December 5, 2003 (8:15 a.m. EST) No. 189

Canada Trade Mission to Chile

CANADA AND CHILE FURTHER STRENGTHEN PARTNERSHIPS

International Trade Minister Pierre Pettigrew today congratulated 51 Canadian companies on a job well done as they concluded a Canada Trade Mission to Chile. The mission further solidified our links with this key Latin American partner, which have proven highly successful since the signing of the Canada-Chile Free Trade Agreement.

"I am proud of Canada's partnership with Chile. Our trade agreement has been beneficial to both countries, and our trade and investments have continued to increase since its implementation," Minister Pettigrew said. "Chile has one of the most open and stable economies in Latin America and continues to prove to be one of the key markets for Canada within the Americas."

Two-way trade has increased by 32.3 percent since 1997, reaching nearly $1 billion in 2002. Participants in this week's trade mission signed several new contracts and other agreements.

Canada and Chile also signed an Air Transport Agreement (ATA), which provides for direct air service by the designated carrier of one country to any point in the other, with no restrictions on schedules or fares. This represents a significant move in liberalizing air relations between Canada and Chile. The ATA marks a major step forward under the Canada-Chile Free Trade Agreement by allowing for the provision of regular, direct service between the two countries, thus further facilitating passenger and freight movement and the creation of commercial links.

The trade mission, in Santiago from December 2 to 5, 2003, generated new business in Chile for Canadian companies and reaffirmed Canada's commitment to the Canada-Chile Free Trade Agreement. The seven agreements signed between Canadian and Chilean companies were witnessed by José Miguel Insulza, Minister for the Interior and Vice President of Chile.

The last major Canadian trade mission to Chile took place when Team Canada visited the country in January 1998.

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A backgrounder describing the agreements concluded during the trade mission is attached.

For further information, media representatives may contact:

Sébastien Théberge

Director of Communications

Office of the Minister for International Trade

(613) 992-7332

sebastien.theberge@dfait-maeci.gc.ca

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

http://www.dfait-maeci.gc.ca

Backgrounder

Canbreal Therodiagnostics International Inc., Ottawa, Ontario

Canbreal Therodiagnostics International Inc. signed a memorandum of understanding with the Institute of Biomedical Science, Faculty of Medicine, University of Chile, to initiate a national program for the early detection and prevention of breast cancer. The program, due to be launched next year, will utilize technology developed by Canbreal. The agreement is worth $3 million, of which approximately $2.1 million is Canadian content.

MinuteSource Communications Corp., Vancouver, British Columbia

MinuteSource Communications Corp. signed a contract with IFX Networks Chile to provide local telephone access for MinuteSource's pre-paid calling card services. IFX will receive calls originating from pre-paid card users in Chile and redirect them to MinuteSource operations in Canada for routing to the final call destination, anywhere in the world.

MinuteSource Communications Corp. signed a contract with CAM Ltd. to become the exclusive distributor of MinuteSource's international pre-paid calling cards in the Santiago metropolitan and Valparaiso regions. CAM will distribute the cards through kiosks and retail outlets.

MIC, Maisons Internationales du Canada Inc., St-Lambert, Quebec

MIC, Maisons Internationales du Canada Inc. signed a memorandum of understanding with Constructora Smith, Fuentes, Smith Ltda and Inmobiliaria e Inversiones Concepción Ltda to promote and build Canadian wood-framed and recreational housing units in the region of Concepcion. This MOU will also target the sale of secondary residential units. The total estimated value is $7 million over the next five years, all of which is Canadian content.

Police Foundations Department of Commercial Business College, Toronto, Ontario

Police Foundations Department of Commercial Business College signed a letter of intent with the Chilean police force to provide 12 scholarships to selected Chilean police officers to study police-related courses at the College's facility in Toronto. Each scholarship is worth $4,000, for a total value of $48,000. The scholarship offer will be honoured for one year.

The University College of the Cariboo, Kamloops, British Columbia and

Canglobal Management Inc., Saskatoon, Saskatchewan

The University College of the Cariboo and Canglobal Management Inc. signed a memorandum of understanding with CT Valparaíso to develop a sustainable program for the establishment and promotion of a cluster of industries, products and services targeted to the educational market of Chile. Based in the Valparaiso and Viña del Mar region, the project has been identified and initiated as a component of Canada's Sustainable Cities Initiative, headed by Industry Canada's Services Branch. The project is valued at $150,000, approximately $112,000 of which is Canadian content.

The University College of the Cariboo and Canglobal Management Inc. signed a memorandum of understanding with Fundación Chile for the development of a sustainable program for rural economic development. The Canadian partners will work closely with Fundación Chile and small-scale rural producers to identify products for organic and "fair trade" certification, evaluate strategies necessary for producers to meet market demand, and provide training to producers. The project is valued at $150,000, approximately $120,000 of which is Canadian content.