Canada-Mongolia investment agreement enters into force
March 7, 2017 - Ottawa, Ontario - Global Affairs Canada
Creating the right conditions for Canadian businesses to compete internationally is an important part of the Government of Canada’s progressive trade agenda, which is helping the middle class and those working hard to join it.
The Honourable François-Philippe Champagne, Minister of International Trade, met today with Tsedev Dashdorj, Mongolia’s Minister of Mining and Heavy Industry, on the sidelines of the annual convention of the Prospectors and Developers Association of Canada, in Toronto, Ontario, and announced that the Canada-Mongolia Foreign Investment Promotion and Protection Agreement (FIPA) has entered into force.
This agreement sets out a framework of legally binding rights and obligations that will protect Canadian investors in Mongolia. The strong reciprocal protections in the FIPA will help Canadian and Mongolian companies deepen commercial ties with confidence and spur job creation.
Canada is one of the top investors in Mongolia, largely in the mining sector. In 2015, Statistics Canada estimated Canadian investment in Mongolia at approximately $6.4 billion.
The positive investment climate created by the FIPA may also help pave the way for deeper cooperation in Mongolia’s non-resource-based sectors, such as infrastructure and agriculture, where Canadian companies have valuable expertise to share.
Through deeper economic engagement, Canada is helping Mongolia to further build its capacity to manage its natural resources sector effectively and according to principles of transparency and accountability, environmental sustainability and inclusivity.
“The opportunities to strengthen our middle class relate directly to creating the right conditions for Canadian businesses to compete internationally, and that is precisely what this agreement is all about.”
- François-Philippe Champagne, Minister of International Trade
The FIPA will provide Canadian investors operating in Mongolia with a legal framework that will help bring greater predictability and certainty with respect to their investments.
Canada and Mongolia signed the FIPA on September 8, 2016.
Mongolia is a country of focus for Canada’s development funding, with seven operational projects worth $40 million over five years (2015 to 2020) promoting sustainable economic growth and democratic development.
Canada supports the improved governance of Mongolia’s natural resources sector, including through capacity building on public-sector management and development and the implementation of policies and regulatory frameworks based on international best practices.
These efforts aim to help Mongolia pursue governance based on principles such as transparency and accountability, environmental sustainability, evidence-based decision making and gender mainstreaming, for the benefit of all Mongolians.
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