For the first time in more than decade, the federal government is updating the Investment Canada Act.
Minister of Innovation, Science and Industry, Francois-Phillipe Champagne announced the amendments Wednesday night, saying it is to ensure that Canada can continue to address changing threats that may arise from foreign investments.
“This framework will allow us to have more flexibility, more authorities, more tools in the toolbox to protect our national security or national economic interests,” explained Champagne. “I think it’s well received. I can tell you allies around the world are saying ‘good.’”
Among other things, Champagne said it gives the minister the authority to impose conditions, something that other countries already do.
“You know in the United States in particular, sometimes they may decide not to block a transaction but impose conditions,” he said. “That is not something that the minister can do currently under the law. We have done [it] in certain circumstances but now we need to put that into law so that the minister would have the authority to impose these conditions.”
The bill includes giving the minister the authority to extend the national security review of investments, accept undertakings to mitigate national security risk as well as stronger penalties for non-compliance. There will be new rules for the protection of information during the course of a judicial review and improved information sharing with international counterparts. Champagne explained he’s looking to the future.
“I really want to look forward in making sure that my successors, whoever would have that role, would have the set of tools and authorities needed in order to better protect national security and economic security of our country,” he said.
Champagne added that is especially important given that Canada has what the world wants.
“You think about critical minerals, you think about sensitive technology,” said Champagne. “You know we are a leader in quantum, we’re a leader in A.I. We need to protect these technologies and for me this is going to be another tool in the toolbox.”
