Canada-Chile Free Trade Agreement

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.

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