Hong Kong and Canada sign Investment Promotion and Protection Agreement
The Secretary for Commerce and Economic Development, Mr Gregory So, today (February 10, Toronto time) representing the Government of the Hong Kong Special Administrative Region, signed an Investment Promotion and Protection Agreement (IPPA) in Toronto, Canada, together with the Canadian Minister of International Trade, Ms Chrystia Freeland.
Mr So said, "Hong Kong is the key trade and investment centre of Asia and an ideal gateway for Canadian businesses to tap into the vast market potential in the region, particularly the Mainland of China. The signing of the investment agreement will give additional assurance to investors, expand investment flows between Hong Kong and Canada, and further strengthen our existing strong economic and trade ties."
Ms Freeland said, "With our strong trade ties and established trade and investment links, Hong Kong is a natural partner for Canadian businesses. Hong Kong offers a dynamic economy and today's investment agreement will help Canadian businesses more easily access this reliable entry point into the larger Asia-Pacific region. Together we are focused on enhancing the prosperity of Canadians at home and connecting them to opportunities abroad."
Under the IPPA, the two governments undertake to provide investors of the other side with fair, equitable and non-discriminatory treatment of investments; compensation for expropriation of investments; and the right to free transfers abroad of investments and returns. The IPPA also provides for settlement of investment disputes under internationally accepted rules. The IPPA will enter into force after the completion of the necessary internal procedures.
Hong Kong and Canada have been maintaining excellent economic and trade relations, and are each other's important investment partners. As at end of 2014, Canada was the 16th major source of inward direct investment into Hong Kong, with a stock of HK$38.6 billion. At the same time, Canada was the 10th major destination of outward direct investment from Hong Kong, with a stock of HK$73.9 billion.
The IPPA with Canada is the 18th IPPA that Hong Kong has signed. Other economies with which Hong Kong has signed IPPAs are the Netherlands, Australia, Denmark, Sweden, Switzerland, New Zealand, Italy, France, Germany, the Belgo-Luxembourg Economic Union, Austria, Japan, the Republic of Korea, the United Kingdom, Thailand, Finland and Kuwait.
Ends/Thursday, February 11, 2016