Wednesday May 14, 2025
  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast
Versión Español
PanAm Post
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact
No Result
View All Result
PanAm Post
No Result
View All Result

Home » Report: Investment Canada Act Turns Away Precious Capital

Report: Investment Canada Act Turns Away Precious Capital

PanAm Post Staff by PanAm Post Staff
May 18, 2015
in Canada, Free Markets, News Brief, North America
FacebookTwitterTelegramWhatsapp

EspañolThe Investment Canada Act — which requires the screening of foreign acquisitions of Canadian companies above a certain size — is harming the country’s economy, according to a study released last week by the Vancouver-based Fraser Institute.

Burger King's acquisition of Canadian coffe chain Tim Hortons was subjected to Canada Investment Act. (Marek Ślusarczyka)
Burger King’s acquisition of Canadian coffee chain Tim Hortons was subjected to review under the Investment Canada Act. (Marek Ślusarczyka)

The policy institute’s report, An Economic Assessment of the Investment Canada Act, examines the unintended consequences of the law, which requires would-be buyers to prove that the acquisition would result in greater net benefits to Canada than those provided under local management.

RelatedArticles

CNN Fake News: The Network’s Efforts to Justify Its Actions May Be Worse than Its Actual Flawed Reporting

CNN’s audience in 2024 was the lowest in its history

December 21, 2024
The silence of the Democrats will be the main course on Thanksgiving

The silence of the Democrats will be the main course on Thanksgiving

November 28, 2024

This review process, explains the study, is based on the “concern that foreign investors may not always act in the best interests of the host country.”

Foreign investors acquiring non-cultural Canadian companies are thus required to meet multiple criteria in order to obtain approval for the transaction, particularly in the case of inward foreign direct investment.

For example, overseas buyers must prove that, post-purchase, they will create more jobs for Canadians, increase output, and increase research and development.

Such was the case when the US-based Burger King acquired Canadian coffee chain Tim Hortons in 2014, moving its own headquarters to Ontario in the process. The fast-food giant committed to maintain employment levels and expand the firm’s global presence at a faster rate than the current owners of Tim Hortons had planned.

Supporters of the Investment Act argue that it benefits the Canadian economy, and cite the fact that few acquisitions have been blocked to demonstrate its innocuous impact. Nevertheless, the Fraser Institute research suggests that the screening process may do more harm than good.

Because the Act’s special requirements for foreign investors represent an increased cost for the buyer, would-be purchasers tend to offer correspondingly lower bids, thus reducing the capital gains of Canadian owners.

“The unintended consequences of the Investment Canada Act can reverberate through the entire economy, depressing prices for Canadian assets and discouraging entrepreneurship,” Fraser Institute senior fellow and author of the study Steven Globerman writes.

“The costs of screening are likely to outweigh the benefits, so Canadians would be economically better off if the screening process was abandoned, except perhaps where national security is a concern.”

Tags: fraser institute
PanAm Post Staff

PanAm Post Staff

Related Posts

CNN Fake News: The Network’s Efforts to Justify Its Actions May Be Worse than Its Actual Flawed Reporting
Ideology

CNN’s audience in 2024 was the lowest in its history

December 21, 2024
The silence of the Democrats will be the main course on Thanksgiving
Culture

The silence of the Democrats will be the main course on Thanksgiving

November 28, 2024
These are the 21 individuals sanctioned by the U.S. for fraud and repression in Venezuela
Elections

These are the 21 individuals sanctioned by the U.S. for fraud and repression in Venezuela

November 27, 2024
The Democratic campaign organized celebrity concerts in the seven key states, all of which they ended up losing. (EFE)
Columnists

The Only Thing Kamala Harris Won in the Election: Debt and Hollywood’s Useless Support

November 12, 2024
In the style of Milei: "Department of Education, Out!" (Archive).
Columnists

Good News from Trump: He Will Close the Department of Education in the U.S.

November 12, 2024
The Amish provided one of the most memorable images of the recent election: horse-drawn buggies, as from centuries past, heading to polling stations to vote for Trump and for lost freedoms. (X)
Columnists

The “Amish Vote” and the High Price Democrats Paid for Their State Interventionism

November 9, 2024
Next Post
Guatemalan Sovereignty Wounded by UN Pitchfork

Guatemalan Sovereignty Wounded by UN Pitchfork

Subscribe free and never miss another breaking story

  • Venezuela
  • Mexico
  • Colombia
  • Chile
  • Brazil
  • Argentina
  • Podcast

© 2024 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

No Result
View All Result
  • Home
  • Regions
    • South America
    • North America
    • Central America
    • Caribbean
  • Politics
  • Economics
  • Opinion
  • Podcast
  • Authors
  • Contact

© 2024 PanAm Post - Design & Develop by NEW DREAM GLOBAL CORP. - Privacy policy

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Privacy and Cookie Policy.