Amazon Cleared To Open Warehouse In Canada
April 13, 2010, 14 years ago
According to Theglobeandmail.com, the Canadian federal government is allowing online book seller Amazon.com Inc. to build a warehouse in Canada in return for the US company's promise to promote Canadian culture and to hire its first-ever Canadian employees.
The government said Monday it approved Amazon's plan for a “fulfilment centre” warehouse after reviewing the proposal under the Investment Canada Act. That law protects the bookselling business from foreign ownership because it is part of the cultural sector.
Canadian booksellers had opposed the warehouse proposal, saying it would harm the country's cultural industry.
The review began in January after Amazon proposed to open its first warehouse on Canadian soil and aimed to determine whether the investment would be a “net benefit to Canada.”
James Moore, the Minister of Canadian Heritage, said Amazon has shown its willingness to promote Canadian cultural products.
“Our government is committed to strengthening Canada's economy through all its sectors, especially arts and culture,” Mr. Moore said in a statement. “Amazon has shown its willingness to promote Canadian cultural products, and we are pleased it is continuing to demonstrate this through this new investment.”Under the Investment Canada Act, foreign investment in book publishing and distribution has been limited to Canadian-controlled joint ventures.
The Canadian Booksellers Association has been vocal in its opposition to the warehouse, arguing it could set a precedent allowing “American Goliaths” to become a commanding presence in Canada.
But Amazon called the argument that a foreign owned retailer couldn't be trusted to promote Canadian culture “preposterous.”
As part of the deal, Amazon will invest more than $20-million, including $1.5-million for cultural events and awards and for promoting Canadian-authored books abroad.
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