Canadian industry is struggling to cope with changes to US export controls which have curtailed its access to US technology and markets.
The special status previously accorded to Canadian companies has been removed following changes to US International Trade in Arms Regulations (ITARs). As a result, US companies now need export licences to supply technical data to Canadian firms.
Immediate effects range from the denial of a licence for Orbital Sciences to supply the spacecraft bus for Canada's Radarsat-2 earth observation satellite, to the impounding of Rolls-Royce Nene engines sent to the USA for overhaul, under Kelowna Flightcraft's contract to upgrade Bolivian Lockheed T-33s.
Industry minister John Manley says US moves to tighten the ITAR regime have "serious consequences" for Canadian industry, which makes over C$1 billion a year in defence exports to the USA. Aerospace Industries Association of Canada president Peter Smith says the new restrictions could have a "devastating effect".
Negotiations continue on easing the restrictions. Manley says Canada is tightening its export controls to bring them in line with the USA's, but issues remain. These include Canada's concept of dual nationality. "Our human rights laws prohibit discrimination based on nationality," he says, but US ITARs "place restrictions on Canadian nationals who hold another nationality".
Source: Flight International
