Canada Pushes For FTA Negotiations With Mercosur

Ed Fast, Canada's Minister of International Trade, has concluded a two-day trade visit to Argentina, to promote the conclusion of exploratory talks towards a possible free trade agreement (FTA) between the nation and the Mercosur trade bloc of Latin American nations.

During his visit to Buenos Aires, Fast met with Argentina’s Minister of Foreign Affairs, Hector Timerman. He also met with political and business leaders to advocate more trade and job-creating partnerships between Canada and Mercosur member states, Argentina, Brazil, Paraguay and Uruguay.

Exploratory talks commenced in the third quarter of 2010, and the Canadian government said discussions to date have been productive. Two exploratory meetings have now taken place, with a third meeting expected to take place in Ottawa in May.

“My visit to Argentina was an opportunity to promote the mutual benefits of expanded trade and investment ties between us," said Fast. "Deepening and broadening Canada’s economic relationship with high-growth markets like Mercosur is a key part of our pro-trade plan for jobs, economic growth and long-term prosperity.”

“Canada-Mercosur exploratory trade talks are seeking to identify areas of mutual interest toward the potential negotiations of an agreement that would be mutually beneficial,” he added..

Mercosur is a market of nearly 250 million consumers and has a combined gross domestic product of almost CAD3 trillion (USD3 trillion). It also accounts for almost three quarters of total economic activity in South America.

In 2011, bilateral merchandise trade between Canada and Mercosur reached more than CAD9.7bn, a 213% increase over the last decade. Currently, companies listed on the Toronto Stock Exchange operate more than 200 mineral projects in Argentina. At the end of 2010, the stock of Canadian direct investment in Argentina stood at CAD2.5bn, an increase of 25.8% compared with 2009. In 2011, bilateral merchandise trade between Canada and Argentina reached almost CAD2.9bn, up 55.2% from 2010.

The conclusion of an FTA, which would ease tax and non-tax barriers, would provide a significant boost to cross-border trade and investment flows.

Source: Tax News