Significant changes to the Investment Canada Act will address evolving national security concerns while ensuring economic prosperity
Canada is a destination of choice for foreign investment as a result of its technologically advanced and open economy, its skilled workforce and its world-class research community. While foreign investment is essential to economic prosperity, the Investment Canada Act is a key lever that allows the Government of Canada to act quickly and decisively when foreign investment would threaten national security. As the world changes and threats evolve, Canada needs new tools to continue protecting the economy and keeping Canadians safe.
Last week, Bill C-34, An Act to amend the Investment Canada Act, also known as the National Security Review of Investments Modernization Act, received royal assent. The changes to the Investment Canada Act provide the government with new tools to ensure Canada can continue to address evolving threats that can arise from foreign investments, while making the regulatory regime clearer and more efficient and predictable for investors.
The modernization of the Investment Canada Act will bolster Canada's visibility on investments, enhance transparency and ensure Canada has strong authorities to take action quickly and where required. Included in the changes are updated penalties to strengthen deterrence, improvements to information sharing between partner countries and new rules for the protection of information during judicial reviews. Additional amendments strengthen both the national security review and the net benefit review.
The government is determined to continue working with Canadian businesses to attract foreign investment that advances Canada's long-term economic competitiveness and is consistent with our national security interests.
