Greater clarity required in Canada's foreign investment rules debt

The federal government's effective rejection of BHP Billiton's bid for Saskatchewan's Potash Corporation in 2010 was seen as a flashpoint in the recent evolution of theInvestment Canada Act (ICA), which many hoped would lead to greater clarity in the rules of the game for foreign direct investment (FDI). But uncertainty persists and, with the introduction of provisions such as "exceptional" circumstances, new questions have been raised. While the federal government has undertaken measures to address specific gaps in the ICA, it has done so without conducting a more general reassessment of the overall policy regime.

By IRPP, Canada

Governance Policy Resource.