5 0 Billion Euros: Europe's Child Labour Footprint in 2019

10 Table of Contents Acknowledgements.................................................................................................................... 3 Executive Summary.................................................................................................................... 4 Acronyms ................................................................................................................................. 14 Foreword by Saskia Bricmont .................................................................................................. 17 I. Introduction .......................................................................................................................... 20 II. Research Objectives ............................................................................................................. 23 III. Methodology ....................................................................................................................... 25 IV. Problem Statement............................................................................................................. 25 A. Definitions ........................................................................................................................ 25 B. Child labour lists ............................................................................................................... 26 1. USDOL’s “List of Goods Produced by Child Labor or Forced Labor” ............................. 26 2. USDOL’s “List of Products Produced by Forced or Indentured Child Labor” ................. 27 C. Sectors and geographies with child labour practices ....................................................... 28 D. Share of child labour exposure in products imported to the EU ...................................... 30 1. Methodology applied ................................................................................................... 30 2. Example child labour commodities .............................................................................. 33 3. Child labour footprint findings ..................................................................................... 36 4. Forced/indentured child labour findings ...................................................................... 45 E. Factors of child labour ...................................................................................................... 51 F. Child labour vs. trade ........................................................................................................ 54 1. Does trade itself lower the phenomenon of child labour? .......................................... 54 2. How could unconditional trade bans and sanctions lower child welfare? .................. 57 G. Laissez-faire vs. intervention............................................................................................ 58 1. Morbidity and mortality of hazardous labour .............................................................. 59 2. Foregone economic returns of education .................................................................... 60 3. Labour substitutability, multiple equilibria .................................................................. 60 H. Implications of child labour models ................................................................................. 62 Dimension 1: Income and Basic Needs............................................................................. 62 Dimension 2: Quality of the education system ................................................................ 63 Dimension 3: Government capacity ................................................................................. 66 V. UNGPs Pillar I – Measures to Enhance the State’s Duty to Protect .................................... 68 A. EU trade policy enforcement vis-à-vis child labour .......................................................... 68 1. Trade and Sustainable Development Chapters ............................................................ 68 2. Stringency of child labour provisions ........................................................................... 73 3. Local impact dimension of TSD chapters...................................................................... 75 4. EU-UK Free Trade Agreement ...................................................................................... 76 5. EU “essential elements” human rights clause .............................................................. 77 6. EU trade sanction instruments ..................................................................................... 78 B. U.S. trade policy enforcement vis-à-vis child labour ........................................................ 79 1. DHS mechanism ............................................................................................................ 80 2. EO mechanisms............................................................................................................. 87 3. List of Goods, coordination of enforcement ................................................................ 89