Non-Traditional Security: Challenges and Opportunities Stockwell Day August 2015 Xinjiang, China McMillan LLP l Vancouver l Calgary l Toronto l Ottawa l Montréal l Hong Kong l mcmillan.ca McMillan LLP l mcmillan.ca l 0
New Silk Road One Belt, One Road McMillan LLP l mcmillan.ca l 1
Non-Traditional Security Challenges Non-traditional security challenges Investment Supply security Environment Natural catastrophes Terrorism Trade Information security Transnational crime Human security Religious extremism Piracy on the seas Others McMillan LLP l mcmillan.ca l 2
Security of Investment Institutions set up to provide investment and financing support for the development of the New Silk Road: Asian Infrastructure Investment Bank Silk Road Fund The Asian Development Bank estimates that the region faces an annual infrastructure financing shortfall of nearly US$800 billion for the New Silk Road plan. The issue is the sustainability of such investments: Return on investment Investment security McMillan LLP l mcmillan.ca l 3
Security of Investment A regional investment protection agreement would be crucial to harmonize investment rules and regulations in the region and establish a legallybinding investment protection framework. Canada-China Foreign Investment Protection and Promotion Agreement ( Canada-China FIPA ) entered into force on October 1, 2014 non-discriminatory treatment - the foreign investor and the investment must be accorded treatment no less favourable than that accorded to domestic investors (national treatment) and investors from any other country (most-favoured nation treatment) fair and equitable treatment - the foreign investment must be accorded fair and equitable treatment in accordance with international law, including full protection and security compensation for expropriation - expropriation, or indirect measures equivalent to expropriation, must be for a public purpose, non-discriminatory, in accordance with due process of law and accompanied by payment of prompt, adequate and effective compensation (at fair market value) McMillan LLP l mcmillan.ca l 4
Security of Supply Meeting security of supply requirements has its benefits. lower costs for participating entities security of demand and price further regional development and employment A number of factors that businesses and states need to address in order to meet their security of supply needs: knowing and adequately responding to national, regional and international laws and regulations regulated goods export controls economic sanctions knowing who and what you are dealing with Flexibility in contract negotiations Objective considerations McMillan LLP l mcmillan.ca l 5
Security of Partnership and Cooperation Forming a regional security cooperation partnership in non-traditional security areas is the key to building the New Silk Road. Environment Environmental degradation cost China approximately 9% of its gross national income in 2008 Refer to the North America Agreement on Environmental Cooperation Natural Disasters Natural disasters produced $192 billion global economic loss in 2013 Adopt a regional cooperation agreement on natural disasters Terrorism Information sharing Responsive and efficient collaborative system Capability to prevent cyber related security issues McMillan LLP l mcmillan.ca l 6
firm profile McMillan LLP l mcmillan.ca l 7
firm profile McMillan is a leading Canadian business law firm committed to client service and professional excellence. With recognized expertise and leadership in many industries and practice areas, McMillan provides specialized legal advice to businesses, financial institutions and governments in Canada, China, the United States and internationally. We stand as a modern and ambitious law firm with the scope, bench strength and broad range of expertise offering effective, innovative solutions to Canadian, Chinese and international clients. Leading Canadian legal firm for more than 100 years Approximately 330 lawyers, fluent in more than 23 languages, including Mandarin Comprehensive business law practice, capital markets and m&a, and natural resources practice groups Ranked Top 10 in National Post League Table 2012 as Canadian Legal Counsel for Combined Debt & Equities Issuers McMillan s clients are located worldwide and include Fortune 100 multi-national corporations, larger and middle market businesses in nearly every business sector, private equity and institutional investors, financial institutions and governments. McMillan s results-oriented approach is valued by its clients, whether they are doing deals or facing legal or regulatory challenges in Canada. McMillan LLP l mcmillan.ca l 8
China practice we understand the Chinese marketplace McMillan is a leader among Canadian law firms in advising Chinese companies on accessing North American capital markets, and Canadian companies on accessing capital and strategic partners from Asia. We advise Canadian clients on a broad range of capital markets transactions with Chinese state-owned enterprises, from outright acquisitions to complex strategic partnership arrangements. We also act for major global investment banks and Canadian companies in connection with initial public offerings and listings on the Hong Kong and Toronto stock exchanges. Long track record in the Asia-Pacific region for over 20 years the only major, national Canadian law firm in Hong Kong 20+ lawyers in the China Practice Group, one of the largest in Canada, consisting of lawyers qualified in Canada and experienced with PRC law An in depth understanding of the Chinese marketplace One of the largest China-based client lists in Canada The Best Lawyers in Canada 2014 (Mergers & Acquisitions Law): Stephen Wortley Corporate/M&A Corporate/M&A Foreign Experts Corporate/M&A Experts Based Abroad the 2013 Canadian Legal Lexpert Directory as a leading lawyer: Leo Raffin Corporate Finance Best Lawyers in Canada 2011, 2012, 2013 and 2014 as a leading lawyer in Securities Law : Michael Taylor Securities Law McMillan LLP l mcmillan.ca l 9
contact McMillan LLP l mcmillan.ca l 10
Thank You! Hon. Stockwell B. Day Senior Strategic Advisor stockwell.day@mcmillan.ca 1.778.329.7367 Vancouver Stephen D. Wortley Chair, Hong Kong Office stephen.wortley@mcmillan.ca 1.604.691.7457 Vancouver 852.3101.0390 Hong Kong McMillan LLP l mcmillan.ca l 11