What we will do

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Environment and Trade in the AmericasThe
Canadian Experience

• Agenda 21 Trade and Environment
• Tegucigalpa, Honduras
• December 13-14, 2001

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Introduction

• Trade is critically important to Canada - Exports
  are now 45.6 of GDP up from 25 in 1990 - 2.5
  Billion/day in 2-way trade
• Most Canadians are supportive of trade
  liberalization and globalization but increasingly
  that support is linked to assurances that
  environmental and social issues will be addressed
• Canadas approach to environment and trade in the
  Americas reflects these two realities

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Objectives of Presentation

• To describe the evolution of Canadas approach to
  addressing environmental considerations in the
  context of trade liberalization in the Americas
  with a particular focus on environmental side
  agreements
• To highlight current activities
• To highlight the key challenges and opportunities

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Canadas Broad Environment and Trade Policy
Objectives in the Americas

• to ensure effective consideration of
  environmental issues in the context of bilateral
  and sub-regional free trade agreements
• to ensure that Canadas right to right to
  regulate in the public interest, including to
  protect the environment, is preserved in any
  trade deal
• to influence the broader process of hemispheric
  integration and trade liberalization to promote
  mutually supportive trade and environment
  policies and sustainable development

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Evolution of Canadas ApproachCanada and the
NAFTA

• 1989 - Canada-US FTA
• 1990 - A US-Mexico FTA? Canada joins and it
  becomes the NAFTA
• The NAFTA as the Greenest trade deal
• The Clinton Side Agreements
• Effective Enforcement, Public participation and
  transparency, support NAFTA environment goals,
  environmental cooperation

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Evolution of Canadas Approach The Miami Summit
and Chile

• 1994 Summit of the Americas - US vision of
  extending NAFTA to the Hemisphere
• Chilean NAFTA Accession/no fast track
• Canada and Chile negotiate an Interim FTA and
  environmental side agreement - NAFTA light -
  fines not trade sanctions, national secretariats
• Canada-Chile side agreement attracts interest as
  Canadas focus shifts to influencing the FTAA

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Evolution of Canadas ApproachProjecting
Canadian Values/Shaping the FTAA

• Canadas trade and environment negotiations in
  Central America (Costa Rica, CA-4) and the
  Caribbean signal, and its efforts to in the
  context of the FTAA, signal its commitment
  mutually supportive environment and trade
  policies and promoting sustainable development
• Support for trade liberalization in Canada is now
  linked to assurances that it will promote respect
  for the rule of law, democracy, respect for human
  rights. labour standards and the environment.

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Canadas Current Environment and Trade Activities
in the Americas

• Ongoing Implementation of NAAEC and Chile
• Entry into Force of Costa Rica Agreement and
  development of cooperative activities
• Environmental Negotiations with Guatemala, El
  Salvador, Honduras and Nicaragua
• Upcoming negotiations with Caricom
• Environment in the FTAA and Summit Action Plan
  Implementation

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Key Features of the Canada-Costa Rica
Environmental Cooperation Agreement

• Objectives
• Obligations
• commitments to high levels of protection
• effective enforcement of laws
• fair, open equitable procedures
• Accountability
• Cooperative Activities
• Consultations to resolve disputes

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Canada-Costa Rica Priorities for Cooperation

• Strengthening environmental management systems
• institutional and legal frameworks
• processes and procedures for development and
  enforcement of environmental laws
• technical and scientific capacity
• participation in environmental decision-making
• biodiversity and sustainable resource use

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Canada-Central America Environmental Negotiations

• these negotiations will commence very soon
• Canada has proposed that the Canada-Costa Rica
  Agreement on Environmental Cooperation can be the
  model
• The final shape of the Agreement will depend on
  the outcome of the negotiations but it is
  envisaged that it will include cooperative
  intiatives to strengthen environmental management
  systems.

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Key Challenges

• The FTAA will not sell in North America without a
  meaningful environmental dimension
• The FTAA will not sell in Latin America if it
  includes environmentally based trade sanctions.
• Significant resources must be found to support
  capacity building to strengthen environmental
  management systems and decision-making throughout
  the region

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Key Opportunities

• The US is moving on fast-track and will soon
  have a position on environment in the FTAA
• Brazil has proposed a positive agenda and process
  for considering environment in the FTAA
• The FTAA text has been made public
• the FTAA Civil Society Committee procedures are
  being improved
• NGOs are making proposals for an Ecological
  Accord of the Americas

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Next Steps

• A process need to be agreed to and a table
  established that provides an opportunity for the
  countries of the Americas to begin a serious
  discussion on this issue.
• The next two years represent the best opportunity
  to shape a positive compromise on environment in
  the FTAA that is acceptable to both North and
  South. Waiting until the last minute is not a
  recommended approach

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