Loss of access to trade advocacy support

Spanish version (.PDF – 204 KB)

The Government of Canada expects all Canadian companies operating abroad to:

  • respect human rights
  • respect labour rights
  • respect all applicable laws
  • conduct their activities in a socially and environmentally responsible manner.

When concerns are raised about Canadian mining, oil or gas operations abroad, the Government of Canada expects Canadian extractive companies to engage in good faith with the Office of the Extractive Sector CSR Counsellor.

Companies that do not embody CSR best practices and refuse to participate in the Office’s early assessment or dispute resolution processes will have Government of Canada trade advocacy and economic support denied or withdrawn.

Canada’s CSR Strategy for the extractive sector abroad establishes a role for the CSR Counsellor in recognizing a Canadian extractive company’s eligibility for Government of Canada trade advocacy support.  Trade advocacy can include:

  • issuing of letters of support
  • engaging with governments in foreign markets
  • participating in Government of Canada trade missions.

Diplomatic support of this nature can be critical to companies for the success of their projects abroad.

When a matter is brought to the Office's attention, the company concerned will be expected to demonstrate:

Matters may be brought to our attention through:

  • our engagement with stakeholders
  • a formal request for review and mediation process
  • an informal request for the CSR counsellor’s early intervention

Demonstrations of acting in good faith include: a company’s active and positive participation in efforts to find solutions and resolve issues amicably, a company’s willingness to cooperate with the Office, as well as a company’s willingness to utilize the CSR support, tools and services offered by the Government of Canada and outlined in Canada’s CSR Strategy for the extractive sector abroad.

If the company is able to demonstrate the above, the CSR Counsellor:

  • may offer further advice to help the company continue to make progress towards a mutually satisfactory resolution of the issue or dispute;
  • will continue to monitor the situation.

If the company cannot demonstrate the above, the CSR Counsellor will advise the Government of Canada (through the Canadian Trade Commissioner Service) of his/her assessment and conclusion that the company should not be eligible for trade advocacy support. The CSR Counsellor’s assessment and conclusions will also be taken into account in the CSR-related due diligence conducted by Canada’s export credit agency, Export Development Canada, in its consideration of financing or other support.

Note: Even when a company has fully cooperated with the Office, the CSR Counsellor may come to the conclusion that the company has not demonstrated how its activities or conduct reflect good CSR practice and may advise that trade advocacy support be denied or withdrawn.

In cases where the CSR Counsellor has advised that trade advocacy support be denied or withdrawn, the CSR Counsellor’s assessment and conclusions will hold until such time as, in the CSR Counsellor’s determination, the company has demonstrated it has appropriately modified its practices and/or approach.