Prime Minister Mark Carney expressed his lack of surprise regarding the Trump administration’s decision to impose import tariffs on products believed to be manufactured using forced labor. A recent report issued by U.S. Trade Representative Jamieson Greer highlighted numerous countries, including Canada, for their inadequate enforcement measures concerning goods produced with forced labor.
The report accused Canada and a few other nations of not effectively enforcing import bans on such items. Consequently, the U.S. is suggesting a new 10% tariff on Canada and others, with exceptions for goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA), thereby exempting a significant portion of Canada’s exports to the U.S.
Carney informed reporters on Wednesday at Parliament Hill that the U.S.’s proposed tariffs were anticipated, as they had been in the works for some time. This latest round of tariffs follows previous levies that were annulled by the U.S. Supreme Court in February under the International Emergency Economic Powers Act (IEEPA).
Formerly, President Donald Trump had utilized the IEEPA law to impose tariffs on Canada and Mexico to combat a perceived influx of fentanyl. Subsequently, Trump implemented temporary tariffs utilizing Section 122 of the U.S. Trade Act, pending Congressional approval for an extension beyond the expiration date.
Greer initiated an investigation in March under Section 301 of the U.S. Trade Act of 1974 into forced labor practices, culminating in the release of the recent report. Several other countries are facing a higher tariff of 12.5% for their alleged failure to enforce importation bans on goods produced with forced labor, as outlined in the report.
Carney acknowledged concerns regarding the importation of goods manufactured using forced labor and mentioned plans for new enforcement rules to reinforce Canada’s regulatory framework. These proposed rules are expected to be presented in the upcoming weeks.
Greer’s report coincided with his meeting with Canada’s Minister responsible for Canada-U.S. trade, Dominic LeBlanc, in Washington. Following their meeting, LeBlanc expressed optimism about this year’s review of the CUSMA, emphasizing the necessity for Canada to collaborate with U.S. officials to prevent goods made with forced labor from entering the North American market.
The U.S. has previously criticized Canada for lax enforcement of import bans, citing instances of goods produced using forced labor infiltrating the Canadian market. The Canadian Ombudsperson for Responsible Enterprise (CORE) was established to address abuses by Canadian corporations abroad, including forced labor issues.
Opposition members have urged the government to take more decisive action on forced labor. Conservative foreign affairs critic Michael Chong labeled the U.S. tariffs as unjustified and called on the government to enhance efforts to combat forced labor issues. NDP MP Heather McPherson criticized the government’s inaction on forced labor concerns, emphasizing the need to prioritize human and labor rights.
It is essential for Canada to strengthen its measures against forced labor and work towards eradicating this unethical practice from global supply chains.
