PM Harper Takes Six-Day Spin through Latin America

The storm clouds gathering over the global economy likely occupied Canadian Prime Minister Stephen Harper’s mind when he headed out Sunday for a six-day trip to Latin American that takes him to Brazil, Colombia, Costa Rica, and Honduras. “Our government has focused on expanding and enhancing market access to create jobs, economic growth, and opportunities for Canadians,” said Harper when announcing the tour last week. “The Americas remain a key region of increasing economic prosperity and entrepreneurialism.” The Canadian Press put it a bit more bluntly in its coverage of Harper’s departure: “Canada is looking for new export markets since its largest trading partner, the United States, is struggling to get its financial house in order.”

Harper chose Brasilia as the first stop in his trip, just as U.S. President Barack Obama did in March, marking the prime minister’s first official trip to what CTV called “the most powerful nation in Latin America.”  With an eye to the economic maelstrom affecting the United States and Europe, Harper congratulated Brazil, saying: “We have both been successfully weathering the headwinds of the global economy due to strong fundamentals.” During meetings with President Dilma Rousseff, the two leaders inked or renewed a series of cooperation agreements focused on science and technology, which included the launching of a series of academic exchange programs. They also established a CEO Forum to bolster business ties, as well as an air transportation deal expected to bring down airfares between the countries.

Canadian exports to Brazil increased 60 percent from 2009 to 2010, with total bilateral trade hitting nearly $6 billion last year. The two countries have a history of tense trade relations due to a 1996 dispute between their rival jet manufacturers that made its way to the World Trade Organization, as well as Canada’s 2001 ban on Brazilian beef. They’ve considered putting the past to rest and negotiating a free-trade deal (FTA). Still, despite the increasing flow of goods between the two countries, quick turnaround of an FTA faces obstacles, given that such negotiations would require the approval of Brazil’s Mercosur partners (Argentina, Paraguay, and Uruguay).

Harper will go on to Colombia, which has an FTA with Ottawa that takes effect August 15. That pact with Colombia is part of the Harper government’s focus on expanding trade ties with Latin America since he launched “Canada’s Engagement in the Americas” in 2007. Colombian President Juan Manuel Santos has turned to partners such as Canada while his country’s FTA with Washington remains stalled. “American products are being replaced in the Colombian market because other countries have free-trade agreements,” Santos told Americas Quarterly in an interview published August 5, two days before his first anniversary in office. “If the FTA is not approved shortly, the U.S. will continue losing market share.”

Canada also has a trade deal with Costa Rica, where Harper will make a stop in Thursday. Harper rounds out his trip in Honduras. Canada also seeks to commence trade agreements with that Central American country. According to an official release from Ottawa, Harper will be the first head of state to visit Honduras since the country gained readmission into the Organization of American States.

Learn more:

• Government release announcing the prime minister’s four-country tour. 
• Canadian government press release on scientific cooperation and higher education pacts, as well as a backgrounder on those agreements. 
• Canada’s Ministry of Foreign Affairs’ strategy plans on Latin America and Brazil.
• Brazil’s presidential blog (“Blog do Planalto”) offers coverage of Harper’s Brazil visit.