Harnessing UK trade and investment to address Indo-Pacific modern slavery risks

Lead Research Organisation: University of Nottingham
Department Name: Sch of Law

Abstract

Can the UK's trade and investment arrangements in the Indo-Pacific help reduce modern slavery risks? Given the Indo-Pacific is the region with the highest rates of modern, how can UK businesses and investors avoid exposure to modern slavery when they trade with and invest in the region?

Our project seeks to develop answers to these questions, and use them to help the policy actors in the UK and the Indo-Pacific that are developing new trade and investment arrangements.

To do this, we need to understand when foreign trade and investment increases the risks of forced labour and modern slavery, and when and how foreign trade and investment arrangements can be used to reduce those risks. We need to consider which legal and policy arrangements - such as bans on trade in goods made with forced labour, labor clauses in trade deals, or investor arbitration mechanisms - protect people and businesses against modern slavery risks, and which make it more likely. And we need to consider what role survivors, vulnerable populations and other people affected by modern slavery play in shaping trade and investment arrangements to prevent modern slavery.

We will do this through four different areas of work.

First, we will organize the first major global conference on these issues, online over 2 days in October 2022. This will bring together researchers, government practitioners, business and civil society to share new scholarship and develop new policy thinking. We will include representatives from affected communities, including survivors of modern slavery and affected Indo-Pacific communities. This conference will lay the groundwork for future exchange of knowledge and policy research collaborations, through a network of scholars and practitioners who will keep working on these issues after the project is complete.

Second, we will build new data sets to help us understand how different trade and investment arrangements shape modern slavery risks and outcomes in the Indo-Pacific. One dataset will include international trade and investment agreements from across the Indo-Pacific, recording how those agreements handle modern slavery related issues. Another dataset will focus on the domestic laws and policies relating to trade and investment of countries in the Indo-Pacific. And third, we will update and develop a dataset recording government and company responses to allegations of large-scale forced labour in China's Xinjiang province. We will use each of these datasets to conduct original research into the questions we posed earlier.

Third, we will conduct four in-depth case studies on China, India, Malaysia and Thailand. Working with our project partners Anti-Slavery International and the University of Nottingham Malaysia, the project research team will study how issues relating to modern slavery risks have been addressed when trade and investment arrangements have been developed and implemented. This will include direct, careful and safe engagement with stakeholders from each of these countries, including people vulnerable to modern slavery, to understand how these issues have been perceived and managed.

Fourth, we will use the data and evidence developed in the previous work to produce policy findings and recommendations. Working closely with Anti-Slavery International and the Modern Slavery Policy and Evidence Centre, we will share these policy findings with policymakers, business leaders, civil society and researchers in the UK, in the Indo-Pacific, and in relevant international forums such as the United Nations and World Economic Forum.

Publications

10 25 50
 
Description Preliminary findings reveal that while free trade and international investment agreements can be effective tools for achieving policy alignment, this is not always the case. This project set out to assess the efficacy of UK trade and and investment agreements with Indo-Pacific States in the reduction of modern slavery risks. We expected that given the UK's position on forced labour, including a relatively robust Modern Slavery Act, trade and investment relations would be leveraged to address the risks of modern slavery in partner countries. This has been found to be true in some, but not all cases. For example, trade the UK-Australia Free Trade Agreement contains a dedicated chapter on labour rights, explicitly providing for the prevention of modern slavery in Article 21.7. This is representative of the two countries' alignment on the prevention of modern slavery.

On the other hand, we have found that all agreements with China, including with Australia and a cooperation framework with the UK, do not provide for the prevention of modern slavery. A preliminary explanation is that where trade with a partner is or is likely to be significant, then an agreement on the 'core' trade and investment matters is likely, even if the 'trade and -' (e.g. trade and environment, trade and sustainable development, etc.) are not agreed. This might be an indication that trade and investment relations on their own are not necessarily an appropriate tool to leverage in the prevention of modern slavery. However, caution must be advised in taking that as a conclusion, as this project is limited to only a handful of countries. It seems prudent, instead, to pay closer attention to the internal similarities of the parties to trade agreements, as the UK-Australia FTA demonstrates.
Exploitation Route We appreciate the need for further and wider research on the effectiveness of trade and investment agreements in addressing modern slavery risks. While this project has been useful as a 'pilot' study, more research needs to be undertaken in different contexts and regions, and with respect to the conduct and practice of countries and regions similar to the UK in their approach to modern slavery provisions in trade and investment agreements.
Sectors Agriculture, Food and Drink,Communities and Social Services/Policy,Government, Democracy and Justice,Manufacturing, including Industrial Biotechology,Retail,Security and Diplomacy,Other

 
Title Country Case Studies 
Description In order to assess the relationships between external trade and investment policy on the one hand and incidence of modern slavery on the other, we studied the conduct of China, India, Malaysia and Thailand. For each of these, we were guided by two main research questions: 1. What role do trade and investment agreements in the Indo-Pacific play in shaping modern slavery risks for people and businesses in the UK? 2. What policy recommendations can we draw from the UK's engagement with major trading partners from the Indo-Pacific? What does this tell us about trade and investment policy more broadly? In answering these, we assessed the nature of trade and investment relations between each country and the UK, and between each country and other States in the Indo-Pacific region. This involved a look at the nature of trade (types, predominant sectors/goods, trade volumes, etc.), and the priority areas for trade and investment liberalisation. For each case study, we attempted to draw relationships between these interests (e.g. goods/sectors with high trade volumes) and the nature of trade and investment agreements pursued (e.g. liberalising or restricting trade and investment in those goods/sectors). We then checked these against existing data on the incidence of modern slavery practices in the respective sectors for each case-study country - where such data is available. The final step in this analysis will be to cross-check with the results of the coding, in order to establish whether the case-study countries (China, India, Malaysia and Thailand) are party to trade and investment agreements that provide for the prevention of modern slavery practices, and whether this has translated into any change of domestic legislation or policy. One outstanding preliminary finding in this regard is that in the treaties reviewed, China, which historically has a high incidence of modern slavery practices, is not party to any trade or investment agreements that provide for the prevention of modern slavery practices. This project aims to study whether this is an indication of the determinants of influence and 'soft-power' in the negotiation of trade and investment agreements. 
Type Of Material Data analysis technique 
Year Produced 2023 
Provided To Others? No  
Impact N/A, as it has not been made available to the public yet. 
 
Title Trade and Investment Agreement Coding 
Description In order to establish relationships between trade, investment, and modern slavery, we coded trade and investment agreements in four categories: 1. Agreements between the UK and Indo-Pacific States; 2. Agreements between Indo-Pacific States; 3. A selection of agreements between the UK and non-Indo-Pacific states; 4. A selection of agreements between Indo-Pacific States and non-UK high-income countries. We used NVivo to code for key terms, classified in over 100 'nodes', in order to establish the frequency of the terms we were researching. We then checked this against existing data on incidence of modern slavery in the countries that are party to the agreements reviewed, along with the existence of domestic legislative and policy frameworks for the prevention of modern slavery. While the bulk of the coding is now done, the quantitative and qualitative analysis of the data is still ongoing. 
Type Of Material Data analysis technique 
Year Produced 2023 
Provided To Others? No  
Impact N/A, as the dataset has not been made publicly available yet. 
 
Description Anti-Slavery International (ASI) 
Organisation Anti-Slavery International
Country United Kingdom 
Sector Charity/Non Profit 
PI Contribution We have used our links through the University of Nottingham Rights Lab to establish the TrIMS (Trade, Investment and Modern Slavery) Network. This has connected ASI and its network with a network of academics and researchers working on modern slavery, and international trade and investment. ASI was actively engaged in the conference we hosted under the project in November 2022, and we continue to share the project's progress and findings with them.
Collaborator Contribution ASI have been instrumental in contacting and engaging with stakeholders, both during the research stage, and later at the dissemination of findings. They connected us with survivors and practitioners who made invaluable contributions to our conference in November 2022, and have introduced us to other organisations, including China Labour Watch, Remedy Project, and CIVIDEP. These links have been useful as these organisations feed into our research, and we will engage with them for the dissemination of our findings later in 2023.
Impact No outputs yet, as the project is still ongoing.
Start Year 2022
 
Description University of Nottingham Malaysia Campus (UNMC) 
Organisation University of Nottingham
Department University of Nottingham Malaysia Campus
Country Malaysia 
Sector Academic/University 
PI Contribution We aim to create links between UNMC and practitioners, NGOs, businesses and as appropriate, government agencies concerned with modern slavery.
Collaborator Contribution UNMC will facilitate stakeholder engagement by providing a venue and facilities for our stakeholders in Malaysia, especially survivors, to engage with us. This will mainly be during the dissemination of our findings at the end of the project.
Impact N/A, as the project is still ongoing.
Start Year 2022
 
Description The TrIMS Network 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact The Trade, Investment and Modern Slavery (TrIMS) Network is a collective of academics, practitioners and policy makers at the intersection of international trade, investment, and modern slavery research, policy and practice. It is convened by Professor Dame Sara Thornton and Dr Timothy Masiko of the University of Nottingham, and will continue research and knowledge exchange activities beyond the duration of this project. The members are drawn from participants in the November 2022 TrIMS conference hosted by this project, and include individuals from academia, civil society, industry, and government departments. The Network's first meeting is due to take place in early spring 2023, and will focus on the preliminary findings from the project.
Year(s) Of Engagement Activity 2023
 
Description TrIMS Conference 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Current legal and policy arrangements addressing modern slavery in supply chains include forced labour import bans, labour clauses in trade deals and investment arbitration mechanisms. However, we need to better understand how and if these work to protect people and businesses against risks of modern slavery. This conference was used to gather evidence and analysis of the role of trade and investment in the Indo-Pacific to manage risks of modern slavery.

The conference was held online and in person at the University of Nottingham, over two days (15 and 16 November 2022) and brought together researchers, policymakers, businesses and civil society to share latest research and develop policy thinking on modern slavery in the context of international trade and investment. Participants discussed how trade and investment are linked to modern slavery, and what steps can be taken to protect potential victims, particularly in the Indo-Pacific region. The conference also laid the groundwork for creating a collaborative network of scholars and practitioners to work on these issues not only throughout the duration of the project but after the project ends as well. This network, called the TrIMS (Trade Investment and Modern Slavery) Network has its initial meeting in early spring 2023, and will be led by Prof Dame Sara Thornton and Dr Timothy Masiko.
Year(s) Of Engagement Activity 2022
URL https://www.nottingham.ac.uk/research/beacons-of-excellence/rights-lab/news/2022/september/call-for-...