• National Security Review of Foreign Investments to be Introduced in Canada
  • July 7, 2005 | Authors: A. Neil Campbell; John W. Craig
  • Law Firm: McMillan LLP - Toronto Office
  • The Minister of Industry has tabled amendments to the Investment Canada Act (the "ICA") to permit the review of foreign investments that could compromise national security. The ICA applies whenever a non-Canadian establishes a new Canadian business or seeks to acquire control of an existing one. However, review and approval is currently only required where the asset value of an existing Canadian business exceeds high thresholds or where the investment is in one of four sensitive sectors: culture, financial services, transportation and uranium production. Where a review is required, investments must meet a "net benefit to Canada" test.