weighted score 7.4 · nine dimensions
Country Risk Profile
Libya
Sourcing risk, regulatory exposure and audit intelligence for Libya-origin supply chains.
Forced & child labour
7
Systematic exploitation of migrant workers in detention. IOM and UN document forced labour across oil services, construction, and agriculture. Transit country for trafficking.
Worker rights & FOA
7
No functioning labour ministry. Two rival governments. Armed groups control labour conditions in their territory. Freedom of association non-existent in practice.
OHS & audit transparency
8
Independent auditing impossible due to security conditions. No credible OHS enforcement. Oil sector operates under its own safety standards with limited oversight.
Food & product safety
7
Regulatory capacity collapsed post-2011. Food safety infrastructure severely degraded. Import controls fragmented between rival administrations.
Environmental & regulatory
5
Oil spills and environmental damage widespread. No effective environmental enforcement. Desert ecosystem degradation from conflict and oil operations.
Governance & anti-corruption
9
TI CPI 2025: 13/100. Two rival governments. Oil revenue distribution contested. Militia control of economic assets. Among the most corrupt environments globally.
Tariff & preferential access
7
No EU FTA or GSP access. MFN tariffs apply. EU-Libya Framework Agreement suspended since 2011. UN and EU sanctions restrict certain transactions.
Non-tariff barriers
8
EU and UN sanctions create significant compliance burden. Due diligence requirements for Libya-origin transactions are elevated. Banking sector fragmented.
Supply chain traceability
9
Traceability effectively impossible beyond crude oil cargoes. Fragmented governance, militia-controlled supply routes, and no functioning customs authority in large parts of the country.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- Widespread forced labour of migrants documented by IOM and UN agencies. Migrants transiting through Libya face detention in unofficial facilities where forced labour and trafficking are systematic.
- Sectors at elevated risk
- Oil sector support services, construction, agriculture, and domestic work. Migrants from sub-Saharan Africa are particularly vulnerable to exploitation by armed groups controlling territory.
- Audit limitations
- Independent labour audits are effectively impossible across most of the country due to security conditions and fragmented governance. No credible social compliance infrastructure exists.
- ILO conventions
- Libya has ratified core ILO conventions but enforcement is non-existent. Two rival governments and numerous militia groups operate outside any labour regulatory framework.
- ILAB status
- Libya is flagged by the US Department of Labor for forced labour. The country is a documented transit and exploitation hub for migrant workers.
EU Regulatory Exposure
EU Regulatory Exposure
- GSP status
- Libya is not a GSP beneficiary. MFN tariffs apply. No FTA with the EU. The EU-Libya Framework Agreement negotiations have been suspended since 2011.
- Sanctions
- EU maintains targeted sanctions on Libya including asset freezes and travel bans on designated individuals and entities. UN Security Council sanctions also apply.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. Libya-origin goods — particularly oil sector services — present high risk of investigation given documented migrant exploitation.
- CBAM exposure
- Limited direct exposure — Libya exports predominantly crude oil which is outside current CBAM scope. Any future petrochemical or metals exports would face CBAM requirements.
- Arms embargo
- EU and UN arms embargo in effect since 2011. Oil sector revenue distribution remains contested between rival administrations.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary export corridor
- Mediterranean coast → EU ports (primarily Italy, Spain, Greece)
- Key export
- Crude oil — 93% of exports. Production approximately 1.35M bpd. Oil revenues are the sole significant economic output.
- Main EU destination ports
- Augusta (Sicily), Trieste, Marseille — Italy is the primary EU destination for Libyan crude.
- Typical transit time
- 2-4 days to Southern European ports
- Infrastructure status
- Port infrastructure damaged during 2011 civil war and subsequent conflicts. Es Sider and Ras Lanuf oil terminals have been repeatedly contested by rival forces.