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:
- New filing requirement prior to the implementation of investments in prescribed business sectors;
- Authority for the Minister to extend the national security review of investments;
- Stronger penalties for non-compliance;
- Authority for the Minister to impose conditions during a national security review;
- Authority for the Minister to accept undertakings to mitigate national security risk;
- Improved information sharing with international counterparts; and
- New rules for the protection of information during the course of judicial review.
The government is determined to continue working with Canadian businesses to attract foreign direct investments from partners that share our interests and values. Today's modernization efforts will further enhance transparency in the ICA national security review process, while ensuring that the government is able to take action quickly where required. The government will continue to do everything it can to see more economic growth and more Canadian jobs, without compromising our national security or interests.
