Lisbon Forum Spotlights Surge in Luso-Canadian Bilateral Investment and Trade
Economic relations between Portugal and Canada are undergoing a period of unprecedented growth, a key theme at a recent meeting held at the World Trade Center in Lisbon on October 10th. The Comprehensive Economic and Trade Agreement (CETA), provisionally active since 2017, has been identified as the primary catalyst for this expansion. According to data presented by Canadian Ambassador Élise Racicot, the agreement has led to a 300% increase in the bilateral trade of goods and a doubling of services. This commercial boom has, in turn, spurred a wave of mutual investments across strategic sectors including technology, tourism, and notably, real estate and construction.
The forum brought together Portuguese corporate entities operating in Canada and their Canadian counterparts in Portugal, facilitating a direct exchange of experiences and networking. Trade advisor Jorge Vidal emphasized the crucial support provided by the diplomatic mission to Portuguese firms, particularly those in high-growth areas like renewable energy and technological innovation. The discussion highlighted that for Canada, deepening its commercial ties with Europe serves as a strategic diversification in response to recent tariff policies from the United States, thereby reducing its economic dependency. The choice of Portugal is reportedly based on a foundation of shared values and compatible market regulations. For investors looking into the specifics of the Portuguese market, our market intelligence and analysis blog offers in-depth articles.
A significant portion of Canadian investment in Portugal has been directed towards the real estate sector. This includes the development of student housing, hotels, and commercial retail spaces like supermarkets. Furthermore, Canadian pension funds are actively acquiring stakes in Portuguese enterprises, such as agricultural businesses. A notable example cited was Mercan Properties, a Canadian-based group that is currently managing 31 hotel projects within Portugal. Despite the positive outlook, representatives from Mercan Properties pointed to significant operational challenges, specifically the lengthy bureaucratic process for project licensing, which can average two years and potentially jeopardize the viability of investments. This insight into regulatory hurdles is critical for foreign investors, who may seek guidance on legal issues in property acquisition.
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The technology sector has also emerged as a cornerstone of the bilateral relationship. Portugal's increasing appeal to digital nomads and technology firms has created a fertile ground for Canadian investment and expertise. The Canadian software firm OpenText, for instance, has established a subsidiary in Lisbon and collaborates with local companies to deploy its information management and AI-driven automation solutions. The establishment of the Canada-Portugal Chamber of Commerce just over a year ago, with backing from the Canadian Embassy and Portugal's trade and investment agency AICEP, has been instrumental in fostering this dialogue and helping companies overcome operational barriers.
The forum also provided a platform for Portuguese companies to share their experiences investing in Canada. Capwatt, the renewable energy division of the SONAE Group, detailed its development of a biomass project in a Canadian region transitioning to a green economy, noting the complex regulatory landscape involving indigenous rights and forest management. Similarly, food company Frulact recounted its successful factory expansion during the pandemic, crediting cooperation with local unions. These case studies illustrate the reciprocal nature of the economic partnership.
Looking ahead, the collaboration is set to deepen in high-tech and strategic domains. Digitalization, cybersecurity, aviation, and defense are marked as priority areas. Canadian involvement in pan-European R&D programs like Horizon Europe and Eureka is expected to open further avenues for joint projects, including the development of drone technologies and green shipping corridors between Canadian and European ports. For those looking to engage with this growing market, connecting with agents specializing in international clients is a recommended first step. Explore investment strategies and opportunities at realestate-lisbon.com.