Joint Communiqué: Prime Minister Jean Chrétien and six Central American leaders

Attached is a joint communiqué released today following the meeting between Prime Minister Jean Chrétien and the six Central American leaders.

PMO Press Office: (613) 957-5555

The Prime Minister of Canada, the Right Honourable Jean Chrétien met today, May 16, 1996 with the President of the Republic of Nicaragua, Her Excellency Violeta Barrios de Chamorro, the President of the Republic of Costa Rica, His Excellency José Maria Figueres Olsen, the President of the Republic of El Salvador, His Excellency Armando Calderón Sol, the President of the Republic of Guatemala, His Excellency Alvaro Arzú Irigoyen, the President of the Republic of Honduras, His Excellency Carlos Roberto Reina Idiáquez of Honduras, and the Prime Minister of Belize, the Honourable Manuel Esquivel.

The Prime Minister welcomed this opportunity to review and further develop the discussions which were held in January of 1995 when he met with the Central American leaders in San Jose, Costa Rica. The leaders underlined the importance of these meetings to fortify the relations which have developed between the people and governments of Central America and Canada.

The leaders highlighted the far-reaching importance of the Central American Alliance for Sustainable Development, agreed to in October 1994, which constitutes the reference point for regional integration. In this sense, they agreed that sustainable development is of utmost importance for political, economic, social, and cultural progress as well as for the natural environment of Central America. They also reiterated that sustainable development includes a broad range of policies in such matters as natural resources management, economics and finance, reduction of poverty, the identity and respect of indigenous rights, good governance, and full respect for human rights. Prime Minister Chrétien stated that Canada wishes to continue working as an ally with Central America in the implementation of commitments contained in their Alliance for Sustainable Development.

During their discussions the leaders acknowledged the notable progress which has been made in consolidating peace and democracy in Central America, and expressed their appreciation for the positive role which Canada has played in support of these efforts. They recognized that the human rights situation has improved substantively but continues to be a source of concern for the leaders.

They especially welcomed the recent signing of the Socio-Economic and Agrarian Accords between the Government of Guatemala and the United National Revolutionary Front (URNG). They expressed their satisfaction that this will pave the way for the conclusion of a comprehensive and lasting peace accord in Guatemala in the near future.

While the leaders recognized that Central America has made important advances in attaining peace, reconciliation and development, the leaders noted that one of the most lethal legacies of these past hostilities was the continued presence of thousands of anti-personnel mines which continue to take the lives of innocent civilians and impede social and economic development in the mined areas. Hence, they pledged to support a resolution at the OAS General Assembly in June calling for the total elimination of these devices. At the same time, they also agreed to support those international agreements on the prohibition of the manufacturing and marketing of mines. Prime Minister Chrétien reiterated his support for the demining efforts that are presently being undertaken in the region and stated his government's determination to assist in the Central American demining program.

Following up on his welcoming remarks, Prime Minister Chrétien stated that this meeting marked a new chapter in relations between Canada and Central America. He noted that with the end of most armed conflicts in the region and the decided effort being made to increase political and economic stability, there is renewed interest in trade and investment opportunities. In 1995 alone, trade between Canada and Central America increased by more than twenty percent.

The leaders committed themselves to further reducing barriers to trade and to improve investor confidence. In this regard, Prime Minister Chrétien recognized that several Central American governments were well advanced in concluding Foreign Investment Protection Agreements with Canada and that the Export Development Corporation of Canada (EDC) had offered to negotiate a line of credit with the Central American Bank for Economic Integration (CABEI). They also noted their interest in improving air transport linkages between their countries.

As part of their efforts to promote regional cooperation and consultation, the leaders emphasized the importance of the Declaration of Principles and Plan of Action of the Summit of the Americas which is being implemented through existing hemispheric, regional and national institutions. They noted that the decision taken during the Summit to create a Free Trade Area of the Americas (FTAA), in which they are all actively participating through established working groups, offers a valuable opportunity to extend hemispheric cooperation and economic relations to the benefit of Canada and Central America. In this regard, they agreed that the participation of the private sector is highly beneficial in achieving the objectives of hemispheric integration.

In recognition of the difficulties resulting from the process of opening markets, Canada offered to continue sharing its experience and expertise with the Central American governments in preparing their economies for the benefits of free trade. The Central American Leaders also expressed their satisfaction at the recent changes to Canada's General Preferential Tariff in order to provide better access for raw sugar into its market.

Leaders expressed their firm opposition to the unilateral imposition of any measures that affect third countries which contradict the internationally accepted practices, principles and rules of open trade and investment. Such impositions create uncertainty and instability for the international investment regime and trading environment. They underlined the fundamental right of sovereign states to pursue trade and economic links with countries of their choice.

Participants in the Ottawa meeting underlined their support for current efforts to reform the Organization of American States (OAS) and to place the hemisphere in a leadership position on the main issues of the 21st century.

The leaders noted the many linkages which have developed between Canada and the region in recent years, as a direct result of democratization and the steady movement toward open economies and freer trade regimes. They also recognized the many people and organizations that have supported efforts to strengthen democracy and respect for human rights, and promote the values of civil society.

The Central American Presidents and the Prime Minister of Belize expressed their profound appreciation to the people and government of Canada for the warm hospitality which they received during their visit.

Ottawa, May 16, 1996