SCARBOROUGH, ONT.—Whatever else one might say about United States President Donald J. Trump, he possesses a feral genius for identifying an opponent’s weak spot and exploiting it to advantage.

When he lost the so-called “emergency tariffs” case, he quickly seized upon forced labour as a new mechanism for applying pressure on trading partners. Not because he has any particular interest in eradicating forced labour, but because it serves as a useful tool in trade negotiations with more than 60 countries, including Canada.

Fortunately or unfortunately—depending on one’s perspective—Canada is bound by CUSMA, the agreement that governs trade in North America. A review of the agreement was scheduled for July 1. Trump has pointed to Article 23.6, which explicitly requires each party to prohibit the importation of goods produced, in whole or in part, by forced or compulsory labour.

This vulnerability has been evident for some time. We have been drawing attention to it since 2022. Trump has now seized upon the issue, arguing that Canada has not done enough to address forced labour in supply chains. Unfortunately, there is some truth to that allegation, which gives him a useful negotiating advantage.

Canada’s response has been to point to the Fighting Against Forced Labour and Child Labour in Supply Chains Act, a private member’s bill that received royal assent in May 2023, and is commonly referred to as Bill S-211. It represented the only significant new initiative in this area, as the measures that existed before CUSMA remained largely unchanged and were—in the view of many observers—inadequate.

Arguably, Bill S-211 reduced Canada’s vulnerability, but only marginally. There have now been three reporting cycles under the legislation, the latest ending on May 31 of this year. To date, however, no comprehensive government analysis has been undertaken, nor have any investigations been initiated, despite repeated requests.

The Americans have noticed.

Consequently, on June 12, the Government of Canada introduced Bill C-35. The legislation would allow the minister of foreign affairs to designate specific goods, producers, countries, or regions where there are “reasonable grounds to suspect” that forced labour is taking place.

The parliamentary secretary denied that the prospect of threatened U.S. tariffs was the principal reason for introducing the legislation. Assuming there is an element of good faith in the process, Bill S-211 and Bill C-35 could prove highly complementary and together form a best-in-class response to the scourge of forced labour in Canadian supply chains.

Bill S-211 is a largely untapped treasure trove of information. Properly analyzed, it could make the enforcement efforts of the Canada Border Services Agency (CBSA) significantly more effective. The legislation requires entities above a certain size threshold to file annual reports describing the measures they have taken to identify and address forced-labour risks in their supply chains.

For some organizations, the reporting process amounts to little more than an exercise in creative writing. For others, it has become a genuine catalyst for change. Still others simply ignore it. Regardless, each report is a public facing document approved by senior officers of the entity and carries the weight and authority of a formal disclosure to a regulatory body.

If Bill S-211 were properly utilized, it would serve as one of the first points of reference in any investigation initiated under Bill C-35. CBSA could begin by examining whether an importer had filed a report and, if so, whether the contents of that report were credible and consistent with the facts surrounding a shipment. A missing report, or one of questionable quality, could strengthen the evidentiary basis for detaining or examining goods entering Canada.

Bill C-35 would then provide CBSA with a broader and more flexible enforcement mandate. Whether that mandate is actually used remains to be seen. The government’s failure thus far to make meaningful use of Bill S-211 does not provide an encouraging precedent.

All this unfolds against the backdrop of Trump’s effort to gain negotiating leverage now that “emergency tariffs” are no longer available as a convenient instrument. One hopes that, once the negotiations conclude, there will be a genuine commitment to addressing the scourge of forced labour in global supply chains.

Otherwise, Canada risks ending up with best-in-class legislation and worst-in-class enforcement.

Useful if used. Useless if not.

It may be a little premature to send Trump a thank you card.

John McKay is the former Liberal Member of Parliament for Scarborough–Guildwood, Ont., and was the Canadian co-chair of the Canada-U.S. Inter-Parliamentary Group. He co-chaired the Permanent Joint Board on Defence for seven years. He was an MP for 27 years, from 1997 to 2025, and is now a senior associate at David Pratt & Associates.

The Hill Times