Woman making a frame around the sun with her hands at sunrise
Woman making a frame around the sun with her hands at sunrise
Woman making a frame around the sun with her hands at sunrise

CETA is Provisionally Implemented — the C$1.5 Billion Threshold Arrives

Sep 1, 2017 Publications < 1 read

As we foreshadowed in our brief on the Investment Canada Act (“ICA”) 2016-17 annual report as well as in our March 2015 bulletin announcing significant changes to the ICA, the Canada-European Union Comprehensive Economic and Trade Agreement (“CETA”), which was provisionally implemented as of September 21, 2017,[1] has resulted in a higher threshold for net benefit reviews under the ICA for many foreign investors. In particular, non-state owned enterprise investors from the EU and certain other countries with most-favoured nation treatment under Canada’s current free trade agreements (including Chile, Colombia, Honduras, Mexico, Panama, Peru, South Korea and the United States) — collectively representing approximately 80% of ICA notifications and applications last year — now benefit from a net benefit review threshold of C$1.5 billion in enterprise value for investments in non-cultural Canadian businesses.

The C$1.5 billion enterprise value threshold is likely to result in materially fewer applications for review under the ICA’s net benefit test.

Please see our updated 2017 Competition Act and Investment Canada Act thresholds checklist.

by James B. Musgrove, Joshua Chad

[1] Bill C-30, which received royal assent on May 16, 2017, was proclaimed into force by the Governor-in-Counsel on September 12, 2017. This bill contains the amendments to various federal acts, including the ICA, which were required to implement CETA.

A Cautionary Note

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2017

Related Publications (5 Posts)

Featured Insight

Competitor Collaboration Guidelines: Competition Bureau Updates Key Guidance

On May 6, 2021, the Competition Bureau released updates to its Competitor Collaboration Guidelines.

Read More
May 10, 2021
Featured Insight

McMillan’s Employment Law Breakfast Series

McMillan’s Vancouver Labour and Employment Group is proud to launch it’s first ever Breakfast Series covering key employment and human rights issues!

Details
May 25, 2021 - 10:00 am - 11:15 am PDT
Featured Insight

Advertising in the Virtual World

Join members of the Marketing and Advertising Group on Thursday, June 17, 2021 at 12 pm ET as we discuss current trends in marketing and advertising in an increasingly virtual world, and during the ongoing global pandemic.

Details
June 17, 2021 - 12:00 pm to 1:30 pm ET
Featured Insight

Ontario’s New Excess Soil Regulations – Construction Contract Implications

Ontario’s new On-Site and Excess Soil Management Regulation, O. Reg 406/19 may impact existing and future construction contracts

Read More
May 5, 2021
Featured Insight

End of the Bellatrix GasEDI Saga Marks Beginning of Market Fallout

The Alberta Court of Appeal's dismissal of Bellatrix's appeal leaves substantial uncertainty for natural gas market and all derivatives counterparties.

Read More
May 5, 2021