Alteration’s To Ottawa’s Foreign Investment Rules Possible

The parliamentary secretary to International Trade Minister, Chrystia Freeland stated that the federal government is receptive to the idea of promoting better trade relations with China by lessening foreign investment restrictions.

Liberal MP, David Lametti, on CTV’s Question Period, “It’s something we would consider amongst a number of different things.”

Takeover bids for energy companies by foreign state-owned enterprises were restricted by the former Conservative government. The embargo followed China’s CNOOC Ltd making a bid for Calgary-based Nexen in 2012, causing fears of outside control of the country’s oil reserves.

According to Mr. Lametti, the government has not formally explored altering the rules; however, it is open to any suggestions or steps that might promote trade.

He failed to mention a timeline or give any timeline but said Canada needs to re-establish its relationship with China before considering trade matters.

A spokeswoman from Global Affairs Canada, a federal department responsible for overseeing international trade, stated that Lametti’s remarks do not necessarily mean the government has pledged to change the rules.

In former Prime Minister, Stephen Harper’s Conservative Party, CNOOC’s bid for Nexen had led to unrest.

Although it had been approved, the Canadian government later placed heavy restrictions on foreign investment, stating takeover bids will be approved only on an “exceptional basis” in the future.

Last week, Prime Minister Justin Trudeau made an official visit to China, in search of deeper relations with the country. The government also announced the signing of 56 deals with China worth more than $1.2-billion.

Being the world’s second-largest economy, China had attempted to sell Trudeau on a free-trade treaty similar to agreements China has sealed with Australia and New Zealand.