Canada and China Negotiate Investment Treaty
Q: What is recent progress on the bilateral investment treaty in discussion between China and Canada:
A: Declaration of Intent was signed on February 8, 2012, by Canada’s Minister of International Trade and Minister for the Asia-Pacific Gateway, and the People’s Republic of China’s Minister of Commerce, which indicates that the substantive negotiations between the countries on a bilateral investment treaty (BIT)have come to a close.
Q: What is effect of the recent progress on the bilateral investment treaty in discussion between China and Canada:
A: When it comes into force, the Canada-China, it will facilitate a secure environment for investors from both countries, and increase bilateral foreign direct investment (FDI) flows between Canada and China.
Q: What is the scope of the BIT?
i. The twin pillars of non-discrimination: national treatment and most-favored-nation treatment;
ii. Minimum standard of treatment;
iv. transfers of funds; and
v. rules regulating the expropriation of investments.
vi. grant investors access to “investor-state” dispute settlement arbitration. Investor-state dispute resolution regimes typically feature detailed rules on standing, procedural requirements and enforcement.
Q: Other points in discussion
• dispute resolution provisions generally remain different from those in the Canadian model FIPA.
• FDI protections once the investment has been established.