Today’s global economy means that countries must make difficult decisions about international trade. Our Conservative government is committed to creating the right conditions for Canadian businesses as they compete globally.

Much media attention has focused lately on the FIPA – the Foreign Investment Promotion and Protection Agreement between Canada and China.

The FIPA’s strength lies in the two elements named in the agreement: Promotion and Protection. It will both strongly protect Canadians investing in China, while simultaneously creating jobs and spurring economic growth.

The agreement establishes a clear set of rules under which investments are made and under which investment disputes are resolved. A Canadian company either setting up a business or making an investment in China may not be treated less favourably than any other company – including Chinese companies.

Chinese investors in Canada must obey all the laws and regulations of Canada, just as any Canadian must. A clear set of well-established investment rules will provide greater protection against discriminatory and arbitrary practices.

Those concerned about the Chinese legal system need to know that it will not be involved in dispute resolutions. All investment disputes will be resolved under international arbitration, guaranteeing fair and independent decisions. Not only that, the FIPA mandates transparency in the matter of the dispute process. Until now, China has never agreed to public scrutiny in this matter.
 
Under the FIPA, Canada keeps all authority to regulate and legislate all that concerns our environment, culture, safety, health and conservation. It also keeps the right to review all foreign investments according to the terms of the Investment Canada Act, ensuring that any transactions benefit Canada and pose no plausible threat to our national security.

Twenty-four other agreements between China and key trade and investment partners, including New Zealand, Germany, the Netherlands, Belgium and Japan have already been signed. Of them all, the FIPA has the most favourable terms.

Our government has been very clear with the Chinese government: only a scenario that creates clear benefits for both sides of the agreement will encourage us to continue to expand the commercial relationship between our two countries.

To sum up, the FIPA will give Canadians in all provinces, including Saskatchewan, greater confidence as they make decisions about whether or not to invest in China.  It will also spur increased investment and create jobs and economic growth right here at home. But it will do so while protecting the interests of Canadians.

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The audio version of Garry's Nov. 12, 2012 op-ed column can be heard by clicking here