The federal government has proposed An Act respecting the prohibition of the importation of goods produced by forced labour to bolster the existing ban on importing goods made with forced labour by establishing an independent legislative framework to replace the existing import prohibition under the Customs Tariff.
The framework is expected to promote due diligence. The legislation will also clarify compliance obligations for businesses and Canadian importers.
Under the Act, the foreign affairs minister is authorized to set a high-risk goods list categorized by region, entity, or individual if there are reasonable grounds to suspect the involvement of forced labour in the production process. The Act also requires importers of certain high-risk goods to provide enhanced supply chain tracing information to customs authorities per regulations.
The Act introduces a deeming provision that bans goods regarded as high risk from importation in the event of noncompliance. It also boosts enforcement through greater coordination and information-sharing among federal organizations.
A cost-recovery model will be developed for instances where importers are caught importing goods produced with forced labour. These measures will enhance Canada’s alignment with global human rights protection initiatives.
“Canada will not tolerate the presence of goods produced through forced labour in our markets. This legislation strengthens our commitment to human rights and fair, transparent trade by giving us stronger tools to stop these goods at the border and protect the integrity of our supply chains. It also supports vulnerable workers and aligns Canada with global efforts to eliminate forced labour from international trade,” said Anita Anand, foreign affairs minister, in a statement.
Canada first introduced a forced labour import ban under the Customs Tariff in 2020 to honour its obligation under the Canada-United States-Mexico Agreement. Canada, the US, and Mexico alone have enforced such a ban to date.
Canada then implemented the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Supply Chains Act) in 2024, which mandates certain entities and federal institutions to provide annual reports on efforts to prevent or limit the risk of using supply chains incorporating forced and child labour.
This month, prime minister Mark Carney committed to improving the import ban through new legislation.