Strategic Environmental Assessment of the Free Trade Area of the Americas (FTAA)
Notice published in the Canada Gazette, March 16, 2002
Notice that the Government of Canada will Begin Conducting a Strategic Environmental Assessment on the Free Trade Area of The Americas
The Government of Canada intends to conduct an environmental assessment on the Free Trade Area of the Americas (FTAA) and invites comments on the likely environmental impact on Canada of this free trade agreement.
Background
The Government of Canada is committed to sustainable development. Mutually supportive trade and environmental policies can contribute to this commitment. Toward this end, the Minister for International Trade, with the support of his Cabinet colleagues, has directed trade officials to improve their understanding of, and information base on, the relationship between trade and environment issues at the earliest stages of decision-making, and to do this through an open and inclusive process. The environmental assessment of trade negotiations is critical to this work.
In keeping with the 1999 Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals (1999 Cabinet Directive), Canada has committed to conducting Strategic Environmental Assessments of trade negotiations. A Strategic Environmental Assessment, referred to simply as an environmental assessment (EA), is a systematic process of identifying and evaluating likely and significant environmental impacts of an initiative. The objective of such an assessment is to integrate environmental considerations into the decision-making process from the earliest stages of an initiative. Although the FTAA negotiations were launched before the 1999 Cabinet Directive, the Government of Canada decided, given the scope and time lines of the negotiating process, that it would undertake an EA of the FTAA.
The Free Trade Areas of the Americas
The FTAA was conceived in principle at the inaugural Summit of the Americas in Miami in 1994. Following several years of preparatory work, Leaders of the 34 participating countries launched the FTAA negotiations at the 1998 Santiago Summit. The FTAA was initiated in the context of the Summit's goal to achieve sustainable growth and development through greater economic integration and, as such, is intended to reinforce broader Summit objectives, such as improving human rights, promoting democratic development and eradicating poverty. In addition to liberalizing trade, the FTAA holds the potential to secure improved market access commitments in the services sector and to establish stronger investment protection measures throughout the hemisphere.
The 830 million people of the Americas make up about one seventh of the world's population. The region has a combined gross domestic product of about $17 trillion, more than one third of the world's economic activity and greater than the gross domestic product of the European Union. If completed, the FTAA will be the world's largest free trade area. It will include Canada, our North American Free Trade Agreement (NAFTA) partners, and all the other democratic countries of South and Central America and the Caribbean.
In order to achieve the FTAA, nine FTAA Negotiating Groups were established when negotiations were launched in 1998, with mandates from Ministers to negotiate in specific substantive areas: market access, investment, services, government procurement, dispute settlement, agriculture, intellectual property rights, subsidies, antidumping and countervailing duties, and competition policy. In addition, four FTAA entities were created to address horizontal issues related to the negotiations: smaller economies, civil society, electronic commerce, and technical and institutional issues. The negotiating groups and these other FTAA entities meet regularly throughout the year.
The most recent FTAA Ministerial Meeting was held in Buenos Aires on April 7 and 8, 2001. This Ministerial counted a number of significant achievements, particularly with respect to Canadian priorities and initiatives. A major result was the endorsement by trade ministers of Canada's proposal to release the FTAA draft negotiating texts. These texts can be found at: www.dfait-maeci.gc.ca/tna-nac/ftaa_neg-en.asp. The FTAA negotiations are to be concluded by January 2005 and the Agreement implemented by December 2005. To learn more about the negotiations, you are invited to visit: www.ftaa-alca.org/view_e.asp.
The FTAA is a vote of confidence in the region's future. Complementing trade negotiations with analysing the environmental impact of the FTAA on Canada will ensure that environmental considerations are integrated into the decision-making process of the negotiations.
The Environmental Assessment of the FTAA
In keeping with the 1999 Cabinet Directive requiring federal departments to consider the environmental impacts of policy initiatives, the Department of Foreign Affairs and International Trade (DFAIT) developed the Framework for Conducting Environmental Assessments of Trade Negotiations (Framework) which was published in February 2001. It should be noted that the Framework is intended to be applied in a flexible fashion, so that it can be adapted and applied to a variety of trade negotiations on a case-by-case basis according to the nature of the agreement to be negotiated. To reflect its commitment to sustainable development, the Government of Canada committed to an EA of the likely environmental impacts on Canada of the proposed creation of the FTAA.
An environmental assessment of a trade negotiation has two key objectives:
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To assist Canadian negotiators integrate environmental considerations into the negotiating process by providing information on the environmental impacts of the proposed trade agreements; and
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To address public concerns by identifying which environmental factors are being considered in the course of the trade negotiations.
The process of conducting an EA will be applied to the FTAA in accordance with the following steps:
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The announcement of the intent to conduct an EA, which is reflected in this Canada Gazette government notice;
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The preparation of an Initial EA (which will define the scope of the more complete quantitative analysis to be carried out in the next stage);
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The preparation of a Draft EA (which will carry out an in depth analysis of the issues raised in the Initial EA);
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And the preparation of a Final EA (which will be released after the conclusion of negotiations).
In each of the stages above, the following method of analysis will be followed:
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Identify the economic effects of the negotiation in Canada;
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Identify the likely environmental impacts in Canada of such changes;
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Assess the significance of the likely environmental impacts; and
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Identify enhancement/mitigation options to inform the negotiation process.
An Environmental Assessment Committee has been formed to undertake the analysis as outlined in the Framework. Coordinated by DFAIT, the FTAA Environmental Assessment Committee includes representatives from many federal government departments and agencies. An important responsibility of the Environmental Assessment Committee will be the consideration of input from stakeholders in the formulation of the reports at each stage. Views from other levels of government, aboriginal groups, Sectoral Advisory Groups on International Trade (SAGITs), business groups and the public will also be sought.
For further information, or to view the Guidelines on Implementing the 1999 Cabinet Directive, please visit the Canadian Environmental Assessment Agency's website at: www.acee-ceaa.gc.ca. For the full text of the Framework for Conducting Environmental Assessments of Trade Negotiations, please refer to: www.dfait-maeci.gc.ca/tna-nac/Environment-e.asp.
Submissions by Interested Parties
All interested parties are invited to submit their views on environmental matters related to the negotiations of the FTAA by May 14, 2002. Please be advised that any information we receive as a result of these consultations will be considered public information although you may, in your submission, indicate if there is any sensitive information of which the Government should be aware. Submissions should include:
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The contributor's name and address, and, if applicable, their organization, institution or business;
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The specific issues being addressed; and
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Precise information on the rationale for the positions taken.
Contributions can be sent by e-mail, fax or mail to:
E-Mail: consultations@dfait-maeci.gc.ca
Fax: (613) 944-0757
Address: FTAA Environmental Assessment Consultations
Trade Policy Planning Division (EAI)
Department of Foreign Affairs and International Trade
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Updated on March 27, 2002
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