CHAPTER VII. Investment Climate With few exceptions, Canada offers foreign investors full national treatment within the context of a developed open market economy operating with democratic principles and institutions. Canada is, however, one of the few OECD countries that still has a formal investment review process, and foreign investment is prohibited or restricted in several sectors of the economy. Canada's economic development has depended a great deal on foreign investment inflows. Four foreign-owned firms rank among the top ten firms in Canada in terms of revenue, and the Canadian government estimates that foreign investors control about one-quarter of total Canadian non-financial corporate assets. The stock of foreign direct investment in Canada in 1993 was equivalent to 20.5 percent of GDP. Net foreign direct inflows in 1993 amounted to about one percent of GDP. Canada has no restriction on outward foreign investment, and Canadian firms have a significant presence in the United States Since the beginning of 1994, investment relations between the United States and Canada have been governed by the NAFTA negotiated by the United States, Canada and Mexico. The U.S.- Canada Free Trade Agreement (CFTA), which entered into force at the beginning of 1989, has been suspended as long as the two countries remain parties to the NAFTA. The NAFTA builds on the investment relationship created in the CFTA. In the CFTA, the United States and Canada agreed on important foreign investment principles, including right of establishment and national treatment. The CFTA recognized that a hospitable and secure investment climate was indispensable if the two countries were to achieve the full benefits of reducing barriers to trade in goods and services. The CFTA established a mutually beneficial framework of investment principles sensitive to the national interests of both countries, with the objective of assuring that investment flowed freely between the two countries and that investors were treated in a fair and predictable manner. The CFTA provided higher review thresholds for direct U.S. acquisitions in Canada than for other foreign investors, but it did not exempt all U.S. investment from review nor did it override specific foreign investment prohibitions, notably in the cultural area. The NAFTA incorporates the gains made in the CFTA, expands the coverage of the Investment Chapter to several new areas and broadens the definition of investors with rights under the agreement, and creates the right to binding investor-State dispute settlement arbitration under limited circumstances. A. Openness to Foreign Investment 1. General Attitude Canada has long been considered a stable and remunerative environment for foreign investment, and its economic progress has been made possible to a large extent by a sustained inflow of foreign capital. Since 1985, foreign investment policy in Canada has been guided by the Investment Canada Act which replaced the more restrictive Foreign Investment Review Act. The Investment Canada Act liberalized Canadian policy on foreign investment by recognizing that investment is central to economic growth and new employment opportunities and is the key to technological advancement. At the same time, it provided for a review of large acquisitions in Canada by non-Canadians and imposed a requirement that they be of net benefit to Canada. For the vast majority of small acquisitions and the establishment of new businesses, non-Canadian investors need only notify the Canadian government of their investment. While the Investment Canada Act provides the basic legal framework for foreign investment in Canada, foreign investment in specific sectors may be covered by special legislation. For example, foreign investment in the financial sector is governed by laws administered by the Finance Department, and the Telecommunications Act governs foreign investment in radio and TV broadcasting. Canada's federal system of government subjects investment to provincial as well as national jurisdiction. Provincial restrictions on foreign investment differ by province, but are largely confined to the purchase of land and to certain types of provincially-regulated financial services. In addition, of course, provincial government policies in the areas of labor relations and environmental protection, for example, can have an important impact on foreign investors. 2. Investment Canada Act Under the Investment Canada Act, the Ministry accountable for the Act (currently Industry Canada) is responsible for encouraging and facilitating investment and assuring that foreign investment is of net benefit to Canada. To this end, the Ministry manages the foreign investment notification and review process to ensure conformity with the legislation. Investments requiring only notification are all new Canadian businesses (regardless of size), all direct acquisitions of Canadian businesses with assets under C$5 million, and most indirect acquisitions of Canadian businesses with assets under C$50 million. Indirect acquisitions of Canadian businesses whose assets represent more than 50 percent of the assets involved in the total international transaction are subject to the C$5 million threshold rather than the C$50 million threshold which applies to all other indirect acquisitions. Investments requiring review are all direct acquisitions of Canadian businesses with assets of C$5 million or more, all indirect acquisitions of Canadian businesses with assets of C$50 million or more, and indirect acquisitions of Canadian businesses with assets between C$5 million and C$50 million which represent more than 50 percent of the value of the total international transaction. In addition, specific acquisitions or new businesses in designated types of business activities related to Canada's cultural heritage or national identity, which would normally only be notifiable, could be reviewed if the Cabinet determines that such review is in the public interest. In practice, virtually all foreign investment in the cultural sector is reviewed. The Minister responsible for the Investment Canada Act will then determine whether the investment is likely to be of net benefit to Canada, taking into account the information provided, and regarding the following factors of assessment, where relevant: (a) The effect of the investment on the level and nature of economic activity in Canada, including the effect on employment; on resource processing; on the utilization of parts, components and services produced in Canada; and on exports from Canada; (b) The degree and significance of participation by Canadians in the Canadian business and in any industry in Canada of which it forms a part; (c) The effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada; (d) The effect of the investment on competition within any industry or industries in Canada; (e) The compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and, (f) The contribution of the investment to Canada's ability to compete in world markets. Since the passage of the Investment Canada Act in 1985, the Canadian Government has not formally rejected any reviewable foreign investment proposal. On several occasions the government required the foreign investor to re-work the proposal to meet Investment Canada's net benefit test. The mere existence of a review process, as well as sectoral restrictions, presumably discourages some foreign investors. 3. Special Treatment for U.S. Investment U.S. foreign investment in Canada is subject to the Investment Canada Act, but the NAFTA further defines the investment relationship between the two countries and adopts the principle of national treatment. The basic obligation assumed by the two countries in Chapter Eleven of the NAFTA is to ensure that future regulation of Canadian investors in the United States and of U.S. investors in Canada results in treatment no different than that extended to domestic investors within each country -- "national treatment." Both governments are completely free to regulate the ongoing operation of business enterprises in their respective jurisdictions under, for example, anti-trust law, provided they do not discriminate. This basic principle is qualified on the basis of existing practice and is translated into the following specific undertakings: Canada retains the right to review the acquisition of firms in Canada by U.S. investors, but agreed to phase in higher threshold levels for U.S. investors. For 1992 and thereafter (adjusted for inflation) the review threshold for direct acquisitions is C$150 million; the review threshold for indirect acquisitions was phased out entirely beginning in 1992. Canada agreed to extend these review thresholds for the acquisition of service-sector firms to all signatories of the General Agreement on Trade in Services. These undertakings are prospective; for example, they apply to future changes in laws and regulations only. Existing laws, policies and practices are "grandfathered", except where specific changes are required. The practical effect of this was to freeze the various exceptions to national treatment provided in Canadian and U.S. law (such as restrictions on foreign ownership in the communications and transportation industries). Additionally, both governments remain free to tax foreign-owned firms on a different basis than domestic firms, provided this does not result in arbitrary or unjustifiable discrimination, and to exempt the sale of crown (government-owned) corporations from any national treatment obligations. Finally, the two governments retain some flexibility in the application of the national treatment obligations. They need not extend identical treatment, as long as the treatment is "equivalent." The NAFTA also deals more specifically with the financial services sector. Chapter Fourteen on financial services eliminates discriminatory asset and capital restrictions on U.S. bank subsidiaries in Canada. It also exempts U.S. firms and investors from the federal "10/25" rule such that they will be treated the same as Canadians. The rule continues to prevent any single non-U.S. non-resident from acquiring more than ten percent of the shares, and all such non-residents in the aggregate from acquiring more than 25 per cent of the shares of a federally-regulated Canadian-controlled financial institution. Both the ten percent and the 25 percent limitation were eliminated for U.S. investors as regards acquisitions of federally-chartered non-bank financial institutions. The ten percent limitation on any individual shareholder -- whether Canadian or foreign -- will continue to apply to investments in Canadian banks. Bilateral services trade is largely free of restrictions. The NAFTA ensures that restrictions will not be applied in the future; however, existing restrictions were not affected by the NAFTA. The services agreement is primarily a code of principles which establishes national treatment, right of establishment, right of commercial presence, and transparency for a number of service sectors specifically enumerated in Annexes to the NAFTA. The NAFTA also pledges both parties to expand the list of covered service sectors. The NAFTA grants U.S. firms operating from the U.S. national treatment for most Canadian federal procurement opportunities. However, interprovincial trade barriers exist which often exclude U.S. firms established in one Canadian province from bidding on another province's procurement opportunities. Provincial negotiations were underway in 1994 to reduce or eliminate these barriers. Besides the areas described above, the NAFTA includes provisions that enhance the ability of U.S. investors to enforce their rights through international arbitration; prohibit a broader range of performance requirements, including forced technology transfer; and expand coverage of the investment chapter to include portfolio and intangible investments as well as direct investment. 4. Ownership Restrictions by Sector Although most sectors of the Canadian economy are open to foreign investment, there are several sectors where foreign investment is limited or prohibited. In addition, there are several sectors where private investment is not permitted at all. Two sectors subject to special investment rules of particular concern to U.S. investors are cultural industries and financial services. (a) Cultural Industries Canada's fear that its own cultural identity will be overwhelmed by neighboring and powerful U.S. cultural influences has resulted in restrictions on foreign investment in Canadian cultural industries. At Canada's insistence, cultural industries were exempted from the provisions of the CFTA, but the United States also obtained the right to retaliate against measures which would have been inconsistent with the CFTA except for the cultural exemption. Both of these features were retained in the NAFTA. Book Publishing and distribution: Since 1985, foreign investment in the book publishing and distribution sector has been governed by the "Baie Comeau" policy. Prior to 1992, under this policy, direct foreign acquisitions of Canadian-owned firms in this sector were forbidden, new foreign investment was limited to a minority position, and foreign investors who acquired Canadian firms in the sector through an indirect acquisition were required to divest the Canadian operation to Canadian ownership within two years. In January, 1992, the government of Canada modified the Baie Comeau policy. Now, indirectly-acquired Canadian firms in the sector will not necessarily have to be spun-off to Canadian ownership; the foreign owner was given the option of negotiating a transaction that is of "net benefit" to Canada, such as a commitment to publish Canadian authors. In addition, the policy now permits direct foreign acquisition of a Canadian firm in the sector, provided that the firm is in financial distress and no Canadian buyers can be found. Finally, the government announced its intention to establish rules to assure that when indirectly acquired firms are divested as a result of the Baie Comeau policy, Canadians assume de facto control of the enterprise. Newspapers and periodicals: All investments in this sector, regardless of size, are reviewable by Investment Canada. Canadian income tax laws do not permit Canadian advertisers to claim a deduction for advertising placed in publications that do not have 75 percent Canadian ownership and 85 percent Canadian content. In 1993 the Canadian Government ruled that any new foreign magazine title published in Canada would be reviewable as a new investment. Under current policy guidelines, approval would be denied. As of mid-1994 the Canadian Government was considering a recommendation to place a prohibitive tax on advertising in magazines published in Canada with Canadian advertising but little Canadian editorial content ("split-run" editions). Television and Radio Broadcasting: Licenses will not be granted or renewed to firms that do not have at least 80 per cent Canadian control, represented both by shareholding and by representation on the Board of Directors. This requirement applies retroactively. Sound Recording: All investments reviewable. Film and Video: All investments reviewable; new investments may be subject to performance requirements. (b) Financial Sector The banking industry in Canada is governed by the federal Bank Act, which imposes a number of limitations on foreign direct investment in this sector. The Bank Act establishes two categories of banks: Schedule I banks, in which no single investor can own more than ten percent of the shares, thus excluding the possibility of a foreign acquisition; and Schedule II banks, for which the ten percent restriction does not apply. A foreign bank wishing to conduct business in the Canadian banking industry must establish as a subsidiary (Schedule II bank); it cannot enter as a direct branch. The Bank Act also requires that any Schedule II bank in Canada with more than C$750 million (approximately US$600 million) in capital must be "widely-held", therefore, at least 35 percent of its shares must be publicly traded on Canadian stock exchanges. The government could grant an exception to foreign-owned banks which exceed the ceiling due to internal growth. Finally, the Bank Act imposes several restrictions on investments by non-U.S. foreign banks, including an individual capital ceiling and a 12 percent market-share quota on assets. Canada agreed to eliminate the market-share quota as well as the "10/25" rule for federally-chartered financial institutions for all signatories to the General Agreement on Trade in Services. However, several provinces, including Ontario and Quebec, have similar "10/25" rules for provincially-chartered trust and insurance companies which were not waived under the CFTA. Foreign insurance companies, unlike banks, may operate in Canada as branches. (c) Other Sectors Commercial Aviation: Foreigners limited to 25 percent ownership of Canadian air carriers. Energy and Mining: Foreigners cannot bid on leases on federal lands (essentially arctic and offshore); and foreigners cannot be majority owners of uranium mines. Telecommunication: Under provisions of Canada's new Telecommunications Act, foreign ownership of Type I carriers (owners/operators of transmission facilities) is limited to 20 percent. Ownership and control rules are more flexible for holding companies that wish to invest in Canadian carriers, because of the often international nature of their operations and sources of capital. Under these rules, two-thirds of the holding company's equity must be owned and controlled by Canadians. Fishing: Foreigners can only own 49 percent of companies that hold Canadian commercial fishing licenses. Electric Energy Generation and Distribution: In all provinces except Alberta and Nova Scotia, this is a provincial monopoly. Exceptions are being opened in some provinces to allow for private electric energy production, either through co-generation or non-utility power generation. Health Services: Hospitals in Canada are integral parts of a public health system administered by the provinces. Private hospitals would not be eligible to receive payments from provincial health insurance funds, and therefore would not be financially viable in most cases. Real Estate: Prince Edward Island and Saskatchewan limit real estate sales to out-of-province parties. Privatization: As a matter of policy, the federal government has limited foreign participation in its initial privatization exercises to 25 percent. Provincial governments may limit participation in the privatization of provincial government enterprises to residents of the province. 5. Investment Incentives Both federal and provincial governments in Canada offer a wide array of incentives (municipalities are legally prohibited from offering tax incentives). None of the federal incentives, however, is specifically aimed at promoting or discouraging foreign investment in Canada. Rather, the incentives are designed to accomplish broader policy goals, such as research and development, investment in machinery and equipment, and promotion of regional economies. They are available to any qualified investor, Canadian or foreign, who agrees to use the funds for the stated purpose. Provincial incentives tend to be more investor-specific and are conditioned on applying the funds to an investment in the granting province. Provincial incentives may also be restricted to firms established in the province or who agree to establish in the province. Incentives for investment in cultural industries, at both the federal and provincial level, are generally only available to Canadian-controlled firms. Incentives may take the form of grants, loans, loan guarantees, venture capital, or tax credits. Incentive programs in Canada generally are not oriented toward the promotion of exports. 6. Export/Import Policies There is no discrimination against foreign investors in any aspect of import or export trade. Foreigners can engage in all import and export activities permitted to a Canadian national. However, permits are required for the import or export of certain commodities, including armaments and strategic goods, some agricultural products, most textile and clothing items, and oil and gas. B. Conversion and Transfer Policies The Canadian dollar is fully convertible. Canada has no restrictions on the movement of funds into or out of the country. Banks, corporations and individuals are able to deal in foreign funds or arrange payments in any currency they choose. An investor may liquidate his Canadian investment at any time and transfer the proceeds from Canada in whatever currency desired. During the life of the investment, profits, dividends and royalties may be remitted at will. C. Expropriation and Compensation Canadian federal and provincial laws recognize both the right of a government to expropriate private property for a public purpose, and the obligation to pay compensation. The federal government has not nationalized any foreign firm since the nationalization of Axis property during World War II. Both the federal and provincial governments have also assumed control of private firms -- usually financially-distressed ones -- after reaching agreement with the former owners. D. Dispute Settlement Canada is a member of the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. The Canadian government has made a decision in principle to become a member of the International Center for the Settlement of Investment Disputes (ICSID). However, since the legal enforcement mechanism for ICSID would be the provincial court system, the federal government must also get agreement from all the provinces that they will respect ICSID decisions. It is unlikely that this will happen in the foreseeable future. Canada accepts binding arbitration of investment disputes to which it is a party only when it has specifically agreed to do so through a bilateral or multilateral agreement such as a Foreign Investment Protection Agreement. The resolution of investment disputes between United States investors and government entities in and Canada is guided by the provisions of the NAFTA Chapter 11. The NAFTA encourages parties to settle disputes through consultation or negotiation, but the NAFTA also establishes special arbitration procedures for investment disputes separate from the NAFTA's general dispute settlement provisions (Chapter 20). Under the NAFTA, disputes between an investor from a NAFTA country and a NAFTA government involving breaches of NAFTA's investment obligations that result in loss or damage to the investor may be settled, at the investor's option, by binding international arbitration. E. Political Violence Political violence is almost non-existent in Canada. There has been no violence directed at foreign investment in recent memory. There have been some violent incidents related to environmental disputes, but these were directed against Canadian-owned natural resource companies or against the Canadian government. F. Performance Requirements/Incentives For investments subject to review by the Government of Canada, the investor's intentions regarding employment, resource processing, domestic content, exports, and technology development or transfer can be examined by the Canadian Government. A special duty remission scheme exists for the automotive sector that makes certain benefits contingent on trade performance. The NAFTA prohibits the United States, Canada, and Mexico from imposing export or domestic content performance requirements. Government officials at both the federal and provincial levels expect investors who receive investment incentives to use them for the agreed purpose, but no mechanism exists for enforcing any statement made by the investor during the review process. G. Right to Private Ownership and Establishment Except as noted, Canadians and foreigners have the right to establish, own and dispose of business enterprises and engage in all forms of remunerative activity. In those sectors where private enterprise co-exists with public enterprise (for example, petroleum), the firms compete on a generally equal basis. The major exception is that public enterprises do not have to rely solely on self-generated funds or funds raised in the capital markets; they also have access to transfers from government budgets. H. Protection of Property Rights 1. General Private property rights are fully protected by Canada's legal system. Foreigners have full and fair access to Canada's legal system. Property rights are limited only by the rights of governments to establish monopolies and to expropriate for a public purpose. 2. Intellectual Property Patents: Patents in Canada are governed by the Patent Act. The Act allows for patenting of processes as well as products. Canada has a "first to file" system with an absolute novelty requirement. The term of a patent is 20 years from the filing date. Deferred examination is possible, and provisions exist for payment of maintenance for pending applications and issued patents. In February 1993, Canada passed legislation which eliminated compulsory licensing of pharmaceuticals, thereby extending patent protection to the standard 20 years. The legislation provides for a statutory review after four years, but the governing party has resolved to monitor its effect on drug costs, and to discuss patent protection in public consultations on health care reform. The Patent Cooperation Treaty came into force in Canada in January 1990. It provides for foreign patent protection in Canada for treaty signatories. From the perspective of the Canadian inventor, the Treaty standardizes Canadian patent practices with those of Canada's principal trading partners and makes it easier for Canadians to acquire foreign patents through standardized filing and searching of prior art. Copyrights: Canada is a member of the World Intellectual Property Organization (WIPO). Canada acceded to the Berne Convention for the Protection of Literary and Artistic Works at the Rome (1928) revision level and is bound by the Universal Copyright Convention (UCC) 1952 text. Thus, under its international agreements, Canada is required to provide national treatment as prescribed by the relevant UCC and Berne Convention texts. The Canadian Copyright Act of 1924 was amended in 1989 to reflect the state of modern technology and to introduce adequate enforcement measures. The Act granted explicit copyright protection for computer programs, and provided a right of payment for retransmission of broadcast programming as required by the CFTA. In 1993, additional legislation was implemented to protect emerging forms of technology, specifically integrated circuit design and biotechnology. Further legislation passed in 1993 revised the definition of "musical work" and ensured that royalties are paid for all uses of the work. In January 1994, the Copyright Act was amended to reflect the changes required by the NAFTA, such as rental rights for computer programs and sound recordings, protection for databases and other compilations, and increased measures against all categories of pirated works. The government is still examining some remaining unresolved copyright issues, including a home copying regime, neighboring rights, and possible special treatment for schools and libraries. Additional information about Canada's Copyright Act are available from: Canadian Intellectual Property Office Industry Canada 50 Victoria Street Hull, Quebec K1A 0C9 Tel: (819) 997-1936 Fax: (819) 953-7620 I. Regulatory System: Laws and Procedures Canada's regulatory system is similar to that of the United States in terms of its transparency, comprehensiveness and in the array of institutions involved. Proposed laws are subject to parliamentary debate and public hearings. Regulations are issued in draft form for public comment prior to implementation. The allocation of financial and real resources is generally accomplished by market forces rather than regulation. While federal and/or provincial licenses or permits may be needed to engage in economic activities, this kind of regulation is generally for prudential, statistical or tax compliance reasons rather than for resource allocation. Governments enter into the allocation of resources only in those sectors where resources are located in the public domain, such as logging on public land or commercial fishing. Canada has an anti-trust law and an agency, the Bureau of Competition Policy, to enforce it. The Competition Tribunal, a quasi-judicial body, rules on anti-trust cases. J. Capital Markets The Canadian capital market offers foreign investors the same full range of financial services and products that are available to Canadians. The Canadian capital market is closely integrated with the U.S. market. Canada's banking system is dominated by five large domestic banks operating nationwide that accounted for 85 percent of total banking system assets at the end of 1993. Although Canadian banks have had to write down part of their exposure to commercial real estate lending, the banking system remains very sound. Canadian banks have little or no exposure to developing country sovereign debt. Regulation of financial market between federal and provincial authorities regulate all banks as well as activities is split authorities. Federal federally-chartered trust and loan companies and insurance companies. Provincial authorities regulate the stock exchanges (the major ones are in Toronto, Montreal, and Vancouver), securities firms, and provincially-chartered trust and loan companies and insurance companies. Securities firms are also governed by the Investment Dealers Association, a self-regulatory organization. Canadian-controlled firms do not appear to have devised anti-hostile-takeover provisions that discriminate against foreigners. K. Bilateral Investment Agreements Canada has two kinds of international investment agreements, Foreign Investment Protection Agreements (FIPA's) and Foreign Investment Insurance Agreements (FIIA's). A FIPA is a comprehensive bilateral investment promotion and protection agreement containing, inter alia, the broad principles that should guide investment between the two partners. Canada has negotiated only five FIPA's: Poland, Czechoslovakia, Hungary, USSR, and Argentina. (FIPA's have not been negotiated with successor states to Czechoslovakia or USSR.) A FIIA is essentially an agreement that allows the Export Development Corporation (EDC) to pursue any claims arising from a Canadian investment insured by the EDC. Canada has negotiated 43 FIIA's. Canada also has tax agreements with 54 countries, including the United States The terms of the NAFTA guide investment relations between the United States and Canada. Canada has recently revised its model FIPA to bring it into conformity with the NAFTA and the results of the GATT Uruguay Round. L. OPIC and Other Investment Insurance Programs Overseas Private Investment Corporation (OPIC) programs are not available for U.S. investors in Canada. Canada is a signatory to the World Bank's Multilateral Investment Guarantee Agency (MIGA). The Export-Import Bank is not off-cover for Canada. M. Labor Labor, at all skill levels, is generally available in Canada. There are occasional reports of spot shortages of certain categories of labor. Canadian wage and benefit levels for most non-executive job categories are roughly equivalent to levels paid in the United States. Currently, provincial hourly minimum wages in Canada range from a high of C$6.70 in Ontario to a low of C$4.75 in Newfoundland and Prince Edward Island. The minimum wage for employees under federal jurisdiction (banking, shipping, air transport, broadcasting, railways, grain elevators and pipelines) has remained unchanged at C$4 since 1986. As a percentage of the civilian labor force, union membership has remained fairly constant since 1985 when it stood at 29.8 percent. The figure for 1993 is 29.5 percent, significantly higher than the comparable U.S. figure of 15.8 percent, due in large part to higher unionization levels in the Canadian public sector. Labor is strongly critical of some Canadian government policies and has focused most strongly on the CFTA and the NAFTA, alleging that these agreements jeopardize Canadian jobs and threaten the country's social programs. The labor movement in Canada is closely associated with the New Democratic Party (NDP). The NDP currently controls provincial governments in Ontario, British Columbia and Saskatchewan. N. Foreign Trade Zones/Free Ports Detailed information regarding foreign trade zones/free ports can be found in Chapter VI, Section J. O. Capital Outflow Policy As discussed in the "Transfer Policy" section, the Canadian dollar is fully convertible. The Canadian Government provides some incentives for Canadian investment in developing countries through Canadian International Development Agency programs. Canada's official export credit agency, the EDC provides OPIC-like insurance coverage for Canadian foreign investment. P. Major Foreign Investors MAJOR FOREIGN INVESTORS (ranked by 1993 revenues in billions of Canadian dollars) RANK NAME NATIONALITY REVENUE 1 General Motors of Canada American 21.8 2 Ford Motor Company of Canada American 15.9 3 Chrysler Canada American 13.6 4 Imperial Oil (Exxon) American 7.8 5 IBM Canada American 6.7 6 Shell Canada Dutch 4.7 7 Canada Safeway American 4.5 8 Amoco Canada Petroleum Company American 4.1 9 Sears Canada American 3.9 10 Maple Leaf Foods British 2.3 11 Total Petroleum French 3.0 12 Great Atlantic & Pacific Tea American 2.7 13 Mitsui & Company Japanese 2.4 14 Honda Canada Japanese/Amer. 2.3 15 BC Telecom American 2.2 16 Cargill Ltd. American 2.1 17 Consumers Gas British 1.8 18 Canadian Ultramar American 1.7 19 Price Costco Canada American 1.7 20 Medis Health & Pharmaceutical American 1.7 21 Pepsi Cola American 1.6 22 DuPont Canada American 1.6 23 McDonald's Restaurants American 1.5 24 General Electric American 1.5 25 Pratt & Whitney Canada American 1.4 Source: "Financial Post", May 1994