Question Period Note: FORCED LABOUR (GLOBAL SUPPLY CHAINS)

How is Canada addressing exploitative labour practices in global supply chains?

he Government of Canada believes in the importance of upholding human rights, including international labour standards, in global supply chains.

The Government of Canada will continue to work closely with stakeholders and international partners to address exploitation in supply chains.

[Responsive on the Fighting Against Forced Labour and Child Labour in Supply Chains Act]

An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff came into force on January 1, 2024. Public Safety Canada is responsible for its implementation.

The Government remains committed to eradicating forced labour and labour exploitation from global supply chains.

[Responsive on the import ban on goods produced with forced labour]

The Canada Border Services Agency is responsible for the enforcement of the import ban.

Federal departments are working together to strengthen the regime, further to consultations held by Global Affairs Canada, and ongoing discussions with international counterparts, including the United States.

The International Labour Organization estimates that there are 27.6 million victims of forced labour worldwide (2021).

Among the cases of forced labour reported in the private economy, the following sectors accounted for the highest share: industry (mining, fishing, etc.), services (wholesale, trade, accommodations, etc.), agriculture (forestry, hunting, etc.,) and domestic work.

12% (3.3 million) of all those in forced labour are children, and women and girls make up 43% (11.8 million) of the total people in forced labour.

World Vision estimates that nearly $48 billion in goods imported into Canada in 2021 were at risk of being made with forced and/or child labour, representing 7.5% of total imports.

International and Domestic Efforts

Internationally, several jurisdictions have adopted or announced legislation to address labour and human rights abuses and violations in global supply chains.

Supply chain legislation is a proactive measure that requires companies to look at their supply chains and identify/address risks of forced labour (or other human rights violations, depending on the scope of legislation).

Import bans are a reactive trade/border measure to block market access of goods determined to be made with forced labour. This is distinct from supply chain legislation, which is not specific to any one good, sector or country, and applies to regulated parties irrespective of whether or not they import goods into a particular country.

Canada is the only country that has both federal supply chain legislation (former Bill S-211, referred to as “The Supply Chains Act”) and an import ban on goods produced with forced labour currently in place.

Canada continues to work closely with the U.S., Mexico and other international partners on labour exploitation issues.

In discussions on these issues in multilateral fora including the United Nations (UN), the International Labour Organization (ILO), the Organization for Economic Co-operation and (OECD), and the G7, stakeholders encouraged ‘harmonized’ approaches and collaboration.

For several years in Canada, stakeholders and Parliamentarians from all parties have expressed significant concerns regarding forced labour in the supply chains of Canadian companies and of goods imported into the country.

Canada has been critiqued domestically and internationally, including by the United States, for not taking a stronger approach to import ban enforcement and other measures to address exploitation in global supply chains.

The Supply Chains Act (former Bill S-211 that is now law) is viewed by several stakeholders as a flawed and outdated legislation, with many calling for due diligence legislation that is consistent with the direction of more recent supply chain legislative frameworks in other jurisdictions.

There were five senate public and private members bills introduced on these issues in the last session of Parliament.

Parliamentarians from all parties have continued to express concerns regarding forced labour and goods imported into the country, as questions continue to arise during the current session of Parliament.

Forced labour import prohibition and other federal initiatives

The Canada Border Services Agency (CBSA) is responsible for the enforcement of the import prohibition. The CBSA works closely with Global Affairs Canada and the Labour Program of Employment and Social Development Canada as well as other federal and international partners, to identify goods that have been produced by forced labour to prevent their entry into Canada.

In late 2024, the then Minister of International Trade hosted a virtual public consultation on potential measures to strengthen the forced labour import ban, building upon past consultations the Labour Program held on exploitation in supply chains.

GAC and CBSA are working with other departments in considering means of strengthening the ban, as was committed to in past Federal Budgets.

Beyond supply chain legislation and the import ban, there are several other federal initiatives addressing global labour exploitation in which the Labour Program is involved, including:

the inclusion of provisions on forced labour and child labour in Canada’s free-trade agreements, as well as technical assistance projects in developing countries to help uphold obligations;

CUSMA technical-level meetings among labour, border, and trade officials in the U.S., Canada and Mexico to advance collaboration on forced labour research and enforcement; and

engagement on decent work, forced labour, labour exploitation in supply chains in the ILO and a variety of other international fora.

Public Safety Canada leads work on the National Anti-Trafficking Strategy; Global Affairs Canada launched an updated Responsible Business Conduct Strategy; and Public Services and Procurement Canada has established expectations for suppliers and subcontractors in federal procurement on upholding human rights.

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