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- That is, foreign investment that benefits our economy and that will not compromise national security. The ICA allows the federal government to review significant in-bound foreign investments to ensure the overall economic benefit to Canada. It also allows the federal government to review investments of any size for national security concerns.
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New bill represents the most significant update of the ICA in more than a decade and will address evolving national security concerns
New bill represents the most significant update of the ICA in more than a decade and will address evolving national security concerns
December 7, 2022 – Ottawa, Ontario
Canada has an open economy and is an attractive destination for foreign investments. At the same time, the world is evolving and challenges that could endanger both our national security and prosperity require new tools to not only protect our interests and our assets but also keep us safe. That is why the Government of Canada is tabling legislation to modernize the Investment Canada Act (ICA). These changes will help align the Act with changing global dynamics and enable it to be more agile.
Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced the introduction of the Act to amend the Investment Canada Act, also known as the National Security Review of Investments Modernization Act. This new bill represents the most significant update of the ICA since the introduction of the national security review process in 2009 and is introducing new tools to ensure that Canada can continue to address changing threats that may arise from foreign investments.
The proposed amendments to the Investment Canada Act under the new bill include:
“While our government continues to welcome foreign direct investment, we need to be vigilant and protect Canadian interests. These new amendments will help bring the Act in line with today’s reality, while ensuring we can work at the speed of business. We will continue to work toward an updated ICA framework that ensures Canada’s continued prosperity and, at the same time, continue to act decisively when investments threaten our national security.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
•Canada benefits significantly from foreign investment as an important source of capital and technology. Recognizing the importance of protecting national security, the Investment Canada Act provides for:
•the review of significant investments in Canada by non-Canadians in a manner that encourages investment, economic growth and employment opportunities in Canada; and
•the review of investments in Canada by non-Canadians that could be injurious to national security.
•In fiscal year 2021–22, 24 investments were subject to extended national security reviews.
In fiscal year 2021–22, no investments were blocked under the ICA. However, in the previous year, three were subject to orders under section 25.4 of the Act (two divestiture orders and one blocked transaction).
So far in fiscal year 2022–23, three investments in critical minerals were subject to divestiture orders.
•Backgrounder: Modernizing the Investment Canada Act
- Highlights. Over 83% of the 3 million jobs lost between February and April 2020 due to COVID-19 had been recovered by the end of April 2021, with nearly 67% in full-time positions.
- Canada is open for business and welcomes foreign investment. Canada will continue to be the best country in the G20 for doing business throughout the next five years (2021-2025); it has consistently ranked among the top 3 countries in the last 5 years.
- Fiscal soundness and resilient economy. COVID-19 has radically changed the economic growth outlook around the world. Every G7 country experienced recession in 2020, with Canada’s economy contracting by 5.4%.
- Low cost, low tax environment. At 26.2% in 2020, Canada's combined federal-provincial statutory corporate income tax rate is one of the lowest in the G7.
Apr 28, 2023 · The stock of foreign direct investment in Canada grew 6.0% (+$71.6 billion), reaching $1,263.9 billion at the end of 2022. The increase was due to equity investments, primarily reinvested earnings by foreign direct investors in their existing Canadian affiliates as profits of these firms also reached unprecedented levels in 2022.
Apr 29, 2024 · Canada's net direct investment position with the rest of the world reached $811.0 billion at the end of 2023, up $86.4 billion from 2022, as growth of Canadian direct investment abroad continued to outpace growth of foreign direct investment in Canada.
Foreign direct investment (FDI) in Canada reached a 15-year high in 2021. This section breaks down these results in greater detail. The figures use reported data from Statistics Canada and FDI activity data.
In 2019, the value of 2-way foreign direct investment flows amounted to $168.8 billion. Access to foreign markets is of vital importance to Canada’s continued prosperity—and the government’s trade policy plays a key role in promoting Canadian interests.
