To: Hippieslayer who wrote (829 ) 10/2/1998 10:31:00 AM From: sanjay das Respond to of 1242
Canada Proposes Relaxing Crypto-Export Laws (10/01/98; 5:01 p.m. ET) By John Borland, TechWeb The Canadian government announced a new policy on encryption software Thursday aimed at liberalizing export controls and boosting the country's growing cryptography industry. In a speech to the Canadian National Press Club, Minister of Industry John Manley said his government would introduce legislation loosening the country's restrictions on the export of data-scrambling software. "The cryptography industry can grow only if it has the freedom to export," Manley said. "They need to tap as many ... overseas markets as possible to keep their highly paid, high-qualified jobs here in Canada." The country's encryption industry had sales of about $300 million last year, he added. Canada already allows the export of strong data-scrambling software to the United States and some other nations. But the government will streamline the export permit process, reducing "regulatory drag" on the manufacturer's production time line, Manley said. The announcement provided a stark contrast to U.S. policy, which has focused on a very gradual, industry-specific loosening of export controls. Manley also said the Canadian government would not seek mandatory key recovery or a key-escrow plan. In the United States, the FBI and other law-enforcement agencies have asked for built-in "back doors" to encrypted files in the event of a criminal investigation. Canadian citizens will be free to develop and use whatever kind of data-scrambling products they want, Manley said. However, the Canadian government would maintain some encryption-export restrictions as mandated by the 33-country Wassenaar arms-control treaty. Those restrictions pertain to the export of hardware and custom-cryptography products, but contain an exception for mass-market software products. "Our foreign affairs bureau is engaged in negotiations to liberalize those controls," said Jennifer Sloan, Manley's press secretary. "But it's unlikely that those restrictions will go away." The Canadian government may relax the way it interprets the Wassenaar treaty provisions, however. "We will ensure that Canadian cryptography manufacturers face a level playing field," Manley said, promising to match the lowest level of restriction imposed by other countries. "Our controls will take into account the practices of other countries so that Canadian manufacturers will not be at a competitive disadvantage." Finally, Manley said the government would introduce legislation to assist law enforcement, making the use of cryptography to commit or hide evidence of a crime illegal. Thursday's policy represented one plank in a broad e-commerce plan the Canadian government plans to introduce over the next several weeks.