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Manufacturing, American Investment

Canadian manufacturing, Investment Canada, American involvement, American investment, FIRA

American involvement in Canadian manufacturing began in the late 19th century, notably in the 1880s after the Canadian government imposed higher tariffs. American-owned firms built branch plants to serve the Canadian market and thereby avoid the tariffs involved in exporting their products to Canada. This process accelerated in the 20th century. American investment in Canada reached a peak in 1970, at 47 percent of all investment (when total foreign investment was 61 percent). It declined to 34 percent in 1986 and has increased slightly since then. The level of American ownership is highest in the chemical and transportation products industries. In 1974 concern over foreign ownership prompted the Liberal government in Ottawa to establish the Foreign Investment Review Agency (FIRA), which was designed to scrutinize investment from abroad and ensure that it benefited Canada. FIRA never turned down an application, but did require modifications in many cases. The Conservative government that followed the Liberals was more supportive of foreign investment and signaled its views by changing the name of FIRA in 1985 to Investment Canada.



Article key phrases:

Canadian manufacturing, Investment Canada, American involvement, American investment, FIRA, Conservative government, Canadian market, Liberal government, Canadian government, Ottawa, peak, Liberals, century, percent, modifications, cases, concern, process, application, views

 
 

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