Is porn illegal in Canada ?

WTF I was just reading some legislation about pornography in Canada and this shit is leading me to believe that it's illegal?

http://lois.justice.gc.ca/en/C-46/38792.html

163. (1) Every one commits an offence who

(a) makes, prints, publishes, distributes, circulates, or has in his possession for the purpose of publication, distribution or circulation any obscene written matter, picture, model, phonograph record or other thing whatever; or

(2) Every one commits an offence who knowingly, without lawful justification or excuse,

(a) sells, exposes to public view or has in his possession for such a purpose any obscene written matter, picture, model, phonograph record or other thing whatever;


now the catcher is this:
(8) For the purposes of this Act, any publication a dominant characteristic of which is the undue exploitation of sex, or of sex and any one or more of the following subjects, namely, crime, horror, cruelty and violence, shall be deemed to be obscene.



So wtf, is all porn illegal up here or just what's deemed 'obscene' ?