global trade

US lifts import ban on Malaysia’s Top Glove over forced labor concerns

Reuters
US lifts import ban on Malaysia’s Top Glove over forced labor concerns

TOP GLOVE. A worker leaves a Top Glove factory after his shift in Klang, Malaysia, December 7, 2020.

Lim Huey Teng/Reuters

The US Customs and Border Protection says it will now allow Top Glove imports after the company addressed all indicators of forced labor

The United States on Friday, September 10, allowed imports from Malaysia’s Top Glove Corporation, after customs authorities lifted a yearlong ban imposed for alleged forced labor found at the world’s largest medical glove maker.

The US Customs and Border Protection (CBP) had banned gloves made by Top Glove in July 2020, saying it had found abuses of migrant workers.

In a statement, the CBP said it will now allow imports after a thorough review of evidence that showed Top Glove has addressed all indicators of forced labor.

Top Glove had said earlier its disposable gloves would be admissible at all US ports as of September 10.

Its shares, which have plunged about 40% since the ban, jumped as much as 10% on Friday.

Top Glove has taken a hit to reputation and business from the ban, which came at a time when it was making record profits as the COVID-19 pandemic boosted demand for its gloves.

Its glove production in Malaysia has dropped and a plan for a $1-billion Hong Kong listing has been delayed since the ban.

The North American market accounts for 22% of Top Glove’s total sales volume, according to most recent data.

Improvements at Top Glove

The CBP had prohibited imports of Top Glove products citing evidence of forced labor practices at the company, including debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents.

While Top Glove said in April it had resolved all forced labor indicators, US Customs had two of the company’s shipments seized in May.

Rights activist Andy Hall, who had urged the CBP to investigate Top Glove, said he welcomed the decision to lift the ban “in light of the considerable improvements in foreign workers’ living and working conditions” at Top Glove.

Top Glove has upgraded hostel facilities for its migrant workers, who account for a majority of its factory workforce, and promised to compensate them for the fee they paid to employment agents in their home countries.

The fees result in debt bondage, labor activists say.

Rivals Hartalega Holdings and Kossan Rubber have also since said they would pay back the fees.

Two other Malaysian firms have also been hit with US bans in the last year – Sime Darby Plantation and FGV Holdings. The palm oil producers have both appointed auditors to evaluate their practices and said they would engage with CBP to address the concerns raised. – Rappler.com