FAIT Committee Report

Recommendation 1

That, in order to generate economic benefits for Canada, carve out a distinct Canadian identity, build momentum for the Free Trade Area of the Americas (FTAA), and serve as an insurance policy in the event of FTAA failure, the Government of Canada aggressively pursue bilateral trade and investment agreements with Latin American and Caribbean countries as well as country groupings.

Recommendation 2

That Canada form alliances with like-minded countries and regions within the hemisphere to encourage reluctant countries to become more active in economic integration efforts and to dissuade potential FTAA partners from resorting to protectionist measures.

Recommendation 3

That, Canada take on a “champion” role regarding the FTAA, mobilizing political, civil society and business support to achieve a hemispheric free trade agreement by 2005.

Recommendation 4

That the federal government work in conjunction with other countries to harmonize statistical methodologies in the collection of international trade data.

Recommendation 5

That, given the relative importance of the United States and Mexican markets to Canadian business, the Government of Canada actively seek to remove existing impediments to trade and investment between Canada and its NAFTA partners. The government should ensure that its regulations and policies governing trade are appropriate to the level of economic integration that already exists between the three countries.

Recommendation 6

That, when negotiating future trade agreements, the federal government bear in mind the need to improve upon certain provisions of the NAFTA, such as those identified in the body of this report.

Recommendation 7

That, as a preliminary step in enhancing its bilateral relationship with countries in Latin America and the Caribbean, the Government of Canada accelerate its efforts to complete ongoing negotiations with individual countries on Foreign Investment Protection and Promotion Agreements (FIPA) and double‑taxation agreements.

Recommendation 8

That, in an effort to advance its goal of trade liberalization and economic integration in the Americas, the Government of Canada energetically pursue its ongoing bilateral free trade negotiations with the CA-4 countries and its preliminary discussions with the CARICOM group. In light of the political opposition in Costa Rica to the Canada‑Costa Rica FTA, Canada should also make an effort to promote its trade accords within the participating countries to ensure that the public is well informed about the benefits of those agreements.

Recommendation 9

That, as a precursor to further bilateral trade liberalization within the Andean Community, the federal government agree to the organization’s request for Preferential Market Access, but condition its response on the successful conclusion of negotiations on Foreign Investment Protection and Promotion Agreements and double-taxation agreements, as well as on the resolution of regulatory obstacles to Canadian investment.

Recommendation 10

That Canada initiate bilateral free trade negotiations with the Andean Community and the Mercosur countries, or alternatively, interested countries within those regional groupings. With Brazil already having been identified by the Government of Canada as its priority South American market, considerable effort should be devoted to improving Canada’s bilateral relationship with that country.

Recommendation 11

That the federal government take measures to enhance its existing efforts to raise Canadian business awareness of commercial opportunities in the Americas. Additional funds should be allocated to assist the activities of Canada’s foreign diplomatic posts in this area, and greater encouragement and support provided to Chambers of Commerce throughout the Hemisphere.

Recommendation 12

That the Parliament of Canada seek to establish closer parliamentary ties with the countries of the Americas.

Recommendation 13

That, in order to create a more integrated and efficient presence abroad, the Government of Canada ensure that greater co-ordination and communication be introduced between Canadian Embassies and Consular Offices abroad. Within each country, a single foreign-service strategy and explicit organizational structure should be developed.

Recommendation 14

That, in order to assist with the communication and dissemination of information with regard to Canada’s trade-related initiatives, designated media contacts be established in Canadian embassies, particularly in those countries displaying considerable Canadian trade interests.

Recommendation 15

That Canada provide the smaller economies of the Americas with greater financial and technical resources to help build the capacity necessary for these countries to negotiate, adapt to and benefit from the FTAA. Technical assistance in the development of vocational training and literacy programs, and national strategies and programs to deal with the adjustment to free trade should be provided.

Recommendation 16

That the federal government support the inclusion into the FTAA of special measures that would provide developing countries participating in the FTAA with a flexible time frame for implementing the terms of the agreement.

Recommendation 17

That Canada encourage other participating members of the Inter‑American Development Bank to strengthen the mandate of that institution and its contribution to addressing the development requirements of countries in the Americas, as outlined in the Plan of Action of the Third Summit of the Americas.

Recommendation 18

That, in order to further enhance transparency of free trade negotiations as well as civil society participation, the Government of Canada actively encourage governments within the Americas to consult widely with their populations and civil society during the FTAA negotiating process; to render public FTAA negotiating texts; to encourage the activities of non-governmental organizations within their respective countries; and to help initiate a dialogue between business and non-governmental organizations on free trade issues.

Recommendation 19

That Canada spearhead the development of a hemispheric education and awareness campaign on the merits of free trade in general, and the FTAA in particular. Consideration should be given to the use, within such a campaign, of Canadian trade experts, as well as to an enhanced employment of embassy and foreign Chamber of Commerce resources.

Recommendation 20

That the Government of Canada encourage the use by FTAA participants of the benefits of free trade agreements to address income inequality concerns.

Recommendation 21

That the Government of Canada diligently strive to attain FTAA consensus on the importance of achieving a comprehensive agreement to protect investment within the FTAA. NAFTA type investor-state provisions should be excluded from the FTAA agreement.

Recommendation 22

That Canada promote the injection of clauses within the FTAA Agreement that would tie countries’ access to the benefits from FTAA membership to proven respect for democratic rights. 

Recommendation 23:

That the Government of Canada ensure its ability to preserve and promote cultural diversity by accelerating its efforts to achieve the desired New International Instrument on Cultural Diversity.