March 19, 1998 No. 64

CANADA TO CHAIR HEMISPHERIC FREE TRADE TALKS

FOLLOWING SUMMIT OF THE AMERICAS

International Trade Minister Sergio Marchi announced today that Canada has accepted the request of the hemisphere's nations to chair negotiations on the Free Trade Area of the Americas (FTAA) for the vital, first 18 months after the Santiago Summit.

This strong endorsement from the region's trade ministers, reached at the FTAA Ministerial in San José, Costa Rica, also means that Canada will host the next ministerial meeting in late 1999.

"The decision to have Canada chair the FTAA process is a great privilege," said Mr. Marchi. "It is also a strong vote of confidence in our ability to get the talks off to a productive start and to guide the process in the critically important first phase."

Canada was also instrumental in the establishment of a committee of government representatives that will receive views from a broad cross-section of society -- such as business, labour, environmental and academic groups -- on how FTAA should evolve.

"The FTAA is a grand project that will affect all our citizens," said the Minister. I am heartened that the hemisphere's nations agree with Canada that we must involve all sectors of our societies in an open, transparent manner."

"Canada's role in the FTAA process is one more important step in our diverse efforts to liberalize trade in the hemisphere," added Minister Marchi. "We have consolidated the North American Free Trade Agreement (NAFTA), signed a free trade agreement with Chile, and are strengthening our links with Mercosur."

On March 18, in Costa Rica, Canada signed a Foreign Investment Promotion and Protection Agreement (FIPA) with Costa Rica, and a Memorandum of Understanding on Trade and Investment with the Central American Common Market. Canada has also begun discussions with the Andean Community on developing a closer trade relationship.

Other key agreements reached at the Ministerial include:

Negotiating groups should begin their work by the end of September 1998.

Nine negotiating groups have been established on: market access; investment; services; government procurement; dispute settlement; agriculture; intellectual property rights; subsidies, antidumping and countervailing duties; and competition policy.

Negotiations will proceed simultaneously in all areas.

Miami has been chosen as the venue for the negotiations for the next three years.

A Consultative Group on Smaller Economies has been created to ensure the concerns of small nations are taken into account in FTAA talks.

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For further information, media representatives may contact:

Leslie Swartman

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca