El acuerdo de libre comercio de canadá con colombia

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

Introduction • Canada-Colombia Trade

•  International Context for Canada-Colombia FTA

• Objectives of the Agreement

•  Tariffs

• Non-Tariff Issues

• Co-operation and Dispute Resolution

Craig M. Johnston - Berkeley Corporate Advisors 2

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


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


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


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.


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.


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.


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


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


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


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


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


Specific Tariff Reductions •  Flowers:

•  Roses •  Carnation •  Cymbidium

•  Vegetables •  Cherry tomatoes •  Asparagus •  Onions •  Cauliflower •  Carrots

•  Processed foods: •  Tomato juice •  Ketchup •  Jams

•  Textiles


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


Non-Tariff Barriers •  Import and Export Restrictions; •  Import Licensing; • Administrative fees and Formalities; • Export Taxes; • Sanitary and Phytosanitary Measures; • Export subsidies.


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


Other Aspects •  Trade in Services •  Temporary Entry for Business Persons • Competition Policies • State Enterprises • Government Procurement •  Labour • Environment


Co-Operation and Dispute Resolution • Committee on Trade in Goods • Committee on Sanitary and Phytosanitary Measures • Dispute Resolution



Thank you!

Berkeley Counsel 59 Berkeley Street Toronto, Ontario Canada M5A 2W5

El acuerdo de libre comercio de canadá con colombia

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