International Trade Committee on Feb. 15th, 2024

[Chandra Arya, Liberal, Nepean, ON]

I have a quick question on the investment side. In my previous life, when I was still a student, in my economics class I learned that trade follows investment; I don't know if that is still true. We don't have a current foreign investment protection agreement as of now, and the protection that is available to Canadian investments will expire in 2033, if I'm not wrong. If we don't have a free trade agreement with a dedicated investment chapter and provisions like ISDS, etc., the current investments and any potential investments for Canadian companies going in there...the new investments will have to go in without any sort of protection, so that will create hesitation amongst Canadian companies to expand into Ecuador.

Can you highlight the need for this free trade agreement, in addition to exporting our goods like wheat, etc., and why it is required to have a door open for safe investment by Canadian businesses?

[Reuben East]

First of all—again, to clarify what the current status is—you're absolutely right that going forward, because the foreign investment protection agreement we had with Ecuador has been terminated, only investments that were made in and around 2018 are protected until 2033. Anything after that would not be protected by that agreement, and because we don't yet have an agreement, we haven't started negotiations with Ecuador on a free trade agreement with an investment chapter with investor-state, there can be no protection for that, so—

[The Chair, Liberal, Judy Sgro]

Thank you very much.

As you can see, the bells have started. We have a vote call.

Thank you very much to all our witnesses. That was very valuable information. We appreciate your patience.

We are adjourned.