Canada is dismantling a watchdog that investigated allegations of human rights abuses by Canadian companies operating abroad, after Prime Minister Mark Carney deemed the office ineffective since its establishment in 2019.
The move comes as Canada faces criticism from Donald Trump's administration over its “unacceptable” efforts to combat forced labor.
The Office of the Ombudsperson for Responsible Enterprise (Core) was created under former Prime Minister Justin Trudeau to investigate the use of forced labor in industries. At the time, much of the focus was on China's use of ethnic Uyghurs, which critics say constitutes forced labor. Despite years of public reports from human rights groups, Beijing denies these allegations.
In its six years of existence, Core conducted only five investigations, targeting three U.S. apparel companies with Canadian operations—Ralph Lauren, Nike and Levi Strauss—as well as two mining firms, GobiMin and Dynasty Gold Corp. All allegations involved forced labor in China's Xinjiang region. The agency also used a mediation mechanism after Hugo Boss was accused of using forced Uyghur labor. Core issued formal recommendations against just two companies.
As part of cost-cutting measures, Carney said the Liberal Party would review the functions of various federal government offices and cut those where resources are used inefficiently. “Part of government is to look at things and assess whether they work and try to improve them,” he said. He noted the decision to scrap the role was made “a few months ago.” He added that while Canada has formal laws to tackle the issue, including the Forced and Child Labour in Supply Chains Act, enforcement of these laws has been “poor.”
Despite the criticism, federal ministers once touted Core as a key part of Canada's efforts to combat human rights violations. During a spring trade mission to China, Canadian Finance Minister François-Philippe Champagne cited Core as a safeguard against forced labor in Chinese cars that might be sold in Canada in the future.
However, some lawmakers argued the watchdog needed resources, not elimination. Green Party Leader Elizabeth May said, “Core never had the independence or powers it needed to do its job properly. The Green Party has long called for strengthening this office so it can genuinely investigate abuses, collect evidence and deliver accountability. The solution to a flawed office cannot be simply to get rid of it altogether.”
The Liberal Party said Friday that new legislation would create a public list of products linked to forced labor in specific regions and require importers to prove that specified products from listed areas were not made through slavery. The move comes as the United States has criticized Canada—along with 80 other countries—over its ability to address forced labor in supply chains. The White House recently announced it would impose tariffs on Canada, citing weak enforcement of rules on goods made with forced labor. The Liberal Party said its new law would address issues raised by the Trump administration.
