In a much overlooked but certain to be impactful provision of the United States-Mexico-Canada Agreement (USMCA), which came into force on July 1, 2020, Canada agreed to impose a prohibition on the importation of goods that are produced in whole or in part by forced or compulsory labour.
According to a World Vison Canada report, each year, more than $34 billion of products are imported into Canada that may have been made by child or forced labour. Canada has now taken the first important step to combat this issue, in compliance with the USMCA requirement.
The news: Canada's customs tariff amended
On July 1, 2020, amendments to Canada's Customs Tariff and the Schedule to the Customs Tariff took effect, officially prohibiting from importation into Canada goods that are mined, manufactured or produced wholly or in part by forced labour.
"Forced labour" is commonly defined to be all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered herself or himself voluntarily. "Wholly or in part" would reasonably include the presence of forced labour anywhere in a supply chain.
Canada now joins the United States, the United Kingdom, Australia and many other of its other trading partners that have already taken legislative and regulatory steps to combat modern slavery...
This was excerpted from a 21 August 2020 article by Stephen A. Pike, Partner - Toronto, Gowling WLG.