Prime Minister Mark Carney and the Liberal government of Canada announced Wednesday they will reexamine legislation to ban imports made with forced labour.
The move comes as Canada seeks to avoid significant economic penalties from its largest trading partner. The United States is targeting countries that do not sufficiently curb the trade of goods produced through forced labour, placing Canada's export economy at risk.
Washington has proposed new tariffs on imports from countries deemed to have inadequate forced-labour protections. Reports on the specific rate vary, with some sources citing an additional 10% tariff [1], while others indicate the rate could reach up to 12.5% [2].
Ottawa is now moving to strengthen its legal framework to align with these U.S. requirements. This legislative review aims to ensure that Canadian imports are not complicit in forced-labour practices, which would provide a legal shield against the proposed U.S. trade penalties.
Canada is not the only nation facing scrutiny. The U.S. is currently investigating 60 countries regarding their imports of forced-labour goods [3]. The investigation is led by the U.S. Trade Representative, who said trade access will be tied to human rights compliance in supply chains.
By introducing more stringent legislation, the Carney government intends to demonstrate a commitment to ethical trade. This shift represents a reactive approach to U.S. trade policy, prioritizing the removal of tariffs to maintain the flow of goods across the border.
“Canada will reexamine legislation to ban imports made with forced labour.”
This policy shift indicates that U.S. trade leverage is driving Canadian domestic law regarding human rights. By aligning its forced-labour import bans with U.S. standards, Canada is attempting to maintain its preferential trade status and avoid a costly tariff regime that could destabilize its export-heavy economy.
