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Taiwan, Canada complete negotiations on investment pact

10/24/2023 09:31 PM
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The Canadian flag. Photo taken from Pixabay
The Canadian flag. Photo taken from Pixabay

Taipei, Oct. 24 (CNA) Taiwan and Canada have completed negotiations on a pact aimed at promoting investment and protection, about nine months after talks began in February, the two countries announced simultaneously Tuesday evening.

The deal, if ratified, "will be beneficial for Taiwanese small and medium-sized enterprises who want to expand their investment presence" in Canada and "support Taiwan's goal of achieving net-zero transformation," Taiwan's Office of Trade Negotiations (OTN) said in a press release.

A statement issued by Global Affairs Canada (GAC), Department of Foreign Affairs, Trade and Development of the Canadian Government, said that the arrangement, once in effect, will help to strengthen trade and investment between Canada and Taiwan.

"Today's announcement showcases Taiwan as an important trade and investment partner, especially as Canada deepens its economic partnerships and relationships in the Indo-Pacific region as part of its Indo-Pacific Strategy," the GAC said.

A foreign investment promotion and protection arrangement (FIPA), which comprises over 70 articles and appendices, will be formally signed after the completion of the legal text review and respective administrative procedures, according to the two parties.

In line with recent international investment agreements, the FIPA incorporates comprehensive investment protection norms and restricts the host country from imposing additional investment restrictions beyond what has been mutually agreed upon, to ensure investors enjoy a predictable and stable investment environment, the OTN said.

Meanwhile, the host country retains the right to regulate in accordance with its domestic policy objectives while recognizing values such as corporate social responsibility, cultural diversity, environmental protection, gender equality, labor rights and inclusive growth, it said.

Taiwan and Canada formally launched talks on an investment agreement in February, following a year of exploratory discussions on the key concepts of the pact.

With thorough preparation, the negotiation process proceeded smoothly, and a fruitful outcome achieved in less than a year, the OTN said, adding that the office also conducted forums and video conferences with industry stakeholders and relevant parties throughout the process.

The "high-standard investment agreement" clearly demonstrates that both parties adhere to high-standard international economic and trade rules, the OTN said.

(By Tseng Chih-yi and Shih Hsiu-chuan)

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