MPs reject bill to close U.S. loophole for arms exports, with some Liberal dissent

NDP MP for Vancouver East Jenny Kwan speaks at a news conference in Ottawa, on Thursday, Sept. 4, 2025. THE CANADIAN PRESS/Adrian Wyld

OTTAWA — MPs voted Wednesday to reject a bill that sought to close a loophole in Ottawa’s weapons export regime that allows Washington to send Canadian arms to countries that would otherwise be blocked.

“We are living within a lie with our arms exports,” NDP MP Jenny Kwan said at a Tuesday press conference.

Kwan tabled a private member’s bill last September following attempts by Washington to purchase Canadian weapons for Israel, despite a Canadian ban on exports of various types of weapons to that country.

MPs rejected Bill C-233 in a vote on second reading on Wednesday, with 295 voting against it, and 22 voting in favour. That means the legislation is dead and will not be sent to a committee for study.

Green Leader Elizabeth May voted in favour of the bill, as did New Democrats and 12 Liberal MPs — including former minister Steven Guilbeault and recent floor-crosser Lori Idlout.

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 weapons 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.

Foreign Affairs Minister Anita Anand slammed the legislation shortly before the vote Wednesday.

“It is irresponsible to propose a bill like this,” she told the House. “The changes proposed in this bill would decimate Canada’s defence industry, would weaken Canada’s role in NATO and would jeopardize the capabilities of our Canadian Armed Forces.”

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 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 and argued her legislation should be studied and 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