Canadian Government Announces Targeted Changes to the Foreign Investment Review Process
OTTAWA - Through the Jobs, Growth and Long-term Prosperity Act, the Canadian Government has announced proposed targeted improvements to Canada's foreign investment review process to provide greater information to the public and more flexibility in enforcement.
"Canada has one of the best investment climates in the world. Our businesses depend on investment to expand, innovate and create jobs for Canadians," said the Honourable Christian Paradis, Minister of Industry and Minister of State (Agriculture). "We want our foreign investment review process to continue to promote economic growth, job creation and prosperity in Canada."
Through the Jobs, Growth and Long-term Prosperity Act, the Canadian Government has introduced amendments to the Investment Canada Act to provide the Minister of Industry with a greater ability to publicly communicate information on the review process, while preserving commercial confidences. The amendments would also promote investor compliance with undertakings by authorizing the Minister to accept security, when offered by an investor, for payment of any penalties ordered by a court for a contravention of the Investment Canada Act.
The amendments would allow the Minister to disclose publicly the fact that he has sent a preliminary notice to an investor that he is not satisfied that the investment is likely to be of net benefit to Canada. They would also allow the Minister to publicly explain his reasons for sending the notice as long as it would not cause harm to the Canadian business or the investor.
The Canadian Government recognizes that strong confidentiality protection is critical to ensure that investors provide the information necessary to conduct reviews as well as to prevent the harm that could come from disclosure.