Forced labour is a serious human rights violation that goes against Canadian values, and it undermines competitiveness for Canada and its trading partners.
The Government of Canada has introduced An Act respecting the prohibition of the importation of goods produced by forced labour to strengthen Canada's existing framework aimed at preventing goods made with forced labour from entering the Canadian market.
Canada's existing approach
In 2020, Canada introduced a forced labour import ban under the Customs Tariff to meet CUSMA obligations.
This prohibition is enforced at the border by the Canada Border Services Agency (CBSA), with support from multiple federal partners. The current framework relies on a risk-based approach to identify shipments of goods that may have been produced by forced labour.
Canada, the United States, and Mexico are the only countries with a forced-labour import prohibition in force. European Union's forced labour ban is expected to be in effect by late 2027, while several other countries have also committed to introducing similar instruments.
In 2024, - the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Supply Chains Act) came into force, which is transparency legislation requiring certain entities and federal institutions to report annually on steps taken to prevent or reduce the risk that forced and child labour were used in their supply chains. This serves as a complementary measure that strengthens Canada's efforts to address forced and child labour in supply chains by promoting transparency and accountability.
Key elements of the proposed legislation
The proposed Act would establish a standalone legislative framework, replacing the current import prohibition under the Customs Tariff. It would strengthen Canada's existing forced labour import ban regime.
The legislation would:
- Provide the Minister of Foreign Affairs with authority to establish a list of high-risk goods-identified by country, region, or entity-where there are reasonable grounds to suspect they are produced by forced labour;
- Establish requirements for importers of certain high-risk goods to provide prescribed information to customs authorities, in accordance with regulations.
- Introduce a deeming provision, whereby goods identified as high-risk would be deemed prohibited from importation when these mandatory information requirements are not met.
- Improve coordination and information-sharing among federal organizations to support enforcement;
- Create a cost-recovery model when importers are found to have imported goods made using forced labour.
Implications for businesses
The proposed legislation would provide predictability and clarity by identifying goods that may present a higher risk or where there are reasonable grounds to suspect the use of forced labour. It would help businesses ensure that goods entering Canada comply with the law and supports Canadian importers in strengthening their understanding of supply chains and their ability to assess potential exposure to forced labour risks. The enhanced framework would promote due diligence practices.
Overall, this legislation would support a level playing field for Canadian companies based by preventing goods made with forced labour from undercutting Canadian businesses and protecting Canadian workers from unfair competition from companies that exploit workers.
Supporting broader efforts
The legislation supports Canada's broader efforts to eradicate forced labour. Canada works closely with international allies and partners to advance this objective, including through cooperation in multilateral forums and as a signatory to key International Labour Organization (ILO) instruments on forced labour. Canada also promotes strong labour provisions in its trade agreements. Additionally, Canada's Trade Commissioner Service promotes responsible business conduct to Canadian companies operating abroad, helping them identify, prevent, and address forced labour risks.
