Here is updated presentation on FIPA and why Canada is working hard with countries like China to attract both FDI as well as open up new opportunities for Canadian goods and services.

1. The Role of FIPA with
Foreign Direct Investment–
June 2017
BY: PAUL YOUNG, CPA, CGA
DATE: JUNE 14, 2017

2. Paul Young - Bio
• CPA, CGA (1996)
• Financial Solutions (FOPM/FPM)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Advance Technology and Market
Entry
• SME – Supply Chain Management
• SME – Business Strategy and
Restructuring
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 FIPA
 Globalization
 Foreign Direct Investment
 Lawsuits

4. Disclaimer
 This presentation is on view of trade data for Canada. It is up to individuals to do
their own research as part evaluating government polices and their impact on the
markets.

5. Paul Young - Presenter
Bio
 CPA/CGA
 25 years of experience in Academia, Industry and Financial solutions
 Youtube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

6. What is FIPA?

7. Why is FIPA Important

8. Globalization - Defined

9. Foreign Direct Investment
 A foreign direct investment (FDI) is an investment made by a company or entity
based in one country, into a company or entity based in another country. Foreign
direct investments differ substantially from indirect investments such as portfolio
flows, wherein overseas institutions invest in equities listed on a nation's stock
exchange. Entities making direct investments typically have a significant degree of
influence and control over the company into which the investment is made.
Open economies with skilled workforces and good growth prospects tend to
attract larger amounts of foreign direct investment than closed, highly regulated
economies.

10. Why is FDI important to Canada
 Canada has limitation on access to capital (small market)
 Foreign companies want to invest in countries with stable government
 Foreign companies want to expand their business opportunities as way to provide
better shareholder value.
 Shareholder value impacts the stock market which then impacts pension funds

11. FDI – Inflow/outflow Canada
 Stats Canada

12. Government Policies
 Trade/Investment Deals
 Regulatory Environment (Environmental assessments, health and safety, etc.)
 Innovation funds (Aerospace, Automotive, Forestry, Southern Ontario
Development and other funds)
 EDC (Export Development Corporation)
 Provides funding/support to export driven companies

13. Lawsuits/FIPA/Trade
 In two decades Canada has lost lawsuits, however, the money is peanuts in terms of the overall
spending. http://www.huffingtonpost.ca/2015/01/14/canada-sued-investor-state-dispute-
ccpa_n_6471460.html. I quoted Huffington Post as way to show the LPC bias towards the lawsuit.
This article says 20 years as such it goes to show with all the trade over the past 20 years the value
of the lawsuits is peanuts. Let’s say exports are $400B on average for 20 years then that means 8
trillion of exports and only $175M in lawsuits. I think that is a pretty good loss ratio, right?

14. Lawsuits/FIPA/Trade
 http://www.cbc.ca/news/canada/calgary/transcanada-lawsuit-keystone-xl-pipeline-1.3392446
 http://calgaryherald.com/business/energy/sunshine-oilsands-vows-to-contest-70m-investor-
lawsuit

15. Liberals and CPC
 http://www.canadianprogressiveworld.com/2013/04/23/betrayal-trudeau-and-the-liberals-voted-for-harpers-sellout-fipa/
Justin Trudeau and the Liberals abandoned us during our greatest
hour of need. And if there’s a greater act of political betrayal, please
let me know.
On Monday, Trudeau and the Liberals voted with the Harper
Conservatives to kill an NDP motion to stop Harper’s sellout Canada-
China Foreign Investment Promotion and Protection Act (FIPA) from
becoming law.

16. Ring of Fire / China
 https://www.theglobeandmail.com/news/politics/first-nation-chief-plans-china-trip-to-discuss-
ring-of-fire-rail-line/article34857617/
Globe & Mail – April 28, 2017
Bruce Achneepineskum is heading to China next month to hear about a $4-billion plan
that includes building a rail line to the Ring of Fire through his community’s traditional
territory.
The Chief of Marten Falls First Nation, a remote fly-in community of 770 registered people
of which only about half live on the remote Northern Ontario reserve, says he’s interested
in the latest overture from a small mining company with big plans.
KWG Resources Inc. announced this week that it is working with Marten Falls First Nation
on an equal partnership to develop the Ring of Fire’s chromite deposits, which are used
to make stainless steel. China is the world’s leading producer of stainless steel and the
company hopes that Chinese investors will be willing to finance the $4-billion rail line and
mining project in order to secure a long-term, reliable source of chromite

17. Minister of Natural Resources/China
CBC – June 8, 2017 - http://www.cbc.ca/news/canada/calgary/china-investment-oilsands-jim-carr-
1.4152520
As Natural Resources Minister Jim Carr explores avenues in China to expand
foreign investment in the oilsands, his government is being accused of allowing
Chinese takeovers of Canadian firms with little regard for national security.
Carr is on a five-day trade mission to China, pursuing partnerships and new
markets for the energy and forestry sectors. The trip comes as the two countries
pursue exploratory free trade talks, and the federal Liberals adjust their foreign
policy to confront the headwinds of Donald Trump's "America First" doctrine.