Argentine-Canadian Relations

Canada and Argentina, although placed in different ends of the Hemisphere and with different historical realities, share similar beliefs that enable both our nations to work together in a co-operative atmosphere.

Many parallel features can be found between the two countries, such as size and geographic diversity, marked by a relatively scarce population in rural areas, and a history of immigration (mainly from European sources), trends that lead to similar consequences in our social and cultural structures.

In the political realm, both Canada and Argentina are persuaded that challenges and difficulties that the world faces today can only be resolved by multilateral co-operation, mainly in crucial matters such as sustainable development, terrorism and human rights, environment, drug trafficking and nuclear and conventional arms proliferation. As well, both nations have committed themselves to maintain a permanent participation in peace-keeping operations and international humanitarian missions.

Based on coincident views on hemispheric and global issues, our two countries have become natural multilateral partners. Cooperation at the OAS, Summit of the Americas and UN has been particularly strong. Joint membership in the UN Security Council (1999-2000) further enhanced cooperation.

In addition, it is important to note that relations between Canadian and Argentine academic institutions are well-developed. Argentina has seven Canadian Studies Centres, which are active in promoting inter-university ties. This has assisted the Canadian Education Centre in Buenos Aires to promote Canadian educational programs in Argentina.

Bilateral agreements were signed on such diverse matters as peaceful uses of nuclear energy, the environment, foreign investment protection and double taxation.

Relying on such strong foundations, bilateral relations have gained in scope and closeness since 1990. Promising areas of bilateral cooperation include: parliamentary affairs, defence and peacekeeping, science and technology, health, and natural resources. In the economic sphere, Argentina and Canada support economic integration mechanisms (NAFTA and Mercosur) and open regional markets, in particular those objectives of the Free Trade Area of the Americas.

Trade

Between 1992 and 1997, two-way trade almost tripled, reaching 583 million Canadian dollars (397 millions US$). Bilateral trade decreased in 1998 and 1999 but reached a new record in 2000, with 611 million Canadian dollars (337 million US$). Even so, Argentine exports to Canada increased steadily and in 2000 totalled more than 367 Canadian millon dollars (they doubled from 1995).

Investment

However, Canadian investment remains the basis of the economic relationship between the two countries. In fact, Argentina is a magnet for Canadian investment. In 1998, Canadian direct investment in Argentina amounted to US $2.2 billion, up from US $1.9 billion in 1997. The main focus for this investment has been on the sectors of oil and gas, mining and energy, agro-industry, banking and telecommunications. Forestry may soon add potential offers for further Canadian investment. Investors are free to enter Argentina through mergers, acquisitions, greenfield investments or joint ventures. A Foreign Investment Protection Agreement (FIPA), which follows the OECD model, is in place between Argentina and Canada.

In June 1998, Canada and Mercosur signed a Trade and Investment Cooperation Agreement (TICA). The TICA establishes a framework for discussion designed to enhance trade and investment cooperation and to encourage collaboration on the FTAA and WTO work programs. The first meeting of the TICA Consultative Group was held during the FTAA ministerial meeting in Toronto in November 1999. In the last meeting, in Montevideo, November 2001, a Business Advisory Council was established to receive input from the private sector in the context of the TICA.

Free Trade Area of the Americas (FTAA)

Canada held the first Chair of the Negotiation Committee in the process of the FTAA, and worked closely with the Argentine Vice-Chair to set up the various FTAA negotiating groups. Argentina took over from Canada as Chair of the FTAA in November 1999, and held the position until April 2001. At that time, in the Ministerial Meeting in Buenos Aires, the first draft of the FTAA agreement was adopted, which was then presented to the Summit of the Americas, held in Quebec City. The next Summit will take place in Argentina in 2005.