Ottawa: The US addressed the issue of China’s systemic repression in Xinjiang, where Uyghur and other groups face forced labour, among other human rights abuses, with the Uyghur Forced Labor Prevention Act (UFLPA).
On September 24, US lawmakers sent a diplomatic “warning shot” in the form of a letter to ministers responsible for trade in Canada, Mexico, and the US. The letter, authored by US lawmakers from the Congressional-Executive Commission on China (CECC), holds Canada and Mexico accountable for their lack of enforcement of provisions that bar forced, slave, and child labour products from entering North American supply chains.
Congressman Chris Smith (New Jersey) and Senator Jeff Merkley (Oregon), who jointly chair the CECC, strike a tone of cooperation and goodwill among partners. However, beneath these diplomatic overtures lies a clear message to Mexico and Canada: America will no longer tolerate being undermined by its allies, who have thus far prioritized appeasement over action regarding trade with China. The Canadian Border Services Agency, for example, has inspected just 50 shipments and has yet to block a single one from Xinjiang, a region notorious for producing goods—such as solar panels, cotton, tomatoes, and electronics—using forced and child labour.
“We write to lend support to efforts to continue robust implementation of Article 23.6 of the United-States-Mexico-Canada (USMCA) trade agreement, which prohibits ‘… the importation of goods produced in whole or in part by forced or compulsory labour’ between our three nations.”
The letter, addressed to Canada’s Minister of Export Promotion, International Trade, and Economic Development, Mary Ng, raises critical questions about the future of North American trade relations—particularly regarding forced labour concerns linked to Xinjiang. It calls for greater cooperation under Article 23.6 of the USMCA to combat the importation of goods produced through forced labour.
The backdrop to this letter is China’s systemic repression in Xinjiang, where Uyghur and other groups face forced labour, among other human rights abuses. The US addressed this issue with the Uyghur Forced Labor Prevention Act (UFLPA), which operates under a “rebuttable presumption” that requires importers to prove that goods from Xinjiang or linked to labour transfer programs are free of forced labour. This proactive stance has positioned the US as a global leader in preventing such goods from entering supply chains.
Canada has also taken steps, passing Bill S-211 in May 2023. Introduced by Liberal MP John McKay and co-sponsored by Senator Julie Miville-Dechêne, this legislation enacts the Fighting Against Forced Labour and Child Labour in Supply Chains Act. While initially met with resistance on its implementation date and thanks to Minister of Public Safety, Dominic LeBlanc and McKay pushed back against Liberal caucus members, including some Ministers who were trying to delay the legislation going into effect by a whole year. They prevailed and the original start date of January 1, 2024, was maintained, with the first filings were due May 31.
The outcome was phenomenal, with around 6,000 companies submitting reports by the deadline. The bad news is 40% admit their supply chains are tainted with forced labour or child labour, which has not yet been made public.
Minister Ng was due to table this report in September, but with the Foreign Interference Commission hearings grabbing headlines with a clear focus on PRC election interference, perhaps she felt that inflaming the Dragon, was not a good idea.
It’s worth noting that Bill S-211 is voluntary. Imagine what percentage of companies would admit to knowingly importing forced labour products if all were required to file. However, with such a high number admitting to their supply chain being tainted by forced labour, it is a prescient call for action, and US lawmakers’ actions highlight the need to act.
HOW DID WE REACH THIS POINT?
Over a year ago, MP John McKay met with Senator Merkley in Washington to express concerns his concern about his country’s inaction regarding forced labour products emanating from China’s Xinjiang region or East Turkestan. Media reports followed, signalling that the US might push its partners harder. In March, The Globe and Mail published an article by Steven Chase and Robert Fife titled “US urges Canada to work together to curtail imports of forced-labour goods from China,” followed by a CBC report by Alex Panetta in June. Panetta interviewed Senator Merkley, who made it clear that US frustration with Canada’s lack of enforcement could soon lead to further action.
The letter implies that the UFLPA’s model should be adopted throughout North America and, in my view, across the globe. The European Union is currently drafting similar legislation. The letter also highlights the troubling issue of goods blocked from entering the US under the UFLPA finding their way into Canadian or Mexican markets, only to be re-exported to the US One example involved solar panels that were denied entry into the US, later imported into Canada, and then attempted to be re-exported back into the US
THE HEAT IS ON
The Americans are pushing for harmonizing forced labour policies across North America to prevent blocked goods in one country from finding their way into another. This poses a challenge for Canadian businesses, who have voluntary guidelines and no real guardrails on what if any, penalties will be faced if they allow the flow of products tainted by forced and child labour. What is needed now is for the Liberal government under Trudeau to enact strict legislation that aligns with the UFLPA, providing clear guidance to Canadian businesses and empowering the Canadian Border Services Agency to intercept and block shipments of tainted goods.
As of June 2024, US Customs and Border Protection (CBP) has reviewed more than 9,000 shipments valued at over $3.4 billion under the UFLPA’s rebuttable presumption clause. Only by adopting similar tools can Canada hope to stop the inflow of forced labour goods and pressure China to change its practices.
The communication from US lawmakers should be seen as a clear signal of American intent. Canada must comply with its obligations under the USMCA. The 2026 review is just around the corner, providing lawmakers in Canada and Mexico with the opportunity to correct their priorities to protect one of the most successful trade agreements in history.It’s clear we need to get this right for the sake of the millions who suffer under the CCP’s labour practices.
THE PATH FORWARD
It’s time for Canada, Mexico, and the global community to confront the reality of forced labour head-on. We owe it to the Uyghurs and all other oppressed peoples under forced labour conditions and to our workers here in Canada, some of whom have lost jobs due to China’s opaque labour practices. As 2026 approaches, let’s work together to uphold human rights and ensure long-term economic security regardless of which party holds power. Failing to act may imperil our future economic and national security as protectionist US lawmakers move towards using our lack of compliance to upend the USMCA agreement. Canada and the world need to get behind the spirit and strength of the Uyghur Forced Labour Prevention Act and stand for human and labour rights around the globe.
Dean Baxendale is a Publisher, CEO of the China Democracy Fund and co-author of the upcoming book, Canada Under Siege.