Trade agreements between Canada and Saudi Arabia have been gaining increased attention and scrutiny over recent years. These agreements have been an essential part of the bilateral relationship between both countries, and they have impacted their economic and political ties positively.
In 2018, however, the relationship between Canada and Saudi Arabia took an unexpected turn when the Canadian government criticized Saudi Arabia`s human rights record, particularly the detention of human rights activists. In retaliation, Saudi Arabia expelled the Canadian ambassador, suspended new trade and investment deals, and ordered Saudi students to leave Canadian universities.
While the diplomatic row between the two countries has since been resolved, it raised several concerns about Canada`s trade relations with Saudi Arabia. Critics argue that Canada should not be engaging in trade with a country that has a poor human rights record, while proponents of the agreements say that trade is necessary for economic growth and that it should not be politicized.
The most significant trade agreement between the two countries was signed in 2014. The Canada-Saudi Arabia General Investment Agreement (GIA) aims to promote and protect investments between the two nations. The agreement guarantees that investors from each country are treated fairly and equitably in the other`s territory. It also provides for the settlement of investment disputes through international arbitration.
In addition to the GIA, Canada and Saudi Arabia have signed several other trade agreements, including the Canada-Saudi Arabia Foreign Investment Promotion and Protection Agreement (FIPA) and the Canada-Saudi Arabia Tax Treaty.
The FIPA agreement aims to promote investment between the two countries by protecting investors from one country in the other`s territory. The agreement also ensures that investors are not subject to discriminatory treatment and that their investments are protected from expropriation.
The Canada-Saudi Arabia Tax Treaty, on the other hand, aims to promote economic relations between the two countries by preventing double taxation. The treaty provides for the exchange of financial and tax-related information, which helps to prevent tax evasion and fraud.
Trade between Canada and Saudi Arabia has been growing steadily over the years. In 2019, Canada`s exports to Saudi Arabia were worth around $1.4 billion, while imports from Saudi Arabia were worth approximately $3.6 billion. The main exports to Saudi Arabia were vehicles, machinery, and scientific instruments, while the primary imports were crude oil and petroleum products.
In conclusion, trade agreements between Canada and Saudi Arabia have been essential to their bilateral relationship. While the diplomatic row between the two countries in 2018 raised concerns about the agreements, they remain critical to both countries` economic growth. As trade continues to grow between them, it`s crucial that both countries continue to work towards protecting investors and promoting fair and equitable treatment in each other`s territories.