On March 7, the Honourable François-Philippe Champagne, Canada’s Minister of International Trade, met with His Excellency Tsedev Dashdorj, Mongolia’s Minister of Mining and Heavy Industry, on the sidelines of the annual convention of the Prospectors and Developers Association of Canada (PDAC) in Toronto to jointly announce that the long-awaited Canada-Mongolia Foreign Investment Promotion and Protection Agreement (FIPA) has entered into force, following its recent ratification by the Canadian Parliament.
This agreement will lead to a more transparent and predictable regulatory environment for Canadian investors. It sets out a framework of legally binding rights and obligations that will protect Canadian investors in Mongolia, and vice-versa. Strong reciprocal protections in the FIPA will help Canadian and Mongolian companies deepen commercial ties with confidence and spur job creation. Canadian Ambassador Ed Jager and Mongolian Foreign Minister Ts. Munkh-Orgil signed the FIPA on September 8, 2016 in Ulaanbaatar after over six years of negotiations; Mongolia’s parliament, the State Great Khural, ratified the agreement late last year. The US and Mongolia signed a Bilateral Investment Treaty (BIT) on October 6, 1994, which entered into force on January 1, 1997
Mongolia is one of 25 nations designated as a “country of focus” for Canada’s development funding, with seven operational projects worth $40 million over five years, 2015 to 2020, promoting sustainable economic growth and democratic development. Canada is the second largest foreign investor in Mongolia, largely in the mining sector. In 2015, Statistics Canada estimated Canadian investment in Mongolia at approximately $6.4 billion.
Click here for full text of Canada-Mongolia FIPA 2017
Click here for full text of US-Mongolia BIT 1997