CANADA Trends and Developments Contributed by: Claudia Feldkamp and Chris Pigott, Fasken
Outlook Internationally, the increase in business and human rights-related regulation has led to a period of “blow back” , owing to perceived risks to the competitiveness of businesses that are navigating uncertain trading and geoeconomic forces. Still, belief in the imperatives of sustain - ability and enduring international commitments to business and human rights remains strong in Canada and globally. It is unlikely that the con - crete, intersecting business and human rights- related initiatives currently in play in Canada, the EU and elsewhere will be abandoned. International trading pressures may possibly also serve as a driver of human rights due dili - gence, even if there is some loss of momentum in the near term with regard to legislative ini - tiatives requiring mandatory human rights due diligence. The anticipated increase in enforce - ment of Canada’s import ban on goods from forced and child labour will require businesses to more proactively manage their exposure to human rights due diligence investigations and compliance.
The CORE post is now vacant while the Cana - dian government completes a review of the CORE’s mandate. The results of this review are anticipated in 2025 and will provide stakehold - ers with a better sense of the Canadian govern - ment’s approach to non-judicial remedy going forward. State-based judicial remedy The right to an effective remedy for victims of human rights abuses is a fundamental human right that is enshrined in core human rights trea - ties ratified by Canada. In this context, there has been an ongoing question as to the role of Canadian courts in considering judicially corpo - rate civil liability claims related to human rights abuses committed outside Canada by foreign actors, including the foreign subsidiaries of Canadian companies. Canadian courts have opened the door to such claims and these decisions – albeit preliminary decisions with a low bar for proceeding to trial – have changed the landscape of potential lia - bility for Canadian companies with operations overseas. These cases have also highlighted the importance of taking seriously the corporate obligation to respect human rights as delineated and operationalised by the UNGPs. It remains to be seen the extent to which Canadian courts are willing to extend corporate liability to inter - national business activities.
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