UK, Canada Announce Trade Restrictions in Response to Human Rights Violations in Xinjiang

The United Kingdom and Canada announced a range of measures to restrict trade with China’s Xinjiang region over allegations of human rights violations committed against Uighurs and other ethnic minorities. The measures include export controls, restrictions on certain imports produced by forced labor in the region and penalties for companies that violate the measures. Both countries also issued business advisories for companies operating in the region, warning them about compliance risks and exposure to penalties.

As part of the measures, the U.K. will begin an “urgent review” of export controls “as they apply specifically geographically to the situation in Xinjiang,” Foreign Secretary Dominic Raab said Jan. 12. The U.K. will tighten controls to “prevent the export of any goods that could directly or indirectly contribute to human rights violations in that region.”

Canada said it will deny export permits if there is “substantial risk” the exports could be used for human rights violations. It will also give “particular scrutiny” to goods destined to Xinjiang, including exports of advanced technologies and services “that could be misused or diverted towards government surveillance,” Canada said Jan. 12.

Canada also said it will strongly enforce its prohibition on imports produced from forced labor, including goods originating in or transferred from Xinjiang. Companies sourcing directly or indirectly from Xinjiang, or from entities relying on Uighur labor, will have to sign a declaration and receive a “briefing about the risks of doing business in this market.” The declaration will acknowledge that the company is aware of the human rights risks in the region and the transaction “abides by all relevant Canadian and International laws.” Companies will also be required to affirm that they are not knowingly sourcing products from a supplier implicated in forced labor violations, Canada said, as well as to commit to conducting due diligence on their Chinese customers.

Canada also issued a Xinjiang business advisory, outlining compliance and due diligence expectations for Canadian companies, similar to guidance issued by the U.S. in July (see 2007010040). The guidance also details Canada’s export control system, which it called “one of the strongest” in the world. Canada said it will evaluate export permit applications on a case-by-case basis.

The U.K. will strengthen its Modern Slavery Act to introduce fines for businesses that do not comply with the act’s transparency obligations, Raab said. He also said the government will provide guidance to U.K. agencies to “exclude suppliers” when there is “sufficient evidence” of human rights violations in their supply chains. “Any company profiting from forced labour will be barred from government procurement in this country,” Raab said.

Raab said the package of measures will ensure that no British companies or agencies are contributing to violations in Xinjiang. “Today’s measures will make sure businesses are fully aware of those risks, it will help them to protect themselves, but it will also shine a light and penalize any reckless businesses that don’t take those obligations seriously,” he said.

Francois-Philippe Champagne, minister of foreign affairs, said Canada is “deeply concerned” about Chinese activities in Xinjiang and will ensure it is “not complicit in the abuse.” China’s U.S. embassy didn’t comment.