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<title>STATEMENT BY CANADAAT THETHIRD WESTERN HEMISPHERETRADE MINISTERIAL - BELO HORIZONTE, BRAZIL</title>
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<p><font size="+1"></font><font face="Univers" size="+1"></font><font face="Univers" size="+1">97/25</font></p>
<p align="CENTER"><font face="Univers" size="+1">STATEMENT BY CANADA</font></p>
<p align="CENTER"><font face="Univers" size="+1">AT THE</font></p>
<p align="CENTER"><font face="Univers" size="+1">THIRD WESTERN HEMISPHERE</font></p>
<p align="CENTER"><font face="Univers" size="+1">TRADE MINISTERIAL</font></p>
<p><font face="Univers" size="+1">BELO HORIZONTE, Brazil</font></p>
<p><font face="Univers" size="+1">May 16, 1997</font></p>
<p><font face="Univers">This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca</font><font face="Univers" size="+1"></font></p>
<p><font face="Courier">Canada is encouraged by the progress made in the preparations on a Free Trade Area
of the Americas [FTAA]. We are pleased with the continued determination of all 34
countries to work together to achieve our common objective. We want an agreement
that will maximize market openness and contribute to greater prosperity throughout
the hemisphere. Our heads of government will meet again in Santiago, Chile, in
March of 1998 and we will report what we have achieved toward the realization of
that goal. What will we tell them?</font></p>
<p><font face="Courier">A major turning point this year was the emergence of a consensus on the approach
and timing of negotiations. In our view, there is convergence on certain elements
of a Free Trade Area of the Americas, which:</font></p>
<p><font face="Courier"> is a single undertaking based on a comprehensive package of mutual rights and
obligations;</font></p>
<p><font face="Courier"> co-exists with agreements in the hemisphere;</font></p>
<p><font face="Courier"> builds on the WTO [World Trade Organization] and has as its objectives the
further liberalization of trade in goods and services;</font></p>
<p><font face="Courier"> has clear and predictable rules of origin;</font></p>
<p><font face="Courier"> provides for disciplines on investment;</font></p>
<p><font face="Courier"> allows for negotiations by countries individually or as members of sub-regional
units;</font></p>
<p><font face="Courier"> will by the year 2005 at the latest have concluded negotiations.</font></p>
<p><font face="Courier">When trade ministers met in Cartagena last year, Canada sought answers to three
questions, the "what," the "how" and the "when" of negotiations. We now have
answers to two of those questions. We have agreement in principle on the basic
level of obligations and on the overall approach to negotiations. We need to agree
today to begin the negotiations in Santiago next year.</font></p>
<p><font face="Courier">We are convinced that while areas requiring resolution remain, we are on the
threshold of reaching an agreement to negotiate an FTAA that will allow us to
realize the objective of our leaders. We should set out an ambitious work program
between now and our next meeting in San José in nine months. </font></p>
<p><font face="Courier">Today, we should establish a preparatory committee at the vice ministerial level
to develop a program of negotiation. It should identify the best possible
approach, including the establishment of a negotiating committee and the number
and mandate of issue-specific negotiating groups. </font></p>
<p><font face="Courier">We believe that we can work with fewer negotiating groups and we are open to
recommendations on how many there should be and in what sectors or disciplines
they should be concentrated.</font></p>
<p><font face="Courier">Setting out the timetable for negotiations on specific issues will require
considerable flexibility but there is an opportunity for us to agree on a
framework that will meet our collective needs and expectations. Canada is on
record as favouring a program that initiates negotiations in all substantive areas
at the same time. Some negotiating groups will go faster than others. But
negotiations should begin at the same time in all areas. </font></p>
<p><font face="Courier">We support the proposal to conduct a feasibility study on the options for
establishing a small secretariat to assist us during the negotiations.</font></p>
<p><font face="Courier">There are serious issues that require our attention. In a hemisphere where there
are different levels of development and sizes of economies, there is no simple
solution to facilitate the removal of barriers, open markets and achieve trade
liberalization. However, we believe that there is a will to find creative
solutions. Canada believes that the FTAA is a means to realize the economic
prosperity needed to achieve our social aspirations.</font></p>
<p><font face="Courier">The examination of market access issues requires a great deal of time and effort.
We must begin our discussions now if we hope to make the progress required to
begin the elimination of tariffs and non-tariff barriers by 2005. This, in the
eyes of the Canadian business community, is the core of any free trade agreement.</font></p>
<p><font face="Courier">Initiating negotiations on substantive issues is critical not only to the FTAA
process but also to demonstrate to business leaders and investors, particularly
those outside the hemisphere, that we mean business. If we do not signal our
intent now to launch the negotiations in Santiago and begin the negotiations soon,
business leaders and investors in the hemisphere and elsewhere will lose interest.
The attention of governments will be attracted to other regions and issues. The
momentum we have built will be lost. We must make the necessary decisions today to
seize this historic opportunity.</font></p>
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