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ARTICLE · 07 JANUARY 2008

Whither Foreign Investment in Canada? - The First Shoe Drops

In our October 2007 Bulletin, we reported that the Honourable Jim Prentice, Minister of Industry, had announced in a speech to the Vancouver Board of Trade that he intended to deal with the issue of national security in the context of foreign investment in Canada and that he would also be addressing specifically the issue of investment in Canada by state-owned enterprises ("SOEs").

CanadaAntitrust/Competition Law

In our October 2007 Bulletin, we reported that the Honourable Jim Prentice, Minister of Industry, had announced in a speech to the Vancouver Board of Trade that he intended to deal with the issue of national security in the context of foreign investment in Canada and that he would also be addressing specifically the issue of investment in Canada by state-owned enterprises ("SOEs").

On December 7, 2007, the Industry Minister announced the issuance of new Guidelines under the Investment Canada Act directed at clarifying how the Act will be applied to SOEs' future investments in Canada. In that connection, while acknowledging that Canada continues to welcome foreign investment and the benefits that it provides, Mr. Prentice stated that he wanted to ensure that potential SOE investors were aware how the Act would be applied to their investment proposals. In our view, any efforts to improve transparency as

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