2023-06-22

Public debate: What does the German Supply Chain Due Diligence Act Mean for Serbian Companies?

Centre Dialogue – Social Forum

On 22 June 2023, the CDF organised a debate on the topic What does the German Supply Chain Due Diligence Act Means for Serbian Companies? in cooperation with the Friedrich Ebert Foundation.

Partaking in the discussion were: Peer Krumrey, Counsellor; Head of Labour and Social Affairs, German Federal Republic Embassy in Serbia; Johanna Wohlmeyer, German Organization for International Cooperation (GIZ); Aleksandar Todić, Association of Branch Unions „Independence“; Jovana Spajić Erdeljan, International Labour Organization; Tanja Lindell, Serbian Chaimber of Commerce; Svetlana Budimčević, Serbian Association of employers; Kirsten Schönefeld, Friedrich Ebert Foundation; Nataša Vučković, Center for Democracy Foundation. The conversation was moderated by journalist, Ljubica Gojgić.

Germany passed the Supply Chain Due Diligence Act, meaning that suppliers from Serbia will also have to establish risk management systems to meet human rights and environmental requirements in terms of production and transport. The Act has been in effect since January of this year and obliges German companies to demand from their direct and indirect suppliers the application of a series of human/labour rights and environmental rules and standards. Those in the supply chain will have to meet standards regulating polluting substances, the use of mercury and the transboundary movement of waste and its disposal, among other things. With the introduction of new regulations in Germany and other European countries, environmental production and transport regulations should gain importance. Germany is Serbia's main foreign trade partner, and according to data prepared by the Chamber of Commerce and Industry of Serbia, 3,000 companies from Serbia export to this country. However, the law does not apply to exporters of finished products.

During this debate, we wanted to consider how many Serbian companies will be covered by the verification system aligned with the new German Supply Chain Due Diligence Act. How will companies prove that they meet the given conditions? What is the role of state institutions in this process? What is included in a company's ‘due diligence’ obligations? What human rights violations does the Act cover? What obligations do companies have in terms of environmental protection? What are the consequences for companies that do not fulfil the prescribed obligations? How much time and other resources do our companies have to adapt to the new rules? How does this issue relate to the European integration of Serbia and harmonisation with the EU acquis?

In the discussion, it was pointed out that the law will have many effects on employers and employees. The focus is on respect for human rights and environmental standards, this is an important topic for economy, politics, social development.

We organised the following debate in collaboration with the Friedrich Ebert Foundation – Centre Dialogue – Social Forum.