Mr. Speaker, deepening Canada's trade and investment ties with the largest, most dynamic, and fastest growing markets in the world, such as China, is a central feature of the government's pro-trade plan for creating jobs, growth, and long-term prosperity.
By improving access to foreign markets for Canadian businesses, this government is supporting economic growth and creating new opportunities for Canadian companies and investors.
The Canada-China foreign investment promotion and protection agreement is a high-standard agreement and a tangible demonstration of our commitment to help Canadian businesses compete on a level playing field in markets abroad.
In terms of its commitments, this agreement includes reciprocal obligations related to non-discrimination, a minimum standard of treatment under international law, expropriation, free movement of capital, and performance requirements, among others.
This agreement with China is very similar to the 27 FIPAs Canada currently has in force.
This reciprocal agreement establishes a clear set of rules under which investments are made and under which investment disputes are resolved.
Here are some highlights of this agreement.
For Canadian businesses looking to set up in China, they cannot be treated less favourably than any other foreign company looking to do the same. Once an investment is made, a Canadian business cannot be treated less favourably than any other business, including Chinese businesses.
The agreement also protects investors against government expropriation except under strict conditions, and then only with fair compensation.
The foreign investment promotion and protection agreement also ensures that all investment disputes arising from breaches of the agreed rules are resolved under international arbitration, ensuring that adjudications are independent and fair.
Finally, ours is the first bilateral investment agreement that China has signed that expressly includes language on transparency of dispute settlement proceedings. It is Canada's long-standing policy that all dispute resolutions should be open to the public and that the submissions made by the parties be available to the public.
This agreement does not impair Canada's ability to regulate and legislate in areas such as the environment, culture, safety, health, and conservation.
Furthermore, restrictions in the agreement will preserve Canada's current ability to review foreign investments under the Investment Canada Act to ensure they provide a net benefit to Canadians and that our national security is not compromised.
It is also important to note that, under this treaty, Chinese investors in Canada must obey all of the laws and regulations of Canada, just as any Canadian must.
In short, the Canada-China foreign investment promotion and protection agreement is similar to the 27 other investment treaties Canada has implemented with key trade and investment partners.
We join countries such as New Zealand, Germany, the Netherlands, Belgium, and Japan, who have all signed investment treaties with China on terms that are similar to and in some cases less favourable than the terms we have negotiated with China.
Furthermore, our government has brought greater transparency to the treaty review process. For example, in 2008, we introduced a formal tabling policy that requires international treaties to be tabled in the House before their ratification or coming into force.
The tabling period is 21 days, during which MPs and the public have an opportunity to review the treaty. In line with this policy, MPs had an opportunity to carefully review the treaty when the Canada-China FIPA was tabled in the House of Commons on September 26, 2012.
We have been very clear with the Chinese government that Canada wants to continue to expand its commercial relationship with China, but only in a way that produces clear benefits for both sides.
By establishing a clear set of investment rules that provide greater protection against discriminatory and arbitrary practices, this agreement will give Canadians greater confidence as they consider whether or not to invest in China.