Ongoing Negotiations
European Union
At the Canada-EU Summit held on May 6, 2009, in Prague, Czech Republic, leaders agreed to launch negotiations toward a comprehensive economic partnership agreement. Canada and the EU had previously jointly established the scope and parameters for these negotiations, as outlined in the March 2009 Joint Report on the EU-Canada Scoping Exercise.
The provinces and territories have expressed their support for a stronger Canada-EU economic partnership. Because several areas to be discussed fall within their exclusive or shared jurisdiction, they will be closely involved in the negotiations.
Closer economic ties with the EU would significantly enhance Canada's global competitive advantage. The EU is Canada's second largest trade and investment partner after the United States. In addition, with a population of nearly 500 million, the EU is the world's largest market. According to the October 2008 Canada-EU joint study, Assessing the Costs and Benefits of a Closer EU-Canada Economic Partnership, greater trade liberalization has the potential to bring substantial economic benefits to Canada, as well as the EU. The study predicts that an agreement would provide a $12-billion boost to Canada's GDP and generate a 20% increase in bilateral trade.
South Korea
In July 2005, Canada and South Korea (Korea) launched negotiations toward a comprehensive FTA. Thirteen full rounds of negotiations have been conducted, with the latest in March 2008 in Ottawa. Since then, progress has continued to be made in the negotiations through intersessional work.
A conclusion to the negotiations is within reach, but the remaining issues will be difficult to resolve. The Government will continue to consult with Canadian stakeholders and will not conclude negotiations until it has an agreement that meets the needs of Canadians. Canada is seeking an ambitious and high-quality FTA with Korea that provides real market access opportunities for Canadian exporters.
The signing of the Korea-U.S. FTA in June 2007, coupled with Korea's ongoing negotiations with the EU, underlines the importance of maintaining Canada's competitiveness in this strategic Asian market. It also points to the significance of Korea as a strategic trading partner in Northeast Asia.
Panama
Strong progress has been made toward the negotiation of a comprehensive, high-quality free trade agreement between Canada and Panama. Three rounds of negotiations and significant intersessional work have taken place since negotiations began in October 2008. Parallel agreements on the environment and labour are also under negotiation.
An FTA with Panama would create new opportunities for Canadian business in a region that is growing in importance, and help level the playing field for Canadian business vis-à-vis competitors that already have, or are seeking, preferential access to the Panamanian market (e.g. the United States and Chile).
Central America Four
Canada and the Central America Four countries (Guatemala, Nicaragua, Honduras and El Salvador—the CA4) launched FTA negotiations in 2001. Negotiations reached an impasse in 2004, primarily over market access issues. Since then, Canada has made numerous attempts to re-start the negotiating process, including three meetings at the chief negotiator level in 2006, and another three meetings between chief negotiators in 2008.
From February 23 to 27, 2009, Canadian and CA4 negotiators met in Ottawa for the first full round of FTA talks since 2004. The round was productive and the negotiators plan to meet again. Canada's goal in these negotiations is to enable Canadian businesses to successfully compete in Central American markets against major competitors such as the U.S., which concluded a comprehensive trade agreement with the CA4 countries, plus Costa Rica and the Dominican Republic, in 2004. This agreement, the CAFTA-DR, puts Canadian businesses at a disadvantage.
Dominican Republic
In June 2007, Canada announced the launch of free trade negotiations with the Dominican Republic. Subsequently, the Dominican Republic signed an Economic Partnership Agreement with the EU and the Caribbean Community (CARICOM), which it would now like to use as the model for a Canada-Dominican Republic free trade agreement. Canada is working with the Dominican Republic to clarify Canada's position and determine a way forward that meets Canada's interests.
An FTA with the Dominican Republic would better position Canadian business vis-à-vis competitors that currently have preferential market access (e.g. the United States and the EU). It would also promote a more stable and predictable environment for investors.
CARICOM
In July 2007, Prime Minister Harper and Caribbean Community heads of government announced the launch of negotiations toward a comprehensive FTA. A planning meeting was held in October 2007 in Kingston, Jamaica, but the start of negotiations has been delayed due in part to the recently concluded Economic Partnership Agreement between CARICOM, the EU and the Dominican Republic. Discussions on the organization of the negotiations are ongoing.
A bilateral trade agreement would create opportunities for Canadian exporters of goods and services, as well as a more transparent, stable and predictable business environment for Canadian companies and investors. Canada is committed to concluding a mutually beneficial trade agreement with CARICOM that takes into account the capacity constraints and vulnerabilities associated with developing countries and island states.
Canada is committed to concluding a mutually beneficial trade agreement with CARICOM that takes into account the capacity constraints and vulnerabilities associated with developing countries and island states.
Singapore
The Canada-Singapore free trade negotiations were launched in 2001. Canada and Singapore completed the eighth round of negotiations in August 2007 in Ottawa. Negotiations are at an advanced stage, with many elements already finalized. Despite progress, more work remains to be done on issues such as market access for services and investment in order to secure a satisfactory outcome for Canadians.
An FTA would facilitate goods and services trade, and improve Canada's ability to participate in global value chains through improved access to opportunities in Singapore, a pre-eminent hub in the region.
