./.WORLD TRADE
ORGANIZATIONWT/WGTI/W/97
9 March 2001
(01-1152)
Working Group on the Relationship
between Trade and InvestmentOriginal:  English
COMMUNICATION FROM CANADA
The following communication, dated 7 March 2001, has been received from the Permanent
Mission of Canada.
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Foreign Investment Barriers:  A Report by the Canadian Chamber of Commerce
in Partnership with Industry Canada
1. Canadian business has become increasingly more internationally-oriented in recent years.
Over the past five years, Canadian Direct Invest ment Abroad increased by over 75% to C$257 billion
in 1999 - surpassing Foreign Direct Investment in Canada for the fourth consecutive year.  Inward
investment has also grown dramatically, from C$131 billion in 1990 to C$240 billion in 1999.  This
significant growth highlights the need to ensure that the international policy environment is stable andthat international investments are protected.
2. The Canadian government has signalled its continuing commitment to consultations with
Canadian stakeholders to assist in defining Canadian interests and priorities for the international
investment agenda.  The views of the business community are an integral part of this process.
3. As an important contribution to this consultations process, the Canadian Chamber of
Commerce, in partnership with Industry Canada, developed a questionnaire to gather information, in a
systematic way, on barriers faced by Canadian industry in doing business in international markets.
4. The results were presented in a Report on Foreign Investment Barriers released on March 31,
2000.  Copies can be obtained from the Canadian government’s (Strategis) investment website at
http://strategis.ic.gc.ca/SSG/bi18496e.html .
5. The report, based on questionnaire responses from 71 Canadian Chamber of Commerce
member companies, provided the Canadian government with an inventory of more than 110 specificrestrictions that have been faced by these comp anies when investing abroad.  The report provided
detailed information on:
- The kinds of impediments/barriers encountered;
- The region involved and industry affected;
- The transparency of the implementation of the barrier;
- The degree of restriction to Canadian investors; andWT/WGTI/W/97
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- The importance of safeguarding Canadian investments abroad.
According to the report:
- 28% of respondents have faced restrictions in one form or another over the
past 5 years;
- 38% of the barriers resulted in the investment being cancelled or suspended;
- 43% resulted in the terms of the investment being altered;
- 71% of the identified barriers were encountered in countries outside of the
OECD;  and
- 56% of restrictions involved transparent barriers
- 19% of the restrictions involved non-transparent barriers;
- 25% of the restrictions involved discretionary decision making on the part of
the host government.
6. The Canadian Chamber of Commerce concluded that, for Canada, with an
internationally-oriented economy, the creation of a commercial environment based on rules,
transparency, openness and predictability is critical for future economic prosperity.  Canada is pleased
to share the findings of this report with our colleagues in the WTO Working Group on the interactionbetween Trade and Investment.
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