Mongolia works to secure Foreign Direct Investments in the country

Oyundelger 2017-12-15 06:12

Economy

A recent investment agreement between Mongolia-Canada which is the part of a worldwide web of similar international investment agreements called IIA promote and protect foreign investments.

As a result of the International Agreement for the Promotion and Protection of Investments signed between Mongolia and Canada in February of this year, investors of both countries will have legally-binding obligations that allow either side of the investors to settle their disputes through  international arbitral tribunal. An international arbitral tribunal is a panel of one or more adjudicators, which is convened and sits to resolve a dispute by way of arbitration. Therefore, it is expected that Canadian investors are entitled to rely on special international rules for the protection of their investments in Mongolia while Mongolia`s reputation on dealing with foreign investors are likely to be increased. This recent investment agreement between Mongolia-Canada is the part of a worldwide web of similar international investment agreements called IIA that promote and protect foreign investments. Countries conclude IIAs such as the Canada-Mongolia Investment Agreement to attract foreign investments into the country or to protect foreign investments of their nationals abroad. Traditionally, Mongolia’s extractive industries receive the lion share of foreign investments in the country and thus Canada is represented one of the most significant sources for foreign investments in Mongolia.