Industry committee  Those international thresholds for net benefit are the same that allow for Canadian companies to be able to make investments in our partner, ally countries without being subject to net benefit reviews, and allow them to continue to engage in acquisitions and foreign investment outside of Canada, recognizing that's an important part of the overall growth of our companies, without an additional uncertainty.

Industry committee  The only other consideration I would add is that oftentimes the linkage to the SOE is actually through an affiliation to the net investor who's not necessarily of the nation of the SOE, but is actually a trading ally.

Industry committee  Multiple times. The critical mineral cases are all below threshold.

Industry committee  They were subject to a national security review.

Industry committee  I will simply lay out for the chair the way the act works. We draw on the equities of the national security community at the outset of all investments, some of which draw upon the extensional capacity of the act for further time, but all investments are subject to a national security review.

Industry committee  The thresholds are immaterial to the contemplation of national security. National security reviews are contemplated at the outset of the investment, and national security considerations will determine whether or not further steps are required to be able to understand further detail related to the investment.

Industry committee  There are different stages of those reviews.

Industry committee  Section 25.1 is a generalized commencement. Section 25.2 is an investigation as to whether or not it could be injurious to national security, when there's a presupposition that there could be an injury to national security. Section 25.3 is the continuation of the investigation because it's believed that it would be injurious to national security.

Industry committee  If it can't meet the “could” test by which it could be injurious to national security, on the advice of the national security community, it does not proceed to the next stage.

Industry committee  Section 25.1 is the commencement of the national security review. Section 25.2 is the extension of it. Section 25.3 is “could”, and then the ultimate decision is then the GIC on “would”.

Industry committee  That's correct.

Industry committee  I don't want to get into the specifics of individual cases, but I will note that there are below-threshold cases that have continued to be reviewed to the fullness under the national security provisions. This includes some that have gone all the way through to the notion that they would be injurious to national security.

Industry committee  Mr. Chair, I would flag two considerations for the committee, one of which I hope I'm not excessively repeating myself on, but the thresholds that have been articulated for the purposes of what can be reviewable under a net benefit test are part of international agreements that are set amongst the trading nations of the world to ensure there is not undue friction in the capacity for the global exchange, and thereby allowing for net benefit to concentrate on those very large transactions for which countries want to dedicate significant scrutiny from a net benefit perspective.

Industry committee  The formula is in the act, and our trade deals specify that we can't make the act more restrictive than that which appears within the current formula under most-favoured nation clauses. You can't make it worse than what was agreed to at the time, which is the formula that's been set out.

Industry committee  Exactly.