Germany’s New “Supply Chain Law” Will Affect Turkey

Germany’s government partners agreed on a new “Supply Chain Law”. The aim of the law is to place large German companies that operate globally under greater responsibility in the future for human rights, child labor, natural resources and climate protection. The bill drafted by the CDU, CSU and SPD, which makes up the federal government, is likely to reach cabinet next month and be voted on in the Bundestag before the summer recess. The Supply Chain Law will come into effect gradually from January 1, 2023. The law is also recognized as a major paradigm shift in German history because it requires German companies to take responsibility for the entire supply chain .

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After the effective date, the law will bind more than 600 German companies with more than 3,000 employees. Starting in 2024, around 3,000 Alam companies with more than 1,000 employees will be responsible for those in the global supply chain. Furthermore, the bill makes these German companies liable for their direct suppliers. If companies find out that there are infractions in intermediate supplier companies, they are forced to clarify and take measures to eliminate them.

Although companies covered by the law do not allow child labor and forced labor at their suppliers, they are also required to pay fair wages and comply with labor and environmental protection standards defined by international conventions. If these are violated, the situation can be taken to the German judiciary.

The task of monitoring the reported violations of the suppliers of the German companies will fall to the Federal Office of Economic and Export Control. If this apartment is violated, it will impose financial penalties or fine those responsible. A German company found liable for the infringement could be banned from bidding for up to three years.

Turkey-Germany relations and new laws

The entry into force of the Supply Chain Law According to the Turkish news DW will also affect Turkey up to all supplying countries. Located in Turkey, Hugo Boss, Zara, C & A time when supplier companies such as child labor will become kkonu of the law have encountered problems.

According to data from the German Foreign Ministry, in 2019 the trade volume between Turkey and Germany fell 8.6% year-on-year to 33.4 billion euros. Russia and then China, Germany, most of Turkey’s imports from third countries. Germany motor vehicles in products exported to Turkey, automotive products, machinery and intensive chemicals. Germany exports products to Turkey in textiles and leather products, motor vehicles in the foreground, but also increases the share of food products and machinery.

Germany among the largest foreign investors in Turkey; It has invested approximately $ 15.5 billion since 1980. Operating in Turkey, the German or Turkish subsidiary of the German company, the figure is more than 7,500. Germany, patent applications made in Turkey as of 2017 with 2,044 applications from major US and Japan. Since 1985, the German economy has been represented by about a thousand members of the German-Turkish Chamber of Commerce and Industry in Turkey.

Source: DW Turkish / Abstract

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