The proposed legislation seeks to establish a rebuttable presumption that goods containing cobalt refined in the PRC are produced with forced or child labor, unless importers can provide clear evidence to the contrary. This bill intends to bolster the enforcement of existing laws regarding forced labor and child labor, particularly the Tariff Act of 1930, which prohibits the importation of goods made wholly or in part by such practices. The bill underscores the U.S. commitment to human rights and environmental sustainability in international trade, as the DRC is notorious for its labor practices in the mining sector.
Summary
House Bill 6909, named the 'China’s Odious and Brutally Atrocious Labor Trafficking Supply Chain Act' or the 'COBALT Supply Chain Act', aims to prevent the importation of goods made or containing cobalt refined in the People’s Republic of China (PRC), particularly due to concerns about child and forced labor in the Democratic Republic of Congo (DRC). Cobalt is a crucial component in lithium-ion batteries, which are essential for a variety of technologies, including electric vehicles and smartphones. The bill reflects a growing urgency over cobalt's supply chain integrity, especially as demand for cobalt is expected to rise significantly in coming years.
Contention
However, potential points of contention arise with the bill's stringent measures. Opponents may argue that establishing a presumption of forced labor could complicate international trade relations, particularly with China, where U.S. businesses heavily rely on resources. There are also concerns regarding the feasibility of tracing the origins of cobalt and establishing comprehensive enforcement strategies to ensure compliance. Furthermore, as PRC companies hold significant control over cobalt production in the DRC, there may be backlash regarding economic sanctions that could impact not only foreign relations but also the livelihood of local mining communities.
Calling upon the International Seabed Authority to adopt regulations allowing the collection of critical minerals from the international seabed area, which will enable America to regain reliable and responsible supply chains, provide high-wage jobs for United States citizens, secure supply chains away from the People's Republic of China's dominance of the critical mineral supply chain, and for other purposes.