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<title>FREE TRADE NEGOTIATIONS LAUNCHED WITH FOUR CENTRAL AMERICAN COUNTRIES</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong>November 21, 2001 <em>(1:00 p.m. EST)</em> No. 154</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>FREE TRADE NEGOTIATIONS LAUNCHED WITH </strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>FOUR CENTRAL AMERICAN COUNTRIES</strong></font></p>
<p><font face="Arial">International Trade Minister Pierre Pettigrew today announced the launch of free trade negotiations with El
Salvador, Guatemala, Honduras and Nicaragua, aimed at further enhancing Canada's trade relationship with
Central America.</font></p>
<p><font face="Arial">"This free trade agreement will improve our trade and political ties with these emerging markets," said Mr.
Pettigrew. "An agreement would also give Canadian exporters more advantageous access compared with
competing suppliers in the United States and Europe."</font></p>
<p><font face="Arial">In 2000, bilateral trade between Canada and these four Central American countries totalled $617 million.
Canadian direct investment in these markets is estimated at over $158 million.</font></p>
<p><font face="Arial">There is significant potential for Canadian companies in several priority export sectors, including
telecommunications and environmental equipment and services, processed foods, automotive parts and
construction. </font></p>
<p><font face="Arial">Canada will preserve its ability to maintain or establish measures in sectors such as health, public education
and social services. The free trade agreement will be accompanied by parallel environmental and labour
cooperation agreements. An environmental assessment will be conducted to assist trade negotiators in
identifying and evaluating any environmental impacts.</font></p>
<p><font face="Arial">From a broader perspective, a free trade agreement with the region would signal Canada's continuing
commitment to the hemisphere and would inject further momentum into Free Trade Area of the Americas and
WTO negotiations by serving as a model for cooperation between developed and developing countries.</font></p>
<p><font face="Arial">The first negotiating session will be held in Central America in December and follows several preparatory
rounds.</font></p>
<p><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Sébastien Théberge</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
<p><a href="https://bac-lac.wayback.archive-it.org/web/20061209070746/http://www.dfait-maeci.gc.ca/"><font face="Arial">http://www.dfait-maeci.gc.ca</a></font></p>
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