Trade Agreements Between Countries Attract Investors

To illustrate the argument, consider a hypothetical American society. If the company wishes to obtain protection for an investment in Argentina, it has direct coverage under the investment agreement between the United States and Argentina. On the other hand, if the company has an investment in Tanzania, it does not have direct access to an investment agreement; It may, however, use the Investment Agreement between Canada and Tanzania by establishing a subsidiary in Canada. Instead of creating an advantage for Canadian companies over U.S. companies, the Canada-Tanzania agreement offers U.S. companies – or any other company capable of establishing a subsidiary in Canada – the opportunity to protect their investments in Tanzania.

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