Ottawa Initiates Public Consultation on Forced Labour
The Canadian capital, Ottawa, has initiated a public consultation on new strategies to limit the importation of goods produced through forced labour. This initiative has been launched in response to the growing scrutiny of China's use of forced labour, particularly involving persecuted groups.
Public Consultation Announcement
On October 16, International Trade Minister Mary Ng announced the public consultation. The objective of this initiative is to bolster the enforcement of the prohibition on importing goods made through forced labour. This move is in line with the Canada-United States-Mexico Agreement (CUSMA) and actions taken by allied nations.
During the consultation, the government will be seeking public feedback on enhancing the enforcement of the import ban. The proposed measures include creating a list of items that are potentially produced through forced labour, based on the International Labour Organization (ILO) guidelines. The government has also suggested a "minimum traceability" process, which would require importers to provide additional information about the origins of their products.
Changes to Cost Handling
The proposed changes could also impact how costs are managed. Importers of goods found to be produced through forced labour would be responsible for all costs associated with detention, removal, abandonment, and forfeiture. This would encompass transportation, storage, and disposal fees.
According to an ILO report on modern slavery, Ottawa highlighted that an estimated 27.6 million people were subjected to forced labour globally in 2021. This is an increase of 3 million since 2016. Children make up about 12 percent of those affected, totalling 3.3 million.
Forced Labour in China
The announcement comes at a time when forced labour in China is under intense scrutiny.
In the previous month, four U.S. lawmakers urged Minister Ng and American and Mexican CUSMA trade representatives to strengthen the enforcement of bans on forced labour goods from China. These lawmakers have been strong advocates of the Uyghur Forced Labor Prevention Act, which aims to combat China’s “widespread and systemic use “ of forced labour to exploit Uyghurs and other Turkic Muslims in the Xinjiang region.
The lawmakers called for further action from CUSMA members to prevent the import of goods produced with forced labour into North America. They expressed their frustration over a shipment of solar panels, which was initially denied entry into the United States due to forced labour concerns, but later imported into Canada and then attempted to be re-exported to the United States.
Canada's Response to Forced Labour
Since 2021, the Canada Border Services Agency (CBSA) has intercepted and assessed around 50 shipments of goods suspected of being associated with forced labour. Six shipments were monitored for export out of the Canadian market, and one was abandoned by the importer at the border. The remaining shipments were allowed entry following a review of supply chain information provided by importers.
CBSA spokesperson Luke Reimer stated on Sept. 26 that the Canadian government expects companies to ensure that their supply chains comply with Canadian law. It is the responsibility of the importer to exercise due diligence to ensure forced labour is not directly or indirectly used in the production of the goods it imports.
Canadian Legislation on Forced Labour
Canada has enforced an import ban on goods produced by forced labour since an amendment to the Customs Tariff Act took effect on July 1, 2020. The following year, it also initiated an analysis of supply chain risks related to forced labour in China.
In January, a law aimed at combating forced labour and child labour in supply chains was enacted. This law, formerly known as Bill S-211, requires the head of every government institution involved in producing, purchasing, or distributing goods in Canada or elsewhere to submit an annual report to the minister of public safety by May 31 each year.
Bottom Line
The ongoing scrutiny of forced labour, particularly in China, has led to a global call for action. With Ottawa's recent public consultation, it is clear that the issue is being taken seriously. The proposed measures aim to strengthen the enforcement of import bans on goods produced through forced labour, but will they be enough to curb this global issue? What are your thoughts on this matter? Share this article with your friends and let's discuss. Don't forget to sign up for the Daily Briefing, available every day at 6pm.
