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ARTICLE · 11 NOVEMBER 2016

Two Ways Canada Will Attract Large Foreign Investors In 2017

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These changes are in support of the Canadian government's "Invest in Canada" initiative to attract foreign investment.

CanadaInternational Law
Adam Kalbfleisch
Adam Kalbfleisch
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Bill Morneau, Canada's Minister of Finance has announced amendments to the Investment Canada Act aimed at attracting private-sector foreign investment. The Minister expressed the government's plans to make things easier for foreign investors in two ways.

First, starting in 2017, the threshold for triggering a review under the so-called "net benefit test" in the Investment Canada Act will rise to $1 billion from its current $600-million level. This meets a WTO commitment two years ahead of schedule. The threshold is based on the “enterprise value” of the Canadian business; lower thresholds will continue to apply to investments in “cultural businesses” and investments by state-owned enterprises and non-WTO investors.

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