WASHINGTON – The United States today has banned the import of palm oil from FGV Holdings Bhd after allegations surfaced over the company’s use of forced labour in the production process.
Not a stranger to controversies, FGV Holdings has long been accused of terrible labour conditions by civil society groups.
The company, which the world’s largest crude palm oil producer, in a year-long investigation by the US Customs and Border Protection (CBP) that was said to reveal abuse of vulnerable workers, deception, physical and sexual violence, intimidation and threats, and retention of identity documents.
CBP also raised concerns over potential use of child labour in FGV’s palm oil production process.
In a statement, the US agency said the ban will come into effect immediately and includes FGV Holdings,.and its subsidiaries and joint ventures.
“The use of forced labour in the production of such a ubiquitous product allows companies to profit from the abuse of vulnerable workers,” said Brenda Smith, executive assistant commissioner of CBP’s trade office.
She added consumer goods company Procter & Gamble should take notice of the ban.
P&G has a joint venture with FGV.
“I can’t specifically comment on the joint venture with Procter & Gamble, but if Procter & Gamble is an importer, this withhold release order is something they should take seriously,” Smith said.
“CBP will continue to remind Americans that we can use our economic power to tell companies that we will not tolerate forced labour in US supply chains. We urge all consumers to research fair trade products and companies and shop directly with reputable retailers.”
The CBP will issue a “withhold release order” that allows the detainment of shipments based on suspicion of forced labour involvement.
It is issued under US laws aimed at combating human trafficking, child labour and other human rights abuses. – The Vibes, September 30, 2020
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