In addition to the myriad of sector-specific restrictions on foreign ownership, investments in Canada may also be subject to review under the Competition Act to ensure competition is not “lessened or prevented substantially” and a general review under the Investment Canada Act (“ICA”) to ensure the investment is likely to be of “net benefit” to Canada.
In July 2007, the Government of Canada established the Competition Policy Review Panel (“Panel”) to study and make recommendations on improving Canada’s competitiveness in an increasingly global marketplace. In its final report titled Compete to Win, released on June 26, 2008, the Panel made a significant number of recommendations including amending the ICA and other legislation and changing how such legislation is administered.
This article provides a brief overview of amendments to the ICA designed to implement the Panel’s recommendations, and highlights some other recent developments in Canadian foreign investment law.
