Foreign Investment Control in the Canadian Mineral Sector: Lessons from the Australian Experience

Peter Strathy is Vice-President Planning, Doctors’ Hospital, Toronto.

Canada’s Foreign Investment Review Agency has been a focus of both controversy and criticism since its inception — both from economic nationalists and from foreign business interests who wish to invest in Canada. At the same time, Australia, with very similar objectives and economic realities, has developed a regulatory apparatus that has met with acceptance and success. The purpose of this study is to compare, contrast, and evaluate Canadian and Australian policies and practices with respect to foreign direct investment in the non-petroleum mineral sector of the resource economy.

David Anderson is well qualified to author this study. A substantial background in economics is combined with work experience in government departments both in Canada and abroad and a year of research and teaching at the Australian National University.

The text is distinguished by its logical and comprehensive approach, moving from an outline of basic economic theories and the history of the development of foreign direct investment control mechanisms to detailed analysis of the impacts of contrasting Canadian and Australian control mechanisms. The style is clear and precise and reflects a thorough knowledge of the subject. His recommendation that Canadian makers of economic policy adopt the key features of the Australian model is well supported.

This text will be an important addition to economic, business, and natural resource collections and will be of interest to those concerned with the development of appropriate and effective economic policy.