Outward FDI from Canada and Its Policy Context

Abstract

Canada was a major net importer of foreign direct investment (IFDI) prior to 1996. The stimulus for the surge in Canada's outward FDI (OFDI) came from profitable investment opportunities abroad. Canada has significantly diversified its OFDI away from the United States over the past 20 years. The financial crisis significantly affected Canada's FDI outflows, but OFDI seems to have rebounded in the second half of 2009. While Canadian investment has historically gone mainly to developed countries, recent changes in government policies seem to suggest that Canada is looking to build closer ties with developing countries as well. Canada has a longstanding commitment to multilateral cooperation and actively supports the World Trade Organization (WTO) framework as a way to promote international trade and investment. At the same time, Canada continues actively to negotiate foreign investment promotion and protection agreements (FIPAs).

Key words:

• Canada
• outward FDI
• policy development

Additional information

Notes on contributors

Ram C. Acharya

Ram C. Acharya is a Senior Economist and Someshwar Rao is the Director of Productivity and Competitiveness Analysis at Industry Canada. Subrata Bhattacharjee is the Co-Chair of the National Trade & Competition Group at Heenan Blaikie LLP and a Partner at that firm. Leila Wright is an Associate in the National Trade and Competition Group at Heenan Blaikie LLP. The authors wish to thank Jay Dixon, Joanne Fleming, Steve Globerman, Walid Hejazi, and Annette Ryan for their helpful comments on this Profile. The views expressed by the authors of this Profile do not necessarily reflect those of Industry Canada, the Government of Canada or Columbia University, its partners and supporters.