Harper Government Expands and Modernizes Free Trade Agreement with Chile in 2013

The Honorable Ed Fast, Minister of International Trade, announced that Canada’s expanded free trade agreement with Chile is now in force.

“Canadian government’s top priority is to create jobs, growth and long-term prosperity for all Canadians,” said Minister Fast. “Today’s announcement of an expanded Canada-Chile Free Trade Agreement [CCFTA] will ensure that Canada’s world-class financial institutions and other Canadian businesses enjoy enhanced access to the Chilean market.

 “The Canada-Chile economic relationship is clear proof of the prosperity-generating power of free and open trade. That’s why we’ll continue to open new markets for our exporters and ensure Canadian businesses and workers have the competitive edge and tools they need to continue to succeed abroad.

One of the main areas now included is financial services, a key driver of jobs and economic growth in Canada.
The financial services sector is a key driver of economic growth. For example

• it employs almost 700,000 Canadians;
• it pays wages and salaries that are well above the national average;
• it supports and relies upon a number of ancillary, high value-added services that are important contributors to the economy in their own right;
• it facilitates the way in which the rest of the economy functions, making it more efficient and thereby enhancing the competitiveness of Canadian firms.

Exports have increased by 40 percent over the last five years, reaching $9.1 billion in 2012. Canadian insurers are active in more than 20 countries.

Canadian financial institutions have identified Chile as a priority market for banking and asset management. Though mining is the major industry in Chile today, financial services account for about 16 percent of GDP, according to KPMG.