1. OTN BARBADOS OFFICE
1st Floor, Speeedbird House, Bridgetown BB11121,
n
Ref:
R 31000.3/6-2
2010-07-18 6)
BARBADOS
Tel: (246 430‐1670 Fax: (246) 228
8‐9528
Emai barbados.office@crnm.
il: .org
OTN JAMAICA OFFICE
2ND Floor, PCJ Building, Kingsto 5,
on
JAMAICA
Tel: (876 908‐4242 Fax: (876) 754
6) 4‐2998
Ema jamaica.office@crnm.o
ail: org
Trad B ef
T de Brie
CA
ARICOM
M-Cana Inve
ada estmen Over
nt rview
Globa and Regional Context
al l
The purpose of this brie is to provide Me
ef ember States with a quick referenc on the investm performance between CARIC
h ce ment e COM
and Ca anada which can hopefully assis with any natio consultations on possible in
n st onal s nvestment provisions in a Trade and
Development Agreemen (TADA). For those CARICOM M
nt Member States in on attracting FDI from countr including Can
ntent g ries nada,
the glob situation is mo competitive as the pool of glob funds is not pro
bal ore s bal ojected to expand until next year. G
d Global FDI flows have
been seeverely affected worldwide by the e
w economic and financial crisis.
Inflows were expected to fall from $1.7 t
t trillion to below $ trillion in 200 with a slow re
$1.2 09, ecovery in 2010 (to a level up to $1.4
trillion) and gaining mom
mentum in 2011 (approaching $1. trillion). In 2008, FDI inflows we uneven amon the sub region of
.8 ere ng ns
Latin America and the Caribbean: it was u by 29% in Sou America and d
C up uth entral America an the Caribbean.
down by 6% in Ce nd
Figure 1: Canadian inwa and Outward FDI Stock (CDN$
ard $mn)
Source: CANSIM Database Retrieved from w
e. www.statcan.gc.ca J 15, 2010
July
Canada continues to be a leading global investor as up to 2009, Canada e
a e o exported CDN$59 bn in FDI Sto Canada is also a
93.3 ock.
dynamiic global investor as between 198 and 2009, the stock of oversea FDI expanded by 9.9% per an
r 87 e as d nnum. Canada w a
was
CA
ARICOM
M-Canada Trade and Dev
a velopme Agree
ent ement

2. Pa 2
age www.crnm.or
w rg
major gglobal recipient of FDI attracting CDN$549.4 bn FD stock as at 200 Canada was also a dynamic g
f DI 09. global recipient of FDI
f
with the inward stock of FDI increasing by 7.7% annually b
e y between 1987 and 2009 (see figure 1).
d e
CARIC
COM-Canada In
nvestment Perf
rformance
CARICOM continues to be an important destination for Ca anadian FDI stoc attracting almo 10% of Canad total outward FDI
ck, ost da’s d
stock a at 2009. Howev this outturn w not reciproca as CARICOM Investors found a home in Canada for CDN$470 m of
as ver, was al, a mn
FDI sto up to 2009 which represente the lowest out
ocks w ed tturn since 2003 (see figure 2). Th signals that C
his CARICOM Investm ment
strategy may not be ad
y dequately success in presenting the region as a springboard into Canada for ext
sful g o ternal parties, utillising
strategiic locational adva
antages including market access and investor pro
g otection. This investment performance with CARIC COM
being a net importer of capital in a comp
c petitive global env
vironment sets the context for neg
e gotiations of a Tra and Developm
ade ment
Agreem between CA
ment ARICOM and Can nada.
Figure 2: CARICOM-Ca
anada Investmen Performance (CDN$mn)
nt
Source: CANSIM Database Retrieved from w
e. www.statcan.gc.ca J 15, 2010
July
As at th end of 2009, th Member States attracting new in
he he s nvestment (FDI s
stock) from Canad were:
da
• The Bahamas (CDN$ 11.7bn);
• Barbados (CDDN$40.8bn); and
• Trinidad & Tob
bago (CDN$2.3bbn).
Howeve cumulatively, between 1987 and 2009, the Me
er, ember States attra
acting FDI stock included the thre aforementione as
ee ed
well as Jamaica and Guyana. Two of th leading host countries in CAR
s G he RICOM for Canad investment are those with w
dian which
Canada has negotiate Bilateral Inves
a ed stment Treaties(BITS), specifically, Trinidad and Tobago and Ba arbados. Addition
nally,
Canada has negotiated double taxation a
a avoidance treaties with Barbados (1980), Jamaica (1978) and Trinida & Tobago (199
s ad 95).
The Ca anadian statistica authority (STAT
al TCAN) does not have a record b between 1987 an 2009 of FDI s
nd stocks in Antigua and
a
Barbud St. Kitts and Nevis; Dominica Haiti; Grenada Belize and Su
da; a; a; uriname. Therefo CARICOM L
ore, LDCs may be ha aving
difficulty attracting Cana
y adian investments and the negotiiations of the TA could provide a timely opport
s, ADA e tunity for the LDC to
Cs
signal t capacity to attract Canadian iinvestment. Addit
their a tionally, Canada m be investing in CARICOM ind
may g directly, through o
other
third coountries, and as such, the data may reflect the cou
s untry of origin of the investment fu
unds, rather than the nationality o the
n of
investor. Member States are invited to su
s ubmit any more ddetailed data they may have at the disposal on Ca
y eir anadian investme in
ent
their terrritories. The Mem States that w more dynam at attracting F from Canada were again The B
mber were mic FDI Bahamas (9% gr rowth
per ann between 198 and 2009); Bar
num 87 rbados (22% grow per annum) a Trinidad and T
wth and Tobago (18% gro p.a.).
owth
CARICOM
C M-Canada Trade and Dev
a velopme Agreement
ent

3. Page 3 www.crnm.org
Interestingly, the Region’s private sector can seek to utilise the provisions of the TADA strategically in two ways: firstly hosting
Canadian investors interested in Joint ventures, or acquiring highly leveraged assets in sectors such as those listed in the following
section; and secondly, attracting export-oriented investments from Europe and Latin America.
Canada Sectoral Investment Performance
Up to 2009, over 40% of Canada’s Outward FDI stock was invested in the finance and insurance sector. Other dominant sectors
include Mining and Oils and Gas extraction (15% of Outward FDI stock), and Management of companies and enterprises (10.3%
of outward FDI stocks).
Interestingly however, the fastest sectors for Canadian outward FDI stock included many sectors of interest to CARICOM, and
these sectors could be liberalised within the TADA framework. Between 1999 and 2009, the most dynamic sectors for Canadian
Outward FDI included:
• Furniture and related product manufacturing (29% growth in outward FDI per annum);
• Utilities (23.3% growth p.a.);
• Support activities for mining and oil and gas extraction (20.2% growth p.a.);
• Agriculture, forestry, fishing and hunting (17.6% growth p.a.);
• Clothing manufacturing (23.5% growth p.a.);
• Food manufacturing (8.2% growth p.a.); and
• Chemical manufacturing (11% growth p.a.).
Up to 2009, the major sectors in which Canada has been hosting FDI included: Oil and gas extraction; primary metals production;
wholesale trade; finance and insurance; petroleum and coal products manufacturing; management of companies and enterprises;
and chemical manufacturing. Sectors that Canada has been contracting its FDI stock between 1999 and 2009 included textile
product mills; paper manufacturing; computer and electronics manufacturing; and real estate. These areas could prove to be
difficult for CARICOM investors to penetrate in the Canadian market.
This examination of the sectors in which Canada is investing internationally is important to inform the sector interests in the
negotiation of the CARICOM-Canada TADA. For example, CARICOM Member States could seek to encourage investments in
the furniture industry by liberalising that industry to Canadian investors in the negotiations of the TADA. Canada is retreating from
international investment in sectors including construction; plastics and rubber products manufacturing; and Information and
communication technologies (ICT), as there was significant contraction in outward FDI stock between 1999 and 2009. Based on
the foregoing, these sectors may prove difficult to attract investors from Canada into the region.
CARICOM-Canada Trade and Development Agreement