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<title>MINISTER PETTIGREW TABLES LEGISLATION IN PARLIAMENT TO IMPLEMENT CANADA-COSTA RICA FREE TRADE AGREEMENT</title>
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<p><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong></strong></font><font face="Arial" size="+1"><strong>September 20, 2001 <em>(10:15 a.m. EDT)</em> No. 130</strong></font><font face="Arial" size="+1"></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>MINISTER PETTIGREW TABLES LEGISLATION IN PARLIAMENT TO
IMPLEMENT CANADA-COSTA RICA FREE TRADE AGREEMENT</strong></font><font face="Arial"></font></p>
<p><font face="Arial">International Trade Minister Pierre Pettigrew today tabled in the House of
Commons legislation to implement the Canada-Costa Rica Free Trade Agreement.</font></p>
<p><font face="Arial">"This free trade agreement with Costa Rica will improve and deepen our trade and
political ties with one of Latin America's most dynamic economies," said Mr.
Pettigrew. "The agreement also signals our continued commitment to pursuing
liberalized trade in our hemisphere, with countries both big and small."</font></p>
<p><font face="Arial">The agreement includes better access for Canadian fish, paper products, auto
parts, plastics, wood and agricultural goods. The deal will also reduce red tape
and border procedures for Canadians doing business in Costa Rica. It is expected
the agreement will provide momentum for Free Trade Area of the Americas
negotiations.</font></p>
<p><font face="Arial">Two additional agreements on environmental and labour co-operation were
negotiated in parallel and will help Costa Rica strengthen its environmental and
labour management systems while reaping the benefits of increased trade with
Canada.</font></p>
<p><font face="Arial">The main elements of the free trade agreement are as follows:</font></p>
<p><font face="Arial">• Immediate elimination, upon implementation of this agreement, of Costa Rican
tariffs on most Canadian exports of industrial products such as automotive and
environmental goods and pre-fabricated buildings. Tariffs on the remainder of
industrial products will be gradually phased out over a period of either 7 or
14 years, depending on the type of product.</font></p>
<p><font face="Arial">• Significant gains will be realized for Canadian agricultural products, such as
french fries, pulses, grain and oilseed products, fresh fruit and vegetables and
processed food products. About 94 percent of Canada's current agriculture and
agri-food exports to Costa Rica will realize market access benefits.</font></p>
<p><font face="Arial">• Canadian exporters will gain an important advantage over their principal
competitors in the Costa Rican market, including U.S., European and Asian
suppliers, as well as, ultimately, a level playing field with Costa Rica's other
preferential trade partners, such as Mexico and Chile.</font></p>
<p><font face="Arial">• The Canada-Costa Rica Free Trade Agreement represents the first bilateral free
trade agreement to include innovative stand-alone procedures on trade
facilitation. Canadian exporters will benefit from the increased efficiency of trade
procedures and the reduction, simplification and modernization of border-related
requirements, procedures and formalities.</font></p>
<p><font face="Arial">• The competition policy framework included in the agreement will promote
greater transparency and certainty in both markets for business through the
establishment of a concrete framework for co-operation and consultation and
enhancement of the effectiveness of enforcement activities by competition
authorities. </font></p>
<p><font face="Arial">Two-way trade in merchandise between Canada and Costa Rica rose to about
$270 million in 2000, led by a 25 percent jump in exports. </font></p>
<p><font face="Arial">Negotiations with Costa Rica were launched in June 2000 and concluded in early
April 2001. The free trade agreement and the two parallel accords are slated to
come into force in January 2002, providing there is successful completion of the
legislative implementation process in both countries.</font></p>
<p align="CENTER"><font face="Arial">- 30 -</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Sébastien Théberge</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
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