Xinjiang Manufactured Goods Importation Prohibition Act

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At second reading in the Senate

S-204
November 24, 2021 (3 years ago)
Canadian Federal
Leo Housakos
Senate
Third reading
0 Votes
Full Title: An Act to amend the Customs Tariff (goods from Xinjiang)
Foreign Affairs
Trade and Commerce
Social Issues

Summary

The Xinjiang Manufactured Goods Importation Prohibition Act seeks to ban the import of goods produced in the Xinjiang Uyghur Autonomous Region of China due to concerns over human rights violations against the Uyghur population. This proposed law aims to promote ethical consumerism and pressure the Chinese government to improve its practices.

What it means for you

Groups that may be impacted include consumers, particularly those who frequently purchase goods made in Xinjiang, as they may face higher prices or limited availability of certain products. Businesses that currently rely on importing from this region might have to find alternative sources, which could affect their supply chains and profitability. Additionally, this measure could provoke reactions from other countries, potentially affecting international relations and trade dynamics.

Expenses

The ban may lead to increased costs for businesses that need to shift their supply chains, which could subsequently raise prices for consumers. The government may incur expenses related to enforcement and monitoring to ensure compliance with the prohibition. Overall, there could be unintended costs associated with reduced trade relations and possible retaliation from China, which could further impact both the economy and consumers.

Proponents view

Supporters of the bill argue that it demonstrates a strong commitment to human rights and ethical trade, aligning the nation with international standards. They believe that this prohibition can motivate Chinese authorities to change their practices and put pressure on companies to avoid sourcing from exploitative regions. Proponents also view it as a step toward fostering fair labor rights globally, potentially leading to more ethical consumer choices.

Opponents view

Critics of the bill warn that it may harm economic interests, disrupt supply chains, and increase consumer prices due to the limited availability of goods. They are concerned about the potential for escalating trade tensions, which could damage diplomatic relations and provoke retaliatory measures from China. Moreover, detractors point out that this could lead to a slippery slope of imposing trade restrictions based on subjective human rights interpretations, making international trade more complex and unpredictable.

Original Bill