Regional and Bilateral Initiatives
Canada's Foreign Investment Protection and Promotion Agreements
(FIPAs)
A Foreign Investment Promotion and Protection Agreement (FIPA)
is a bilateral agreement aimed at protecting and promoting foreign
investment through legally-binding rights and obligations.
FIPAs accomplish their objectives by setting out the respective
rights and obligations of the countries that are signatories to
the treaty with respect to the treatment of foreign investment.
Typically, there are agreed exceptions to the obligations. FIPAs
seek to ensure that foreign investors will not be treated worse
than similarly situated domestic investors or other foreign investors;
they will not have their investments expropriated without prompt
and adequate compensation; and, in any case, they will not be subject
to treatment lower than the minimum standard established in customary
international law. As well, in most circumstances, investors should
be free to invest capital and repatriate their investments and returns.
Canada began negotiating FIPAs in 1989 to secure investment liberalisation
and protection commitments on the basis of a model agreement developed
under the auspices of the OECD (Organization for Economic Cooperation
and Development).
In 2003, Canada updated its FIPA model to reflect, and incorporate
the results of, its growing experience with the implementation and
operation of the investment chapter of the NAFTA. The principal
objectives of this exercise were: to enhance clarity in the substantive
obligations; to maximize openness and transparency in the dispute
settlement process; and to discipline and improve efficiency in
the dispute settlement procedures. Canada also sought to enhance
transparency in the listing of reservations and exceptions from
the substantive disciplines of the Agreement.
Status of FIPA Negotiations
Related Links
Contact Point
If you have questions or comments, please contact Foreign Affairs
and International Trade Canada at:
Investment Trade Policy Division (TBI)
Foreign Affairs and International Trade Canada
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario K1A 0G2
Fax: 613-944-0679
E-mail: consultations@international.gc.ca
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