Mr. Speaker, I would like to take this opportunity today to discuss Motion No. 410 as it relates to Iran. We are all disturbed by Iran's erratic behaviour and the risk it poses to both the international community and its own people. We share the view of the hon. member opposite that it is now time for clear action. This is why we are pleased to fully support the member's motion.
I unequivocally agree that there is a need to maintain pressure on Iran to change its egregious behaviour. Indeed, our government is already actively engaged in efforts to encourage Iran to break away from its current radical policies and begin to behave like a responsible member of the international community.
This is reflected in our approach to bilateral relations with Iran, which is governed by a tightened policy of controlled engagement. The policy limits official bilateral dialogue to the following four topics: the case of murdered Canadian Iranian Zahra Kazemi; Iran's human rights performance; Iran's nuclear program; and Iran's role in the region.
Within the limitations of the controlled engagement policy, Canada also prohibits the opening of Iranian consulates, cultural centres and Iranian banks in Canada. Furthermore, it proscribes the establishment of direct air links and high level visits.
Canada also works within a multilateral system and with our international partners to sustain pressure on Iran. Canada has fully implemented the binding economic measures called for under United Nations Security Council resolutions 1737 and 1747.
On March 3, 2008, the United Nations Security Council issued resolution 1803 in response to Iran's failure to comply with its international obligations under previous UN resolutions 1696, 1737 and 1747. This resolution will place further pressure on Iran to suspend all sensitive nuclear activities, including uranium enrichment and spent fuel reprocessing activities. As with previous UNSC resolutions 1737 and 1747, Canada will ensure its full compliance with the decisions of the Security Council through Canadian domestic law.
The imposition of these UN sanctions sends a strong political signal to Iran that it must change its behaviour with respect to uranium enrichment activities, or continue to face harsh multilateral sanctions from the international community.
Canada has significantly restricted its interactions with Iran through its domestic law under the regulations implementing the United Nations resolutions on Iran. The regulations impose an embargo on export to Iran of certain goods and technologies that could contribute to Iran's uranium enrichment related activities or to the development of nuclear weapons. The regulations also impose an assets freeze against designated persons and entities engaged in Iran's nuclear activities. In addition, the regulations impose a prohibition on the provision of technical or financial assistance related to the goods and technology subject to the export ban.
In addition to existing regulations, resolution 1803 includes: a travel ban for targeted Iranian officials; a freeze of assets of newly designated Iranian companies and officials; and additional restrictions on the sale of identified dual use items to Iran. As well, the resolution calls for governments to withdraw financial support for trade with Iran, to dissuade domestic financial institutions from entering into transactions that could support Iran's nuclear activities, and to inspect cargo going into and out of Iran via identified carriers.
The commitment of Canada and other like-minded states to the UN sanctions against Iran sends a strong and clear signal to Iran that it must halt its uranium enrichment activities.
The Government of Canada has also supported and responded to the warning of the Financial Action Task Force on the risks posed to the international financial system by deficiencies in Iran's anti-money laundering and counter-terrorist financing regime. The Office of the Superintendent of Financial Institutions recently issued an advisory drawing attention to the FATF recommendation for heightened attention to transactions relating to Iran as a result of these concerns. This advisory is consistent with the due diligence obligations of Canadian financial institutions under the Iran regulations.
The business community is well aware that doing business with Iran is a risky proposition. This is clearly reflected in our trade statistics which have shown a steady decline in trade with Iran since 2001. It is no coincidence that at a time when Iran's neighbours are enjoying an unprecedented economic boom resulting from high oil prices, Iran, which benefits from enormous oil and gas reserves, is suffering an economic meltdown.
The collective efforts of the international community and the chill they have put on the prospect of doing business with Iran had an impact. There is little prospect that this will change so long as Iran continues to act in a way which contravenes accepted international norms.
Iran's continued support for the militant groups in the region is a case in point. The threat posed to international peace and security and regional stability by groups supported by Iran is undeniable. Iran's support for Hezbollah, Hamas and Palestinian Islamic jihad, coupled with its backing of violent insurgents in Iraq, has helped destabilize a region of strategic global importance. Canada must continue to collaborate with the international community and with its multilateral partners to address its concerns regarding Iran's spoiler role in the region.
Canada stands ready to respond to positive developments in Iran. We welcome the interest and advice of the hon. member for York Centre and we welcome this motion today.
Let me conclude by reiterating what my colleague has already said, that this government will continue to work on strategic, focused and ultimately effective actions to respond to the situation in Iran.
