Final Environmental Assessment of the Canada-Jordan FIPA

This report outlines the results of the Final Environmental Assessment (EA) of the Canada-Jordan Foreign Investment Promotion and Protection Agreement (FIPA) negotiations. Negotiations for the Canada-Jordan FIPA were concluded successfully in June 2007. Canada’s FIPA model served as the basis for the negotiations. The Agreement was signed on June 28, 2009 in Amman, Jordan and the full text of the Agreement is available on the Canada-Jordan FIPA webpage.

FIPA negotiations are subject to the 2001 Framework for Conducting Environmental Assessment of Trade Negotiations. The process focuses on the likely economic effects of trade and investment negotiations and their likely related environmental impacts in Canada. The process involves three phases – the Initial EA, Draft EA and Final EA. The middle phase, also known as the Draft EA, is not undertaken if the FIPA is not expected to result in significant environmental impact in Canada. Public consultations are an integral part of the EA process.

An ARCHIVED - Initial EA of the Canada-Jordan FIPA was completed in April 2008. The Government of Canada opened the Initial EA for public comments from February 18 to May 27, 2008. The Initial EA was circulated for comment from the Environmental Assessment Advisory Group from March 4 to March 12, 2008.

A Draft EA was not carried out, as the economic effects and environmental impacts in Canada of the Canada-Jordan FIPA are not expected to be significant. The purpose of the Final EA is to document the outcome of the negotiations in relation to the EA process, i.e. to confirm the findings of the previous analysis based on the concluded negotiations.

The findings of this Initial EA were communicated to Canada’s lead negotiator and were taken into consideration during the review of the agreement prior to its formal signature and ratification. These findings indicated that significant changes to investment flows into Canada were not expected as a result of these negotiations.

The results of the Final EA of the Canada-Jordan FIPA negotiations confirm the findings of the Initial EA. The economic effects and environmental impacts in Canada of the Canada-Jordan FIPA are not expected to be significant.

No new issues arose during the latter stages of the Canada-Jordan FIPA negotiations and with respect to potential environmental impacts in Canada. The environment-related provisions of the Canada-Jordan FIPA are identical to those of Canada’s FIPA model.

Mirroring Canada’s model, the final Canada-Jordan FIPA includes general exceptions with respect to the protection of human, animal or plant life or health, as well as the conservation of exhaustible natural resources. These safeguards, found in Article 10(1), are based on those contained in GATT Article XX and GATS Article XIV.

As per the FIPA model, Article 11 of the agreement contains a clause on “not lowering standards”, whereby the signatories recognize that it is inappropriate to encourage investment by relaxing domestic health, safety of environmental measures. In the event that a Party offers such encouragement, the other Party may request consultations.

Finally, and identical to the model, Annex B.13(1) of the Canada-Jordan FIPA provides that regulations designed and applied to advance legitimate public welfare objectives, such as those respecting health, safety and the environment, do not constitute an indirect expropriation.

Comments on this report may be sent by email, mail or fax to:

Consultations and Liaison Division (BSL)
Final Environmental Assessment of the Canada-Jordan Foreign Investment Promotion and Protection Agreement (FIPA)
Department of Foreign Affairs and International Trade Canada
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario
K1A 0G2

Fax: (613) 944-7981
Email: consultations@international.gc.ca

Any comments received will be circulated to the lead negotiator and the Government of Canada’s EA of Trade Steering Committee in order to inform future EAs of trade and investment negotiations and other relevant policy development and decision-making processes.