NEWS RELEASES
CANADA-CHILE FREE TRADE AGREEMENTTO BE IMPLEMENTED JULY 5
July 4, 1997 No. 113
CANADA-CHILE FREE TRADE AGREEMENT
TO BE IMPLEMENTED JULY 5
Legislation to implement the Canada-Chile Free Trade Agreement has been approved
by the Chilean Senate, and the agreement will enter into force on July 5,
International Trade Minister Sergio Marchi announced today.
"This is a significant agreement for both nations, and gives Canadian companies
privileged access to a dynamic South American market," said Mr. Marchi. "It will
not only create jobs in both countries, but is an important first step to even
closer trade relations with other strong economies in South America."
The Environmental and Labour Side Agreements will also come into force, ensuring
that respect for environment and labour laws is a vital component of the economic
prosperity that comes with trade liberalization.
"The Environmental Side Agreement will strengthen the environmental partnership
between Canada and Chile," said Environment Minister Christine Stewart. "The
Agreement will encourage environmentally responsible trade through enhanced
cooperation between our two countries and with the Canadian environmental
community, and the effective enforcement of environmental laws."
"This labour agreement demonstrates Canada's commitment to cooperation on labour
issues," said Labour Minister Lawrence MacAulay. "The protection and enforcement
of basic workers' rights are our major goals, and we are dedicated to improving
the working conditions and living standards of our workers."
The agreement was formally signed in Chile on December 5, 1996. Legislation to put
the agreement into law in Canada received royal assent on April 25, 1997.
The trade agreement's key features are as follows:
Immediate duty-free access for 75 per cent of Canadian exports and the
elimination of Chile's 11-per-cent import duty on almost all remaining industrial
and resource-based goods over five years.
Much better access for a range of agricultural goods. For example, tariffs for
durum wheat, which represents 35 per cent of exports in this sector, will be
eliminated immediately.
Significant new protection for Canadian investments in Chile, including an
agreement to automatically grant Canadian investors the benefits of any future
liberalization, and an undertaking to negotiate a bilateral double taxation
agreement.
The creation of a Free Trade Commission and secretariat to ensure the timely and
effective resolution of disputes.
Side agreements on environment and labour, the first agreements of this nature
ever signed by the Government of Chile.
The mutual elimination of anti-dumping duties within a maximum of six years.
The agreement also exempts cultural industries and supply-managed products, fully
protects social and health services, and does not affect the Auto Pact.
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For further information, media representatives may contact:
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
Mark Colpitts
Office of the Minister of the Environment
(819) 997-1441
Don Wilson
Office of the Minister of Labour
(819) 953-5643
This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca under the News Releases heading. The Canada-Chile
Free Trade Agreement is also available on the site under Trade Agreements, and on
diskette through the Department's InfoCentre at (613) 944-4000 or 1-800-267-8376.
The Canada-Chile Agreement on Environmental Cooperation is available on The Green
Line, Environment Canada's Web site, at http://www.ec.gc.ca/relations_e.html
The full text of the Canada-Chile Agreement on Labour Cooperation is available on
the Labour Branch Web site at http://labour-travail.hrdc-drhc.gc.ca
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