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<title>CANADA STRENGTHENS LINKS TO CENTRAL AMERICA WITH INVESTMENT AGREEMENT AND AIR NEGOTIATIONS</title>
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<p><font face="Univers" size="+2"></font><font face="Univers" size="+2">September 12, 1996 No. 161</font></p>
<p align="CENTER"><font face="Univers" size="+2">CANADA STRENGTHENS LINKS TO CENTRAL AMERICA WITH
INVESTMENT AGREEMENT AND AIR NEGOTIATIONS</font></p>
<p><font face="Courier">Foreign Affairs Minister Lloyd Axworthy today signed a Foreign Investment
Promotion and Protection Agreement (FIPA) with Panama and offered a date for the
beginning of negotiations to establish air links with Central America. The
Minister is in Guatemala, along with Secretary of State (Latin America and Africa)
Christine Stewart, meeting with the foreign and trade ministers of the seven
Central American countries.</font></p>
<p><font face="Courier">"The Foreign Investment Promotion and Protection Agreement with Panama is a
concrete example of Canada's efforts to encourage closer economic links with
Central America," said Mr. Axworthy. "Once the FIPA is in force, the Canadian
business community can pursue, with greater confidence, opportunities to
strengthen the investment relationship in Panama."</font></p>
<p><font face="Courier">FIPAs are bilateral, reciprocal agreements to promote and protect foreign
investment through legally binding rights and obligations concerning national
treatment, most-favoured-nation treatment, expropriation, transfers of funds,
trade-related investment measures, transparency, and investor-to-state and state-to-state dispute settlements. </font></p>
<p><font face="Courier">The agreement with Panama is based on Canada's model agreement, which incorporates
key provisions from the North American Free Trade Agreement investment chapter.
Under the new agreement, Panama has made significant commitments on investment
protection. Agreements under this model have also been signed with Ukraine,
Latvia, Trinidad and Tobago, the Philippines, South Africa, Romania, Ecuador,
Barbados and Venezuela. Negotiations are already under way with Costa Rica, El
Salvador, Guatemala and Nicaragua.</font></p>
<p><font face="Courier">Minister Axworthy also announced that a Canadian delegation expects to travel to
Central America during the week of November 18, 1996, to begin talks with
representatives of all interested Central American governments on establishing
bilateral air transport negotiations with Canada. "We look forward to the
establishment of increased air links and to the impetus such links will give to
greater trade and economic activity between Canada and Central America," said
Mr. Axworthy. To date, Costa Rica, El Salvador and Guatemala have each asked to
negotiate a bilateral air agreement with Canada. </font></p>
<p align="CENTER"><font face="Courier">- 30 -</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Catherine Lappe</font></p>
<p><font face="Courier">Director of Communications</font></p>
<p><font face="Courier">Office of the Minister of Foreign Affairs</font></p>
<p><font face="Courier">(613) 995-1851</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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