Question Period Note: AN ACT TO MODERNIZE THE INVESTMENT CANADA ACT

• Foreign investments encourage economic growth, innovation and employment opportunities in Canada.

• While Canada continues to welcome foreign investment, we are modernizing the Investment Canada Act (ICA) to protect Canada’s economic prosperity and strengthen our ability to act decisively when investments threaten our national security.

• Today’s legislative amendments will enhance transparency and efficiency in the ICA national security review process.

• This new bill represents the most significant update of the ICA since 2009 and ensures that Canada is able to address evolving threats that can arise from foreign investments.

• All foreign investments, no matter their value, are subject to national security review under the Investment Canada Act (ICA).

• This process is undertaken by the Minister of Innovation, Science and Industry (ISI) in consultation with the Minister of Public Safety, and involves Canada’s national security and intelligence agencies.

• The amendments to the ICA include:

1) a new filing requirement prior to the implementation of investments in prescribed business sectors;
2) authority for the Minister of Industry to extend the national security review of investments;
3) stronger penalties for non-compliance;
4) authority for the Minister of ISI to impose conditions during a national security review;
5) authority for the Minister of ISI to accept undertakings to mitigate national security risk;
6) improved information sharing with international counterparts; and
7) new rules for the protection of information during the course of judicial review.

• The amendments bring the ICA into closer alignment with foreign investment review regimes such as those of Five Eyes Allies. While each system of review has its own nuances, the amendments will ensure Canada has comparable, if not stronger, authorities to ensure visibility across investments, and to take action against national security threats where required.

• The amendments to the ICA strike an appropriate balance between mitigating national security risks and maintaining Canada’s economic competitiveness and prosperity.

None