On 17 February 2023, and pursuant to its obligations under the United States-Mexico-Canada Agreement (USMCA), Mexico’s Ministry of Economy published in the Federal Official Gazette the much-anticipated Administrative regulation that sets forth the goods which importation is subject to regulation by the Ministry of Labor and Social Welfare (Forced Labor Regulation), which prohibits the importation of goods produced with forced labor. Once Mexico’s Forced Labor Regulation becomes effective on 18 May 2023, all three members of the USMCA trade block, Mexico, Canada, and the United States, will have prohibitions and restrictions on the importation of goods made with forced labor.

Baker McKenzie’s Sanctions Blog published the alert titled Canada Imposes Additional Sanctions Against Russia: Prohibition on Steel and Aluminum Imports on 14 March 2023. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.

Join Baker McKenzie for a webinar on Forced labor developments in Mexico, Canada and the United States on Thursday, 23 March 2023 from 10:00 am – 11:00 am Central Time. In this webinar, the panelists will discuss Mexico’s implementation of the new Forced Labor Regulation, Canada’s implementation of supply chain transparency legislation, US forced labor enforcement trends, customs forced labor best practices and supply chain due diligence recommendations.

On 27 February 2023, Canada announced further amendments to the Special Economic Measures (Iran) Regulations in response to the “gross violations of human rights” by the Iranian regime. These amendments list an additional twelve individuals under Schedule 1 of the regulations and entered into force on 23 February 2023.

Baker McKenzie’s Sanctions Blog published the alert titled Canada Imposes Additional Sanctions Against Russia: 129 Individuals and 63 Entities Targeted on 28 February 2023. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.

On 16 February 2023, Canada announced amendments to the Special Economic Measures (Haiti) Regulations in response to “acts that threaten the peace, security, and stability of Haiti.” These amendments list an additional two individuals under the Schedule of the Regulations and took effect on 15 February 2023.

Throughout January and February 2023, Baker McKenzie’s Canadian international trade team is publishing a series of articles focusing on developing Canadian trade compliance issues. This article focuses on developments under Canada’s Free Trade Agreements.

Baker McKenzie’s Sanctions Blog published the alert titled Canada Sanctions Additional Russian Propagandists: 38 Individuals and 16 Entities Targeted on 6 February 2023. Read the article via the link here. Please also visit our Sanctions Blog for the most recent updates.

The Canada Border Services Agency announced anticipated annual updates to the Customs Tariff and its trade verification priorities. It has also announced the implementation date for CARM Release 2 and typical administrative and statutory trade remedy proceedings. In addition to these developments, it is possible that in 2023, Canada may implement its proposed amendments to the Valuation for Duty Regulations, continue to scrutinize the apparel industry, and apply enhanced scrutiny of imports and exports to determine whether goods were manufactured by forced or child labor or are at high risk for sanctions circumvention.

On 31 January 2023, Canada announced amendments to the Special Economic Measures (Burma) Regulations in response to the “ongoing repression of the people of Myanmar by the military”. These amendments list an additional six individuals under the Schedule of the Regulations, and include a new prohibition on the export, sale, supply or shipment of aviation fuel (wherever situated globally) destined for Myanmar or any person in Myanmar. These amendments took effect on 27 January 2023.