Chritien vows to look out for smaller economies
Canada to consider separate regional free trade deal

January 20, 2001
Andrew McIntosh National Post

MONTEGO BAY, Jamaica - Jean Chritien yesterday tried to reassure nervous Caribbean political leaders that their concerns will not be ignored in any hemispheric free trade talks.

And the Prime Minister pledged to examine a separate new free trade deal with Caribbean countries following criticism that a previous 14-year-old economic agreement was outdated.

"Canada firmly believes that the summit process must be inclusive of all -- both small and large countries," Mr. Chritien said.

"Globalization is creating new challenges for all countries. For smaller economies, Canada recognizes that some of these challenges present particular problems. We are very prepared to work with the Caribbean to determine ways in which we, and others, might help you address these challenges."

Mr. Chritien was speaking at the opening of a summit with Percival James Patterson, the Prime Minister of Jamaica, and Owen Arthur, the Prime Minister of Barbados.

Mr. Arthur paid a passionate tribute to the late Pierre Trudeau for providing generous development assistance to the Caribbean, adding Mr. Chritien represented "a guardian of that legacy."

But Mr. Patterson, who has governed Jamaica since 1992, aggressively lectured Mr. Chritien and criticized Canada's handling of important Caribbean trade matters.

Mr. Patterson said the 1986 trade deal between the region and Canada, known as CARIBCAN, is outdated. It needs to include freer trade in services because it restricts the region's ability to boost exports, he said.

Canadian officials claim 95% of Caribbean exports to Canada enter duty-free. Excluded, though, are textiles, clothing, footwear and agricultural products.

However, Mr. Patterson said the growth of Canada-Caribbean trade has "not lived up to expectations" because only 7.5% of the Caribbean's total exports to Canada enter duty-free under current trade agreements. Canadian officials were unable to explain the discrepancy in the figures.

The Jamaican Prime Minister also complained that at the onset of hemispheric free trade talks, Canada and other big countries promised the concerns of fragile Caribbean countries would not be overlooked.

Thirty-four countries are working toward reaching a Free Trade Agreement for the Americas (FTAA) by 2005.

Caribbean governments derive most, if not all, of their revenue from duties and tariffs on imported goods.

Under a new hemispheric deal, many countries will have to abolish the tariffs and introduce new tax systems, officials said.

Mr. Patterson said most efforts to have the FTAA include language to provide adjustment time and to reflect the Caribbean's "developmental realities" have so far failed.

Mr. Chritien vowed to do what he can to ensure that countries attending April's Summit of Americas in Quebec agree to provide such concessions.