`Absolute clarity` not on for some foreign investment rules, suggests Harper

TORONTO – Prime Minister Stephen Harper says the federal government would be “foolish to provide absolute clarity” when it comes to guidelines that govern proposed large investments by foreign state-owned companies.

Harper says when an investor is a foreign government, Canada needs to be able to “exercise its discretion” and have direct conversations with those state-owned investors.

Some critics have said Canada’s needs clearer rules for foreign investors.

Harper was speaking at a moderated question and answer session in Toronto that was hosted by Western University’s Ivey School of Business.

Harper also said the new Canada-EU free trade agreement has “greatly diminished” the country’s chances of getting marginal.

Harper says Canada was somewhat isolated when his government came to power, with free trade deals with just five countries.

The prime minister says the recently announced CETA deal _ which he calls “big in terms of marketplace and broad in terms of scope” _ helps ensure Canada is a strong player in global supply chains.

But he says the kind of deal Canada has inked with the EU would not be possible with countries like India and China because such a comprehensive agreement is “just not their kind of framework.”