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March 11, 2010

Tabling of legislation to implement Free Trade Agreement with Colombia

The Federal Government tabled legislation to implement the Canada-Colombia Free Trade Agreement. At the same time, the government was also tabling parallel labour and environment agreements with Colombia.

When passed by Parliament, the agreements will open up new opportunities for Canadian business in Colombia by removing barriers to trade and investment. They will provide important benefits to both Canadians and Colombians.

With the implementation of the free trade agreement, Canadians will benefit from better market access through the elimination of tariffs on goods. Colombia will, in some cases immediately and in others over a 5- to 10-year period, eliminate tariffs on 98 percent of current Canadian exports. Products that will enjoy immediate duty-free access to Colombia include wheat, barley, lentils, peas, beef, paper products and machinery and equipment. Colombia will also eliminate the use of its price band mechanism on selected products, including wheat, barley and pork.

Canadian importers and consumers will also benefit from the elimination of tariffs, in some cases immediately and in others over a 3- to 7-year period, on most imports from Colombia. Colombian manufacturers, exporters and producers will have opportunities to expand their exports into the North American market. Colombia's top imports to Canada include coal, coffee, crude oil and bananas.

The Free Trade Agreement will provide enhanced market access for service sectors of interest to Canada, including infrastructure, mining, energy and professional services. The Agreement commits Canada and Colombia to comprehensive disciplines for the financial services sector, including banking, insurance and securities. Both countries will encourage their domestic professional bodies to enter discussions on mutual recognition agreements, with engineering given priority.

The Free Trade Agreement also includes a comprehensive chapter on government procurement that will give Canadian suppliers a guaranteed ability to bid on a broad range of goods, services and construction contracts carried out by Colombia's central government entities. It will also ensure that practices remain transparent and fair for suppliers.

Canada has free trade agreements in force with Chile, Costa Rica, the European Free Trade Association countries, Israel, Peru, and Mexico and the United States together. It has concluded free trade negotiations with Jordan and Panama. Canada is continuing trade talks with the Caribbean Community, Central America, the Dominican Republic, the European Union, India and the Republic of Korea.