How are WTO members treated differently?
The Investment Canada Act reflects commitments made by Canada as a member of the World Trade Organization. In the case of a direct acquisition by or from a (non-Canadian) WTO investor (that is, an investor controlled by persons who are residents of WTO member countries), the threshold is significantly larger. For these transactions, the current threshold is C$299-million; however, the higher threshold applicable to WTO investors does not apply where the Canadian business is considered to be carrying on a cultural business. In light of recent amendments to the Investment Canada Act, a new threshold based on the “enterprise value” of the acquired business will apply. The criteria for determining “enterprise value” will be set out in regulations that have yet to be issued. Investment Canada officials have advised that, until such time as the regulations defining “enterprise value” are issued, the threshold for evaluating the reviewability of proposed transactions will continue to be C$5-m
