In keeping with this commitment, on October 4, 2012, Prime Minister Stephen Harper and Tanzanian President Jakaya Kikwete announced the conclusion of negotiations towards a Foreign Investment Promotion and Protection Agreement (FIPA) between Canada and Tanzania.
A FIPA is a treaty designed to protect and promote Canadian investment abroad through legally binding provisions as well as to promote foreign investment in Canada. By ensuring greater protection against discriminatory and arbitrary practices, and enhancing predictability of a market’s policy framework, a FIPA provides investors with greater confidence. Canada has consistently supported strong, rules-based investment through the negotiation of FIPAs.
Once implemented, the Canada-Tanzania FIPA will facilitate investment flow, contributing to job creation and economic growth in both countries.
Now that negotiations have been concluded on a FIPA between Canada and Tanzania, both countries will need to conduct a legal review of the agreement and then sign and ratify it. In order for the FIPA to be ratified, the negotiated text must undergo a thorough legal review in English and French. After the legal review is complete, the FIPA can be signed by both parties, made public, and then proceed through each country’s respective ratification process.
In Canada, the FIPA will be tabled in the House of Commons for 21 sitting-days pursuant to the Government’s treaty tabling policy. It will then come into force once the Order in Council has been approved by the Governor General and the ratification process in the United Republic of Tanzania has been completed.
The potential for increased Canadian investment in Tanzania is important, especially in the mining, oil and gas, power infrastructure, mining equipment and services, and transport sectors. Total cumulative mining assets in Tanzania were valued at $2.3 billion in 2011.