Regional and Bilateral Initiatives
Canada - Central America Four Free Trade Agreement Negotiations
At the Canada-Central America Summit in Guatemala on September 28, 2000, Canada agreed to a request by the leaders of the Central American countries of El Salvador, Guatemala, Honduras and Nicaragua (CA4) to pursue free trade negotiations. Following extensive domestic consultations, then Minister for International Trade, Pierre Pettigrew announced the launch of free trade negotiations on November 21, 2001. Negotiations on parallel agreements on labour and environmental cooperation were launched at the same time. (See the November 21, 2001 News Release)
The Government of Canada believes that a trade agreement with the
Central America Four would bring a wide range of benefits to all
countries involved. This trade initiative is expected to boost trade
flows between Canada and Central America. Canadian merchandise exports
to the CA4 totalled $237 million in 2004, and services exports totalled
$50 million in 2002. Merchandise imports stood at $429 million in
2004 and services imports totalled $27 million in 2002. Key Canadian
interests in Central America include telecommunications goods and
services, environmental equipment and services, value-added processed
foods, automotive parts, and construction equipment and services.
In addition, an FTA with the CA4 will signal our continued commitment to the hemisphere and would help advance Canada's foreign policy interests in the region, in particular in terms of poverty alleviation, and the consolidation of peace and democracy and macro-economic stability and growth. The potential development benefits of an FTA with the CA4 are important. The provision of increased access to the Canadian market holds the promise of encouraging faster economic growth, improved standards of living and a reduction in poverty. Canada's negotiating positions reflect sensitivity to development objectives, with due regard for Canadian domestic sensitivities in certain industries.
In January 2001, the Government launched public consultations seeking the views of all interested Canadians on the scope and priorities of these negotiations. These consultations are ongoing, as Canadians are encouraged to provide their comments and input on trade issues at any time via our website. (For more information, see the News Release and the Canada Gazette Notice of January 6, 2001.)
Update on Negotiations
Canadian and Central American officials met in Ottawa for the tenth round of formal negotiations, February 16-20, 2004. Parties continued a productive exchange of views and proposals over the course of the week. Progress was made on a wide range of issues in the trade agreement including services and investment, where most of the general provisions have been agreed. Considerable progress was also achieved in negotiations on the draft labour cooperation agreement. (The environmental cooperation agreement was substantively concluded at a previous round.) However, various outstanding issues in the agreement could not be solved at this stage of the negotiation. For example, work remains in the areas of market access for textiles and apparel products benefiting from export subsidies, as well as market access for agricultural products. The Government of Canada is committed to the successful conclusion of the negotiations. No date has been identified for a potential final round of negotiations.
Strategic Environmental Assessment
In keeping with the Framework for Conducting Environmental Assessments of Trade Negotiations, an initial environmental assessment of the Canada-Central America Four free trade negotiations has been conducted to help negotiators to better integrate environmental considerations into the negotiating process.
The Government has consulted with Canadians on the initial environmental assessment, including the provinces and territories, non-government organizations, business groups, and the general public.
Initial Environmental Assessment of the Canada-CA-4 Free Trade Negotiations
Contact Point
If you have questions or comments about this initiative we would like to hear
from you. Please contact International Trade Canada at:
Regional Trade Policy Division (EAI)
International Trade Canada (ITCan)
Lester B. Pearson Building
125 promenade Sussex Drive
Ottawa, Ontario, K1A 0G2
Fax: 613-944-0757
E-mail : consultations@international.gc.ca
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