TORONTO, Sept. 12, 2014 /CNW/ - The Toronto Financial Services Alliance (TFSA) welcomes the federal government's decision to ratify the Canada-China Foreign Investment Promotion and Protection Agreement (FIPA).
"Canada and China have a strong and growing economic relationship which includes the financial services sector," said Janet Ecker, President and CEO of the TFSA. "Some of our financial companies have been involved with China for literally decades and these business relationships are growing."
"For example, Manulife Financial created China's first joint venture in life insurance in 1996. Bank of Montreal opened their first representative office in China in 1982. The TMX Group opened their first office in Beijing in 2011," she said. "This agreement will help support the growth of these business opportunities between our two countries by providing stronger protection and a more predictable, transparent investment environment for Canadian companies."
Since 2009, trade between Canada and China has grown to over $73 billion, an increase of 60 percent. Canada's financial industry itself, headquartered in Toronto, is becoming a bigger global player. The country is a major net exporter of financial services capital. Roughly half of the Canadian stock of outward foreign direct investment originates in the financial services sector. And outward foreign direct investment has risen by 70% over the last decade.
The TFSA is also promoting efforts to establish Canada as a trading hub for the Chinese currency, the Renminbi (RMB), another important step in supporting increased business and trading opportunities for Canadian financial and other companies.
"The certainty and stability provided by the investment rules in FIPA can only help to strengthen our economic relationships," she said.
With Canada's financial industry growing its global footprint, the federal government's focus on expanding international trade and investment agreements, such as FIPA and the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) are welcome, Ecker said.
About the TFSA:
The Toronto Financial Services Alliance is a public/private initiative whose mandate is to enhance and promote the long-term competitiveness of Toronto as a top ten global financial services centre. Its membership encompasses core financial services companies – banks, brokerages, investment fund managers, insurance companies – as well as partner sectors – accounting, law and education. The TFSA was created in 2001 by the financial services industry, in partnership with the City of Toronto. With the federal and provincial governments now joining the partnership, TFSA has created the Global Risk Institute in Financial Services to leverage the sector's reputation in risk management and the Centre of Excellence in Financial Services Education to capitalize on the region's talent advantage. For more information, please check our website at www.tfsa.ca.
SOURCE: Toronto Financial Services Alliance
For further information: Marta Andradzka, [email protected]