thinktank Planet Tracker stated that the application of traceability “can improve net profits by an average of 3% -7% for clothing companies”. And this before any fashion stock is confiscated by the border forces. Due to the General Data Protection Regulation, TrusTrace is not notified if Xinjiang cotton is found in a brand’s supply chain. “Only the name is up to date,” Ghosh said. “They would not use a platform like this [if they’d be exposed]. » However, Blockchain technology is not without its problems. “If you rely on the brand’s discretion to validate their procurement practices, then what will be the effectiveness?” asked Philippa Grogan of Eco-Age. “Also, blockchain technology is out of control, so it creates a risky environment – the lack of regulatory oversight makes it vulnerable to market manipulation.”
