Backgrounder - Developing partnerships, trade and investment initiatives in Chile

Prime Minister Stephen Harper today announced the following initiatives aimed at strengthening Canada’s ties with the Americas, and highlighting Canadian leadership in developing partnerships, trade and investment initiatives in Chile.

Partnership with Chile in Key Sectors

The Canada-Chile Free Trade Agreement, the cornerstone of the bilateral economic relationship, has been of mutual benefit to both countries for 10 years and has been the catalyst for the overall bilateral partnership.

Based on this shared vision, the two countries will seek to expand and intensify future relations through a strategic partnership.

The Canada-Chile Partnership Framework is a commitment to enhance and sustain partnership in key sectors, including economic relations, global and hemispheric cooperation, energy, health, agriculture, innovation, science and technology, climate change and the environment, education and youth exchanges.

The framework is focused, advancing shared objectives on bilateral and international issues, while projecting the Canada-Chile relationship throughout the region as a model for balanced economic and social policies.

Leadership Exchange Scholarship Program

To support the development of educational and people-to-people links, the Canada-Chile Leadership Exchange Scholarship Program will allow Chilean university and college students to spend six months studying at Canadian educational institutions.

The program includes approximately 250 short-term scholarships, over 10 years, and is designed to provide Chilean students access to Canadian education, facilitate the development of institutional linkages, and increase collaboration and partnerships in learning and research.

Investment Promotion - Memorandum of Understanding

The memorandum of understanding (MOU) on investment promotion between Chile and Canada calls on both countries to work in close partnership to broaden and deepen investment ties, to identify mutual areas of cooperation, and provide a framework to stimulate business activity among private enterprises in the two countries.

Canada is the third largest investor in Chile and the most important in the mining sector. Chilean investment in Canada is still limited; however, this MOU will enhance Chilean investment possibilities in Canada. During the last meeting of the Canada-Chile Free Trade Commission in June, it was agreed to increase the promotion of foreign investment between the two countries.

Financial Services Chapter for the Canada-Chile Free Trade Agreement

The Canada Chile Free Trade Agreement, which came into force in 1997, included a commitment to negotiate a financial services chapter at a later date. The negotiations, recently concluded by the finance ministries of Canada and Chile, will allow access to markets for cross-border provision of financial services and for investment in financial institutions. The development of these disciplines responds to Canadian financial institutions that have identified Chile as a priority market for banking and asset management. 

The exchange of legal texts on the financial services chapter will take place in the near future.

New Export Development Canada Office in Chile

Export Development Canada (EDC) will open a new office in Santiago to better assist Canadian exporters working in Chile and other South American countries. EDC will offer its full range of insurance and finance products to Canadian exporters seeking access to Chile and the region’s growing markets in a wide range of sectors, including mining, telecommunications, energy and transportation. 

EDC will also act as another mechanism for marketing Canadian capabilities to the growing economies of South America, a region with significant and growing Canadian investment and trade.     

The opening of this new office builds upon the tremendous success of our free trade agreement with Chile. It will also ensure that Canadian exporters receive more direct and targeted support in accessing hemispheric markets.