Gregory So, Hong Kong’s Secretary for Commerce and Economic Development recently and his Canadian counterpart, the Honourable Ed Fast (Minister of International Trade in Canada), recently announced the singing of the Canada-Hong Kong Foreign Investment Promotion and Protection Agreement (otherwise known as a FIPA) during the APEC meeting on May 23, 2015. Canada-HK negotiations for a FIPA have been ongoing since 2014 and Hong Kong is a clear priority market under the Global Markets Action Plan. The main purposes of a FIPA are to establish clear investment rules and measures to protect foreign investors against discriminatory or arbitrary government practices, to provide effective compensation in the event of an expropriation and to enhance the overall predictability of the policy framework governing foreign investments. The existence of a FIPA has often proven to be useful in terms of promoting the parties’ respective markets as a stable destination for investment with clearly defined and enforceable rules. In fact, foreign investors often look to the existence of a strong investment protection agreement as a key consideration in their decision-making process.
For more information please see the Foreign Affairs, Trade and Development Canada website.
