The foreign investment review process in Canada : Processus d'examen des investissements étrangers au Canada

The purpose of the ICA, as set out in section 2 of the Act, is:3 to provide 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 to provide for the review of investments in Canada by non-Canadians that could be injurious to national security. [...] Factors that are considered in the net benefit test as set out in the Act are: (a) the effect of the investment on the level and nature of economic activity in Canada, including, without limiting the generality of the foregoing, the effect on employment, on resource processing, on the utilization of parts, components and services produced in Canada and on exports from Canada; (b) the degree and si [...] The minister may, according to section 39 of the Investment Canada Act (ICA), send a demand to the investor, requiring the investor to cease contravention of the Act, remedy the default, show cause why there is no contravention of the Act or regulation, or, in the case of undertakings, justify any non-compliance. [...] The Minister of Industry sent a letter to U. S. Steel in May 2009, demanding that the firm comply with the undertakings pledged to the Government of Canada at the time of the investment review. [...] After analyzing the investor’s plan for the Canadian business and the undertakings, the minister makes a decision as to whether the proposed investment is likely to be of net benefit based on the factors included in the Act.