Ottawa, February 27, 2020 — Canada has become a top international jurisdiction for European ICT-centred Foreign Direct Investment (FDI), according to a new report by the Information and Communications Technology Council (ICTC).
Canada’s strong consumer purchasing power, availability of skilled talent, trade openness, and proximity to U.S. and Latin American markets, in combination with the 2017-ratified Canada-European Union Comprehensive Economic and Trade Agreement (CETA)—which eliminates approximately 98% of the duties between Canada and the EU, and provides supports for cross-border investment—has earned the country an almost identical “investment attractiveness score” to that of the U.S., and far above Mexico.
While Canada has historically been successful in attracting resources-sector investment (notably for oil and gas development) from the EU, it needs to do a better job showcasing Canada’s digital economy, building its brand, and sharing its tech success stories and breakthroughs internationally.
Many of the EU tech multinationals interviewed for this study, A New Partnership with the EU: CETA and Digital FDI Opportunities for Canada, said that Canada lacked “visibility.” Only a few of these EU business leaders knew of Canada’s numerous regional tech ecosystems, innovative industry initiatives and government supports for building a digital economy.
A New Partnership with the EU: CETA and Digital FDI Opportunities for Canada examines both the opportunities and challenges for attracting ICT-centred FDI investment into Canada. It provides a detailed snapshot of Canada’s tech ecosystems from coast to coast and the supports available for further growth.
Some of the key findings include:
- Many ICT-centred EU businesses are not aware of how CETA could benefit them as investors;
- EU businesses expressed a strong interest in CETA’s labour mobility provision;
- Canada’s strength in digital-health ecosystem and investments in research and development make life-sciences and digital industries especially attractive for EU investment.
“The European Union boasts an advanced economy of around $18.75 trillion USD per year,” says Namir Anani, ICTC President & CEO. “Seizing the full potential of the CETA agreement by attracting FDI into Canada will be critical for expanding the domestic markets, heightening the innovation factor, and creating jobs.”
ICTC is a not-for-profit national centre of expertise for the digital economy. With over 25 years of experience in evidence-based research, practical policy advice, and innovative capacity building solutions, ICTC’s goal is to strengthen Canada’s digital advantage in the global economy.
For media inquiries or further information about “New Partnership with the EU: CETA and Digital FDI Opportunities for Canada,” please contact Paul Stastny at [email protected] or 403.351.0138 Ext. 823.
A copy of the study can be accessed here.