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<title>CANADA SIGNS AGREEMENTS WITH COSTA RICA AND CENTRAL AMERICAN COMMON MARKET IN SAN JOSÉ</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">March 18, 1998 No. 59</font></p>
<p align="CENTER"><font face="Univers" size="+2">CANADA SIGNS AGREEMENTS WITH COSTA RICA AND </font></p>
<p align="CENTER"><font face="Univers" size="+2">CENTRAL AMERICAN COMMON MARKET IN SAN JOSÉ</font></p>
<p><font face="Courier">International Trade Minister Sergio Marchi signed two agreements today in San
José, Costa Rica, that demonstrate Canada's continuing commitment to liberalize
trade and investment in the Americas.</font></p>
<p><font face="Courier">While attending a meeting of the hemisphere's trade ministers on the Free Trade
Area of the Americas (FTAA), Minister Marchi signed a Foreign Investment
Promotion and Protection Agreement (FIPA) with Costa Rica, and a Memorandum of
Understanding (MOU) on Trade and Investment with the Central American Common
Market. </font></p>
<p><font face="Courier">"As we head into the Summit of the Americas in Santiago, Chile, I am optimistic
that these agreements help our work in building a hemisphere-wide free trade area
that will benefit all our citizens," said Mr. Marchi.</font></p>
<p><font face="Courier">"Furthermore, this bolsters Canada's trade and investment links to the world of
the Americas," added the Minister. "These latest initiatives complement our trade
agreements with Mexico and Chile, our discussions toward an enhanced relationship
with Mercosur and our recent successful Team Canada mission to the region."</font></p>
<p><font face="Courier">Dr. José Salazar, Minister of External Trade, signed the FIPA on behalf of Costa
Rica. The following Ministers signed the MOU on behalf of the Central American
Common Market: José Manuel Salazar; Eduardo Ayala Grimaldi, Vice-Minister of the
Economy, </font></p>
<p><font face="Courier">El Salvador; Juan Mauricio Wurmser, Minister of Economy, Guatemala; Reginaldo
Panting, Minister of Commerce, Industry and Tourism, Honduras; Noel Sacasa-Cruz,
Minister of Economy and Development, Nicaragua. </font></p>
<p><font face="Courier">The Canada-Costa Rica FIPA obligates the parties to protect and promote
investment for each other's investors. The agreement provides for rules related
to expropriation, transfer of funds, investor-state and state-to-state dispute
settlement. Under the agreement, both countries agree to make information about
their investment rules available. Canadian firms have sizeable investments in
Costa Rica in banking, hotels, and publishing.</font></p>
<p><font face="Courier">The MOU with the Central American Common Market will result in more regular
meetings between members and Canada in order to </font></p>
<p><font face="Courier">promote trade and investment. The members of the Central American Common Market
are: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.</font></p>
<p><font face="Courier">In San José, Minister Marchi and his counterparts are reviewing the progress of
the FTAA working groups, and deciding on advice to give their heads of government
leading up to the Summit of the Americas in Santiago, Chile, in April. </font></p>
<p><font face="Courier">At the Santiago Summit, Prime Minister Chrétien and the hemisphere's other
leaders plan to launch FTAA negotiations, in keeping with the action plan of the
December 1994 Miami Summit.</font></p>
<p><font face="Courier">- 30 -</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Leslie Swartman</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
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