The agreement clarifies the different responsibilities of the EU Commission and the member states in identifying the companies exploiting forced workers and banning their products.

The deal intends to break these companies' business model, Pierre-Yves Dermagne, Belgium's Economy and Labour Minister, said in a statement.

"With this regulation, we want to make sure that there is no place for their products on our single market, whether they are manufactured in Europe or abroad," he said. Belgium currently holds the EU's rotating presidency.

The bans would be enforced on goods made outside the EU by forced labor and on products manufactured in the EU with parts made abroad by forced labor.

Formal approval by the European Parliament and the Council is still required for the provisional agreement to be enforced.