44th Parl. 1st Sess.
February 6, 2023 11:00AM
Madam Speaker, today I rise to speak to Bill C-34, an act to amend the Investment Canada Act.
Bill C-34 implements a set of amendments to improve the national security review process of foreign investments and modernize the Investment Canada Act. Collectively, these amendments represent the most significant legislative update of the ICA since 2009.
These amendments would also ensure that Canada's review process is consistent with those of our allies. This consistency is something that business owners and stakeholders within the riding of Waterloo have also spoken to me about. It is something that is important to them, as Canada is a trading nation and being aligned with our allies is something of importance.
Canada has a long-standing reputation for welcoming foreign investments and a strong framework to promote trade, while advancing Canadian interests. In fact, Canada has one of the earliest and most robust screening processes for foreign investments in the world.
For some history, the Investment Canada Act was enacted 38 years ago in 1985, to encourage investment in Canada that contributes to economic growth and employment opportunities. The act allows the government to review significant foreign investments to ensure that these benefits exist. The act was updated in 2009 to include a framework for a national security review of foreign direct investments. Since then, and for the longest time, the ICA has been one of the only pieces of legislation in the world that provides a reviewing mechanism for the net benefit and national security threats of foreign direct investments.
It is clear that the federal government has long played a leadership role in setting a framework for investment review that attracts needed positive foreign direct investments without compromising on national security. However, the world looks a lot different now than it did in 2009. The global market has rapidly changed along with shifting geopolitical threats. Canada is growing and our interactions with the rest of the world are changing.
The government has seen a rise in state-sponsored threat activities from hostile state and non-state actors. They are attracted by Canada's technologically advanced open economy and world-class research community. This is something we know very well in the riding and region of Waterloo.
The level of sophistication of these threats has also increased. Hostile state and non-state actors are deliberately pursuing strategies to acquire goods, technologies and intellectual property through foreign investments that could damage Canada's economy and undermine national security while possibly controlling the supply chains of critical goods. These concerns are real and are why debating and advancing legislation is necessary.
The COVID-19 pandemic has created additional vulnerabilities that could lead to opportunistic and potentially harmful investment behaviour by foreign investors. In response, the government has taken swift, concrete action to enhance scrutiny on inbound investments related to public health and critical goods and services. The government has again taken action recently by enhancing scrutiny on investments involved in sensitive goods and technology, such as critical minerals, critical infrastructure and sensitive personal data.
Through these investments, the government is prepared to once again take action to strengthen the national security review, while allowing for positive foreign investments. Canada is a trading nation and we work with international allies. The reality is that economic-based threats to national security are an area of increasing concern, not just for Canada but for our allies as well.
Other jurisdictions internationally are moving in response to the shifting geopolitical threats either by amending or by putting in place new investment screening regimes. Our action is needed to bring Canada into greater alignment with our international partners and allies. For example, I understand that Australia has updated its laws on foreign direct investment. It made a prominent change by introducing authorities to protect national security in January 2021. These include fresh powers for the Australian government to require mandatory notification for transactions involving a national security business before the transactions are closed.
Additionally, the United Kingdom introduced a new stand-alone regime on national security and investment in January 2021. The act creates, for the first time in the U.K., a mandatory obligation to secure clearance for transactions that acquire control of a business in around 17 specified and sensitive sectors before they are completed.
The U.K. has also introduced legislation that allows the government to impose interim orders while the review is being conducted, preventing foreign investors from obtaining confidential information or accessing sensitive sites or assets until the review is complete.
Our cousin to the south, the United States of America, overhauled its foreign direct investment laws in 2018. The amendments added new types of transactions subject to government review and, for the first time ever, mandated notification of transactions involved in critical technologies, certain critical infrastructures or sensitive personal data of American citizens. New regulations fully implementing the act took effect in February 2020.
The proposed amendments in Bill C-34 would address the concerns we have heard from Canadians and which have been echoed by our allies. The proposed amendments in Bill C-34 would address these concerns by introducing new preimplementation filing requirements for specified investments, as well as the power to implement interim conditions during national security review of the investment.
This would provide Canada with the new governance capacity to address the increasingly complex threat landscape. Bill C-34 would also ensure that Canada's foreign direct investments screening regime remains world-leading.
As I have shared, Canada and our allies share similar national and economic security concerns. They are concerned with threat actors acting and operating in multiple jurisdictions to secure a monopoly in critical assets and technology.
It is becoming increasingly important to share information with allies and support national security assessments to prevent these threats from happening.
Previously, the minister had limited capacity to share case-specific information with international allies. Bill C-34 would introduce the authority for more threat information sharing by the minister with international counterparts for national security reviews.
This could help both Canada and our partners defend against an investor who may be active simultaneously in several jurisdictions and be seeking same sensitive technology or critical assets.
For example, the amendment would allow the minister to reach out to a foreign partner and disclose information about the investor to gain additional information and to support Canada's own national security assessment. That said, Canada would not be obligated to share such information where there are confidentiality or other concerns.
There is never a shortage of critics, but this legislation is about making sure that Canada welcomes foreign investment and trade that encourages economic growth, innovation and employment opportunities in Canada for Canadians.
I believe that this approach is pragmatic and principled, and provides a coherent and solid framework to address evolving geopolitical threats while allowing Canada's review regime to be more aligned with our international allies. If there are ways to make this legislation better, I believe we have the opportunity now to work together to make that happen.
We are currently at second reading. This legislation is being debated in the House. To see it go to committee where it can be further scrutinized, where witnesses can attend and appear and amendments can be made, would really allow for this legislation to work for more of the Canadian economy.
With Bill C-34, Canada would continue to encourage positive investments without compromising national security. I think it is really good that this legislation is being debated as a stand-alone piece of legislation, where we actually can get into the details of what would work better, because it is important we have legislation that promotes and supports foreign investment but also makes sure we do not compromise national security.
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Madam Speaker, I think in my comments that I shared today I did state there will never be a shortage of critics, and it is important that we debate and that we make sure this legislation right. This is about the economic and national security of Canada. Foreign investments and trade are necessary for Canada's economic growth and employment opportunities, but need to be done while protecting Canada's national interests. I think that is why looking at this legislation is really about making sure the way we move forward is better for Canadians, for Canada's economy and for ensuring our national security. I think the member knows very well that we do have a process, and that this is the time for providing feedback that is going to improve this legislation. That is why the member was elected. He was not elected only to oppose, but also to debate how we make legislation work better for his constituents, my constituents, our constituents and our country, and this is the time to do it.
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Madam Speaker, I think it is time that we actually debated this bill. We need to make sure that there are solutions and processes in place that will work for more Canadians.
I would say that, yes, we can always look at what has taken place in the past. We can also ask how we go about it to make sure we have systems in place so these concerns the member is raising are addressed and to make sure information is available, and then that we move forward in that way. I think that is why this legislation today is a stand-alone piece of legislation. It is not within a budget bill. It is not within something else. It is one piece of legislation we are debating because of the importance of the topic. I think everything the member has to contribute is important, and I think that once this legislation gets to committee, we can ensure that any of the concerns he is raising are addressed. I am sure the government looks forward to working with him.
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Madam Speaker, I would have to say that I am elected to represent the riding of Waterloo, and Waterloo is world-renowned for innovations and technologies. The member mentioned Nortel, and I remember very well the impact that had within my community. It is 2023, and I am still carrying a Blackberry to support my local economy and that brainpower. I would like to assure the member that I am confident that this government is always open to amendments. I think we have demonstrated many times that we can work together in the best interest of Canadians. I would like to encourage him to, as he has done in the past, continue working together to find the best way forward, because when our constituents and our country benefit, we all win.
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