Watchdog Probes Ralph Lauren Canada Over Uyghur Forced Labour in China
The Canadian Ombudsperson for Responsible Enterprise (CORE), a watchdog created by the federal government to investigate corporate wrongdoing abroad, has announced an investigation into Ralph Lauren Canada. This comes in response to complaints filed by a coalition of human rights groups last year, alleging that the company is selling products made with Uyghur forced labor in China. This marks the third investigation initiated by CORE since its establishment in March 2021, with Nike Canada and Dynasty Gold being the previous targets.
The human rights groups filed the complaints against 14 Canadian companies, primarily subsidiaries of large U.S. firms, accusing them of using forced labor in the production of their products in China. CORE is expected to reach a decision on the remaining complaints in the upcoming weeks. Earlier this week, the watchdog announced its decision not to investigate Canadian mining company GobiMin, as the company had sold its Xinjiang subsidiary in 2022.
China’s Xinjiang region, known for producing one-fifth of the world’s cotton, has been under scrutiny for human rights violations against the predominantly Muslim Uyghur population and other minority groups. Numerous reports from media, researchers, and rights groups have documented these violations, leading to allegations of widespread use of forced labor by Chinese authorities. In 2022, the United Nations high commissioner for human rights, Michele Bachelet, released a critical report stating that China had committed serious human rights violations against the Uyghur Muslims, potentially amounting to crimes against humanity.
Mehmet Tohti, executive director of the Uyghur Rights Advocacy Project, expressed the importance of Canada’s handling of these investigations. This marks the first time, to his knowledge, that a government-affiliated body anywhere in the world has decided to investigate Nike and Ralph Lauren over alleged ties to forced labor in China. Tohti emphasized the need for Canadian companies, the Canadian government, and the Canadian Border Services Agency to conduct due diligence, educate themselves and their customers on their supply chains, and be held accountable for human rights violations.
The complainants alleged that Ralph Lauren had supply relationships with eight companies involved in forced labor in China. However, CORE decided to focus its investigation on two specific companies, Youngor Textile Holdings Co. Ltd. and Jiangsu Guotai Guosheng, as there was more information linking them to Ralph Lauren Canada. CORE’s ombudsperson, Sheri Meyerhoffer, clarified that her jurisdiction only extends to Canadian companies.
CORE expressed the seriousness of the allegations, stating that they raise concerns about potential abuse of the international human right to be free from forced labor. Closing the investigation without conducting a thorough probe would prevent CORE from fulfilling its mandate of promoting respect for human rights and preventing abuses. Ralph Lauren Canada confirmed its past business relationship with a subsidiary of Esquel, a company identified by the Australian Strategic Policy think tank as using or benefitting from Uyghur forced labor. Ralph Lauren claimed to have ceased placing orders with Esquel in December 2020, although shipments continued until August 2021.
The issue of forced labor in supply chains extends beyond Ralph Lauren and Nike. The Global Slavery Index estimated that over $18.5 billion worth of goods imported annually into Canada are at risk of being produced with forced labor. Despite Canada’s commitment to intercept such imports, no products made with forced labor have been seized by the Canada Border Services Agency since the Customs Tariff Act was amended in 2020. In contrast, the United States has implemented a reverse-onus rule, shifting the responsibility onto those shipping goods from Xinjiang to prove that they are not produced with coerced labor.
As the investigations into Ralph Lauren Canada, Nike Canada, and Dynasty Gold proceed, the world is watching Canada’s approach in holding companies accountable for human rights violations in their supply chains. The outcome of these investigations will be significant in determining the role of Canadian corporations in addressing forced labor issues and promoting responsible business practices globally.
