Mr. Speaker, I am thankful for the opportunity to speak to Bill C-34, an act to amend the Investment Canada Act.
Today the House of Commons will vote unanimously to support this bill's objectives. This bill was studied at the Standing Committee on Industry and Technology, and we encourage those members to send this bill to the Senate for its consideration.
Members all know very well this legislation plays an important role in our economy and that it helps in making Canada a destination of choice for foreign investments. This legislation will ensure there are favourable conditions for a trade based on a stable regime and clear regulation.
This legislation encourages economic growth and employment. The legislation allows for a government intervention only if an investment would harm Canada’s national security. Bill C-34 allows the government to act rapidly if the circumstances require it, and this is exactly what we intend to do with these proposed amendments.
In fact, it is clear the time has come to modernize the ICA and ensure Canada is aligned with the rest of the world. Our industry remains one of the most dynamic in the world, but as members all know, Canada is facing unprecedented geostrategic challenges and national security issues.
Canada’s foreign investment regime must adapt to the speed of innovation. In recent years, intangible assets in the knowledge economy, like intellectual property and data, have grown in importance in defining Canada’s economic strength and at the same time pose new challenges in terms of how these are to be managed to ensure the benefits accrue to Canada and Canadians.
Our government recognizes the value of the intangible economy, its growth and the relevant opportunities for all Canadians. These new innovations are driving new ways of doing business and with huge opportunities for Canadians. Our government will support this growth as it helps drive Canada’s economy and supports highly skilled, well-paying jobs.
To do so, tools such as the ICA must also be modernized to offer additional protections considering changing geopolitical and technological advancements, and to prevent hostile actors from exploiting Canada’s expertise and capacity for innovation.
Geopolitical risks and instability are now fixtures in our operating environment. Hostile state and non-state actors pursue deliberate strategies to acquire goods, technologies and intellectual property. They do so in ways that are fundamentally incompatible with Canada’s interests and principles. We also know that foreign investments can be used as a conduit for foreign influence activities that seek to weaken our norms and institutions. The nexus between technology and national security is clear and here to stay.
Rapid technological innovation has provided Canada with new opportunities for economic growth, but it has also given rise to new and difficult policy challenges. More and more, Canada is the target of hostile threats. This threatens both our national security and our prosperity simultaneously. That is why our government must adapt our tools to better defend ourselves against current and future threats.
All over the world, foreign investments have been the subject of many investigations, with a specific focus on national security. These investigations focused on several angles, such as the impact of the COVID-19 pandemic, the security implications of climate change, disruptions to global supply chains and shifting geopolitical considerations. Hence, by amending this legislation to stop the threats of tomorrow, Canada will remain a destination of choice for foreign investments.
The time is right to pursue modernization of the Investment Canada Act. Now more than ever, we need to make sure we are doing everything we can to foster an innovative, healthy and growing economy. The guidance and decisions issued over the past several years make clear that some transactions, particularly those by state-owned or state-influenced investors, may be motivated by non-commercial imperatives that could harm Canada’s national security.
Allow me to repeat that these types of investments in sectors deemed sensitive currently face enhanced scrutiny under the ICA. Our government believes an effective review regime must be robust, transparent and flexible to adapt to a changing world and that it is now time to make these changes. That is why we stand today in favour of this bill, which represents the most significant update to the Investment Canada Act since 2009.
We are making important moves now to review and modernize key aspects of the act, while ensuring that the overarching framework to support needed foreign investment to grow our economy remains strong and open. Our record as a government makes it abundantly clear that, where national security is concerned, we will not shy away from decisive action and that our assessment of risk keeps pace with evolving economic and geopolitical considerations.
The ICA already gives us much of the authority we need to intercede and address national security risk that can arise from foreign investment. These amendments build on the solid foundation and will improve the mechanics around the national security review of investments.
Now is the time to act decisively so we can make sure that Canada will continue to gain the economic benefits of investments while strengthening our ability to address threats to our country and ensure its future prosperity. It is clear to everyone that the proposed amendments in Bill C-34 would ensure an important equilibrium. They would protect Canadians and Canadian enterprises while making sure that investors will continue to view Canada as their first destination of choice.