News and Analysis • Volume • Number • 11th June 2008
Canada and Colombia Finalise FTA Fine Print
Canada and Colombia have announced the conclusion of negotiations that will establish a free trade agreement (FTA) between the two countries, pending legal and parliamentary reviews. The deal, which has drawn criticism from human rights groups, aims to improve market access for agricultural products and industrial goods and to provide a more secure environment for investment.
The finalisation of the agreement, which was announced on Saturday, came as a surprise to Canadian opposition leaders, who accused Prime Minister Stephen Harper’s Conservative government of pushing the pact through simply to appease US President George W. Bush. The Bush administration, which has inked a similar pact with Colombia, is currently pressing the US Congress to enact that legislation.
If the deal wins legislative approval, Canadian companies will benefit from the elimination of Colombian tariffs on most industrial products, such as paper, machinery, and textiles, and on the majority of agricultural products, including wheat and barley. A variety of other goods - ranging from pork to whiskey - are also among those slated to have their tariffs phased out.
Like Canada’s recent trade pact with Peru (see BRIDGES Weekly, 4 June 2008, http://www.ictsd.org/weekly/08-06-04/inbrief.htm#2), the Colombian FTA was negotiated in parallel with labour and environmental agreements to “ensure that progress on labour rights and environmental protection goes hand in hand with economic progress,” according to a statement released by the Canadian government. Together the FTAs are part of Canada’s Global Commerce Strategy to pursue more bilateral FTAs and re-engage both socially and economically throughout the Americas.
The negotiations, which began last July, have encountered opposition from human rights groups concerned about Colombia’s record of narcotics trafficking and political death squads.
However, Canadian Minister of Foreign Affairs and International Trade, David Emerson, maintains that engaging with countries like Colombia through trade and investment deals can have a positive effect.
“The free trade agreement will expand Canada-Colombia trade and investment, and will help solidify ongoing efforts by the government of Colombia to create a more prosperous, equitable and secure democracy,” he said.
Merchandise trade between the two countries amounted to US$1.14 billion in 2007.
ICTSD reporting.”Canada concludes negotiations for Free Trade, Labour Cooperation and Environment Agreements with Colombia,” NEWS RELEASE, 7 June 2008; “Canada concludes Colombia free trade talks,” REUTERS, 7 June 2008; “Canada reaches free-trade deal with Colombia,” THE CANADIAN PRESS, 7 June 2008; Canada, Colombia reach agreement on free trade,” THE CANADIAN PRESS, 7 June 2008; “Canadian opposition slams Colombia free trade deal,” REUTERS, 9 June 2008.