Question Period Note: Addressing National Security Threats to the Economy

• This government takes all threats to national security seriously, and our security and intelligence community remains committed to identifying, mitigating, and responding to the modern and sophisticated risks facing Canada.

• As national security risks to our economy and sovereignty continue to evolve, Canada needs a targeted approach to better identify, understand, mitigate, and protect against these threats.

• That is why the Government is strengthening Canada’s ability to address national security threats to the economy, as part of our efforts to bolster economic growth, prosperity and Canada’s strategic autonomy. A cohesive and integrated approach to Canada’s national security requires cooperation across government and beyond. That is why we continue to consult with key stakeholders in the business community, academia, the provinces and territories, Indigenous governments, and civil society.

National Security Threats to the Economy
• Canada’s open and globalized economy brings risks as well as benefits. The COVID-19 pandemic brought to light significant vulnerabilities in our economy and highlighted the importance of securing partnerships to shore up critical supply chains.
• In the context of recent geopolitical shifts we need to reassess our approach to address national security threats to the economy. A strong, independent and resilient economy needs to be free from national security threats.

Economic-based Threats
• Foreign investment from hostile actors in strategic sectors and industries important to Canada’s national security;
• Foreign hostile actors’ access to or acquisition of sensitive technology, and expertise; or
• Foreign hostile actors’ funding partnerships with our universities and research institutions to gain access to cutting-edge technology and intellectual property.

Government of Canada Tools to Protect the Canadian Economy
• Canada currently has defensive tools in the economic security space, focused on economic-based threats to national security (threats entering Canada via economic activities such as investment and research partnerships).
• Public Safety (PS) is working to broaden this approach, to focus on national security threats targeting our economy, by building resilience, taking a whole-of-economy perspective of economic security, and with the deliberate objective to secure Canadian control and/or unimpeded access to strategic economic assets, both tangible and intangible.
• Some current tools include:
o the Controlled Goods Program (CGP), administered by Public Services and Procurement Canada (PSPC);
o the Investment Canada Act (ICA), administered by Innovation, Science and Economic Development (ISED), with PS leading the ICA-national security review of proposed foreign investments that threaten Canada’s national security;
o the Policy on Sensitive Technology Research Affiliations of Concern prevents funding of sensitive research if there are affiliations with organizations connected to the state security entities that could pose a risk to Canada’s national security;
o cyber security programs led by PS protect and aid Canadian businesses in the recovery from cyber incidents, including the Federal Cyber Incident Response Plan;
o the National Strategy for Critical Infrastructure which established a broad definition and 10 sectors that cover most of the Canadian economy; and
o the Export and Import Permits Act (EIPA), administered by Global Affairs Canada.

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