Safeguarding Sensitive Technologies: Export Security

On September 1, 2023, the Canadian Minister of Foreign Affairs registered an amendment to General Export Permit No. 41 (GEP 41), which governs the export of dual-use goods and technology. This amendment, made under the Export and Import Permits Act, updates export regulations to align with Canada’s international commitments and security considerations. The key changes in this amendment include the addition of new categories to the list of “unauthorized goods and technology.” Specifically, it prohibits the export of items related to the development, production, or use of rocket systems or unmanned aerial vehicles (UAVs) with a range of 300 km or greater. Furthermore, the amendment updates a reference in the Export Permits Regulations (EPRs) to reflect recent renumbering.
Canada’s participation in the Wassenaar Arrangement and its bilateral agreements with the United States necessitate controls over the export of certain dual-use and strategic goods. GEP 41 was first introduced in 2015 to facilitate the export of lower-risk items without requiring pre-approval from Global Affairs Canada (GAC), in contrast to individual export permits, which involve a more complex application process. The Export Control List (ECL) identifies goods and technologies that require export permits, balancing national security with Canada’s interests as a trading nation, while enabling Canadian businesses to compete effectively in the global marketplace.
The updated GEP 41 prohibits the export of long-range UAVs and rocket systems, aligning with the objectives of the Missile Technology Control Regime (MTCR). While the GEP allows for the export of certain components that could be used in such systems, none of the items eligible under GEP 41 are included in the MTCR’s Technical Annex, which lists controlled items relevant to missile development. The amendment serves two primary purposes: to explicitly classify the export of items intended for long-range UAVs or rocket systems as unauthorized, thereby enforcing stricter controls, and to update the reference in GEP 41 to ensure clarity and compliance with recent regulatory changes.
By tightening regulations on dual-use technologies and aligning with international standards, the Canadian government aims to enhance both national and international security while supporting trade and innovation. This update underscores Canada’s commitment to responsible export practices and the safeguarding of sensitive technologies.
Canada (General Export Permit No. 41) September 13, 2023