DISCUSSION

Walmart Says 'No' to Uzbek Cotton Over Child Labor

Written by George Anderson
By George Anderson

Walmart is the latest retailer to announce it will not buy cotton sourced from Uzbekistan over that country's lack of action in ending forced child labor.

Other retailers including Tesco and Debenhams have previously said they would not do business with suppliers who bought cotton from the Central Asian nation. Uzbekistan, according to Reuters, is one of the top exporters of cotton in the world.

Walmart's vice president of ethical standards, Rajan Kamalanathan, said the retailer was working with trade associations, government agencies and others to exert pressure on Uzbekistan.

"We have formed an unprecedented coalition, representing 90 percent of the U.S. purchases of cotton and cotton-based merchandise, to bring these appalling child labor conditions to an end. There is no tolerance for forced child labor in the Wal-Mart supply chain," said Mr. Kamalanathan in a statement.

The American Association of Footwear and Apparel, Retail Industry Leaders Association, National Retail Federation, and the United States Association of Importers of Textiles and Apparel sent a letter to the Uzbekistan Embassy in August asking the government to step in and end forced child labor in the harvesting of cotton.

The Uzbek government responded in September with a list of steps it would take as part of a National Action Plan.

Walmart has said it will reconsider its decision once it is able to verify that Uzbekistan has adequately addressed the problem.

Discussion Questions: Do you see new precedents being set in this action in the kind of pressure a retailer coalition is able to apply to sourcing markets? Do you see dangers in businesses and trade associations taking sides against foreign governments?

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