Canada—Administration of the Foreign Investment Review Act
General Agreement on Tariffs and Trade Panel
GATT B.I.S.D (30th Supp.) 140 (Feb. 7, 1984)
Facts
Canada (defendant) adopted the Foreign Investment Review Act, which conditioned the ability of foreign entities to acquire Canadian businesses or establish new businesses in Canada upon approval of the Canadian government. The statute listed a number of factors for the government to consider in determining whether the foreign investment was likely to be of significant benefit to Canada. The statute also permitted the foreign entity to make promises or undertakings to the government as part of the proposal for the foreign investment. In practice, foreign entities made various undertakings, including commitments to purchase a certain amount or percentage of materials from Canada or from a Canadian supplier.
Rule of Law
Issue
Holding and Reasoning ()
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