Canada cracks down as foreign-owned firms cut back
Aug 01, 2009 | 05:05 AM
TORONTO Canada has long been perceived as the friendly country to the north with a backbone of rubber. But with its steel and resource industries now mostly in the hands of foreigners who have been slashing jobs and production at a speed once thought unthinkable, the nation is forcibly raising a hand of objection.
In May, Canadian Industry Minister Tony Clement bluntly told U.S. Steel Corp. to keep the commitments it made when it purchased Stelco Inc. in 2007 or face the possibility of government intervention. "What I'm signaling to you is I take these agreements seriously," Clement told reporters when announcing the action. "When you have signed a deal with the Canadian government to invest in Canada we expect you to honor the deal .?.?. and I will act to defend the interests of Canada."
The demands were sent in a letter to U.S. Steel, and a response was requested within 10 days. They got it in the form of an 80-page, undoubtedly heavily lawyered, document, reportedly stating that the company shouldn't be held responsible for factors beyond its control—namely, the plunge in steel demand resulting from the global recession. ....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.