(Financial Post – Alia McMullen)
Peter Kent, Canada’s minister of state of foreign affairs for the Americas, said Friday free trade negotiations with the Central American Four (CA4) were progressing very well and could be finalized by February.
Negotiations with the CA4 – which is El Salvador, Guatemala, Honduras and Nicaragua – appear to be moving forward despite Canada’s concerns of electoral fraud in the Nicaraguan election of November 2008.
“The CA4 negotiations are proceeding at pace and we want to in February get through the last round. We do believe it’s possible to get through the last series of negotiations,” Mr. Kent, a former broadcast journalist elected to the House of Commons late last year, said via conference call in El Salvador after visits to Nicaragua and Guatamala. The minister did not visit Honduras.
Canada and the CA4 agreed to meet February 23-27 at the last round of negotiations in December.
Mr. Kent said Canada was trying to close the FTA negotiations with the CA4 to allow Canadian exporters to compete on level playing field with countries with FTAs in the region, principally the United States.
“Canadian businesses in the region have expressed some frustration that without these agreements, they don’t have that level playing field,” he said. Read more here.
Showing posts with label Central America. Show all posts
Showing posts with label Central America. Show all posts
Monday, January 19, 2009
Wednesday, August 13, 2008
Stalled Free Trade Talks Hoping for Some Help
(Embassy – Lee Berthiaume)
Trade Minister Michael Fortier’s assertion that Canada is going bilateral has the world wondering what will really change
Diplomats from countries with which Canada has been engaged in long free trade negotiations are encouraged by Trade Minister Michael Fortier’s assertion that the collapse of the Doha round of World Trade Organization talks will see Canada become more active on bilaterals. However, while hoping the push will include greater flexibility, including a move away from demanding the same treatment as the United States, there appear to be few signs as yet that any substantial change has taken place.
Two weeks ago, Mr. Fortier was in Geneva when the Doha talks were declared dead. In a conference call with reporters, the minister declared that while multilateral trade liberalization had taken a blow, Canada would become more aggressive in pursuing bilateral deals. “In terms of opening trade corridors for our exports, we want to continue down the path of bilaterals,” he said, adding the government will be “knocking on doors around the world to create new opportunities for our farmers and exporters.”
The Conservative government had already been much more active on free trade agreements and other bilateral deals than previous governments, launching talks with Peru, Colombia, Jordan, the Dominican Republic, Panama and the Caribbean Community (CARICOM). It had even concluded negotiations with a four-member bloc of European countries, Peru and Colombia.
However, free trade talks with Singapore, South Korea and a bloc of four Central American countries – all launched by the Liberals earlier this decade – have barely moved even with the Conservatives at the helm.
While the Department of International Trade said yesterday it stands ready to conclude a “balanced agreement” with the four Central American countries, questions sent to it last week as to how the government will move ahead following the collapse of Doha and whether it will change its trade deal negotiating tactics were not answered by press time.
Canada Wants U.S.-Style Deals
Canada launched negotiations with South Korea in July 2005, and have so far seen 13 rounds come and go. The discussions have become extremely sensitive given implications for the Canadian automobile and shipbuilding industries. However, the South Koreans have also taken issue with Canada’s insistence that it get as good a deal as the Americans did last year.
Youn-Jung Kim, second secretary at the South Korean Embassy, said last week that she was encouraged by Mr. Fortier’s statements following the collapse of the Doha round, and that both countries “are very much interested in concluding a FTA.” She said another round has been planned – the last one was in March – but she was unaware of any dates. At the same time, “the official statements said that Canada will be more active with the bilateral negotiations, but I have not seen detailed orders or actions.”
Ms. Kim said the Canada-South Korea talks have reached a point where political will is essential for reaching a successful conclusion, which could be a factor with Doha gone. However, “I think it’s somewhat early to say that Canada will be more positive or too active, that they’ll make concessions.”
Canada launched free trade talks with four Central American countries – El Salvador, Guatemala, Honduras and Nicaragua – in November 2001 and 10 rounds were held until talks officially stalled in February 2004. Since then, there have been unofficial visits and meetings, but, as yet, dates for an 11th round of so-called Canada-CA4 talks have yet to be set.
Carolina Calderon, minister counsellor at the Embassy of El Salvador, said there have been tentative plans to get negotiators back together for September, and she expressed hope that Mr. Fortier’s support for completing bilateral deals will include the CA4.
Ms. Calderon said when the negotiations were launched, Canada made strong demands and was unwilling to really bend on key issues of importance to the Central American countries, like refined sugar and textiles. Part of the reason was Canada was worried any concessions made to the CA4 would also have to be given to other countries in the hemisphere through the Free Trade Area of the Americas.
By the time talks stopped, Ms. Calderon said, “we were very keen to negotiate and Canada seemed to be hesitant.”
The Central American countries turned to the United States and completed a deal in 2005 before meeting with Canadian officials to discuss relaunching talks.
“Canada comes to us and says ‘We want more or less the same treatment as you’ve given the United States’ and we said no,” Ms. Calderon said. “That’s not possible because, first of all, the United States is the main partner of Central America, main trading partner, and the relationship with the United States, I’m not saying it’s better, but we have more trade with the United States than we have with Canada.” Read the complete article.
Trade Minister Michael Fortier’s assertion that Canada is going bilateral has the world wondering what will really change
Diplomats from countries with which Canada has been engaged in long free trade negotiations are encouraged by Trade Minister Michael Fortier’s assertion that the collapse of the Doha round of World Trade Organization talks will see Canada become more active on bilaterals. However, while hoping the push will include greater flexibility, including a move away from demanding the same treatment as the United States, there appear to be few signs as yet that any substantial change has taken place.
Two weeks ago, Mr. Fortier was in Geneva when the Doha talks were declared dead. In a conference call with reporters, the minister declared that while multilateral trade liberalization had taken a blow, Canada would become more aggressive in pursuing bilateral deals. “In terms of opening trade corridors for our exports, we want to continue down the path of bilaterals,” he said, adding the government will be “knocking on doors around the world to create new opportunities for our farmers and exporters.”
The Conservative government had already been much more active on free trade agreements and other bilateral deals than previous governments, launching talks with Peru, Colombia, Jordan, the Dominican Republic, Panama and the Caribbean Community (CARICOM). It had even concluded negotiations with a four-member bloc of European countries, Peru and Colombia.
However, free trade talks with Singapore, South Korea and a bloc of four Central American countries – all launched by the Liberals earlier this decade – have barely moved even with the Conservatives at the helm.
While the Department of International Trade said yesterday it stands ready to conclude a “balanced agreement” with the four Central American countries, questions sent to it last week as to how the government will move ahead following the collapse of Doha and whether it will change its trade deal negotiating tactics were not answered by press time.
Canada Wants U.S.-Style Deals
Canada launched negotiations with South Korea in July 2005, and have so far seen 13 rounds come and go. The discussions have become extremely sensitive given implications for the Canadian automobile and shipbuilding industries. However, the South Koreans have also taken issue with Canada’s insistence that it get as good a deal as the Americans did last year.
Youn-Jung Kim, second secretary at the South Korean Embassy, said last week that she was encouraged by Mr. Fortier’s statements following the collapse of the Doha round, and that both countries “are very much interested in concluding a FTA.” She said another round has been planned – the last one was in March – but she was unaware of any dates. At the same time, “the official statements said that Canada will be more active with the bilateral negotiations, but I have not seen detailed orders or actions.”
Ms. Kim said the Canada-South Korea talks have reached a point where political will is essential for reaching a successful conclusion, which could be a factor with Doha gone. However, “I think it’s somewhat early to say that Canada will be more positive or too active, that they’ll make concessions.”
Canada launched free trade talks with four Central American countries – El Salvador, Guatemala, Honduras and Nicaragua – in November 2001 and 10 rounds were held until talks officially stalled in February 2004. Since then, there have been unofficial visits and meetings, but, as yet, dates for an 11th round of so-called Canada-CA4 talks have yet to be set.
Carolina Calderon, minister counsellor at the Embassy of El Salvador, said there have been tentative plans to get negotiators back together for September, and she expressed hope that Mr. Fortier’s support for completing bilateral deals will include the CA4.
Ms. Calderon said when the negotiations were launched, Canada made strong demands and was unwilling to really bend on key issues of importance to the Central American countries, like refined sugar and textiles. Part of the reason was Canada was worried any concessions made to the CA4 would also have to be given to other countries in the hemisphere through the Free Trade Area of the Americas.
By the time talks stopped, Ms. Calderon said, “we were very keen to negotiate and Canada seemed to be hesitant.”
The Central American countries turned to the United States and completed a deal in 2005 before meeting with Canadian officials to discuss relaunching talks.
“Canada comes to us and says ‘We want more or less the same treatment as you’ve given the United States’ and we said no,” Ms. Calderon said. “That’s not possible because, first of all, the United States is the main partner of Central America, main trading partner, and the relationship with the United States, I’m not saying it’s better, but we have more trade with the United States than we have with Canada.” Read the complete article.
Wednesday, July 16, 2008
Everyone’s Wondering: What’s This ‘Americas Strategy’?
(Embassy – Michelle Collins)
Twelve months ago, as Prime Minister Stephen Harper embarked on a tour of Latin America to raise Canada’s profile in the region and demonstrate that his foreign policy would be geared toward these hemispheric neighbours, many took the trip as a sign that he was indeed serious about the Americas.
Yet one year later, there are few updates from the government about what is involved in this pillar of its foreign policy, the mainstream media say there’s no story to report, and most Canadians have nary a notion that their government ever committed itself to an “Americas Strategy.”
On his six-day trip through Colombia, Chile, Barbados and Haiti, Mr. Harper visited aid projects built with Canadian funds, met with Canadian investors, and delivered speeches to economists and business crowds, all with parliamentary reporters in tow.
While in Chile, Mr. Harper delivered a speech declaring Canada a country of the Americas and said that expanding political and economic engagement in the Americas would be a major foreign policy goal for his government. “Re-engagement in our hemisphere is a critical international priority for our government. Canada is committed to playing a bigger role in the Americas and to doing so for the long term,” Mr. Harper said.
Mr. Harper and his officials, such as former foreign affairs minister Maxime Bernier, repeatedly declared that the policy is built on “three key objectives” of prosperity, security and governance.
Since that time, the government has made a handful of funding announcements for increased aid projects in Latin America and moved ahead on free trade agreements with Peru and Colombia. Most recently, Foreign Affairs Minister David Emerson announced that the Department of International Trade was opening four new trade offices in the region; two in Mexico and two in Brazil.
Beyond developments in the area of trade, however, little else about the strategy has been released publicly.
Although a Memorandum to Cabinet on the Americas Strategy was delivered in the last two months, ministers and officials at the Foreign Affairs Department refuse to talk about what’s in it.
When Mr. Harper’s government began ramping up the rhetoric about re-engaging the Americas, Latin American diplomats based in Ottawa were encouraged that this would be their chance to finally reap more of the benefits of globalization and tap into Canada’s economic prowess.
But more than a year later, those same diplomats are left with more questions than answers about what Mr. Harper’s plans really are and are expressing concern that, like other prime ministers before him, Mr. Harper’s commitment to the Americas has tumbled on his list of foreign policy priorities.
Meanwhile, Secretary of State for Foreign Affairs and International Trade Helena Guergis has travelled to the area several times over the last few months, but only her announcements about domestic sports programs get reported in the media.
Additionally, aside from a media advisory, the government says little about the trips and Ms. Guergis herself is difficult to track down. Embassy made several requests to interview the minister about her trip to Belize and Guatemala this past week, but to no avail.
Indeed, Maclean’s political affairs columnist Paul Wells believes that the fact Ms. Guergis is the one being sent on these trips is evidence that the Americas are no longer a genuine priority. “I do get the impression this was an interesting idea, but the idea of an American Canada, understood in the Americas, it’s not automatic, it’s not driven by market forces, not driven by the attention space of ordinary Canadians, and would have to be artificial and built,” Mr. Wells said.
Mr. Wells said “serious distractions” to the west, east and the north – from China to Europe and Russia – are more interesting and geographically closer to Canada. Plus, he notes, Canada’s top foreign policy challenge remains Afghanistan, and the Latin American countries have not made any significant troop contributions to the conflict. “It’s just one example of how far away we are from the idea of this having a concrete application to the rest of the foreign policy universe,” Mr. Wells said.
Toronto Star reporter Allan Woods said that given the way Mr. Harper kicked off this foreign policy strategy, one might expect to have heard more about it by now. He said Mr. Harper’s trip last year was really the first Conservative-led foreign policy initiative since the party rose to power in early 2006, and the government itself billed it as the grandest one up to that point.
Mr. Woods said that at the time, he did plan to follow the issue over the next several months, but that since then, he hasn’t seen all that much happen. “A couple of trips does not a foreign policy make, and a couple of free trade agreements does not a foreign policy make,” Mr. Woods said. “It’s unfortunate because I’ve been on many trips with Harper, and that one was by far the most interesting; it was something of their own making and they just didn’t seem to follow up on it. The onus was on them to explain this.”
CTV reporter Robert Fife points out that if this were a focus, Mr. Harper would be talking about it. He said that if the Conservatives want to promote the Americas, they are going to have to convince people that free trade with these countries is a good thing. “If the prime minister wants to shine a light on it, he usually gets pretty good coverage on any issue he talks about,” Mr. Fife said. “If this issue is such a central plank in the Conservative foreign policy, then it should speak for itself; if you’re not going down there, then it can’t be much of a priority.” Read the complete article.
Twelve months ago, as Prime Minister Stephen Harper embarked on a tour of Latin America to raise Canada’s profile in the region and demonstrate that his foreign policy would be geared toward these hemispheric neighbours, many took the trip as a sign that he was indeed serious about the Americas.
Yet one year later, there are few updates from the government about what is involved in this pillar of its foreign policy, the mainstream media say there’s no story to report, and most Canadians have nary a notion that their government ever committed itself to an “Americas Strategy.”
On his six-day trip through Colombia, Chile, Barbados and Haiti, Mr. Harper visited aid projects built with Canadian funds, met with Canadian investors, and delivered speeches to economists and business crowds, all with parliamentary reporters in tow.
While in Chile, Mr. Harper delivered a speech declaring Canada a country of the Americas and said that expanding political and economic engagement in the Americas would be a major foreign policy goal for his government. “Re-engagement in our hemisphere is a critical international priority for our government. Canada is committed to playing a bigger role in the Americas and to doing so for the long term,” Mr. Harper said.
Mr. Harper and his officials, such as former foreign affairs minister Maxime Bernier, repeatedly declared that the policy is built on “three key objectives” of prosperity, security and governance.
Since that time, the government has made a handful of funding announcements for increased aid projects in Latin America and moved ahead on free trade agreements with Peru and Colombia. Most recently, Foreign Affairs Minister David Emerson announced that the Department of International Trade was opening four new trade offices in the region; two in Mexico and two in Brazil.
Beyond developments in the area of trade, however, little else about the strategy has been released publicly.
Although a Memorandum to Cabinet on the Americas Strategy was delivered in the last two months, ministers and officials at the Foreign Affairs Department refuse to talk about what’s in it.
When Mr. Harper’s government began ramping up the rhetoric about re-engaging the Americas, Latin American diplomats based in Ottawa were encouraged that this would be their chance to finally reap more of the benefits of globalization and tap into Canada’s economic prowess.
But more than a year later, those same diplomats are left with more questions than answers about what Mr. Harper’s plans really are and are expressing concern that, like other prime ministers before him, Mr. Harper’s commitment to the Americas has tumbled on his list of foreign policy priorities.
Meanwhile, Secretary of State for Foreign Affairs and International Trade Helena Guergis has travelled to the area several times over the last few months, but only her announcements about domestic sports programs get reported in the media.
Additionally, aside from a media advisory, the government says little about the trips and Ms. Guergis herself is difficult to track down. Embassy made several requests to interview the minister about her trip to Belize and Guatemala this past week, but to no avail.
Indeed, Maclean’s political affairs columnist Paul Wells believes that the fact Ms. Guergis is the one being sent on these trips is evidence that the Americas are no longer a genuine priority. “I do get the impression this was an interesting idea, but the idea of an American Canada, understood in the Americas, it’s not automatic, it’s not driven by market forces, not driven by the attention space of ordinary Canadians, and would have to be artificial and built,” Mr. Wells said.
Mr. Wells said “serious distractions” to the west, east and the north – from China to Europe and Russia – are more interesting and geographically closer to Canada. Plus, he notes, Canada’s top foreign policy challenge remains Afghanistan, and the Latin American countries have not made any significant troop contributions to the conflict. “It’s just one example of how far away we are from the idea of this having a concrete application to the rest of the foreign policy universe,” Mr. Wells said.
Toronto Star reporter Allan Woods said that given the way Mr. Harper kicked off this foreign policy strategy, one might expect to have heard more about it by now. He said Mr. Harper’s trip last year was really the first Conservative-led foreign policy initiative since the party rose to power in early 2006, and the government itself billed it as the grandest one up to that point.
Mr. Woods said that at the time, he did plan to follow the issue over the next several months, but that since then, he hasn’t seen all that much happen. “A couple of trips does not a foreign policy make, and a couple of free trade agreements does not a foreign policy make,” Mr. Woods said. “It’s unfortunate because I’ve been on many trips with Harper, and that one was by far the most interesting; it was something of their own making and they just didn’t seem to follow up on it. The onus was on them to explain this.”
CTV reporter Robert Fife points out that if this were a focus, Mr. Harper would be talking about it. He said that if the Conservatives want to promote the Americas, they are going to have to convince people that free trade with these countries is a good thing. “If the prime minister wants to shine a light on it, he usually gets pretty good coverage on any issue he talks about,” Mr. Fife said. “If this issue is such a central plank in the Conservative foreign policy, then it should speak for itself; if you’re not going down there, then it can’t be much of a priority.” Read the complete article.
Wednesday, June 25, 2008
World Bank Applauds Canada’s Americas Focus
(Embassy – Lee Berthiaume)
A senior World Bank official last week applauded the government’s decision to make Latin America and the Caribbean a foreign policy priority, describing Canada as “one of the few bilateral countries that has an interest in the Americas.”
Pamela Cox, the bank’s vice-president for the Latin American and Caribbean region, also said the World Bank is not calling on Canada or any other country to slow down on free trade talks with the region despite the fact soaring food and energy costs will slow economic growth there.
“Obviously the bank supports free trade,” she told reporters in a briefing at Chateau Laurier. “We think the benefits are huge.... We think the benefits, especially to Latin America, would be large.”
Ms. Cox was appointed to her position in 2005, but said last week’s visit was her first and was intended as a way to recognize Canada’s new commitment to what she described as the “lost continent.”
Latin America has seen a number of ups and downs since the 1970s, she said, but the region as a whole has enjoyed five per cent growth per year over the past five years, partly due to the adoption of sound fiscal policies in many countries, but particularly thanks to strong commodity prices.
She warned, however, that challenges are on the horizon, particularly for countries in the Caribbean and Central America that import both food and fuel.
“We do see growth continuing, probably going down slightly – about 4.5% per year – and we do see some countries struggling a bit,” she said.
Over the past year, Canada has made the Americas a priority; it is channeling more aid to the hemisphere and has launched a robust campaign to ink free trade agreements with a variety of countries in the hemisphere, including the Caribbean Community, Peru, Colombia and the Dominican Republic.
The goal has been to strengthen democracy and open market systems in a region where Canada has more than $100 billion in investments, primarily in the mining and energy sectors, but where populism and socialist policies, including nationalization of industries and natural resources, are on the rise.
Ms. Cox acknowledged the political divide that exists in the hemisphere, particularly South America, but said: “We need to have everybody around the table, no matter what kind of government they have, no matter what their world view.
“Unless you’re around the table and talking, it’s very hard to address global issues and have stability in the world.... Now what we try to do at the bank level, and I think Canada can also have a role in this, is to keep dialogue open and show examples of how people do things.” Read the complete article.
A senior World Bank official last week applauded the government’s decision to make Latin America and the Caribbean a foreign policy priority, describing Canada as “one of the few bilateral countries that has an interest in the Americas.”
Pamela Cox, the bank’s vice-president for the Latin American and Caribbean region, also said the World Bank is not calling on Canada or any other country to slow down on free trade talks with the region despite the fact soaring food and energy costs will slow economic growth there.
“Obviously the bank supports free trade,” she told reporters in a briefing at Chateau Laurier. “We think the benefits are huge.... We think the benefits, especially to Latin America, would be large.”
Ms. Cox was appointed to her position in 2005, but said last week’s visit was her first and was intended as a way to recognize Canada’s new commitment to what she described as the “lost continent.”
Latin America has seen a number of ups and downs since the 1970s, she said, but the region as a whole has enjoyed five per cent growth per year over the past five years, partly due to the adoption of sound fiscal policies in many countries, but particularly thanks to strong commodity prices.
She warned, however, that challenges are on the horizon, particularly for countries in the Caribbean and Central America that import both food and fuel.
“We do see growth continuing, probably going down slightly – about 4.5% per year – and we do see some countries struggling a bit,” she said.
Over the past year, Canada has made the Americas a priority; it is channeling more aid to the hemisphere and has launched a robust campaign to ink free trade agreements with a variety of countries in the hemisphere, including the Caribbean Community, Peru, Colombia and the Dominican Republic.
The goal has been to strengthen democracy and open market systems in a region where Canada has more than $100 billion in investments, primarily in the mining and energy sectors, but where populism and socialist policies, including nationalization of industries and natural resources, are on the rise.
Ms. Cox acknowledged the political divide that exists in the hemisphere, particularly South America, but said: “We need to have everybody around the table, no matter what kind of government they have, no matter what their world view.
“Unless you’re around the table and talking, it’s very hard to address global issues and have stability in the world.... Now what we try to do at the bank level, and I think Canada can also have a role in this, is to keep dialogue open and show examples of how people do things.” Read the complete article.
Friday, May 30, 2008
Wednesday, May 21, 2008
Panama Next Stop on Canadian Trade Agreement Agenda
(Embassy – Michelle Collins)
Officials from the Central American country were in Ottawa last week as the two countries prepare for trade talks
As negotiations for a trade agreement with Colombia face critical opposition in both the U.S. and Canada, exploratory discussions about initiating free trade negotiations with Panama are being taken up in Ottawa.
In the Capital last week for a first meeting with Canadian trade officials, Panama’s chief trade negotiator Leroy Sheffer described the talks as “absolutely positive.” “We’re working to make Panama one of the top sectors in the world,” Mr. Sheffer said. “Panama is a main platform Canada can use to distribute to the Latin American market.”
With its strategic location in Central America and the Panama Canal free trade zone, Mr. Sheffer said the opportunities for Canadian businesses to expand services and exports in the region are immense.
He said a deal between Panama and Canada would serve to complement the two countries’ economies since both are largely service-based with important agricultural sectors. In addition, he said, Panama and Canada share similar views at the World Trade Organization in the service, financial and tourism areas.
Mr. Sheffer said Panama is especially keen to expand relations in some of the areas where Canada excels, such as bio-technology and mining, the industry in which Canada is a world leader. “Panama wants to connect with countries at a certain level of success, Canada has done well and Panama would like to be partners with the right trade partners that Canada has.”
A Foreign Investment Protection and Promotion Agreement was signed with Panama in 1998, and last year bilateral trade between the countries totalled $115.1 million. In its assessment of the country, Export Development Canada described Panama as very attractive to investors. However, the report also stated that there is rampant corruption and cronyism among businesspeople, though the government has set up a dispute mechanism to address the delays and lack of independence in the judicial system.
Since 2005, Canadian exports to Panama, such as pharmaceuticals, machinery, electronics, meat and vegetables, have grown by nearly 44 per cent. Imports from Panama to Canada are mainly mineral fuels, fruits and nuts, seafood, spices and coffee, teas and wood products.
In Export Development Canada’s analysis of Panama’s political situation, the report states that “There is little chance that a party with leftist tendencies will form a majority government or take [the] Presidency in 2009,” because the opposition received little public support in the 2004 elections.
“There’s tremendous opportunity in Panama to expand trade, especially as a portal to go into Latin America as a logistical hub,” Mr. Bains said. “Portal investment is increasing, trade is improving, there are a lot of synergies, a lot of commonalities.”
Leading the charge for an agreement since arriving in Ottawa in 2005 has been Panamanian Ambassador Romy Vásquez. Ms. Vásquez said she has been a non-stop promoter of a trade agreement between the countries because there are enormous market opportunities for both Panama and Canada.
“I’m a business person, and I do believe there are opportunities,” Ms. Vásquez said. “We are a hub for products and services because we are geographically positioned in the centre of the Americas. If Canadian companies would like to have more access, we are in a perfect position.” She said relations between the two countries have been rapidly expanding over the last few years, particularly in tourism. In 2004, Panama saw about 7,500 Canadian tourists a year. Today that number has grown to 55,000 a year, with five chartered flights leaving for Panama each week, she said.
The United Nations’ Economist Intelligence Unit has recently ranked Panama as the second-fastest growing economy in the world.
According to the Department of Foreign Affairs and International Trade, depending on the outcome of the initial talks, the government will embark on comprehensive consultations with stakeholders across Canada before making a decision on whether to launch negotiations.
Mr. Sheffer said he understands Canada has an extensive internal process to follow before moving forward with any agreements, but said he is very encouraged by Canada’s “amazing” commitment to corporate social responsibility. “There’s a need to create necessary synergies to provide benefits for Canada and Panama,” Mr. Sheffer said. “The opportunities Panama offers to Canadian firms are immense.” Read the entire article.
Panama Canal Next Stop on Canadian Trade Agreement Agenda
(Embassy – Michelle Collins)
Officials from the Central American country were in Ottawa last week as the two countries prepare for trade talks
As negotiations for a trade agreement with Colombia face critical opposition in both the U.S. and Canada, exploratory discussions about initiating free trade negotiations with Panama are being taken up in Ottawa.
In the Capital last week for a first meeting with Canadian trade officials, Panama’s chief trade negotiator Leroy Sheffer described the talks as “absolutely positive.” “We’re working to make Panama one of the top sectors in the world,” Mr. Sheffer said. “Panama is a main platform Canada can use to distribute to the Latin American market.”
With its strategic location in Central America and the Panama Canal free trade zone, Mr. Sheffer said the opportunities for Canadian businesses to expand services and exports in the region are immense.
He said a deal between Panama and Canada would serve to complement the two countries’ economies since both are largely service-based with important agricultural sectors. In addition, he said, Panama and Canada share similar views at the World Trade Organization in the service, financial and tourism areas.
Mr. Sheffer said Panama is especially keen to expand relations in some of the areas where Canada excels, such as bio-technology and mining, the industry in which Canada is a world leader. “Panama wants to connect with countries at a certain level of success, Canada has done well and Panama would like to be partners with the right trade partners that Canada has.”
A Foreign Investment Protection and Promotion Agreement was signed with Panama in 1998, and last year bilateral trade between the countries totalled $115.1 million. In its assessment of the country, Export Development Canada described Panama as very attractive to investors. However, the report also stated that there is rampant corruption and cronyism among businesspeople, though the government has set up a dispute mechanism to address the delays and lack of independence in the judicial system.
Since 2005, Canadian exports to Panama, such as pharmaceuticals, machinery, electronics, meat and vegetables, have grown by nearly 44 per cent. Imports from Panama to Canada are mainly mineral fuels, fruits and nuts, seafood, spices and coffee, teas and wood products.
In Export Development Canada’s analysis of Panama’s political situation, the report states that “There is little chance that a party with leftist tendencies will form a majority government or take [the] Presidency in 2009,” because the opposition received little public support in the 2004 elections.
“There’s tremendous opportunity in Panama to expand trade, especially as a portal to go into Latin America as a logistical hub,” Mr. Bains said. “Portal investment is increasing, trade is improving, there are a lot of synergies, a lot of commonalities.”
Leading the charge for an agreement since arriving in Ottawa in 2005 has been Panamanian Ambassador Romy Vásquez. Ms. Vásquez said she has been a non-stop promoter of a trade agreement between the countries because there are enormous market opportunities for both Panama and Canada.
“I’m a business person, and I do believe there are opportunities,” Ms. Vásquez said. “We are a hub for products and services because we are geographically positioned in the centre of the Americas. If Canadian companies would like to have more access, we are in a perfect position.” She said relations between the two countries have been rapidly expanding over the last few years, particularly in tourism. In 2004, Panama saw about 7,500 Canadian tourists a year. Today that number has grown to 55,000 a year, with five chartered flights leaving for Panama each week, she said.
The United Nations’ Economist Intelligence Unit has recently ranked Panama as the second-fastest growing economy in the world.
According to the Department of Foreign Affairs and International Trade, depending on the outcome of the initial talks, the government will embark on comprehensive consultations with stakeholders across Canada before making a decision on whether to launch negotiations.
Mr. Sheffer said he understands Canada has an extensive internal process to follow before moving forward with any agreements, but said he is very encouraged by Canada’s “amazing” commitment to corporate social responsibility. “There’s a need to create necessary synergies to provide benefits for Canada and Panama,” Mr. Sheffer said. “The opportunities Panama offers to Canadian firms are immense.” Read the entire article.
Subscribe to:
Comments (Atom)
