Last week the Canadian Foreign Minister, John Baird, made a diplomatic foray into Latin America, in a follow-up to, or probably reassessment of, Canada-Latin American relations since Prime Minister Stephen Harper visited the area in 2007. As part of Latin America, or the Americas as they are sometimes referred to in North America, Baird took in two countries that are part of the Cariforum system, Cuba and the Dominican Republic, in both of which Canada has maintained a substantial interest. But no Caricom country has been engaged by Canada on this occasion, though both Cuba and the Dominican Republic have, over the last few years, enhanced their relationships with the Caricom, being now, though in different forms, engaged with the rest of Caricom in the Cariforum.
Canada, like other major countries in the world, has become more intensely interested in the Latin American zone, particularly as many of them seem to have survived what is now described as a global recession. They have showed impressive rates of economic growth, expansion and diversification of their international trade, while becoming increasingly attractive to North America in particular as sources of investment, at a time when China has quietly established a substantial presence there. Since Harper’s visit in 2007, Latin America’s foreign trade in goods has increased by 40% and poverty has fallen by nearly 30%.
At that time, Harper observed, in commemorating the 10th anniversary of the Canada-Chile Free Trade Agreement, that “re-engagement in our hemisphere” was “a critical international priority for our Government.” And Baird’s visit must be seen as a Canadian recognition of the fact that the significance of the area to Canada’s efforts at enhancing its activities in Latin America need to be reinforced, as the Latin American states themselves have begun to adopt a posture of collective diplomatic expansion into areas which link them not only to North America, but to other dynamic economies on their Pacific Ocean side.
In that connection, Canada has indicated an interest in the new Latin American regional system, the Pacific Alliance, launched in May last year by Chile, Colombia, Mexico and Peru, though in the making since 2006, and formalized by the Lima Declaration among themselves in April 2011. And the context of this has been an obvious awareness, for some time now on the part of both North American states, of the increase in, for example, China-Latin America economic relations, and an increasing interest on the part of a state like Brazil to engage countries like India and Indonesia which have experienced dynamic economic growth in the last decade or so.
Brazil is seen as seeking to influence the terms and rules of international trade long dominated by what might be called the NATO economic powers that have held a grip on the post-WTO Doha discussions on international trade and production.
The interest of the NATO economic powers has been further perked by developments in Mexico, with that country seeking to go beyond possibilities for exploiting the North American Free Trade Area relationship, and taking a more active part in Latin America’s expansion of economic relations beyond that zone. Canada, unlike the United States at this time, is able to boast to countries like Mexico and Brazil and Chile, that its own economy has a dynamism that permits increasingly mutually beneficial two-way investment, production and trade. And Foreign Minister Baird recognises the obvious determination of newly-elected Mexican president Pena Neto to play a more active part in shaping the diplomacy of Latin American economic integration, and a more balanced relationship within the North America Free Trade Area.
Caricom heads of government will have recognised that Baird’s visit to the Dominican Republic and Cuba has taken place almost simultaneously with their own conference in Haiti. Canada, as it is doing with Caricom, is involved in negotiations towards a free trade agreement with the Dominican Republic. Canada recognizes the DR as an arena for active investment, with its own level of investment having reached a level of US$4 billion, and with almost 700,000 Canadian tourists visiting the country annually.
It will be interesting to see whether an FTA agreement is reached with that country before Caricom can conclude the one that we are presently negotiating with Canada, and what impression that might leave on North American investors generally. And perhaps as a prelude to that the Canadian government, in a statement prior to Baird’s visit, reminded that in 2011 “the two governments concluded negotiations on a Labour cooperation agreement that is one of the most comprehensive labour cooperation agreements to date and the first globally to enforce labour obligations that are not linked to a free trade agreement.”
The Canadian Foreign Minister’s visit to Cuba has taken place on the eve of the Cuban Congress that has reiterated the country’s focus on the new direction for its economy and governance arrangements. Canada has had a long-standing interest in supporting Cuba’s desire to pursue off-shore oil exploration, and as a tourism destination for Canadian citizens. And while trying, periodically over the years, and particularly during the administration of Prime Minister Chretien to indicate its concern about human rights, the government appears to have taken into account a certain evolution in Cuba’s attitude, reflected on this visit by Cuba’s willingness to permit a meeting between Baird and members of Cuban civil society.
Canada’s focus, in regard to the human rights issue, has shifted somewhat to trends in Venezuela under President Chavez’s administration, but the cancellation of Baird’s visit in the context of the President’s illness, has not permitted any direct expression of views by the Foreign Minister.
