Lawyers flag urgent need for better funding of federal trade, sanctions agencies

OTTAWA — Several prominent lawyers are urging Ottawa to bolster federal units that manage trade issues, arguing they are under strain amid a surge of activity fuelled in part by a United States tariff war.

In a letter to the Finance Department ahead of the coming fall budget, the Canadian international trade and investment lawyers call for more funding for departments and agencies responsible for administering trade and tariff programming.

The Aug. 22 letter says that in response to tariffs and shifting trade policies, Canadian and global companies have restructured supply chains, shifted investments and adjusted sourcing strategies.

These businesses rely on Canada’s trade institutions to navigate new tariffs, economic sanctions and export controls, as well as secure permits, respond to enforcement actions and resolve disputes.

The letter says the surge in trade activity requires stronger institutional capacity to deliver timely and effective oversight, decisions and guidance.

It argues that funding has not kept pace to support the institutions responsible for implementing Canada’s trade policy goals.

The letter says the speed and scale of change have left critical parts of the federal government “under-resourced and increasingly unable” to meet the needs of Canadians.

“Canadian businesses and workers face mounting challenges in a fast-changing global economy,” the letter says.

“Targeted investments in trade-related institutions are critical to protecting Canada’s economic resilience and ensuring timely, responsive support for stakeholders.”

Among the signatories are William Pellerin of McMillan LLP, Wendy Wagner of Gowling WLG and Helen Byon of EY Law LLP.

The letter comes as the federal Liberals seek ways to find savings across government to fund new priorities like defence and housing.

The letter cites several examples of the growing federal strain:

— the Canada Border Services Agency’s Special Import Measures Act investigations directorate is on pace this year to receive the highest number of dumping and subsidy complaints in more than 20 years;

— the border agency’s recourse directorate, which is responsible for redetermining the assessment of duties on imports, is increasingly exceeding a one-year statutory time-frame;

— the Canadian International Trade Tribunal faces an unprecedented volume of proceedings and a growing backlog in decision-making;

— the sanctions bureau at Global Affairs Canada, which administers Canada’s sanctions on Russia and other jurisdictions, has a large inventory of sanctions permit and delisting applications;

— and the Finance Department’s international trade policy division has experienced a notable increase in requests for duty and surtax remissions, often requiring complex and time-sensitive assessments.

This report by The Canadian Press was first published Sept. 7, 2025.

Jim Bronskill, The Canadian Press