- Member of Parliament
- Member of Parliament
- Liberal
- Nepean
- Ontario
- Voting Attendance: 67%
- Expenses Last Quarter: $104,578.46
- Government Page
Mr. Speaker, it was quite interesting to listen to the speech by the hon. member. He talked about the movement from an agriculture-dominated economy to a manufacturing-dominated economy and then to the intellectual-property-dominated system that we are in. He also mentioned critical minerals. In fact, The Globe and Mail recently ran a story titled “Canada Wants To Be a Global Leader in Critical Minerals. Why Is Australia Eating Our Lunch?” Most of the companies in the critical mineral sector are now foreign-owned. Maybe soon, 100% of them will be.
I want to ask the honourable member this question: In the changing, multipolar scenarios in the world, and with the need for more self reliance, should we look again at the entire way we promote local industries manufacturing minerals? Is it time to take a new look at these things?
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Mr. Speaker, the hon. member is exactly right. The 15 trade agreements we have signed with 51 countries, covering 61% of the world's GDP, show the world that Canada is an attractive place for foreign investment.
We want to attract foreign investments that are strategic, that promote innovation and that provide high-quality jobs in Canada. We are always open to that. However, this particular bill focuses on investments that affect national security.
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Mr. Speaker, fundamentally, the idea of breaking up private sector companies just because they have gotten large may not be great for the limited market that Canada enjoys. However, more competition in every sector is required and should be encouraged. That is my position.
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Mr. Speaker, we have been very clear that any investment that promotes innovation in Canada is always welcome. A question will only come up if that innovation affects national security. If there are any speculative investments, like the purchase of agricultural land just for the sake of holding it, they too should be looked into. At the end of the day, the ownership of limited and productive resources does constitute a national security threat.
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Mr. Speaker, national security issues due to investments made by certain state-owned enterprises were always a concern. In fact, I think we have gone back and re-reviewed some of the decisions made to allow foreign investments by state-owned enterprises.
My view is that this bill is comprehensive enough to take care of the national security review of any investment made by any foreign entity.
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Mr. Speaker, I rise today to speak on Bill C-34, an act to modernize the national security provisions of the Investment Canada Act. We have been clear that we will always welcome foreign investments and trade that encourages economic growth, innovation and employment opportunities in Canada.
At the same time, we know that economic security is national security. That is why this bill, which will amend the Investment Canada Act, would bring forward improvements so our government can act more quickly when required. This legislation would represent the most significant update of the ICA since 2009 and would ensure that we could address changing threats that can arise from foreign investment. While our government continues to welcome foreign direct investment, we are modernizing the ICA framework to ensure Canada’s continued prosperity while acting decisively when investments threaten our national security.
Let me first appreciate the fundamental importance of foreign investments to our economy. Canada has a long history of welcoming foreign capital, businesses and expertise, and this openness has played a pivotal role in shaping our nation's growth. Foreign investments are a driving force behind economic development in Canada. They fuel innovation, stimulate job creation and enhance our global competitiveness. Foreign direct investment has enabled us to harness the expertise and resources of international partners, thereby propelling our own industries forward.
These investments result in the creation of well-paying jobs for Canadians and help diversify our economic landscape. Moreover, they facilitate the transfer of knowledge and best practices, fostering innovation and productivity enhancements. While the economic benefits of foreign investment are undeniable, we must not overlook the critical dimensions of national security. Protecting our sovereignty, infrastructure and sensitive data is paramount. National security is not a matter of choice. It is an unwavering obligation of the government to safeguard the interests and well-being of its citizens.
Over the years, the interconnectedness of our world has increased exponentially. Technology and the flow of capital have become global, creating unprecedented opportunities but also potential vulnerabilities. We cannot afford to be complacent when it comes to the protection of our national interests. While our commitment to an open and welcoming environment for foreign investors remains steadfast, it must coexist with a thorough evaluation of the national security implications that each investment brings with it.
As I said earlier, we welcome foreign investments and trade that encourages economic growth, innovation and employment opportunities in Canada. At the same time, we know that economic security is national security.
In my speech during second reading, I had mentioned the importance of economic security. I would like to touch on that again. The importance of economic security in the context of foreign direct investments cannot be overstated. In the pursuit of economic growth, it is essential that we safeguard against any potential threats to our long-term economic security.
The economic security part primarily concerns the stability and growth of our economy, while the national security part pertains to safeguarding our sovereignty and protection from external threats. Foreign direct investment is a powerful tool for economic growth, but it must be leveraged in a way that ensures that all sectors of our economy continue to thrive.
The steel and aluminum industries in Canada, which are 100% foreign-owned, serve as a compelling example of how a failure to address economic security can potentially result in stagnation and even decline. These industries, dominated by foreign ownership, have seen little to no growth in production capacity over the past two decades.
While the rest of the world is expanding its aluminum and steel sectors, Canada's lack of growth and diversification in these areas has hindered our ability to tap into new markets and fully leverage our numerous free trade agreements. In fact, there are hardly any exports from the Canadian steel and aluminum industries outside of North America, even though we have signed 15 free trade agreements with 51 different countries that cover 61% of global GDP.
There is a need for a comprehensive approach to foreign investment that addresses not only national security but also the economic well-being of our nation. We must find a balance that encourages investment while ensuring that the growth and diversification of our economic sectors continue to contribute to our long-term economic security.
To strike a balance between these economic requirements and national security requirements, we have adopted a comprehensive and multi-dimensional approach to foreign investments. The approach is rooted in a principled and fact-based assessment of each investment proposal. The key elements of our approach include legislation and regulations, a national security review process, risk assessment, proportionate responses, consultation and transparency.
There are certain principles that guide our approach to foreign investments and national security. The first is sovereignty and security. Canada's sovereignty and national security are not negotiable. The government is committed to safeguarding the country's interests and ensuring that foreign investments do not compromise its security.
The second is openness and partnership. Canada remains open to foreign investments that enhance economic growth and job opportunities. We value international partnerships and the mutual benefits they bring.
The third is transparency and accountability. Our approach is characterized by transparency, accountability and due process. Decisions are made based on facts, expert advice and consultation with relevant parties.
The fourth is proportional response. The response to national security risks is proportionate to the level of risk identified. This ensures that legitimate and beneficial investments are not unfairly restricted.
The fifth is continual adaptation. Our approach is not static. It evolves to address new and emerging challenges. The government remains committed to staying ahead of evolving threats and opportunities.
With this act, we are highlighting that Canada's approach to foreign investments strikes a delicate balance between economic growth and national security. We remain committed to welcoming foreign capital and expertise that contribute to our prosperity, innovation and employment opportunities. However, this commitment is tempered by an unwavering dedication to safeguarding our sovereignty and national security.
The Investment Canada Act, the national security review process and the guiding principles that underlie our approach provide a robust framework to evaluate foreign investments. Through consultation, transparency and a proportional response to identified risks, we ensure that legitimate investments are not discouraged and national security is upheld.
In this era of interconnectedness, Canada's approach is not a mere policy. It is a reflection of our values, our commitment to our citizens and our vision for a prosperous and secure future. We embrace the world while safeguarding our national interests, and in doing so, we strengthen the very foundations of our great nation.
The ICA provides for both the net benefit and national security reviews of foreign investments into Canada. It was established to provide investor certainty while reserving Canada's ability to block individual investments under specific circumstances. The act is designed to encourage investment, economic growth and employment, only interceding when an investment is not of net benefit to Canada or would harm national security.
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Mr. Speaker, I appreciate the amendment to bring the threshold to zero dollars with respect to state-owned enterprises.
I would like to ask my hon. colleague's opinion about the investments done by multinational companies where they come and capture an entire sector, as it is today with the steel and aluminum sector being entirely foreign owned. They just become the branch office of the foreign multinationals, focusing only on the North American markets, and never attempting to export the talent, resources and expertise that is available in Canada to the countries with which we have free trade agreements across the world.
Does that not also fit into the definition of economic security which, in my view, is the same as national security?
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Mr. Speaker, the member for Windsor West has been a long-time member of the industry committee and has a good knowledge of the various industrial sectors.
I want to ask him about the impact of foreign ownership on certain segments of the industrial sector. For example, almost every company in the steel or aluminum industry is foreign-owned, and none of those steel and aluminum sector companies have had any capacity during the last 20 years. The stagnation we see with this foreign ownership does not impact the economic security of Canada, which can also be related, in one way or another, to the national security of Canada.
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Madam Speaker, everything that affects Canada's competitiveness, growth, economic security or national security needs to be looked into. Let me be very clear. I am for foreign direct investment. I am for free trade. However, all aspects that affect our national security and economic security need to be looked into.
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Madam Speaker, investment by state-owned enterprises from non-friendly countries obviously needs to be looked very deeply into. I am not sure whether we should have a minimum threshold, but as I said, every single investment by state-owned enterprises needs to be looked into.
At the same time, in addition to state-owned enterprises, I also want to highlight investment by global multinational companies in the steel and aluminum sector, as I mentioned, that have made direct investment. One hundred percent of the sector is foreign owned, which is leading to Canadian companies becoming the branch offices of these multinational companies and is curtailing the potential to grow Canadian exports around the world.
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Madam Speaker, in addition to the economic security issues I discussed, my colleagues brought forward others earlier in debate, like the purchase of intangible assets other than the company itself, and some issues that were brought forward by the member from Windsor on the lack of competition resulting in foreign direct investments. These are the kinds of things that need to be considered now. We know this act has not been looked at in, I think, the last 13 years. This is the first opportunity we have and we need to use this opportunity to consider all aspects that are directly related.
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Madam Speaker, I will be sharing my time.
I am pleased to speak to Bill C-34, an act to amend the Investment Canada Act.
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.
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 allowed the government to review significant foreign investments to ensure these benefits exist. The act was updated in 2009 to include a framework for national security review of foreign direct investments.
Bill C-34 would implement a set of amendments to improve the national security review process of foreign investments and modernize the ICA. 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 our allies'.
However, in my view, there is another issue in foreign direct investment that should be looked into, and that is dealing with economic security. I believe this is not only an opportunity but also a necessity that we deal with foreign direct investment that results in economic stagnation of any sector of our economy, thus affecting our long-term economic security.
Let me explain this by first quoting a couple of sentences from the backgrounder that was published, which states, “The Act is designed to encourage investment, economic growth and employment”. The backgrounder also states, “The Government of Canada has committed to promoting economic security and combatting foreign interference by modernizing the ICA to strengthen the national security review process and better mitigate economic security threats arising from foreign investment.” For me, the keywords are “economic security”. There is no mention of the words “economic security” in the bill tabled by the government that we are debating today. Probably the thought is that “economic security” and “national security” are considered as synonyms.
I will now explain the importance of economic security. Canada is growing. Our population is growing. Our economy and GDP are growing, and we need our economic sectors to grow and contribute to economic growth and employment. If any economic or industrial sector does not grow and does not contribute to economic growth due to foreign direct investment, then in my view this is a threat to economic security. Any stagnation or complete lack of economic growth in a growing economy will directly affect our economic security in the medium to long term.
I will give two examples where foreign direct investment in Canada has resulted in stagnation of economic growth, which in turn is a threat to our economic security.
The two industrial sectors that are prime examples of this are the steel and aluminum industries in Canada. All steel and aluminum sector companies in Canada are foreign-owned. Due to our encouragement of foreign direct investment, today both of these sectors, with 100% foreign ownership, have been reduced to a branch office of multinational companies that are dominating aluminum and steel industry worldwide. Due to this 100% foreign ownership, there has been no increase in production capacity in both of these sectors in Canada for the last 20 years.
During the last 20 years, aluminum production has basically stagnated at about three million tonnes. While many new aluminum smelters are being set up in China and other countries, the installed capacity of the aluminum sector in Canada has stagnated. It is the same with the steel industry. During the last 20 years, the installed capacity has basically stagnated at about 15 million tonnes. Not only is there no growth in the production capacity of steel and aluminum, but due to 100% foreign ownership, Canada’s steel and aluminum exports are limited just to the U.S. and Mexico. There are hardly any Canadian steel and aluminum exports to Europe or the growing markets in Asia.
Canada has signed numerous free trade agreements across the world. We have free trade agreements with Europe and Asia-Pacific countries. In total, we have free trade agreements with over 50 countries, but has the aluminum and steel sectors taken advantage of these free trade agreements to increase Canadian exports? The answer is absolutely no.
Therefore, my question is this: If our welcoming foreign direct investment leads to 100% foreign ownership in any entire industrial sector and this results in growth stagnation of that sector, is it not a threat to our long-term economic security? If 100% foreign ownership prevents Canadian industry from taking advantage of our natural resources and our expertise to export Canadian goods across the world, is this not a threat to our long-term economic security?
We need all sectors in our industry to add value to our natural resources and contribute to Canada's economic growth by increasing their capacity to produce. We need all economic sectors to build on our many decades of knowledge and expertise to contribute to Canada's economic growth by increasing Canadian exports across the world. I again state that if any economic or industrial sector does not grow and does not contribute to economic growth due to foreign direct investment, then in my view this is a threat to economic security. Also, any stagnation or complete lack of economic growth in a growing economy will directly affect our economic security in the medium to long term.
I call upon the House to take this opportunity to address this shortcoming in the Investment Canada Act. Other than that, I completely agree with everything else that has been proposed in the bill. There was a need to update and streamline the administrative process in light of a shifting geopolitical environment and a need for alignment with international allies and for better coordination efforts with allies.
The world looks a lot different now than in 2009 when the act was last amended. The global market has rapidly changed with shifting geopolitical threats. Canada's 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 and open economy and world-class research community.
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 will damage Canada's economy and undermine national security while controlling the supply chain of critical goods. In fact, Canada has one of the earliest and most robust screening processes for foreign investments in the world.
The COVID-19 pandemic has accelerated this threat by creating vulnerabilities that could lead to opportunistic, harmful investment behaviour by foreign investors. They are looking to buy up vulnerable Canadian businesses. 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 again took action recently by enhancing scrutiny of investments involved in sensitive goods and technology, such as critical minerals, critical infrastructure and sensitive personal data. Through these amendments, the government is prepared to once again take action to strengthen the national security review while still allowing for positive foreign investments. Economic-based threats to national security are of increasing concern not just for Canada but for our allies as well.
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- Apr/25/22 12:41:33 p.m.
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Madam Speaker, we need not only to support Canadian companies in Canada to explore and develop mineral projects, but also to support Canadian companies to go around the world to find wherever the resources are and to use Canadian expertise, Canadian knowledge and Canadian finance-raising capacity. We need to make Canadian companies go global and become world leaders.
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- Feb/17/22 10:44:03 p.m.
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Mr. Speaker, as we enter the third week of occupations and illegal blockades, we need this Emergencies Act for two reasons, in my opinion.
Number one is that it is time to uphold the rule of law.
Number two is that it is time to take action to protect our critical economic infrastructure before this makes permanent damage to our economy.
As we all know, the rule of law is a political philosophy that involves the belief that all citizens and institutions within a state, country or a community are accountable to the same laws.
Canada is a wonderful country with a very diverse population. People of different ethnicities and different faiths live together to make Canada the best country in the world. Canadians have come to Canada from over 100 different countries. According to Statistics Canada, 120 languages are spoken in my riding of Nepean, although 60% to 65% of my Nepean residents speak English as their first language.
Some Canadians came to this country several generations back. Some came several decades back. Some are recent arrivals. Many Canadians came to this country for the freedom it offers to all its residents. Many came fleeing persecution in the countries in which they were born. Many came to Canada for the economic opportunities that it provides. Many came to Canada to provide better lives for their children than they had.
There is one common denominator to all Canadians, especially the new Canadians who came to Canada. The fundamental reason is that Canada upholds the rule of law. Upholding the rule of law is so important, and it is so built into the fabric of our country, that the current situation is unbelievable to many Canadians.
Whether it is for economic opportunities or better lives for their children, the fundamental reason for the security this country provides for hard-working Canadians to generate wealth for the economic development of the country, and for their families and their children, is the rule of law.
It is unbelievable for many Canadians that the rule of law is so openly flouted, and that the rule of law is made a mockery. It is possible that our law enforcement agencies built their systems and processes around the assumption that Canadians, generally speaking, uphold the rule of law. Maybe this is the reason why we see an occupation today by a foreign-funded group holding our men and women in uniform in contempt.
We need to support our hard-working men and women in uniform. We need to provide them with the tools they need to restore law and order. This is the reason for the Emergencies Act, which is targeted, reasonable and proportionate. It strengthens and supports law enforcement agencies so that they have more tools to restore order and protect critical infrastructure.
The second reason for the Emergencies Act, as I mentioned, is to protect our critical economic infrastructure. Canada is rich today. We enjoy a very high standard of living because of continued economic growth. This economy of ours is very much dependent on our trade.
Trade accounts for 60% to 65% of our GDP. This trade is dependent on the smooth flow of good and services across the border with our biggest trading partner.
This economy and this trade have given us wealth. They allow us to take care of our seniors. They allow us to provide affordable housing. They allow us to deliver quality health care to all Canadians, irrespective of their income status. For a small, foreign-funded group of Canadians to misuse the freedom of expression and the freedom to protest to damage fundamental and critical economic infrastructure is simply not acceptable. It is time for us to act before permanent damage is done to our economy and, in turn, to the Canadian way of life.
This big economy, and this big trade we have, did not only come about because of hard-working Canadians. It is also made possible by investors from different parts of the world who found Canada to be a good place to invest. We have major foreign companies in the automobile sector, the aluminum sector and the steel sector making investments in Canada. They do this because Canada is always open for business, because Canada offers little disruption to conducting business, and because Canada allows the free trade and flow of goods and services.
This assumption is made by international investors, and it is the guarantee that international investors have come to expect. It is being fundamentally challenged and it is time to act now.
Foreign-funded groups have crossed the line and we have to act to protect the interests of all Canadians. It is time to reinforce the principles, values and institutions that keep all Canadians free. The blockades and occupations are illegal. They are a threat to our economy and our relationship with trading partners. The foreign-funded groups are a threat to our supply chain and the availability of essential goods, such as food and medicine. The foreign-funded groups have become a threat to public safety.
Let me be clear: Every Canadian has the right to express their opinion, their disagreement, or even their anger. They have that right. I will be the first person to defend those rights in our wonderful, free and democratic country. However, this right does not extend to the foreign-funded groups depriving other Canadians of the right and freedom to enjoy a peaceful life. The right to disagree does not extend to foreign-funded groups blockading our critical economic infrastructure. The right to protest does not extend to foreign-funded groups causing harm to families and small businesses, and destroying jobs and the economy.
As the Prime Minister has said, under the Emergencies Act, the Canadian Charter of Rights and Freedoms continues to protect Canadians' individual rights. We are not going to call in the military. We are not limiting people’s freedom of expression. We are not limiting freedom of peaceful assembly. We are not preventing people from exercising their right to protest legally.
Today, I ask all members of the House to take action against the illegal blockades and occupations that are harmful to Canadians. I ask all members of the House to stand up for families and workers.
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