The Canadian government has increased the foreign investment review threshold in respect of all transactions closing in 2006 involving acquisitions of control of Canadian businesses. Specifically, the monetary threshold for review of investments by WTO investors based in WTO-member countries has been increased from $250 million to $265 million*, unless one of the exceptional circumstances discussed below applies. However, while foreign investment review thresholds have been increased, the scope and application of Canada's foreign investment legislation remains unchanged.
*Figures are in Canadian dollars.
The increased threshold is actually a result of the inflationary indexing formula prescribed under the Investment Canada Act (the ICA), rather than a liberalization of Canada’s foreign investment policy per se. In fact, the "rules" of foreign investment review have not changed. All acquisitions of control of a Canadian business (i.e., a business carried on in Canada that has a
