This is from the Progressive Economist.
Any distinctly Canadian capitalism and any capitalism that might be skewed toward Canadian interests rather than that of global capital will be eroded even more under these changes. The changes are part and parcel of the merging of Canada, the US , and Mexico that began with NAFTA. Big Capital worries that the coming downturn may lead to protectionism and so you will see a humungus amount of clap trap over the next while about the great virtues of free trade. Harper will be quite happy to serve the interests of global capital led by the US.
The Speech from the Throne and Foreign Ownership
Posted by Andrew Jackson under foreign investment/ownership.November 20th, 2008Says that “Our government will proceed with legislation to modernize our competition and investment laws, implementing many of the recommendations of the Competition Policy Review Panel.”
The key recommendation of the panel was that only very large foreign takeovers worth more than $1 Billion (vs $300 Million today) should be reviewed at all, and that the onus should not be on the foreign investors to show net benefits to Canada, but on the Canadian government to show that a deal is clearly not in the national interest. So a foreign investment review regime that has, to date, resulted in only one denial ever of a takeover bid will be rendered even more toothless.
The Panel clearly opened the door wide to foreign takeovers in sectors where some regulatory hurdles and degree of Canadian ownership and control still exist - communications companies, the banks, airlines and the media/cultural sector industries. They said regulatory regimes should be reviewed every five years, with a clear bias to deregulation.
Immediate changes were recommended, including allowing 49% foreign ownership of Canadian airlines on a reciprocal basis, and liberalization of foreign ownership limits in telecom and broadcasting. They contemplate more or less immediate approval of all new investments in the cultural sector, and higher thresholds for review of takeovers in the cultural sector. They want to strip the Minister of Canadian Heritage of any role in the process. (The Minister can now ask for a review.)
An end to a de facto ban on bank mergers is proposed - which would likely lead to further liberalization of entry to Canadian financial services in order to maintain competition.
Showing posts with label Canadian policy on foreign ownership. Show all posts
Showing posts with label Canadian policy on foreign ownership. Show all posts
Thursday, November 20, 2008
Sunday, March 23, 2008
Russia moves to control foreign ownership
This is from the CBC.
There seems to be a trend towards more nationalism in Russian politics. At the same time this will protect Russian oligarchs allied with Putin from competition unchecked purchase of Russian assets by international capital. The open season on former Soviet assets that prevailed after the collapse of communism is now over as far as foreigners are concerned.
In Canada we have already privatised oil and gas and much of the resource is being developed by foreign companies. NAFTA ensures that Canada will be a reliable supplier of energy and other natural resources to the U.S. Our pipelines even go from north to south rather than east to west to so that Eastern Canada must rely on imported oil for the most part. We have no national energy plan and we do not stockpile any reserve supplies for emergency as does the U.S.
Our taxpayers have paid for the development of important space technology and we are now about to sell it to a U.S. weapons maker. Earlier we developed a high tech airplane and then dumped the project probably because of pressure from the U.S.
Russia moves to control foreign ownership
Last Updated: Friday, March 21, 2008 | 4:19 PM ET Russian legislators have taken the first step to limiting foreign investment in 42 strategic sectors, including energy, mass media and aerospace.
The Kremlin is already in control of the oil and gas business, and this bill will enable it to dominate other key sectors.
The bill gives a Russian commission of economic and security officials a veto over any deal in which a foreign company wants to buy control — more than 50 per cent — of Russian companies in the named sectors.
The proposed rule is even tougher for companies controlled by foreign governments. They will need permission from the commission to buy more than 25 per cent in a Russian company covered by the legislation.
Russia's lower house of parliament gave preliminary approval to the bill on Friday.
The approval suggests that the bill is likely to become law without substantial changes, because the remaining approvals required are by bodies either controlled by the Kremlin or under its influence.
There seems to be a trend towards more nationalism in Russian politics. At the same time this will protect Russian oligarchs allied with Putin from competition unchecked purchase of Russian assets by international capital. The open season on former Soviet assets that prevailed after the collapse of communism is now over as far as foreigners are concerned.
In Canada we have already privatised oil and gas and much of the resource is being developed by foreign companies. NAFTA ensures that Canada will be a reliable supplier of energy and other natural resources to the U.S. Our pipelines even go from north to south rather than east to west to so that Eastern Canada must rely on imported oil for the most part. We have no national energy plan and we do not stockpile any reserve supplies for emergency as does the U.S.
Our taxpayers have paid for the development of important space technology and we are now about to sell it to a U.S. weapons maker. Earlier we developed a high tech airplane and then dumped the project probably because of pressure from the U.S.
Russia moves to control foreign ownership
Last Updated: Friday, March 21, 2008 | 4:19 PM ET Russian legislators have taken the first step to limiting foreign investment in 42 strategic sectors, including energy, mass media and aerospace.
The Kremlin is already in control of the oil and gas business, and this bill will enable it to dominate other key sectors.
The bill gives a Russian commission of economic and security officials a veto over any deal in which a foreign company wants to buy control — more than 50 per cent — of Russian companies in the named sectors.
The proposed rule is even tougher for companies controlled by foreign governments. They will need permission from the commission to buy more than 25 per cent in a Russian company covered by the legislation.
Russia's lower house of parliament gave preliminary approval to the bill on Friday.
The approval suggests that the bill is likely to become law without substantial changes, because the remaining approvals required are by bodies either controlled by the Kremlin or under its influence.
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