Regional and Bilateral Initiatives
Canada - Central America Four (CA4)
Free Trade Agreement Negotiations
The purpose of Canada’s free trade agenda is to enhance its
economic prosperity and help provide the foundation for sustainable
economic and social development. Canada’s regional and bilateral
free trade agreements are a means to ensure that its exporters and
investors have competitive terms of access to international markets.
A free trade agreement (FTA) with the Central American Four (CA4)
countries (El Salvador, Guatemala, Honduras and Nicaragua) will
strengthen the commercial relationship between Canada and the CA4
countries. An agreement will not only help to preserve the competitive
position of Canadian exporters and investors in the region, we expect
it will also create new opportunities for growth in these markets.
Update on Negotiations
The tenth and most recent formal round of negotiations between
Canadian and Central American officials was February 16-20, 2004,
in Ottawa. Although progress was made on a wide range of issues
in the trade agreement including services and investment, and the
draft labour cooperation agreement (the environmental cooperation
agreement was substantively concluded at a previous round), various
outstanding issues in the agreement could not be solved. For example,
work remains in the areas of market access for textiles and apparel,
as well as market access for agricultural products.
Canada and the CA4 countries continue to work to address the few
outstanding issues in the negotiation and lay the groundwork towards
an eventual FTA. To this end, Canadian and CA4 officials have met
three times since May 2006, most recently October 12-13, in Ottawa.
Discussions have been useful and allowed officials to have a full
exchange of views. Canada is seeking an outcome to the negotiations
that will allow Canadian exporters to compete on a level playing
field in the established CA4 markets.
While a date for the next round of discussions has not yet been
set, Canadian and CA4 officials remain in touch and continue to
work towards the resumption and conclusion of negotiations.
Background
At the Canada-Central America Summit in Guatemala on September
28, 2000, Canada agreed to a request by the leaders of the Central
American countries of El Salvador, Guatemala, Honduras and Nicaragua
(CA4) to pursue free trade negotiations. Following extensive domestic
consultations, formal negotiations were launched on November 21,
2001. Negotiations on parallel agreements on labour and environmental
cooperation were launched at the same time. (See the November
21, 2001 News Release)
Canada believes that a trade agreement (FTA) with the Central America
Four would bring a wide range of benefits to all countries involved
and would boost trade flows between Canada and Central America.
Canadian merchandise exports to the CA4 totalled $293 million in
2005, and services exports totalled $60 million in 2004. Merchandise
imports stood at $447 million in 2005 and services imports totalled
$46 million in 2004. Key Canadian interests in Central America include
telecommunications goods and services, environmental equipment and
services, value-added processed foods, automotive parts, and construction
equipment and services.
The potential development benefits of an FTA with the CA4 are important.
The provision of increased access to the Canadian market holds the
promise of encouraging faster economic growth, improved standards
of living and a reduction in poverty. Canada's negotiating positions
reflect sensitivity to development objectives, with due regard for
Canadian domestic sensitivities in certain industries.
In January 2001, the Government launched public consultations seeking
the views of all interested Canadians on the scope and priorities
of these negotiations. These consultations are ongoing, as Canadians
are encouraged to provide their comments and input on trade issues
at any time via our website. (For more information, see the News
Release and the Canada
Gazette Notice of January 6, 2001.)
Strategic Environmental
Assessment
In keeping with the Framework for Conducting Environmental Assessments of Trade Negotiations, an initial environmental assessment of the Canada-Central America Four free trade negotiations has been conducted to help negotiators to better integrate environmental considerations into the negotiating process.
The Government has consulted with Canadians on the initial environmental assessment, including the provinces and territories, non-government organizations, business groups, and the general public.
Initial Environmental Assessment of the Canada-CA-4 Free Trade Negotiations
Contact Point
If you have questions or comments about this initiative we would like to hear
from you. Please contact International Trade Canada at:
Regional Trade Policy Division (TBB)
Department of Foreign Affairs & International Trade
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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