Canada has dismissed concerns voiced by an American lawmaker on its immigration and asylum policies following last weekend's arrests of 17 suspected members of a terror cell allegedly plotting attacks in and around Toronto.

In the wake of the raids on Friday and Saturday, Chair of the House Homeland Security Committee Peter King claimed that Canada granted political asylum with ease and had "very liberal" immigration policies.

Canada's ambassador to the US, Michael Wilson, rejected the criticism..

"We take very seriously the issue of terrorism, as demonstrated by this very successful exercise that was completed on Friday night, (and) Saturday morning," said Wilson.

"I think that our immigration laws, as they are implemented are very close in the outcomes as the United States immigration laws," he said.

All those arrested are believed to be Muslims, sparking fears of a backlash against the community in Canada as well as stricter background checks on prospective immigrants from Muslim countries.