National Security

Concretely, national security encompasses various aspects, including:

• Foreign investments

• Public procurement and contracts

• Privacy and cybersecurity

• Export controls, controlled goods, and economic sanctions

• Defence and investigations into financial crime

• Cannabis regulation

 

For a foreign company operating in Canada, it's essential to understand the landscape of national security to avoid unforeseen consequences. For example:

• A Chinese technology company seeking to acquire a Canadian technology firm may undergo national security reviews and risk rejection if the deal is deemed detrimental to Canada's interests.

• A European company operating in Canada's energy sector must comply with export controls and economic sanctions to avoid legal repercussions.

 

Our law firm, Twin Lisbet, offers comprehensive legal services tailored to your business needs, ensuring compliance with Canada's national security regulations. Our team consists of experienced lawyers who have held senior positions in both the private and public sectors, providing expertise in various areas related to national security.

Protecting Canada's Resources

 

Canada is rich in natural resources, including:

• Energy resources (oil, gas, hydroelectricity)

• Minerals (gold, copper, iron)

• Forest products (construction timber, paper)

• Agricultural products (wheat, canola, dairy products)

 

These resources are crucial to Canada's economy and national security. Foreign companies operating in these sectors must ensure compliance with Canadian regulations and laws to avoid potential national security issues.

Here's an example of Canada rejecting an acquisition for national security reasons: In 2020, the Canadian government blocked the acquisition of Canadian construction company Aecon Group Inc. by Chinese state-owned enterprise China Communications Construction Company (CCCC). The deal, valued at $1.5 billion, was cancelled due to national security concerns.

 

The Canadian government cited concerns that the acquisition could compromise Canadian security and intellectual property, as well as transfer sensitive technology to China. The decision was made under the Investment Canada Act, which allows the government to review foreign investments for national security concerns. The Act gives the government the power to block or impose conditions on investments that could harm Canada's national security. In this case, the government concluded that the acquisition would have given CCCC access to sensitive information and technologies related to Canadian infrastructure projects, potentially compromising national security. This example illustrates how Canada prioritizes national security when evaluating foreign investments, even if it means blocking a significant acquisition.

​

At Twin Lisbet, we assist foreign businesses in navigating Canada's national security landscape, ensuring smooth and successful operations in the country. Contact us to learn more about our legal services and how we can help your business.