Report of the committee
Thursday, May 27, 2021
The Standing Senate Committee on Foreign Affairs and International Trade has the honour to table its
Your committee, which was authorized to examine the subject matter of those elements contained in Divisions 6 and 20 of Part 4 of Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures, has, in obedience to the order of reference of Tuesday, May 4, 2021, examined the said subject matter and now reports as follows:
1.On May 13, 2021, your committee received testimony from officials from Global Affairs Canada and the Department of Finance Canada on the subject matter of those elements contained in Divisions 6 and 20 of Part 4 of Bill C-30.
2.Your committee understands that Division 6 of Part 4 of Bill C-30 would amend section 7(1) of the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). The amendment would remove the requirement for designated financial entities to make monthly disclosures to their supervisory or regulatory agencies in situations where they do not have in their possession or control any property of a foreign national who is subject to sanctions under the Act. The amendment would also specify that designated entities must disclose “without delay,” and once every three months thereafter, if they determine that they are in possession or control of such property.
3.Officials from Global Affairs Canada indicated that removing the “nil report” requirement would help to reduce the administrative burden on financial entities designated under the Act, while still maintaining appropriate oversight obligations and standards. Your committee was informed that this amendment was being proposed after consultation with relevant financial entities, as well as with their regulators or supervisory bodies. Officials from Global Affairs Canada underscored that amending section 7(1) of the Justice for Victims of Corrupt Foreign Officials Act would align with similar changes made in April 2019 to the disclosure obligations in the regulations under the Special Economic Measures Act.
4.Your committee understands that Division 20 of Part 4 of Bill C-30 would amend section 16 of the Canada–United States–Mexico Agreement Implementation Act. The amendment would require the concurrence of the Minister of Finance when the Minister of Small Business, Export Promotion and International Trade appoints or proposes the names of individuals for rosters, panels, and committees established under Chapter 10 of the Canada-United States-Mexico Agreement (CUSMA). Chapter 10 of CUSMA established a dispute resolution mechanism for reviews of anti-dumping and countervailing duties imposed by a signatory.
5.Departmental officials indicated that the amendment proposed to section 16 was a technical and administrative clarification. The amendment would ensure that the procedural arrangements regarding ministerial concurrence that Canada had in place under the North American Free Trade Agreement(NAFTA) are reflected in CUSMA. Your committee was told that, under Chapter 19 of NAFTA, the Minister of Finance and the Minister of Small Business, Export Promotion and International Trade, had shared responsibility for the selection of rosters, panels and committees for trade remedy disputes. In briefing material provided to your committee, the Department of Finance Canada indicated that the Minister of Finance’s role in the dispute settlement process was inadvertently omitted in CUSMA’s implementing legislation.
6.Your committee has no objections to the amendments proposed in Divisions 6 and 20 of Part 4 of Bill C-30.
PETER M. BOEHM