Madam Speaker, let me begin by addressing the central claim we have heard repeatedly, which is that Bill C-233 would somehow decimate Canada's defence industry and disrupt integrated supply chains. That assertion is simply incorrect.
Bill C-233 would not prohibit exports. It would not restrict production. It would not alter the list of controlled goods. It would standardize permit requirements for items already listed under group 2 of Canada's export control list by applying to U.S.-bound exports the same permit review that already applies to exports to every other destination. Canada already administers a global export permitting system. Extending permit review to U.S.-bound exports would not create a new regulatory regime. It would remove a destination-based exemption.
Regulatory oversight is not prohibition. Conflating the two is simply misleading. Other state parties to the Arms Trade Treaty manage highly integrated defence supply chains while still applying oversight mechanisms, including open and general licences where appropriate, and the United States is part of that regime. Administrative efficiency and legal compliance are not mutually exclusive.
We have also heard that this bill would weaken Canada's role in the North Atlantic Treaty Organization and delay support to Ukraine. Nearly all members of the North Atlantic Treaty Organization are state parties through the Arms Trade Treaty. Aligning Canada's export controls with our treaty obligations would strengthen our credibility within the alliance. Military assistance to Ukraine is transferred through Department of National Defence mechanisms, not through the commercial export permitting processes that Bill C-233 would address.
This legislation would concern commercial exports primarily to the United States. It would not impede direct government-to-government military aid. In fact, ensuring that Canadian-origin components are assessed before entering the U.S. supply chain reduces the risk of diversion to high-risk end-users. That objective is entirely consistent with NATO's collective security framework.
There is also the claim that Canada already exceeds the ATT requirements. Yes, Canada applies vigorous human rights criteria when issuing permits. That is not in dispute. The structural issue is that most conventional arms exports to the United States require no permit at all. That means no individual risk assessments and no comprehensive reporting.
Annual reports tabled since the 1990s do not capture the majority of U.S.-bound transfers because those exports are exempt from permits. A reporting framework cannot be considered complete when most of the exports fall outside of its scope. We are told that the U.S. exemption is not a loophole and that it reflects a long-standing bilateral defence relationship. That may be true, but its practical effect is that most conventional weapons exports to the United States proceed without permit, without assessment and without detailed transparency. This is, by definition, a regulatory gap.
Canada and the United States do not apply identical risk thresholds. The United States may authorize transfers to end-users that Canada would deny directly. Without a Canadian permit requirement, Canadian-origin components can enter the U.S. system and be transferred onward without Canada ever conducting its own risk assessment. We have seen this concern in reporting by CBC News, which documented that Canadian-origin military goods moved through the United States and onward to Israel during a period when the Minister of Foreign Affairs stated that Canada was not exporting arms to Israel. This example underscores the oversight gap that Bill C-233 is designed to address.
Former Liberal cabinet ministers Allan Rock and Lloyd Axworthy recently argued in a Globe and Mail op-ed that Canada's credibility as a champion of the rules-based international order depends on aligning practice with principle. They reminded us that Canada played a leadership role in building global arms control norms, from the Ottawa Treaty to the Arms Trade Treaty. The exemption shields the majority of our transfers from scrutiny and undermines that legacy. They were clear: The issue is not whether we trust the United States but whether Canada exercises its own sovereignty and responsibility to assess the risk that Canadian-origin arms could contribute to serious violations of international humanitarian or human rights laws.
I urge all members to look at the facts and vote in support of Bill C-233.
