The Honourable David Emerson, Minister of International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics, today marked two important milestones toward the government’s goal of increasing Canada’s competitiveness in global commerce: the conclusion of free trade negotiations with Peru, and the signing of a free trade agreement (FTA) with the four countries of the European Free Trade Association (EFTA).

Canada-Peru: Conclusion of free trade negotiations

Minister Emerson met with Mercedes Aráoz Fernández, Peruvian Minister of International Trade and Tourism, on the margins of the World Economic Forum in Davos, Switzerland, to mark the conclusion of negotiations toward a free trade agreement with Peru, which began in July 2007.

“Peru has emerged as one of the most dynamic economies in the Americas, supported by an aggressive commerce agenda and clear stance in favour of trade liberalization,” said Minister Emerson. “This free trade agreement with Peru will further solidify our trade and investment relationship and open up opportunities for Canadian business in a range of sectors.”

Peru will provide greater market access for a range of Canadian agricultural products, as well as paper products and machinery and equipment. Agreement has also been reached with respect to provisions on cross-border trade in services of interest to Canada in sectors including mining, energy and professional services.

Through this FTA, greater stability, transparency and protection for Canadian investments in Peru have been achieved, creating a more receptive environment for the rapidly growing stock of Canadian investment in Peru.

Provisions on the environment, biodiversity and corporate social responsibility are included in an environment agreement. In addition, for the first time in Canadian free trade negotiations, agreement has also been reached on a Trade-related Cooperation Committee to oversee capacity-building activities.

A Labour Cooperation Agreement, which includes enforcement obligations and associated penalties, has also been negotiated. “I have seen first-hand how Peru is committed to improving labour conditions in their country,” said the Honourable Jean-Pierre Blackburn, Minister of Labour. “This comprehensive labour cooperation agreement sets a new standard in regard to labour provisions in Canada’s free trade agreements.”

In 2006, two-way merchandise trade between Canada and Peru totalled $2.4 billion. Canada is also one of Peru’s most important sources of foreign direct investment in the mining sector, and among the largest foreign investors overall, with an estimated $2.9 billion of investment stock as of 2006.

The conclusion of a free trade agreement with Peru builds on Prime Minister Stephen Harper’s commitment to revive and expand Canadian political and economic engagement in the Americas, which is a major foreign policy goal of the Government of Canada.

Canada-EFTA: Signing of Canada’s first FTA with European countries

Minister Emerson met with his counterparts from Iceland, Liechtenstein, Norway and Switzerland to sign a free trade agreement between Canada and the European Free Trade Association.

“Canada enjoys a close economic relationship with the countries of EFTA, which are among the wealthiest and most sophisticated economies in the world,” said Minister Emerson. “This FTA will open up opportunities by bringing down trade barriers and by providing Canadian business a foothold in the heart of Europe.”

The free trade agreement is Canada’s first with European countries. It will provide a strategic platform that Canadian companies can use to tap into value chains all across Europe. Exporters will benefit through the reduction or elimination of tariffs, while importers will enjoy more affordable access to goods from the EFTA countries.

Canada announced the conclusion of negotiations with the EFTA countries in June 2007. For more information, see New Free Trade Deal Caps Successful Year for Canada in Global Commerce.

The EFTA countries are significant economic partners for Canada. Taken together, this group represents Canada’s eighth largest merchandise export destination. In 2006, two-way merchandise trade was valued at $10.7 billion, while two-way investment reached more than $22 billion.

Canada’s global trade agenda

Under Canada’s Global Commerce Strategy, the government is working to advance Canada’s trade interests in key markets by opening up new opportunities for Canadian exporters, investors and innovators. The strategy includes an aggressive trade negotiation agenda, aimed at securing competitive terms of access in markets that offer significant potential for our products and expertise.

Canada is currently negotiating free trade agreements with several other countries or groups of countries. Access to foreign markets is also being pursued through investment promotion and science and technology agreements.

Canada has FTAs with the United States and Mexico (NAFTA) and with Chile, Israel and Costa Rica.

The free trade agreements with EFTA and Peru will be subject to a new process announced by the Minister of Foreign Affairs that requires international treaties signed by Canada to be tabled in the House of Commons.