Sanctions, including Iran’s, pose legal and resource burdens for Canada

Canada's pending decision to lift sanctions on Iran will likely spark cheers at the country's foreign ministry because the ever-expanding program has posed legal and staffing burdens.

OTTAWA — Canada’s pending decision to lift sanctions on Iran will likely spark cheers at the country’s foreign ministry because the ever-expanding program has posed legal and staffing burdens.

A briefing note prepared for Prime Minister Justin Trudeau describes internal problems associated with one of Canada’s few foreign policy sticks — the sanctions imposed on nine countries, including Iran, North Korea and Russia.

The note was obtained by The Canadian Press under the Access to Information Act.

Canada is expected to follow the world in lifting sanctions on Iran because it has complied with a landmark deal with six leading world powers that is aimed at preventing it from developing a nuclear bomb.

Canadian sanctions are imposed under two separate regimes: the United Nations and its own Special Economic Measures Act, or SEMA.

SEMA has proven problematic for officials at Global Affairs Canada because the number of countries facing sanctions under it has jumped to nine from two since 2010, the memo says, creating a heavy workload and legal headaches.

This has resulted in “greatly increasing the compliance burden for the private sector and creating resource and potential litigation challenges” for the department.

“As these procedural regimes have started to mature, foreign courts have begun to demand that increased procedural fairness be present in the listing and delisting of persons under such sanctions,” it says.

“It is likely that Canadian courts will demand the same procedural fairness in the event that any of Canada’s sanctions are challenged in court.”

A separate briefing note, also written for Trudeau last fall, says it is likely that Canada will be in a position to lift its Iranian sanctions “as early as winter 2016 and as late as summer 2016.”

With Iran found to be in compliance with the nuclear deal as of last weekend, it would appear that the lifting of sanctions is imminent.

Trudeau has said Canada will also restore diplomatic relations with Iran, but the prime minister indicated Monday his cabinet will set the timing of that decision during an upcoming meeting.

Trudeau said he was pleased that “quiet diplomacy” led to successful negotiation of the Iran deal and would move it “towards respecting international expectations.”

Speaking to reporters at a cabinet retreat in New Brunswick, Foreign Affairs Minister Stephane Dion said his fellow ministers would soon decide whether and how to lift the economic sanctions still in place.

Canadian companies won’t be able to compete for Iranian contracts until the sanctions are lifted, giving a leg up to their American counterparts. Dion suggested cabinet would make a decision quickly so as not to disadvantage Canadian companies.

It may take longer, he said, to reopen the embassy in Iran.

“That’s something also that we’ll have to do step by step, how to re-engage with Iran when all the links have been cut,” Dion said.

“It cannot be done overnight, but the prime minister said very clearly during the campaign that this is something that we want to do properly in a timely fashion.”

Interim Conservative leader Rona Ambrose said the government should be wary about lifting sanctions on Iran, because it has not been trustworthy in the past.

“Let’s remember that once those sanctions are removed that Iran is going to flood the market with cheap oil, which has a huge effect on the Canadian economy as well,” she said.

The deal that Iran forged with the five permanent members of the UN Security Council — the U.S., Britain, France, Russia and China — plus Germany, is expected to provide it an estimated $100 billion in sanctions relief.

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