International Trade Law News

For those readers interested in Canadian export control issues, Canada's Controlled Goods directorate is organizing a series of domestic and export control seminars across Canada this year.

These full-day seminars will review the role of Canadian industry in safeguarding strategic and sensitive goods and technology, with a focus on Canada's Controlled Goods Program, Canadian export controls, and contract security as it relates to federal government procurement and will cover the following issues:

• Overview of Export Control Process
• Applying for an Export Permit Using Export Controls Online (EXCOL)
• Understanding the Application Review Process
• Common Errors Made by Exporters

• Controlled Goods Directorate
• Export Controls Division (Foreign Affairs and International Trade Canada)
• Customs and Excise Program (Royal Canadian Mounted Police)
• Canadian Industrial Security Directorate
• Canada Border Services Agency

Ottawa – May 29, 2008
Montreal – June 11, 2008
Toronto – June 25, 2008
Halifax – September 2, 2008
Vancouver – September 16, 2008
Calgary – September 18, 2008
Winnipeg – October 8, 2008

Labels: Canada

Labels: Canada, DDTC, ITAR

The U.S. and Canada today announced that they have completed an exchange of letters documenting an arrangement between the U.S. Department of State and the Canadian Department of National Defence (DND) permitting dual citizens in Canada to work on certain military projects that are subject to the U.S. International Traffic in Arms Regulations (ITAR).

Under the arrangement announced today, the State Department's Directorate of Defense Trade Controls (DDTC) will implement procedures to grant access to defense articles and services exported to Canada under the ITAR to DND personnel who are Canadian citizens holding a minimum secret-level security clearance, including dual nationals. DND personnel covered by this agreement include Canadian Forces members, civilian employees, embedded contractors and employees of other federal government departments and agencies working within DND. Canadian standards and procedures will continue to be used to process security clearances.

This agreement, which has been negotiated for more than one year, was necessary since the U.S. has been limiting access to ITAR-controlled defense articles and services to Canadian citizens, and denying access to Canadian citizens who possess dual nationality with a U.S. proscribed country. Canada objected to these restrictions claiming they would be inconsistent with the Canadian Charter of Rights and Freedoms and human rights legislation, which prohibit discriminatory treatment of Canadian citizens, regardless of their country of origin or other nationality. This arrangement will allow Canada to proceed with the purchase of U.S.-produced CH-47 helicopters, C-17 transport aircraft and C-130 aircraft.

The U.S. and Canada both indicated that they consider this arrangement as an important first step in resolving these ITAR-related issues. The State Department has offered to conclude similar arrangements with other Canadian government agencies provided they can assure the U.S. of their commitment to "vigorously implement and oversee similar procedures".

The press releases issued by the U.S. Department of State and Canada's Department of National Defence can be found here and here.

Labels: Canada, ITAR

Canada's The Globe and Mail newspaper reported today that the U.S. and Canada have reached an agreement on how to handle the recent controversy involving dual citizens that work on military projects in Canada which are subject to the U.S. International Traffic in Arms Regulations (ITAR). The paper reports that:

The Harper government has come to terms with Washington on a deal exempting Department of National Defence employees from U.S. restrictions that prevent dual nationals from 17 countries from having access to data related to U.S. military technology.

Under the deal, the exemption could eventually be extended to other federal bureaucrats, and then, with the agreement of the U.S. government, to people in the private-sector industry.

"It's a step-by-step approach," a federal source said.

Labels: Canada, ITAR

Canada's Export Controls Division today posted an announcement on the agency's website advising Canadian exporters that the Export and Import Permits Act (EIPA) was recently amended to clarify specific controls over technology contained on Canada's Export Control List (ECL).

According to the Export Controls Division, the amendments to Canada's export control law:

Clarif[ies] specific controls over technology, including technical data, technical assistance and information necessary for the development, production or use of military and other strategically sensitive goods listed in the Export Control List (ECL). The amendments also provide explicit authority to control transfers, including electronic transfers, of technology listed in the ECL. These changes respond to the need for enhanced controls over the export and electronic transfer of military and strategically sensitive technology.

Labels: Canada, Export Controls

Canada's The Globe and Mail newspaper today reports that ITAR "restrictions on military purchases are causing so much paralysis in Ottawa" that the Canadian Government proposed "scrapping its project" to purchase Sikorsky Cyclone helicopters to replace its aging fleet of Sea Kings. The paper reports that "the Canadian government is refusing to sign documents containing ITAR restrictions -- such as technical assistance agreements and export licences -- that are crucial to the production of the Sikorsky Cyclones."

The article also indicates that "some federal officials feel that a solution to ITAR is close to being made public. However, senior officials in the defence industry fear the new rules will favour only government bureaucrats, and that employees in the private sector will continue facing the same discriminatory measures."

Labels: Canada, Export Controls, ITAR