Taiwan and Canada concluded negotiations on a foreign investment promotion and protection arrangement Oct. 24, marking another pivotal step in strengthening the bilateral relationship, the Office of Trade Negotiations under the Executive Yuan said in a press release.
According to the OTN, this is the first such pact to be completed by Canada since the North American country revised its model investment agreement in 2021. It follows the arrangement for the avoidance of double taxation signed by the two sides in 2016, the office said.
Comprising more than 70 provisions, the high-standard agreement will offer some of the most comprehensive levels of protection, predictability, inclusiveness and convenience among similar pacts recently signed by countries worldwide, the OTN added.
Taiwan and Canada are mutually significant economic partners, with the two-way trade amounting to US$5.8 billion in 2022. Taiwan’s accumulated investments in Canada total US$600 million to date, while those by Canada in Taiwan amount to US$1 billion, the OTN said. Given the two sides’ respective economic foundations, the office anticipates the pact will help Taiwan’s small and medium enterprises expand their footprints in Canada.
In its official statement, Canada’s Office of the Minister of Export Promotion, International Trade and Economic Development said the announcement showcases Taiwan as an important partner, especially as Canada deepens Indo-Pacific economic relationships. The Canadian government is working with Taiwan to ensure that the pact will be signed and come into effect promptly, the agency added.
The Ministry of Foreign Affairs also issued a statement welcoming the development. The completion of the negotiations came within one year after Canada issued its November 2022 Indo-Pacific Strategy and reflects the deepening of the bond between the two sides, it said. (SFC-E)
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