Government’s Fall Economic Statement addresses several supply chain issues

The Canadian government addressed several measures impacting the country’s supply chain in its 2024 Fall Economic Statement, including efforts to eradicate forced labour from Canada’s supply chains, promote friendshoring and restrict trade with countries it says harm the nation.

As part of its effort to eliminate forced labour from Canadian supply chains, the government will require businesses to scrutinize their international supply chains for risks to fundamental labour rights and take action to resolve these risks. It will also strengthen Canada’s ban on imports of goods produced by forced labour.

World Vision Canada, which works with children, families and communities to overcome poverty and injustice, said it welcomes the government’s goal of addressing child labour in Canadian supply chains.

“When we welcomed the passing of the Fighting Against Forced Labour and Child Labour in Supply Chains Act in March 2023, we signaled that the legislation did not mark the end of Canada’s efforts on these issues,” said Michael Messenger, president and CEO of World Vision Canada. “Through the Fall Economic Statement, the government is taking some important next steps.”

Mary Ng, minister of export promotion, international trade and economic development, also voiced her approval.

“Building on our commitment in Budget 2024 to eradicate forced labour from Canadian supply chains, the 2024 Fall Economic Statement announces our government’s intent to introduce legislation to create a new regime for supply chain due diligence,” said Ng. “This will require government entities and businesses to scrutinize their international supply chains for risks to fundamental labour rights and take action to resolve these risks. A new oversight agency will be created to ensure ongoing compliance.

“We are also strengthening Canada’s ban on imports of goods produced with forced labour by introducing legislative amendments that increase the onus on importers to demonstrate their supply chains are free of forced labour. To implement these new measures, our government will provide $25.1 million over two years to Global Affairs Canada and the Canada Border Services Agency.”

The government also said in the Fall Economic Statement that it would examine friendshoring Canadian supply chains to protect the country’s national economic interests. It pointed to the imposed 100 per cent tariff on Chinese electric vehicles and 25 per cent tariff on Chinese steel and aluminum products as examples. The federal government says it will add further tariffs to combat “unfair Chinese trade practices,” including on imports of certain solar products and critical minerals.

In addition, the government plans to restrict trade with countries it says harm Canada by proposing legislative amendments to allow restrictions on the importation or exportation of specific items.

The government also intends to strengthen nuclear fuel and critical mineral supply chains to support growing demand.