Canada tightens forced-labour import rules, targets supply chain accountability
Synopsis
Canada is set to move beyond its 2020 forced-labour import ban with Bill C-35, which could create a public list of suspect goods, require importers to prove clean supply chains, and — most controversially — allow labour exploitation victims to sue Canadian companies in domestic courts. The proposals signal a significant escalation in trade-linked human rights enforcement.
Key Takeaways
Canada released two consultation reports on 9 October 2026 proposing stricter forced-labour import controls.
Bill C-35 , introduced in Parliament in June , would create a public list of goods suspected of being made through forced labour.
Importers of listed goods could be required to prove their products are free from labour exploitation or face an import ban.
A separate proposal would allow victims to seek damages in Canadian courts against companies with inadequate due diligence.
Canada has banned forced-labour imports since July 2020 under its Customs Tariff law and CUSMA commitments.
The government will review consultation feedback — received from 27 July to 21 August — before finalising the legislation.
Canada is moving towards significantly stricter controls on imported goods suspected of being produced through forced labour, with new proposals that could require importers to demonstrate their products are free from labour exploitation. The Canadian government released two consultation reports on Thursday, 9 October 2026, outlining measures to strengthen its existing import ban and introduce broader corporate accountability obligations across international supply chains.
Key Proposals on the Table
At the heart of the new framework is Bill C-35, introduced in Parliament in June, which would authorise the government to establish a public list of goods suspected of being produced wholly or partly through forced labour. The list could identify specific goods, their producers, and the countries or regions of manufacture.
Importers of listed products could be required to submit evidence demonstrating that their goods carry no link to forced labour. Failure to provide the required documentation could result in those goods being barred from entering Canada. The proposed legislation would also strengthen information-sharing among government departments and establish additional penalties for non-compliant importers.
What the Ministers Said
Foreign Minister Anita Anand and Jobs and Families Minister Patty Hajdu said the consultation reports would shape upcoming legislation and regulations. Anand stated: 'Our trade must reflect our values. Canada is committed to ensuring that our supply chains reflect the values we stand for: fairness, accountability and respect for human dignity.'
Hajdu added: 'No one should profit from the exploitation of workers. As Canada diversifies trade and strengthens supply chains, respect for human rights must remain at the centre of those efforts.'
Corporate Due Diligence and Legal Liability
A separate consultation examined whether Canadian businesses operating internationally should be legally required to identify, prevent, and address forced-labour risks throughout their global operations. One contentious proposal would allow victims of labour exploitation to seek damages in Canadian courts against companies found to have conducted inadequate due diligence — a move that critics in the business community may view as significant legal exposure.
Stakeholders who participated in the consultations broadly supported stronger enforcement but called for a transparent and predictable system that would permit businesses to challenge decisions and respond to allegations. Participants also urged closer alignment with international trading partners to avoid inconsistent compliance requirements across markets.
Background: Canada's Existing Import Ban
Canada has prohibited imports produced wholly or partly through forced labour since July 2020 under its Customs Tariff legislation, reflecting commitments made under the Canada-United States-Mexico Agreement (CUSMA). The current proposals represent a material escalation of that framework, adding transparency obligations, a public goods list, and potential civil liability mechanisms that go beyond the original ban.
The consultations ran from 27 July to 21 August and drew submissions from businesses, labour organisations, civil society groups, and academics. The government said it would review all feedback before deciding how to proceed with the proposed legislative and regulatory measures.
Implications for International Exporters
While the government has not identified India or any other country as a specific target in the latest announcement, the proposals carry clear implications for international exporters supplying Canadian businesses. Companies operating in sectors historically flagged for supply chain risks — including textiles, electronics, and agriculture — could face new compliance burdens if the legislation advances. This comes amid a broader global trend of supply chain due diligence laws, with the European Union and United States having enacted or proposed similar frameworks in recent years.
Point of View
Not an incremental update. The most consequential element is the proposed right for exploitation victims to sue Canadian companies in domestic courts — a provision that, if enacted, would expose multinationals to a category of legal risk few have priced in. The alignment push with trading partners is sensible on paper, but given the divergence between US, EU, and Canadian approaches, the practical compliance burden on exporters could multiply rather than simplify. For Indian exporters in particular — especially in textiles and electronics — this is a regulatory signal worth tracking closely, even though no country has been named.
NationPress
10 Oct 2026
Frequently Asked Questions
What is Bill C-35 and what does it propose?
Bill C-35 is Canadian legislation introduced in Parliament in June 2026 that would authorise the government to publish a list of goods suspected of being produced through forced labour, naming the goods, producers, and countries of origin. Importers of listed goods could be required to prove their supply chains are free from labour exploitation, with non-compliance potentially resulting in an import ban.
When did Canada first ban forced-labour imports?
Canada has prohibited imports produced wholly or partly through forced labour since July 2020 under its Customs Tariff legislation, as part of commitments made under the Canada-United States-Mexico Agreement (CUSMA). The new proposals build significantly on that existing framework.
How could the new rules affect international exporters, including those from India?
Although the Canadian government has not named India or any other country as a specific target, international exporters supplying Canadian businesses could face new documentation and compliance requirements if their goods appear on the proposed list. Sectors with historically scrutinised supply chains — such as textiles, electronics, and agriculture — face the greatest exposure.
What is the controversial due diligence liability proposal?
One proposal under the separate consultation would allow victims of labour exploitation to seek damages in Canadian courts against companies that failed to conduct adequate due diligence over their international supply chains. Business groups are expected to raise concerns about the legal exposure this creates.
What happens next with these proposals?
The Canadian government will review feedback from consultations that ran from 27 July to 21 August 2026, drawing submissions from businesses, labour organisations, civil society groups, and academics, before deciding how to proceed with the proposed legislative and regulatory measures. No fixed timeline for final legislation has been announced.
