Ottawa - Foreign Affairs, Trade and Development Canada
The Honourable Ed Fast, Minister of International Trade, today announced that the foreign investment promotion and protection agreement (FIPA) between Canada and Kuwait came into force on February 19, 2014.
A FIPA is a treaty designed to protect Canadian investment abroad and promote foreign investment in Canada through reciprocal, legally binding provisions. By ensuring greater protection against discriminatory and arbitrary practices and by enhancing the predictability of a market’s policy framework, a FIPA gives businesses greater confidence in investing. The agreement with Kuwait will help to facilitate investment flows between the two countries, thereby contributing to job creation and economic growth in both countries.
There are many opportunities for Canadian firms in Kuwait in key areas where there is strong Canadian expertise, including oilfield equipment and services, health care and education services, and telecommunications equipment.
Quick Facts
- Canada-Kuwait merchandise trade was valued at $117.1 million in 2012.
- Kuwait is a founding member of the Organization of the Petroleum Exporting Countries and a member of the Gulf Cooperation Council (GCC); the Gulf region is a priority market for Canada.
- This will be the first Canadian FIPA to come into force in the wealthy GCC region.
- Canada has concluded, signed or brought into force FIPAs with 22 countries since 2006—a record 10 in 2013 alone—and is negotiating many more. The Kuwait agreement gives Canada 26 FIPAs in force around the world.
Quote
“Last year, our government finalized a record number of FIPAs as part of the most successful year for international trade in Canada’s history. This FIPA with Kuwait is our first in 2014, and we are committed to delivering even more agreements as part of the Global Markets Action Plan, which combines ambitious trade policy with vigorous trade promotion. This agreement will provide better protection for Canadian companies operating in Kuwait and strengthen economic ties between our two countries.”
- Ed Fast, Minister of International Trade
src:news.gc.ca