Canada is on the brink of implementing a transformative measure to combat forced labour and human trafficking within global supply chains. The federal government has proposed a supply chain due diligence law that goes beyond the existing reporting requirements. If enacted, this law will hold businesses and government agencies accountable for identifying and addressing risks related to labour rights violations, including forced labour and exploitation, in their supply chains.
This ambitious move comes against a backdrop of alarming statistics: Canada imports an estimated 27 billion CAD worth of high-risk goods annually. These goods—ranging from textiles to electronics—are often produced in regions where labour exploitation, including forced labour and child trafficking, is prevalent. By enacting a supply chain due diligence law, Canada aims to take a leading role in curbing these abuses and setting a global precedent for ethical trade practices.
What the Proposed Law Entails
Under the new law, businesses and government entities would be required to:
- Conduct thorough assessments of their supply chains to identify potential labour rights violations.
- Implement measures to mitigate these risks and prevent human rights abuses.
- Ensure transparency by publicly disclosing their findings and actions.
This shift marks a significant departure from the existing legislation, which only requires businesses to report on what steps they are taking, without enforcing concrete action or accountability.
The Scope of the Problem: High-Risk Goods
Canada’s reliance on imported goods makes it a critical player in addressing global forced labour. High-risk products, such as clothing, electronics, cocoa, and seafood, often originate from countries with documented cases of human trafficking and exploitation. For instance:
- Textile production in certain regions is notorious for employing trafficked workers under inhumane conditions.
- Electronics manufacturing frequently involves forced labour in mining operations to extract rare earth minerals.
- Agriculture and seafood industries often exploit vulnerable workers, including migrants and children.
Without intervention, Canadian consumers unknowingly contribute to these violations by purchasing such products.
Why This Law Matters
- Addressing Human Trafficking: Forced labour is a modern form of human trafficking, and tackling it at the supply chain level is one of the most effective ways to reduce demand for exploited workers. By requiring businesses to take active steps to address labour rights violations, Canada is directly targeting the economic drivers of trafficking.
- Global Leadership: Canada’s proposed law sets a high standard for international trade. It aligns with the global push for corporate social responsibility and sustainable business practices, similar to legislation in the European Union, such as the German Supply Chain Act.
- Consumer Awareness and Ethical Trade: The law will empower Canadian consumers to make informed choices by increasing transparency. Knowing which companies are compliant with the new regulations will allow consumers to support ethical businesses, creating a ripple effect across industries.
- Economic Benefits: While the initial cost of compliance might seem burdensome for businesses, in the long run, the law promotes stable, ethical supply chains that reduce reputational risks and build trust with consumers and investors.
A Step Toward Ending Forced Labour
The proposed legislation is not just about compliance; it’s about fostering a culture of responsibility and humanity. For Canada, this is an opportunity to reduce its reliance on high-risk goods and contribute meaningfully to the global fight against exploitation. The law underscores the country’s commitment to protecting human rights and combating trafficking, setting a powerful example for other nations to follow.
As the legislation progresses, Canadian businesses and consumers alike will play a pivotal role in driving change. With transparency and accountability at its core, this law has the potential to reshape global supply chains and, ultimately, reduce the prevalence of forced labour worldwide.
By addressing the root causes of trafficking and exploitation, Canada is taking a bold and necessary step toward a more just and equitable world.