Summary of the Bill

Amendments to the Investment Canada Act

The Bill amends the Investment Canada Act (ICA) to provide for review of foreign investments in Canada that might compromise Canada's national security, and for the government to take appropriate measures where necessary in light of those reviews. These powers are expected to be used rarely, as existing tools are generally adequate in addressing national security concerns.

The ICA — Canada's principal and general legislation dealing with foreign investment — currently provides for review of large foreign investments (by the Minister of Industry) and of foreign investments in cultural businesses (by the Minister of Canadian Heritage), to ensure they provide a net benefit to Canada.

The Bill would provide new powers to review foreign investments that might compromise Canada's national security, independent of existing reviews and not subject to sectoral or asset value thresholds. These reviews would be authorized by the Governor in Council (GIC) on recommendation of the Minister of Industry, who would carry them out in consultation with others, as necessary. On completion of the review, the GIC could order further action, including modifying or disallowing the investment.

Vesting these decision powers with the GIC will reinforce that decisions taken under this new part are guided by a focus on national security, without constraining the Minister of Industry or the Minister of Canadian Heritage in carrying out other review activities under the Act.