Foreign Affairs Committee on Feb. 3rd, 2026

[Robert Brookfield]

Before, there were only certain grounds under which an item could be added to the export control list or import control list. The ground of economic security was not included.

The legislation is changed regularly to adapt to changing situations. For example, about a decade ago, paragraph 3(1)(g) was added to allow softwood lumber exports to be monitored. Because of the context of the relationship with the United States, it was deemed appropriate to be able to monitor those transactions, which was not presently allowed under the legislation that then existed.

This would allow greater possibilities for adding items to the lists.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

The purpose of this legislation is to make a positive impact on the way we do things. Is that correct?

[Robert Brookfield]

I believe so, yes.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Is there any negative side you might anticipate could happen, such as when negotiating a new trade agreement?

[Robert Brookfield]

The Export and Import Permits Act presently allows the implementation of trade agreements through it. It's regularly done, for example, to implement tariff rate quotas or other sorts of things under free trade agreements. This amendment is not necessary for us to implement free trade agreements.

If your question is whether adding items to the lists and controls on items potentially have positive and negative implications, yes, it does, certainly. Any restriction on imports or exports, even the requirement to file a permit for statistical purposes, puts some burden on industries that are affected. Parts of any consideration of what's added on and what the control should be are the positive and negative impacts that would come from this.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Global Affairs, which is your department, used the term “economic dependence”. Does that mean the government anticipates we might have economic dependence?

[Robert Brookfield]

It's not within the mandate of my unit to pronounce on whether or not we have economic dependence from an economic perspective. That would probably be more for the Department of Finance or economists in our unit.

I will say that this tool is intended to potentially be used against economic dependence.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

What does the term mean, then?

[Robert Brookfield]

I don't think the term is used in the legislation amendments here. I don't have a view, from my perspective, on what the term means.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

I have a note in front of me suggesting that Global Affairs has indicated that clause 461 would allow articles to be added to the import control list, if necessary, in order to prevent Canada from developing an economic dependence. That's from Global Affairs.

[Robert Brookfield]

That's probably true.

The general point, I would say, is that the language here in this legislation is intended to be broad. One of the potential ways it could be used is to combat economic dependence, however defined. There's no definition in the legislation on what that term means.

[The Chair, Liberal, Ahmed Hussen]

We are over time, so I'm going next to Anita Vandenbeld.

You have six minutes.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

Thank you, Mr. Chair.

Thank you very much for being here and answering some of the more technical aspects.

We know Canada has one of the strongest export and import permit regimes in the world. Usually, the things that are put on the export control list have to do with national security or international law, like the Arms Trade Treaty and others like that.

Can you tell me, first of all, how strong our import and export control system is?

Next, what change would this have in terms of more national security, including economic coercion? Does it mean we're seeing this as a national security threat? What is actually changing in this?

[Robert Brookfield]

Yes, we have a very strong and robust export and import controls regime. We have, under that regime, approximately 5,000 permits a year that are what we call strategic export permits. Those are dual use, military, nuclear, etc. Our units administer many more export and import permits that are more economic in nature, such as for implementing supply agreements and free trade agreements. We issue about 280,000 permits a year, only 5,000 of which are strategic export permits. Most of those are automatic for dairy, sugar and things like that. That's the part that can implement free trade agreements and other economic agreements.

What this provision would do is add what is arguably another category, or expand that category, of strategic permits. This would allow us to put products on the list that are not traditionally put on in the course of free trade agreements or other sorts of economic situations. They're more about supply chain dependence, potential economic dependence or potentially implementing agreements with other countries to ensure that Canadian companies, industry and workers have access to the products they need at an appropriate price.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

Can you walk us through what happens when an item is listed? What does that mean for the exporting company or the importing company? What is the process that it needs to go through?

[Robert Brookfield]

If a product—let's just call it product X to be neutral—was added to the export control list, in order to export product X, you would need to have a permit. We would then, as part of putting that item on the export control list, have to have in place a permitting regime. That permitting regime could be, as for example applies for many softwood lumber products, automatic. You simply need to go through the electronic system. If you apply, you will automatically get the permit, and we will be able to track as a statistical purpose what's being exported. It could be, as is the case right now for military goods, a very elaborate process where we look at each individual permit. We see whether it has potential human rights or humanitarian concerns, strategic value. We look at various considerations, including the nature of the product and the destination, and come to an individual decision in furtherance to the minister's power as to whether or not an export permit should be granted or denied.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

How much of this is permissive of the minister and how much is binding? For instance, I know that under the Arms Trade Treaty, it says that the minister shall not sign an export permit if it could actually lead to some of the section 7 violations, like abuse of civilians and terrorism. In this case, I would imagine it is a little bit more permissive than that, and there's really more discretion there.

[Robert Brookfield]

Reports have found in general, including for military items, that the Minister of Foreign Affairs under the Export and Import Permits Act has a broad discretion, but it's not unconstrained. As you noted, specifically with respect to items covered by the Arms Trade Treaty, and in fact, more broader than the treaty itself requires, but as Parliament chose to apply it more broadly to, for example, parts for military items, the requirement is to look at an item and to discern whether it meets certain problems, and if so, to deny the permit.

As a discretionary matter, even if that product is not subject to the Arms Trade Treaty, for example, a dual-use item—it could be a nuclear pump—the minister can look at those, and our department looks at those items to determine whether there is appropriate problems, and if so, then the permit is normally denied.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

How strong is our legislation compared to that in other countries?

[Robert Brookfield]

I believe from talking to colleagues and from our review of other countries, it's one of the strongest and most robust in the world.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

We also have follow-throughs. We have ways of ensuring that when you are exporting, it doesn't then end up being sent. I'm thinking particularly of the Arms Trade Treaty. We have a lot of robust assurances to make sure there are not third parties that would be able to access those.

[Robert Brookfield]

You have measures to strive to ensure that items do not go where they should not go.

Starting with the companies themselves, we deal with companies from coast to coast to coast. They don't want to break the law. They deal with this on a regular basis. They have their own permit officer. They sometimes make mistakes, so they might have someone internal. They have their own compliance programs. We start with that, and then it escalates to the point of potential internal administrative penalties, such as not getting permits if they don't do it appropriately, to the Canada Border Services Agency imposing fines or freezing items, to the RCMP imposing prosecutions.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

In your view, will this change to the legislation strengthen it?

[Robert Brookfield]

Yes.

[Anita Vandenbeld, Liberal, Ottawa West—Nepean, ON]

Thank you very much.

Would the other two individuals like to add anything? No?

I just want to thank you for your work and for your testimony today.