Public Consultation: Canada's International Investment Agreements (FIPAs)

Thank you!

The online public consultation on “Canada's International Investment Agreements (FIPAs)” has ended as of October 28, 2018. The Discussion boards are now closed to participation. We are however, still accepting submissions through Fall 2018 via the following email address: FIPAconsultationAPIE@international.gc.ca. We also invite you to consult the Resources section for background information on key themes of the FIPA consultation.

Over three-hundred fifty Canadians took the time to send us their ideas. Thank you to those who have participated in this important consultation informing how Canada’s progressive trade agenda can be better integrated into Canada’s investment agreements. 

Why are we conducting this consultation?

We want to hear from you! The Government of Canada is seeking feedback on how Canada’s trade and investment agreements can reflect Canada’s progressive trade agendaprogramme commercial progressiste through a multi-step consultation process.

Global Affairs Canada invites all Canadians to share their views on how Canada’s progressive trade agenda can be better integrated into Canada’s investment agreements to ensure that all Canadians’ interests are addressed.

Following this FIPA-specific consultation, we intend to continue to engage Canadians over time on other areas related to Canada’s progressive trade agenda. We invite participants in all consultations related to our progressive trade agenda to be creative in the way they think about an issue and to take an integrated and holistic approach to the consultations.

We will be seeking input and feedback on the content of our trade and investment agreements during this consultation. At the conclusion of each stage of the process, we will report back to you on its findings. These reports will include details on how the feedback collected will inform Canada’s position in ongoing and future trade and investment agreement negotiations. 

What is a foreign investment promotion and protection agreement?

A foreign investment promotion and protection agreement, or FIPA, is an agreement between two countries who commit to provide greater predictability and certainty to each other’s investors. 

Canada’s FIPAs ensure that Canadian investors are treated in non-discriminatory and non-arbitrary ways by the governments of the countries where they invest. These agreements also send a positive signal to foreign investors that Canada welcomes their investments.

FIPAs include core obligations that prohibit governments from:

• discriminating against investors from partner countries on the basis of nationality
• treating investments arbitrarily or in ways contrary to the principles of international law
• expropriating investments without prompt, effective and adequate compensation
• imposing requirements that prevent the efficient operation of enterprises and interfere with the efficient allocation of investment resources
• restricting the ability of investors to return their profits home or otherwise transfer investment-related funds in and out of the country

Why are we modernizing Canada’s FIPAs?

The Government of Canada continuously seeks to ensure that our international trade policy carefully balances the interests of all Canadian stakeholders. For the past two years, the government has been developing a progressive trade agendaprogramme commercial progressiste to ensure that our international treaties, including FIPAs, are inclusive, transparent and accountable. 

Why is it important to protect Canadian investment abroad?

• Canada is both a significant importer and a significant exporter of capital. In 2017, Canadian direct investment abroad amounted to over $1.1 trillion—over 50% of Canada’s gross domestic product (GDP). It is a key cylinder in the engine of our economic prosperity.
• Canada’s international trade and investment agreements (FIPAs and free trade agreements) protect more than $653-billion worth of Canadian direct investment abroad—approximately 30% of Canada’s GDP in 2017. The entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) will add another $319 billion to Canadian investment protected by our treaties.
• Investments by Canadian companies abroad support well-paid, high-value-added jobs at home, help develop supply chains, and create new export opportunities for Canadian firms, many of which are small and medium-sized enterprises.

Did you know?

• Canada currently has 36 FIPAs36 APIE in force around the world.
• Companies that invest abroad are more productive, export more and tend to pay higher wages than those that don’t invest abroad; in the process, they are better able to create jobs.
• Many Canadian investors are engaged in jurisdictions with uncertain legal environments, so it is important that they have tools and frameworks they can rely on when doing business internationally.
• Through FIPAs and investment chapters in our free trade agreements, the government helps create enabling conditions for Canadian business to succeed internationally.