Question Period Note: Canadian Commercial Corporation (CCC) Overview

The Canadian Commercial Corporation is an important member of the international trade portfolio responsible for government-to-government contracting.

• Budget 2021 established a $13 million annual appropriation to ensure that CCC can help Canadian companies win U.S. defence contracts under the Defence Production Sharing Agreement, supporting growth and jobs here at home.
• CCC works at arms-length from the government in managing financial transactions.
• CCC has put in place a robust Responsible Business Conduct Framework to ensure that its due diligence assessments reflect Canada's international human rights obligations.

As Canada's government-to-government contracting agency, CCC acts as the prime contractor to supply Canadian goods and services to foreign governments, and sub-contracts with a Canadian exporter, passing on all contractual obligations.

CCC administers the Canada-U.S. Defence Production Sharing Agreement (DPSA), which allows Canadian companies to compete for U.S. Department of Defense contracts on the same terms as domestic suppliers.

The $13 million annual appropriation for the administration of the DPSA, reinstated in Budget 2021, will enable CCC to continue effectively supporting Canadian companies bidding on U.S. defence contracts. In 2019-20, the DPSA accounted for 74% of CCC's total value of signed contracts, and approximately 60% of the contracts signed with SMEs.

In 2019-20, CCC served 157 customers and signed $1.25 billion worth of contracts with foreign buyers and Canadian exporters, including $928 million under the DPSA.

The Minister of International Trade is accountable to Parliament for CCC and recommends approval of its annual corporate plan to the Treasury Board, with the Minister of Finance approving its Borrowing Plan.

CCC's day-to-day operations are at arm's length from the Government. It is governed by a Chair and Board of Directors. The President and the Chair are appointed by the Governor in Council on the recommendation of the Minister of International Trade. The Directors are appointed by the Minister of International Trade. Douglas Harrison is the current Chair of CCC's Board of Directors and Bobby Kwon is the current President.

Policy objectives and priorities for CCC are established by the Minister of International Trade through an annual Statement of Priorities and Accountabilities (SPA). The 2021 SPA directs CCC to prioritization the DPSA; achieve financial self-sustainability for non-DPSA business lines; reinforce its responsible business conduct policies and practices; support diversity and inclusive economic growth and climate priorities; collaborate with portfolio partners through the Business, Economic and Trade Recovery (BETR) team; and develop a dividend policy.

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