Vol. 149, No. 6 — March 25, 2015
SI/2015-20 March 25, 2015
ECONOMIC ACTION PLAN 2013 ACT, NO.1
Order Fixing the 30th Day after the Day on which this Order is published as the Day on which Certain Sections of the Act Come into Force
P.C. 2015-303 March 12, 2015
His Excellency the Governor General in Council, on the recommendation of the Minister of Industry, pursuant to section 154 of the Economic Action Plan 2013 Act, No. 1, chapter 33 of the Statutes of Canada, 2013, fixes the 30th day after the day on which this Order is published in the Canada Gazette, Part II, as the day on which sections 137, 146 to 148 and 150 of that Act come into force.
(This note is not part of the Order.)
The purpose of this Order in Council (OiC) is to fix the date on which certain provisions of Bill C-60, Economic Action Plan 2013 Act, No. 1 (EAP 2013), amending the Investment Canada Act (ICA), come into force.
Pursuant to section 154 of the EAP 2013, by the terms of this OiC, the Governor in Council fixes the day, 30 days after the date of publication of this OiC in the Canada Gazette, Part II, as the day on which sections 137, 146 to 148 and 150 of the EAP 2013 come into force.
This Order brings into force amendments made to the ICA in the EAP 2013 which (1) change the basis of the net benefit review threshold to enterprise value for investments to acquire control of a Canadian business involving private-sector investors from member countries of the World Trade Organization (WTO); (2) gradually raise the enterprise value review threshold to $1 billion over four years; (3) maintain the current asset value–based review threshold for investments by state-owned enterprises of member countries of the WTO; (4) repeal ICA-related amendments that were passed in the Budget Implementation Act, 2009, that were not brought into force [i.e. sections 448, 463 and subsection 465(2)]; and (5) provide transitional provisions with respect to applications for net benefit reviews made prior to the coming into force of subsection 14.1(1), and upon which the Minister has not issued a decision.
The purpose of the ICA is twofold: (1) to review significant investments in Canada by non-Canadians to determine whether they are likely to be of net benefit to Canada; and (2) to provide for the review of investments that could be injurious to national security.
On December 7, 2012, the Government released a policy statement which clarified its approach to foreign investment by state-owned enterprises. As part of this policy statement, the Government indicated that for proposed investments in Canada by state-owned enterprises from a WTO member country, the existing net benefit threshold based on asset value would remain in place and would be adjusted annually to reflect the change in nominal gross domestic product from the previous year.
The EAP 2013 implements the Government’s plans by (1) raising the ICA review threshold, in subsection 14.1(1) of the Act, for investments involving WTO private-sector investors to $1 billion over four years and changing the basis of the review threshold to enterprise value from asset value; and (2) maintaining, through new subsection 14.1(1.1), the current asset value–based review threshold for investments by state-owned enterprises of member countries of the WTO.
These changes implement the Government’s previously announced plans to liberalize the review process for private-sector investors while maintaining its current authorities to assess the net benefit of investments by foreign state-owned enterprises.
There are no financial implications to the Government associated with this OiC.
Proposed amendments to the Investment Canada Regulations prescribing the methodology for calculating enterprise value and the additional information requirements for foreign investors were published for comment in Part I of the Canada Gazette in July 2009 and June 2012.
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