HIGHLIGHTS

Canada’s Bill C-35: A New Era in Forced Labour Enforcement or Trade Pressure in Disguise?

Introduction

Global supply chains have increasingly come under scrutiny for links to forced labour, prompting governments to strengthen import controls. Against this backdrop, Canada has introduced Bill C-35, a landmark proposal aimed at overhauling its forced-labour import regime.

Introduced in Parliament on 12 June 2026, the Bill seeks to shift Canada from a largely reactive enforcement model to a proactive, intelligence-driven system. The move comes amid growing domestic criticism of weak enforcement and renewed pressure from the United States, which has threatened additional tariffs on countries perceived as failing to combat forced labour effectively.

If enacted, Bill C-35 could significantly reshape import compliance obligations and redefine Canada’s role in the global fight against modern slavery.

The Existing Legal Framework: Why Reform Was Needed

Canada’s prohibition on forced-labour imports is not new. In 2020, the country amended its Customs Tariff pursuant to obligations under the Canada–United States–Mexico Agreement (CUSMA), prohibiting the importation of goods produced wholly or partly by forced labour.

This framework was further strengthened through the Fighting Against Forced Labour and Child Labour in Supply Chains Act (Bill S-211), which received Royal Assent on 11 May 2023 and entered into force on 1 January 2024. The legislation requires certain entities to publicly report on measures taken to identify and prevent forced labour in their supply chains.

Yet, despite these legal measures, enforcement has remained limited. Between 2020 and 2026, Canadian authorities intercepted approximately 50 shipments suspected of involving forced labour, but only two shipments were ultimately denied entry.

This enforcement gap has fuelled criticism that Canada’s laws exist largely on paper rather than in practice.

Why Bill C-35 Matters

Bill C-35 represents a fundamental shift from disclosure-based compliance to direct import enforcement.

Unlike previous measures embedded within customs legislation, the Bill creates a stand-alone statutory framework dedicated exclusively to forced-labour imports. This reflects an emerging international trend toward stronger supply-chain accountability.

The timing of the Bill is particularly significant. The administration of US President Donald Trump has proposed an additional 10% tariff on imports from countries, including Canada, over concerns regarding weak forced-labour enforcement.

Although Canadian officials maintain that reform was planned before US pressure intensified, the geopolitical context cannot be ignored.

Key Features of Bill C-35

1. Creation of a Dedicated Forced-Labour Import Regime

Bill C-35 establishes an independent legal framework separate from the Customs Tariff, signalling Canada's intention to treat forced-labour imports as a distinct area of regulation.

2. Public High-Risk List

The Minister of Foreign Affairs would be empowered to publish a list identifying:

• High-risk goods;
• Geographic regions; and
• Entities or individuals suspected of using forced labour.

The threshold is based on “reasonable grounds to suspect”, allowing authorities to act before definitive proof emerges.

3. Reverse Onus: The Burden Shifts to Importers

Perhaps the Bill’s most transformative feature is the reversal of the burden of proof.

Where goods appear on the high-risk list, importers must demonstrate that their products were not produced through forced labour. Failure to provide sufficient evidence results in the goods being automatically deemed prohibited.

This marks a departure from the current model, under which enforcement agencies bear the evidentiary burden.

4. Enhanced Supply-Chain Transparency

Importers of high-risk goods would be required to provide extensive tracing information to the Canada Border Services Agency (CBSA), enabling deeper scrutiny of supply chains.

5. Expanded Detention Powers

Customs officials would gain authority to detain suspect goods for up to 90 days, with regulations potentially permitting longer periods of detention.

This extended timeline addresses a major obstacle in investigating complex international supply chains.

6. Inter-Agency Coordination and Cost Recovery

The Bill promotes information-sharing among federal agencies, including the CBSA, Global Affairs Canada, and the Royal Canadian Mounted Police.

Additionally, importers found in violation may be required to bear the costs of detention and investigation.

7. Criminal Liability

Bill C-35 creates an offence punishable on summary conviction with fines of up to CAD 100,000. Prosecutions would require the written consent of the Attorney General of Canada.

The Legal Significance of the Reverse Onus Provision

The reverse onus mechanism represents one of the most consequential aspects of the Bill.

Traditionally, regulatory authorities bear the burden of proving non-compliance. Bill C-35 reverses this presumption for listed goods, effectively requiring businesses to establish the legitimacy of their supply chains.

While proponents argue that this approach is necessary to combat hidden labour abuses, critics may question whether it creates undue compliance burdens or raises procedural fairness concerns.

Nevertheless, similar models have emerged globally, particularly in jurisdictions increasingly prioritising human rights due diligence.

Trade Policy or Human Rights Protection?

A central debate surrounding Bill C-35 concerns its motivation.

Supporters view the legislation as a long-overdue response to systemic enforcement failures and an important step toward protecting vulnerable workers.

Critics, however, argue that the Bill may be driven as much by trade considerations as by human rights concerns. Labour organisations have cautioned against using forced-labour enforcement as a pretext for economic protectionism or trade wars.

The tension illustrates a broader challenge in international trade law: balancing economic interests with the protection of fundamental human rights.

Limitations and Criticisms

Despite its ambitious scope, Bill C-35 has several limitations:

• It remains at first reading and may still be amended or defeated.
• The maximum penalty of CAD 100,000 may be insufficient to deter large multinational corporations.
• The Bill does not specifically identify high-risk regions such as Xinjiang, instead relying on future ministerial determinations.
• Critics have questioned the government’s decision to abolish the Canadian Ombudsperson for Responsible Enterprise, an office designed to investigate corporate misconduct abroad.

These concerns suggest that legislative reform alone may not guarantee effective enforcement.

Global Implications

Forced labour generates an estimated USD 236 billion in illegal profits annually, according to the International Labour Organisation (ILO).

Canada’s proposed reforms align with a growing international movement. The European Union is developing similar legislation, while North American partners already maintain import restrictions on goods produced with forced labour.

Bill C-35, therefore, reflects not only domestic priorities but also an evolving global consensus that businesses must ensure ethical supply chains.

Conclusion

Bill C-35 marks a potentially transformative moment in Canadian trade and human rights law. By shifting the burden onto importers, expanding detention powers, and introducing targeted enforcement mechanisms, the Bill seeks to close longstanding gaps in Canada’s forced-labour regime.

Yet its ultimate success will depend not merely on legislative ambition but on effective implementation. As Parliament prepares to examine the proposal in the coming months, one question remains paramount:

Can Canada move from symbolic commitments against forced labour to meaningful enforcement—or will Bill C-35 become another well-intentioned law with limited practical impact?

Reference

• Canadian Press via CBC News
• Official Government of Canada Press Release-Global Affairs Canada
• Legal Analysis (JURIST – Law News)-Dipak Patel
• Canadian Labour Congress (Union Reaction)
• International Perspective (Radio Canada International – RCI)
• Toronto Star (Major Canadian Daily)