CANADA
Since June 1993, last amended in June 2024
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Nationality/residency requirement for directors or managers
Telecommunications Act (Loi sur les télécommunications)
Canada requires that Canadian citizens comprise at least 80% of the membership of boards of directors of facilities-based telecommunication service suppliers.
Coverage Telecommunications sector
CANADA
Since June 1985, last amended in September 2024
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Investment Canada Act (Loi sur l'investissement au Canada)
Foreign investment in Canada is primarily governed by the Investment Canada Act (ICA), which provides review procedures based on economic benefit, cultural impact, and national security. Under Part IV.1, any investment by a non-Canadian—whether to establish a new business, acquire control of an existing one, or acquire or establish an entity operating in Canada—may be reviewed if it is considered potentially injurious to national security. This applies even to small investments, as there is no monetary threshold for national security reviews. Control is typically presumed at over 50% of voting interest, but may also apply at over one-third under certain conditions.
In addition, investments that exceed established thresholds must pass a “net benefit” review, with criteria varying based on the investor’s origin (e.g. from countries with trade agreements like the U.S., EU, or Israel) and whether the investor is a state-owned or private entity. Furthermore, since March 2022, acquisitions involving Russian investors face exceptional scrutiny: they are presumed not to be of net benefit to Canada, and any direct or indirect ties to the Russian state may trigger a national security review under the ICA.
In addition, investments that exceed established thresholds must pass a “net benefit” review, with criteria varying based on the investor’s origin (e.g. from countries with trade agreements like the U.S., EU, or Israel) and whether the investor is a state-owned or private entity. Furthermore, since March 2022, acquisitions involving Russian investors face exceptional scrutiny: they are presumed not to be of net benefit to Canada, and any direct or indirect ties to the Russian state may trigger a national security review under the ICA.
Coverage Horizontal
Sources
- https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S455R1.pdf&Open=True
- https://www.stikeman.com/-/media/files/kh-general/iclg-foreign-direct-investment-regimes-2023---canada.ashx
- https://web.archive.org/web/20230928185444/https://laws-lois.justice.gc.ca/eng/acts/i-21.8/
- https://web.archive.org/web/20230202202341/https://ised-isde.canada.ca/site/investment-canada-act/en/policy-statement-foreign-investment-review-and-ukraine-crisis
- Show more...
CANADA
Since June 1985, last amended in September 2024
Since September 2009, last amended in August 2022
Since December 2016, last amended in March 2025
Since September 2009, last amended in August 2022
Since December 2016, last amended in March 2025
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Investment Canada Act (Loi sur l'investissement au Canada)
National Security Review of Investments Regulations
Guidelines on the National Security Review of Investments
National Security Review of Investments Regulations
Guidelines on the National Security Review of Investments
Pursuant to Art. 25.2 of the Investment Canada Act (ICA), where the Minister has reasonable grounds to believe that a foreign investment may be injurious to national security, a notice may be issued to the foreign investor indicating that the investment is subject to review. The Minister of Innovation, Science and Industry, in consultation with the Minister of Public Safety, is responsible for conducting the review and coordinating with relevant investigative bodies.
If investors are notified that their proposed investment is considered potentially injurious to national security, the Minister must decide within 45 days whether to refer the investment for an extended national security review. In accordance with the National Security Review of Investments Regulations, the review period for notified transactions may last up to 45 days and can be extended once for an additional 45 days, if necessary.
Following the completion of the process, and in accordance with Art. 25.4 of the ICA, the investment may be (i) prohibited, (ii) permitted subject to conditions imposed by the Governor in Council, or (iii) if already implemented, made subject to a divestiture order.
The Guideline on the National Security Review outlines factors considered in the review, including sensitive technologies, critical minerals, critical infrastructure, sensitive personal data, and investments involving state-owned or state-influenced entities. However, the authorities reportedly note that the listed factors are illustrative and not exhaustive.
If investors are notified that their proposed investment is considered potentially injurious to national security, the Minister must decide within 45 days whether to refer the investment for an extended national security review. In accordance with the National Security Review of Investments Regulations, the review period for notified transactions may last up to 45 days and can be extended once for an additional 45 days, if necessary.
Following the completion of the process, and in accordance with Art. 25.4 of the ICA, the investment may be (i) prohibited, (ii) permitted subject to conditions imposed by the Governor in Council, or (iii) if already implemented, made subject to a divestiture order.
The Guideline on the National Security Review outlines factors considered in the review, including sensitive technologies, critical minerals, critical infrastructure, sensitive personal data, and investments involving state-owned or state-influenced entities. However, the authorities reportedly note that the listed factors are illustrative and not exhaustive.
Coverage Sensitive technologies, critical minerals, and critical infrastructure, among others
Sources
- https://laws-lois.justice.gc.ca/eng/acts/I-21.8/page-4.html#h-278745
- https://laws-lois.justice.gc.ca/eng/regulations/sor-2009-271/page-1.html
- https://ised-isde.canada.ca/site/investment-canada-act/en/investment-canada-act/guidelines/guidelines-national-security-review-investments
- https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S455R1.pdf&Open=True
- Show more...
CANADA
Since January 1990
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
Canada is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
CANADA
Since December 1985, as amended in November 2024
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Copyright Act (Loi sur le droit d'auteur)
Canada has a clear regime of copyright exceptions that follows fair dealing, which enables the lawful use of copyrighted work by others without obtaining permission. Art. 29 of the Copyright Act, as amended by the Copyright Modernization Act, establishes exceptions to copyright for news reporting, criticism, or comment. An intermediary is exempt from copyright infringement if the work is used for research, private study, education, parody, or satire.
Coverage Horizontal
CANADA
Reported in 2022, last reported in 2024
Pillar Intellectual Property Rights (IPRs) |
Indicator Enforcement of copyright online
Lack of adequate enforcement of copyright online
There is ongoing concern regarding the limited effectiveness of online copyright enforcement in Canada, particularly in light of persistent and diverse forms of infringement. These include stream-ripping services that impact legitimate music streaming platforms, unauthorised subscription-based IPTV and video-on-demand (VOD) services, as well as streaming sites offering illicit access to films and television content. Infringing devices and applications—available both online and through physical retailers—continue to undermine demand for authorised digital content, including for VOD services and video games. The sale and distribution of tools intended to circumvent access controls on gaming consoles further exacerbate the issue.
In addition, certain Canadian-based service providers have been linked to upstream piracy operations, including the unauthorised redistribution of telecommunication signals to secondary piracy platforms. Although some progress has been made in addressing Canada’s prior reputation as a permissive environment for online infringement, enforcement remains limited. Insufficient resource allocation and limited strategic prioritisation by government authorities continue to pose challenges to effective copyright enforcement. Furthermore, market access barriers remain a concern for foreign content producers and distributors operating in the Canadian audiovisual sector.
In addition, certain Canadian-based service providers have been linked to upstream piracy operations, including the unauthorised redistribution of telecommunication signals to secondary piracy platforms. Although some progress has been made in addressing Canada’s prior reputation as a permissive environment for online infringement, enforcement remains limited. Insufficient resource allocation and limited strategic prioritisation by government authorities continue to pose challenges to effective copyright enforcement. Furthermore, market access barriers remain a concern for foreign content producers and distributors operating in the Canadian audiovisual sector.
Coverage Horizontal
Sources
- https://web.archive.org/web/20250410122725/http://iipa.org/files/uploads/2024/01/Final-PDF-for-Website-1.pdf
- https://ustr.gov/sites/default/files/files/Press/Reports/2025NTE.pdf
- https://web.archive.org/web/20241128165441/https://www.iipa.org/files/uploads/2022/02/2022_Canada-1.pdf
- https://ustr.gov/sites/default/files/2024%20Special%20301%20Report.pdf
- Show more...
CANADA
Since August 2014
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
Canada has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
CANADA
Since August 2014
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
WIPO Performances and Phonograms Treaty
Canada has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
CANADA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.42%
Coverage rate of zero-tariffs on ICT goods (%)
92.16%
Coverage: ICT goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
CANADA
Since March 1997
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
Canada is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
- Show more...
CANADA
Since March 2014, extended in May 2018 and December 2023, until December 2028
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In March 2014, the Canada Border Services Agency (CBSA), pursuant to subsection 38.1 of the Special Import Measures Act (SIMA), imposed a definitive anti-dumping duty on liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or unassembled, complete or incomplete (HS Code: 850490), originating in or exported from the Republic of Korea. While these products are not directly used to manufacture ICT goods, they are relevant for digital trade as they are used in data centres and telecommunications facilities where servers and digital equipment are housed, playing an important role in ensuring a stable and secure power supply for digital equipment. This measure was reviewed and extended in May 2018. The anti-dumping duty rate on imports from South Korea is 101% of the export price. In February 2023, the Canadian authorities announced the initiation of a sunset review of the definitive duty imposed on imports of the subject goods from South Korea. Additionally, in July 2023, the Canada Border Services Agency concluded that the termination of the Canadian International Trade Tribunal's order from May 2018, during the expiry review RR-2017-002, would likely lead to the continuation or resumption of dumping of specific liquid dielectric transformers from the Republic of Korea. However, the final decision is still pending.
Coverage Product: liquid dielectric transformers (HS Codes: 850423 and 850490)
Country: South Korea
Country: South Korea
Sources
- https://web.archive.org/web/20211129031420/https://www.globaltradealert.org/intervention/16340/anti-dumping/canada-antidumping-duties-on-transformers-from-korea
- https://globaltradealert.org/intervention/16340
- https://web.archive.org/web/20240305081007/https://www.pcb.ca/post/canadas-trade-protectionism-tools-anti-dumping-and-countervailing-duties-8169
- https://web.archive.org/web/20230509205742/https://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev/tr-eng.html
- https://web.archive.org/web/20240229231346/https://www.cbsa-asfc.gc.ca/sima-lmsi/er-rre/tr2023/tr2023-de-eng.html
- Show more...
CANADA
Since December 2021, until December 2026
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In December 2021, the Canada Border Services Agency (CBSA), pursuant to subsection 38(1) of the Special Import Measures Act (SIMA), imposed a definitive anti-dumping duty on liquid dielectric transformers having a top power handling capacity equal to or greater than 3,000-kilovolt amperes (kVA) (3 megavolt amperes (MVA)), and less than 60,000-kilovolt amperes (kVA) (60 megavolt amperes (MVA)), and having a nominal high voltage rating of greater than 34.5 kilovolts (kV), whether assembled or unassembled, complete or incomplete (HS Code: 850490), originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), and the Republic of Korea. While these products are not directly used to manufacture ICT goods, they are relevant for digital trade as they are used in data centres and telecommunications facilities where servers and digital equipment are housed, playing an important role in ensuring a stable and secure power supply for digital equipment. The anti-dumping duty rate on imports from South Korea is 73.1% and the anti-dumping duty rate on imports from Taiwan is 21.3% of the export price.
Coverage Product: liquid dielectric transformers (HS Codes: 850423, 850490, and 850422)
Countries: South Korea, Taiwan
Countries: South Korea, Taiwan
Sources
CANADA
Since October 2013, extended in August 2019 and April 2024, until April 2029
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Countervailing measure
Antidumping measure
Antidumping measure
In April 2013, the Canada Border Services Agency (CBSA) initiated an investigation into China's dumping and countervailing measures for silicon metal. The investigation focused on silicon metal containing at least 96.% but less than 99.99% silicon by weight and silicon metal containing between 89% and 96% silicon by weight with an aluminium content greater than 0.20% by weight across all forms and sizes (HS Code: 28046990). This product is essential in the production of semiconductors, which are crucial components in various ICT devices due to silicon's ideal properties for creating integrated circuits used in computers, smartphones, and other electronics.
In October 2013, under subsection 41.1 of the Special Import Measures Act, the CBSA made final determinations of dumping and subsidising concerning the subject goods from China. For imports of subject goods from China without specific normal values issued to the exporter, the anti-dumping duty is 235% of the export price. For imports from China without specific subsidy amounts issued to the exporter, the countervailing duty is 1,945 CNY (approx. 267 USD) per metric tonne. Additionally, in March 2019, the CBSA concluded that the expiration of the finding by the Canadian International Trade Tribunal in November 2013 (Inquiry No. NQ-2013-003) would likely result in the continuation or resumption of dumping and subsidising of certain silicon metals from China. However, the final decision is still pending.
In October 2013, under subsection 41.1 of the Special Import Measures Act, the CBSA made final determinations of dumping and subsidising concerning the subject goods from China. For imports of subject goods from China without specific normal values issued to the exporter, the anti-dumping duty is 235% of the export price. For imports from China without specific subsidy amounts issued to the exporter, the countervailing duty is 1,945 CNY (approx. 267 USD) per metric tonne. Additionally, in March 2019, the CBSA concluded that the expiration of the finding by the Canadian International Trade Tribunal in November 2013 (Inquiry No. NQ-2013-003) would likely result in the continuation or resumption of dumping and subsidising of certain silicon metals from China. However, the final decision is still pending.
Coverage Product: silicon metal (HS Code: 28046990)
Country: China
Country: China
Sources
- https://web.archive.org/web/20230203195218/https://www.cbsa-asfc.gc.ca/sima-lmsi/er-rre/sm2018/sm2018-de-eng.html
- https://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev/sm-eng.html
- https://web.archive.org/web/20221007013622/https://www.cbsa-asfc.gc.ca/sima-lmsi/er-rre/sm2018/sm2018-de-eng.pdf
- https://globaltradealert.org/intervention/16974
- Show more...
CANADA
Since November 2020
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Supply Manual
According to Section 3.130 of Chapter 3 (Procurement Strategy) of Canada’s Supply Manual, the federal government may restrict access to certain public procurement contracts to Canadian suppliers only, in accordance with the Canadian Content Policy (CCP). This restriction applies to competitive procurements conducted by Public Services and Procurement Canada (PSPC) and the Department of National Defence, where the estimated contract value is CAD 25,000 (approx. USD 18,000) or more. The limitation takes effect only when there are at least two valid bids from unaffiliated suppliers holding Canadian content certification, as defined in the Supply Manual. In such cases, only those certified bids are eligible for contract award. If this condition is not met, all bids remain eligible.
The CCP does not apply to the following types of procurements:
(i) those covered by international trade agreements, such as the GPA 2012;
(ii) certain procurements related to aid for developing countries;
(iii) procurements carried out by PSPC offices located outside Canada; and
(iv) specific procurements related to industrial and regional benefits, shipbuilding, and ship repair, refit, or mid-life modernisation.
The CCP does not apply to the following types of procurements:
(i) those covered by international trade agreements, such as the GPA 2012;
(ii) certain procurements related to aid for developing countries;
(iii) procurements carried out by PSPC offices located outside Canada; and
(iv) specific procurements related to industrial and regional benefits, shipbuilding, and ship repair, refit, or mid-life modernisation.
Coverage Horizontal
