November 14, 2006
No. 134
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.
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A backgrounder is attached.
For further information, media representatives may contact:
Jennifer Chiu
Press Secretary
Office of the Minister of International Trade and Minister for the Pacific Gateway and
the Vancouver-Whistler Olympics
613-992-7332
Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
http://www.international.gc.ca
Backgrounder
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.
