Regulations Amending the Investment Canada Regulations (Miscellaneous Program): SOR/2020-76

Canada Gazette, Part II, Volume 154, Number 9

Registration

SOR/2020-76 April 7, 2020

INVESTMENT CANADA ACT

P.C. 2020-230 April 3, 2020

Her Excellency the Governor General in Council, on the recommendation of the Minister of Industry and the Minister of Canadian Heritage, pursuant to sections 14.2 footnote a and 35 footnote b of the Investment Canada Act footnote c makes the annexed Regulations Amending the Investment Canada Regulations (Miscellaneous Program).

Regulations Amending the Investment Canada Regulations (Miscellaneous Program)

Amendments

1 (1) The definitions controlled by a NAFTA investor and NAFTA investor in section 2 of the Investment Canada Regulations footnote 1 are repealed.

(2) Section 2 of the Regulations is amended by adding the following in alphabetical order:

controlled by a CUSMA investor has the same meaning as in subsection 24(4) of the Act; (sous le contrôle d’un investisseur ACEUM)

CUSMA investor has the same meaning as in subsection 24(4) of the Act; (investisseur ACEUM)

2 The portion of section 2.1 of the Regulations before paragraph (a) is replaced by the following:

2.1 For the purposes of paragraph (f) of the definition CUSMA investor in subsection 24(4) of the Act, the following forms of business organizations are, with respect to Mexico, specified:

3 Section 5 of Schedule I to the Regulations is replaced by the following:

5 An indication of whether the investor is a WTO investor, a CUSMA investor or a trade agreement investor.

4 Sections 26 and 27 of Schedule I to the Regulations are replaced by the following:

26 If the investor is not a WTO investor, a CUSMA investor or a trade agreement investor, an indication of whether immediately before the implementation of the investment the Canadian business was controlled by a WTO investor, a CUSMA investor or a trade agreement investor.

27 If the investor is a WTO investor, a CUSMA investor or a trade agreement investor or if immediately before the implementation of the investment the Canadian business was controlled by a WTO investor, a CUSMA investor or a trade agreement investor, an indication of whether the Canadian business is a cultural business as defined in subsection 14.1(6) of the Act.

5 Section 5 of Schedule II to the Regulations is replaced by the following:

5 An indication of whether the investor is a WTO investor, a CUSMA investor or a trade agreement investor.

6 Section 26 of Schedule II to the Regulations is replaced by the following:

26 If the investor is not a WTO investor, a CUSMA investor or a trade agreement investor, an indication of whether immediately before the implementation of the investment the Canadian business was controlled by a WTO investor, a CUSMA investor or a trade agreement investor.

Coming into Force

7 These Regulations come into force on the day on which section 111 of the Canada–United States–Mexico Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2020, comes into force but, if they are registered after that day, they come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

On September 30, 2018, Canada, the United States and Mexico announced the completion of negotiations toward a revised North American Free Trade Agreement (NAFTA). Following more than a year of negotiations, the three countries reached important outcomes in key areas, including market access, rules of origin for automotive manufacturing, agriculture, labour, environment, intellectual property rights, culture, and dispute settlement. This outcome is expected to strengthen the trilateral commercial relationship and provide much-needed stability and predictability for Canadian businesses and workers. The Canada-United States-Mexico Agreement (CUSMA) was signed by all Parties at Buenos Aires on November 30, 2018, and amended by the Protocol of Amendment to the Agreement between Canada, the United States of America and the United Mexican States on December 10, 2019. An Act to implement the Agreement between Canada, the United States of America and the United Mexican States obtained royal assent on March 13, 2020.

Consequential amendments are needed to the Investment Canada Regulations (the Regulations).

Objective

The amendments have the following objectives:

Description and rationale

The Regulations are amended to replace all uses of the term “NAFTA” with the term “CUSMA.”

The definition and interpretation of a NAFTA investor and other related “NAFTA”-specific terms were set out in the Investment Canada Act. This legislation has been amended by An Act to implement the Agreement between Canada, the United States of America and the United Mexican States to replace NAFTA references with CUSMA. This amendment to the Regulations aligns with the amendments to the Investment Canada Act and ensures that the Regulations continue to be effective.

One-for-one rule and small business lens

The one-for-one rule does not apply to these amendments, as there is no change in administrative costs or burden to business.

The small business lens does not apply to these amendments, as there are no costs to small business.

Contacts

Jonathan DeWolfe
Director
Policy and Outreach
Investment Review Branch
Innovation, Science and Economic Development Canada
Telephone: 343‑291‑1697
TTY: 1‑866‑694‑8389
Email: Jonathan.DeWolfe@canada.ca

Julie Boyer
Director General
International Trade
Canadian Heritage
Telephone: 819‑953‑7672
Email: Julie.Boyer@canada.ca