40 2025 TSMA net turnover of more than 450 million euros. 1.2.3 Again very much summarized it is fair to say that the ESCD in certain parts significantly exceeds the requirements of the Supply Chain Act. For example, the scope of protected human rights-related and environment-related legal positions under the EU Directive is substantially broader than under the GSCDDA. Further, the ESCD provides for civil liability of companies for damages caused by their failure to comply with due diligence obligations. The German legislator would therefore be obliged from 2025/26 to tighten further the requirements of it national supply chain law in the course of the transposition of the directive into national law. 2. Which Consequences Can be Expected to arise from the German and EU Supply Chain Law for Taiwanese Sporting Goods Manufacturers and Suppliers: The readers of my contribution to the 2025 TSMA Annual Yearbook may have asked themselves, what they have to do with comprehensive compliance and due diligence obligations imposed by the national German lawmakers and the EU legislators on certain categories of companies of a certain size in the EU. Yet if you as a Taiwanese manufacturer and/or supplier are a contract partner of such EU based companies, you may soon feel practical consequences such as: • Supply contracts may be considerably modified by delegating numerous obligations stemming from the European supply chain laws on the local Taiwanese supplier/manufacturer; • Audits carried out through a third-party certification process may become much more comprehensive as well; • Subcontracting may be substantially restricted by a brand/an OEM manufacturer; • Ultimately it cannot be excluded that EU based companies and brands might opt for re-shoring and relocation in the EU. 3. Possible Future Softening of the EU and National Supply Chain Laws: The recent Draghi Report 2024, named after former European Central Bank President Mario Draghi, focuses on the future of the European Union’s economic gov-
RkJQdWJsaXNoZXIy MjIwMjA1