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Decentralized Democracy

House Hansard - 156

44th Parl. 1st Sess.
February 8, 2023 02:00PM
Context: House Hansard - 156 - Feb/8/23
Ms. Ruby Sahota (Brampton North, Lib.)
  • Feb/8/23 6:25:19 p.m.
  • Watch
  • Re: Bill C-34 
Madam Speaker, I need further clarification of some of the comments made later in the member's speech about there being a zero threshold. I think that might not be the most effective use of everyone's time if we are chasing every dollar investment that is made in Canada. Does the member find that would be time well spent in our system?
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Context: House Hansard - 156 - Feb/8/23
Ms. Ruby Sahota (Brampton North, Lib.)
  • Feb/8/23 6:46:36 p.m.
  • Watch
  • Re: Bill C-34 
Madam Speaker, I will start off by saying that I will be sharing my time. I am pleased to appear before us today to speak in favour of Bill C-34, an act to amend the Investment Canada Act, and in particular, the context that led us to undertake these amendments. Canadians know that our government will always act quickly and decisively to respond to threats to our national security. They also know that a nuanced approach is necessary to ensure that we do not impede the flow of capital that is so important to our continued prosperity. Indeed, Canada remains a destination of choice for foreign investment. This investment helps businesses prosper and grow, creates well-paying jobs and ensures strong economic growth that benefits all Canadians. Canada has a long-standing reputation for welcoming foreign investment 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 FDI. The Investment Canada Act was enacted 38 years ago in 1985. The act allowed the government to review foreign investments to ensure that these benefits exist, and it was updated in 2009 to include a framework for a national security review of foreign direct investments. The world in which Canada now operates is increasingly characterized by the complexity of linkages between economic competition and geostrategic clashes. Globalization has brought new threats to Canada's national and economic security. By exploiting access routes to the Canadian economy through investment, potentially hostile foreign actors can appropriate technologies, data and infrastructure, which are critical to Canada's national security. We also know that some foreign states seek to inhibit Canada's economic growth and to exercise economic coercion against Canada. Such activities pose a threat not only to Canada's national security but also to its long-term economic prosperity. Canada must have the tools and resources to protect its assets from economic threats to national security. The Investment Canada Act must therefore also continually adapt to these considerations. The complexity of these dynamics can be seen in the increased volume of activity under the act in recent years. Indeed, there have been more national security reviews since 2020 than in an entire previous decade. The review process is also increasingly complex, as international transactions and ownership structures are also becoming more complicated. The proposed modernization of the Investment Canada Act is designed to make this review process more efficient and more transparent. Economic-based threats to national security are an area of increasing concern not just for Canada but for our allies as well. Other international jurisdictions are moving in response to shifting geopolitical threats, either by amending or putting in place investment screening regimes. Our action is needed to bring Canada into greater alignment with our international partners and allies. We will recall that the Investment Canada Act played an important role in Canada's response to the Russian invasion of Ukraine. As early as March 2022, we issued a policy statement that any investment controlled or influenced by the Russian state will also support a determination by the minister that there are reasonable grounds to believe that such an investment could be injurious to Canada's national security, regardless of its value. This statement sends a clear message about our commitment to protecting Canada's economic security from unwanted investment. Moreover, Canada's Indo-Pacific strategy is clear that this region will play a critical role in Canada's future over the next half century. The significant opportunities for economic growth in this region are also accompanied by challenges related to the objectives of certain world powers that do not share our democratic and liberal principles. We must respond to this reality in a number of ways, including in the way foreign investment is assessed. In short, the Investment Canada Act plays a key role in protecting Canada's economic interests from hostile foreign actors. It is broad in scope and allows Canada to respond to changing threats that may arise from foreign investment while protecting Canada's openness to beneficial international investment. The package of amendments proposed in this bill is designed to assure businesses and investors that Canada has a clear and predictable regulatory regime. Today, we are taking bold steps to modernize key aspects of the Investment Canada Act to ensure that our review regime continues to be effective, rigorous, transparent and flexible to adapt to a changing world. I thank—
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