Governments have concluded several bilateral and multilateral investment protection agreements. These contracts contain, on the one hand, a set of standards that governments respect with regard to investors in the country with which they signed the agreement and, on the other hand, mechanisms by which investors can seek redress for violation of these conditions. This article specifies that in the event of a political reversal in a fragile country, investors are assured that foreign companies will be compensated in the same way as local companies, in order to avoid “expropriations unfavourable to the foreign investor”. Volume and definition of “investments”: the idea of investment is generally different from that of trade in goods and services covered by other contracts. Muthucumaraswamy Sornarajah, a professor at the National University of Singapore, states that “foreign investment involves the transfer of tangible or intangible assets from one country to another for use in that country for wealth creation; under the full or partial control of the owner of these assets. Unlike investment protection, investment promotion provisions are rarely formally included in AI and, if so, these provisions generally remain non-binding. Nevertheless, improving the formal protection offered to foreign investors through an I2 should encourage and encourage cross-border investment. The benefits of higher foreign investment are significant for developing countries that wish to use foreign investment and IDAMIT as instruments to improve their economic development. Discover new ways to expand your international presence. Canada`s broad (and growing) commercial network provides Canadian businesses with preferential access to various markets around the world. This page examines Canada`s Free Trade Agreement (FTA), Foreign Investment Promotion and Protection Agreements (FIPA), multilateral agreements and World Trade Organization (WTO) agreements. Note: The texts of the treaty on this page are exclusively for information; the official texts of the treaties are published in the “Treaty of Canada” series.
Hong Kong IPPAs provide foreign investors with an additional guarantee that their investments in Hong Kong are protected and allow Hong Kong investors to benefit from similar protection for their foreign investments. A typical IPPA includes the treatment of the most favoured nation: Sornarajah states that the inclusion of this concept in investment contracts “allows nationals of the Member States parties to the agreement to use the favourable treatment granted to third-country nationals by certain contracting states”. In other words, if one of the states that have entered into a bit or an MIT grants benefits to an investor from a third country, companies in the other country that have signed the contract can claim the same treatment.