Evidence of meeting #67 for International Trade in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chile.
A recording is available from Parliament.
4:10 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
I see.
I'm sorry, but I have limited time, so I want to try to move to some other subjects.
Do you think the Pacific Alliance would increase Chilean exports to Canada were we to become a full member?
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
We hope so. We hope to increase our exports, but we hope also to have more investments from Canada, even more investments. We hope to have more trade with Canada.
4:10 p.m.
NDP
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
Excuse me?
4:10 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
Are there barriers now to Canadian investment in Chile? Does Chile have barriers to Canadian investment?
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
As you know, the Canadian investments are very concentrated in mining.
4:10 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
Yes.
Mr. Ambassador, I'm asking if there are barriers in Chile.
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
Oh, barriers...no, no.
4:10 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
So an agreement is not necessary to increase Canadian investment, since there are no barriers now.
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
Well, you know, you and I have different points of view. I think what Canada needs is to get to know the economic agents in our region much more. I think you could take much more profit out of your free trade agreement. If you compare, for instance, the evolution of the free trade agreement that we've signed with the Americans, with the United States, they have taken much more profit from it, probably because they have been more present in the region.
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
I think when you create a net of people working together... If you get into the alliance and we start to get together, you create a net that probably can be a little bit untouchable—
4:10 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
Yes, I agree with that, Mr. Ambassador. I'm just trying to understand whether there are legal or legislative barriers as opposed to business ones.
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
No, no.
4:10 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
I want to move to the Trans-Pacific Partnership, because four of the five countries involved right now are already members engaged in the Trans-Pacific Partnership. Both talks are explicitly aimed at creating a Pacific-based trade bloc. Canada, Mexico, Peru, and Chile are already at the negotiating table, presumably discussing the very things that would be the subject of the Pacific Alliance. Is that not an inefficient duplication of resources?
4:10 p.m.
H.E. Roberto Cristian Ibarra Garcia
We do not think so. I think it's a different thing. We would like, really, to move on the TPP. We were one of the four countries that created the former TPP at the time. We have been very much looking forward to even having Canada in the TPP. We played an active role to try to get—
4:15 p.m.
NDP
4:15 p.m.
H.E. Roberto Cristian Ibarra Garcia
No, I don't think it's a duplication. I think our countries have the perfect right to.... Because it's going to be easier for us to get together. We need to move forward, and we think that we're moving forward in the quickest way in the Pacific Alliance, rather than in the TPP, for natural reasons—
4:15 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
Can I ask you, then, who's not there, sir? The Pacific Alliance implies all Pacific nations, but that's not the case. There's no United States. There's no Ecuador. Currently, there are no Central American Pacific nations, so it doesn't include all of the Pacific, including the United States.
4:15 p.m.
H.E. Roberto Cristian Ibarra Garcia
Exactly.
4:15 p.m.
NDP
Don Davies NDP Vancouver Kingsway, BC
On the other hand, there are other major economies in South America—you've mentioned some of them—Brazil being a major one. I notice that Uruguay has observer status. They're not a Pacific nation, so clearly we could embrace other countries. Do you see this being successful without the major economies, like the United States and Brazil, taking part in this?
4:15 p.m.
H.E. Roberto Cristian Ibarra Garcia
We have found that there is an interest for these big economies, as you say, to follow our discussions. Only time will tell. We cannot really at this moment foresee if it's going to be good or not, but I think we are trying to do our best to move.... Also, we are very open to all the interests of the other countries—we're not closed—provided that they are going to fulfill the conditions of the engagement that we have done ourselves.
4:15 p.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
Thank you, Mr. Chairman.
Welcome to our witnesses.
Your excellency, it's a pleasure to have you at committee.
I have a couple of points of clarification, perhaps.
The World Bank statistics on the ease of doing business, based on how difficult the regulatory environment is for entrepreneurs to actually invest in a country, show that Chile, Peru, Colombia, and Mexico are very close to one another, with Chile having the best environment and the greatest ease of doing business. Canada is almost 20 points ahead of Chile on the ease of doing business, so obviously, if we join the Pacific Alliance there should be some improvement in the ease of doing business.
Your comment earlier was about the potential for greater investments, not simply in the mining sector, but in other sectors in the Pacific Alliance countries as well. I think that point needs to be made.
But the other point that needs to be made is that this is a huge economy when it's all put together. Although it's an economy that we have bilateral trading relationships with, to work in a more multilateral forum.... Statistically, it's the ninth largest economy in the world, which is significant. So the potential for Canada, quite frankly, should be great, and the potential for the original four founding countries, and others who may join, should be as great.
This is my first question for you. Chile has a history as a long-term and long-time trading partner with Canada. You've signed more free trade agreements with countries around the world than almost any other nation on the planet. You've seen Chile's investment move radically, I would say, over the last two decades for certain, in the last decade in particular. How do you see the advantage here, not just for Chile in particular, but for Chile, your three partners in the Pacific Alliance, and Canada, hopefully, when we join?
What do you see as the immediate advantage for your own country, and for Canada as well? Do you think—because I have to ask this question—that you can reach the March 31, 2013 self-imposed deadline?
4:15 p.m.
H.E. Roberto Cristian Ibarra Garcia
That's a very good question.
