Canada’s Minister of International Trade Ed Fast announced Friday afternoon (September 12) that a foreign investment promotion and protection agreement (FIPA) between Canada and China has been ratified and will come into force on October 1, 2014. The agreement was originally signed in September 2012, ratified by China but not by Canada until now.
In a press release Friday the Ministry of Foreign Affairs, Trade and Development Canada said the agreement will “ensure that Canadian companies doing business in China are treated fairly and benefit from a more predictable and transparent business environment.”
However a wide variety of Canadian political parties, social activists, and First Nation Indigenous peoples oppose the agreement signed by the Conservative government of Prime Minister Stephen Harper.
The critics are concerned that the agreement would allow China’s companies to sue Canada for damages if Canada’s federal or provincial governments made decisions that affected the business of Chinese companies.
Even before the ratification was announced union economist Jim Stanford tweeted:
Harper gov’t suddenly wants to push thru Cda-China FIPA, complete with incredible 31-year lock-in that ties hands of future govts. Terrible
— Jim Stanford (@JimboStanford) September 12, 2014
The agreement will be binding on both countries for 31 years.
Prime Minister Harper returns to Beijing in November for the APEC summit.
More information:
Press release – Canada Ratifies Investment Agreement with China – here
Agreement Between the Government of Canada and the Government of the People’s Republic of China for the Promotion and Reciprocal Protection of Investments – here
CBC News – Harper OK’s Canada-China foreign investment deal after lengthy delay – here
CBC News – B.C. First Nation asks court to block Canada-China deal – here
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