Bill C-47 (Historical)

An Act to amend the Export and Import Permits Act and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty and other amendments)

This enactment amends the Export and Import Permits Act to
(a) define the term “broker” and to establish a framework to control brokering that takes place in Canada and that is undertaken by Canadians outside Canada;
(b) require that the Minister take into account certain considerations
before issuing an export permit or a brokering permit;
(c) authorize the making of regulations that set out additional mandatory considerations that the Minister is required to take into account before issuing an export permit or a brokering permit;
(d) set May 31 as the date by which the Minister must table in both Houses of Parliament a report of the operations under the Act in the preceding year and a report on military exports in the preceding year;
(e) increase the maximum fine for a summary conviction offence to $250,000;
(f) replace the requirement that only countries with which Canada has an intergovernmental arrangement may be added to the Automatic Firearms Country Control List by a requirement that a country may be added to the list only on the recommendation of the Minister made after consultation with the Minister of National Defence; and
(g) add a new purpose for which an article may be added to an Export Control List.
The enactment amends the Criminal Code to include, for interception of private communications purposes, the offence of brokering in the definition of “offence” in section 183.

Export and Import Permits Act

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Madam Speaker, on behalf of the other Liberals who are not allowed to speak, I wonder if at some point the member could share a little of the space here. He has been here a while. So many new Liberal MPs have told me how keen they are to speak in the House of Commons. Some of our time is taken up by my friend, over and over again, regardless of the bill.

Very specifically, on this piece of legislation, the government has said we should not sell arms to countries that flout human rights abuses, yet, under Bill C-47, there is a provision, a loophole, that allows Canadian arms to be manufactured here in Canada then sent through the United States and on to those very same countries, particularly because Donald Trump feels they are okay, and he is looking to make a deal and wants to sell more weapons.

We could, at committee, allow a provision that would say that if we cannot sell directly to a country like Nigeria, which we cannot, then we cannot sell indirectly to a country like Nigeria through the United States. That seems like a reasonable and consistent position to take. Otherwise, the Liberals would be open to the accusation of hypocrisy to say they will not look, but will continue to practice abusing human rights using Canadian armaments to do it.

I think my friend, who says he is very knowledgeable about the ATT and the bill, would see that as a glaring error in its construction right now. This loophole through the U.S., with the current administration, which I hope my friend does not agree with when it comes to human rights or respect for international law in the vision of Donald Trump, should be closed. We should not allow Canadian weapons to be diverted through the United States, and then on to regimes that Canada does not support, nor respect.

[The Chair, Liberal, Bob Nault]

Ziad Aboultaif seconds it.

Is everyone in favour? Agreed.

Mr. O'Toole is the new vice-chair.

We usually wait for the member to show up, but we said we could do it this way anyway and we'll just carry on. We'll congratulate Erin when he gets here.

The second order of business, and we're going to go in camera after this, is the 15th report of your subcommittee on agenda and procedure. There are 16 items that we're reporting on, on behalf of the subcommittee, that will need your approval of the recommendations. If you haven't seen the draft or the report, please have a look at it, because I'll go through it fairly quickly.

It's proposed that the draft schedule of meetings for September to December be agreed to as a draft calendar for the committee work schedule. As you already are aware, this is a draft schedule and it's quite fluid. Sometimes these things change, but at least it's a document that we can work from. Already you'll notice there is a slight change regarding the meeting on Tuesday, September 26, with the President of Venezuela's National Assembly, as they are unavailable. That's different from what it was when the subcommittee looked at the agenda and schedule. I'd just remind you of that one small change.

The other thing is that the committee will hear from Minister Bibeau in relation to the study on DFI, the development finance initiative, for one hour. As those of you who were in attendance will know, DFI was a motion put forward by our Conservative colleagues and we have studied that. We're almost at the end of that discussion and we'll start to see a draft report after the minister makes her presentation to us vis-à-vis DFI. That will happen on September 28.

The committee will travel to Mexico, New York City, and Washington, D.C., from October 22 to 28. Just as a heads-up, so far no one is travelling to Mexico. I understand that the international trade committee has had their meetings cancelled because, of course, as we all know, there are some very serious matters that are confronting the Mexican government, and even the Congress. I understand the building has been somewhat damaged with what's unfolding. We're going to track that.

I asked the clerk what the drop-dead date would be for us to go or not go to Mexico. We will continue on still with our New York City and Washington, D.C. part of the trip if that's to happen. As of today, we'll consider Mexico still on, but I have a strong suspicion that might be difficult to manage three weeks from now.

The fourth matter is that the committee have a briefing with officials from Global Affairs in relation to the trip.

The fifth matter is that the committee commence a study on consular affairs on Tuesday, October 3, pursuant to a motion adopted on February 9, 2017, and that the members be invited to submit lists of possible witnesses to the clerk's office. Just as a heads-up, we might be able to start the consular affairs study earlier than that date. That is certainly the objective of the chair. If we can get started earlier, we will, so my advice is to get your witness list in as soon as possible.

I want to remind the committee that this chair and committee have an open witness list, so we can add to it. We're not going to close it as some committees do. We just roll along, and if we come up with another witness that makes some sense, we're going to hear from them. I think that's a more appropriate way. There's no real stress; just get your key witnesses in who you want to start with, so that the table can do its job.

Sixth, as soon as Bill C-47, an act to amend the Export and Import Permits Act and the Criminal Code, regarding amendments permitting the accession to the Arms Trade Treaty and other amendments, is referred to the committee, study of the bill will commence. I think that bill is being debated in the House today.

As you're all aware, if we get a request by the House to study a particular piece of legislation, that will take precedence over other matters. It's our objective to get into Bill C-47 once it is sent to this committee.

It may come a little earlier than I had anticipated because it seems to be moving in the House now. I understand it will be debated today. I suspect the House leader will report to the official opposition that we will look at it again next week. If that's the case, then I think we'll probably get to a point where we'll see this bill fairly soon.

Then, if you turn over the page, it says “pursuant to a motion adopted by the Committee on December 14, 2017, a maximum of six meetings to be held to study the bill”.

That will be a decision of the committee based on how many witnesses and what exactly the in-depth part of this will be. It may be less than six meetings, but it's intended to be a maximum. That relates to, I think, probably the consular affairs, not so much Bill C-47. Is that a mistake in how it was written?

[Erin O'Toole, Conservative, Durham, ON]

Madam Speaker, I too enjoy when the Minister of Transport weighs in on things. I enjoyed his interventions much more when he was sitting on this side as opposed to that side, but that is the way Parliament works. I have the utmost respect for him.

In that list of items, one thing I found absent was our world-leading position as a country in space and some of our technology related to space. I know the minister knows the issue far better than anyone in the House.

In the last government, the sale of MacDonald, Dettwiler and Associates was prevented because of national security concerns. The member liked some of the arguments I made and did not like others.

Why did I sound defensive? It was because the parliamentary secretary ended his question and comment period in French by saying that this was going to be taking what Canada is doing to the next regime. I was listening without translation and from a distance, but he was leaving the effect that the regime Canada had in place was somehow inferior to Bill C-47.

My speech was intended to show that it is not. In fact, our tracking is far superior, and because of uncertainty—and with respect, I do think it is genuine, although he may suggest it is not genuine—all groups that have hunters and sports shooters, including indigenous hunters and sports shooters, who have a constitutional right for that, think it is unreasonable that one definition could not go in this treaty to carve out responsible and legal firearm use. To coin a term, I think that is a modest proposal, but because we do not have that carve-out and because I hear the language of the nineties creeping back in, I oppose the bill. However, I rest easy at night because our regime in place now is already doing more than this treaty would.

[Erin O'Toole, Conservative, Durham, ON]

Madam Speaker, it is my honour to rise today to debate Bill C-47, particularly after the speech from the parliamentary secretary, which ended with incorrect information to this place in response to the question from the member for the NDP. Actually, Canada would be worse off than it was before. He said that this would send Canada ahead with respect to the aims of the treaty. That is not only incorrect on the factual review of the treaty itself, but it shows the parliamentary secretary's lack of understanding of our current arms control regime in Canada.

Therefore, for his benefit, and for the benefit of the few of my Liberal friends listening, I will take him through that.

The bill is part of the Liberal's election promise to implement the United Nations Arms Trade Treaty, the ATT, which has been debated in the UN, has been brought forward, and signed by some countries but not by others.

My remarks will focus on four key points. Three of those go to the inferior nature of the ATT when compared, side by side, with what Canada does now, and did do under the previous Conservative government, the Liberal government previous to that, and so on, back to the 1940s. I will give three points on how it is inferior and a final point on its inherent unfairness, lack of clarity, and over breadth.

First, this is inferior to what Canada does now under the Export and Import Permits Act and the regulations and orders in council that can be brought forward by government under that legislation. I hope the parliamentary secretary will take notes, because he will need to research this after I go through some of it.

The first point I make is on the Trade Controls Bureau.

We empower a department of the government, and have since the 1940s, to ensure that military equipment sales, issues related to security, crypto logical equipment, and nuclear biological risks are not only governed and tracked but are controlled. We have a bureau already, not in New York, in Ottawa, that has been doing this very effectively for many years. The Trade Controls Bureau has been empowered and does this for each Parliament. I would invite the member to look at the Trade Controls Bureau and see how we specifically address, track, and control trade in military equipment, other items of security, or other interests. All Parliaments have done it. Both Liberal and Conservative governments have done it.

My second point is that we specifically name, from a Canadian point of view, items for export that need to be tracked and controlled. I will review what those are for the member because they are called out specifically.

Military or strategic dual use goods, so some goods that can be used for a military or civilian purpose, are specifically tracked. Other items are nuclear energy materials and technology; missile related technology; chemical or biological goods; and crypto logical equipment and code breaking, particularly in the age of the Internet. Many companies in Canada are world leaders in this technology, like SecureKey and others. We already monitor, control, and, in many cases, restrict export of these technologies.

One problem in the past that we know of was that a previous government, the government of Pierre Trudeau, had some issues when nuclear technology was traded for peaceful use and was tracked, but unfortunately may have been used to develop capabilities with respect to weaponized use of that technology.

I use that as a point of reference to show how, over many Parliaments, Canada has done this. We did not wait for the United Nations. Had we done that, it would have been a bit of a lawless west. As a responsible parliamentary democracy, Canada has been doing this.

I invite the member to review the specific items controlled under the Export and Import Permits Act that we charge the Trade Controls Bureau to monitor.

My third point on how our existing system is superior to an inferior UN treaty is the tracking.

The items I just outlined, including military equipment, cryptological, nuclear, and biological, are tracked by both the Canada Border Services Agency and by Statistics Canada, and not just under our own reference points. We use the World Customs Organization tracking figures for these items. We track and limit the trade in these items far more than what the United Nations Arms Trade Treaty does.

An article in Ceasefire magazine calls the UN's ATT a failure. The third item it tracked was its lack of transparency. There is no tracking internationally under this treaty. Canada already does it.

I hope the parliamentary secretary rewrites the notes the government has been passing around on the bill, because they do not accord with our legislative record or Canada's responsible treatment of controlled technologies, including not only military but nuclear technology as well.

Canada was the fourth country to have controlled nuclear fission. We have 70,000 people in Canada that work in this area. Our CANDU technology is the best in the world in capability and its safety record. We have taken this very seriously since the 1940s and we track according to the World Customs Organization tracking codes for each of those items.

I have a fourth point at which I would invite the Liberals to look.

Right now, we have what is called an area of control list under the Export and Import Permits Act. That empowerment in the bill, through an order in council, can specifically limit sales of anything to a country. Right now the only country on the area control list is North Korea, and it is probably very good it is on there. I would agree with the government if it wants to keep that country on the list. In the past, the area control list has included Belarus and Myanmar.

Not only do we already have a system of controls, tracking, and itemization that is far superior to what is proposed in the bill, our legislation as it stands in Canada can ban a country entirely. That is a tool the government can use if it is about control of anything, not just our controlled items that I have said are tracked.

The cabinet is charged with making decisions on why countries should be removed from that list. As Myanmar opened up, it was removed from that list. It was the same with Belarus. However, we still have to track. We see problems in Myanmar right now with respect to Rohingya. Perhaps the civilian oversight of the miliary is not quite as it would seem.

The Liberal government has within its power now, not by the United Nations treaty, to limit entirely sales to a country. I would invite the parliamentary secretary to review that.

Finally, like many UN treaties, the main players are not part of the treaty. In global arms trade, there are six countries and they are called the “big six”. Three of those countries are not part of this treaty. I am not worried, because Canada's regime, as I have been describing to the House, is superior to this treaty.

The treaty came as an election promise by the Liberals, but I want them to see that what Canada is doing now, and has been doing responsibly, is superior. If we want the UN to have the tracking, to have the transparency, we should be pushing to have these discussions before a treaty is brought forward. Many MPs on both sides of the House want to ensure that Canada adheres to its Export and Import Permits Act, so they need to know what a good job it is already doing.

Finally, another inferior part, and quite frankly short-sighted part of the UN ATT is article 5, which would suddenly include the Department of National Defence into the military equipment provisions of that treaty, preventing, or in some cases limiting, government to government transfers. We have never had to catch DND within our own export and import permits regime, because DND is the government. It is a crown ministry. It is part of the crown.

Therefore, if we want to do military-to-military aid, perhaps sending training materials to the peshmerga that our special forces are working with and training, this measure would encumber that process. I am quite sure that most Canadians believe that DND is responsible for its own equipment. Why then would we catch them in a treaty that most groups are calling a failure anyway, which does not involve three of the big six players in terms of the global arms trade?

Finally, I have listed five or six items demonstrating that what Bill C-47 proposes is actually inferior to what Canada is already doing.

The last item is about unfairness, and this where the politics of it come in. Just as we are seeing with small business, there is no consultation on concerns about overbreadth or the fact that hunters, sport shooters, or recreational users under a regulated regime of lawful firearm use could be caught within the confines of the measures in this bill. I have placed this last because, while the parliamentary secretary insists it is not the case, all industry groups insist it is, but without consultation, how does the parliamentary secretary know?

It is clear that he does not understand the export and import permit regime. Maybe he knows a little more about it now, which I think is part of why we have debate now in the House of Commons. It is to show that regulation in Canada is in many ways superior to what is done anywhere else in the world, including the United Nations. Before we even talk about what the UNATT does, we should talk about what Canada is doing already, and whether it is insufficient to limit and track items that we consider potentially dangerous: military equipment, nuclear technology, chemicals, biologicals, cryptology, or anything that could adversely impact our national interest.

On the last point, the cryptological sales, we have seen the current government green-light sales to China of pretty much any technology out there. I would suggest that some of these technology trades occurred without the proper oversight, without the full review that is normally done. For some reason those reviews were waived in the case of one of the most recent sales to China. Those reviews are important, because technology is actually the threat of the future to the public safety and security of Canada and our allies, and Bill C-47 does not address that.

As I have said, particularly on my third point on transparency, this treaty is inferior. Civil society groups out there have called this treaty a failure, particularly because of its lack of transparency, and as I said, our Trade Controls Bureau has been empowered for two generations to track the sale and control of goods that Canadians deem important.

On that final note, this hearkens back for me, as a member of Parliament for a suburban riding that has a rural element, to the lack of consultation on the last element, on which Canadians have genuine concerns about whether their lawful and regulated use of a firearm for hunting or sport shooting could be impacted. The parliamentary secretary uses the words “phony argument” when we suggest that. I would invite him to go hunting with someone outside of Fredericton and see if they are being phony about their concerns. What we need is consultation to see if my concerns are overinflated or if the parliamentary secretary is being dismissive. I am not suggesting that I know, but as a lawyer, I will tell members that overbreadth or lack of clarity in law is a failure in itself.

The last government made interventions with respect to the negotiation of this treaty on many fronts, and one was a simple and reasonable carve-out of regulated civilian firearms use. I do not know why that was not pursued by the UN when there is zero transparency. However, as I said, fortunately our existing regime has transparency, while this treaty has zero.

While things were watered down as this was negotiated by the United Nations, while three of the big countries that are actual players in global trade are not part of this regime, while those issues were going through the negotiations, a simple and effective carve-out of the legitimate, historical, and cultural use of firearms was not carved out, for whatever reason.

Some of the cases before the Supreme Court of Canada on inherent rights of our indigenous peoples relate to hunting and fishing. This is as cultural as the earliest peoples of this land. Certainly, most people in this House think of the hunter in the duck blind and that sort of consideration, but the inherent right for our first nations to hunt, in both modern and traditional ways, is a constitutional protection.

Would it not be reasonable to carve that out in a treaty that on many fronts is inferior to what Canada is already doing? I really hope the parliamentary secretary and other members of his caucus refrain from that divisive language suggesting that even having a reasonable concern is somehow phony. The last time I saw that degree of arrogance in the Liberal Party, it was from a member from Toronto named Allan Rock, who polarized Canadians by suggesting that people who were law-abiding hunters or sport shooters were somehow a public safety hazard for Canada.

I know some of my Liberal friends, including from rural parts like Yukon and Labrador, know how much it hurt Canadians for the government to suggest that bringing in a licensing and registry system for people who were already trained and responsible was going to have an impact on crime. It became a divisive, rural-urban issue. This Parliament, as much as it can, should try to have debates that do not quickly revert to that approach.

I have been hard on my friend, the parliamentary secretary. I know in Fredericton, especially with the base there—and I know he supports our men and women in uniform—he knows that culturally a lot of people find hunting and fishing to be a way of life, so if they have a concern, I think it is valid to consider that concern.

It is also a valid question to ask the United Nations why, when transparency provisions were wiped out in the negotiations over the ATT, a simple reference providing explicit exclusion for law-abiding and regulated use by hunters and sport shooters, as we do in Canada very effectively, was not provided for. That is a failure of this treaty. Certainly groups out there that still have this concern want to know that the government is at least hearing them and is not suggesting that it is a phony argument. I am hoping, as we debate this bill over the coming days, that we can talk about it in those terms, and that we can talk about it from a starting point of what Canada is doing now.

As a parliamentary purist, I have great respect for our parliamentary democracy, in both Houses and on both sides. This is where we debate the laws and regulations that govern Canadians. When we can work with our allies at NATO or the United Nations to help limit arms sales to North Korea or to places where there is conflict or so that we do not exacerbate someone's pursuit of technology that could be harmful, of course we would do that. We always have. However, we should also make sure, as parliamentarians, to remind Canadians that the starting point for Canada with respect to regulating, tracking, and limiting the export of military equipment and biological-chemical dangerous items is already superior to most of the world. If we do not start from that basis, I do not think we are being fair in this debate.

The final point I will make before I close is that it is not elevating debate in this House to suggest that if the Canadian Shooting Sports Association has a concern about overbreadth, their concern is somehow phony. I hope we have a debate that is better than that, and that we have the context of the Export and Import Permits Act regime to underline a debate on Bill C-47.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Madam Speaker, I would like to ask the hon. member whether Bill C-47 brings all U.S. destination military goods included in section 2 of the Arms Trade Treaty within the Export and Import Permits Act as required by the ATT, and if not, why not?

[Matt DeCourcey, Liberal, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, our government believes that regulating the international arms trade is essential for the protection of people and human rights. This is especially true for control and regulation that aim to prevent the illicit trade of arms.

The Arms Trade Treaty is about protecting people. It ensures countries effectively regulate the international trade of arms so that they are not used to support terrorism, international organized crime, gender-based violence, human rights abuses, or violations of international humanitarian law. Our government is committed to advancing export controls as a means of reducing the risks that come from the illicit trade in conventional arms. Joining the ATT, which calls on all of its state parties to set up effective export controls, is the next important step in advancing these export controls and reducing these risks.

Joining the Arms Trade Treaty will put Canada back on the same page as its closest partners and allies. Canada is the only NATO ally and the only G7 partner that has not signed or ratified the ATT.

The Arms Trade Treaty was negotiated in response to growing international concern about the direct and indirect consequences of the global arms trade on conflict, human rights, and development.

The goal is to ensure that all states take responsibility and rigorously assess arms exports. States must also regulate the legal arms trade and use transparent measures to combat illicit trade.

We recognize that unregulated or illicit arms transfers intensify and prolong conflict, lead to regional instability, contribute to violations of international humanitarian law and humans rights abuses, and hinder social and economic development.

Indeed, the proliferation of weapons, and particularly of small arms and light weapons, is one of the greatest security challenges faced by the international community. Armed conflicts affect civilians. Women and children are too frequently targeted or are innocent victims.

The consequences of illicit or irresponsible flows of conventional arms also go beyond the immediate threat of death, injury, or violence. Proliferation and illicit weapons trade contribute to a climate of persistent fear and insecurity, which undermines socio-economic growth and stability.

The Arms Trade Treaty has an important role to play in addressing these issues. Canada must be a leader in this effort, and we must lead by example.

The ATT represents the first time that the international community has agreed to a legally binding and global commitment to control exports of conventional arms. It sets a high common standard for export of arms, and seeks to eliminate illicit trade and diversion of conventional arms.

States acceding to the ATT must assess the risk that an export might be used negatively, including for human rights abuses or to contribute to organized crime. This is not always black and white. It requires looking not only at the state as a whole but also at who will take possession of the weapon, their track record, the risk that the weapon could be diverted from the purpose intended when it was exported, and other similar factors.

The ATT also requires states to consider mitigation measures to address identified risks. This treaty is very clear. If there is no way to ensure that a given export will not pose a serious threat to human rights or be used to violate international humanitarian laws or perpetrate international terrorism or crime, it must be forbidden.

Therefore, Bill C-47 would further strengthen Canada's existing processes in relation to the global movement of arms. Our changes, including those to accede to the Arms Trade Treaty, will make Canada's export control system even more robust, and will ensure a continued high standard for addressing the pressing issue of arms proliferation around the globe.

Canada’s existing export control system complies with 26 of the 28 provisions of the Arms Trade Treaty. In that sense, some changes are needed to bring Canada into full compliance with the two articles of the treaty where we fall short, namely, article 7, export and export assessment, and article 10, brokering.

One of the things the bill before us does is introduce the necessary legislative changes to ensure that we meet our ATT obligations.

Article 7 of the Arms Trade Treaty establishes common, clear, and rigorous standards regarding the factors that states must take into account before authorizing the export of any items subject to the ATT. These factors include an assessment of the potential that Canadian exports could be used to commit serious violations of human rights law or international humanitarian law, as well as the potential that the exports could fall into the hands of criminals or terrorists.

The ATT is the first arms control treaty that focuses specifically on the issue of gender-based violence and violence against women and children, issues that are very important to our government. These criteria are designed to ensure that Canada assesses the risks associated with the export of a given product or piece of technology regarding the intended end use and end user.

Bill C-47 will also ensure that Canada can fulfill the stipulations of article 10 of the ATT, which requires that every state regulate brokering. Brokering captures the transfer of arms without an export permit. The provisions of the bill ensure that Canadians who arrange the transfer of arms between a second and a third country follow the same rules as those who export arms outside Canada.

Regulating brokering activities will give our government the ability to monitor the activities of individuals and organizations that serve as intermediaries between arms dealers and the end users of military goods.

Moreover, these brokering permit requirements would also apply extraterritorially, meaning they would apply to Canadians engaged in brokering activities abroad. This additional capability will allow us to have a better idea of the types of brokering control list transfers involving Canadians that occur globally and to bring a greater level of visibility on potentially high-risk transactions brokered by Canadians.

Our government intends to go beyond the standards set by the Arms Trade Treaty and ensure that brokering regulations cover not only the conventional weapons covered by the ATT but also military articles and dual-use items that are likely destined to a weapon of mass destruction end use.

Requiring permits for brokering would ensure that comparable levels of scrutiny would also be applied to brokering activities. As a result, Canadian export permit authorities can better assess the risks of potential arms transfers before they occur to determine their suitability, and to deny a permit for such transfers where there is an overriding risk of the negative consequences of one of the export permit criteria, including the risk of serious violation of international human rights law or international humanitarian law.

I would like to point out that there is a legitimate role for brokers who arrange or facilitate sales for reputable arms manufacturers. Unfortunately, there are also those who do not act responsibly and who choose instead to profit from the sales of arms, even though they know that they will fall into the wrong hands.

Internationally, there are far too many cases where unscrupulous arms dealers put profits ahead of human life. Transactions facilitated by those dealers have given rise to the transfer of firearms to conflict zones, in direct violation of United Nations firearms embargoes, and to terrorist or criminal groups. This legislation will make it possible for responsible Canadian dealers to hold permits and conduct legal activities. It will ensure that those who choose to act unethically will also end up acting illegally.

Beyond the changes required by the ATT, the bill will enhance Canada's export and import controls by addressing the issue of penalties imposed on individuals who try to circumvent Canadian law and regulations. The bill will increase the maximum fine for a summary conviction offence from $25,000 to $250,000 for any offence under the Export and Import Permits Act. Increasing the maximum penalty underscores the seriousness of these offences that contribute directly to destabilizing accumulations of weapons and technologies in conflict zones around the world.

Let me reiterate that these new measures would ensure that our government will be better able to pursue bad-faith actors and hold them to account. At the same time, Canada would be in a better position to review bona fide arms transfers to legitimate end-users. Canada would also be able to effectively penalize those who would try to circumvent these processes.

I would like to make it clear that Canada's accession to the Arms Trade Treaty does not and would not affect domestic ownership of firearms or Canada's domestic firearms laws and policies. The ATT would govern the import and export of conventional arms, not the trade in sporting and hunting firearms owned and used by law-abiding Canadian citizens.

However, the ATT does not limit the number or type of arms a country can sell. The ATT simply requires states to establish rigorous export controls of the kind that Canada already has in place to ensure that exports are not put to unforeseen harmful use.

The ATT is not a one-size-fits-all system. It recognizes that states' export control systems must meet their national needs. It does not prevent states from including expedited processes in their export control systems, as Canada does for close allies, such as the United States.

The government will ensure that exports are assessed in accordance with the criteria set out in the ATT and that they do not violate the prohibitions in the treaty.

Turning now to the Export and Import Permits Act and to the Criminal Code, we have indicated to Canadians that our government is committed to strengthening Canada's export controls with respect to military and strategic goods and technology. This bill and our commitment to accede to the Arms Trade Treaty are part of our promise to increase the rigour of Canada's export-control system. As members are aware, Canada already has a robust export control system. We are a key member of a number of export control and non-proliferation regimes that allow us to exchange information on trends in arms movement and on best practices with our allies.

In addition, Canada has a strong sanctions regime that includes sanctions related to the export or sale of arms. Canadian sanctions are part of a multilateral action. They reflect the work we do in concert with our allies. Sanctions are implemented in Canada through the United Nations Act or the Special Economic Measures Act.

Canada has its own financial intelligence unit with respect to illicit financing of arms. The mandate of the Financial Transactions and Reports Analysis Centre of Canada is to facilitate the detection, prevention, and deterrence of money laundering and the financing of terrorist activities. Our government is taking steps to ensure that these new obligations do not unduly hinder or restrict legitimate transfers of military, dual-use, and other strategic items that are aligned with our national interests and do not pose undue risk.

It is the government's intention to apply the ATT assessment criteria not only to those goods specifically outlined in the ATT, but also to all dual-use, military, and strategic goods. Our government will also apply the ATT assessment criteria to both export and brokering permit applications. We will thus exceed the standards set by the ATT, and strengthen our export control system at the same time. Indeed, our government intends to see Canada establish a particularly high standard when it comes to gender-based violence and violence against women and children. The fact that this issue was included in the treaty is a clear sign of the power of advocacy by states like Canada who are determined to address gender-based violence.

While this is given less attention and consideration in the ATT than other criteria, Canada intends to propose including gender-based violence in the regulations, applying a higher standard, and assessing the risks related to gender-based violence to a broader set of exports than those defined within the ATT. These new measures would ensure that our government is better able to pursue bad-faith actors and hold them to account. Canada would also be better able to effectively penalize those who would try to circumvent these processes.

Canadian businesses would still be able to conduct legitimate transactions in pursuit of Canadian strategic and defence interests and the strategic interests of our allies.

Finally, these changes would allow Canada to meet its international obligations and accede to the ATT. I encourage all my colleagues here today to seek to advance this bill rapidly so that Canada can once again take its rightful place with its international partners as a state party to the Arms Trade Treaty.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

moved that Bill C-47, An Act to amend the Export and Import Permits Act and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty and other amendments), be read the second time and referred to a committee.

Foreign Affairs, Trade and Development—Main Estimates, 2016-17

[Hélène Laverdière, NDP, Laurier—Sainte-Marie, QC]

Madam Chair, clearly there is no answer as to whether the Government of Canada will or will not adequately respond to a resolution adopted by the United Nations Security Council. That is a new one. I will move on to another topic.

About the ATT, the bill that has been tabled to implement the ATT still does not include the military export to the U.S.A., which is a problem. One other big problem is that the assessment criteria for export permits are not strengthened in Bill C-47, as is the intent of the ATT. In fact, the government backgrounder that accompanied the bill suggests that standards for assessing export will be listed in a new regulation following royal assent of Bill C-47.

Why did you table a bill that puts such a vital part of the enacting legislation in the regulations and not in the legislation proper?

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Thank you, Mr. Chair, and thanks again, Minister, for being here.

A couple of issues on firearms-related bills and issues that have been irritants in the firearms community, Mr. Minister, arise from the legislation proposed in Bill C-47. There are a number of clauses, but one that's particularly disconcerting to people in the firearms community is the fact that a lot of people who hunt will hunt internationally as well.

To take their firearms and go to another country—let's use the U.S. as an example—their understanding is that there are going to be huge problems bringing their firearms back into Canada. I hope you have your people take a good look at that.

Another issue here is that I was assured some time ago, last fall, by your former parliamentary secretary, that the government was quite aware there were problems with the term “variant” in the—

We seem to have some music on.

Firearms Registry

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Mr. Speaker, the Liberals are sneaking a new gun registry in by stealth, tabling it on the same day as their pot legislation. They are not fooling gun owners across Canada, though, that this is not just a gun registry by another name.

Bill C-47 requires any Canadian company importing firearms or firearm technology to keep records electronically. What agency will hold and administer this new electronic registry, and who will have access to it?

On June 1, the United Nations Firearm Marking scheme also comes in to effect, targeting responsible gun owners and legitimate firearm businesses, saddling them with an annual $60 million dollar bill. Rather than protect us, this marking scheme will increase the cost of each legitimately purchased firearm by some $200.

Criminals do not follow law and they are not going to register their guns. International arms dealers will never be compliant with the UN and they will not be registering any of their contact information.

The Liberals again put a target on recreational sports shooters, hunters, and small family-run businesses. Instead of wasting time and money on a new gun registry, how about the Liberals really tackle the criminals.

Export and Import Permits Act

[Chrystia Freeland, Liberal, Minister of Foreign Affairs]

moved for leave to introduce Bill C-47, An Act to amend the Export and Import Permits Act and the Criminal Code (amendments permitting the accession to the Arms Trade Treaty and other amendments).

(Motions deemed adopted, bill read the first time and printed)