Foreign ownership of companies of Canada

Foreign ownership of companies of Canada pertains to the majority-ownership of Canadian-based assets (including businesses and subsidiaries) by non-Canadian individuals or companies, as well as to companies that are effectively owned or controlled, directly or indirectly, by non-Canadians. "Non-Canadian," for all intents and purposes, refers to entities based outside Canada and to those who are not Canadian citizens or qualified permanent residents.{{cite web |publisher=Gowling WLG |title=Guide to Doing Business in Canada: Regulation of Foreign Investment |date=21 October 2022 |location=Ottawa, Ontario |url=https://gowlingwlg.com/en/insights-resources/guides/2021/doing-business-in-canada-foreign-investments/ }}

Foreign ownership (or 'foreign affiliates') of Canadian companies has long been a controversial political issue in Canada. Concerns regarding the issue generally regard ownership of previously 'Canadian' assets by foreign entities, though the exact definition of 'foreign-owned' is subject of debate.{{Citation needed|date=November 2021}}

Foreign majority-owned affiliates contribute significantly to the economy of Canada. In 2016, foreign affiliates accounted for 14% of Canada's gross domestic product and employed 12% of workers.{{Cite web|last=Government of Canada|first=Statistics Canada|date=2019-06-25|title=The Daily — Study: Foreign-owned Affiliates in Canada: Trends across Major Sectors|url=https://www150.statcan.gc.ca/n1/daily-quotidien/190625/dq190625d-eng.htm|access-date=2021-11-14|website=www150.statcan.gc.ca}}

Overview

Historically, foreign ownership was a political issue in Canada in the late 1960s and early 1970s, when it was believed by some that U.S. investment had reached new heights (though its levels had actually remained stable for decades), and then in the 1980s, during debates over the Free Trade Agreement.{{Citation needed|date=November 2021}}

However, the situation has changed; since in the interim period, Canada itself became a major investor and owner of foreign corporations. Since the 1980s, Canada's levels of investment and ownership in foreign companies have been larger than foreign investment and ownership in Canada. In some smaller countries, such as Montenegro, Canadian investment is sizable enough to make up a major portion of the economy. In Northern Ireland, for example, Canada is the largest foreign investor. By becoming foreign owners themselves, Canadians have become far less politically concerned about investment within Canada.{{Citation needed|date=November 2021}}

Something to note is that Canada's largest companies by value, and largest employers, tend to be foreign-owned in a way that is more typical of a developing nation than a G8 member. The best example is the automotive sector, one of Canada's most important industries. It is dominated by American, German, and Japanese automotive giants. Although this situation is not unique to Canada in the global context, it is unique among G8 nations, and many other relatively small nations also have national automotive companies.{{Citation needed|date=November 2021}}

In 2004, foreign-controlled corporations accounted for 21.9% of assets held in Canada, and 30.0% of operating revenues yet comprised less than 1% (approx. 8,000) of the total 1.3 million corporations in Canada. Assets of foreign-controlled corporations rose 8.3% to $1.1 trillion in 2004, while those of Canadian-controlled corporations rose 8.9% to $3.9 trillion. All in all, foreign-controlled profits soared to a record $68 billion that year, up 21.7% from 2003. Also that year, foreign-controlled corporations operating revenues in Canada averaged $96 million, compared with less than $2 million for their Canadian-controlled counterparts.

In 2006, 34 Canadian companies were purchased by foreign interests worth $62 billion, nearly 4% of Canada's market value.

= Statistics =

In 2016, foreign affiliates accounted for 14% of Canada's gross domestic product and employed 12% of workers. That year, foreign affiliates in the manufacturing sector accounted for 41% of the value added of foreign multinationals operating in Canada, an increase from 38% in 2010.

class="wikitable" \|+Value added by foreign majority-owned organizations, by sector{{Cite web\|last=Government of Canada\|first=Statistics Canada\|date=2019-06-25\|title=Foreign-owned Affiliates in Canada: Trends across Major Sectors\|url=https://www150.statcan.gc.ca/n1/pub/11-626-x/11-626-x2019012-eng.htm\|access-date=2021-11-15\|website=www150.statcan.gc.ca}} ! colspan="2" rowspan="2" \|Sector ! colspan="3" \|Value added (CA$billion)
2010 !2014 !2016
colspan="2" \|Mining, quarrying, and oil and gas extraction \|36.9 \|38.4 \|21.1
colspan="2" \|Manufacturing - total \|85.5 \|105.3 \|108.6
rowspan="4" \| \|Transportation equipment manufacturing \|12.8 \|18.5 \|21.6
Chemical manufacturing \|9.2 \|13.3 \|15.4
Petroleum and coal product manufacturing \|10.2 \|14.7 \|7.7
Other manufacturing \|53.3 \|58.8 \|63.8
colspan="2" \|Services - total \|94.3 \|117.8 \|125.1
rowspan="5" \| \|Wholesale trade \|25.1 \|34.4 \|36.8
Professional, scientific, and technical services \|12.5 \|19.9 \|18.9
Retail trade \|14.2 \|16.0 \|18.4
Finance and insurance \|14.2 \|14.4 \|14.9
Others \|28.3 \|33.3 \|36.1
colspan="2" \|*All sectors - total* \|224.8 \|275.5 \|267.1

class="wikitable"

|+Value added by foreign majority-owned organizations, by sector{{Cite web|last=Government of Canada|first=Statistics Canada|date=2019-06-25|title=Foreign-owned Affiliates in Canada: Trends across Major Sectors|url=https://www150.statcan.gc.ca/n1/pub/11-626-x/11-626-x2019012-eng.htm|access-date=2021-11-15|website=www150.statcan.gc.ca}}

! colspan="2" rowspan="2" |Sector

! colspan="3" |Value added (CA$billion)

2010

!2014

!2016

colspan="2" |Mining, quarrying, and oil and gas extraction

|36.9

|38.4

|21.1

colspan="2" |Manufacturing - total

|85.5

|105.3

|108.6

rowspan="4" |

|Transportation equipment manufacturing

|12.8

|18.5

|21.6

Chemical manufacturing

|9.2

|13.3

|15.4

Petroleum and coal product manufacturing

|10.2

|14.7

|7.7

Other manufacturing

|53.3

|58.8

|63.8

colspan="2" |Services - total

|94.3

|117.8

|125.1

rowspan="5" |

|Wholesale trade

|25.1

|34.4

|36.8

Professional, scientific, and technical services

|12.5

|19.9

|18.9

Retail trade

|14.2

|16.0

|18.4

Finance and insurance

|14.2

|14.4

|14.9

Others

|28.3

|33.3

|36.1

colspan="2" |All sectors - total

|224.8

|275.5

|267.1

Existing foreign-owned companies in Canada

class="wikitable"

!Company

!Foreign owner(s)

!Origin of foreign owner

!Notes

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Foreign ownership of companies of Canada

Overview

= Statistics =

Existing foreign-owned companies in Canada

= Banks =

= Gaming companies =

= Formerly foreign-owned =

Former Canadian companies acquired by foreign owners

Rules and regulations

See also

References

External links