Commentary by Associate Professor Yu-Fan Chiu
 April 10, 2026

Scholars and civil society organizations in Taiwan have long advocated for the enactment of a “Business and Human Rights Due Diligence Act,” which would require companies to identify, prevent, mitigate, and account for adverse human rights and environmental impacts within their value chains. Mandating human rights due diligence for Taiwanese enterprises would enable them to proactively address significant risks present in current labor practices in Taiwan.

In a report published by the China Times on April 8, 2026, Associate Professor Yu-Fan Chiu of the School of Law at National Yang Ming Chiao Tung University noted that civil society groups have long called for due diligence legislation. If enacted at an early stage, such legislation could help Taiwan demonstrate to the United States that it has established its own preventive mechanisms. She further pointed out that, under international standards, Taiwanese companies often provide migrant workers with only minimum wages sufficient to meet basic living needs, while requiring excessive overtime work to earn higher pay, conditions that may give rise to risks of forced labor.
In addition, the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) is expected to take effect in 2027, requiring companies to comprehensively assess human rights and environmental risks across their supply chains. Professor Chiu warned that if Taiwan fails to establish a corresponding regulatory framework in a timely manner, companies may face substantial penalties or even international sanctions under the CSDDD. Taiwanese companies exporting to the European Union, in particular, should take note that the CSDDD imposes obligations with extraterritorial effect, extending beyond the EU’s borders.

Furthermore, the EU Forced Labour Regulation (EUFLR) has been adopted and will formally enter into force in December 2027. At that time, any products made with forced labor will be prohibited from being imported into or exported from the territories of EU Member States.

Readers are encouraged to consult the article “Academia Warns: ART Sweatshop Product List Unfavorable to Businesses” to better understand why Taiwanese scholars and civil society organizations, including Professor Yu-Fan Chiu, co-founder of the Taiwan Business and Human Rights Research Project, have emphasized that, unless Taiwan strengthens its labor rights protections and regulatory framework governing corporate responsibility in business and human rights, and implements a robust human rights due diligence system, Taiwanese enterprises may face significant financial penalties, reputational harm, and adverse consequences in international trade.