After having declined in 2009-2010, the inflows of FDI in Canada increased again in 2011-2012. The Canadian economy is considered to be more stable than other large western economies. In 2013, FDI continued to make progress, according to the data available in November, they had an increase of 44% in relation to 2012.
According to the UNCTAD World Investment Report 2013, the country ranks 10th in terms of FDI inflows. Canada has an attractive business environment. It ranks 19 out of 189 countries in the classification Doing Business 2014 issued by the World Bank. However, it went down two places in relation to the previous year.
|Index of Transaction Transparency*||8.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||9.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||7.0||9.0||5.0|
|Index of Investor Protection****||8.7||6.1||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||39,669||43,025||62,325|
|FDI Stock (million USD)||591,043||629,825||644,977|
|Performance Index*, Ranking on 181 Economies||57||-||-|
|Potential Index**, Ranking on 177 Economies||17||-||-|
|Number of Greenfield Investments***||327||309||264|
|FDI Inwards (in % of GFCF****)||9.5||9.8||14.1|
|FDI Stock (in % of GDP)||33.2||34.6||35.3|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
It has concluded FTAs with the United States and Mexico (NAFTA), as well as with Chile, Israel, Costa Rica in July 2007 and Panama in August 2009 (elimination of tariffs in sectors of industry, agriculture, forestry and fishing).
Canada, Peru and the countries of the European Free Trade Association (EFTA: Iceland, Liechtenstein, Norway and Switzerland) signed a free trade agreement on 26 January 2008 at Davos, in Switzerland.
In 2012, Canada and Mexico became participants in the Trans-Pacific Partnership (TPP) negotiations, through which the United States and 10 other Asia-Pacific partners are seeking to establish a comprehensive regional agreement to liberalize trade and investment.Canada has negotiated Foreign Investment Protection Agreements (FIPAs) with countries in Central Europe, Latin America, Africa, and Asia and is actively pursuing FIPA’s with a dozen other countries, including India. Canada signed a FIPA with China in September 2012, after nearly two decades of negotiations. Canada also concluded FIPA negotiations with Senegal, Tanzania, and Benin in 2012 and brought into force a FIPA with the Slovak Republic in March 2012.
Investment in specific sectors is covered by special legislation. Foreign investment in the financial sector is administered by the Finance Department. Investment in any activity related to Canada's cultural heritage or national identity is administered by the Heritage Department. The main foreign investment prohibitions concern "cultural industries", the financial sector, aviation, mining, telecommunication, fishing. Restrictions on foreign investment differ by province, but are largely confined to the purchase of land and to financial services
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Last Updates: October 2014