International Trade

The House of Commons International Trade Committee met to study forced labour in Canadian supply chains, hearing from three legal experts appearing as individuals, as well as from the Minister of Industry, who testified on the government’s broader trade and industry strategy in the context of the CUSMA review and U.S. tariffs.

Sabrina Bandali, a partner and head of international trade and investment practice, testified that Canada’s current prohibition on importing goods made with forced or child labour, enforced through tariff classification, creates a strict liability regime that is impractical for importers. She noted that the Canada Border Services Agency (CBSA) does not disclose reasons for detaining shipments, leaving importers unable to focus their due diligence, and recommended that the government provide confidential disclosure to affected importers and issue clear guidance on compliance expectations.

Stephen Pike, a partner, provided context on the global scale of forced and child labour, citing ILO figures of 27.6 million people in forced labour and 138 million children in child labour. He highlighted that the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Bill S-211) is globally unique for including child labour in the import ban and requiring federal institutions to report, and noted that nearly 11,500 reports have been filed under it, which he views as a positive step.

Sean Stephenson, counsel, agreed with Bandali on the need for transparency and guidance from the CBSA, noting that the agency has not finalized its guidance on forced labour and that the Canadian Bar Association’s submissions to the task force went unanswered. He discussed Bill C-251, which would create a rebuttable presumption, and said it could be effective if paired with clear regulations and resources, but cautioned that it raises questions about obligations under sections 15 and 155 of the Customs Act for businesses that unknowingly possess goods made with forced labour.

During the meeting, the Minister of Industry outlined a three-pillar plan to protect jobs, create jobs, and attract talent and investment in response to U.S. tariffs on steel, aluminum, autos, and lumber. She announced that the government is serving Stellantis with a notice of default under its contracts, following the company’s decision to move production, and stated that the cultural exemption and supply management will be defended in CUSMA negotiations. In response to questions, she said the Buy Canadian policy will be implemented incrementally in early 2026, and that the government is providing support to the softwood lumber sector through the Business Development Bank of Canada.

The committee adjourned after a motion was tabled by Simon-Pierre Savard-Tremblay, deploring the government’s lack of legislative commitment to combating forced labour in supply chains and urging action, with a vote deferred.