The Business Council of Canada, a group representing more than 150 chief executives of Canada’s largest corporations, has released a report calling on the federal government to beef up its national security measures to protect Canadian businesses from foreign interference and espionage.
Report highlights threats to Canadian economy and competitiveness
The report, titled “Protecting Canada’s Economic Security: A National Security Strategy for Business”, was released on Wednesday, September 7, 2023. It warns that Canadian companies face a range of threats that “erode Canada’s economic competitiveness by tilting the playing field to others’ advantage”.
The report identifies four main types of threats: cyberattacks, intellectual property theft, foreign investment and influence operations. It says that these threats can undermine Canada’s innovation, productivity, trade and sovereignty.
The report cites several examples of how these threats have affected Canadian businesses in recent years, such as:
- The 2021 cyberattack on the Colonial Pipeline in the United States, which disrupted fuel supplies and caused gas shortages in several states. The report says that Canadian energy infrastructure is also vulnerable to similar attacks.
- The 2020 arrest of two Canadians in China on espionage charges, which the report says was a “retaliatory measure” for Canada’s detention of Huawei executive Meng Wanzhou at the request of the United States. The report says that this case has created “a chilling effect” on Canadian businesses operating in China.
- The 2019 takeover of Aecon Group Inc., a leading Canadian construction company, by China Communications Construction Co., a state-owned enterprise. The report says that this deal raised concerns about the potential transfer of sensitive technology and information to a foreign government.
- The 2018 indictment of two Chinese nationals for allegedly stealing trade secrets from several companies, including Nortel Networks Corp., a former Canadian telecommunications giant. The report says that this case illustrates how intellectual property theft can contribute to the decline of a once-dominant company.
Report recommends actions for government and business
The report urges the federal government to take several actions to enhance its national security capabilities and protect Canadian businesses from foreign threats. Some of these actions include:
- Establishing a national security strategy for business, which would outline the roles and responsibilities of different government agencies and provide clear guidance and support for businesses facing national security challenges.
- Increasing the funding and resources for national security agencies, such as the Canadian Security Intelligence Service (CSIS), the Communications Security Establishment (CSE) and the Canadian Centre for Cyber Security (CCCS), to enable them to detect, deter and respond to threats more effectively.
- Strengthening the Investment Canada Act, which regulates foreign investment in Canada, by expanding its scope, enhancing its transparency and enforcing its conditions more rigorously.
- Enhancing the collaboration and coordination among government agencies, businesses, academia and allies on national security issues, such as sharing information, best practices and intelligence.
The report also calls on Canadian businesses to take more responsibility for their own national security and adopt a “security mindset”. It recommends that businesses:
- Conduct regular risk assessments and audits of their assets, operations and supply chains to identify and mitigate potential vulnerabilities.
- Implement robust cybersecurity measures and policies to protect their data, networks and systems from unauthorized access or disruption.
- Develop contingency plans and crisis management protocols to prepare for and respond to potential incidents or emergencies.
- Engage with government agencies and other stakeholders to seek advice, assistance and cooperation on national security matters.
Report aims to raise awareness and spark dialogue
The report’s authors say that their goal is to raise awareness and spark dialogue among government officials, business leaders and the public about the importance of national security for Canada’s economic prosperity and well-being.
They say that they hope that their report will serve as a “catalyst for action” and encourage more collaboration and coordination among different actors to address the challenges and opportunities posed by national security in a changing global environment.
