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Minister Emerson Signs FIPA with PeruMonday, November 27, 2006 > 14:16:35
(International Trade via I.E. )
MINISTER EMERSON SIGNS FIPA WITH PERU
The Honourable David L. Emerson, Minister of International Trade, and Mercedes Aráoz Fernández, Peru's Minister of International Trade and Tourism, today signed a Foreign Investment Protection and Promotion Agreement (FIPA) between Canada and Peru. The two ministers are in Hanoi, Vietnam, attending the Asia-Pacific Economic Cooperation Ministerial Meeting, from November 15 to 16, 2006.
"Peru is an important gateway into South America, and this agreement will help companies by creating a predictable environment for Canadian investors," said Minister Emerson. "This FIPA is the first such agreement that Canada has signed in eight years, and is part of the Government's strategy to enhance Canada's competitiveness through trade liberalization initiatives and bilateral agreements."
The Canada-Peru FIPA sends a strong positive signal to investors, who will benefit from a stable and predictable investment environment. The Agreement will encourage increased economic links between the two countries and provide Canadian companies with improved access to Peru's increasingly open foreign investment environment. The Agreement will enter into force shortly after the completion of ratification procedures.
The stock of Canadian direct investment in Peru reached $2.3 billion in 2005.
"Two-way investment is an increasingly important part of a nation's commercial performance," Minister Emerson added. "Agreements such as this will help Canadian investors tap into exciting business opportunities abroad, while drawing investment dollars to Canada."
FIPAs are bilateral agreements that protect and promote foreign investment through legally binding rights and obligations. They encourage two-way investment by giving investors the predictability and protection they need as they pursue business opportunities in foreign markets.
A backgrounder is attached.
For further information, media representatives may contact:
Office of the Minister of International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics
Trade Media Relations Office
Foreign Affairs and International Trade Canada
CANADA AND PERU SIGN FOREIGN INVESTMENT PROTECTION AND PROMOTION AGREEMENT
At a bilateral meeting on the margins of the Asia-Pacific Economic Cooperation (APEC) Joint Ministerial meeting, Minister of International Trade David L. Emerson and Peru's Minister of International Trade and Tourism Mercedes Aráoz Fernández signed a Foreign Investment Protection and Promotion Agreement (FIPA) between Canada and Peru. The Agreement, Canada's first in eight years, will enter into force when both parties have notified each other of the completion of ratification procedures.
A FIPA is a bilateral agreement that protects and promotes foreign investment in the territory of the contracting parties. A FIPA sends a strong positive signal to investors, who value its contribution to a more stable and predictable investment environment. FIPAs also encourage increased economic links between Canada and its partners.
The Canada-Peru FIPA stems from a mutual interest in promoting and protecting investment between the two countries. This agreement will provide Canadian companies with increased confidence in pursuing opportunities in Peru's increasingly open foreign investment environment. Canadian investments in Peru are concentrated in the mining sector—Canada is Peru's most important mining partner.
As recognized by the United Nations' Monterrey Consensus and APEC's Bogor Goals on free trade and investment among member countries, investment is a key driver of sustainable development and economic growth. The stock of Canadian direct investment in Peru is significant, totalling $2.3 billion in 2005.
Canada welcomes this opportunity to enhance bilateral investment relations with Peru and looks forward to working together to further strengthen commercial ties between the two countries.
For more information on Canada's existing FIPAs, consult http://www.international.gc.ca/tna-nac/fipa-en.asp.