Insights Header image
Insights Header image
Insights Header image

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

Insights (5 Posts)View More

Featured Insight

Transformative Change: Your Guide to Canada’s Breathtaking Competition Act Changes

We provide a summary of far-reaching Competition Act amendments proposed in 2023.

Read More
Dec 5, 2023
Featured Insight

Class Actions May Now Be Easier to Defeat in Ontario

It is now clear: the revised preferability analysis under the amended Class Proceedings Act is a strict, more onerous hurdle for plaintiffs to satisfy.

Read More
Dec 4, 2023
Featured Insight

R. vs Greater Sudbury Webinar

Following a brief overview of the case and the SCC’s split decision, this discussion will focus on the implications of the decision to the roles and responsibilities of each project party, including the owner, contractor and design consultant (architect and engineer). The discussion will be interactive and will include an extensive Q&A period.

Details
Wednesday, December 13, 2023
Featured Insight

Client Alert – Certain Canadian Corporations May Be Subject to US Corporate Transparency Act Reporting Requirements

Certain Canadian Corporations Conducting Business in the United States May Be Subject to US Corporate Transparency Act Reporting Requirements

Read More
Nov 29, 2023
Featured Insight

Could it be True? Canada to Introduce Open Banking Legislation

On November 21, 2023, the Government of Canada released its 2023 Fall Economic Statement. The Economic Statement announced the federal government's intention.

Read More
Nov 29, 2023