Ottawa moves to ease export controls on military goods
Critics warn some equipment may end up in the hands of human rights abusers
OTTAWA — The federal Conservative government has been quietly working to remove restrictions on the transfer of hundreds of Canadian-made, military-related goods as part of a plan to make Canada a global arms exporter.
Canadian defence companies say the initiative is long overdue and one of the single most important actions the government can take to help them succeed at home and abroad.
But arms-control groups worry about the secrecy that has surrounded the process, and warns the move could lead to Canadian military goods being used by authoritarian regimes to commit human rights abuses or worse, as has already happened at least once.
The federal government created a list of “controlled goods” in 2001 as part of a broader effort to prevent material that can be used for military purposes from falling into the wrong hands.
The list covers hundreds of items, including hazardous material outfits, drones, guns and ammunition, even software and high-tech sewing machines used to create protective gear.
But Canada’s defence industry has been complaining for the past few years that Canada’s list is far more restrictive than that of the United States, which puts Canadian companies at a competitive disadvantage with U.S. counterparts.
In response, the Conservative government quietly launched a review in spring 2012, and Public Works Minister Diane Finley confirmed last week that the government plans to remove more than half of the items currently on the controlledgoods list.
“The amendments will also ensure that the list is always aligned with the U.S., now and in the future,” Finley added. “That means predictability for Canadian business and continued access to the U.S. defence market.”
Public Works officials said the changes are being made now, though they would not give a timeline for when the new list comes into effect.
The U.S. government implemented major reforms to its own list on Oct. 15, saying the goal was to remove restrictions on “less sensitive technologies” and make it easier to make sales abroad.
“This system did not prioritize controls, for example between end-items like an F-18 and its parts and components, resulting in a disproportionate focus on the least sensitive items such as nuts, bolts and screws instead of the most sensitive items,” the White House said in a news release.
Further changes to the U.S. list will take effect in January. The U.S. exports about $20 billion worth of military-related goods each year.
The Canadian Association of Defence and Security Industries, which represents more than 975 defence-related companies, has applauded the planned reforms in Canada.
“Thinning out controlledgoods red tape would be a really big deal,” association president Tim Page wrote in an email.
“Some of our larger-sized industry members have told us this is the program that would make the biggest difference in their ability to compete more effectively in the international marketplace. And some of our smaller-sized industry partners have told us that it would also make them more competitive at home.”
But Kenneth Epps, senior program officer at armscontrol group Project Ploughshares, objected to the lack of transparency surrounding the government’s review of the controlled-goods list.
“The list includes many military items that, in the wrong hands, could contribute to human rights violations or war crimes,” he added. “Canadians deserve to know whether cutting the list will increase the risks of these violations occurring.”
Canadian-made armoured vehicles that were sold to Saudi Arabia have previous- ly been implicated in an ongoing crackdown on protesters in neighbouring Bahrain. Similar vehicles were also recently sold to Colombia despite concerns about that country’s record on human and labour rights.
The Conservative government has been ramping up efforts to turn Canada into a major producer and exporter over the past few years. It said in its latest budget, tabled at the end of March, that it wants growth in the defence industry to “provide Canada with a stronger manufacturing base with a capacity for leading-edge technology and innovation.”
It has since ordered federal research agencies such as the National Research Council to focus on the sector, while simultaneously setting up multimillion-dollar funds to support business-driven research and development. It has also been advocating a “Buy in Canada” approach to purchasing new military equipment even as the Canadian Commercial Corporation, a Crown corporation, has turned itself into the federal government’s arms salesman.
The government has also been looking to ease restrictions on the sale of weapons and military equipment to Brazil, Chile, Peru and South Korea.
The Canadian Association of Defence and Security Industries says the sector generated $12.6 billion in economic activity last year, including $6.4 billion from foreign sales.