Canada Pursues Free Trade Network

by Mike Godfrey, Tax-News.com, Washington

31 January 2011

Canada has announced the launch of free trade negotiations with Morocco, as part of the government’s ongoing efforts to broaden its network of agreements that reduce tariff barriers on international bilateral trade.

Annoucing the launch of the negotiations, the government stated: “Canada and Morocco already enjoy close economic relations and it is hoped that a free trade agreement will help increase trade between the two countries. A free trade agreement would also be the gateway to a deepened Canadian commercial presence in the Mediterranean region and North Africa.”

The government said that it is to pursue a comprehensive free trade agreement that will cover a wide range of areas, including trade in goods and services, investment, and government procurement. An agreement with Morocco would also deliver commercial benefits across a wide range of sectors, including the manufacturing, agriculture and agri-food, and service industries. In addition, in keeping with Canada’s approach to free trade negotiations, Canada will seek provisions on the environment and labour cooperation.

Morocco is considered an important trading partner by Canada. In 2009, bilateral merchandise trade totalled CAD513m (USD515). Morocco is already an important export destination for Canadian merchandise exports, which were valued at CAD375m in 2009.

As part of its efforts to reduce the taxation placed on exporting businesses, the government is currently negotiating with 50 countries on opening new markets.

Since 2006, Canada has concluded free trade agreements with the European Free Trade Association Association (Iceland, Liechtenstein, Norway and Switzerland), implemented on July 1, 2009; and Peru, implemented on August 1, 2009. Canada has also signed trade agreements with Colombia, on November 21, 2008; Jordan, on June 28, 2009; and Panama, on May 14, 2010.

The Canadian government and the European Union recently concluded the sixth round of trade talks towards an ambitious free trade agreement on January 21 in Brussels. Canada has concluded a first round of talks with India, having launched negotiations on November 12, 2010, and is also pursuing the expansion of existing free trade agreements with Chile, Costa Rica and Israel.

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