Question Period Note: Canadian Ombudsperson for Responsible Enterprise

About

Reference number:
00004-2024
Date received:
Apr 23, 2024
Organization:
Global Affairs Canada
Name of Minister:
Ng, Mary (Hon.)
Title of Minister:
Minister of International Trade

Issue/Question:

The Canadian Ombudsperson for Responsible Enterprise (CORE) published its first investigation report and has issued recommendations for the Minister.

Suggested Response:

• I have taken note of the CORE's report, its findings, and recommendations, which we take very seriously.
• The CORE may make recommendations to me if a Canadian company fails to act in good faith during a CORE review.
• The support provided by Canada's Trade Commissioner Service (TCS) is discretionary. Given the CORE's determination that the company failed to act in good faith during the review, the TCS will not provide trade advocacy support to this company, should they request it.
• I have also asked Export Development Canada to fully consider the CORE's findings as part of its due diligence should the company seek financial support in the future.
• Non-judicial dispute resolution provided by the CORE and Canada's National Contact Point (NCP), is an important component of Canada's balanced approach to promoting responsible business conduct. I encourage all parties to engage constructively with CORE and NCP review processes.

Background:

In March 2021, the CORE launched its online complaints portal. As of March 2024, the CORE had a total of 22 active complaints: seven at the intake stage, five at the initial assessment stage, eight at the investigation stage, and two complaints were in follow up on recommendations stage.
On March 26, 2024, the CORE published its first investigation report on Dynasty Gold Corporation. Dynasty Gold is a Vancouver-based gold exploration company. The complaint stems from allegations that the company's mining operations, through a Sino-foreign joint venture in China's Xinjiang Uyghur Autonomous Region, uses or benefits from Uyghur forced labour.
The CORE concluded through independent fact finding that on a balance of probabilities a human rights abuse has occurred at the Hatu Qi-2 mine, in which Dynasty Gold holds a majority interest. The report includes a number or recommendations to the company.
The CORE also concluded that Dynasty did not participate in good faith during the review process, and therefore made recommendations to the Minister of International Trade (in line with the CORE's Order in Council) to:
1) withdraw any trade advocacy support currently provided to Dynasty, should Dynasty be receiving such support;
2) refuse to provide any future trade advocacy support to Dynasty, if requested, until such time as Dynasty has fulfilled the Ombud's recommendations; and
3) that Export Development Canada refuse to provide future financial support to Dynasty, if requested, until such time as Dynasty has fulfilled the Ombud's recommendations.
The company responded to the CORE's report by refuting the allegations, stating that its exploration in Xinjiang ceased in 2008. The company is calling for the retraction of the report and an apology from the CORE.

Additional Information:

None