In quite staggering fashion, and on the basis of a private members bill no less, the Canadian House of Commons is considering a bill to withhold federal investment dollars (in the form of loans and loan guarantees from the Canadian Business Development Bank) from companies found in violation of Canadian “social responsibility standards” while operating in foreign countries. The result is that Canadian headquartered companies operating aboard, would be held to a different standard, than those other companies whom, in all other circumstances operate in the same manner, but happen to be headquartered outside of Canada. Ignoring the flagrant extra-territoriality of this bill, one has to wonder what the impact will be on those Canadian mining companies caught by this proposed legislation. I suspect, that they will vote with their feet, and relocate there head offices outside of Canada, resulting in less economic activity in Canada and zero effect on encouraging other states to meet Canada’s standards of “social responsibility”.
Reuters Canada – Proposed Canadian law would police miners abroad