Government of Canada News Release
April 16, 2012

Prime Minister Harper ANNOUNCES EXPANSION OF THE CANADA-CHILE FREE TRADE AGREEMENT

Canadian businesses to benefit from increased access to Chilean market

SANTIAGO, CHILE - Prime Minister Stephen Harper and Sebastian Piñera, President of Chile, today witnessed the signing of a more modern and expanded Canada-Chile Free Trade Agreement that will help deepen commercial ties between the two countries.

“The Canada-Chile Free Trade Agreement has been the cornerstone of our commercial relationship with Chile for the past 15 years,” said Prime Minister Harper. “The enhancements announced today will generate further economic growth and job creation in Canada by increasing commercial opportunities for our businesses.”

The amended agreement will include a financial services chapter to ensure that Canadian financial institutions enjoy preferential access to the Chilean market and can compete on a level playing field vis-à-vis their competitors. This will help institutions develop new markets in the banking, insurance and asset management sub-sectors in Chile.

The Canada-Chile Free Trade Agreement has already greatly benefited both countries with two-way merchandise trade more than tripling since the agreement came into force in 1997.

While in Santiago, Prime Minister Harper also thanked President Piñera for his country’s support of Canada’s bid to join trade talks on the Trans-Pacific Partnership (TPP).

“Canada’s participation in the TPP negotiations would deepen trade relationships with many of our important commercial partners, including Chile,” said the Prime Minister. “I want to thank President Piñera for Chile’s strong and longstanding support in our efforts to join the partnership.”

- 30 -

This document is also available at http://pm.gc.ca

Backgrounder

Canada-Chile Free Trade Agreement

The Government of Canada is committed to providing Canadian businesses with the tools they need to flourish and compete in the international economy. To this end, on April 16, 2012, Prime Minister Stephen Harper and Sebastian Piñera, President of Chile, witnessed the signing of the expanded Canada-Chile Free Trade Agreement that will broaden cooperation between the two countries. The announcement was made during Prime Minister Harper’s visit to Santiago, Chile.

The Canada-Chile Free Trade Agreement (CCFTA) is the cornerstone of Canada’s commercial relationship with Chile and was the first comprehensive free trade agreement signed by Chile. Canada has benefitted from this agreement for 15 years and is committed to continuing to build on its success.

The original CCFTA covered trade in goods and services, as well as the bilateral investment relationship, but did not include provisions on financial services. The amended agreement will include a financial services chapter to ensure that Canadian financial institutions enjoy preferential access to the Chilean market and can compete on a level playing field vis-à-vis their competitors. The updated agreement will also modernize our dispute settlement procedures and update technical provisions in government procurement and customs procedures.

Since its launch in 1997, the CCFTA has brought benefits to both countries. Two-way merchandise trade has more than tripled, reaching more than $2.7 billion in 2011. Canadian direct investment in Chile has also expanded, reaching $13.3 billion in 2010. Canada has been the largest source of new direct investment in Chile over the last decade.

Trans-Pacific Partnership

It is important for Canada to participate in regional and global efforts to liberalize trade and investment. To this end, Prime Minister Harper formally indicated Canada’s interest in joining Trans-Pacific Partnership negotiations during the Asia-Pacific Economic Cooperation (APEC) Leaders' Summit in Honolulu in November 2011. Since then, Canada’s International Trade Minister Ed Fast has held meetings with his counterparts from all nine TPP countries. In order to join the negotiations, Canada must have the support of all nine TPP member countries. To date, six of the nine members have confirmed such support.

The Asia-Pacific region is one of the world’s fastest-growing economic regions, with a growth rate of two to three times the global average. Being well-positioned in the region is critical to Canada’s economic growth and prosperity. Canada’s interest in joining the Trans-Pacific Partnership negotiations is consistent with its ambitious pro-trade plan and its objective to broaden and deepen its trading relationships in the Asia-Pacific region.

The nine current TPP members are Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and Vietnam, and represent a market of 505 million people and a GDP of $17 trillion. Japan and Mexico have also expressed their interest in joining.