Good afternoon, everyone.
Thank you very much for your invitation to appear before the committee.
As somebody who grew up in Aylmer, Quebec, I can switch between French and English. I'll try to do my talk in French, but we can talk in English afterwards.
Since my colleague has focused on the geopolitical issues, and I agree with him to a large extent, I won't revisit the question of Turkey and its role in the region. We can discuss that again later on.
I would like to focus on the national aspects and considerations associated with the granting of arms export permits and on thinking about this issue in Canada.
I think, to a large extent, that the Canadian government has lacked transparency on this subject for some time now. We must try to strike a balance between a dynamic defence industry and respect for human rights.
My thinking on the subject is based on two points. First, my research team at the University of Calgary has spent a lot of time surveying Canadians on defence issues, and we have collected data on the way Canadians perceive arms exports. I think that information is important. Second, members of my research team have also conducted comparative analyses on how other countries similar to Canada, including Australia and the Netherlands, achieve a balance between the two interests, which, in their minds, are a concern for human rights and a desire to have a dynamic defence industry.
First, from an economic standpoint, I believe that, in considering how it will regulate the granting of arms export permits, the Canadian government should find a way to promote development of a viable and dynamic defence industry in Canada, for several reasons: the defence industry is a major economic sector that creates high-quality jobs across Canada, particularly in Ontario and Quebec. On average, workers earn better salaries in this leading innovative sector.
Second, most of the studies conducted on other countries, such as Israel, the United States and Great Britain, generally show that every innovation in the defence sector tends to pollinate other sectors of the economy. The Canadian defence industry improves Canada's economy and competitiveness to a large degree.
Third, the Canadian defence industry must export in order to survive. Exports are thus an essential part of that industry. More than 60% of what it produces is exported, to the United States in particular.
There is also a connection between the size of businesses and their ability to innovate. The bigger they are, the more money they can invest in research and development. We have a vested interest in finding a way to preserve these companies so they can remain viable.
Fourth, the Canadian defence industry doesn't really exist. We are completely integrated into the American industry and, in a way, the European industry. Most Canadian defence companies are actually subsidiaries of American companies such as Boeing, Lockheed Martin, L3Harris and Raytheon. Consequently, all legislation will have a significant impact on Canada-U.S. relations. The current trend among defence companies is toward acquiring civilian companies. As a result, the division between defence companies and civilian companies is increasingly unclear, and it will therefore become more and more difficult to distinguish between the two.
I think we should find a way to encourage these companies to survive and grow in Canada. Then, with respect to human rights, we must recognize that arms exports are a major political and normative issue in Canada. In the past, the Canadian government has lacked transparency, and I think that lack of transparency has caused confusion and helped politicize the issue.
In September 2020, we asked Canadians what they thought was the most important issue associated with equipment sales. Thirty-one percent said it was human rights, while 22% felt it was international rights; only 23% said we should promote local jobs in Canada, and 10% cited good relations with our allies.
This means that we can neither conceal nor rule out normative issues in this matter, and I think any discussion should focus on how to balance Canada's economic interests with human rights concerns.