Economic-based Threats to National Security
Background
In a few short years Canada’s threat environment has evolved dramatically. With a changing global economy, the rapid worldwide diffusion of technology, and a shifting international distribution of power, Canada finds itself facing increasingly complex and sophisticated economic-based threats from both state and non-state actors. Potential adversaries have developed new and aggressive multi-dimensional strategies to acquire sensitive technology, critical infrastructure, intellectual property and personal data that can advance their military and intelligence capabilities and offer them potentially new avenues for economic coercion.
In an environment where technology is increasingly becoming a domain of interstate competition, Canada’s most important security partners have been strengthening their capacities to defend against these threats [Redacted].
Canada’s S&I community has identified four gateways which state and non-state actors are using to exploit Canadian technology and expertise, obtain personal data, and access critical infrastructure – all of which create economic-based threats to national security. These four gateways or threat vectors include - foreign investment, trade and exports, knowledge, as well as rights and licenses. While Canada does have some tools/programs in place to control and limit access to these gateways, each continues to present unique threats.
Status
Since early 2019, the Task Force on Economic Security has been working with interdepartmental stakeholders [Redacted].
Considerations
[Redacted]
(iii) International Stakeholders - Canada’s most important security partners have been strengthening their capacities across a broad front to defend against the same threats. The OECD notes in a report from March 2019, that “in the past two years alone, nine out of the
world’s largest ten economies have modified or introduced new, comprehensive policies to manage acquisition- or ownership-related risk to essential security interests”.
In 2018 the United States enacted comprehensive changes to their foreign investment and export control regimes to better address these risks.
[Redacted]
(viii) Timing – Budget 2019 contained funding, starting in FY 2018-2019, for additional FTEs for Departments which currently administer our economic security programs. [Redacted]
Next Steps
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