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Canada has taken a significant step towards preventing goods made with forced labour from entering its market, introducing a new draft law to strengthen its import ban and make it harder for products linked to worker exploitation to reach Canadian consumers.
The proposed legislation would replace the current prohibition under the Customs Tariff with a standalone legislative framework. It includes stronger enforcement measures and new supply chain tracing requirements for high-risk goods.
Government representatives have said the proposed reforms are the next step in strengthening Canada’s existing forced labour import ban rather than a response to the latest United States tariff threats.
The US has proposed an additional 10 per cent tariff on imported goods from countries, including Canada, which have forced labour import bans, while countries failing to impose and effectively enforce bans are facing a higher tariff of 12.5 per cent.
A number of governments around the world announced measures to tackle forced labour in global supply chains following this.
Prime Minister Mark Carney has acknowledged Canada’s existing laws have been “less effective” in enforcement. A government representative said the legislation will be “in line” with its trade partners, including Mexico, the US and Europe.
The proposed legislation introduces several significant reforms, including:
Forced labour import bans are one of the strongest tools governments have to address modern slavery in global supply chains. They are most effective when supported by transparency laws, corporate due diligence, international cooperation and strong enforcement.
Nearly two-thirds of all forced labour cases are linked to global supply chains, according to the latest Global Slavery Index.
Canada imports an estimated CAD27 billion worth of goods annually from sectors at risk of forced labour. Electronics represent more than half of those imports alongside large volumes of garments, textiles, gold, and sugarcane products.
Canada already prohibits the import of goods made with forced labour, but enforcement has been a challenge, with concerns products linked to forced labour are still entering the Canadian market.
The proposed legislation recognises how identifying high-risk goods and requiring greater supply chain transparency can help shift responsibility towards importers while giving authorities stronger tools to act.
The Canadian government will hold public consultations on the proposed legislation over the coming months, inviting businesses, civil society, and people with lived experience to help shape the final framework.
Governments are increasingly recognising the human and economic costs of forced labour, and stronger import controls can help ensure products made through exploitation do not undercut responsible businesses or reach consumers.