New “Sensitive Technology List” to inform Canada’s national security efforts

The Minister of Public Safety recently announced Canada’s first Sensitive Technology List (STL).¹ The STL identifies the government’s priority categories of new technologies for regulation to safeguard Canadian national security.²

The 11 priority categories are:

1. Advanced Digital Infrastructure Technology
2. Advanced Energy Technology
3. Advanced Materials and Manufacturing
4. Advanced Sensing and Surveillance
5. Advanced Weapons
6. Aerospace, Space and Satellite Technology
7. Artificial Intelligence and Big Data Technology
8. Human-Machine Integration
9. Life Science Technology
10. Quantum Science and Technology
11. Robotics and Autonomous Systems

The STL was announced at the same time as Canada’s National Cyber Security Strategy (about which we have also published), which details the federal government’s plan to help Canadian organizations prepare for and respond to the rapidly evolving and increasingly sophisticated cyber security threats of today and tomorrow. 

Key takeaway: the STL foreshadows increased regulatory scrutiny

Companies dealing in the listed priority categories will be impacted, and companies researching, developing, selling, importing, exporting, or investing in technologies captured by the STL can expect to face significant scrutiny. Companies dealing with unlisted novel technologies that could impact Canadian national security or intelligence could also be impacted.

The STL indicates the government’s priorities for increasing regulation, investigation, and enforcement activities. Companies should anticipate greater scrutiny whenever dealing with regulators or regarding the priority categories such as in seeking export permits or making Investment Canada Act notifications. 

What types of technologies are included on the STL?

The STL does not provide an exhaustive list of specific devices or software, but instead identifies 11 broad categories of technologies the government considers “sensitive,” and which are therefore vulnerable to exploitation by foreign threat actors. 

“Sensitive technology” is defined as those that are emerging or novel, the transfer of which could be used to harm Canada’s national security and defence interests—or uplift an adversary’s advantage—through either military or intelligence application.³

The initial list was developed through a broad consultation across federal departments, as well as with the security and intelligence community. The list is intended to be fluid, and subject to updates as needed. 

Under each category within the STL are subcategories of technologies, as well as specific examples. In most cases the examples are not exhaustive and therefore it is not always easy to know whether a specific technology is considered sensitive. The STL is not legislation and does not have any legislative authority. It is a reference list to inform other areas of policy development and implementation across the federal government. 

How will the STL be used?

The 11 categories of technology are not automatically subject to any new restrictions or regulation due to being listed on the STL. Instead, the STL will be used to assist the federal government’s policy efforts in a broad range of areas related to national security and intelligence. These uses could include:

• informing the development of new export controls, 
• decisions to initiate foreign investment reviews, and the conduct of foreign investment reviews, and 
• other federal efforts to protect and fund research and knowledge sharing in Canada.

For example, under the Export and Import Permits Act the federal government can place trade restrictions on certain goods and technology. Goods and technologies identified on the Export Control List (ECL) cannot be exported to foreign jurisdictions without a permit from the Minister of Foreign Affairs. New technologies are frequently added to the ECL. Given the overlap with the categories listed on the STL (e.g., advanced semiconductors and quantum technologies), it will likely be used to inform the development of new export restrictions. 

In fact, the federal government recently wrapped up consultations on amendments to the ECL to add new technologies with military applications,⁴ many of which are also identified as examples under the STL’s 11 categories. 

How does the STL compare to similar lists used by Canada’s security and intelligence allies?

Canada’s “sensitive technologies” list is not novel. Like-minded countries, such as, Australia, the UK, and the US have developed similar lists. That said, there are some notable differences, which may imply some variation in terms of each jurisdiction’s priorities.

The US Critical and Emerging Technologies List (CETL) outlines 18 categories of technologies that are important to national security interests.⁵ Like the STL, it has a similar focus on AI, quantum technologies and other forms of advanced computing. 

The Australian List of Critical Technologies in the National Interest also covers similar categories of technologies as the STL,⁶ such as AI and computing, but has a less explicit focus on weapons or weapon systems. Like the CETL it does not include a category for advanced weapons, but instead identifies subcategories of technologies with obvious potential military application (e.g., drones, advanced robotics, and nuclear technologies). Meanwhile, the UK Science and Technology Framework only identifies five critical technologies that are important to the UK’s national interests.⁷ Unlike Australia, Canada, or the US, it does not place any focus on energy/clean energy technologies.

The authors would like to thank Ian Chesney, articling student, for his contribution to preparing this article.