Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Foreign control in the Canadian economy, 2016Thursday, August 02, 2018 > 12:09:42
Released on Wednesday August 1, 2018
Both Canadian (+6.1%) and foreign-controlled (+1.3%) asset values increased in 2016. The foreign-controlled asset share edged down, from 16.9% in 2015 to 16.2% in 2016. This was the ninth consecutive year where the share of assets under foreign control decreased.
Foreign-controlled revenue growth (+1.8%) and Canadian-controlled revenue growth (+1.5%) both increased in 2016. The year-over-year share of revenues under foreign control in 2016 was unchanged at 27.8%. Canadian-controlled operating profits increased by 5.2%, and those under foreign control were up 8.2%. The share of profits under foreign control in 2016 increased to 17.3%.
Enterprises from the United States, the United Kingdom, the Netherlands, France, Germany and Japan accounted for 79.1% of the foreign-controlled assets in Canada in 2016. US-controlled enterprises maintained the largest overall share, with 52.0% of total foreign-controlled assets, 55.4% of revenues, and 60.9% of profits.
New findings on who controls Canadian corporations and how this has changed over the last 10 years
This release includes insights into the extent of foreign control in the Canadian corporate economy from 2007 to 2016. It illustrates changes in foreign control by macro-region—namely, the Americas, Europe, Africa, Asia, Oceania and Antarctica and Adjacent Islands—and provides new country information on countries such as Mexico, Switzerland and China, for both the financial and non-financial industry groupings.
From 2007 to 2016, foreign-control in the Canadian economy expanded, as measured by the nominal increase in foreign-controlled assets which reached almost $2 trillion in 2016. However, the share of foreign control in Canadian corporations has diminished over the last 10 years, indicating that growth in foreign-controlled assets is outmatched by growth in Canadian-controlled assets.
The main finding in this report pertains to changing trends in foreign control; while the share of foreign-owned assets in the Americas and Europe macro-regions fell from 2007 to 2016, Asia saw its relative share increase. This report also highlights the prevalence of foreign control in Canada's non-financial industries.