March 5, 2025 – Ottawa, Ontario
The Investment Canada Act (ICA) is part of the framework through which the Government of Canada reviews significant foreign investments for their economic benefits to Canada, and all foreign investments for their potential injury to Canada's national security. In its application, the Government balances the objectives of encouraging foreign investment through an open and certain investment climate, and safeguarding Canada's interests by refusing foreign investments that would be harmful to those interests.
In an increasingly geopolitically fractured world, Canada is facing more frequent threats to its national security through economic means. While Canada has in place a comprehensive legislative and regulatory framework to address these kinds of threats, including the ICA, we have seen the global threat landscape shift over time as adversaries adapt to existing tools. As a consequence, it is important to continuously adjust to threats as they materialize to ensure Canadian interests remain adequately protected. For example, in 2024, the Government passed Bill C-34, An Act to amend the Investment Canada Act, which updated provisions of our foreign investment review regime to ensure that Canada has strong authorities to take action quickly when required. More recently, the Minister of Public Safety announced the release of Canada's Sensitive Technology List (STL), an important tool to bolster our national security by safeguarding Canadian innovation and development of sensitive technologies.
To ensure that the ICA continues to be responsive to the evolving threat environment, the Government is updating the ICA’s Guidelines on the National Security Review of Investments (the Guidelines) to recognize the importance of economic security in assessments of Canada's national security concerns, to incorporate the STL as a replacement for the sensitive technology areas listed in Annex A, and to reflect amendments introduced with the passing of Bill C-34.
Specifically, the Guidelines now include as a factor in making determinations under Part IV.1 of the ICA, the potential of the investment to undermine Canada’s economic security through the enhanced integration of the Canadian business with the economy of a foreign state. In applying this factor, the Government will consider, among other things, the size of the Canadian business, its place in the innovation ecosystem, and the impact on Canadian supply chains.
Based on facts and evidence, and in accordance with applicable laws, the Government of Canada will take action where necessary to protect national security and to ensure the integrity of all investments into Canada, while remaining open to investment that benefits Canadians.