TAIPEI – Taiwan's Ministry of Labor (MOL) has defended its plan to prohibit migrant workers in the manufacturing and fishing sectors from paying recruitment-related fees, saying the policy is necessary to fulfil the country's commitments under its trade agreement with the United States.

The ministry rejected calls on July 27 to suspend the proposed reforms in a written response to a public petition opposing the measure, stating that Taiwan had agreed to adopt the principle of "fair recruitment" under the Taiwan-U.S. Agreement on Reciprocal Trade (ART), signed in February.

Under the agreement, Taiwan must ban recruitment fees and related costs charged to migrant workers in the manufacturing and fishing industries within three years of the trade pact taking effect, as reported by CNA.

The MOL said the commitment reflects growing international efforts, particularly by the United States and the European Union, to combat forced labour through supply chain requirements, helping to protect Taiwan's industrial competitiveness and export markets.

The ministry noted that migrant workers often bear the cost of overseas recruitment, including agency fees, airfare and other pre-departure expenses, which can leave them vulnerable to debt bondage and forced labour.

To meet its obligations, the government plans to amend legislation requiring employers in the manufacturing and fishing sectors to pay overseas recruitment costs for migrant workers throughout the duration of their employment contracts.

However, the ministry clarified that household employers who hire live-in migrant caregivers and domestic workers are not covered by the trade agreement.

The response followed a petition launched in April by the International Association of Families and Employers with Disabilities (IAFED), which gathered 5,929 signatures on Taiwan's Public Policy Participation Platform.

The association argued that shifting recruitment costs entirely to employers would place an additional financial burden on small and medium-sized enterprises, the fishing industry and families employing migrant caregivers.

It estimated that the policy could increase the cost of hiring each migrant worker by between NT$100,000 and NT$190,000.

While the ministry did not respond directly to the cost estimate, it said consultations with employers in the affected industries are ongoing.

The MOL added that a growing number of businesses have recognised the global shift towards fair recruitment and the trade risks associated with forced labour allegations.

During the three-year transition period, the ministry said it will continue engaging with industry representatives, employer groups, relevant government agencies and the governments of migrant workers' countries of origin to develop supporting measures for the policy's implementation.