The Implementation of Strategic Export Controls in Canada

This article describes the institutional characteristics of Canada's export controls system and assesses its impact on business firms. The authors examine whether or not unnecessary constraints are imposed on the activities of business firms, i.e., constraints that do not contribute to the achievement of national goals. The results of a survey conducted amongst Canadian firms demonstrate that a number of unnecessary constraints currently result from the Canadian export controls system. The use of export controls in Canada is compared with the sytem prevailing in the United States. The main conclusion of this comparison is that the exogenous nature of the Canadian export control system leads to high uncertainty for the affected firms. Policy recommendations are presented that would allow the reduction or elimination of unnecessary constraints on business.