The federal government has moved to protect Canadian businesses battered by the COVID-19 pandemic or producing medical supplies from being gobbled up by outside interests by tightening the rules around foreign investments and takeovers.
The new measures announced over the weekend follow the lead of other countries in Europe and elsewhere by adding additional scrutiny to a range of proposed investments and transactions until the economy recovers from the pandemic.
B次元官网网址淲e recognize that countries around the world are looking at their own regimes and recognizing there are vulnerable businesses that are going to be important to our recovery who are perhaps exposed to foreign purchases in a vulnerable time,B次元官网网址� Prime Minister Justin Trudeau said Sunday.
B次元官网网址淪o we will be strengthening our oversight and paying close attention to foreign investment in this country to ensure that there arenB次元官网网址檛 people taking advantage of this crisis.B次元官网网址�
Foreign investments in Canadian businesses that deal with public health or the provision of what the government loosely defines as B次元官网网址渃ritical goods and servicesB次元官网网址� are among those that will get an extra close review, according to Innovation, Science and Economic Development Canada.
The federal government will also be examining all investments by companies or entities with direct or suspected links to foreign governments while some other investments will be required to apply for approval from the federal industry minister.
The added scrutiny comes as countries around the world are ramping up their at-home abilities to produce critical medical supplies and personal protective equipment for health-care workers and others working on the frontlines during the COVID-19 pandemic.
B次元官网网址淎s we strengthen our own domestic industry and production, we wouldnB次元官网网址檛 want a foreign investor to be able to take that production that is being made for Canadians in this moment of crisis and send it overseas,B次元官网网址� Trudeau said.
B次元官网网址淲e also recognize that there are perhaps some startups with brilliant ideas that are facing a cash-crunch right now that we would very much want to remain Canadian for the coming years who could be exposed to predatory foreign investors.B次元官网网址�
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The governmentB次元官网网址檚 decision to add an additional layer of scrutiny is B次元官网网址減rudentB次元官网网址� given the circumstances in which Canadian businesses are currently finding themselves thanks to COVID-19, said Brian Kingston, vice-president of policy at the Business Council of Canada.
B次元官网网址淕iven whatB次元官网网址檚 going on right now and the fact that corporate valuations are down, there is a risk that there might be opportunistic efforts by state-owned companies, other governments around the world to acquire companies in this environment,B次元官网网址� he said.
At the same time, Kingston hoped the measures announced by the federal government and other countries are only temporary given CanadaB次元官网网址檚 reliance on trade and foreign investment for its economic prosperity.
B次元官网网址淢y hope is that this is temporary in nature,B次元官网网址� he said. B次元官网网址淥f course countries will take a more strategic look at their medical supply chains just to make sure that they have built-in resiliency. But IB次元官网网址檓 hoping that this isnB次元官网网址檛 a permanent shift to a greater level of protectionism.B次元官网网址�
Lee Berthiaume, The Canadian Press
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