Canada has become more cautious about foreign investment

Canada has an open economy and is an attractive destination for foreign investment. At the same time, the world is evolving, and challenges that could threaten both national security and prosperity require new tools to protect Canada's interests and assets. That's why the government is introducing a bill to modernize the Investment Canada Act (ICA). These changes will help to bring the Act in line with changing global dynamics and allow it to be more flexible.

On December 7, 2022, François-Philippe Champagne, Minister of Innovation, Science and Industry, announced the introduction of the Investment Canada  Act, also known as the National Security Review of Investment Modernization Act.

This new bill represents the most important update to the ICA since the introduction of the national security review process in 2009 and introduces new tools to ensure that Canada can continue to address the changing threats that may arise from foreign investment.

Proposed amendments to the Investment Canada Act under the new bill include:

• new filing requirement before making investments in prescribed business sectors;
• the Secretary's authority to expand National Security;
• Increased penalties for non-compliance;
• the minister's authority to impose conditions during a national security review;
• the Secretary's authority to commit to reducing national security risk;
• Improving information exchange with international partners;
• new rules for the protection of information during judicial review.

The government is determined to continue working with Canadian businesses to attract foreign direct investment from partners who share their interests and values. Today's modernization efforts will further enhance the transparency of the ICA's national security review process.

The full article is only available to members of the Immigrant.Today community.
Log in to your account to read it for free.

Login to the site