March 18, 1998 No. 59

CANADA SIGNS AGREEMENTS WITH COSTA RICA AND

CENTRAL AMERICAN COMMON MARKET IN SAN JOSÉ

International Trade Minister Sergio Marchi signed two agreements today in San José, Costa Rica, that demonstrate Canada's continuing commitment to liberalize trade and investment in the Americas.

While attending a meeting of the hemisphere's trade ministers on the Free Trade Area of the Americas (FTAA), Minister Marchi signed a Foreign Investment Promotion and Protection Agreement (FIPA) with Costa Rica, and a Memorandum of Understanding (MOU) on Trade and Investment with the Central American Common Market.

"As we head into the Summit of the Americas in Santiago, Chile, I am optimistic that these agreements help our work in building a hemisphere-wide free trade area that will benefit all our citizens," said Mr. Marchi.

"Furthermore, this bolsters Canada's trade and investment links to the world of the Americas," added the Minister. "These latest initiatives complement our trade agreements with Mexico and Chile, our discussions toward an enhanced relationship with Mercosur and our recent successful Team Canada mission to the region."

Dr. José Salazar, Minister of External Trade, signed the FIPA on behalf of Costa Rica. The following Ministers signed the MOU on behalf of the Central American Common Market: José Manuel Salazar; Eduardo Ayala Grimaldi, Vice-Minister of the Economy,

El Salvador; Juan Mauricio Wurmser, Minister of Economy, Guatemala; Reginaldo Panting, Minister of Commerce, Industry and Tourism, Honduras; Noel Sacasa-Cruz, Minister of Economy and Development, Nicaragua.

The Canada-Costa Rica FIPA obligates the parties to protect and promote investment for each other's investors. The agreement provides for rules related to expropriation, transfer of funds, investor-state and state-to-state dispute settlement. Under the agreement, both countries agree to make information about their investment rules available. Canadian firms have sizeable investments in Costa Rica in banking, hotels, and publishing.

The MOU with the Central American Common Market will result in more regular meetings between members and Canada in order to

promote trade and investment. The members of the Central American Common Market are: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.

In San José, Minister Marchi and his counterparts are reviewing the progress of the FTAA working groups, and deciding on advice to give their heads of government leading up to the Summit of the Americas in Santiago, Chile, in April.

At the Santiago Summit, Prime Minister Chrétien and the hemisphere's other leaders plan to launch FTAA negotiations, in keeping with the action plan of the December 1994 Miami Summit.

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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