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, formal negotiations were launched 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)
Canada believes that a trade agreement (FTA) with the Central America
Four would bring a wide range of benefits to all countries involved
and would boost trade flows between Canada and Central America.
Canadian merchandise exports to the CA4 totalled $293 million in
2005, and services exports totalled $60 million in 2004. Merchandise
imports stood at $454 million in 2005 and services imports totalled
$46 million in 2004. 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.
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
The tenth and most recent formal round of negotiations between
Canadian and Central American officials was February 16-20, 2004,
in Ottawa. Although progress was made on a wide range of issues
in the trade agreement including services and investment, and the
draft labour cooperation agreement (the environmental cooperation
agreement was substantively concluded at a previous round), various
outstanding issues in the agreement could not be solved. For example,
work remains in the areas of market access for textiles and apparel,
as well as market access for agricultural products.
Currently, Canadian and CA4 officials are trying to lay the groundwork
that will allow both sides to reach an agreement in the near future.
To that end, officials from each side have been meeting informally,
most recently on July 10-11, 2006, in Guatemala. These discussions
have been productive, allowing officials the opportunity to take
stock of the progress achieved thus far in the negotiations. No
decisions have been made with respect to the resumption of formal
negotiations, but officials intend to meet again, on an informal
basis, in early October.
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 (TBB)
Department of Foreign Affairs & International Trade
Lester B. Pearson Building
125 promenade Sussex Drive
Ottawa, Ontario, K1A 0G2
Fax: 613-944-3489
E-mail : consultations@international.gc.ca
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