Canada-Madagascar FIPA Negotiations
Background
Canada and Madagascar concluded negotiations for a Foreign Investment Promotion and Protection Agreement (FIPA) in August 2008. This bilateral FIPA will enhance Canadian investors’ confidence when considering investment opportunities in Madagascar, and will underscore Madagascar’s reliability as an investment destination. The agreement will protect investors by establishing a framework of legally binding rights and obligations. Signature of the agreement has been delayed until the political crisis in Madagascar has been resolved.
At the request of the private sector, Canada agreed in 2007 to negotiate a FIPA with the Republic of Madagascar. Exploratory discussions were held in November 2007 in Antananarivo, Madagascar, followed by two rounds of negotiations which also took place in Anatanarivo in March and May of 2008. Final negotiations took place over the course of the summer and concluded in August.
Madagascar offers significant investment opportunities for Canadian investors in a variety of sectors including mining, agriculture and infrastructure, among others. Merchandise exports between Canada and Madagascar in 2007 were $11 million. Canadian investments in Madagascar will soon reach $3 billion. Canada is now the largest foreign investor in Madagascar.
Additional information on FIPAs:
Canada is seeking to enhance predictability and protection for Canadian investors through the negotiation of FIPAs with targeted countries. Canada has also recently concluded FIPA negotiations with India and Jordan, and has ongoing negotiations with China as well as Kuwait, Vietnam, Indonesia and Tanzania.
Canada has currently 23 FIPAs in force: Argentina, Armenia, Barbados, Costa Rica, Croatia, the Czech Republic, Ecuador, Egypt, Hungary, Latvia, Lebanon, Panama, the Philippines, Poland, Peru, Romania, Russia, the Slovak Republic, Thailand, Trinidad and Tobago, Ukraine, Venezuela and Uruguay.
