Introduction

Canada remains open to investment from foreign markets and continues to recognize the key role that Canadian direct investment abroad can play in the success of Canadian-based companies in the global economy. To this end, the Government of Canada's multi-year Global Commerce Strategy includes the strategic use of a variety of policy tools such as foreign investment promotion and protection agreements and free trade agreements in order to improve access for Canadian businesses and investors in key markets. Facilitating access to key investment markets for Canadian businesses will lead to further innovation, strategic partnerships and enhanced trade.

Foreign Investment Promotion and Protection Agreements

A Foreign Investment Promotion and Protection Agreement (FIPA) is the Canadian version of what is more commonly known as a bilateral investment treaty. FIPAs are designed to protect Canadian investment abroad through legally binding rights and obligations that create predictable investment climates. Canada's model FIPA incorporates key principles, such as treatment that is non-discriminatory and that meets a minimum standard, as well as dispute settlement procedures. The rights and obligations created by FIPAs do not restrict Canada's ability to regulate in the public interest, as foreign investors must abide by the same laws and regulations (e.g. on health, labour and environment) as domestic investors. The same holds true for Canadian firms present in foreign states.

Market Access Achievements

• Canada has implemented FIPAs with 23 countries.
• Canada has concluded negotiations on agreements with India, Jordan, Kuwait and Madagascar, and these are awaiting ratification.

Market Access Plans and Priorities

• As set out in the Global Commerce Strategy, Canada has undertaken to double the number of existing FIPAs within the next few years.
• Continued efforts for this year include FIPA negotiations with Bahrain, China, Indonesia, Mongolia, Tanzania, Tunisia and Vietnam. Exploratory work aimed at initiating formal FIPA negotiations with priority countries in Southeast Asia, Central Asia, Africa and the Caribbean will also continue.