Canada Launches Investment Talks With Benin And Burkina Faso

by Mike Godfrey, Tax-News.com, Washington

05 June 2012

The Canadian government has launched negotiations on foreign investment promotion and protection agreements (FIPAs) with Benin and Burkina Faso in a bid to boost investment and open new markets.

The talks were announced by Canada's Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, and John Baird, Minister of Foreign Affairs. According to Fast, a more predictable and stable investment environment in Africa will contribute to job creation and economic growth. He explained, “When I met with the heads of African missions to Canada several months ago, I promised that we would intensify our engagement with and commitment to Africa. That is why I am very pleased to demonstrate this commitment by announcing that Canada has officially launched FIPA negotiations with both Burkina Faso and Benin.”

Bilateral merchandise trade between Canada and sub-Saharan Africa stood at CAD10bn in 2011, up from CAD7.8bn the previous year and CAD5.3bn in 2009. Sectors including telecommunications, agriculture, energy, transportation, infrastructure, natural resources and education are seen as having particular opportunities for Canadian businesses. It is hoped that completing FIPA talks with Burkina Faso and Benin will provide investors with greater confidence by offering a more transparent, stable and predictable investment environment.

FIPA negotiations have been concluded with Madagascar and Mali, and Canada is in active talks with Cameroon, Ghana, the Ivory Coast, Tanzania, Tunisia and Zambia. “These agreements will help attract more Canadian investment to Benin and Burkina Faso, while strengthening economic growth and opening new markets for Canadian businesses, particularly small and medium-sized businesses. At the same time, we will provide new hope and opportunity for the people of Burkina Faso and Benin,” Fast added.

 

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