Mr. Speaker, we are pleased to rise today to discuss this very important topic. We are pleased to see that members of the House are determined to work on maintaining high standards when it comes to peace, security, and human rights.
While we welcome the member's concerns for human rights, transparent processes, and strong arms controls, we are disappointed by the disregard for tens of thousands of Canadians' livelihoods. Our defence industry directly employs 70,000 Canadians. Their jobs are well paying, and many of them are union jobs that support families across our nation. Workers in the defence industry work hard to create products that help families and protect Canadians and our allies.
The disregard that the NDP holds for fellow Canadians is clear in the opening of its motion, which states, “Canadian arms exports have nearly doubled over the past decade”. Is keeping our forces safe, providing our allies with equipment they need to operate effectively, and serving as a source of innovation and support for aviation, communications, and transportation not important to the member opposite? Is the defence industry really something we wish to cut back on?
For many years, the New Democrats have consistently attacked the Canadian defence industry. The only time they broke from their attacks was during the last election, in an effort to hold onto a seat in London. In October 2015, when asked if he would cancel the sale of arms to Saudi Arabia, the leader of the NDP declared, “You don't cancel a commercial accord retroactively, it's just not done”. He was not alone. Even the hon. member for London—Fanshawe stated that it was a signed contract and they would honour the contract. Now that the election is over, the NDP has once more chosen to abandon the defence industry and to abandon the hard-working families it supports.
We recognize that the export of arms requires rigorous oversight and regulation, and we are aiming high. The nature of the products requires that sales be strictly controlled, but this does not mean that the industry should be shut down.
As I have said in the House on previous occasions, Canada's export controls are among the best in the world. Canada controls the export of not only military goods but also dual-use goods and technology, nuclear goods and technology, goods and technology pertaining to missiles and unmanned aerial vehicles, and any goods and technology that could be used to create chemical or biological weapons. All applications for permits to export controlled goods or technology are carefully reviewed against the full range of Canada's defence and foreign policy interests. The purpose of this review is to ensure that exports from Canada do not cause harm to Canada or our allies, do not undermine national or international security, do not contribute to regional conflicts or instability, do not contribute to the development of weapons of mass destruction or their means of delivery, are not used to commit violations of human rights, and are consistent with economic sanctions.
We are very encouraged that members of the House share our government's keen interest in maintaining high standards for peace, security, and human rights. I note that while the export control system has served Canada well, there is always room for improvement and the government's commitment to enhancing the rigour and transparency of the process is under way. We are pursuing many parallel paths to deliver on this commitment.
As promised during the election, Canada will become a state party to the United Nations' Arms Trade Treaty, ATT, in 2017. Canada is committed to joining the Arms Trade Treaty. The implementation of this multilateral treaty by Canada and other states parties would reduce the unregulated flow of weapons that contribute to terrorism, transnational organized crime, and violations of human rights. These goals are consistent with Canadian values and our policy objectives of reducing conflict and instability, promoting human rights, and countering terrorism.
The previous Harper government was wrong not to join the Arms Trade Treaty. By joining the treaty, Canada would come into line with our NATO and G7 partners. This would allow Canada to, among other things, participate fully in ATT meetings of states parties, enabling the government to be more effective in its push for more transparency and accountability in the global arms trade both in Canada and worldwide.
It is important to note that Canada already meets the vast majority of ATT obligations. In fact, the ATT was designed to bring other countries up to the type of high standard that Canada already applies. For example, Canada already controls the export of all ATT-relevant goods, already has measures in place to prevent diversion of exported goods, and already assesses all proposed exports of all military goods, not just the goods that the ATT explicitly covers but for the types of risks identified in the ATT such as the potential for an export to be diverted to terrorist activities, used for purposes contrary to international peace and security, or to commit violations of human rights.
I would point out that Canada currently conducts these assessments for all proposed exports of all goods that are subject to export control, not solely the military goods required by the ATT. Indeed, Canada fully complies with all but two of the 28 articles in the treaty: article 7, regarding export assessment criteria, and article 10 on brokering.
Article 7 of the ATT requires states to take a number of factors into consideration when considering whether to authorize an export. In fact, we already take these factors into account as a matter of policy, but now, they are added into law.
Specifically, an amendment to the Export and Import Permits Act and its associated regulations would create a legal requirement for any minister of foreign affairs to take the ATT criteria into account in assessing all proposals to export military goods controlled by the treaty, such as tanks, small arms, and light weapons.
The ATT also requires that its members not authorize an export when there is an overriding risk of negative effects that cannot be mitigated and when that risk overrides any positive benefits that could come from the export. We will outline a clear policy with respect to how the Minister of Foreign Affairs will apply this overriding risk level.
Article 10 of the ATT requires each state to regulate brokering. Arms brokering is when a Canadian facilitates, or is a middle man, for an arms transfer between entities outside Canada and thus not captured by Canadian export controls. This would be a new regulatory area for the government, and is a good example of where we are enhancing the rigour of our current export controls.
We will introduce legislation later this fall to make these changes. Once the legislation and regulations are in place, we will submit an instrument of accession to the UN Secretary General. Our goal is to ensure that Canada becomes an ATT state party in 2017.
The previous government claimed that ratification of the ATT might affect domestic gun laws, and it is important to clarify that this is completely and categorically untrue. The treaty governs the import and export of conventional arms, not the trade in sporting firearms that are owned and used by law-abiding Canadian citizens. Joining the treaty will have no impact on how gun ownership is regulated in Canada.
In addition to ATT accession, and together with the Minister of International Trade, we have announced other measures to further enhance the transparency of Canada's export controls system. The annual reports on the administration of the Export and Import Permits Act, and on military exports from Canada, will be more transparent, more user-friendly, and more informative, and they will be tabled on time, every year, by law.
Going forward, the public and other key stakeholders could rely on these reports being tabled no later than May 31 each and every year. As in the past, all reports will continue to be published online as soon as they are tabled in Parliament to ensure that Canadians are fully apprised of activities under the Export and Import Permits Act, and of the value, scope, type and destination of military goods exported from Canada.
This is just the beginning. As we move forward with our plan to join the ATT, NGOs, and industry are being consulted on how we can make these reports more informative, transparent, and easy to understand. We are confident we can find the right mix of additional information to enhance transparency without harming Canadian business or the livelihood of Canadians who are employed in this important commercial sector.
As the government works to deliver on these commitments, it is important that we do so in a manner that maintains the competitiveness of the defence and security industry in Canada.
In addition to serving as a crucial source of supply for the Canadian Armed Forces and directly contributing to the protection of Canada, the defence industry drives innovation. This helps to keep Canada at the leading edge of technology among the G7 nations, not just defence technology but in the information, aviation, automotive, and many other sectors.
The defence industry is interwoven throughout the Canadian and North American industrial sector, and contributed $6.7 billion to Canada's GOP in 2014. It represents more than 70,000 jobs for Canadians. These are high-paying, highly-skilled, middle-class jobs spread across more than 700 firms located in every province and territory of the country. These jobs pay salaries that are on average 60% above the average Canadian industrial wage. Many of these jobs are union jobs.
In short, these are good jobs that this government will work hard to protect, which is why it is so fundamentally disappointing to see the NDP working to undermine these jobs. It is particularly disappointing that the member for London—Fanshawe, who has 3,000 of these good jobs in her own riding, is failing to speak up in support of her constituents.
Each region of Canada has seen substantial investment and development of specializations in various defence industrial activities. For example, there are strong aerospace clusters in Quebec and western Canada, an Ontario-based land vehicles cluster, and shipbuilding clusters on two coasts. Canadian defence and security products are sought after by Canada's allies and security partners abroad. and the defence industry contributes almost $7 billion to Canada's GDP. Canadian companies are innovative and competitive. When they succeed, it is good news for our manufacturing sector and our economy.
Military and strategic goods are subject to strict controls, precisely because of the uses to which they are designed to be put. For these reasons, exporters looking to fill the overseas demand for Canadian products are required to comply with Canada's export control system. None of this changes the fact that Canada expects all Canadian companies operating abroad to respect Canadian and international law, as well as human rights.
Canada promotes improved performance in this regard through the UN guiding principles on business and human rights, the OECD guidelines for multinational enterprises, and the voluntary principles on security and human rights showcased in Canada's updated corporate social responsibility strategy. Canada's missions abroad foster partnerships between companies, governments, and civil society to promote respect for human rights. The Minister of International Trade is working to improve corporate social responsibility requirements each and every day.
The opposition motion notes the important role of parliamentarians in holding governments accountable for Canadian engagement abroad. Indeed, department officials and their colleagues across the public service regularly appear before the committees studying these matters. Specifically, we look forward to working with the House of Commons Standing Committee on Foreign Affairs and International Development in the coming months as we bring forward implementing legislation for Canada's accession to the arms trade treaty.
We respect and appreciate the work of existing committees in both the House of Commons and the Senate that study these issues. These committees are empowered and independent, and they are well within their mandates to study what they want, including Canada's arms trade.
The creation of the committee suggested is unnecessary and would merely create additional excessive burdens on an already highly regulated and monitored industry. Perhaps that is what the NDP wants, to overburden industry, I am not sure, but the member for London—Fanshawe certainly has not expressed support for the families she represents.
Canadians demand that the government effectively monitor and control the exportation of Canadian arms. Canada already has a rigorous process and there is room for improvement. Our government is responsibly responding to this need. Work is under way to live up to our commitments to improve the system, to accede to the arms trade treaty. We look forward to moving this along in the coming weeks and months.