Review says Canadian controls hamper aerospace sales

Thu Nov 29, 2012 4:53pm EST
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* Review says Canada losing business to other NATO countries

* Urges Ottawa to market the industry more aggressively

* Canada's aerospace sector is fifth biggest in world

* Planemaker Bombardier is most prominent player

By Nicole Mordant

Nov 29 (Reuters) - Canada's aerospace industry is not selling as much as it could in countries such as Russia and China because of overly zealous government enforcement of controls designed to guard against leaks of sensitive technology, an industry review released on Thursday says.

Companies in other North Atlantic Treaty Organization countries, which have more "balanced" controls, are picking up the slack, the report said.

The controls are designed to protect national security and to preserve Canada's unique trade relationship with the United States, but evidence suggests the Canadian government's interpretation and application of the controls "may be unduly sweeping and rigid, even going further, in some instances, than is typical in Washington".

"The result is lost business for Canada with no material enhancement of security," said the independent, government-mandated review, which looked into the competitiveness of Canada's aerospace and space industries.   Continued...