Investment Canada Act

Marginal note:Limits for WTO investors

• 14.1 (1) Notwithstanding the limits set out in subsection 14(3), an investment described in paragraph 14(1)(a), (b) or (c) by

  • (a) a WTO investor, or

  • (b) a non-Canadian, other than a WTO investor, where the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, controlled by a WTO investor,

  is reviewable pursuant to section 14 only where the value, calculated in the manner prescribed, of the assets described in paragraph 14(3)(a) or (b), as the case may be, is equal to or greater than the applicable amount determined pursuant to subsection (2).

• Marginal note:Amount for subsequent years

  (2) For the purposes of subsection (1), the amount for any year shall be determined by the Minister in January of that year by rounding off to the nearest million dollars the amount arrived at by using the formula:

  (Current Nominal GDP at Market Prices / Previous Year Nominal) × amount determined for previous year

  where

  • “Current Nominal GDP at Market Prices” means the average of the Nominal Gross Domestic Products at market prices for the most recent four consecutive quarters; and

  • “Previous Year Nominal GDP at Market Prices” means the average of the Nominal Gross Domestic Products at market prices for the four consecutive quarters for the comparable period in the year preceding the year used in calculating the Current Nominal GDP at Market Prices.

• Marginal note:Publication in Canada Gazette

  (3) As soon as possible after determining the amount for any particular year, the Minister shall publish the amount in the Canada Gazette.

• Marginal note:Investments not reviewable

  (4) Despite paragraphs 14(1)(c) and (d), an investment described in either paragraph that is implemented after this subsection comes into force is not reviewable under section 14 if it is made by

  • (a) a WTO investor; or

  • (b) a non-Canadian, other than a WTO investor, if the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, controlled by a WTO investor.

• Marginal note:Exception

  (5) This section does not apply in respect of an investment to acquire control of a Canadian business that is a cultural business.

• Marginal note:Definitions

  (6) In this section and section 14.2,

  controlled by a WTO investor

  sous le contrôle d’un investisseur OMC

  controlled by a WTO investor, with respect to a Canadian business, means, notwithstanding subsection 28(2),

  • (a) the ultimate direct or indirect control in fact of the Canadian business by a WTO investor through the ownership of voting interests, or

  • (b) the ownership by a WTO investor of all or substantially all of the assets used in carrying on the Canadian business; (sous le contrôle d’un investisseur OMC)

  cultural business

  entreprise culturelle

  cultural business means a Canadian business that carries on any of the following activities, namely,

  • (a) the publication, distribution or sale of books, magazines, periodicals or newspapers in print or machine readable form, other than the sole activity of printing or typesetting of books, magazines, periodicals or newspapers,

  • (b) the production, distribution, sale or exhibition of film or video recordings,

  • (c) the production, distribution, sale or exhibition of audio or video music recordings,

  • (d) the publication, distribution or sale of music in print or machine readable form, or

  • (e) radio communication in which the transmissions are intended for direct reception by the general public, any radio, television and cable television broadcasting undertakings and any satellite programming and broadcast network services; (entreprise culturelle)

  financial institution

  financial institution[Repealed, 2009, c. 2, s. 448]

  financial service

  financial service[Repealed, 2009, c. 2, s. 448]

  WTO Agreement

  Accord sur l’OMC

  WTO Agreement has the meaning given to the word “Agreement” by subsection 2(1) of the World Trade Organization Agreement Implementation Act; (Accord sur l’OMC)

  WTO investor

  investisseur OMC

  WTO investor means

  • (a) an individual, other than a Canadian, who is a national of a WTO Member or who has the right of permanent residence in relation to that WTO Member,

  • (b) a government of a WTO Member, whether federal, state or local, or an agency thereof,

  • (c) an entity that is not a Canadian-controlled entity, as determined pursuant to subsection 26(1) or (2), and that is a WTO investor-controlled entity, as determined in accordance with subsection (7),

  • (d) a corporation or limited partnership

    • (i) that is not a Canadian-controlled entity, as determined pursuant to subsection 26(1),

    • (ii) that is not a WTO investor within the meaning of paragraph (c),

    • (iii) of which less than a majority of its voting interests are owned by WTO investors,

    • (iv) that is not controlled in fact through the ownership of its voting interests, and

    • (v) of which two thirds of the members of its board of directors, or of which two thirds of its general partners, as the case may be, are any combination of Canadians and WTO investors,

  • (e) a trust

    • (i) that is not a Canadian-controlled entity, as determined pursuant to subsection 26(1) or (2),

    • (ii) that is not a WTO investor within the meaning of paragraph (c),

    • (iii) that is not controlled in fact through the ownership of its voting interests, and

    • (iv) of which two thirds of its trustees are any combination of Canadians and WTO investors, or

  • (f) any other form of business organization specified by the regulations that is controlled by a WTO investor; (investisseur OMC)

  WTO Member

  membre de l’OMC

  WTO Member means a Member of the World Trade Organization established by Article I of the WTO Agreement. (membre de l’OMC)

• Marginal note:Interpretation

  (7) For the purposes only of determining whether an entity is a “WTO investor-controlled entity” under paragraph (c) of the definition WTO investor in subsection (6),

  • (a) subsections 26(1) and (2) and section 27 apply and, for that purpose,

    • (i) every reference in those provisions to “Canadian” or “Canadians” shall be read and construed as a reference to “WTO investor” or “WTO investors”, respectively,

    • (ii) every reference in those provisions to “non-Canadian” or “non-Canadians” shall be read and construed as a reference to “non-Canadian, other than a WTO investor,” or “non-Canadians, other than WTO investors,” respectively, except for the reference to “non-Canadians” in subparagraph 27(d)(ii), which shall be read and construed as a reference to “not WTO investors”,

    • (iii) every reference in those provisions to “Canadian-controlled” shall be read and construed as a reference to “WTO investor-controlled”, and

    • (iv) the reference in subparagraph 27(d)(i) to “Canada” shall be read and construed as a reference to “a WTO Member”; and

  • (b) where two persons, one being a Canadian and the other being a WTO investor, own equally all of the voting shares of a corporation, the corporation is deemed to be WTO investor-controlled.