In brief Following weeks of tariff threats from the U.S. and the imposition of retaliatory Canadian tit-for-tat tariffs and non-tariff measures, the U.S. and Canada are currently in the midst of a trade war that is expected to have significant economic repercussions. On 5 March 2025, the Government of Canada announced that it would take action under the Investment Canada Act (“ICA”) to protect Canadian companies from foreign investors looking to capitalize on the current…
In brief 2024 brought many changes and developments to foreign investment law in Canada. The Canadian government introduced various reforms to foreign investment policy through amendments to the Investment Canada Act (the “Act”), reframing risk in certain sensitive industries which Canada views as important for safeguarding its national security and economic interests. Geopolitical and trade tensions have also increased Canada’s use of national security reviews over foreign investments from Chinese investors, particularly in Canadian critical mineral assets…
In brief The Government of Canada has published the 2025 financial thresholds for pre-closing, “net benefit” review and approval of foreign investment under the Investment Canada Act (“ICA”). The ICA financial thresholds are reviewed annually and have once again increased. Notably, the financial threshold for trade agreement investors that are not state-owned enterprises (“SOE”) has exceeded CAD 2 billion for the first time. Failure to notify and obtain approval for an investment may result in…
In brief The government of Canada recently announced a significant 45-day consultation on economic security, which remains open until 23 September 2024. The purpose of the consultation is to consider measures to strengthen Canada’s “economic security and supply chain resilience” against the threat of “protectionist and nonmarket policies and practices” and “economic threats or coercion.” This alert provides an overview of recent legislative and policy measures focused on Canada’s economic security, which the result of…
In brief The Government of Canada recently passed Bill C-34, the National Security Review of Investment Modernization Act (“Bill C-34“), marking a turning point in the review of foreign investment in Canada. Bill C-34 enhances the Canadian government’s national security review powers under the Investment Canada Act (“ICA“) and introduces mandatory pre-closing filings for certain investments. The amendments are intended to address evolving threats arising from foreign investment and to ensure Canada’s economic security and prosperity. Bill…
In brief Canada has announced two complementary policies that will subject foreign investment in the interactive digital media (“IDM“) sector to enhanced scrutiny under the Investment Canada Act (“ICA“). IDM relates to digital content and/or digital environments where users can participate or collaborate, including certain mobile apps, video games, and virtual reality platforms. The Minister of Innovation, Science and Industry’s policy is intended to stop hostile state-sponsored or state-influenced actors (“SOEs“) from leveraging Canada’s IDM sector to spread…
In brief The Government of Canada has announced the 2024 financial thresholds for pre-merger notification and clearance under the Competition Act, and for pre-closing, “net benefit” review and approval under the Investment Canada Act (“ICA”). While the Competition Act “size of transaction” financial threshold remains the same, the ICA financial thresholds have increased. Significantly, this is the third year in a row that the Competition Act financial threshold has remained unchanged at CAD 93 million in a bid…
In Brief It has been a dynamic year for competition and foreign investment law in Canada, with significant long-term implications for both domestic and global businesses. In 2023, the Government of Canada focused on modernizing Canada’s Competition Act and Investment Canada Act, proposing and advancing legislation that will overhaul existing legislative frameworks. Looking forward, we expect the Government will continue its modernization agenda and the respective authorities will continue to take strong enforcement positions against…
In brief On 7 December 2022, Minister François-Philippe Champagne, Minister of Innovation, Science and Industry (Minister), announced the Canadian government introduced legislation to amend the Investment Canada Act (ICA), known as the National Security Review of Investments Modernization Act. While the proposed amendments at first appear to be a dramatic overhaul of the existing national security review framework for foreign investment in Canada, they are generally consistent with other recent legislative amendments and policy developments related to Canada’s…
In January 2022, the Canadian government allowed a Chinese state-owned investor, Zijin Mining Group, to acquire Canadian lithium miner Neo Lithium Corp (“Neo Lithium”) for approximately $960 million. As the decision comes in the wake of two significant recent developments, the finalization in January 2020 of a Canada-US plan to secure supply chains for critical minerals; and the issuance in March 2021 of updated National Security Review Guidelines that list critical minerals, including lithium, as…