That makes sense...The M-16 "says M-16" Why would they call it a C7,C8 
Beats me why they needed to call it something else, but here is a more official explanation..
International derivatives
[edit] C7 and C8
Canadian Forces Reserve infantrymen train in urban operations with C7 and C8 rifles.
Main article: Colt Canada C7 rifle
The Diemaco C7 and C8 are updated variants of the M16 developed and used by the Canadian Forces and are now manufactured by Colt Canada. The C7 is a further development of the experimental M16A1E1. Like earlier M16s, it can be fired in either single shot or automatic mode, instead of the burst function selected for the M16A2. The C7 also features the structural strengthening, improved handguards, and longer stock developed for the M16A2. Diemaco changed the trapdoor in the buttstock to make it easier to access and a spacer of 0.5 inches (13 mm) is available to adjust stock length to user preference. The most easily noticeable external difference between American M16A2s and Diemaco C7s is the retention of the A1 style rear sights. Not easily apparent is Diemaco's use of hammer-forged barrels. The Canadians originally desired to use a heavy barrel profile instead.
The C7 has been developed to the C7A1, with a Weaver rail on the upper receiver for a C79 optical sight, and to the C7A2, with different furniture and internal improvements. The Diemaco produced Weaver rail on the original C7A1 variants does not meet the M1913 'Picatinny' standard, leading to some problems with mounting commercial sights. This is easily remedied with minor modification to the upper receiver or the sight itself. Since Diemaco's acquisition by Colt to form Colt Canada, all Canadian produced flattop upper receivers are machined to the M1913 standard.
The C8 is the carbine version of the C7.[51] The C7 and C8 are also used by Hærens Jegerkommando, Marinejegerkommandoen and FSK (Norway), Military of Denmark (all branches), the Royal Netherlands Army and Netherlands Marine Corps as its main infantry weapon. Following trials, variants became the weapon of choice of the British SAS.
