Canada Halts Imports From Glove Maker Supermax Over Labour Concerns - InvestingChannel

Canada Halts Imports From Glove Maker Supermax Over Labour Concerns

The federal government in Ottawa has paused imports from Malaysian glove maker Supermax over concerns about forced labour at the company.

Canada’s move comes weeks after the U.S. barred the firm over allegations the company uses forced labour. Malaysian factories making everything from medical gloves to palm oil have increasingly come under scrutiny over allegations they abuse foreign workers, who form a significant part of the manufacturing workforce in that country.

After the U.S. suspended Supermax imports last month, Canada’s Public Services and Procurement department said it was holding Supermax deliveries as it awaits a report expected mid-month from Supermax Healthcare Canada.

The U.S. Customs and Border Protection issued a “Withhold Release Order” on October 21 that prohibits imports from Supermax based on reasonable information that indicates the use of forced labour in its manufacturing operations.

Supermax has said it is in contact with the U.S. agency to obtain more clarity and that it had commissioned an independent consulting firm to conduct an audit into the status of foreign workers at its factories.

Ottawa says it will determine its next steps after reviewing the report from Supermax’s Canadian unit.