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Germany’s Supply Chain Due Diligence Act: Is It Compatible with WTO Obligations?

Regulations that aim at the observance of certain human rights and environmental standards by companies along the value chain have gained momentum. A recent example is the German Supply Chain Due Diligence Act that obliges German companies to adhere to due diligence obligations vis-à-vis human rights and, to a lesser extent, the environment when making use of global supply chains. Germany, as other WTO members, must at the same time ensure compliance with WTO law when adopting such measures. This article will argue that due diligence laws may have a bearing on WTO obligations, but can be justified according to the general exceptions clause of Art. XX GATT. Ultimately, the article argues that such measures may be necessary if international economic law is to accommodate the common goal of sustainable development.