It's Your Turn
Canada-Andean Countries - Free Trade Discussions
Consultations on Possible Trade Negotiations with the Andean Community Countries
Notice published in the Canada Gazette, November 2nd, 2002
The Government of Canada is seeking the views of Canadians on the scope of a possible free trade agreement between Canada and the countries of the Andean Community (Bolivia, Colombia, Ecuador, Peru and Venezuela).
Background
On August 7, 2002, the Government of Canada announced that it would begin preliminary talks with members of the Andean Community on a possible free trade agreement (FTA). An FTA between Canada and the Andean countries will strengthen our economic relations and foster socio-economic development in the region. It was agreed that the two sides would initiate exploratory discussions on enhancing our trade relationship. As part of these discussions, the Government of Canada will undertake extensive domestic consultations with business, citizen-based organizations and individual Canadians, as well as with the provincial and territorial governments, to obtain advice and views on priorities, objectives and concerns to help define the possible scope of this initiative.
The Andean countries are important trading partners for Canada. In 2001, bilateral trade in goods reached $3.6 billion, $1.5 billion in Canadian exports and $2.1 billion in imports. Cumulative Canadian investment in the Andean countries totalled $3.6 billion. In 2001, major Canadian exports to the Andean region consisted of cereals, paper and paperboard, machinery, optical and medical instruments, vehicles, and ores and minerals. Main imports include mineral fuels and oil, bananas, coffee and cut flowers.
In 2001, Venezuela was Canada's largest trading partner in the Andean region, with Canadian exports of goods reaching $812 million and imports from this country totalling $1.4 billion. Corresponding data for Colombia, Canada's second largest partner in the region, were $361 million and $416 million in imports and exports, respectively, followed by Peru ($178 million and $251 million), Ecuador ($133 million and $134 million) and Bolivia ($15.8 million and $10.5 million).
There is significant potential for Canadian companies in several priority export sectors, such as telecommunications equipment and services, environmental equipment and services, value-added processed foods, automotive parts and construction.
A free trade agreement with the Andean countries would improve our trade and political ties with these economies, and further advance Canada's foreign policy objectives in the region. In particular, an FTA would strengthen peace and democracy, promote macro-economic stability and growth, as well as poverty alleviation, and contribute to the shared goal of deepening development through economic integration within the Western Hemisphere. An FTA would also provide added impetus for the Free Trade Area of the Americas.
General Relations
Internationally, cooperation between Canada and the Andean countries extends across a range of fora, from the United Nations and the World Trade Organization, to the Organization of American States, the Summit of the Americas process and the Free Trade Area of the Americas. All five Andean countries are also States Parties to the Ottawa Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on Their Destruction.
A number of commercial agreements have been concluded over the years in an attempt to promote bilateral trade. Foreign Investment Protection Agreements have been signed with Ecuador and Venezuela. A Double Taxation Agreement (DTA) has been implemented with Ecuador. DTAs with Peru and Venezuela have been negotiated and are still awaiting ratification by their respective legislative assemblies. In 1999, Andean Community member countries signed the Canada-Andean Community Trade and Investment Cooperation Arrangement.
Development assistance plays a significant role in relations with the Andean countries. In 2000-2001, over $40 million were disbursed for Canadian International Development Agency (CIDA)-funded development projects.
Additional information on the Andean Community and Canada's relationship with the region can be found at:
Submissions by Interested Parties
The Government of Canada seeks the views of all interested Canadians on priorities, objectives and concerns with regard to a possible free trade agreement with the Andean Community. In particular, we are seeking views with respect to the following:
- Opinions on areas of export interest, including products for which the Andean Community should eliminate barriers. The Government is also seeking views on products for which there may be concerns if access to the Canadian market for exports from the Andean Community were to be improved, including opinions on the staging of any concessions.
- Views on general rules of origin issues and/or advice on appropriate rules of origin or procedures for specific products or sectors.
- Suggestions on "trade facilitation" issues, e.g. significant impediments related to import procedures.
- Advice, views and experiences with customs-related/immigration issues for both business travellers and commercial goods entering and/or leaving the region.
- Advice and views on general investment issues to be included in the scope of the investment negotiations, the types of problems faced by Canadian investors in the Andean Community region and the type of investment rules that would provide better access, treatment, protection and predictability for investments.
- Advice and views on general cross-border trade in services issues to be included in the scope of negotiations, services sectors in the Andean Community region that could be of interest for further liberalization, and opinions on measures affecting access, including regulatory measures that may restrict cross-border trade in services.
- Advice and views on the possible inclusion of competition policy within the scope of the negotiations.
- Views on ways to reflect the interests and values of Canadians in the area of environmental protection.
- Views on ways to reflect the interests and values of Canadians in the areas of labour rights.
- Views on ways to reflect the interests and values of Canadians in the areas of human rights, culture and other social concerns, as they relate to a possible free trade agreement with the Andean Community.
- Views on the development implications of any of the foregoing for the Andean Community countries, including but not limited to Canadian concessions or complementary measures that could particularly favour sustainable development in the region, and areas or sectors whose particular social or economic vulnerability warrants special consideration in any negotiation.
- Views on any other related issues.
All interested parties are invited to submit their views by December 20, 2002. Please be advised that any information we receive as a result of this consultation will be considered as public information, unless explicitly stated otherwise. Submissions should include:
- the contributor's name and address, and, if applicable, his/her organization, institution or business.
- the specific issues being addressed.
- precise information on the rationale for the positions taken, including, for example, anticipated effects on employment and production in Canada, on import and export interests, on social and environmental interests or on any other economic interest in Canada.
Contributions can be sent by e-mail, fax or mail to:
E-mail:
consultations@dfait-maeci.gc.ca
Fax:
(613) 944-0757
Address:
Trade Negotiations Consultations (Andean Countries)
Trade Policy Planning Division (EAI)
Department of Foreign Affairs and International Trade Canada
Lester B. Pearson Building
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Updated on November 4, 2002
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