Mr. Speaker, I am pleased to respond to the comments made by the hon. member for Calgary Shepard regarding foreign investment in Canada. I will do so in French because I know that the member's French is excellent and he will have no trouble understanding what I am saying.
Our government welcomes foreign investment, which is beneficial for Canadians and our economy. We recognize the important role it plays in our country. That is why Canada has a broad framework in place to promote trade and investment. The Investment Canada Act is a key part of that framework. Under the act, the Minister of Innovation, Science and Economic Development must examine and approve foreign investments of significance before they can be finalized. The net benefit review threshold is $1 billion if the investor's country of origin is a member of the World Trade Organization and $1.5 billion if Canada has a trade agreement with the country of origin. If the investor is a state-owned enterprise, the net benefit review threshold is lower. For 2018, it is set at $398 million.
At the same time, all foreign investment in Canada, regardless of value or origin, is subject to a national security review under the Investment Canada Act. This measure ensures that potential investments do not pose any threat to Canada's national security.
When an investment is subject to a review under the act, investors must supply substantial and detailed information about themselves, their ownership structure, and the extent to which they may be owned or influenced by foreign states. They are also required to provide information on the sources of funding for the investment and details about the investor's plans for the Canadian business being acquired.
This information is required to allow for a careful and thorough review of the investment to ensure its likely net economic benefit to Canada and to ensure that it will not harm national security. For every net benefit review, the minister must take into account the six factors set out in section 20 of the act. The minister approves an investment only when he is satisfied that the investment is likely to be of overall economic benefit to Canada.
These factors include the following: the effect of the investment on the level and nature of economic activity in Canada, particularly on employment; the degree and significance of participation by Canadians in the Canadian business; the compatibility of the investment with national industrial, economic, and cultural policies; and the contribution of the investment to Canada's ability to compete in world markets.
Decisions made under the Investment Canada Act regarding the potential approval of foreign investments are not taken lightly. Every decision requires a careful and thorough review, as well as a rigorous examination of the possible economic impact of the investment. The review process under the act for potential national security implications is also extremely thorough and is based on evidence and careful analyses.