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Customs Tariff

Bill to Amend--Second Reading--Debate Continued

May 10, 2022


Hon. Julie Miville-Dechêne

I am speaking today about Bill S-204, An Act to amend the Customs Tariff regarding goods from Xinjiang.

This bill is sponsored by Senator Housakos, and I am the critic. I volunteered because Senator Housakos and I both spoke in this chamber, at about the same time early in the session, about the issue of forced labour and the all-too-common human rights violations. A total of 25 million people are victims of forced labour around the world. We share this grave concern, but we have chosen different ways to respond.

Through Bill S-211, I have proposed a broad, step-by-step approach to combatting modern slavery by requiring companies doing business in Canada to report on the risks of forced labour and child labour in their supply chains. Bill S-211 does not target any particular region of the world, although we know that forced labour and child labour is particularly prevalent in Africa and Asia. That said, no country on the continent is completely free of it, and we have had disturbing cases of forced labour in Canada, notably in agriculture and hospitality, and even among undocumented personal support workers working in Quebec during the pandemic.

Senator Housakos chose a much narrower and more draconian approach. His bill would prohibit the importation of goods manufactured in whole or in part in the Xinjiang region of China.

I agree with my colleague that the human rights violations against Uighurs are extremely serious. These violations have been labelled as “genocide” by the Canadian House of Commons and the British House of Commons, as well as by the European Parliament, the U.S. Secretary of State and U.S. President Joe Biden. I agree with that assessment.

In fact, the treatment of the Muslim Uighur minority by the authoritarian Chinese regime should worry every citizen in the world who believes in human rights. As Joanna Chiu writes in her excellent book China Unbound: A New World Disorder:

If its treatment of Uyghurs is any indication, China is willing to criminalize religious practices . . . torture and harass camp inmates, sexually abuse detainees, and illegally harass Uyghurs around the world. But the international community has been slow to respond to the growing humanitarian crisis, raising the troubling question of what the CCP might get away with in the future.

In addition to assimilation and detention camps, there is ample evidence that many Uighurs are forced into labour. The situation is difficult to quantify, as reporters and experts on these issues are prevented from entering facilities in Xinjiang. We must therefore rely on other sources to get a sense of scale.

According to a report by Australian Strategic Policy Institute, more than 80,000 Uighurs were transferred out of the Xinjiang region between 2017 and 2019 to work in Chinese factories. Despite China’s claim that their work is voluntary, abundant evidence shows that their freedom of movement is very limited and that they are under constant extreme surveillance, with their families threatened and at risk of being detained.

Some major, well-known brands have been suspected of being connected to supply chains that use forced Uighur labour. The list of suspected products includes cotton, tomatoes, tomato products and polysilicon. These products have a high risk of being tainted by forced labour in the Xinjiang region. This region produces nearly half of all polysilicon, a material used to manufacture solar panels, and nearly 20% of the world’s cotton.

Unfortunately, as Canadian consumers, we all contribute to this exploitation. Cotton clothing labelled “made in China” is found in all of our stores, and this cotton is highly likely to have been harvested in Xinjiang, where more than a half a million Uighurs are reportedly being forced to work. Major brands like Uniqlo, Walmart, Zara and Sports Experts remain silent when asked to account for their actions.

CBC’s Marketplace uncovered some more alarming news about tomatoes and tomato products that are very likely to be found on our grocery store shelves. Consumers cannot make informed decisions about the tomato products they buy in grocery stores. Well-known brands like Nestlé, Del Monte and Unilever are buying tomatoes from Xinjiang and processing them in a third country, like Pakistan, the Philippines or India, before reselling them.

Other situations around the world are just as appalling, such as children working in open-pit mines or on cocoa or sugar cane plantations, but the fact is that these forms of exploitation are not systematically organized by states. Governments may be often passive or complicit with regard to these situations, but the exploitation of the Uighurs was clearly orchestrated by Chinese authorities.

That is why Senator Housakos introduced his initiative in a very short bill that boils down to one sentence:

 . . . the importation of goods manufactured or produced wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China is prohibited.

This bill was born of a frustration I share, because our own border officers are not enforcing the existing legislation, which already prohibits goods made by forced labour from entering Canada from any country in the world.

This amendment to our Customs Tariff Act arises from the Canada-United States-Mexico free trade agreement, which has been in force for 22 months now. To date, Canada has seized one single, solitary, shipment of clothing from China suspected of being made by forced labour. By comparison, the United States has intercepted over 1,300 suspect shipments from China within that same time period.

According to the experts consulted by The Globe and Mail, Canada has not invested sufficient funding or made enough of an effort to enforce this law, nor has it put enough effort into gathering intelligence to make seizures.

Where Bill S-204 differs from the current law is that it does not propose seizing shipments that simply might contain goods produced using forced labour, but rather all shipments originating from one region, Xinjiang, assuming from the outset that these goods are likely to be the result of forced labour.

It is true that it is very difficult for border officers to distinguish between the two. There is no visible evidence that goods have been produced by forced labour. If the bill passes, it will also be important to ensure that companies, Chinese or otherwise, do not circumvent the law by routing their products through other intermediate countries.

What is interesting about Bill S-204 is that the importer has no way to prove that the seized shipment is not the product of forced labour.

However, on the face of it, such a ban seems contrary to World Trade Organisation rules, which prohibit discrimination and quantitative restrictions.

We could always justify the existence of Bill S-204 by invoking Article XX of the General Agreement on Tariffs and Trade, which allows for exceptions necessary to protect human life or health or public morals, for example, or relating to the products of prison labour.

Bill S-204 would completely ban all products from Xinjiang, so it could be difficult to invoke any exceptions. In this case, it would be up to Canada to prove to the WTO that the ban does not constitute a means of arbitrary or unjustifiable discrimination.

Only one country so far has acted in a way that reflects what Bill S-204 is proposing. In the United States, the Uyghur Forced Labor Prevention Act passed unanimously in the Senate, and the law will be in force at the U.S. border starting in June. The U.S. law includes a presumption that all goods manufactured in whole or in part in the Xinjiang region are inadmissible. The law also states that businesses located elsewhere in China could be blacklisted if they profit from the forced labour of Uighurs. However, unlike Bill S-204, U.S. importers can rebut this presumption by providing clear and convincing evidence demonstrating that their factories and those of their suppliers do not use forced labour. If Bill S-204 included similar relief, it would no doubt be more likely to be deemed compliant with WTO rules.

The U.S. bill generated heated debate between multinationals that rely on China for their supplies, legislators who want the United States to take a firmer stance on defending human rights, and those who are primarily concerned about supply chain disruptions and inflation. Fortunately, defenders of justice and human dignity won the day, for once, against defenders of commercial competitiveness and low prices at all costs.

Human Rights Watch supports the U.S. legislation and considers it to be a powerful new tool for combatting forced labour. The NGO recommends that there be serious consequences for companies that cannot provide transparent information about their supply chains and forced labour in China.

Other countries are looking for measures they can implement at their borders to fight modern slavery.

In Australia, a Senate bill introduced in 2020 sought to prohibit the importation of all goods produced in Xinjiang, similar to Bill S-204. There was no consensus for this Australian bill because it targeted only one region in the world. A new version presently being studied would prohibit the entry into Australia of any goods produced with forced labour, no matter where they come from.

In late April, the British government adopted an amendment to eradicate forced labour from National Health Service supply chains.

In conclusion, I am of the opinion that Bill S-204 should be referred to a committee that can study and amend it, if required, to prevent it from clashing with our international trade commitments.

However, I would add that, at the same time, we should also reflect on the weight we want to give social and environmental considerations in our trade agreements. For decades — and even today — the economic imperatives of growth, competitiveness and low prices have often outweighed issues of human dignity and sustainable development. Ecological and ethical considerations, which of course include the revolting human rights violations in China, should never be partisan or ideological issues. We must therefore find effective ways to fight for progress. We must not remain passive. Thank you.

Hon. Leo Housakos [ - ]

Thank you for your speech. I’m quite open to the idea of sending this bill to a committee like the Standing Senate Committee on Foreign Affairs and International Trade. I am open to finding a solution to this terrible situation. As you so eloquently said in your speech, the situation in Xinjiang demands draconian measures, and it was sad to see that this chamber chose not to recognize the existence of a genocide in Xinjiang last year. Even worse, it is sad to see that our government will not recognize that fact.

Do you agree that now is the time to act as quickly as possible, as a country and as a government?

Hon. Julie Miville-Dechêne

Clearly, that is not really the goal of your bill, Senator Housakos, but, yes, I am one of those who believe that our foreign policy should respond to human rights violations, whether in China or elsewhere. I do not believe in targeting a country purely because of its regime, but I do believe in intervening when it comes to serious issues like human rights violations.

I am one of the Quebec women who supported the mission in Afghanistan. That debate sharply divided Quebec. Many pacifists said no, but I said yes. We had to intervene on behalf of Afghan women. In general, I am someone who advocates for intervention and, given all that we know about the abuses suffered by the Uighurs, we must speak out, especially now that our two hostages are no longer in China. Of course, there are also Canadian interests. I know this is a sensitive issue, but I am one of those citizens who wants Canada to speak out strongly against China.

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