Latin America Benefits from Canadian Presence

Canada has a long-standing tradition of peacekeeping efforts and concern for world affairs. While Afghanistan stands today as the single largest beneficiary of Canadian foreign aid and expenditure, Canada also has a key role to play in the western hemisphere.

This is the message that Prime Minister Stephen Harper is delivering in Colombia, Chile, Barbados and Haiti. A couple of weeks later, he will welcome his NAFTA counterparts, President George Bush and President Felipe Calderon, to the third leaders summit of North America.

The Canadian government wants to play an even stronger role in the region. In doing so, Harper has made it clear that Canada's interests do not end at the 49th parallel.

Canada's most powerful tool to increase its presence and influence in the region has been its willingness to trade. To many it comes as a surprise that in addition to the trilateral free trade agreement with the United States and Mexico, Canada has bilateral free trade agreements with Chile and Costa Rica and is looking forward to finalizing negotiations with Central America (El Salvador, Guatemala, Honduras and Nicaragua).

Plans to initiate trade negotiations with other countries include Colombia, Peru, the Dominican Republic and other nations in the Caribbean. Excluding the U.S. and Mexico, the estimated value of trade between Canada and Latin America and the Caribbean was approximately $19 billion in 2006, growing 20 per cent from the previous year.

In a world where countries experience strong competitive pressure from emerging economies, the new Canadian approach also focuses on promoting stable environments where Canadian companies can invest and increase trade across the Americas. Recently, at a major conference in Washington D.C. hosted by the Council of the Americas, International Trade Minister David Emerson said that Canadian investment in Latin America and the Caribbean had reached almost $100 billion in 2006, far greater than Canada's investments in Asia.

Emerson highlighted that in many South American countries, Canada is a top investor in sectors that range from mining and power generation to financial services, education and telecommunications. Canada is also helping to address the competitiveness gap in the Americas by promoting specific commercial initiatives in science, technology and investment.

Competitiveness and the whole region's capability of attracting and retaining investments, the Canadian government says, start with strong democracies and institutions followed by a transparent and predictable business environment. Specific areas where Canada can contribute with expertise and technology include the energy sector, not only in the booming oil and gas sector but also regarding alternative renewable sources of energy that seem to offer a potential for development in the region.

In addition to trade and energy, Canada has been engaged in a hemispheric collaboration agenda since becoming a full member of the Organization of American States 15 years ago.

Canada's role in supporting and strengthening democracy and security is critical at a time when Latin American countries have recently elected new governments, but where institutions in some of these countries are still fragile. Canadian support in conflict-affected countries like Haiti and Colombia show that the experience of a strong democratic country can be extremely helpful not only in ensuring the stability of institutions, but also in social recovery following periods of armed conflict and violence.

Canada is also playing a critical role in activities aimed at countering security challenges impacting the region – from drug trafficking to organized crime, illegal immigration and pandemic preparedness.

Strong signals paired with concrete actions are to be taken seriously. Key Canadian leaders are investing time and resources looking closely at those opportunities where Canada can make valuable contributions throughout the Americas. At a time when Washington's re-engagement with Latin America will be on the back burner at least until after the 2008 presidential elections, the region will benefit from this revitalized interest coming from Ottawa to address a common agenda of security, economic prosperity and competitiveness in our shared economic space.

Pamela Wallin is the senior adviser on Canadian affairs at the Council of the Americas/Americas Society in New York. Monica Guevara is director of North American affairs at the Council of the Americas in Washington.