Regional and Bilateral Initiatives
Canada's Foreign Investment Protection and Promotion Agreements
(FIPAs)
Background on Canada-Peru FIPA
Canada re-engaged Peru in FIPA negotiations in December 2003 after
a hiatus of several years. The current negotiations are on the basis
of the new model FIPA
which was approved by Cabinet in the fall of 2003.
The negotiations with Peru are well advanced. We anticipate concluding
the process of negotiation by the end of May 2006, after which the
treaty will need to be ratified by both Parties.
The stock of Canadian foreign direct investment (FDI) in Peru is
significant, totalling $1,790 million in 2003. Investments in the
mining sector dominate Canada's investment presence in Peru. However,
large investments also exist in hydro-electric transmission projects
and printing facilities. A Canada/Peru FIPA will provide greater
protection for Canadian investments in Peru. Peru's total investment
in Canada is small, at only $1 million in 2003. The Canada/Peru
FIPA is not likely to result in a significant increase of investment
flows from Peru into Canada. While the existence of a FIPA should
be a positive and important factor in investors’ decisions
on whether to invest in the territory of the other party, it will
be but one of many factors. The main effect of a FIPA is likely
to be greater protection for existing Canadian investment in Peru.
The FIPA will preserve the right of both Canada and Peru to regulate
in the public interest, including with respect to environmental
protection.
Report on the Initial Environmental Assessment of the Canada-Peru
Foreign Investment Protection Agreement (FIPA) (html
| pdf)
Contact Point
If you have questions or comments about this initiative, we would
like to hear from you. Please contact:
Investment Trade Policy Division (EBI)
Department of Foreign Affairs and International Trade (International
Trade)
Lester B. Pearson Building
125 promenade Sussex Drive
Ottawa, Ontario, K1A 0G2
Fax: 613-944-0757
E-mail : consultations@international.gc.ca
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