Mumbai: India and Canada will soon sign a foreign investment protection and promotion agreement (FIPPA) to accelerate investment flows between the two countries and provide an "impetus" to bilateral economic ties, R L Narayan, India's high commissioner to Canada, said.

"The agreement, designed to protect investors by defining their legally binding rights and obligations, would be signed soon," reports quoted Narayan as saying in Toronto.

The agreement is expected to accelerate investment flow between the two countries and provide a 'new impetus' to bilateral economic ties, he said, adding it would be signed soon.

Although the two countries had concluded negotiations way back in June, during commerce minister Kamal Nath's visit, an agreement was not signed for want of further clarifications.

Once implemented, the agreement would help intensify investment flows to the mutual benefit of both the countries by creating a favourable environment, Narayan said.

He said India's long term objective was to sign a free trade agreement (FTA) with Canada and it would be possible only after Doha round of talks and submission of a special committee report.

India already has free trade agreements with Sri Lanka, Thailand and Singapore and was in the process of signing it with European Union.

India is also contemplating bilateral trade and investment pact with the United States, which would almost be a free-trade pact, commerce and industry minister Kamal Nath said.

"Bilateral trade agreements are currently in the pipeline with at least 10 potential partners ranging from Asean, the EU, US and Canada," the minister said at the Pravasi Bharatiya Divas.

He said India and the United States are planning 'mutually beneficial' bilateral investment agreement even as two-way investment flows have increased considerably.

Kamal Nath is expected to discuss the issue with US trade representative Susan Schwab when they meet in Chicago next month.