Regional and Bilateral Initiatives
Canada-Colombia-Peru Free Trade Discussions
A free trade agreement (FTA) with Colombia and Peru would improve
our trade and economic ties with the region and demonstrate Canada’s
commitment to trade liberalization. Pursuing an FTA would also support
Canada’s broader foreign policy and development objectives
of deepening our engagement in the Americas and provide a platform
for dialogue and cooperation on such issues as labour and the environment.
Colombia and Peru represent established and growing markets for
Canadian exporters and investors. As stated in the Government's
Economic plan, Advantage Canada, it is in Canada's national interest
to be open to free trade opportunities and help Canadian business
compete in global markets.
Update
On June 7, 2007, The Honourable David Emerson, Minister of International
Trade, announced the launch of negotiations towards an FTA between
Canada and Colombia and Peru. (See News
Release and Backgrounders – June 7, 2007). The first negotiating
round was held in Lima (July 16-20, 2007) and the second round took
place in Ottawa (October 1-5, 2007). The third negotiating session
was held from October 1 to 5, 2007, in Bogota, Colombia. On that
occasion, Canada, Colombia and Peru discussed a wide range of issues,
such as market access for goods and services, investment, government
procurement, labour, environment and trade-related cooperation.
The negotiations were productive. A fourth round of negotiations
is scheduled to take place from November 26 to 30 in Lima, Peru.
Negotiations are taking place on a wide range of issues, including
on trade in goods, rules of origin, customs procedures, trade facilitation,
non-tariff measures, cross-border trade in services, financial services,
temporary entry, investment, government procurement, competition,
intellectual property, e-commerce, dispute settlement and institutional
provisions. In keeping with Canada's approach to FTA negotiations,
Canada is also seeking to address the social dimensions of economic
integration through the negotiation of provisions on labour and
environment.
Background
In August, 2002, the then Minister for International Trade announced
that Canada and the Andean countries (Bolivia, Colombia, Ecuador,
Peru and Venezuela) had agreed to begin exploratory discussions
towards a proposed FTA. Venezuela has since withdrawn from the Andean
Community. As part of the exploratory discussions, the Minister
for International Trade launched 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. (For more information,
see the News
Release and the Canada Gazette
Notice of November 2, 2002). Consultations indicated broad support
for an FTA. The Government will continue to actively engage stakeholders
to ensure that their interests and concerns are taken into account
in negotiations. We continue to welcome your comments and questions
on this initiative at consultations@international.gc.ca
and at the address below.
Canada and the Andean Community countries (Bolivia, Colombia, Ecuador
and Peru) met on December 14 and 15, 2006, in Bogota, Colombia,
to build on earlier exploratory discussions and exchange views on
a wide number of issues which could be raised in the context of
future FTA negotiations. At this time, Colombia and Peru are interested
and prepared to work with Canada to negotiate a high quality FTA.
Canada will be prepared to consider the possibility of negotiations
with Ecuador and Bolivia at a later time.
Guided by the new government’s Budget 2007, its November
2006 Advantage Canada economic plan and its commitment to pursue
more bilateral free trade agreements, along with the Prime Minister’s
pledge to re-engage relationships throughout the Americas, the government
has reconfirmed its interest in an FTA with Colombia and Peru.
Colombia and Peru are established and growing commercial partners
for Canada. Two-way trade in goods between Canada and Colombia totalled
$1.15 billion in 2006, with Canadian merchandise exports increasing
by 14.5% over the previous year to $513 million. Over the same period,
imports from Colombia increased by 9.1% to $634 million. Major Canadian
exports consist of cereals, paper (newsprint), off-road dump trucks,
machinery and electrical equipment and leguminous vegetables. Top
imports to Canada from Colombia include coal, fuel, coffee, bananas,
cut flowers and sugars. Canadian direct investment stock in Colombia
amounted to $453 million in 2006 according to official statistics,
and has been concentrated in the oil exploration, mining, printing,
footwear, food processing, education and household paper sectors.
Canadian commercial services exports to Colombia totalled $41 million
in 2005. Canada's key services interests in Colombia include oil
and gas, mining services, engineering services, architectural, environmental
services, distribution services and information technology.
Canada’s trade in goods with Peru has expanded significantly
in the past years and two-way trade totalled $2.38 billion in 2006.
The value of Canadian merchandise exports to Peru was $289 million
for 2006, representing an increase of 9.1% over the previous year.
Imports totalled $2.1 billion, an increase of 54.3% over 2005. Major
Canadian merchandise exports to Peru are cereals, machinery and
electrical equipment, leguminous vegetables and paper. Major imports
from Peru consist of gold, copper and other ores, asparagus and
fishmeal. Canada is Peru’s most important foreign direct investor
in the mining sector and among the largest overall foreign investors
with an estimated $2.9 billion of investment stock in Peru in 2006.
The banking and printing sectors are also significant destinations
for Canadian direct investment in Peru. Peru was the destination
for $46 million of Canadian commercial services exports in 2004.
Canada's key services interests in Peru include oil and gas services,
mining services, engineering services, architectural services, environmental
services, distribution services, financial services and information
technology.
A bilateral free trade agreement with Colombia and Peru could
deliver significant commercial benefits across many sectors of the
Canadian economy, including in a range of agriculture and agri-food
products (e.g. wheat, pulses, frozen fruits and vegetables, animal
feed, meats), mining and hydro-electrical equipment and services
sectors (e.g. mining, engineering, architectural, environmental,
distribution, financial and information communication technology).
In some of these sectors, tariffs range from 4-25% in Peru and 5-60%
in Colombia.
Benefits for Canadians
Canadians would benefit from an FTA with the Andean Community countries
of Colombia and Peru. Below is some general and sector specific
information that outlines these benefits.
Quick Fact Sheet
Sector Specific Information:
General Information
- An FTA with the Andean Community countries of Colombia and Peru: Qualitative Economic Analysis
(html | pdf)
Contact Point
If you have questions or comments about this initiative we would
like to hear from you. Please contact Foreign Affairs & International
Trade Canada at:
Regional Trade Policy Division (TBB)
Foreign Affairs & International Trade Canada
Lester B. Pearson Building
125 promenade Sussex Drive
Ottawa, Ontario, K1A 0G2
Fax: 613-944-3489
E-mail : consultations@international.gc.ca
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