A Study For the

countries) to begin negotiations on a free trade agreement. Canada has embarked on public consultations to define the scope of the agreement. For the CA-4 countries, the Canadian refined sugar tariff appears to be a critical, if not mandatory, item with respect to any agreement in the negotiations. Canada is heavily involved in the trade negotiations for the revision to the WTO Agreement on Agriculture and the regional agreement on the Free Trade Area of the Americas (FTAA). Canada has signed a free trade agreement with Costa Rica, reducing the tariffs on the imports of refined sugar, starting in 2003. Canadian overall trade and economic development policies are also important considerations in the free trade negotiations with the CA-4 countries. Sugar is a major staple food providing a cheap source of energy, especially for low income countries. For many developing countries, sugar contributes a substantial part of the overall export earnings and, because it is labour-intensive, sugar represents a major source of employment. Compared to most other agricultural commodities, a significant part of global sugar production is traded internationally. Only a small part o