Recent and upcoming reforms to the Investment Canada Act (ICA) introduce significant changes that will impact various sectors. These changes reflect a heightened emphasis on national security reviews, signalling a shift in Canada’s approach to foreign investments.
The first set of amendments to the ICA’s national security provisions took effect on September 3, 2024. These amendments give the Minister of Innovation, Science and Industry new powers in connection with national security reviews of investments into Canada. Additional amendments, which have passed but not yet come into force, will usher in a new mandatory pre-closing filing requirement for certain investments, including minority stakes in prescribed sectors, and will empower the Canadian government to subject investments by state-owned enterprises to net benefit reviews, regardless of thresholds. With a surge in national security reviews and targeted policy statements — especially concerning critical minerals and interactive digital media — stakeholders must remain vigilant to navigate these changes effectively.
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