The federal government says it will make the most significant updates to the law that has been “screening” investments for more than a decade, to address emerging national security concerns.
Industry Minister François-Philippe Champagne tabled the proposed amendments to the Investment Canada Act on Wednesday afternoon.
These would require foreign investors to notify the federal government of their investments in certain industries.
During a press conference, Mr. Champagne offered an overview of the sectors that may be subject to this new requirement.
“You can be assured that this will include critical minerals, sensitive technologies and anything related to personal data,” he said.
The minister also pointed out that geopolitics has “changed considerably” in recent years, and that Canada will face challenges regarding its economic and national security.
He also added that the government was making “the most significant update to the law in more than a decade” in an effort to protect Canadian resources and interests and keep citizens safe.
Public safety issues
These changes would give the Minister of Industry the power to impose interim conditions on an investment and, after consultation with the Minister of Public Safety, to order that the investment undergo a thorough national security review.
Still with the agreement of the Minister of Public Security, Mr. Champagne could also accept binding commitments from investors.
Other changes include tougher penalties for non-compliance, as well as the ability for Canada to share case-specific information with international counterparts.
There will also be new rules protecting sensitive information during judicial review.
Under his mandate letter, published a year ago, Minister Champagne was to “promote economic security and combat foreign interference by reviewing and modernizing the Investment Canada Act.”
This modernization should aim to “strengthen the national security review process and better assess and mitigate threats to economic security arising from foreign investment”.
The Prime Minister also asked him to “use all tools, including the Investment Canada Act, to ensure the protection and development” of critical minerals.
Ottawa considers the exploration, extraction and processing of these minerals essential for Canada to become a world leader in the production of batteries and other “green technologies”.
Last October, the government announced its intention to restrict the involvement of foreign state-owned companies in Canada’s critical minerals sector, amid a global rush for these resources and growing tensions with China.