The Business Council of Canada, a group that represents 170 chief executives of the country’s largest companies, has released a report urging the federal government to enhance its national security powers to protect Canadian businesses from foreign threats.
Foreign interference and espionage pose serious risks
The report, titled “Protecting Canada’s Economic Security in an Uncertain World”, warns that Canadian companies face “unprecedented dangers” from foreign states such as China, Russia and Iran, who seek to undermine Canada’s economic competitiveness and national security. The report cites examples of “malign foreign interference”, espionage, cyberattacks, “co-opted academic research” and punitive trade actions that are “weaponized” by foreign states.
The report says that these threats have increased in recent years, especially during the COVID-19 pandemic, as some countries have exploited the global crisis to advance their interests at the expense of others. The report also notes that Canada is a target of foreign influence campaigns that aim to sway public opinion and political decisions on issues such as Huawei, 5G technology, human rights and democracy.
The report argues that these threats pose serious risks to Canada’s sovereignty, prosperity and security, and calls for a “whole-of-government” approach to address them. The report recommends that the government adopt a comprehensive national security strategy that includes clear objectives, roles and responsibilities, resources and accountability mechanisms.
National security reforms needed to protect Canadian businesses
The report also urges the government to reform its national security laws and policies to better protect Canadian businesses from foreign threats. The report suggests that the government should:
- Strengthen the Investment Canada Act to ensure that foreign investments do not pose risks to Canada’s national security or critical infrastructure. The report recommends that the government expand the scope of national security reviews, lower the threshold for triggering reviews, increase transparency and communication with stakeholders, and impose stricter penalties for non-compliance.
- Enhance the Export and Import Permits Act to prevent the export of sensitive technology or data to foreign adversaries. The report recommends that the government update the list of controlled goods and technologies, streamline the export permit process, increase enforcement and oversight, and coordinate with allies on export controls.
- Improve the Security of Information Act to prevent the leakage of classified information or intellectual property to foreign actors. The report recommends that the government clarify the definition of “special operational information”, increase awareness and training on security protocols, establish a central authority for information security, and strengthen whistleblower protection.
- Update the Foreign Missions and International Organizations Act to regulate the activities of foreign diplomats and agents in Canada. The report recommends that the government require foreign missions and organizations to register their personnel and activities, monitor their compliance with Canadian laws and norms, and impose sanctions for violations.
- Create a new Cybersecurity Act to protect Canada’s cyberspace from malicious attacks. The report recommends that the government establish a national cybersecurity framework that defines roles and responsibilities, sets standards and best practices, provides guidance and support, and enforces compliance.
Business Council of Canada seeks collaboration with government
The report concludes by emphasizing the importance of collaboration between the government and the business community to protect Canada’s economic security. The report says that the Business Council of Canada is ready to work with the government to share information, expertise and resources, and to advocate for effective national security measures.
The report comes as Ottawa prepares to unveil a package of national security reforms in the weeks ahead. The government has indicated that it will introduce new legislation to modernize its national security framework and address emerging threats such as foreign interference, cyberattacks and disinformation.
