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 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 countries (El Salvador, Guatemala, Honduras and Nicaragua – the CA4) would strengthen the commercial relationship between Canada and the CA4 countries. An agreement would not only help to preserve the competitive position of Canadian exporters and investors in the region, it would also create new opportunities for growth in these markets.

Canadian and CA4 negotiators met from February 23-27, 2009, for the first full round of FTA negotiations between the Parties since 2004. Though these discussions were productive and allowed the Parties to discuss the outstanding issues left in the FTA negotiations, no further rounds are scheduled at this time.

At the Canada-Central America Summit in Guatemala on September 28, 2000, Canada agreed to a request by the leaders of the CA4 countries to pursue free trade negotiations. Following extensive domestic consultations, formal negotiations were launched on November 21, 2001. Negotiations on parallel agreements on labour cooperation and the environment were launched at the same time. (See the November 21, 2001 News Release)

After 10 rounds of negotiations, the talks reached an impasse in 2004, primarily over market access issues. Since then, Canada and the CA4 countries have worked to address the outstanding issues and lay the groundwork towards an eventual FTA. To this end, Canadian and CA4 officials met three times in 2006, were in contact throughout 2007, and met again on three separate occasions in 2008. These discussions were useful and allowed officials to have a full exchange of views. Following the meetings in 2008, the Parties met in Ottawa from February 23-27, 2009, for the first full round of FTA negotiations since 2004.

Canada believes that a FTA with the CA4 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 $328 million in 2008, and services exports totalled $54 million in 2006, the last year that services figures are available. Merchandise imports stood at $584.3 million in 2008 and services imports totalled $27 million in 2006. 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.

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 this website. (see News Release and the Canada Gazette Notice of January 6, 2001.)

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
(To access the environmental assessment, search the Library and Archives Canada web site that is linked above by typing – without quotation marks – Initial Environmental Assessment CA4, clicking on the first link and then scrolling down to the Strategic Environmental Assessment.)

If you have questions or comments about this initiative we would like to hear from you. Please contact Foreign Affairs and International Trade Canada at:

Regional Trade Policy - Americas (TBL)
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

• Americas Canada
  (Website for the Latin America and Caribbean Bureau of the Department of Foreign Affairs & International Trade)
• The Canadian Trade Commissioner Service (Latin America and the Caribbean)
• Salvadoran Ministry of Economy (Spanish)
• Guatemalan Ministry of Economy (Spanish)
• Honduran Ministry of Industry and Trade (Spanish)
• Nicaraguan Ministry of Development, Industry and Commerce (Spanish)