Like a pair of 14-year-olds in 2010 going Facebook official, Canada and Luxembourg have levelled up their relationship.
What happened: Luxembourg officially opened a Canadian embassy in Ottawa this week, 80 years after the two countries established diplomatic ties. Every EU member now has an embassy in Canada, at a time when our fair nation is looking to do more biz with the bloc.
- Foreign Minister Anita Anand and Minister of International Trade Maninder Sidhu attended the opening, where they met with Luxembourg’s Deputy Prime Minister Xavier Bettel.
Why it’s happening: The tiny nation is one of the world’s premier tax havens, but is looking to diversify away from financial services into fields like cybersecurity and space technology. Using Canada as a way to open up North American trade is part of this push.
Big picture: Until new transparency laws curtailed foreign investment, Luxembourg was one of the top sources of foreign direct investment in Canada. Even after the changes, though, it’s still the eighth-largest source, according to Statistics Canada, pouring $22.3 billion into the country last year.
Why it matters: Even though direct investment may have dropped, a lot of money still flows through Luxembourg. Political scientist Robert Harmsen told The Canadian Press that it’s “a very good place if you’re looking for a European base, or to expand into Europe.” All Canada has to do next, we suppose, is open up its own embassy there.—QH