Joint Statement: Ninth Free Trade Commission Meeting Canada – Chile Free Trade Agreement

June 2, 2021

Following the ninth meeting of the Chile - Canada Free Trade Commission, convened virtually on June 2, 2021, the Acting Director General of Bilateral Economic Affairs of the Undersecretariat of International Economic Affairs of Chile, Ms. Andrea Cerda and the Director General of Trade Policy and Negotiations of Global Affairs Canada, Ms. Kendal Hembroff, co-chaired the Commission’s meeting and agreed on the following statement that summarizes the outcome of the meeting.

1. On the occasion of the ninth meeting of the Chile-Canada Free Trade Commission (FTC) meeting, we welcomed the opportunity to assess our achievements to date and review the state of the implementation of the Chile-Canada Free Trade Agreement (CCFTA). Both Parties were pleased to confirm that our increasingly important bilateral trade and investment relationship is being reinforced by the set of predictable and transparent rules established under the CCFTA. The CCFTA has been in force since July 1997. It represents Canada’s first FTA with a South  American country and Chile’s first comprehensive FTA with any country. This year, we commemorate 25 years since the CCFTA was signed.
2. We are very pleased to report that our trade and investment relationship under the CCFTA is still, 25 years after its signing, a key foundation for growth and economic development in both of our countries. Since the Agreement entered into force in 1997, our bilateral trade has more than tripled and investment has greatly benefited.
3. Looking to the future, we reaffirmed our commitment to maintaining the CCFTA as a relevant and useful instrument that will continue to benefit our countries for years to come and we remain committed to continue to promote the Agreement so that more Canadian and Chilean companies can take advantage of the benefits that the Agreement provides.
4. The FTC welcomed the report of the 19th Regular Council Session of the Canada-Chile Commission for Environmental Cooperation Agreement (CCCECA), held online on April 27, 2021. At the CCCECA, Canada and Chile exchanged information and views on their countries’ environmental policies and priorities. They also took stock of past cooperation and approved the 12th Work Program (2021-2022). Subsequent to the CCCECA, a Public Session was held on the theme "Sustainable Development of Coastal Areas in a Changing Environment", which served as an important forum for dialogue and debate with civil society. Over the last year, Canada and Chile have adapted to the restriction imposed as a result of the COVID-19 pandemic by cooperating through virtual means on several issues, including: climate change; clean technologies; biodiversity; and circular economy.
5. Likewise, the FTC welcomed the report from the meeting of the Canada-Chile SPS Committee, held online on May 26, 2021. At the meeting, there was an agreement to develop Rules of Procedure for the Committee under the modernized Agreement. Canada provided an update on the implementation of the Safe Food for Canadians Regulations. Both Canada and Chile provided updates on their African Swine Fever preparedness efforts and they agreed to establish a bilateral working group for approving exports of products of animal origin. Both Parties agreed for Canada´s exporters, to review the performance of the Canadian canola pilot project with aim of making this a permanent arrangement, and for Chile, the reply to the Systems approach proposal for stone fruits for the incoming season. A number of other specific market access issues were raised by each country and action items put in place, where necessary. Dialogue was very constructive and both countries are committed to continue addressing SPS topics. It was agreed the next Canada-Chile SPS Committee meeting will be held in 12-18 months.
6. The FTC received a report from the Trade in Goods and Rules of Origin Committee held online on May 27, 2021. The Committee reviewed the bilateral trade in goods agenda. They agreed on a work plan to conduct the Product Specific Rules of Origin (PSROs) technical update from the fifth amendment of the Harmonized System (HS2012) to the sixth and seventh amendment (HS2017 and HS2022, respectively). They also agreed to exchange preference utilization statistics. This exchange represents a useful tool to further develop trade policies to promote and improve the CCFTA utilization between each Party's stakeholders.
7. The FTC welcomed the report on the Trade and Gender Committee meeting, held on May 14, 2021. The Committee highlighted the challenges posed by the COVID-19 pandemic, especially for under-represented groups such as women. It was agreed that it was important to work together with other CCFTA Committees to showcase the relevance of gender on other trade issues. Finally, Chile and Canada agreed to collaborate and leverage opportunities through the WTO Informal Working Group on Trade and Gender and the Global Trade and Gender Arrangement, among others.
8. Canada and Chile reiterated the important role the Ottawa Group has served as a body to foster dialogue on matters such as trade and health throughout the COVID-19 pandemic. Likewise, the Parties also highlighted the necessity of working together in the lead up to MC12 to support priorities that will address today’s challenges.
9. Chile shared its latest update regarding the CPTPP ratification process and thanked Canada for its continued support on this crucial issue. Both Parties agreed to keep working together to facilitate international trade and expand the multilateral rules-based trading system.
10. Canada and Chile exchanged views on recent trends in international investment law and discussed Canada’s adoption of a new Model FIPA with a particular focus on innovations in substantive and procedural provisions. They also discussed the progress of Canada’s implementation process of the Investment Court System with the EU. Both Parties agreed to further discuss these and other investment related topics at a technical level following the FTC.
11. Finally, it was agreed that Canada will host the next meeting of the CCFTA Commission in 2022.