Trade Lawyers Blog | Wednesday, January 09, 2008
Canada Announces Start of Bilateral Investment Treaty Negotiations with Mongolia
By: Cyndee Todgham Cherniak
On January 9, 2008, Canada announced that it will commence negotiations of a bilateral investment treaty with Mongolia. Canada calls its bilateral investment treaties by the title Foreign Investment Promotion and Protection Agreement (FIPA).
This is good news for Canadian mining companies (and other Canadian companies) which have interests in Mongolia. Some mining companies in Mongolia are having difficulties obtaining licenses and some who have licenses are having the licenses revoked. A FIPA with Mongolia will go a long way to prevent such problems in the future. As a result, it is importnat for Canadian companies with interests in Mongolia (or who see new opportunitries in Mongolia) to get proactively involved in the FIPA negotiation process. A FIPA is like any other international agreement - it is a contract between countries and there are opportunities to (1) resolve or reduce existing problems and (2) provide clear rules for future activities. There may be commercial advantages to getting involved and preparing for the day when the FIPA is signed.
To obtain a copy of the announcement of the FIPA negotiations with Mongolia, please click on this link.