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Canada exempt from new regulations imposed on foreign investment in US businesses – BetaKit

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Canadian investors will be exempt from new United States investment regulations that require government oversight of foreign investments in US businesses focused on “critical technologies,” infrastructure, and sensitive personal data.

Canada, Australia, and the United Kingdom are the only three foreign states that are “excepted.”

On Monday, the US Department of the Treasury’s Committee on Foreign Investment in the United States (CFIUS) released the final two regulations needed to implement changes brought about by the Foreign Investment Risk Review Modernization Act (FIRRMA), which was passed in August 2018.

FIRMA was passed in order to close gaps between the types of transactions that CFIUS was able to review, and those it was not able to review, aiming to address national security concerns more effectively. Under the new regulations, certain investment into US businesses from foreign investors will now be reviewed and need clearance from the CFIUS panel.

In the statement on Monday, CFIUS revealed that Canada, Australia, and the United Kingdom are the only three foreign states that are “excepted” from the new regulations that are set to come into effect on February 13.

The announcement follows an outcry from the Canadian investment community, which saw Canadian organizations pen an open letter to the US Department of the Treasury in July. The Canadian Venture Capital and Private Equity Association (CVCA), BIOTECanada, the Canadian Chamber of Commerce, and Medtech Canada called for Canada to be exempt from the reviews, noting that as a close ally to the US, Canada “does not present national security challenges.”

RELATED: Canadian VCs caught flat-footed by “insane” changes in US investment regulation

Kim Furlong, CEO of the CVCA, told BetaKit in July that FIRRMA put the ability of Canadian VCs to participate in US deals because of the potential for any review process to cause delays. Several Canadian VCs have called the regulations a protectionist policy by the Trump administration.

The open letter recommended an exemption process using the Country Specification provision in FIRRMA. CFIUS appears to have taken public comments into account and has developed a list of excepted foreign states. CFIUS stated that it chose Canada, Australia, and the United Kingdom “due to certain aspects of their robust intelligence-sharing and defence industrial base integration mechanisms with the United States.”

“Because this is a new concept with potentially significant implications for US national security, CFIUS is initially identifying a limited number of foreign states,” the committee stated.

While the committee noted that more countries may be added to the list in the future, there are requirements that must be met in order to remain exempt. There is also a time limit on that exemption, of February 13, 2022. CFIUS will be responsible for making determinations on a foreign state’s eligibility by assessing its national security and bilateral cooperation with the US.

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New NDIT programs open doors for investment, economic recovery in the north – CKPGToday.ca

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By Matt Fetinko

Sep 17, 2020 4:35 PM

PRINCE GEORGE — A new slew of programs have been announced to help communities in our region. Northern Development Initiative Trust has launched Trust 2020, what the organization calls a modernized approach to community development.

The new grants are Community Places, Cultural Infrastructure, Economic Infrastructure, Main Street Revitalization Planning, Main Street Revitalization Capital, and Recreation Infrastructure.

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Alberta outlines government-wide strategy for attracting new investment to province – Kincardine News

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The program is not just aimed at Alberta’s traditional sectors such as agriculture and energy, but also technology, aviation and other sectors

‘Investment and Growth Strategy’ is a $75-million program aimed at bringing investment and creating jobs.

RANDY VANDERVEEN

EDMONTON — Alberta is promising a government-wide strategy to attract investment to the province, and sector-specific investments to help the economy recover as Canada emerges from the COVID-19 pandemic.

“We have to be able to keep up with a very fast economy that is ever-changing,” said Doug Schweitzer, the minister of jobs, economy and innovation, in an interview with the National Post on Thursday. “We have to make sure that we’re there to complement and keep up with the speed of the private sector.”

On Thursday, Schweitzer announced the “Investment and Growth Strategy,” a $75-million program aimed at bringing new investment, creating a diversified economy and stimulating jobs. The program is not just aimed at Alberta’s traditional sectors such as agriculture and energy, but also technology, aviation, financial services and other fast-growing sectors.

“This is the beginning of a whole bunch of other announcements,” said Schweitzer.

Alberta, even before the COVID-19 pandemic, was floundering under the pressures of decreasing oil prices and challenges transporting the province’s main export because of the lack of pipeline capacity. Billions of dollars in investment have left the province in recent years, and Jason Kenney’s United Conservatives were elected on promises to turn the economy around.

Since the pandemic started, things have gotten worse.

Alberta sits at 12 per cent unemployment, and there have been staggering drops in economic activity that are putting pressure on government budgets. Last month’s fiscal update showed an $11.5 billion decrease in revenue flowing into government coffers, attributable mainly to the effects of the pandemic.

The investment strategy aims to sell Alberta abroad, pitching it as an attractive jurisdiction for companies, with low taxes and spending on infrastructure.

“We are showing the world that Alberta’s entrepreneurial spirit will endure with determination and confidence,” says a document outlining the strategy.

Rachel Notley, the leader of the Alberta New Democrats, asked about the investment plan at an unrelated press conference, said the government should restore diversification programs brought in under the NDP.

“The plan they talk about is really, it’s a plan to make a plan, to someday have a plan to incent diversification,” she said. “We do not need to be wasting time with these non-announcements.”

The strategy encompasses many of the things the government has already done during its time in its time in power, including dropping the corporate tax to eight per cent on July 1 — a year and a half ahead of schedule — and creating a new investment corporation to seek out money abroad.


A pumpjack near Acme, northeast of Calgary.

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It also highlights Alberta’s workforce, one of the youngest in the country, with a median age of 36.9 years, and with 71 per cent of those over the age of 25 having some form of post-secondary education.

“Coming into this pandemic, it’s forced us in Alberta to rethink how we move forward,” said Schweitzer.

In July, the United Conservative government outlined a new Crown corporation to attract investment, citing aggressive competition for new investment as justification for the organization. The $6 million annually for Invest Alberta is part of the $75 million for the innovation plan.

“We did launch that earlier on as a concept,” Schweitzer said. “Now it’s being refined and turned into action on our end.”

The province has promised several measures, such as aligning the investment strategies of Alberta’s international offices, more proactively going after potential investors, and offering “concierge” service for those who decide to spend in Alberta.

Schweitzer said there will be sector-specific announcements in the coming weeks covering multiple sectors of the economy.

This includes reform of intellectual property laws, a key portion of Thursday’s announcement, so that ideas and research can be turned into businesses and jobs. Reform will include consultation with the technology sector.

“We’re not going to have all the answers today … but we’re going to set and put a marker in the ground that we’re going to do this faster than all the other jurisdictions in Canada right now that are looking at the exact same issue,” said Schweitzer. “Game on, we’re making sure Alberta’s here to play.”

Trevor Tombe, a University of Calgary economist, said “the devil is always in the details when a government says it is pursuing ‘diversification’ strategies.”

• Email: tdawson@postmedia.com | Twitter:

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The sale of MEC to a foreign investment firm feels like a betrayal – The Globe and Mail

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A MEC store is seen in Vancouver, B.C. on Sept. 15, 2020.

JONATHAN HAYWARD/The Canadian Press

Charlotte Gill is the author of Eating Dirt, a book about trees and tree-planting.

When I walked into Mountain Equipment Co-op for the first time, I’d just been hired as a tree-planter. I was still a teenager and owned little in the way of camping gear. The store was like a small island nation of outdoor enthusiasm. Crossing the threshold was, and still is, like entering a gearhead’s paradise in which every kayak paddle, stove part or topo map known to humanity was within reach. Its sales model was encyclopedic. They sold flashy new lines but also vintage fan favourites, plus all the parts required to repair those items. Each aisle represented an epic adventure waiting to unfold.

Ever since then, I’ve been a heavy MEC user and have amassed a basement full of outdoor equipment, much of it acquired there, some of it still going strong after 30 years of abuse. I’m one of the many customers who still has a square of laminated cardboard, a first membership at “The Co-op,” as it’s still often called, no further modifiers necessary. That membership kept me company through many years of planting trees and through all my travels around the world. The Vancouver store has provisioned me with trail running shoes, ski gloves, sleeping bags, hydration bladders, energy gels, bike pedals, sporks, carry-on bags and multiday backpacks. It’s kept me covered through tears and sweat and shivers, through half a dozen sporting pursuits I never thought I’d even try let alone fall in love with. To me, and to legions of devoted fans, the sale of MEC to an American investment company isn’t just another sign of the retail apocalypse. It’s something like a betrayal.

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MEC was originally the brainchild of six Vancouver mountaineers who started in the 1970s making small, cross-border runs to outdoor equipment retailer REI, whose co-operative structure MEC shares. Gear was bought and sold out of the back of a powder-blue VW van, a replica of which is housed inside the new flagship megastore in Vancouver’s Olympic Village. The first catalogue was a one-page list taped to the door of the Student Union Building at the University of British Columbia, and through its early iterations, the store was run by volunteers.

By the time I discovered MEC 20 years later, it had built a solid trade catering to dirtbag climbers but also to birdwatchers and first-time hikers as well as professional bike couriers and tree-planters like me, all of whom shared an urgent need for comfortable, tough, relatively well-priced equipment. Sales staff knew every product’s precise location, constituent materials and field performance because they’d used it all themselves, often thrashing it to tatters, just as their customers did with repeated use.

The resulting community was a multigenerational, interdisciplinary and remarkably tolerant mixture of experts and beginners, old-school hippies, mountaineers, families and urban weekend warriors. The co-op understood its own history and mandate because its shareholders were also its customers. MEC cared about the environment, and conducted its business accordingly, because its members cared.

Over the years, MEC has donated $44-million to community and conservation groups. Through its endowment fund it has supported the acquisition and preservation of many parks and protected areas. MEC is a founding partner or member of organizations such as Leave No Trace Canada and 1% for the Planet. The co-op has hosted countless races, rides, clinics, meet-ups, gear swaps and outdoor learning programs. Even its warrantied product returns are given to charity.

But MEC seemed to drift from this grassroots ethic over time, a development not lost on its loyal clientele. The co-op faced new competition from online retailers and knock-off brands, some of whom opened their doors just a short jog away. A long reach into streetwear and athleisure markets accompanied several bricks-and-mortar expansions. Enter a new chief executive with big-box credentials.

All of this felt like bloat if not a straying from core values, which also faced scrutiny for their seemingly myopic focus on a white, cis-gendered, thin and able-bodied membership, an oversight that management only began to address very recently. A final irony, the pandemic that brought record numbers of Canadians into the great outdoors this summer was also the force that hastened the demise of the co-op that had equipped them in the first place.

When the sale was announced on Monday, the outcry was swift and passionate. MEC’s five million-plus members were never consulted about the takeover or granted a chance to vote or otherwise rescue their beloved co-operative from $74-million in liabilities. No one agreed to donate their $5 membership shares, nor to give away their consumer data to a foreign-owned private equity firm. At the time of this writing, a petition to block the privatization had reached more than 73,600 signatures.

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Short of a miracle or a successful class action, Kingswood Capital Management will soon own the MEC brand, with “Co-op” removed from its name. This may not be the last stand for the iconic green logo, but it still feels like the beginning of the end for a community institution, a heartbreaking close for the people’s outdoor store.

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