Should Canada Update Its Foreign Investment Rules? The China Minmetals—Noranda Case looks at the case with an eye to the prospect of future deals with foreign-government controlled investors in the years to come. The report calls for a formal review of the Investment Canada Act and outlines several points to consider when revisiting Canada’s foreign investment rules.
Document Highlights
In October, 2004, China Minmetals, a company owned by the Chinese government, publicly announced its intention to buy mining giant Noranda for approximately $7 billion. The announcement raised an exceptional number of concerns (and opposition), from both ends of the political spectrum. Controversial issues ranged from resource security to the question of whether a foreign government should be allowed to own a piece of Canada.
Should Canada Update Its Foreign Investment Rules? The China Minmetals—Noranda Case focuses on a timely dilemma: Canada wants and needs foreign investment—but, should a foreign-government-controlled company be allowed to buy a stake in Canada’s economy? The report also suggests that the Investment Canada Act, originally introduced in 1985, should be reviewed and amended, if necessary.
The Executive Action report includes ‘ten things to keep in mind when thinking about whether Canada should change its foreign investment rules.’
