Steps aimed to bolster economic security

• New measures to ensure Canada doesn’t export sensitive technology to foreign adversaries are among the changes being eyed by Ottawa to bolster the country’s economic security.

Other possibilities include making it easier to fine companies that fail to comply with investment screening rules and mapping supply chains to identify critical vulnerabilities, according to a federal consultation paper.

The paper, released through the Access to Information Act, was circulated to key parties in industry, academia and civil society last spring to canvass views on better protecting Canada from hostile players out to exploit the country’s technologically advanced sectors.

Public Safety Canada is expected to publish a summary of the feedback shortly.

The paper says Canada benefits from the vast majority of the foreign investment in the country, trade in Canadian goods and technology, and research partnerships between foreign organizations and Canadian universities and research institutions.

However, it adds, some foreign states and non-state actors try to acquire technologies or forge commercial partnerships that can potentially jeopardize Canada’s national security and longterm economic prosperity.

“Canadian companies, in almost all sectors of our economy, have been targeted.”

The frequency and sophistication of state-sponsored threat activity is increasing, the consultation paper adds.

Threats come in the form of espionage, theft and cyberattacks.

But the government warns they can also be waged covertly in otherwise legal transactions such as foreign investments in sectors and industries integral to Canada’s security, or the purchase or transfer of sensitive goods, technology and know-how that are currently not subject to export controls.

Other threats involve the purchase of controlled goods and intellectual property through front companies, brokers or others that misrepresent the end use, as well as foreign-funded partnerships between Canadian researchers and entities linked to adversaries.

The consultation paper does not mention specific countries of concern. However, Canadian security officials have long warned that Russia and China, in particular, target Canada’s classified information and advanced technology.

Even so, the exercise is intended to ensure Canada’s approach is effective in responding to threats, no matter the source.

The government has spearheaded the creation of national security guidelines to help protect federally funded research.