The Canada Border Services Agency is expecting "movement" on a bill that will prohibit goods from Xinjiang from entering Canada, Stephanie Briere, the director of commercial programs for the agency, said at a North Country Chamber of Commerce webinar on Feb. 29. S-204, first introduced in November 2021, would ban imports that were manufactured or produced wholly or in part in the Xinjiang Uyghur Autonomous Region of China.

EU member countries this week couldn't agree to new rules requiring companies to conduct specific due diligence on their supply chains to address various environmental and social concerns, including forced labor risks (see 2312150057) and 2202230073).

Mexican Economy Secretary Raquel Buenrostro said in Mexico this week that if the U.S. reimposes 25% tariffs on Mexican steel exports over alleged surges, Mexico will retaliate. Mexico's steel exports are only 2.5% of the U.S. market, and U.S. steel exports are 14% of the Mexican market, so the U.S. has more to lose if Section 232 tariffs on Mexican steel return, she said.

EU members last week postponed a vote on new rules that could require companies to conduct specific due diligence on their supply chains to address various environmental and social concerns, including forced labor risks.

China issued new export restrictions on four products this week, according to an unofficial translation of a Ministry of Commerce announcement. The four items are cell cloning and gene editing technology for human use, crop hybrid advantage utilization technology, "bulk material handling and transportation technology," and lidar systems.

The U.K. announced plans this week to put in place a carbon border adjustment mechanism, which could lead to new import taxes and due diligence requirements on aluminum, cement, ceramics, fertilizer, glass, hydrogen, iron, steel and other industrial sectors associated with high carbon emissions. The mechanism, which is expected to be implemented in 2027, came after a 12-week public comment period in which over 100 representatives from industry, non-governmental organizations, think tanks and academia gave input about the types of products that should be covered, how import taxes should be calculated, a timeline for implementation and more.

The Canadian Ombudsperson for Responsible Enterprise (CORE) recently opened an investigation on whether Guess? jeans or other products of Guess? Canada contain yarn, fabric or cotton made or grown with Uyghur forced labor.

The European Council and the European Parliament on Dec. 14 negotiated new rules that will make up its upcoming corporate sustainability due diligence directive, which will require companies to conduct specific due diligence on their supply chains to address various environmental and social concerns, including forced labor risks (see 2202230073). The “provisional” agreement still needs to be formally adopted by both the council and the parliament before it takes effect.

The proposed European Union forced labor trade ban waits to stop goods until after a government investigation finds the goods contain forced labor, in contrast to the U.S. approach, which automatically bans all imports that are suspected to be made with forced labor, without a separate investigation, trade lawyer John Foote said.

A spokesperson for China's Foreign Ministry criticized the report of the House Select Committee on Competition with the Chinese Communist Party (see 2312120004), released Dec. 12, saying "some in the US are attempting to politicize and weaponize trade and tech issues between China and the US. We firmly oppose this," according to a transcript provided in English of a regular press conference in Beijing on Dec. 13.