An Act to amend the Export and Import Permits Act
This bill tightens Canada’s controls on exporting and brokering military goods to fully align with the Arms Trade Treaty. It bans general export and brokering permits for arms and related parts/technology, removes destination-based exemptions (including for the U.S. after a 180-day transition), and clarifies that components and technology are covered. It requires case-by-case risk assessments and, where needed, government-issued end-use certificates to mitigate substantial risks of war crimes or human-rights violations. It mandates detailed annual reporting to Parliament and causes existing permits to expire after 180 days, with expedited reprocessing.
While the bill advances human-rights safeguards and transparency, it imposes substantial new friction on a key export ecosystem tightly integrated with U.S. and allied supply chains. On balance, it likely reduces exports, investment, and productivity without offsetting measures to drive growth or efficiency.
With the general export permit to the United States expiring in 180 days, how many Canadian defence jobs and contracts does the minister expect to put at risk, and will she pause this clause until her department can meet strict, published service standards for case-by-case approvals?
Why is the government forcing NORAD-integrated Canadian SMEs to seek individual permits for routine, low-risk components, and will the minister commit to a trusted-partner fast lane or a renewed general permit for U.S.-bound items to prevent export losses?
Will the minister table a full economic impact assessment and costed plan to expand permit-processing capacity, and will she compensate firms for penalties caused by delays and end-use certificate hurdles—especially in cases where foreign governments refuse to issue such certificates?
By adding friction and uncertainty to a significant export sector integrated with the U.S., the bill likely reduces output, sales, and jobs without corresponding growth measures.
It replaces general permits with case-by-case approvals and new certification steps, increasing red tape and reducing business flexibility.
Removing the U.S. general permit and expanding controls on components slows just-in-time supply chains and weakens competitiveness versus allies with trusted-partner general licences.
Stricter, slower permitting and end-use certificate requirements will deter or delay military and dual-use exports, risking contract loss to foreign competitors.
Regulatory uncertainty and higher compliance costs discourage investment in Canada’s defence/aerospace supply chains and related R&D.
Mandated detailed reporting and more individual permit decisions increase administrative workload and costs without clear service-standard guarantees.
The bill does not address taxation.
It is a restrictive regulatory change with economy-wide downside risk in a high-value export sector and no complementary pro-growth agenda.
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