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Canada Tightens Weapons Export Rules

An Act to amend the Export and Import Permits Act

Summary

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.

  • Prohibits general export and brokering permits for military goods and technology; sunsets GEP-47 (U.S.) after 180 days.
  • Clarifies coverage of parts, components, and technology used to assemble or operate military goods.
  • Eliminates country-based exemptions from the Export Control List; requires case-by-case permits.
  • Allows/mandates end-use certificates where they would mitigate substantial risk of serious violations.
  • Expands ministerial considerations and requires detailed annual public reporting on permits, volumes, destinations, and denials.
  • Transitional: existing permits expire in 180 days; deemed reapplications to be reviewed on an expedited basis.

Builder Assessment

Vote No

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.

  • The elimination of general permits (including to the U.S.) and mandatory case-by-case approvals increase delays and costs, risking contract losses.
  • Expanded scope to parts/components and technology complicates compliance for dual-use manufacturers and SMEs.
  • New reporting requirements add administrative cost without guaranteed faster, better service delivery.
  • Uncertain transition (180-day expiry) creates near-term disruption; expedited review is promised but not benchmarked.
  • To improve: retain or replace GEP-47 with a risk-tiered, trusted-partner lane (U.S./NATO/like‑minded) with strict end-use assurances; set and publish 5–10 business day service standards with public dashboards; grandfather existing permits where risk is low; digitize and automate low-risk clearances; carve out low-risk components; require an ex ante economic impact analysis and capacity plan.

Question Period Cards

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?

Principles Analysis

Canada should aim to be the world's most prosperous country.

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.

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

It replaces general permits with case-by-case approvals and new certification steps, increasing red tape and reducing business flexibility.

Drive national productivity and global competitiveness.

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.

Grow exports of Canadian products and resources.

Stricter, slower permitting and end-use certificate requirements will deter or delay military and dual-use exports, risking contract loss to foreign competitors.

Encourage investment, innovation, and resource development.

Regulatory uncertainty and higher compliance costs discourage investment in Canada’s defence/aerospace supply chains and related R&D.

Deliver better public services at lower cost (government efficiency).

Mandated detailed reporting and more individual permit decisions increase administrative workload and costs without clear service-standard guarantees.

Reform taxes to incentivize work, risk-taking, and innovation.

The bill does not address taxation.

Focus on large-scale prosperity, not incrementalism.

It is a restrictive regulatory change with economy-wide downside risk in a high-value export sector and no complementary pro-growth agenda.

Did we get the builder vote wrong?

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PartyNDP
StatusOutside the Order of Precedence
Last updatedSep 19, 2025
TopicsForeign Affairs
Parliament45