International Trade Committee on Nov. 27th, 2025

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

Welcome to meeting number 16 of the Standing Committee on International Trade.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, September 18, the committee is resuming a study of Canadian supply chains, forced labour and related imports.

We have with us today, from the Canada Border Services Agency, Alexander Lawton, executive director, commercial programs directorate; and Graeme Hamilton, director general, traveller, commercial and trade policy directorate. From the Department of Foreign Affairs, Trade and Development, we have David Hutchison, director general, trade strategy bureau. From the Department of Public Safety and Emergency Preparedness, we have Jennifer Esdaile, director, community safety, corrections and criminal justice.

Welcome to all of you. Thank you very much for making the time to be with us today on what the committee members consider a very important issue.

We welcome your opening remarks.

Mr. Hutchison, we invite you to make opening remarks of up to five minutes, please.

[David Hutchison, Director General, Trade Strategy Bureau, Department of Foreign Affairs, Trade and Development]

Madam Chair, thank you for the opportunity to address the committee.

I appeared before this committee previously this fall, but I'd like to take this opportunity to share the scope of my work and the bureau I lead.

The trade strategy bureau at Global Affairs Canada has been leading the development of the trade diversification strategy, including standing up a new strategic export office. We are also leading the development of a defence export strategy. As part of that, I am the chief negotiator for Canadian participation in the EU SAFE instrument.

We support the Minister of International Trade and the governance of Export Development Canada and the Canadian Commercial Corporation. We are the departmental lead on responsible business conduct and provide the chair and secretariat for Canada's national contact point for responsible business conduct. We also provide a support function to the work of the CORE. I would note that the structure and focus of the CORE are currently under review.

In general, our work is meant to support Canada's trade commissioner service in its mission to help Canadian exporters succeed in international markets.

Canada's trade commissioner service, or TCS, is a network of trade professionals in more than 160 cities around the world. The trade commissioner service helps Canadian exporters prepare for international markets, assess market potential, connect with qualified contacts and resolve business problems abroad. The TCS also administers programs such as CanExport SMEs.

Last year, the TCS served more than 11,000 Canadian clients, 93% being small and medium-sized businesses.

Currently, my office's top priority is advancing Canada's trade diversification strategy. Expanding trade opportunities and diversifying trade partners are essential for Canada to achieve resilient growth and ensure its autonomy in the years ahead.

I should point out that Canada's reputation as a leader in ethical business represents a key competitive advantage. Responsible business practices also help Canadian businesses successfully navigate a more diverse range of international markets.

In support of the government's goal of doubling non-U.S. exports, responsible business conduct is a central part of the TCS's commitment to its clients.

Responsible business conduct is about companies having a positive impact where they operate, and taking steps to avoid and minimize adverse impacts linked to their operations. Responsible business practices help companies mitigate risk, gain insight into their supply chains and build trust with stakeholders. This makes them more resilient and successful enterprises overall. Responsible conduct is therefore not only the right choice, it is the smart choice.

Our bureau gives trade commissioners the training and resources they need to inform Canadian exporters about key considerations for doing business responsibly in their target markets. We see this as an integral part of our mandate to provide Canadian exporters of goods and services with the information they need to manage risk and ultimately succeed in new markets.

A pillar of our approach to responsible business conduct is the OECD guidelines for multinational enterprises. They are the most widely recognized comprehensive set of international principles for responsible business conduct. The guidelines represent a shared set of recommendations by 52 governments to multinational enterprises on key issues such as human rights, the environment and labour standards. Common international expectations and guidelines create the predictability and coherence that enables effective implementation of responsible business practices across borders, while also fostering a more level playing field for Canadian businesses.

Canada and other adherents each have a national contact point, or NCP, for responsible business conduct, to promote the OECD guidelines. It's important to note that NCPs offer an opportunity for dialogue through mediation, to help submitters and companies resolve issues related to non-observance of the guidelines.

Canada needs to expand and diversify its trade. That is why responsible business conduct represents a competitive advantage for Canadian exporters. Responsible business practices are an essential part of Canada's trade diversification success.

With this is mind, Global Affairs Canada is committed to helping clients of the trade commissioner service implement strong responsible business practices and to supporting Canada's national contact point in promoting implementation of the OECD guidelines.

I welcome the committee's questions.

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Hutchison.

We will start with Mr. Mantle, please, for six minutes.

[Jacob Mantle, Conservative, York—Durham, ON]

Thank you, Madam Chair, and thank you to our witnesses for joining us today.

To begin, I'm going to focus my questions with respect to Canada's import ban on goods produced in whole or in part by forced labour. I leave it to you to decide who is best placed to respond to those questions.

First, in April of this year, U.S. Customs and Border Protection issued a withhold release order against Taepyung Salt Farm, which is located in South Korea, on reasonable suspicion that forced labour was used in the production of the goods, sea and salt products.

Can you confirm whether such products are in Canada right now?

[Graeme Hamilton, Director General, Traveller, Commercial and Trade Policy Directorate, Canada Border Services Agency]

I'm sorry. I'm unable to confirm whether or not those products are in Canada. I don't have that information in front of me right now.

We're happy to take that question back and provide you with any information we do have after the session.

[Jacob Mantle, Conservative, York—Durham, ON]

Thank you.

In May of this year, U.S. Customs and Border Protection issued a withhold release order against Zhen Fa 7, a Chinese-flagged vessel, and will detain all seafood harvested by that vessel, again on reasonable suspicion that the vessel uses forced labour to harvest that seafood.

Can you confirm whether that seafood has entered Canada?

[Graeme Hamilton]

Again, Madam, Chair, I am unable to confirm details of the questions that are being asked. We are aware of the 54 withhold and release orders that have been issued by CBP and that are in effect.

I can perhaps provide a little bit of information in terms of what CBSA is doing with respect to enforcement and engagement with importers into Canada, if that's of interest to the committee.

[Jacob Mantle, Conservative, York—Durham, ON]

I will get to those questions as well, but this is the last one for you, from this year.

On September 24, U.S. Customs and Border Protection issued a withhold release against Giant Manufacturing Co. with respect to bicycles, bicycle parts and accessories. Can you confirm whether Giant bicycles are available for sale in Canada?

[Graeme Hamilton]

Again, Madam Chair, I'm not in a position to be able to comment on the specific details of the question.

I would be happy to take those three questions away and endeavour to provide information back to the committee after the meeting.

[Jacob Mantle, Conservative, York—Durham, ON]

Thank you. I look forward to that information.

You're aware that Giant Manufacturing Co. is the largest bicycle producer in the world. Their bicycles are widely available in Canada. There are two stores in Ottawa and multiple stores in the GTA.

Do you know if those bicycles were made with forced labour?

[Graeme Hamilton]

Again, Madam Chair, I am aware of Giant bicycles and the stores that are in Ottawa. I am not in a position to comment on the specifics related to imports that may or may not have come into Canada from that manufacturer and whether or not those were produced in whole or in part using forced labour.

[Jacob Mantle, Conservative, York—Durham, ON]

I guess it's a little concerning to me, as a member of Parliament, that we have public declarations from U.S. Customs and Border Protection about products that are, in their opinion, under reasonable suspicion of being produced by forced labour. Some of those products are clearly available in Canada. Bicycles are probably the most obvious example. If I'm wrong, you can correct me.

How can we trust that this is a priority for the CBSA if, on even the most simple products that have been widely reported on, we have no answer from the CBSA on whether they have investigated them, considered them or taken any steps to ensure that those products are not being sold to Canadians?

[Graeme Hamilton]

If it's of interest to the committee, Madam Chair, I'm happy to outline some of the efforts CBSA is undertaking on a daily basis with respect to targeting goods entering the Canadian economy that are under suspicion of being produced using forced labour. I can outline some of the enforcement action and some of the proactive engagements we've had with industry who have imported goods that we believe have a reasonable suspicion of potentially being produced using forced labour.

If that's of interest, I'm happy to provide that testimony.

[Jacob Mantle, Conservative, York—Durham, ON]

You mentioned the standard of reasonable suspicion. Is that the CBSA's legal standard for whether they will interdict goods?

[Graeme Hamilton]

The customs tariff uses the standard of balance of probabilities. In terms of our authority to examine goods under the Customs Act, it's a no-threshold authority for us to examine goods entering Canada.

I could perhaps turn to my colleague Alex Lawton on that. He could provide more details from an operational perspective in terms of some of the work we're doing and the standards that are used, if that's of interest to the committee.

[Jacob Mantle, Conservative, York—Durham, ON]

If you have more details on the specific standard, I'd like to know about that. It seems unclear to me what the standard is that the CBSA applies to determine whether a shipment should be flagged as high risk. Then it's unclear to me what the CBSA standard is for issuing a redetermination of tariff classification under section 59 of the Customs Act.

[Alexander Lawton, Executive Director, Commercial Programs Directorate, Canada Border Services Agency]

I'll start with the final question. The standard for issuing a redetermination, or to determine that the goods essentially have been made with forced labour, is the balance of probabilities.

In terms of actually detaining the goods, the balance of probabilities does not come into that. It's essentially based on high-risk imports. What is high risk? It comes down to knowing who the entities are who are importing or exporting the goods within that supply chain and knowing the potential of those entities for having forced labour within each company within that supply chain. Based on that, if we have the research available to indicate that there is at least a suspicion, a high risk of suspicion, of forced labour, we can make the detention and request additional information from the importer or the person or entity bringing in the goods.

Based on that additional information, as well as the information we already have, we make a decision on the balance of probabilities whether the goods were made with forced labour.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Fonseca, you have six minutes, please.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Thank you, Madam Chair.

My questions are open to all the witnesses, whoever may best answer.

This somewhat follows up on what MP Mantle was speaking about. How does the CBSA currently identify shipments that may involve forced labour risk? What information gaps limit reliable detection at the border? Do you see gaps at the border? How can you close those gaps?

[Graeme Hamilton]

Madam Chair, I would say there's a lot of operational co-operation going on with partners on forced labour regimes. That includes regular conversations with the U.S. to learn how they have implemented their forced labour ban over the course of almost the last 100 years, and increasingly under the construct of trilateral discussions related to CUSMA exchanges with the Mexican counterparts as well in terms of technical co-operation and information sharing around goods being imported into the North American economy that might be suspected of being produced with forced labour.

There is also risking taking place through our CBSA systems to look at entities of concern and importers that may be bringing those goods into Canada. Data, obviously, is important in these types of investigations and this type of targeting. We need to know where goods are being produced to be able to appropriately target them and to be able to intervene at a port of entry in order to undertake the enforcement action that Mr. Lawton walked us through earlier.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Thank you.

Since 2020, how many shipments have been detained under the forced labour import ban? In which sectors do you see the highest risk?

[Graeme Hamilton]

I'm not an operational person within CBSA. I will turn to my colleague, Alex, who manages the program which does that type of operational engagement.

[Alexander Lawton]

Yes, since that time, there have been 48 detentions of individual shipments. Generally, those shipments have been in garments, textiles, automotive parts, solar panels and, more recently, gloves and drones.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Thank you for that.

Did we hear bicycles? Is that another one?

[Alexander Lawton]

To date, there has not yet been a detention of bicycles, no.