|
|
|
Regional and Bilateral Agreements
Canada-Costa Rica Free Trade Agreement
Highlights of the Canada-Costa Rica Free Trade Agreement
Barrier-Free Access to Costa Rica
-
Immediate elimination of tariffs on most industrial products upon implementation of this Agreement. This includes some key Canadian export interests such as automotive goods, environmental goods, pre-fabricated buildings and some construction products such as steel structures.
-
Significant gains will be realized for products such as french fries, pulses, grains and oilseeds products, fresh fruit and vegetables and processed food products. About 94% of Canada's current agriculture and agri-food exports to Costa Rica will realize market access benefits.
-
Tariffs on the remainder of goods will be gradually phased-out over a period of either 7 or 14 years, depending on the type of product.
-
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.
Rules of Origin
-
Rules of origin in this Agreement are based on those of the Canada-Chile and Central America-Chile Free Trade Agreements (FTA). They are clearer, more liberal, and will provide greater certainty for exporters.
Trade Facilitation
-
The Canada-Costa Rica FTA represents the first bilateral free trade agreement including 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.
Competition Policy
-
The Canada-Costa Rica FTA builds and expands upon what Canada negotiated in its previous FTAs. The competition policy framework will promote greater transparency and certainty in both markets for business through the establishment of a concrete framework for cooperation and consultation and enhancement of the effectiveness of enforcement activities by competition authorities.
Safeguards
-
As with all of Canada's previous FTAs, Canada and Costa Rica agreed to a bilateral safeguard provision that will allow countries to take a safeguard action in the event of injurious import surges.
Other Highlights
-
Beef and supply-managed dairy, poultry and egg products are exempted from tariff reductions.
-
Discussions on the need for further disciplines in trade in services and investment within 3 years' time are provided for.
-
Improved temporary entry provisions that provide for expedited entry of Canadian investors, business visitors, inter-company transferees and other business professionals are included.
-
Cultural industries are exempted.
-
A mechanism for the effective resolution of State-to-State disputes is included.
-
The FTA signals our continued commitment to the hemisphere and should provide momentum for the Free Trade Area of the Americas.
-
Cooperation agreements on the environment and labour that complement the FTA were negotiated in parallel. This reflects a commitment by Canada and Costa Rica that the protection of the environment and basic workers' rights, through cooperation and the effective enforcement of domestic laws, should go hand in hand with trade liberalization.
Updated on September 20, 2001
|
|
|
