Bill C-34 (Historical)

National Security Review of Investments Modernization Act

An Act to amend the Investment Canada Act

This bill is from the 44th Parliament, 1st session, which ended in January 2025.

Sponsor

François-Philippe Champagne  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment amends the Investment Canada Act to, among other things,
(a) require notice of certain investments to be given prior to their implementation;
(b) authorize the Minister of Industry, after consultation with the Minister of Public Safety and Emergency Preparedness, to impose interim conditions in respect of investments in order to prevent injury to national security that could arise during the review;
(c) require, in certain cases, the Minister of Industry to make an order for the further review of investments under Part IV.1;
(d) allow written undertakings to be submitted to the Minister of Industry to address risks of injury to national security and allow that Minister, with the concurrence of the Minister of Public Safety and Emergency Preparedness, to complete consideration of an investment because of the undertakings;
(e) introduce rules for the protection of information in the course of judicial review proceedings in relation to decisions and orders under Part IV.1;
(f) authorize the Minister of Industry to disclose information that is otherwise privileged under the Act to foreign states for the purposes of foreign investment reviews;
(g) establish a penalty not exceeding the greater of $500,000 and any prescribed amount, for failure to give notice of, or file applications with respect to, certain investments; and
(h) increase the penalty for other contraventions of the Act or the regulations to the greater of $25,000 and any prescribed amount for each day of the contravention.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-34s:

C-34 (2021) Law Appropriation Act No. 3, 2021-22
C-34 (2016) An Act to amend the Public Service Labour Relations Act and other Acts
C-34 (2014) Law Tla'amin Final Agreement Act
C-34 (2012) Law Appropriation Act No. 4 2011-12

Votes

Nov. 20, 2023 Passed 3rd reading and adoption of Bill C-34, An Act to amend the Investment Canada Act
Nov. 7, 2023 Passed Concurrence at report stage of Bill C-34, An Act to amend the Investment Canada Act
Nov. 7, 2023 Failed Bill C-34, An Act to amend the Investment Canada Act (report stage amendment) (Motion 3)
Nov. 7, 2023 Passed Bill C-34, An Act to amend the Investment Canada Act (report stage amendment) (Motion 1)
Nov. 6, 2023 Passed Time allocation for Bill C-34, An Act to amend the Investment Canada Act
April 17, 2023 Passed 2nd reading of Bill C-34, An Act to amend the Investment Canada Act

Debate Summary

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This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-34 aims to modernize the Investment Canada Act by strengthening the government's ability to review foreign investments that may pose a threat to national security or economic interests. The bill introduces measures such as pre-implementation filing requirements, ministerial authority to impose interim conditions on investments, harsher penalties for non-compliance, and improved information sharing with international partners. While the bill has received broad support, concerns have been raised regarding the scope of the reviews and whether the bill goes far enough to protect Canadian assets, intellectual property, and economic sovereignty from hostile foreign actors.

Liberal

  • Modernizing Investment Canada Act: The Liberals support modernizing the Investment Canada Act to address changes such as technological advancements and foreign interference, especially concerning ownership of Canadian companies and assets. The aim is to protect Canadian industries and ensure investments align with Canada's best interests.
  • Protecting national security: The legislation is intended to allow rapid government intervention if foreign investment harms Canada's national security, adapting to the speed of innovation and addressing geopolitical risks. It aims to prevent hostile actors from exploiting Canada’s expertise and capacity for innovation.
  • Balancing economic growth: The Liberals aim to balance welcoming foreign investment with protecting Canada's economic interests and national security. The goal is to attract investment while safeguarding intangible assets like intellectual property and trade secrets, ensuring economic growth and job opportunities without compromising sovereignty.
  • Aligning with international partners: The amendments in Bill C-34 would better align Canada with international partners and allies by introducing requirements for prior notification of certain investments, the authority to impose interim conditions, and the ability to share case-specific information to support national security assessments.

Conservative

  • Inadequate to address threats: The Conservatives believe the bill does not go far enough to address acquisitions by hostile states. Members noted that it has been 14 years since the act was amended and that state-owned enterprises have become extraterritorial in taking over companies globally for their own economic interests. The Conservatives feel the bill is too limited in scope to address the new challenges of a globalized economy.
  • Missed opportunities identified: Conservatives believe the bill does not adequately protect Canadian assets, companies, and sovereignty. They proposed several amendments that were rejected, including modifying the definition of “state-owned enterprises”, listing specific sectors necessary to preserve Canada's national security, and exempting non-Canadian Five Eyes intelligence state-owned enterprises from the national security review process.
  • Cabinet decision-making is essential: The Conservatives are concerned about removing cabinet from the decision-making process, as it eliminates regional perspectives and the breadth of experience from various ministers. An amendment was proposed to ensure that cabinet continues to play an active role in major decisions about foreign investment.
  • Acknowledges positive amendments: Conservatives highlight some amendments that were adopted, including reducing the threshold to trigger a national security review to zero for any investment by a state-owned enterprise and ensuring that items reviewable include acquisitions of any assets by state-owned enterprises. They also included ensuring a review if a company had previously been convicted of corruption charges.

NDP

  • Supports updating the Act: The NDP supports updating the Investment Canada Act (ICA) to reflect changes since 2009. Members believe that the bill creates more tools to ensure foreign investments align with Canada's best interests and national security.
  • Focus on intellectual property: The NDP emphasizes the need to protect intellectual property in a knowledge-based economy, supporting amendments to capture potential investments or acquisitions by foreign actors. They argue that thresholds should consider the economic value of intellectual property to ensure sensitive IP is reviewed appropriately.
  • Weaknesses remain in legislation: NDP members express concerns about the government's willingness to prioritize corporate interests over Canadian interests, citing the Rogers-Shaw merger as an example. They suggest that changing the act is insufficient without the political will to conduct thorough reviews and reject investments that do not benefit Canada.
  • State-owned enterprises: The NDP argues that the act should mandate review of acquisitions by state-owned enterprises of companies previously reviewed by the ICA. They cite the example of Anbang's acquisition of Retirement Concepts and the subsequent seizure by the Chinese government as a reason.

Bloc

  • Supports bill overall: Bloc Québécois supports Bill C-34, which amends the Investment Canada Act to strengthen the government's ability to monitor foreign investments that could compromise Canada's national security. They see it as a necessary first step in an increasingly interconnected world.
  • Protecting Quebec's economy: The Bloc emphasizes the importance of protecting Quebec's economy from potentially detrimental foreign interests. They are concerned about the impact of foreign investment on Quebec's aerospace industry and intellectual property.
  • Coordination with U.S.: The Bloc recognizes that Bill C-34 aligns Canadian security policies with those of the United States. This alignment is essential for Canada to be included in the U.S. industrial modernization strategy.
  • Review threshold too high: The Bloc believes that the bill is incomplete and that the government needs to go further in scrutinizing foreign investment. They advocate for lowering the review threshold so that more investment projects are subject to review.
  • Need economic security: While national security is important, the Bloc emphasizes the need for economic security and long-term prosperity. They caution against the harmful effects of ill-advised foreign investments on the Canadian economy.

Green

  • Bill C-34 concerns: The speaker regrets the limited opportunity for the Green Party to participate in the debate on Bill C-34. There are concerns that cabinet decision-making is too discretionary and worries about foreign investments affecting national security and sovereignty.
  • Aecon takeover concern: The speaker raised concerns about the proposed takeover of Aecon, a large Canadian engineering firm, by a company from the People's Republic of China. They questioned the need for a national security review and highlighted the implications of the Foreign Investment Promotion and Protection Agreement (FIPA) with China.
  • Paper Excellence worries: The speaker is alarmed by the takeover of Canada's pulp and paper production by Paper Excellence, owned by an Indonesian billionaire. They question whether this poses a national security threat and express concern that the acquisition happened without a foreign investment review.
Was this summary helpful and accurate?

(The House divided on Motion No. 1, which was agreed to on the following division:)

Vote #442

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:45 p.m.

The Speaker Greg Fergus

I declare Motion No. 1 carried. I therefore declare Motion No. 2 carried.

The next question is on Motion No. 3.

The question is as follows. May I dispense?

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:45 p.m.

Some hon. members

No.

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:45 p.m.

The Speaker Greg Fergus

[Chair read text of motion to House]

(The House divided on Motion No. 3, which was negatived on the following division:)

Vote #443

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:55 p.m.

The Speaker Greg Fergus

I declare Motion No. 3 lost.

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:55 p.m.

Saint-Maurice—Champlain Québec

Liberal

François-Philippe Champagne LiberalMinister of Innovation

moved that the bill, as amended, be concurred in at report stage with further amendments.

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:55 p.m.

The Speaker Greg Fergus

The question is on the motion.

If a member participating in person wishes that the motion be carried on division, or if a member of a recognized party participating in person wishes to request a recorded division, I would invite them to rise and indicate it to the Chair.

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:55 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, we request a recorded vote, please.

(The House divided on the motion, which was agreed to on the following division:)

Vote #444

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 4:05 p.m.

The Speaker Greg Fergus

I declare the motion carried.