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

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

25 Nov 2014

The ICA narrowed both the range of foreign acquisitions that are reviewable and the scope of the “benefit to Canada” test to which these transactions must be submitted in order to receive approval from the federal government. [...] The purpose of the ICA, 3 as set out in section 2 of the Act, is: 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; LIBRARY OF PARLIAMENT [...] 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.
government politics economy foreign direct investment investment canada business fdi mergers and acquisitions oecd parliament acquisitions resource non-compliance economy, business and finance foreign investors acquisition investor investments, foreign investment canada act

Authors

Frigon, Mathieu

Pages
16
Published in
Ottawa, Ontario

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