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Harper OKs Canada-China Foreign Investment Deal after Lengthy Delay

Posted September 12, 2014

Under Economic Issues, International Trade Issues

(Susan Lunn – CBC News)

The controversial Canada-China Foreign Investment Promotion and Protection Agreement (FIPA) was signed in 2012 and is meant to provide a framework of legal obligations and rights that would enhance foreign investment.

Harper said in 2012 that he “absolutely” expected that it will make a “practical difference.” China ratified the deal quickly, but the Harper government did not.

Between the Harper government’s failure to ratify the deal and rules restricting state-owned enterprises from buying up companies in the oil patch, the trade relationship has cooled. There is also a growing divide around the Cabinet table, between those suspicious of allegations of China’s cyberspying, and those who want to increase trade with the Asian country. Read more here.