Canada’s Flaherty Says Investment Rules May Place Limits

Canadian Finance Minister Jim Flaherty said guidelines being developed by the government may limit certain kinds of foreign investment.

“It’s inevitable that there will be a substantial foreign direct investment in Canada,” Flaherty told reporters today in New York. “The question then is what form does that take, what form does it not take, and that’s what the government is looking at now with respect to the guidelines.”

Flaherty said the government is “in the middle” of discussing the investment rules. “We’re looking at it broadly, and we’re looking at the various issues which we think need to be addressed related to foreign direct investment in Canada.”

Prime Minister Stephen Harper has said the government will release a new “policy framework” on foreign investment around the time it completes its review of Cnooc Ltd. (883)’s $15.1 billion takeover of Nexen Inc. (NXY)

“The prime minister has said the guidelines will be ready in the not-too-distant future, which I realize is relatively vague, but that’s where we are,” Flaherty said.

To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

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