El acuerdo de libre comercio de canadá con colombia
1. THE CANADA – COLOMBIA FREE TRADE AGREEMENT
Enhancing Opportunities in the Canadian Market for
Innovative High-Value Colombian Agricultural Products
January 15-17, 2013
Centro Internacional de Agricultura Tropical (CIAT), Cali, Colombia
Craig M. Johnston
Berkeley Counsel
Berkeley Corporate Advisors
Toronto, Canada
Tel +1 416 364 7772
Email craig @berkeleycounsel.com
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Introduction
• Canada-Colombia Trade
• International Context for Canada-Colombia FTA
• Objectives of the Agreement
• Tariffs
• Non-Tariff Issues
• Co-operation and Dispute Resolution
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Canada Colombia Free Trade Agreement
• Signed in November 2008
• Came into force August 15, 2011
• Intended to:
• Create immediate and future trade advantages
• Establish a framework for ongoing relationship
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Canada
• Canada is one of the world’s most economically strong
and stable countries:
• GDP per person - US$ 45,000
• Economy growing at 2%/year
• Inflation < 2% per year and stable
• Unemployment 7%
• Low public deficit and strong $CDN vs. $USD
• Politically stable
• Safe
• Stable regulatory environment
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Trade Activity and Investment Levels
Canadian
• exports to Colombia: COP 1,361 billion
• imports from Colombia: COP 1,436 billion
• direct invest in Colombia: COP 3,052 billion
Colombian
• direct invest in Canada: COP 1.8 billion
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Trade Activity and Investment Levels
Canadian
• exports to Colombia: COP 1,361 billion
• imports from Colombia: COP 1,436 billion
• direct invest in Colombia: COP 3,052 billion
Colombian
• direct invest in Canada: COP 1.8 billion
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Canadian Exports and Investment
• Canada’s merchandise exports totalled COP 1,361 billion in
2011
• Included machinery, cereals, motor vehicles, vegetables, paper
and paperboard;
• Canadian direct investment in Colombia was COP 3,052 billion
at the end of 2011;
• Canadians have invested in the Colombian extractive sectors
such as mining and oil and gas exploration and production, and
the financial sector as well as in agri-food, pulp and paper,
printing, shoe manufacturing, plastics, education and forestry;
• Talisman Energy, Pacific Rubiales, Petrominerales, Nexen,
Scotiabank, Continental Gold, Bata Footwear, Kruger Paper,
McCain Foods, LaSalle College, Brookfield Asset Management,
SNC-Lavalin and Norton Rose.
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Colombian Exports and Investment
• Exports from Colombia to Canada reached COP 1,436
billion in 2011;
• 50% agricultural products, 42% energy;
• Agricultural imports include coffee, bananas, fresh
flowers, and sugar, representing 85% of total agricultural
imports from Colombia;
• There has not been significant investment by Colombians
in Canada.
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Trade in Services
• Canada’s services exports to Colombia were COP 181
billion in 2009;
• Colombia’s services exports to Canada were COP 95
billion in 2009;
• Canadian service exports to Colombia have been growing
while Colombian service exports to Canada have
remained steady.
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International and Regional Context
• GATT and WTO – International Trade Agreements
• Andean Community (1969)
• Andean Trade Promotion and Drug Eradication Act (1991)
• North American FTA (U.S. Canada Mexico) (1994)
• Canada-Chile FTA (1997)
• Canada-Peru FTA (2009)
• Canada-Colombia FTA (2011)
• Colombia-U.S. FTA (2012)
• Canada-MERCOSUR Exploratory Trade Discussions
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Main Objectives of the Agreement
• National Treatment
• Elimination of Tariffs
• Elimination of Non-Tariff Barriers
• Facilitate Investment
• Facilitate Trade in Services
• Forum and Mechanisms for Co-Operation and Dispute
Resolution
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National Treatment
• Imported products to be given treatment no less
favourable than domestic products;
• General prohibition on the use of internal taxes and other
internal regulatory measures so as to afford protection to
domestic production;
• Exceptions: prohibited goods, wine and distilled spirits
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Elimination of Tariffs
• 3 levels of Canadian tariffs:
• General / Default -- 35%
• Most Favoured Nation -- WTO Members
• Specific:
• NAFTA, Chile, Peru, Israel, Costa Rica, Colombia
• European Free Trade Association (Iceland, Lichtenstein, Norway and
Switzerland)
• General Preferential Tariff, Least Developed Country Tariff
• Commonwealth
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Staged Tariff Elimination
• Canada Staged Tariff Reductions:
• A : Immediate
• B : 3 years (now effective) – some boots
• C : 7 years – some textiles, some ships,
• D17 : 17 years – some refined sugar
• E : no elimination – dairy products, eggs, turkey, poultry, some
invert sugars
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Rules of Origin
• To be eligible for lower tariffs, goods must originate in
Colombia;
• Agricultural goods grown in Colombia generally are
“Colombian”;
• Rules for goods processed or manufactured in Colombia
from imported goods
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Non-Tariff Barriers
• Import and Export Restrictions;
• Import Licensing;
• Administrative fees and Formalities;
• Export Taxes;
• Sanitary and Phytosanitary Measures;
• Export subsidies.
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Investment
• investors and investments to be given “national
treatment”, with respect to the establishment, acquisition,
expansion, management, conduct, operation and sale or
other disposition of investments ;
• investments to be treated in accordance with the
customary international law minimum standard of
treatment of aliens, including fair and equitable treatment
and full protection and security;
• Compensation for expropriation or breach
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Other Aspects
• Trade in Services
• Temporary Entry for Business Persons
• Competition Policies
• State Enterprises
• Government Procurement
• Labour
• Environment
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Co-Operation and Dispute Resolution
• Committee on Trade in Goods
• Committee on Sanitary and Phytosanitary Measures
• Dispute Resolution
