An agreement on the promotion and protection of foreign investment (FIPA) is an agreement to encourage foreign investment. Canada`s quest for a free trade agreement with China had already suffered a series of setbacks: Beijing refused to accept Ottawa`s demands for gender, labor and environmental clauses in such an agreement. The exploratory interviews have not taken place for several years. 1994: Canada begins negotiations for a trade agreement with China. Prime Minister Jean Chrétien, the architect of Team Canada`s trade missions, visited China six times during his tenure as Prime Minister, but while countries concluded some agreements on Nuclear reactors designed by Canada and other businesses, no free trade agreement was reached. While China`s growing demand for agriculture and food has benefited Canada`s agricultural sectors, Canadian exporters continue to face a number of significant barriers to trade growth. Similarly, China`s domestic food self-sufficiency policy and its programmes to promote and protect local agriculture continue to limit the competitiveness of imported agricultural products and limit domestic demand for imported products. Tariffs and non-tariff barriers also limit the range of products that can be exported to that country and increase both risk and uncertainty for exporters. Below – Canada and China`s Trade Dreams: A Story Use the drop-down menu to search for an agreement by country, contract type or status. Or use the filter option to search for keywords.
To be fair, it could be said that the conclusion of an investment promotion and protection agreement is much less complicated than establishing more open trade relations with the CPP. This is certainly a defensible position. Ottawa`s negotiating teams should address the issue of “labour standards” if they follow a path of trade liberalization with China. Correcting gaps in “work management” practices is a huge problem that would be difficult to overcome. For example, China has about 30 Special Economic Zones (SEZ), which employ about 13 million workers. In general, working conditions are unpleasant. In addition, many rural and remote areas of farmers migrate to these areas each year in search of work. This stray army of unemployed farmers unwittingly strengthens the bargaining position of employers and has a depressing effect on wages, health and safety standards. Although Canada does not operate SEZ (better known as export processing zones[CPE]), it does have experience negotiating trade agreements with countries that do. The perfect example is Mexico (which uses the term maquiladoras instead of CPE) and has a similar history of worker exploitation and poor working conditions. However, for Canada`s free trade plans with China, “it is always important that they take it off the table,” said Professor Houlden.
Learn more about Canada`s trade and investment agreements: types of contracts and the gradual development of trade and investment agreements. 2018: U.S. President Donald Trump sparks a customs war with China, his government has signed a new trilateral trade agreement with Canada and Mexico, which contains a clause preventing its signatories from signing separate agreements with “non-market” countries – generally understood as China. In any event, Mr. Trudeau expressed the hope of a “possible” Sino-Canadian agreement. This prospect will be further removed in December, when RCMP officers arrest Meng Wanzhou, the chief financial officer of China`s Telekom Huawei, at the request of the United States.