It's Your Turn
Notice published in the Canada Gazette, December 15, 2001
Consultations on Trade Negotiations with the Caribbean Community and Common Market (CARICOM)
The Government of Canada is seeking the views of Canadians on the possible scope of a free trade agreement between Canada and the countries of the Caribbean Community and Common Market (CARICOM).
Background
At the Summit between Canada and the CARICOM that took place on January 19, 2001, in Montego Bay, Jamaica, CARICOM leaders approached Prime Minister Chrétien with a request to develop a stronger, more mature trading relationship between Canada and the CARICOM, which could lead to the negotiation of a free trade agreement. It was agreed that the two sides would initiate exploratory discussions on enhancing our trade relationship. As a 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 CARICOM countries offer Canadian companies a growing market for computers and components, and telecommunications equipment. Demand remains strong for traditional Canadian exports such as food and consumer products. Prospects for growth are also promising for products and services in the agri-food sector, energy (petrochemical and hydro), education, health, building materials and housing, transportation, environment and utilities (e.g., water and sewerage, waste management), and tourism.
In 2000, Canada exported C$346.91 million worth of goods to the CARICOM and imported C$539.98 million, for two-way merchandise trade of C$886.89 million. Global trade levels for the Community reached approximately US$15.4 billion in 1999, according to the Inter-American Development Bank (2000 figures are not yet available).
A free trade agreement with the CARICOM would strengthen our trade and political ties with the region's growing economies, and contribute to the shared goal of deepening development through economic integration within the Western Hemisphere.
General Relations
Canada maintains close and friendly relations with all countries of the Commonwealth Caribbean (Antigua and Barbuda, Bahamas (not a member of the Common Market), Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago and Montserrat ). This relationship is based on our common heritage and democratic tradition, trade and investment links, official development assistance, tourism, and the ties of family and friendship resulting from the large community of Canadians of Caribbean origin in Canada. Internationally, our cooperation extends across a range of fora, from the United Nations and the World Trade Organization, to the Organization of American States and the Summit of the Americas process, to our long-standing shared membership in the Commonwealth.
Two-way merchandise trade between Canada and CARICOM is significant, amounting to C$887 million in 2000; this figure does not capture many goods transshipped through the USA. Canadian investments in the region, centred in the financial, mining and energy sectors, have reached C$25 billion, making it our third most important investment destination after the United States and the United Kingdom. Moreover, some C$200 million in consulting and engineering contracts in the Caribbean are won by Canadian firms annually. Leading Canadian exports to the region include fisheries and agri-food products, telecommunications equipment, computers, paper (including newsprint), furniture and pharmaceuticals. Our imports are led by gold, alumina/bauxite, fisheries and agri-food products, mineral fuels, petroleum oils, steel rods and industrial chemicals.
The thirteen Commonwealth members of CARICOM benefit from CARIBCAN, a one-way preferential trade arrangement introduced in 1986 that, together with the General Preferential Tariff and Most Favoured Nation treatment, extends duty-free access to the Canadian market for approximately 96% of imports from the Commonwealth Caribbean. Items exempted under the arrangement include some textiles, clothing and footwear, as well as certain agricultural products including products subject to tariff rate quotas. Canada and CARICOM also have in place a Trade and Economic Cooperation Agreement, which offers a general framework for dialogue and bilateral cooperation.
The Commonwealth Caribbean is a major recipient (on a per capita basis) of Canadian official development assistance, receiving approximately C$26 to C$29 million annually. The Canadian Government, through the Canadian International Development Agency, supports programs to strengthen the capacity, competitiveness and sustainable development of CARICOM countries and enhance their cooperation within CARICOM.
Additional information on CARICOM and Canada's relationship with the region can be found at: www.caricom.org, www.dfait-maeci.gc.ca/menu-e.asp, www.iadb.org, www.acdi-cida.gc.ca/index.htm
Submissions by Interested Parties
Consulting with Canadians on our mutual goals is an important part of how Canadian trade policy is formulated. It is essential that the Government of Canada be fully aware of the interests and sensitivities of Canadians with respect to this initiative. Therefore, we welcome advice and views on any priorities, objectives and concerns with regard to a free trade agreement with CARICOM. In particular, we are seeking views with respect to the following:
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Opinions on areas of export interest, including products for which CARICOM should eliminate barriers. The Government is also seeking views on products for which there may be concerns if access to the Canadian market for CARICOM products were to be improved, including opinions on the staging of any concessions.
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Views on general rules of origin issues and/or advice on appropriate rules of origin or procedures for specific products or sectors.
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Suggestions on "trade facilitation" issues, e.g. significant impediments related to import procedures.
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Advice, views and experiences with customs-related issues for both travellers and commercial goods entering and/or leaving the region.
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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 CARICOM region and the type of investment rules that would provide better access, treatment, protection and predictability for investments.
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Advice and views on general cross-border trade in services issues to be included in the scope of negotiations, services sectors in the CARICOM 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.
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Advice and views on the possible inclusion of competition policy within the scope of the negotiations.
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Views on ways to reflect the interests and values of Canadians in the area of environmental protection.
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Views on ways to reflect the interests and values of Canadians in the areas of labour rights, human rights, culture and other social concerns, as they relate to a possible free trade agreement with CARICOM.
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Views on the development implications of any of the foregoing for CARICOM 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.
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Views on any other related issues.
All interested parties are invited to submit their views by February 22, 2002. Please be advised that any information we receive as a result of this consultation will be considered as public information. 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.
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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 (CARICOM)
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 December 15, 2001
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