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Canada and the G4

Friday, June 11, 2010

Long-running negotiations for a free-trade agreement between Canada and the region's four northern countries —Guatemala, Honduras, El Salvador and Nicaragua— restarted last week, with agreement on close to 85% of potentially traded products.

Disagreement over agricultural trade have delayed the process, which started in 2001. The G4 countries would benefit from liberalized trade, especially in the textile and apparel sector. Canada and Panama last December signed a trade agreement, whose entry into force is still pending, as the Canadian Parliament has expressed concern about Panamanian banking rules.

A Canada-Costa TLC came into force in 2002. However, Costa Rica is not a significant competitor in the garment sector. Free trade would also give importers in the G4 countries preferred access to a variety of Canadian manufactured products.


  • Garment and textile investors and producers
  • Manufactured-goods importers