The position of Canadian mining companies will improve when the Free Trade Agreement between Canada and the EU enters into force. The risk comes from the investment protection paragraph of the contract.
Finland may face big bills in the future as the position of Canadian mining companies improves after the entry into force of the CETA Free Trade Agreement between the European Union and Canada.
The purpose of the investment protection under the agreement is to ensure that the treatment of Canadian investments in the EU is equal and fair in relation to European investments, says Professor of International Law Kati Kulovesi of the University of Eastern Finland. The same would apply to the treatment of investments from Canada in Canada.
The agreement is essential for Finland, especially in the mining industry, as more than half of the international listed companies are from Canada. There are also several Canadian companies operating in Finland, such as Agnico Eagle, which runs a gold mine in Kittilä.
Although the agreement contains other things, it is precisely the investment protection that has aroused fear of the consequences in Finland.
