NEWS RELEASES
CANADA-CHILE FREE TRADE AGREEMENT BILL INTRODUCED IN PARLIAMENT
February 12, 1997 No. 28
CANADA-CHILE FREE TRADE AGREEMENT BILL INTRODUCED IN
PARLIAMENT
The Honourable Art Eggleton, Minister for International Trade, announces that
legislation to implement the Canada-Chile Free Trade Agreement was introduced in
Parliament today.
"Once implemented, the agreement will significantly increase Canadian access to
Chilean markets and increase exports and job creation in both nations," said Mr.
Eggleton.
"This is an important deal for both nations, and gives Canadian firms privileged
access to this emerging market" said the Minister. "This agreement is also an
important first step in developing closer trade ties with other dynamic economies
of South America, and beyond."
Canada and Chile reached agreement on the free trade accord on November 14, 1996.
Prime Minister Jean Chrétien and Chilean President Eduardo Frei initialed the
agreement during the President's visit to Canada on November 18. Minister
Eggleton signed it in Chile on December 5. The agreement is slated to be
implemented in June 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.
On December 11, 1994, the Prime Minister of Canada and the presidents of the
United States, Mexico and Chile announced their intention to pursue Chile's
accession to the North American Free Trade Agreement (NAFTA). In January 1995,
Prime Minister Chrétien led a trade delegation to Chile, the first such mission to
Chile by a Canadian leader. He was accompanied by more than 250 business people.
On December 29, 1995, Canada and Chile committed to negotiate an interim free
trade agreement as a bridge to Chile's accession to the NAFTA. The first round of
negotiations took place in January 1996 in Santiago.
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For further information, media representatives may contact:
Nicole Bourget
Director of Communications
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
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 (944-4000).
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