This FDI Qualities Review of Canada provides an assessment of how foreign direct investment (FDI) contributes to Canada’s sustainable development. The review uses OECD and non-OECD data sources and draws on the qualitative insights from an OECD business consultation on the corporate sustainability practices of a group of domestic and foreign companies operating in Canada. It provides initial policy considerations to improve the impact of FDI on inclusive and sustainable growth in Canada.
The report comprises five chapters. Chapter 1 provides an overview of the main challenges for sustainable development in Canada, analyses recent FDI trends, and presents a summary of the main findings of the study, which show the role that FDI currently plays in supporting sustainable development. Chapter 2 examines the impact of FDI on trade and GVC integration, productivity and innovation. Chapter 3 analyses the impact of FDI on employment creation, job quality, and skill development. Chapter 4 assesses how FDI influences diversity and inclusion of vulnerable workers (women, indigenous peoples, foreign workers from disadvantaged backgrounds, and people with disabilities) in the labour market. Finally, Chapter 5 provides an evaluation of how FDI contributes to Canada’s net-zero transition.
The review has been prepared by the OECD in close co‑ordination with Invest in Canada. It is part of a series of FDI Qualities Reviews, supporting the implementation of the OECD Council Recommendation on FDI Qualities for Sustainable Development, adopted by OECD Ministers in 2022. The FDI Qualities Reviews, conducted so far in Ireland (2021), Jordan (2022), Portugal (2022), Slovak Republic (2022), Austria (2023), Chile (2023), and Croatia (2023), shed light on how FDI contributes to a country’s sustainable development priorities. They help identify areas where such impact can be improved and provide tailored policy advice.
The FDI Qualities Review of Canada was prepared by a team led by Letizia Montinari and comprising Fares Al-Hussami, Derek Carnegie, Stratos Kamenis, Katharina Laengle, Iris Mantovani, and Mertol Ozaltan of the Investment Division in the OECD Directorate for Financial and Enterprise Affairs, under the overall guidance of Ana Novik, Head of the Investment Division and Martin Wermelinger, Head of Sustainable Investment Unit. Invest in Canada was instrumental in providing guidance and feedback to the OECD team. Statistics Canada provided, for the purpose of this review, unique data on skills shortages faced by foreign and Canadian companies. The report benefited from discussions with and comments from Ben Conigrave and Philip Hemmings from the OECD Economics Department, and Stephen Thomsen from the OECD Investment Division. An earlier version of this report was shared for comments with the OECD Investment Committee.