Yes, “national security” is used to justify all manner of protectionism in this country. We sure love our oligopolies.
Which is why Bell Canada not peering at TorIX (and other Canadian IXPs) really annoys me. (Rogers, Telus, Cogeco, TekSavvy, etc, do.)
* https://www.cira.ca/improving-canadas-internet/initiatives/c...
Even major cloud hosting companies (AWS, Digital Ocean, OVH) have Canadian build-outs for folks that are sensitive to domestic/international issues, and yet if connect with Bell your traffic tends to go to Chicago and then back.
That and outright monopolies created by the government itself.