Canadian Government Settles Important Investment Canada Act Case

The Canadian government and U.S. Steel have settled their long-running dispute that would have tested a key administrative guideline under the Investment Canada Act.¹ The government had charged U.S. Steel with failing to fulfill certain of the undertakings it made to the minister of industry in connection with its 2007 acquisition of Canadian steel maker Stelco. Had it lost the case, U.S. Steel could have faced penalties of up to $10,000 for each day it was found to be in violation of the Act. Under the terms of the settlement, U.S. Steel has committed to produce steel in Canada until 2015, and make various capital expenditures and charitable contributions in its Canadian plants' local communities.