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CANADA AND COSTA RICA SIGN FREE TRADE AGREEMENT
April 23, 2001
Ottawa, Ontario
Prime Minister Jean Chrétien today announced the signing of a free trade
agreement between Canada and Costa Rica. The signing in Ottawa was witnessed by
the Prime Minister and Costa Rican President Miguel Ángel Rodríguez
Echeverría.
"Costa Rica is a dynamic economy that offers important benefits for
Canada," said Prime Minister Chrétien. "This Agreement shows that
developing countries want to share in the same kind of prosperity that we enjoy.
And they recognize that freer trade is the path to that goal."
The Canada-Costa Rica Free Trade Agreement, signed by Canadian
Minister for International Trade Pierre Pettigrew and Costa Rican Trade and
Industry Minister Tomás Dueñas, provides balanced market access for industrial
and agricultural goods for exporters in both countries. It includes better
access for Canadian fish, paper products, auto parts, plastics, wood and
agricultural goods. The deal will also reduce red tape and ease border
procedures for Canadians doing business in Costa Rica.
Two-way trade in merchandise between Canada and Costa Rica rose to
approximately $269 million in 2000, led by a 25 percent jump in exports.
The new free trade agreement is expected to accelerate that growth.
Two parallel accords were also signed at the ceremony, following a pattern
set by side agreements in the Canada-Chile free trade pact. The Canada-Costa
Rica Agreement on Environmental Co-operation was signed by Environment
Minister David Anderson and Foreign Minister Roberto Rojas. The Canada-Costa
Rica Agreement on Labour Co-operation was signed by Labour Minister
Claudette Bradshaw and Costa Rican Labour and Social Security Minister Bernardo
Benavides. By signing these side agreements, Costa Rica commits itself to
effectively enforcing its environmental and labour laws.
The Prime Minister also noted the conclusion of the Canada-Costa Rica
Joint Statement on Global Electronic Commerce. The Statement demonstrates
both countries' commitment to collaborate closely in fostering an international
environment that supports the growth of electronic commerce and maximizes social
opportunities for all citizens.
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PMO Press Office: (613) 957-5555
Backgrounder
CANADA-COSTA RICA FREE TRADE AGREEMENT
The Canada-Costa Rica Free Trade Agreement signed by Canadian Minister for
International Trade Pierre Pettigrew and Costa Rican Trade and Industry Minister
Tomás Dueñas is recognition that trade is a path to prosperity that can be
shared by larger and smaller economies alike.
To take into account the difference in the levels of development and size of
the two economies, Canada will liberalize its market more quickly than Costa
Rica. For example, in market access, Costa Rica will eliminate its tariffs
immediately on some 67 percent of its tariff lines, and over a period of up
to 14 years for the remaining goods. For its part, Canada will provide immediate
duty-free access for some 86 percent of its tariff lines, the remaining
goods being subject to tariff elimination over a period of up to eight years.
Under the Agreement, most industrial products will receive immediate
duty-free access on implementation, including some key Canadian export interests
such as automotive and environmental goods, newsprint, prefabricated buildings
and some construction products. Tariffs on the remainder of these goods will be
gradually phased out over a period of either seven or 14 years, depending on the
type of product. Significant gains are also expected for agricultural products
such as french fries, pulses, grains and oilseed products, fresh fruit and
vegetables and processed food products.
One of the main accomplishments of the Agreement is the successful
negotiation of a precedent-setting framework for competition policy that could
serve as a model for the region. The chapter on competition policy will promote
greater transparency and certainty in both markets and enhance the effectiveness
of enforcement activities by competition authorities in the two countries
through the establishment of a concrete framework for co-operation and
consultation.
Additionally, the Agreement includes a comprehensive chapter on trade
facilitation that will serve to make trade procedures more efficient and reduce
formalities and costs for Canadian businesses. The Canada-Costa Rica Free Trade
Agreement is the first bilateral free trade agreement containing innovative
stand-alone provisions on trade facilitation.
Other areas addressed include the temporary entry of business persons,
customs procedures, rules of origin, antidumping and non-substantive provisions
for services, investment and government procurement. Cultural industries are
exempted.
The Government of Canada has consulted extensively on this initiative with
businesses, non-governmental organizations and Canadians at large, as well as
with the provinces and territories. The response received was strong and
indicated support for pursuing a free trade agreement with Costa Rica.
Negotiations with Costa Rica were launched in June 2000 and concluded in early
April 2001.
The full statement is posted on the following Web site:
http://www.dfait-maeci.gc.ca/tna-nac/Costa_Rica-e.asp
Canada-Costa Rica Agreement on Environmental Co-operation
The Canada-Costa Rica Agreement on Environmental Co-operation commits the
parties to ensure their laws provide for high levels of environmental protection
and to effectively enforce those laws through appropriate government action.
There are commitments to ensure that all laws, regulations and administrative
rulings covered by the Agreement are promptly published or made publicly
available and calls for the advance publication, to the extent possible, of
proposed laws or regulations to allow for public comment. The parties commit to
ensure private access to remedies and that judicial and administrative
proceedings are fair, open and equitable.
The private access to remedies is to remedies under the laws of each Party.
Hence Canada commits to provide access to remedies in Canada under the law of
Canada, and Costa Rica commits to provide access to remedies in Costa Rica under
the law of Costa Rica.
The initial priorities for co-operative activities will be strengthening
environmental management systems, expanding and strengthening the role of the
public in environmental policy making, and promoting innovation and efficiency
in the conservation of biodiversity and the sustainable use of natural resources.
The Agreement contains provisions relating to transparency and public
participation, including a process whereby a person or non-governmental
organization may request a response of either party with respect to the
effective enforcement of their environmental laws and regulations. A summary of
both the inquiry and response will be made public.
The full statement is posted on the following Web site:
http://www.ec.gc.ca/international/costarica/index_e.htm
Canada-Costa Rica Agreement on Labour Co-operation
Overall, the Canada-Costa Rica Agreement on Labour Co-operation demonstrates
Canada’s commitment to promoting and protecting workers' rights in the context
of trade liberalization in the Americas.
The agreement ensures the effective enforcement of domestic labour law
related to core labour standards defined in the 1998 International Labour
Organization (ILO) Declaration on the Fundamental Principles and Rights at Work.
These are freedom of association; the right to collective bargaining; the
abolition of forced labour and child labour; and the elimination of
discrimination in employment. The Agreement also includes a co-operative work
program and a mechanism to allow the public to raise concerns about the
effective enforcement of labour law in the other country. This mechanism can
lead to ministerial consultations and an independent third-party review panel.
The full statement is posted on the following Web site:
http://labour.hrdc-drhc.gc.ca/psait_spila/aicdt_ialc/documents
Canada-Costa Rica Joint Statement on Global Electronic Commerce
The Canada-Costa Rica Joint Statement on Global Electronic Commerce was
developed in the margins of the Free Trade Agreement negotiations with a view to
strengthen both countries’ existing collaborative efforts on electronic
commerce issues, facilitate cross-border electronic transactions and extend the
benefits of the information economy to all citizens.
Canada and Costa Rica share a common vision in the development of an
information society and economy and hold similar points of view on key questions
surrounding the future growth of electronic commerce. Both countries recognize
the need for international harmonization of e-commerce policies. Co-operation on
consumer protection, e-government, security, privacy and market development are
part of the bilateral action agenda. Canada and Costa Rica also agree to
collaborate closely in international forums, including the World Trade
Organization (WTO); the Free Trade Area of the Americas (FTAA); the
Inter-American Telecommunications Commission (CITEL); and various digital divide
initiatives, such as the Digital Opportunity Task Force (known as the G-8 DOT
Force) and the UN ICT Task Force.
The full statement is posted on the following Web site:
http://www.ecom.ic.gc.ca/english/index.html
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