That's a very important point. It's one of the first things that comes up when you talk to Canadian businesses that are doing business, or looking at doing business, in India.
There are a lot of different ways we can address that. Let's look at it at a collective level policy-wise here in Canada. I don't want to keep bringing up the same organizations, but I really think they are indispensable: Export Development Canada and the trade commissioner service. Much of the ability to avoid some of these risks has to do with building proper local relationships with the right people, and the organizations I just mentioned can assist with those activities. Export Development Canada can also provide risk protection insurance. It is a cost you will face as a business, but such insurance will allow you to protect yourself against certain volatility that may happen in an uncertain regulatory environment.
I would mention the FIPA as well, as a mechanism through which we can reduce the uncertainty there. I appreciate the points that Professor Van Harten and Mr. Davies mentioned. We don't want to get into the issue of reforming the international dispute settlement system, but if I can just make one or two points about the value of a FIPA. Responding to some of the criticisms of it here, there is typically—and Mr. Van Harten can correct me if I'm wrong—an ability for both the investor and the government to appoint members of that arbitration committee. It is not being selected by the company or an entirely different institution. There's input to ensure that both countries are picking what they see as impartial arbitrators.
There's also an obligation on the part of the governments that sign these agreements to properly instruct their regulators and their legislators about what would and wouldn't comply with an international investment treaty obligation. Ultimately, there is a trade-off. It does limit your policy space as a government, but I think you have to balance that against the need to credibly show that you will protect a foreign investor's investment. A foreign investor doesn't vote in your country. How can you persuade him that you are going to keep that investment secure? That's how a FIPA can help us deal with some of the concerns about the business climate and environment in India.