Tag Archives: investment

How Canada Can Make Faster Major Project Decisions

June,2024 – Lengthy delays and regulatory uncertainty is deterring investment in major infrastructure projects in Canada, according to a new report from the C.D. Howe Institute. In “Smoothing the Path: How Canada Can Make Faster Major-Project Decisions”, authors Charles DeLand and Brad Gilmour find that Canada’s regulatory approval process is creating high costs for investors and preventing critical projects in hydrocarbon production, mining, electricity generation, electricity transmission, ports and other infrastructure from being built.

Sectors that have historically driven business investment and productivity in Canada—mining, oil and gas—are most affected by complex regulatory procedures.

While investments in these sectors have supported high incomes for workers and high revenues for government in the past, they are now trending downwards. “Canada is struggling to complete large infrastructure projects in a reasonable time frame and at a reasonable price and the proposed amendments to the Impact Assessment Act (IAA) are insufficient,” says Gilmour.

  • Canadians have been debating whether Canada’s regulatory and permitting processes strike the right balance between attracting investments in major resource projects and mitigating potential harm from those investments.
  • These regulatory processes typically apply to complex and expensive projects, such as mines, large hydrocarbon production projects (oil sands, liquefied natural gas [LNG], offshore oil), electricity generation (hydroelectric dams, nuclear), electricity transmission (wires), ports and oil or natural gas pipelines. These projects often involve multiple levels of jurisdiction and can prove particularly slow to gain government approval.
  • Canada struggles to complete large infrastructure projects, let alone cheaply and quickly. We propose improving major project approval processes by: (a) ensuring that provincial and federal governments respect jurisdictional boundaries; (b) leaving the decision-making to the expert, politically independent tribunals that are best positioned to assess the overall public interest of an activity; (c) drafting legislation with precision that focuses review on matters that are relevant to the particular project being assessed; and (d) confirming the need to rely on the regulatory review process and the approvals granted for the construction and operation of the project.

The Full Report

Investor-State Disputes Proliferating, Rules Remain Critical for Canada Business Investment

May 9, 2023 – Investor-state disputes are proliferating around the globe as business investors seek redress for government actions they deem unfair or contrary to investment agreements, according to report from the C.D. Howe Institute. In “Investor-State Disputes: The Record and the Reforms Needed for the Road Ahead,” author and C.D. Howe Institute Senior Fellow Lawrence L. Herman reviews the record of investor-state dispute settlement (ISDS) procedures, the criticisms directed at them, and the reforms required.

“Despite concerns and criticism, ISDS procedures in international investment agreements are an important development in global governance that should continue to be a part of our international fabric,” says Herman.

Herman examines both Canadian and global cases involving ISDSs, which give private parties the right to bring binding arbitration against governments under International Investment Agreements (IIAs). These rights can be invoked when investors allege a lack of fair and equitable treatment, discrimination or expropriation without adequate compensation contrary to a country’s treaty obligations.

“ISDS has become a significant feature for investments, particularly into developing countries in many parts of the world,” according to Herman.

“However, because of the rights given to private parties, these agreements have become increasingly controversial – especially in an era of increasingly expanding governmental measures on climate change, sustainability, human rights and other issues impacting foreign investors and their investments in one way or another.”

In response to these concerns, multilateral, regional and bilateral efforts are making continuing improvements to ISDS mechanisms when it comes to efficiency, transparency and aspects such as permanent appointments and a system of appeals.

“While some countries have embarked on a program of terminating their bilateral investment agreements, these agreements will continue to remain as a part of the international fabric in many parts of the globe,” says Herman. “They are an important development in global governance and, even if not perfect, they not going to disappear in spite of concerns and criticisms.”

Creating permanent rosters of tribunal members as well as adding an appellate review processes to existing IIAs would help improve ISDS procedures. Short of this, Herman says ongoing efforts could include: i) promoting model arbitration clauses to reduce legal uncertainty and enhance consistency and predictability of outcomes; ii) developing codes of conduct and best practices for adjudicators plus rules to ensure their independence; and iii) making sure appointments to tribunals are of highest quality. Governments should also publicly support the value of third-party arbitration as an objective and neutral process that leads to peaceful resolution of differences, he adds.

Ultimately, investment protection treaties are about risk mitigation with host states bound by treaty to respect obligations of fair and equitable treatment and other rule-of-law standards and providing investors with a degree of assurance, says Herman. “While there are legitimate questions about the process and whether and to what degree investment treaties accomplish these objectives, these suggestions can assist in providing ways forward,” he concludes.

There are some 2,500 international investment agreements (IIAs) in force around the world, whether as stand-alone treaties or incorporated into bilateral or regional free trade agreements (FTAs). They are a significant feature of the international business scene.

A main feature of these agreements is to allow foreign investors to invoke binding arbitration where it is alleged that the host governments have breached fair and equitable treatment and other treaty obligations towards the investors. This is known as Investor-State Dispute Settlement or “ISDS”.

The process gives foreign investors comfort that if things go wrong in host countries, they have recourse to neutral, third-party dispute resolution. It thus provides important elements of risk reduction for foreign investors and their investments, notably aiding the flow of capital from industrialized countries to the developing world.

There has been dramatic escalation of investor arbitration claims over the last two decades. This makes it timely and useful to review the situation, looking at the value of ISDS as well as the criticisms that have emerged over the years. The conclusion is that IIAs and the arbitration process are valuable parts of the corpus of international order and will remain an integral part of the international business scene for the foreseeable future. The issue facing governments, therefore, is how to respond to criticisms by improving, as opposed to abandoning, the ISDS process. This paper suggests some pragmatic ways forward.

A Canadian company, First Quantum Minerals, and the government of Panama are reported to have settled a long-standing tax dispute allowing the company to resume operations at the Cobre Panama mine in that country. Earlier reports were that if the dispute was not resolved by negotiation, the company would invoke arbitration rights under the Canada-Panama Free Trade Agreement.

Had the dispute proceeded, it would have been another example of hundreds of arbitrations that have proliferated around the globe, initiated under various international investment agreements (IIAs) that give private parties the right to bring binding arbitration against governments under Investor-State Dispute Settlement ( ISDS) procedures. Those rights can be invoked, for example, where investors allege lack of fair and equitable treatment, discrimination or expropriation without adequate compensation contrary to that country’s treaty obligations.

In addition to investment treaties, numerous free trade agreements incorporate separate investment dispute settlement provisions, including the former North American Free Trade Agreement (NAFTA); the Canada-EU trade agreement (CETA); the Trans-Pacific Partnership (CPTPP) Agreement; and bilateral free trade agreements, such as those between Canada and countries like Chile and South Korea, among others.

As a consequence, ISDS has become a significant feature of the ground rules for investments in many parts of the world, particularly those made into developing countries. Because of the rights given to private parties, these agreements have become increasingly controversial, especially in an era of expanding governmental measures on climate change, sustainability, human rights and more that impact foreign investors and their investments.

In light of these developments, it is useful to briefly update the ISDS record with regard to Canada, look at what lessons might emerge, both in the global and the Canadian context, and suggest some elements to monitor as we go forward.

Criticisms Of ISDS Agreements

As investor arbitrations have proliferated, so have the criticisms, making ISDS one of the more controversial aspects of global governance. Here are some of the main ones:

  • IIAs have given private companies broad rights to challenge host-country actions that can fall within legitimate fields of public regulation, especially now in an era of decarbonization and other national crises like COVID 19.
  • The process involves one-way litigation, with no corresponding right of host countries to bring arbitration cases against investors for disregarding laws, practices and standards of business conduct.
  • The growth of third-party financings of investor claims has stimulated, or at least encouraged, the initiation of ISDS cases.
  • Investment agreements bypass the customary international law norm that requires claimants to first exhaust local remedies before bringing an international claim against a host country.
  • The ISDS structure is defective because its ad hoc tribunals – put together to hear a particular case – make long-term, binding decisions affecting laws or policies enacted for the public interest.
  • Arbitrators’ decisions are final and binding with no avenue of appeal, whether on errors of fact or of law.
  • Because of its ad hoc nature, the system lacks institutional continuity. Public confidence in the system suffers.
  • Arbitrators are appointed from a small — if not closed – pool of international lawyers who are free to act for private interests as counsel in other cases, leading to appearances of conflict and adding to diminished public confidence in the process.7

There are answers to these critiques but the over-arching response, as alluded to above, is that resolving investor-state disputes based on legal norms within an accepted procedural framework remains a significant achievement in the progressive development of international law. As observed in one analysis,

“During the last decade a number of the shortcomings have indeed been addressed and remedied. It is reasonable to assume that this has been done – at least partially – based on the realisation that investment treaty arbitration is the most efficient and reliable dispute settlement mechanism for disputes between foreign investors and host States. There is simply no better, realistic alternative.”8

As already mentioned, ISDS in its various manifestations provides an important element of stability and risk insurance when investing in jurisdictions where legal rules may not be mature or respected, aiding the flow of capital to developing countries and thus presumably helping to meet the international community’s aid and development goals. The system may not be perfect, but efforts are afoot to improve it at many levels.

For the Silo, Lawrence Herman/C.D. Howe Institute.

The author thanks Daniel Schwanen, Charles-Emmanuel Côté, Rick Ekstein, Ari Van Assche, Gus Van Harten and anonymous reviewers for comments on an earlier draft. The author retains responsibility for any errors and the views expressed.

Celebrity Homes: Andy Warhol Home Sold For $50 Million USD

Warhol Home InteriorsMontauk, New York was celebrating its biggest estate sale ever after the closing on the 5.7-acre beachfront estate at $50 million USD that pop artist Andy Warhol bought in 1972 for $225,000 USD.

The most recent owner of the compound was CEO of J. Crew, Mickey Drexler, who bought it in 2007 for $27 million USD. He listed it in 2015 for $85 millionUSD that included a 24-acre horse farm and equine center, which the buyer, Adam Lindemann, opted out of the purchase. Lindemann is the founder of the Venus Over Manhattan Gallery and a major collector of Warhol’s works making the property’s history especially significant for him.

Warhol’s first gig out of art school was as a fashion illustrator for several of the top women’s magazines. With the money acquired from his illustrations, he purchased a large loft on New York’s West Side and opened the Factory, where he turned toward creating industrial art. It wasn’t long before the Factory and Andy were attracting like-minded modernists from hippies to wannabe journalists and actors to drag queens and drug addicts. It was the start of New York’s avant-garde scene where Warhol held court. In addition to his painting, he branched out into music, film and journalism where he met Paul Morrissey who became the director of some of Warhol’s early films.

Warhol Interior Large1

In 1972 when Warhol’s popularity and success were peaking, he and Morrissey decided to invest in property in the Hamptons and purchased the family fishing camp of the Church family of Arm & Hammer Baking Soda fame. The estate includes a 3,800-square-foot main house and five cottages completely hidden from public view with wide beaches and ocean views. Totaling almost 15,000 square feet with nine bedrooms and twelve baths, Drexler had it all meticulously restored by architect Thierry Despont.

Warhol’s stream of celebrity guests and renters put Montauk on the international map. Frequent guests included Liza Minnelli, Liz Taylor, John Lennon, Mick Jagger, Jackie Kennedy and Lee Radziwill. The parties were legendary and stories of happy days idled away on the Hamptons’ beach are recounted in many celebrity biographies.

Warhol Interior Large2

Even though the Warhol home sale set a record at $50 million USD, his most famous paintings such as “Eight Elvises” and “Silver Car Crash” have sold for $100 million USD and higher. The listing agent was Paul Brennan of Douglas Elliman Real Estate in Montauk, New York. Visit here for more information.

Supplemental– David Bowie as Andy Warhol in Basquiat

4 Simple Situations That Call For Investing In New Residential Windows

There are plenty of reasons to consider replacing your current residential windows with new ones. All it really takes is determining that making repairs would be more costly and ultimately less satisfying than investing in new Oshawa windows. Outside of that, why else would you take on this type of project? Here are four scenarios to consider. One of them may relate to your current circumstances.

You’re Buying A First Home

Purchasing a first home is exciting, even if the place could use some work. One of the benefits of new windows is that they will make the place for energy efficient. They’ll also improve the look of the place. As you look around for the best deals for Waterloo windows, keep factors like cost, energy rating, and style uppermost in your mind. Your choices now will pay off in the years to come.

You’re Planning on Flipping A Residential Property

Your entrepreneurial instincts tell you that a certain residential property can be purchased for a low price, remodeled, and sold for quite a profit. One of the upgrades you’ll make is ripping out the old windows and replacing them with new ones. Make sure you go with Energy Start windows that fit nicely with the home’s style. Doing so will impress potential buyers and go a long way toward generating interest in the property.

You Hope To Sell The Home In Five Years

For now, the plan is to live in the home for several years and then place it on the market. Opting for new windows now will benefit you in two specific ways. The first is that the home is more comfortable during your years of occupancy. Since it’s easier to heat and cool, that means lower utility costs.

The second has to do with ensuring the home enjoys plenty of attention from potential buyers. When they see the windows are in great condition, that’s one more reason to see what else the property has to offer. See the windows as a way to receive offers sooner rather than later. There’s also more of a chance of getting higher offers. Think of what that means in terms of having more money to go toward your next home.

You Want To Remodel The Home Before Retiring

You’ve loved your home since the first moment that you saw it. The plan is to remain in the home for the rest of your life. With retirement looming in several years, now is the time to make any changes, repairs, and upgrades that will ensure the place is in top condition.

Along with determining if anything needs to be done with the wiring, plumbing, and insulation, take a good look at the windows. Do they all work properly? Are they energy efficient? Would you prefer a different style?

Preparing the home for retirement means wanting to avoid costly repairs later on. It also means making sure your utility costs are more affordable and that the place is easier to maintain. The right replacement windows will go a long way toward guaranteeing that the place will be a home sweet home during those retirement years.

Whatever your reasoning, spend some time looking into all your options for new residential windows. Feel free to ask questions and listen to the answers that the professionals provide. In the long run, you’ll end up with windows that make life easier in more than one way.

Premier of Ontario’s Mission to China generates $2.5Billion in Business agreements

Premier Wynne Trade Mission To China Premier Kathleen Wynne concluded her second mission to China on Friday the 13th this month in Beijing, where 38 new agreements valued at $750 million were signed by delegates. This brings the estimated total value of agreements from the mission to $2.5 billion. The agreements are expected to create 1,700 jobs in Ontario.

 

At a signing ceremony in Beijing, Wing On New Group Canada Inc. signed three agreements totaling $230 million, including:

  • A $100-million agreement with JD.com to purchase Canadian produce and provide business services to Canadian enterprises in the Chinese e-commerce market.
  • An $80-million agreement with China Telecom Group Best Tone Information Co. Ltd. to import food and Canadian nutritional products to China. The Chinese company will also provide financial services to Wing On and jointly develop a Chinese e-commerce market with Wing On and JD.com.
  • An agreement with Cross-border City Americo Wholesale to purchase $50 million in Canadian produce over the next three years, and open 30 new stores in 2016, with an Ontario Produce Exhibition Booth in every new store.

Hydrogenics signed four certified integrator agreements to supply fuel cell technology for integration into zero-emission public transport buses. In aggregate, the company anticipates a market opportunity of up to $100 million in revenue over a 3 to 5 year period, with approximately $10 million in the first year.

image: niagarathisweek.com
image: niagarathisweek.com

Also in Beijing, CITIC Capital announced a $100 million investment towards Paradise, a new attraction and residential development in Niagara Falls. The development is led by China-based GR Investments Co. Ltd., which has purchased 484 acres of property located west of Marineland and adjacent to Thundering Waters Golf Club.

 

The Premier also announced that the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has hired a new agri-food trade advisor in Shanghai to assist Ontario food exporters. The advisor will increase food export sales by providing international market information and identifying suitable business opportunities and strategic alliances for Ontario food and beverage suppliers. OMAFRA already has trade advisors in India, the United Kingdom and the United States.

 

During the mission, the City of Wuxi, in Jiangsu Province, and the Region of Durham signed a Friendship Agreement, creating a sister city relationship to promote economic co-operation, trade and collaboration in education and tourism. Also in Wuxi, Trent University entered into a Partnership High School Memorandum of Understanding (MOU) with Wuxi No. 1 High School and Wuxi Foreign Language School.

 

Investments also formalized include Shenzhen Bauzer Investment Group Co. Ltd., which acquired an 80% share of EDI, a Toronto-based leader in the field of robotics automation. With this acquisition, Shenzhen Bauzer intends to create an additional 200 jobs in Ontario.

 

Attracting new investments and helping the province’s businesses compete globally is part of the government’s plan to build Ontario up by investing in people’s talents and skills, making the largest investment in public infrastructure in Ontario’s history, creating a dynamic, innovative environment where business thrives, and building a secure retirement savings plan.

 

QUOTES

 

“Trade is essential for Ontario’s economic growth and international competitiveness. This mission has strengthened Ontario’s political and economic ties with China. By signing new trade agreements valued at $2.5 billion and further developing our relationships with political leaders, Ontario has made a significant impact throughout this mission.”

— Kathleen Wynne, Premier of Ontario

 

“The tremendous success of the mission is further evidence of the enduring relationship between China and Ontario and the compelling business case our province offers for global investment. Our government will continue working collaboratively with the private sector and research community to build an innovative, dynamic economy that supports long-term growth and job creation.”

— Brad Duguid, Minister of Economic Development, Employment and Infrastructure

 

“China is an important and long-term partner for Ontario in trade development, investment attraction, and science and technology collaboration. Our diversity and our highly skilled workforce are advantages that allow Ontario to create products and services for the global marketplace. The successful signings from this mission reinforce Ontario’s position as a top trading economy and will help create more jobs and economic opportunities across our province.”

— Michael Chan, Minister of Citizenship, Immigration and International Trade

 

QUICK FACTS

 

  • On the final day of the mission, Ontario delegates signed 38 agreements, which are valued at $750 million.

 

  • Ontario delegates signed more than 100 agreements and MOUs during the mission, with an estimated total value of $2.5 billion.
  • Over the last two years, Premier Wynne’s 2014 and 2015 missions to China have generated agreements worth an estimated $3.8 billion — including agreements signed by delegates during and after the missions.

 

LEARN MORE

 

Discover why Ontario’s highly diversified economy is attractive to investors

 

Read about Ontario’s Going Global Trade Strategy

FCC Promoted American Broadband Competition And Net Neutrality

In late 2014- early 2015, the FCC stood up for more competition and more choice in local broadband. This is a critical step in making faster, cheaper Internet available for all Americans.

You may have heard that the Federal Communications Commission (FCC) just put in place rules to protect ‘net neutrality.’ That’s big news. But there was another important decision today to help keep the Internet competitive and open — and while it’s getting less attention, it may be just as important. As part of its agenda to encourage meaningful competition in high speed broadband for Americans, the FCC supported allowing cities to make their own decisions about investing in new broadband networks. More needs to be done to drive innovation in bigger, faster broadband, but this was a good step.
Canadian ISP client

While the FCC’s net neutrality rules can help prevent Internet access providers from relegating some applications to a “slow lane,” this move alone won’t lead to a world where every consumer has an ultra fast connection to the entire Internet. That’s going to take more competition and innovation in new broadband networks.

It’s been nearly five years since we offered to build a fiber-optic network in one U.S. city as an experiment — and as we’ve expanded Google Fiber into a business, we’ve seen firsthand how faster speeds can improve lives and give cities new platforms for economic development. Google is not the only one innovating in this area. Along with investments by other private providers, cities like Lafayette, LA and Chattanooga, TN have been investing in their own networks and developing public-private partnerships to that end.

The FCC decided that it’s important for users to be able to control their own Internet connections and for communities to make their own choices to suit their local needs for broadband. While it may not make sense for most governments to operate broadband networks themselves, we think faster, better broadband for all Americans is too important to remove an option for deployment.

Thank Chairman Wheeler and the FCC for supporting local choice and competition in broadband networks: https://takeaction.withgoogle.com/thank-the-fcc     For the Silo, Derek Slater Google Inc.

P.S. If you want to learn more about the ingenuity of cities supporting broadband investment and competition, check out Next Century Cities.

Supplemental- Test if your Internet Service Provider is “throttling down” your internet connection speed. (requires Java plug-in installed)

How competitive is the Canadian Residential Broadband Market?  ( Essay from 2009- has anything improved since?)

 

Ontario Wants To Intro Financial Accountability Officer

Liberals Financial Accountability OfficerThe Ontario government will introduce legislation to establish a Financial Accountability Officer, an independent officer of the Legislative Assembly. Ontario is the first province in Canada to introduce this oversight measure.

If the legislation is passed, the Financial Accountability Officer would provide independent analysis to all MPPs about the state of the province’s finances, including the Ontario Budget, as well as trends in the provincial and national economies. In addition, at the request of a legislative committee or an MPP, other types of research could be provided by the officer, including the financial cost or benefit to the province of any public bill. The Financial Accountability Officer could also be asked to review and estimate the financial cost or benefit to the province of any proposal that relates to a matter over which the Legislature has jurisdiction, such as the establishment of a new program.

Increasing financial openness is part of the government’s plan to work collaboratively, attract investment, create jobs and help people in their everyday lives.

“We are proposing the creation of a Financial Accountability Officer to further
enhance the openness and transparency of government.  This would also include the
financial assessment of any public bill brought forward to the Legislature by an
MPP.  The work undertaken by this independent officer will help better inform the
house on possible financial impacts of a proposed bill and increase information
available to Ontarians.”
– Charles Sousa, Minister of Finance

“We are fulfilling our commitments with the introduction of the Financial
Accountability Officer Act. I look forward to working with the opposition to pass
this Bill and other important legislation that we will be debating this fall.
Ontarians want to see minority government working, and I’m optimistic we’ll be able
to make progress in the Legislature.”

– John Milloy, Government House Leader

QUICK FACTS

§  The Financial Accountability Officer would be selected by a panel consisting of
one member from each recognized party, chaired by the Speaker of the Assembly who is
a non-voting member.
§  The Financial Accountability Officer would produce an annual report on or before
July 31 of each year.
§  The establishment of a Financial Accountability Officer builds on previous
government actions to enhance accountability and transparency, such as the Fiscal
Transparency and Accountability Act, 2004.

LEARN MORE

Read the 2013 Ontario Budget http://www.fin.gov.on.ca/en/budget/ontariobudgets/2013/
Disponible en français