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Combatting Forced and Child Labour

From Reporting to Action: Canadian Government Signals Intent to Strengthen Supply Chain Regulation to Combat Forced and Child Labour

The Canadian government is making a bold move in the fight against forced labour by proposing new supply chain due diligence legislation. If enacted, this law would hold businesses and government entities accountable for addressing forced labour risks within their global supply chains. This proposed legislation reflects Canada’s growing commitment to protecting human rights and combating modern slavery in international trade.

Here’s what you need to know about this potential new law and its ability to reshape ethical practices in global commerce.

A New Supply Chain Due Diligence Regime

At the core of this proposal is a new supply chain due diligence regime that aims to replace the current reporting-only framework established under the Fighting Against Forced Labour and Child Labour in Supply Chains Act (2023). While the existing law mandates companies to disclose their efforts to address child labour and forced labor, the proposed legislation represents a significant advancement by emphasizing proactive due diligence over simply reporting.

Under the proposed legislation, businesses and government entities will be required to actively scrutinize their supply chains for violations of labour rights. This means moving beyond reporting on risks to implementing actionable steps to identify, prevent, and remediate these issues.

Labourers in a field

Creation of an Oversight Agency

To ensure compliance with these stricter requirements, the Canadian government has indicated plans to establish a dedicated oversight agency. This agency will help monitor how companies adhere to the due diligence obligations and play a crucial role in maintaining transparency and accountability. It’s a clear acknowledgment that combating forced labour requires an ongoing effort backed by strong institutional support.

Strengthening the Forced Labour Import Ban

A key highlight of this initiative is the strengthening of Canada’s forced labour import ban. While the Customs Tariff already prohibits the importation of goods produced with forced labour, enforcement has been limited. The proposed legislative amendments will shift the burden of proof, requiring importers to actively demonstrate that their supply chains are free from forced labour.

To bolster enforcement, the Canadian government has committed $25.1 million over the next two years to Global Affairs Canada and the Canada Border Services Agency. This significant investment underscores the government’s dedication to promoting ethical trade and ensuring compliance.

Canada Joins Global Efforts

This new legislation seeks to address findings such as those from Walk Free’s Global Slavery Index, which show that two-thirds of forced labour cases are linked directly to global supply chains. Products such as electronics, garments, gold, textiles, and sugarcane—goods that Canada imports extensively—contribute to this exploitation.

By introducing more stringent regulations and taking proactive steps to combat forced labour, Canada would position itself alongside nations like Germany and France, which have adopted similar supply chain due diligence laws in recent years.

Man moving red bricks

Protecting Vulnerable Workers

At its core, this proposed legislation reflects a commitment to protecting the world’s most vulnerable workers. Forced labour remains a global crisis, affecting millions of families and perpetuating devastating cycles of poverty.

If passed, the law would require companies to identify and address risks within their supply chains, ensuring their products are not connected to forced labour practices. This approach aims not only to safeguard workers but also to empower businesses to lead with integrity by embedding human rights protections into their operations.

The Broader Impact on Ethical Trade

Strengthened enforcement, proactive due diligence measures, and institutional oversight are essential components of this effort. The proposed legislation sends a strong message to businesses and governments globally—it’s possible to prioritize human dignity while maintaining competitive trade practices.

For Canada, this could be a defining moment. By leading the charge against modern slavery, the country has an opportunity to set an example for the international community, demonstrating that protecting human rights isn’t just a legal obligation—it’s a moral imperative.

Closing the Gaps

This shift from a reactive, reporting-focused framework to proactive, enforceable measures addresses a gap in Canada’s fight against forced labour. It’s a recognition that modern slavery thrives in environments where enforcement is weak, and accountability is lacking.

By holding importers and businesses accountable, Canada steps closer to ensuring the goods entering its borders are ethically produced. This is not just a win for vulnerable workers—it’s a win for Canadian consumers, businesses, and the country’s reputation on the global stage.

Man cutting pipe

Canada’s Opportunity to Lead

With this new supply chain due diligence law, Canada joins a growing movement of jurisdictions prioritizing ethical trade and human rights. It’s more than just legislation—it’s a clear commitment to addressing systemic issues in global trade systems.

This initiative positions Canada as a leader in the fight against modern slavery and sets a powerful example for businesses worldwide to follow. Whether you’re a supplier, a company owner, or simply a consumer, this legislation serves as a reminder that ethical trade isn’t just possible—it’s essential.

Shift Critical’s Modern Slavery Risk Assessment Tool

Did you know that Shift Critical has developed a cutting-edge modern slavery risk assessment tool designed specifically for the Canadian legislation and market? Powered by AI, our comprehensive solution enables businesses to proactively address child and forced labour risks within their supply chains.

With automated scoring and benchmarking, our tool identifies high-risk suppliers and helps establish corrective action plans. Gain full visibility into your supply chain, track improvements over time, and prepare for increasingly stringent regulations.

Want to learn more? Explore how our advanced dashboard processes vast amounts of data to detect forced and child labour risks in supply chains. Check out our blog: Discover Shift Critical’s Revolutionary Solution for Modern Slavery Act Compliance.