The Harper government has agreed to smooth the way for more takeovers of Canadian companies by European firms in one of several concessions during free-trade talks, sources tell The Canadian Press.
Canada has also agreed to open up parts of its hydro-electric sector to a limited amount of foreign investment, say sources in Canada with intimate knowledge of the talks.
Other sources close to the talks say issues on wine and spirits have been settled, with Canada agreeing to make a technical change on how duties are applied on imports.
The change is designed to be revenue neutral, but it may have the effect of lowering prices on premium wines and spirits.
As well, Ontario and British Columbia have agreed to freeze the number of independent stores that exclusively sell domestic wines, although there was already a moratorium on new licences.
With Prime Minister Stephen Harper in Europe over the next week hoping to hammer out the remaining barriers to the ambitious deal, sources say Canadian negotiators have agreed to a provision to raise the threshold for reviewing foreign acquisitions from Europe to $1.5 billion.
All acquisitions under that value would not be subject to a government assessment about whether they create a net benefit for Canada. Just this Monday, the House of Commons passed the budget implementation bill raising the threshold from the current $334 million to $1 billion over the next four years. The new threshold would only apply to private, not state owned firms.
While the concession will be seen as controversial with some in Canada, especially after issues arose over recent foreign acquisitions in the resources sector, Europe is treating the issue as a major climb-down from its starting position of no restrictions.
In return, Europe has apparently gained ground on investor protection dispute settlement rules, meaning the deal calls for few restrictions on the ability of European firms to sue Canadian governments for policies judged unfair to investors.
As well, the current state of the talks has Canada giving Europeans more market access in protected sectors such as telecommunications, which has restrictions on foreign ownership, as well as uranium mining, postal services and insurance.
Boy oh boy, you used a lot of words to say: he sold us out. 😞
It was copied from an email I was sent and then I checked it out on the internet.
Maybe it's just me, but I am very wary of other countries taking over more and more of our Canadian companies. The problems this could entail in the future are enormous.
Is Canada so weak we have to sell off more and more ......and does this PM economist, who never held a job as an economist, doing this because he needs friends in other countries and rich friends in Canada, while as you put it.......selling the rest of us out?
"doing this because he needs friends in other countries"
That's not it. He is already planning the next election. The "stuff" about the Senate will come and go. It will soon play itself out. The economy is OK but the GDP growth is not that great.
By getting a "free trade agreement" with the European Community, he plans to be able to "sell" his economic program in the months leading to the next election.
Will it work? I frankly do not think so. The last few weeks have demonstrated he no longer has total control of his office and caucus as he once had. Other problems will surface. As stated earlier, I expect Harper - facing certain defeat - to pull a "Mulroney", resign from office a few months before the next election and let his replacement go down
Time will tell.
I would think his plan to 'sell' his economic program won't work because most Canadians don't understand it. What they understand are what comes out of their wallets and that's increasingly been more and more. Meanwhile back at the ranch the politicians are either enjoying themselves or like Harper just reading scripted speeches .........which I think Canadians are tired of.
Will he resign? I'm not too sure. My gut feeling is his ego won't allow him. I've figured a lot of Harper out and most of it came true, but what goes on behind closed doors between him and the wife and what their decisions would be is hard to tell.
I own a company and if I was offered 3 million tomorrow from someone outside Canada......I wouldn't sell it to them. My conscience wouldn't allow me to worry about the staff or the companies' future when it is owned by someone who doesn't even have a foot on Canadian soil. But that's me I suppose. For some people money is everything.
"plain and simple--if I own a company I am going to sell it to WHOEVER I want !"
In the real world, it does not work that way.
Folks who owned Potash of Saskatchewan received an offer to sell the business two and half years ago from foreign investors and Harper blocked the takeover as "not being of benefit to Canada".
http://www.theglobeandmail.com/globe-investor/harper-defends-potash-decision/article1314121/
Most Canadians, from all political parties, including some Conservatives, agreed with that decision. The boys on Bay Street (usually friends of Harper) obviously did not.
Did you agree at that time that Harper was right to prevent Canadian shareholders (owners) from selling their shares (business) to foreign interests?
Think about it. It is not as simple as it seems.
On a similar note, go back 15 years when the Liberal government of the time, under the direction of Paul Martin Minister of Finance, blocked the mergers of large Canadian banks.
http://canadaonline.about.com/library/weekly/aa121498.htm
Once again the boys on Bay Street (including many Conservative supporters) were not happy about it. Yet, history proved that was the right move and eventually - ten years later - helped Canadian banks weather the financial crisis of 2008.
While the owners of the business (banks) may have wanted to sell or merge, the government of Canada had the final decision.
"the ONLY way a company can sell is by a vote of the MAJORITY of share-holders"
It is not as simple as you think.
