CANADIAN REGULATION OF FOREIGN INVESTMENT: THE LEGAL PARAMETERS

Abstract

Despite a deluge of economic, political, social and cultural research and writing on the topic of foreign investment, there has been a corresponding lack of legal research and writing. This article explores the two most fundamental legal sources of restriction on governmental controls on foreign investment: the B.N.A. Act and the strictures of international law. Certain aspects of the legislative regulation of investment are discussed including alien power, paramountcy and the Canadian Citizenship Act, the federal treaty power and the Canadian Bill or Rights. Concerning international constraints, the rules against confiscation, enforcement on the municipal level and the implications for Canadian legislation are considered. Finally, brief consideration is given the legal implications of three main alternative policy approaches.