Canada expects to introduce a national security test for foreign takeovers of Canadian companies within months, Finance Minister Jim Flaherty said.
Flaherty also reiterated that the Conservative government wants to cut personal and corporate income taxes in the near future, but declined to give details.
Ottawa has been considering tightening foreign investment rules to allow it to block investments by state-owned or state-controlled firms on national security grounds.
"What has been looked at now is having a national security test added, which most countries have," Flaherty told reporters after a speech.
"And I anticipate that will happen within a matter of months - that we'll add that test to the test that we have for foreign investment in Canada."
Ottawa now reviews foreign investments only to ensure they provide a "net benefit" to Canadians, a broad guideline that has so far meant most deals are approved.
Prime Minister Stephen Harper has said the new rules would not apply to deals already in progress, specifically a proposed C$5 billion ($5.1 billion) take-over of oil and gas producer PrimeWest Energy Trust by state-controlled Abu Dhabi National Energy.
Flaherty said the Conservative government aims to reduce taxes this autumn but he did not make clear what measures might be included in a major policy outline to be presented by the government next Tuesday.
The leader of the opposition Liberals said on Friday he too would reduce the corporate tax rate to offset the rising Canadian dollar. ( Reuters )