Canada advances forced labour rules with consultation reports

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Canada advances forced labour rules

Highlights

Government of Canada released two 'What We Heard' reports with broad stakeholder support for strengthening the import ban on goods produced by forced labour via Bill C-35.
Stakeholders back a risk-based, transparent framework and endorse mandatory supply chain due diligence requirements, though opinions diverge on granting victims civil liability claims in Canadian courts.
Consultation results signal potential for stricter compliance regimes impacting importers and companies with international supply chains, as Canada moves toward enhanced legislative oversight.

Consultation findings shape legislative next steps

As reported by Government of Canada, Foreign Affairs Minister Anita Anand and Jobs and Families Minister Patty Hajdu have released two What We Heard reports summarizing stakeholder feedback on measures to combat forced labour.

The consultations examine how to strengthen Canada’s existing import ban on goods produced by forced labour through Bill C-35, as well as whether new supply chain due diligence and civil liability measures should apply to certain entities. Input comes from labour associations, industry groups, civil society organizations, academics and businesses.

Feedback summarized in the report on Bill C-35 shows broad support for reinforcing Canada’s ability to block goods made with forced labour from entering the domestic market. Stakeholders call for a risk-based, transparent and predictable framework, with clear guidance for businesses, opportunities for recourse and alignment with international partners.

The separate report on possible due diligence and civil liability rules finds support for legislation that would require certain companies to identify, prevent and mitigate forced labour risks in international operations or supply chains, and to disclose how they address those risks. Views remain divided on whether victims of forced labour should be able to bring claims in Canadian courts against entities that fail to conduct adequate due diligence.

Trade compliance and business impact in Canada

The consultation results point to a compliance regime that could expand expectations for importers and companies with overseas supply chains. Businesses signal support for measures that target labour exploitation, but also stress the need for procedural fairness and rules that avoid overlap between any new due diligence law and the import ban framework.

For Canada, the initiative links human rights policy with trade enforcement and responsible business standards. The government says it is reviewing the feedback as it advances legislative and regulatory measures, indicating that the reports serve as a policy step toward stricter supply chain oversight rather than a final rulemaking decision.

Our earlier report on Canada’s bill to reduce regulatory red tape outlined Ottawa’s push to streamline federal requirements to support economic growth and competitiveness. It noted that the initiative could affect compliance costs, approval timelines and operating conditions across regulated sectors, with additional detail expected after the ministerial briefing.

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