Canada has introduced new legislation to tighten its restrictions on the import of goods made with forced labour. This move comes in response to growing scrutiny from the United States regarding the effectiveness of Canada’s current enforcement measures. The proposed law aims to improve oversight of supply chains and strengthen border controls to ensure products linked to labour exploitation do not enter the Canadian market.

This initiative follows a recent report from the United States Trade Representative (USTR), which criticized Canada’s enforcement record and recommended trade measures against the country. The report raised concerns about forced labour imports, supply chain transparency, human rights compliance, import regulations, and international trade enforcement, arguing that Canada has not effectively enforced its existing ban on goods made with forced labour.

Response to U.S. Criticism

The proposed legislation comes after the USTR report identified Canada as one of several trading partners that have not properly enforced restrictions on products linked to forced labour. Consequently, the report suggested implementing a 10% duty on Canadian imports into the United States.

According to the USTR, Canada's current enforcement efforts are much weaker than those of the United States. Although Canada introduced a forced labour import ban in 2020 under commitments made through the Canada-United States-Mexico Agreement (CUSMA), the report noted that enforcement actions have remained limited.

Data from the report revealed that Canadian authorities intercepted just 50 shipments suspected of being linked to forced labour over a six-year period, allowing entry to only two shipments. In comparison, U.S. Customs and Border Protection blocked over 6,000 shipments in 2024 alone due to concerns about forced labour practices.

Strengthening Supply Chain Oversight

Under the proposed legislation, the Canadian government would gain new powers to identify and publish a list of high-risk goods. These products could be tagged based on specific regions, companies, organizations, or individuals suspected of using forced labour in production.

Importers dealing with products marked as high risk would need to provide detailed supply chain tracing information. The government stated that these reporting requirements aim to improve transparency and help authorities better determine whether goods entering the country are linked to labour exploitation.

Officials believe that stronger tracing rules will help close existing enforcement gaps and increase Canada’s ability to identify problematic imports before they reach the market.

New Presumption Against High-Risk Goods

A central aspect of the legislation is the introduction of a “deeming provision.” This mechanism declares that goods identified as high risk would be automatically considered prohibited from entering Canada unless importers provide proof of compliance with labour standards.

This provision shifts a larger burden of proof onto importers, requiring them to verify and document the origins of their products before they can enter the country. The government claims that such measures will enhance border enforcement and discourage businesses from sourcing products from suppliers associated with forced labour.

The legislation would also set up a cost-recovery framework. Importers found to have brought goods made with forced labour into Canada might be responsible for costs related to investigations, inspections, and enforcement actions.

Aligning with Global Human Rights Standards

The Canadian government stated that the proposed reforms aim to enhance the country’s alignment with international efforts to combat forced labour and protect human rights in global supply chains. Authorities emphasized that the legislation reflects increasing expectations from governments and consumers for better accountability and transparency in international trade.

Canadian Minister of Foreign Affairs Anita Anand said the new measures would offer stronger tools to keep products linked to forced labour out of Canada while helping maintain confidence in supply chains and trade systems.

She noted that the legislation reinforces Canada’s commitment to human rights and fair trade by improving enforcement capabilities at the border. Anand added that the measures would support vulnerable workers and contribute to global efforts to eliminate forced labour from commerce.

If approved by Parliament, this legislation would represent one of the most significant changes to Canada’s forced labour import rules since the original ban was introduced in 2020. It could revise compliance requirements for importers and bolster the country's trade enforcement system.