Attracting global investments to develop world-class companies

News Release

Government of Canada releases guidelines on the national security review of investments under the Investment Canada Act

December 19, 2016 – Ottawa – Innovation, Science and Economic Development Canada

The Government of Canada is encouraging global companies to invest in Canada. These investments will drive innovation, create more jobs, and lead to greater prosperity for the middle class and those working hard to join it.

Today, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, released Guidelines on the National Security Review of Investments under the Investment Canada Act. The guidelines:

  • provide information to investors about the administration of the Act's national security review process.
  • include factors that the Government considers when assessing whether an investment poses a national security risk.

The publication of these guidelines will provide greater certainty to companies looking to invest in Canada while maintaining the integrity of the national security review process.

The Government will also introduce amendments to the Act that require annual reporting on the administration of its national security provisions. Similar reporting requirements are already in place for reviews conducted under the Act's net benefit provisions.

The Government published information on national security reviews proactively for the first time in the 2015–16 Annual Report on the Investment Canada Act. Mandatory public reporting will ensure continued transparency and accountability while protecting commercial confidentiality.

The Government will also amend the Act to increase the threshold that triggers a review of investments under its net benefit provisions. The threshold will be raised to $1 billion in enterprise value from the existing amount of $600 million. This legislative amendment will take place in 2017—two years earlier than scheduled.

These changes, first announced in the 2016 Fall Economic Statement, will align the Act with the Government's efforts to attract global investments that create jobs and opportunities for Canada's middle class and those working hard to join it.

Quotes

"Global investments in Canada attract people with the skills and experience to drive innovation. They stimulate the flow of new ideas and the development and adoption of new technologies. More global investment will create more jobs and greater prosperity for the middle class and those working hard to join it. Now more than ever, we need our country to be at its absolute best, especially if we want to compete with countries around the world for the most talented people, the fastest-growing companies and the newest technologies. The proposed changes to the Investment Canada Act will help create the conditions for Canada to compete in an innovation-based economy."

– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

"The Government of Canada is committed to ensuring its processes are open and transparent. That is why the changes announced today are so important; they will allow investors to better understand the national security review provisions under the Investment Canada Act. We will continue to ensure the safety of Canadians while advancing our economic interests and fostering innovation."

– The Honourable Ralph Goodale, Minister of Public Safety and Emergency Preparedness

Quick facts

  • The Investment Canada Act provides for the review of significant acquisitions of control of Canadian businesses based on their likely net benefit to Canada and, separately, for the review of foreign investments that could be injurious to national security.
  • During the 2015–16 fiscal year, 15 applications for review of proposed acquisitions of Canadian businesses over the net benefit review threshold were approved under the Act; no applications were turned down. The total value of those acquisitions was $18.02 billion in asset value and $8.86 billion in enterprise value.
  • Of the total number of investments reviewed or notified under the Investment Canada Act in the 2015–16 fiscal year, 60 percent were from the United States. The European Union had the second-highest share with 21 percent.
  • There have been eight national security reviews since the national security provisions of the Act were brought into force in 2009. This information was made available for the first time in the 2015–16 Annual Report on the Investment Canada Act.

Associated links

Follow Minister Bains on social media.
Twitter: @MinisterISED

Contacts

Philip Proulx
Press Secretary
Office of the Minister of Innovation, Science and Economic Development
343-291-2500

Media Relations
Innovation, Science and Economic Development Canada
343-291-1777
ic.mediarelations-mediasrelations.ic@canada.ca


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