Businesses Assert That Canada's Economic Security Has Been Overlooked by Successive Governments

09 Sep, 2023

Businesses Assert That Canada's Economic Security Has Been Overlooked by Successive Governments

Canada may appear to have implemented measures to safeguard its businesses in recent years, such as limiting Chinese companies' investments in the country's critical minerals sector and introducing cybersecurity legislation for protecting critical infrastructure. However, a newly released report from the Business Council of Canada, representing approximately 150 companies, including tech giants like Microsoft Canada Inc. and Google Canada, contends that successive Canadian governments have underestimated and neglected the nation's economic security.

The report emphasizes that escalating geopolitical tensions, coupled with technological advancements in the realm of cyberspace, have positioned Canada in a security environment that is both unprecedented and highly intricate. These factors have created a security landscape characterized by complexity and unpredictability.

According to the report titled "Economic Security is National Security," released on September 7th, Canadian companies across diverse regions and sectors of the economy now confront unparalleled risks. They operate within a competitive landscape where traditional private commerce is consistently disadvantaged.

The report, drawing insights from consultations with businesses, security experts, and former government officials, advocates the pressing need for a new national security strategy, with a central focus on economic security. It highlights the fact that Canada's last national security policy was enacted in 2004, a time when terrorism and weapons of mass destruction dominated security concerns. These policies scarcely addressed contemporary economic security threats.

In recent years, Canada has, in tandem with the United States, taken steps to restructure its supply chain, diverting it away from nations like China and Russia towards more amicable trading partners due to escalating geopolitical tensions. While Canada has made strides by introducing bills aimed at reinforcing the Investment Canada Act and enhancing cybersecurity policies, these efforts are viewed as fragmented reforms, and their alignment within a broader national security framework remains unclear.

Contrastingly, some of Canada's allies, including Japan, the United States, and Germany, have articulated security strategies that place economic security at the core of their national security policies. A similar approach in Canada is recommended to streamline decision-making and provide clear directives for addressing these multifaceted challenges.

Trevor Neiman, Director of Digital Economy and Legal Advisor at the Business Council of Canada, expressed concerns regarding the government's current approach, which he described as reactive and ad hoc. He emphasized the importance of long-term proactive planning, particularly given the involvement of state-sponsored actors with strategies that transcend typical political cycles.

The report also suggests amendments to the Canadian Security Intelligence Service Act to enable proactive intelligence sharing with businesses targeted by threats, in addition to government agencies. Additionally, it underscores the necessity of fortifying Canada's international alliances, proposing the creation of a trade pact akin to the North Atlantic Treaty Organization (NATO) for economic defense among allies. Furthermore, it highlights the need for increased research in this critical area to better navigate the evolving landscape of economic security threats.