Canada – Foreign Investment
The [Canadian] government regulates foreign investment. “Governments exercise control over several business sectors through regulation or ownership restrictions, and sometimes the two are combined,” reports the Economist Intelligence Unit. “A federal agency, Investment Canada, must approve direct foreign investments, whether through a new venture or an acquisition. Few applications are totally rejected.” Restricted sectors include broadcasting and telecommunications, newspapers, energy monopolies, book publishing, filmmaking and distribution, banking and insurance, and air transport. The International Monetary Fund reports that the government reviews direct investment over specified amounts when the investment would result in the acquisition or control of Canadian business. Lower thresholds apply to investments from non–World Trade Organization members or any investment in cultural industries, financial services, transportation services, or uranium production. There are no restrictions on current transfers, repatriation of profits, purchase of real estate, or access to foreign exchange.
From: 2006 Index of Economic Freedom
Background on the Canada-China Foreign Investment Protection Agreement (FIPA)
Canada and China resumed FIPA negotiations in Beijing from September 21-23, 2004. A follow-up round of negotiations was held in Ottawa between 31 May and 1 June 2005. While the existence of a FIPA should be a positive and important factor in investors’ decisions on whether to invest in the territory of the other party, it will be but one of many factors. The main effect of a FIPA is likely to be greater protection for international investors of one Contracting Party in the territory of the other. The FIPA will preserve the right of both Canada and China to regulate in the public interest.
Link: International Trade Canada
