The European Commission’s Omnibus simplification package threatens the integrity of the Corporate Sustainability Due Diligence Directive (CSDDD) by weakening corporate accountability. As WFTO-Europe, representing over 80 SME’s in Europe fully practicing Fair Trade, we strongly oppose these changes, which put the livelihoods of producers and artisans in Europe and worldwide at risk.

By limiting corporate responsibility, removing civil liability and reducing penalties for non-compliance, the proposed revisions undermine the core of the directive. Fair Trade enterprises—whether in Europe or the Global South—work to ensure fair wages, dignified working conditions and sustainable production. Weakening due diligence measures like the CSDDD and CSRD will not only make it harder for such ethical businesses to compete and for producers to secure their rights, but also hamper efforts to make this mainstream business practice. This stands in the face of our business values and empties the promise of free enterprise and trade, namely that it is mutually beneficial and enriches all that participate in it.

In general, these proposed revisions mean that the CSDDD no longer aligns with the UN Guiding Principles on Business and Human rights. Additionally, the whole procedure undermines trust in the EU law-making procedures: This is a shockingly undemocratic way to re-open a legislative text that had been previously agreed by all parties of the EU legislature. The CSDDD was previously a significant achievement of the EU that set a precedence for harnessing business as a force for sustainable development, both within and outside the EU. We are now deeply concerned that the proposed revisions will only result in another tick-box exercise for big companies without positive impact on producers and artisans across the world.

Fair Trade enterprises have long proven that responsible business practices are both viable and necessary for our shared sustainable future. We urge EU co-legislators to reject these harmful revisions and ensure that the CSDDD remains a strong and effective tool for fairness, accountability and social justice and across global and local value chains.