Canada is lifting its unilateral sanctions against Libya, Prime Minister Stephen Harper said, because Moammar Gadhafi's 42-year-rule has come to an end in the North African country.
Ottawa imposed the economic sanctions in March to prevent Canadian companies from doing business with Gadhafi's regime.
On Thursday, Harper announced that Ottawa is "taking this first step" in order to "assist the Libyan people transition justly, safely and securely towards a democracy."
The prime minister made the announcement during a meeting of world leaders in Paris, and the decision follows a similar move by the European Union.
Harper's spokesperson Dimitri Soudas said that the prime minister met with British Prime Minister David Cameron separately in Paris.
"The two leaders reiterated their commitment to ensuring the success of the current NATO mission and exchanged views in stabilization and reconstruction efforts," Soudas said in a news release.
Harper also met with Mahmoud Jabril, who has been appointed as Libya's interim prime minister by the rebel-backed National Transitional Council.
"We're just feeling very good for you," Harper told Jabril. "We know you have immense challenges and we hope to be there along the way to assist the Libyan people in having a better future."
Jabril told Harper that he was grateful for Canada's support.
Following months of civil war, the National Transitional Council has been recognized as the country's official government by several dozen countries, including Canada.
In a news release, Harper said the federal government is also "calling for the unfreezing of assets currently held under United Nations resolutions."
Several world leaders at the Paris summit made issued similar demands Thursday.
An estimated $2.3 billion in Libyan assets held by Canadian financial institutions remain frozen, in line with United Nations sanctions.
However, part of the problem with unfreezing such assets is that many countries dispute that the National Transitional Council is Libya's legitimate government. Those countries include China, which has a permanent seat on the UN Security Council.
Several Canadian firms including Suncor Energy and SNC Lavalin have operations in Libya. Lifting Canada's unilateral sanctions paves the way for such firms to resume business there.
Suncor shelved its operations in Libya after Gadhafi began cracking down on mass protests earlier in the year.
Prior to the crackdown, the company had been producing about 50,000 barrels of oil per day, working with the state-owned National Oil Corp.
In a statement issued after rebel forces seized the Libyan capital last week, Suncor said it did not know when it would resume doing business in the oil-rich nation.
"For now, it's early days," the company said. "Like many others, we're watching to see how the current events in Tripoli unfold."
Harper said he had received assurance that a new government in Libya would honour contracts with Canadian companies.
"And I expect Canadian companies to be aggressive in pursuing export opportunities," Harper said. He also stressed that a financial windfall for Canada wasn't the motivation behind the country's involvement in the NATO mission.
With files from The Canadian Press
