INTERNATIONAL TRADE MINISTER SIGNS TARIFF ACCELERATION AGREEMENT WITH CHILE
November 4, 1999 (4:55 p.m. EST) No. 241
INTERNATIONAL TRADE MINISTER SIGNS
TARIFF ACCELERATION AGREEMENT WITH CHILE
International Trade Minister Pierre Pettigrew and Chilean Foreign Affairs Minister Juan Gabriel Valdés today
signed an agreement to speed up the elimination of tariffs related to the Canada-Chile Free Trade Agreement
(CCFTA). The signing took place following this week's second meeting of the CCFTA Commission in Toronto.
"I am happy we have been able to enrich our agreement by eliminating tariffs faster than originally planned,"
said Mr. Pettigrew. "The CCFTA is a key element of our strengthening bilateral relationship with Chile."
As part of today's agreement, scheduled to come into force on January 1, 2000, trade in a number of products
will become duty free between two and seven years earlier than planned. The value in future bilateral trade in
these goods is estimated at $25 million annually.
Minister Pettigrew also announced the ratification of an agreement on the Avoidance of Double Taxation and
the Prevention of Fiscal Evasion, also to be implemented on January 1, 2000. The agreement will lead to a
more stable and fair taxation regime, easing the flow of commerce for individuals and business in both
countries.
Two-way trade between Canada and Chile totaled $683 million in 1998, and Chile remains Canada's leading
investment destination in Latin America, with nearly $11 billion in foreign direct investment (actual and
planned).
"Canadian companies are pursuing commercial opportunities in Chile at a robust rate," said Mr. Pettigrew.
"We've become Chile's second largest foreign investor, which attests to our confidence in their economic
future."
The CCFTA gives Canadian companies a leg-up on competitors by establishing a fair and transparent rules-based system covering goods, services, investment, dispute settlement and trade remedies.
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Attached is the CCFTA Commission Joint Statement of the Ministers.
For further information, media representatives may contact:
Sylvie Bussières
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
SECOND MEETING OF THE CANADA-CHILE FREE TRADE AGREEMENT FREE TRADE
COMMISSION: JOINT STATEMENT OF THE MINISTERS
TORONTO
November 4, 1999
Following the 2nd meeting of the Canada-Chile Free Trade Agreement Commission, Canada's Minister for
International Trade, Pierre S. Pettigrew, and Chile's Minister of Foreign Affairs Juan Gabriel Valdés are pleased
to release this joint statement which summarizes the overall results.
JOINT STATEMENT OF THE MINISTERS
1. We are pleased to hold the 2nd meeting of the Canada-Chile Free Trade Agreement (CCFTA) Free Trade
Commission here in Toronto. We believe that the success of the dynamic and integrated partnership between
our two countries, as developed and facilitated under the CCFTA, not only strengthens our bilateral relations
but helps to build momentum for further trade liberalization, particularly in this hemisphere.
2. The Commission meeting was an opportunity to reaffirm our commitment to implementing fully the provisions
of the CCFTA. We discussed our views and cooperative efforts on other regional and multilateral trade
liberalization issues.
3. We reaffirmed our endorsement of the CCFTA as the cornerstone of the Canada-Chile trade and economic
relationship. The establishment of a rules-based regime under the CCFTA has increased predictability and
transparency for business and investors, and facilitated the bilateral flow of goods and services and investment.
4. Upon the entry into force of this Agreement on July 5, 1997, tariffs were immediately eliminated on products
which make up the majority of our two-way trade. For goods where the tariff is being phased out over time, we
note that the fourth scheduled round of tariff cuts will take place on January 1, 2000.
5. It is our pleasure to announce that we have agreed today to amend the CCFTA with the intention of
accelerating the elimination of tariffs for a range of products. Under this agreement, approximately an
additional $25 million in annual two way trade is expected to become duty-free on January 1, 2000 once both
Canada and Chile complete their respective implementing procedures. Details on the products concerned are
summarized in the Annex to this statement.
6. We welcomed the ratification of the Canada-Chile Convention on the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion (DTA) by our two countries and look forward to its implementation beginning
January 1, 2000. This Convention is the first of Chile's new generation of tax treaties and its implementation
will fulfill a central commitment in the CCFTA (Annex O-03.1). We are confident that this Convention will lead to
a more stable and fair taxation regime, which will facilitate the smooth flow of commerce for individuals and
business and contribute to the growth in trade and investment between our two countries.
7. We reviewed the progress realized in implementing the specific provisions of the CCFTA. We agreed on a
number of actions in relation to the supervision of the implementation of this Agreement and in oversight of its
further elaboration, which are summarized in the Annex to this statement.
8. We welcomed the progress that has been achieved under the labour and environmental side agreements
concluded in parallel with the CCFTA. We noted the constructive partnership between Canada and Chile on
labour issues that has been facilitated and promoted under the Canada-Chile Agreement on Labour
Cooperation. We agreed that the significant linkages developed and collaborative activities undertaken
between our countries - in areas such as industrial relations law and practice and women and work -
demonstrates our commitment to cooperating on labour-related matters. We reviewed the achievements
realized under the Canada-Chile Agreement on Environmental Cooperation (CCAEC) as the institutional
framework for discussion and cooperation on environment-related issues between our two countries. We noted
the meeting held on November 1 between both trade and environment officials that explored informally the
interface between the two issues and the decision to propose to the CCAEC Council the creation of a
roundtable for discussing specific trade and environment issues.
9. We were pleased to note the continuing progress of further trade liberalization efforts in regional and
multilateral fora. We reaffirmed our commitment to work together towards a Free Trade Area of the Americas
and the creation of the world's largest free trade area, with 800 million people and a combined GDP of nearly
$US 11 trillion and we look forward to the successful conclusion of the Ministerial meeting being concurrently
held here today. The FTAA offers an historic opportunity to build on established free trade ties within the
hemisphere and we note the positive model that the CCFTA provides in expanding trade and investment links
between hemispheric trade partners. We welcomed the meeting of the Americas Business Forum held here
November 1-3 and agreed that the Forum reflects the heightened level of interest and participation in inter-American commerce from businesses within the hemisphere.
10. We agreed on the importance of sustaining momentum for further multilateral trade liberalization and look
forward to launching a new round of comprehensive negotiations at the World Trade Organization (WTO)
Ministerial meeting in Seattle November 30 - December 3. We discussed our general objectives for the new
round and expressed our support for broad-based negotiations that will further open global markets, expand the
scope of trade rules, strengthen the institutional workings of the WTO, and address public concerns about the
social dimensions of trade. In particular, we state our commitment to support the elimination of export
subsidies in agriculture in the new round of trade negotiations. We also reaffirmed our commitments to
transparency and openness in the negotiations.
ANNEX TO THE JOINT STATEMENT OF MINISTERS:
IMPLEMENTATION ACTIONS
In accordance with its mandate to supervise the implementation and further elaboration of the Canada-Chile
Free Trade Agreement pursuant to Article N-01 of the Agreement, the 2nd meeting of the Free Trade
Commission :
1. took note of the progress achieved under the 8 Committees and Working Groups established under the
Agreement and in accordance to the mandates provided in the CCFTA and welcomed the continued
cooperation between officials in working together to meet the shared goal of further trade liberalization between
our two countries;
2. agreed to accelerate the elimination of tariffs on the following products: turkey poults, turkey hatching eggs,
feed peas, fresh or chilled tomatoes, peaches, plums, sloes, certain colour pigments, certain articles of plastic
and a number of textile products; and confirmed our intention to take the necessary steps to complete our
respective domestic implementing procedures with the objective that these goods shall become free of customs
duties effective January 1, 2000;
3. took note of the progress attained in the Committee on Telecommunications Standards in establishing
mutually compatible procedures for recognition of test reports in both countries as called for in Article I-04 of the
Agreement;
4. welcomed the completion and dissemination of the Chilean public explanatory document on temporary entry
procedures of the Agreement, as called for in Article K-04.1(b) and noted Chilean cooperation in lowering visa
processing fees from $US 650 to $US 100;
5. encouraged Canadian and Chilean professional service providers, particularly engineers, to continue work on
developing mutually acceptable standards and criteria for licensing and certification of professionals pursuant to
Annex H-10.5;
6. welcomed the completion of the rules of procedure for dispute settlement called for under Article N-12;
7. instructed officials to complete the roster of panellists for dispute settlement purposes pursuant to Article N-09 of the Agreement;
8. agreed that Chile would host the next regular meeting of the Commission in 2000.