MPs to vote on whether to study bill seeking to close U.S. loophole for arms exports

Ottawa and Washington have a defence production agreement that allows shipments of Canadian arms to the U.S. — including shipments purchased by Washington — to effectively avoid the detailed review typically required to get an arms export permit.

Alarmed by the prospect of Israel violating international law through its bombardment of Gaza after the Hamas attack of October 2023, Ottawa has restricted arms exports to Israel since early 2024.

The Liberals originally said this ban applied to all lethal arms; they later said that sales of arms to Israel would still be allowed if the weapons were being used to defend civilians.

Critics have long called for a total arms embargo on Israel and have accused Ottawa of being incapable of upholding its promise to keep Canadian arms out of Gaza.

The government was criticized in 2024 when the U.S. announced plans to send Quebec-made ammunition to Israel, a sale Ottawa said ultimately did not proceed.

Activists also have argued that loopholes are allowing Canadian weapons to be used in Saudi Arabia’s armed intervention in Yemen and in the bloody civil war in Sudan.

“A massive pipeline of Canadian weapons and components continue to flow to Israel freely via this loophole, despite Canada’s so-called pause on arms,” Michael Bueckert, vice-president of Canadians for Justice and Peace in the Middle East, told Tuesday’s news conference.

The bill, which has undergone preliminary debate, has received some support in the House of Commons, despite the government’s rejection of the legislation.

The government has argued Canada already has strong arms control laws and that the proposed changes would harm the defence sector and Canadian jobs. The Conservatives have echoed those points while stressing that Ottawa needs to support its allies.

The Bloc Québécois has warned the bill likely would cause the U.S. to acquire the same weapons from other countries.

In debate in the House of Commons on Monday, Liberal MP Salma Zahid broke ranks by rejecting the most of her party’s talking points.

“Jobs are not at risk here,” she told the House. “What is at stake is our moral authority and Canada’s global brand as a principled exporter.”

Zahid cited a contract by U.S. Immigration and Customs Enforcement to buy armoured tactical vehicles from a Canadian firm; the agency has not told The Canadian Press whether Roshel assembled these vehicles in the U.S. or Canada.

Zahid added that relations with the U.S. have “shifted dramatically” as Washington pursues an aggressive foreign policy.

“Closing this loophole would strengthen Canadian sovereignty and align our foreign policy instruments with contemporary realities,” she said.

Conservative MP Tamara Kronis argued the existing rules could be tightened. She told the House that Canada could avoid the economic and diplomatic risks posed by the bill, while “improving transparency, enhancing reporting requirements and strengthening oversight within the current framework.”

Kwan said the existing rules need to be overhauled beyond better reporting.

She said Tuesday she believes “9 to 16” Liberal MPs support the bill and she hopes the party does not whip the vote. She said the legislation “deserves” to be studied at committee and can be amended to address any issues that could harm Canadian interests.

“What we have seen instead are attempts to dismiss the bill with arguments that simply do not stand up to scrutiny,” she said.

This report by The Canadian Press was first published March 11, 2026.

Dylan Robertson, The Canadian Press

by The Canadian Press

MPs to vote on whether to study bill seeking to close U.S. loophole for arms exports

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