LATIN AMERICAN SPECIAL — Major growth projected for Latin

By the year 2000, the Caribbean and Latin America will provide a market of 600 million persons with purchasing power of US$1 trillion, states a recent issue of CanadaExport.

Canadian exports to Latin American and Caribbean markets reached $3.2 billion in 1992, while imports from this region to Canada amounted to $5.8 billion.

The asset value of Canadian investment in Latin America tops $7 billion, with Chile accounting for about $2.2 billion.

Major Canadian exports to this region have included wheat, wood pulp and paper products, newsprint, automotive vehicles and parts, coal, sulphur, telecommunications equipment, potassium chloride and electrical parts. Major Canadian imports have included agri-food products, metals, telecommunications equipment and consumer products.

Meanwhile, when the North American Free Trade Agreement (NAFTA) came into force Jan. 1, an integrated market of 360 million persons was created. Other changes NAFTA has brought about

include:

* Mexico eliminates a number of import licensing requirements for Canadian exports

* Duty drawback under the Canada-U.S. Free Trade Agreement (FTA) is extended for two years, until Dec. 31, 1995, at which time it will be replaced by a permanent

duty refund system that will reduce input costs for Canadian manufacturers * For the first time, Canadian companies may bid on government procurement contracts in Mexico. In the U.S., Canadians may bid on government contracts for services and

construction. The scope and coverage of government procurement contracts under NAFTA exceeds that of the FTA and GATT

* All investors from NAFTA countries are to be treated equally. Investment restrictions in Mexico will be reduced in numerous sectors, including autos, agriculture, financial services, mining, transportation and most manufacturing * Canadian financial services may expand into Mexico, open subsidiaries, invest in and acquire Mexican banking, securities and insurance companies * New intellectual property rights to protect the work and inventions of Canadian creators, inventors and researchers

* Speciality air service markets will be opened up during a 5-year period, beginning with aerial surveying and mapping services into the U.S. market. — The twice-monthly “CanadaExport” is published by the Department of Foreign Affairs and International Trade.