Canada has followed in Australia’s footsteps and will ratify the US Technology Safeguards Agreement (TSA), wrapping up the substantive negotiations on Friday, August 2, 2024.
“The conclusion of negotiations between Canada and the United States means that we are one step closer to finalising this agreement, which, when in force, will position our country to be a global leader in commercial space launch,” said Canada’s Foreign Affairs Minister Mélanie Joly.
A recent Deloitte report on the Canadian space sector estimates it generates CAD5.5 billion annually, contributes CAD2.5 billion to GDP, and directly employs around 10,000 people. However, while making up around 2% of the country’s GDP, Canada only accounts for 1% of the global space economy. “There’s a lot of room to grow,” the report notes, suggesting there is potential for the local space sector to generate CAD40 billion by 2040.
The TSA will see the appropriate legal and technical safeguards put into place to handle sensitive US space launch technology, expertise and data. It should pave the way for increased investment and activity by US space companies in Canada. Several partner countries have already signed the TSA, including Australia, New Zealand, the United Kingdom and Brazil. The Canadian Government says the TSA will support the growth of the commercial space launch industry in Canada while providing new opportunities for the sector and encouraging innovation and research.
Canada is one of multiple mid-sized countries competing for a bigger slice of global space activity and has an advantage of being next door to the world’s biggest space market, the US. Lisa Campbell, the president of the Canadian Space Agency, says the space sector continues to be an important part of the Canadian economy and does more than merely support activities in space. “It directly impacts the socio-economic benefits for Canadians back on Earth,” she said. “We have seen first-hand how Canadian space activities drive innovation, push technological and scientific boundaries, and build the workforce of tomorrow.”
Steve Matier, the president and CEO of Canadian launch company Maritime Launch Services, wants to build a spaceport on 135 hectares of land in Nova Scotia. The company plans to launch its first orbital rocket in early 2026. Matier said concluding the talks was a significant step forward for the growth of Canada’s commercial space industry.
“We look forward to welcoming our American clients to Nova Scotia in the coming months as we prepare for Canada’s first orbital launch from Spaceport Nova Scotia in 2026,” he said.
Countries that have already ratified the TSA are seeing the benefits, with the regular Rocket Lab launches on New Zealand’s North Island due to the agreement. In Australia, US-based Varda Space Industries aims to conduct the controlled return of one of its spacecraft at Southern Launch’s Koonibba Test Range later this year.
The TSA between Canada and the US will come into force once both countries review and approve it, but Ottawa did not provide a timeline. However, Canadian news outlets cite government sources who say they expect this to happen sooner rather than later.
