Canada

Inward foreign direct investment (FDI) into Canada reached CAD 96.8 billion for full-year 2025—the highest level since 2007—driven by inflows from the United States, United Kingdom, and emerging Asian and South American partners. Trade and transportation attracted the largest share of investment gains, with manufacturing and company management also ranking among leading recipient sectors, underpinned by elevated merger-and-acquisition activity.

TD Economics · 2026-02-26

Under the Investment Canada Act (ICA), the 2026 net-benefit review threshold for direct acquisitions by private investors from World Trade Organization (WTO) member states is set at CAD 1.452 billion enterprise value, indexed to GDP growth. Separately, modernised national security screening rules now require mandatory pre-closing notification for acquisitions in prescribed technology sectors—including artificial intelligence, quantum computing, and critical minerals—regardless of transaction size, and extend scrutiny to minority investments and joint ventures.

White & Case LLP · 2026-04-01

The federal Major Projects Office (MPO), established in August 2025, has to date referred 21 nation-building initiatives representing over CAD 126 billion in projected investment and supporting more than 60,000 jobs. The government projects that its five-year capital investments and incentives, totalling approximately CAD 280 billion, are expected to enable more than CAD 1 trillion in total investment across the economy.

Government of Canada · 2026-05-08

The CUSMA joint review—mandated under the agreement's terms—is scheduled for July 2026, with the United States expected to press Canada on supply management, digital streaming regulations, and procurement policies, while Canada seeks relief on tariffs affecting lumber, steel, aluminum, and automotive exports. Oxford Economics' baseline forecast assumes most U.S. tariffs on Canada will be removed by Q3 2026 as part of CUSMA renegotiation, though 10% targeted tariffs on steel and aluminium are projected to remain.

Fasken / Oxford Economics · 2026-02-02

Canada has maintained a strategic posture on critical minerals, declining to sign a U.S.-led critical minerals action plan outside of CUSMA talks, with Foreign Affairs Minister Anita Anand indicating Ottawa intends to retain critical minerals as a negotiating lever. Canada's pension funds and firms hold approximately USD 733 billion invested in the United States, providing additional bilateral leverage in ongoing trade negotiations.

CBC News · 2026-03-19

On May 8, 2026, the federal government launched a 30-day public consultation on proposed reforms to cap federal project review and decision-making timelines at one year from receipt of complete proponent information. Companion proposals cover modernisation of National Trade Corridors policy, port governance reform, and adoption of a 'tell-us-once' approach to inter-departmental regulatory reporting, all aimed at improving supply chain efficiency and non-U.S. trade diversification.

Government of Canada · 2026-05-08

Canada's Spring Economic Update 2026 projects real GDP growth of 1.1% for 2026 and 1.9% for 2027, with the Bank of Canada holding its policy rate at 2.25% through year-end before gradual increases beginning in early 2027. The IMF expects Canada to post the second-fastest growth in the G7 over 2026–2027, supported by labour market resilience—the unemployment rate fell to 6.7% as of March 2026—and wage growth that has outpaced inflation for more than three consecutive years.

Government of Canada – Spring Economic Update 2026 · 2026-04-22

Canada's Q4 2025 GDP contracted by 0.6%, making it the only G7 economy to record a contraction in that quarter, driven primarily by a drawdown in non-farm inventories in manufacturing and wholesale trade. However, domestic demand remained resilient, expanding at a 2.4% quarter-on-quarter annualised pace, supported by consumer spending, government outlays, and business investment in machinery and equipment.

Global Affairs Canada – Quarterly Economic and Trade Report: Spring 2026 · 2026-04-08

Elevated oil prices—driven by the U.S.-Israel military operation against Iran and effective closure of the Strait of Hormuz—are projected to push Canadian headline Consumer Price Index (CPI) inflation to a peak of approximately 2.8% year-on-year in Q2 2026, before easing below 2.0% in 2027 as energy prices unwind. TD Economics estimates the oil price shock will trim Canadian GDP growth by roughly 0.1 percentage points in 2026, with the Bank of Canada expected to look through the temporary supply shock and hold rates unchanged.

TD Economics · 2026-03-17

On May 20, 2026, Canada released its 'Powering Canada Strong' national electrification strategy, outlining plans to expand electricity infrastructure and support investment across energy corridors, clean energy, and critical mineral developments. This strategy complements the MPO pipeline and is intended to attract both domestic and foreign capital into grid expansion and electrification projects at scale.

Blake, Cassels & Graydon LLP · 2026-05-20

Canada's Budget 2025 Implementation Act received Royal Assent on March 26, 2026, introducing amendments to anti-money laundering and terrorist financing legislation, including a new Stablecoin Act requiring stablecoin issuers to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as money services businesses and mandating a Bank of Canada public registry of stablecoin issuers. The Canada Revenue Agency (CRA) has also transitioned to a year-round post-assessment review model effective May 2026, replacing the prior concentrated post-filing-season review window.

FINTRAC · 2026-05-22

Competition and foreign investment enforcement is intensifying in 2026, with expanded policy objectives encompassing national security, labour, and commercial conduct scrutiny under the ICA and Competition Act. Concurrently, Canada's proposed Consumer Privacy Protection Act (CPPA) is advancing toward modernising federal privacy law along General Data Protection Regulation (GDPR)-comparable lines, while the Artificial Intelligence and Data Act (AIDA) moves toward full force, creating new AI transparency and governance obligations for businesses operating in Canada.

McCarthy Tétrault LLP / Mondaq · 2026-04-16