2024 Fall Economic Statement (FES) Summary

It's useful to understand what was included in the Dec. 16, 2024, Fall Economic Statement (FES), which led to the resignation of the Finance Minister, Chrystia Freeland, and eventually the resignation of Prime Minister Trudeau. 

Because  Parliament was prorogued until March 2025, the Fall Economic Statement (FES) tabled on Dec. 16, 2024, did not move forward.  At the same time, it is useful to highlight a few of the measures included in the FES, which may be included in future legislation.  

As of May 2025, the government's plan is to table a proper Budget in the fall of 2025, and some of the proposed measures included in the FES may be included.

As a point of reference, the FES, and the annual Budget contain most of the legislative activities put forward by the federal government during the year.

Restricting Trade with Countries that Harm Canada

The FES states:

Canada is deeply concerned by autocratic regimes’ use of economic coercion, unfair trade practices, and exploitation of supply chain dependencies. These are increasingly prevalent economic security threats by bad actors around the world.

To combat emerging threats and protect our economy, Canada needs to strengthen our retaliatory mechanisms. One such tool, the Export and Import Permits Act, currently sets out specific circumstances under which the government could include goods and technology on the Import Control List and Export Control List to restrict their importation or exportation.

• To ensure that Canada’s trade controls regime is robust and responsive to evolving economic security threats, the 2024 Fall Economic Statement announces the government’s intent to propose legislative amendments to the Export and Import Permits Act that would allow the government to restrict the importation or exportation of items in response to actions of another country that harm Canada or to create more secure and reliable supply chains.
  
  

Eradicating Forced Labour from Our Supply Chains

The FES states: Forced labour is never acceptable anywhere in the world, and we must ensure t hat our global supply chains remain free from these abuses. That is why in Budget 2024, Canada announced a commitment to eradicate forced labour from Canadian supply chains.

The 2024 Fall Economic Statement announces the government’s intent to introduce legislation to create a new supply chain due diligence regime, requiring government entities and businesses to scrutinize their international supply chains for risks to fundamental labour rights and take action to resolve these risks. 

• A new oversight agency will be created to ensure ongoing compliance.

The 2024 Fall Economic Statement announces the government’s intent to introduce legislative amendments to strengthen Canada’s ban on imports of goods produced with forced labour, including increasing the onus on importers to demonstrate that their supply chains are free of forced labour. 

• To implement these new regimes, the 2024 Fall Economic Statement proposes to provide $25.1 million over two years, starting in 2025-26, to Global Affairs Canada and the Canada Border Services Agency.

Given the apparent deficiency in CBSA  enforcement of our existing prohibition on the import of goods containing forced labour, it is likely that whoever is in government would approve enhanced funding for enforcement. However, the addition of human rights due diligence represents a major change in policy and will not be supported by all political parties in Canada.

Duty Relief for Donated Goods

In FES 2024, the government proposes to amend the Customs Tariff to allow for duty drawback for certain goods when they are donated to a registered charity under the Income Tax Act, provided they are to be used in the organization’s charitable programs and not resold in Canada.

• This measure was supported by several companies in the apparel industry and the Canadian Apparel Federation. It allows companies to recover duties paid on imported textiles and apparel (and indeed other goods) when those goods are subsequently donated to a charity.