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.
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
Albornoz F
Internaitonal Trade and Forced Labour
in International Organization (under review)
Bernhardt J
(2024)
Addressing modern slavery in bilateral investment treaties
Bianchi L
(2024)
Concise Encyclopedia of Corporate Social Responsibility
Landman T
(2022)
Research Handbook on Implementation of Human Rights in Practice
| Description | Modern slavery is linked to international trade and investment in myriad ways. While the relationship between trade, investment, and modern slavery is clear, it is also complex, multi-faceted, and variable. Thus, there is no single story of how international trade and investment impact modern slavery. Given the undeniable connection between modern slavery, trade, and investment in various contexts, efforts to address modern slavery through trade and investment instruments and relations have gained significant traction in recent years. Yet, despite the UK's stated commitment to tackling modern slavery globally and acting as a 'force for good' on the international stage promoting and supporting human rights, efforts to address modern slavery in UK trade and investment remain underdeveloped. The following were our key findings: 1. Our systematic analysis of UK and Indo-Pacific Trade Agreements (TAs) and Bilateral Investment Treaties (BITs) reveals that UK efforts to include modern slavery relevant concerns in trade and investment instruments with the Indo-Pacific currently falls short of best practice and does not reflect a coherent strategy. While inclusion of modern slavery concerns in TAs has developed over time, these issues are yet to be meaningfully considered in the context of BITs. 2. Our econometric analysis reveals that the impact of trade relations on forced labour depends on the types of products being traded and the characteristics of trade partners. Trade openness can help to reduce forced labour and strengthen protection against such when involving partners with high levels of labour protection. Trade in primary goods and products intensive in unskilled labour can increase forced labour, where labour protections are not pursued and enforced. 3. Our country case studies reveal high levels of differentiation between different Indo-Pacific states in terms of both modern slavery and trade dynamics, as well as states' commitment to human and labour rights. While some standardisation in UK policy is valuable, this demonstrates the importance of context-specific approaches. |
| Exploitation Route | The project's finding have wide ranging implications for the UK government, civil society organisations, and researchers. The project makes a series of key recommendations on how the findings can be taken forward and put to use. These include the recommendations below. The UK Government should: 1. Develop a systematic approach to the integration of modern slavery concerns in trade and investment agreements, embedded in a broader UK trade strategy addressing human rights, labour rights, and sustainable development. 2. Seek to ensure that modern slavery concerns are substantially integrated in trade and investment agreements in negotiations, with robust monitoring and engagement mechanisms. 3. Review existing trade and investment agreements with a modern slavery lens to support future amendments and new instruments. 4. Adopt a tailored and context-specific approach to the integration of modern slavery concerns in trade and investment relations with the Indo-Pacific, accounting for the different risk and production profiles of the different states, existing international commitments, and domestic legislative and regulatory infrastructure. 5. Conduct rigorous ex ante sustainability impact assessments during negotiation of all trade and investment agreements, including engagement with people with lived experience of modern slavery and CSOs in the third country. 6. Conduct rigorous and regular sustainability impact assessments for all trade and investment agreements during implementation, including engagement with people with lived experience of modern slavery and CSOs in the third country. 7. Include formal commitments of Indo-Pacific states to international human rights and labour rights instruments as a conditionality of trade and investment negotiations. 8. Develop a coherent foreign policy approach to advancing modern slavery protections in third states, integrating antislavery efforts in trade and investment with other soft power domains (including development policy). 9. Develop mechanisms for engagement of people with lived experience of modern slavery and other vulnerable populations in the negotiation and monitoring of trade and investment agreements, supported by survivor-led organisations. 10. Fund robust research on the impacts of trade and investment on modern slavery policy and practices in third countries. Civil society organisations should: 1. Advocate for greater integration of modern slavery practices in future trade and investment agreements. 2. Proactively engage in monitoring and auditing of modern slavery provisions in trade and investment agreements, including recording modern slavery abuses directly related to the impact of trade and investment relations. 3. Support the development of mechanisms for engagement of people with lived experience of modern slavery and other vulnerable populations in the negotiation and monitoring of trade and investment agreements. Researchers should: 1. Expand the TRIMS-TA/BITs database to encompass all trade and investment agreements globally. This would provide richer insights on where and how modern slavery considerations are addressed in these instruments, what factors influence this, and the impacts of different approaches. 2. Pursue qualitative research on the ways in which modern slavery practices and related concerns are considered in negotiation processes for trade and investment agreements, and how these change throughout the process. 3. Undertake rigorous and systematic research evaluating the impacts of import bans on the ground, with a focus on effects on vulnerable populations. |
| Sectors | Agriculture Food and Drink Communities and Social Services/Policy Construction Leisure Activities including Sports Recreation and Tourism Government Democracy and Justice Manufacturing including Industrial Biotechology Retail Security and Diplomacy Transport Other |
| Description | We have consistently engaged with government agencies, primarily the Foreign, Commonwealth and Development Office (FCDO) on matters related to modern slavery and the UK's international trade and investment agreements. We have met with officials from the FCDO, including the UK's Migration and Modern Slavery Envoy, the interim Modern Slavery Envoy, and newly appointed Modern Slavery Envoy, the Deputy Head of Human Rights, the Head of Modern Slavery and Business and Human Rights team, the Deputy Head of Modern Slavery and Business and Human Rights team, the Policy and Program Manager, and Policy and Program Officers. Our engagements with the FCDO have led to stronger links and closer cooperation between the University of Nottingham Rights Lab and the FCDO on the development of policy and leading research. As a result, the Rights Lab have been included in a newly established Stakeholder Engagement Group set up by the newly appointed Modern Slavery envoy--the only academic research organisation to be represented in this group. The project team are maintaining ongoing engagement with the FCDO to facilitate uptake and use of research findings. |
| First Year Of Impact | 2022 |
| Sector | Government, Democracy and Justice,Security and Diplomacy |
| Impact Types | Policy & public services |
| 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 | Modern Slavery in UK-Indo-Pacific Bilateral Investment Treaties: Qualitative Dataset |
| Description | This qualitative dataset tracks references to modern slavery and related concerns in the text of all UK-IndoPacific and IndoPacific-IndoPacific bilateral investment treaties. Covering a total of 79 bilateral investment treaty texts, the dataset codes reference to 119 distinct variables across 8 substantive categories: modern slavery and exploitation, rule of law, human rights, labour rights, supply chains, development, monitoring and engagement, and international mechanisms. This qualitative dataset was developed in NVivo 12 qualitative analysis software, and is available as an NVivo file to enable interrogation of references in context, as well as in an Excel/Word format. |
| Type Of Material | Database/Collection of data |
| Year Produced | 2023 |
| Provided To Others? | No |
| Impact | Analysis of the dataset was conducted and analysed within the final project report (Harnessing UK Trade and Investment to Address Indo-Pacific Modern Slavery Risks: Policy Report). Further analysis is currently being finalised, and will be presented in an additional report 'Addressing modern slavery in bilateral investment treaties'. The dataset will then be made freely and publicly available for interested stakeholders and researchers, to inform future research and direct policy and practice in regard to international investment. |
| Title | Modern Slavery in UK-Indo-Pacific Bilateral Investment Treaties: Quantitative Dataset |
| Description | This quantitative dataset tracks references to modern slavery and related concerns in all UK-Indo-Pacific and Indo-Pacific-Indo-Pacific bilateral investment treaties. The dataset reports on both the presence and frequency of reference to 119 distinct variables across 8 substantive categories: modern slavery and exploitation, rule of law, human rights, labour rights, supply chains, development, monitoring and engagement, and international mechanisms. A total of 79 bilateral investment treaties are included in the dataset. |
| Type Of Material | Database/Collection of data |
| Year Produced | 2023 |
| Provided To Others? | No |
| Impact | Analysis of the dataset was conducted and analysed within the final project report (Harnessing UK Trade and Investment to Address Indo-Pacific Modern Slavery Risks: Policy Report). Further analysis is currently being finalised, and will be presented in an additional report 'Addressing modern slavery in bilateral investment treaties'. The dataset will then be made freely and publicly available for interested stakeholders and researchers, to inform future research and direct policy and practice in regard to international investment. |
| Title | Modern Slavery in UK-Indo-Pacific Trade Agreements: Qualitative Dataset |
| Description | This qualitative dataset tracks references to modern slavery and related concerns in the text of all UK and Indo-Pacific trade agreements. Covering a total of 108 trade agreement texts, the dataset codes reference to 119 distinct variables across 8 substantive categories: modern slavery and exploitation, rule of law, human rights, labour rights, supply chains, development, monitoring and engagement, and international mechanisms. This qualitative dataset was developed in NVivo 12 qualitative analysis software, and is available as an NVivo file to enable interrogation of references in context, as well as in an Excel/Word format. |
| Type Of Material | Database/Collection of data |
| Year Produced | 2023 |
| Provided To Others? | No |
| Impact | Analysis of the dataset was conducted and analysed within the final project report (Harnessing UK Trade and Investment to Address Indo-Pacific Modern Slavery Risks: Policy Report). Further analysis is currently being finalised, and will be presented in an additional report 'Addressing modern slavery in trade agreements in the UK And Indo-Pacific'. The dataset will then be made freely and publicly available for interested stakeholders and researchers, to inform future research and direct policy and practice in regard to international trade. |
| Title | Modern Slavery in UK-Indo-Pacific Trade Agreements: Quantitative Dataset |
| Description | This quantitative dataset tracks references to modern slavery and related concerns in all UK and Indo-Pacific trade agreements. The dataset reports on both the presence and frequency of reference to 119 distinct variables across 8 substantive categories: modern slavery and exploitation, rule of law, human rights, labour rights, supply chains, development, monitoring and engagement, and international mechanisms. A total of 108 trade agreements are included in the dataset. |
| Type Of Material | Database/Collection of data |
| Year Produced | 2023 |
| Provided To Others? | No |
| Impact | Analysis of the dataset was conducted and analysed within the final project report (Harnessing UK Trade and Investment to Address Indo-Pacific Modern Slavery Risks: Policy Report). Further analysis is currently being finalised, and will be presented in an additional report 'Addressing modern slavery in trade agreements in the UK And Indo-Pacific'. The dataset will then be made freely and publicly available for interested stakeholders and researchers, to inform future research and direct policy and practice in regard to international trade. |
| 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 dissemination of project outputs is still ongoing. |
| Start Year | 2022 |
| Description | Meeting with FCDO August 2023 |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | We met with a team from the Foreign, Commonwealth and Development Office who visited the University of Nottingham on 1 and 2 August 2023. We shared research findings with them and updated them on next steps, including expectations of government action. |
| Year(s) Of Engagement Activity | 2023 |
| Description | Meetings with UK Migration and Modern Slavery Envoy |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | We met with Andrew Patrick, the UK's Migration and Modern Slavery Envoy, to discuss the project, give updates and share early results at different stages of the project. |
| Year(s) Of Engagement Activity | 2022,2023 |
| 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-... |
| Description | UK Modern Slavery Envoy Stakeholder Engagement Group |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Co-I Schwarz attended the UK Modern Slavery Envoy's Stakeholder Engagement Group--a closed meeting with the new UK Modern Slavery Envoy and FCDO representatives working on modern slavery, as well as a selection of key civil society organisations based in the UK. This meeting of ~15 key stakeholders from policy and practice served to bring the research to the attention of the new MS Envoy and highlight key findings and recommendations from the project. |
| Year(s) Of Engagement Activity | 2023 |