Canada Introduces Landmark Legislation to Combat Forced Labor in Supply Chains

In a bold move to strengthen its stance against forced labor, Canada has introduced new legislation aimed at tightening restrictions on goods produced through such practices. The Minister of Foreign Affairs, Anita Anand, announced the proposal, which seeks to bolster the current legal framework aimed at blocking these goods from entering the Canadian market.

Bill C-35, officially known as “An Act respecting the prohibition of the importation of goods produced by forced labour,” aims to establish a comprehensive legal structure separate from existing provisions under the Customs Tariff. This act marks a significant step up from the current regulations and enhances Canada’s ability to prohibit the importation of goods manufactured under exploitative conditions. More details can be found on the JURIST News.

If enacted, this legislation would authorize the foreign minister to compile a list of high-risk goods suspected to be produced by forced labor. This list would be categorized by region, entity, or individual. Moreover, importers handling goods on this list would have to provide the Canada Border Services Agency (CBSA) with detailed supply chain tracing information. Failing to comply could result in the goods being deemed prohibited and subsequently blocked from entry.

The proposal also empowers designated customs officers to detain imported goods for up to 90 days, or longer if necessary, to ascertain whether forced labor was involved in their production. Enhanced coordination and information-sharing mechanisms between federal agencies are included to bolster the enforcement of these regulations. Notably, a cost-recovery model is proposed for importers found guilty of violating these provisions.

Anand emphasized the importance of this legislative effort by stating, “Canada will not tolerate the presence of goods produced through forced labor in our markets.” The minister highlighted the nation’s dedication to human rights and transparent trade, asserting that the new law would help Canada align with global initiatives to eradicate forced labor in international commerce.

Currently, Canada, alongside the United States and Mexico, is among the few countries enforcing a prohibition on the importation of products linked to forced labor. This initiative builds on the 2024 Supply Chains Act, which mandates certain entities to disclose their actions towards minimizing forced or child labor in their supply chains.

Internationally, forced labor remains a pressing issue. Recent reports by Amnesty International have shed light on alleged forced labor conditions in Sri Lankan tea estates, while U.S.-based construction companies have faced lawsuits over similar claims relating to FIFA World Cup projects in Qatar. Additionally, Taiwan has introduced guidelines to prevent forced labor in response to global criticism about labor abuses. According to a 2024 International Labour Organization report, forced labor in the private sector generates annual illegal profits of $236 billion USD.