Investment Review in Canada - We Can Do Better

Although the Investment Canada Act (ICA) is often criticized for leaving investors and the public in the dark on government decisions regarding proposed foreign investments in Canada, nothing in the Conservative government's platform suggests that the ICA's basic framework will be changed. Moreover, there is no evidence that the ICA or the review process has limited foreign investment in Canada since the Act came into force. However, the legislation should be made more open and predictable, both for the application of the net benefit test and for determinations of national security issues. When a foreign acquisition is approved or rejected, the Industry Minister should be required to issue public reasons. Where investment approvals are given subject to undertakings, the general outlines should be made public. More transparency and public disclosure will make foreign investors confident the system is fair, objective and free from bias, bolstering Canada's reputation as a fine place to invest