Giant Manufacturing Co (巨大) yesterday said that it would petition US authorities to revoke a ban on imports of its bicycles from Taiwan as the world’s largest bike maker’s shares slumped over the US measure due to alleged forced labor.
The Taiwanese manufacturer’s stock fell as much as 9 percent early yesterday after US Customs and Border Protection said its personnel would seize Taiwan-made Giant bikes and parts at the border, citing what it said was evidence of abusive working conditions, debt bondage and other indicators of worker abuse.
Giant shares regained some momentum and closed 0.6 percent lower at NT$99.90.
Photo: CNA
Giant said in a statement that it is “committed to upholding human rights” and would file a petition to seek the revocation of the so-called withhold release order.
The company highlighted its implementation of a “Zero Recruitment Fee Policy” since January that it said covers all recruitment-related costs for migrant workers.
The company also said that it completed upgrades to employee housing by the end of last year, and has established internal and third-party audit mechanisms.
Giant added that it had implemented internal supervision mechanisms and third-party audits, and “continues to conduct due diligence to ensure compliance with international standards.”
The company expects the US import ban might affect 4 to 5 percent of its overall revenue, the statement said.
The import ban applies only to products manufactured in Taiwan and exported to the US, leaving other markets unaffected.
While some US shipments might be delayed, Giant said that supply and sales in other regions would continue as normal.
The dispute comes as Taiwan continues to negotiate on trade with Washington.
US President Donald Trump this month said that he would impose tariffs on imports of semiconductors “very shortly,” a move that could threaten a key made-in-Taiwan product and the nation’s economy.
The Ministry of Economic Affairs said it would assist Giant in resolving any forced labor issues so the US order could be lifted as soon as possible.
“As a responsible member of the global supply chain, Taiwan has always attached great importance to improving labor conditions,” the ministry said in a statement.
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