The Harper government signed a free trade agreement on Thursday with Peru, setting the scene for it to be tabled for debate in Parliament.

If all goes as planned, the South American nation will join a roster of Canadian free-trade partners that includes the United States, Mexico, Costa Rica, Chile and Israel.

A similar deal involving Iceland, Norway, Switzerland and Liechtenstein is in the works, and talks have been held with Colombia and the Dominican Republic.

Although the agreement must be presented to Parliament, it was not immediately clear whether MPs would get a chance to block it if they disapproved. A federal official said they would.

New procedure for implementing treaties

In January, then Foreign Affairs Minister Maxime Bernier announced a new system for dealing with international treaties.

"Under the new process, members of the House of Commons may review and discuss the treaty — examining, debating or voting — before Canada formally agrees to ratify it," a statement issued by Bernier's department said.

In background material accompanying the statement, the message was more succinct: "The government will maintain the legal authority to decide whether to ratify the treaty. It will, of course, give consideration to the view of the House in coming to a decision."

Past practice has been mixed. Some treaties, including the Canada-U.S. free-trade agreement, required implementing bills passed by Parliament. Others got a quiet nod from the cabinet on the basis that they were consistent with existing legislation.

In this case, Parliament will have the final say, an official said Thursday.

The Peru deal will go through the same process as any proposed law and "has to be ratified or approved by Parliament," said Michael O'Shaughnessy, a Foreign Affairs media relations officer.

Two-way merchandise trade between Canada and Peru totalled about $2.45 billion in 2007.

Negotiations between the two countries began last July and wrapped up in January, but the signing ceremony did not come until this week.

Deal signed by Canadian ministers in Lima

The trade deal and related agreements on labour and the environment were signed on behalf of Canada by Labour Minister Jean-Pierre Blackburn and Helena Guergis, a junior minister representing Foreign Affairs Minister David Emerson, at the Peruvian presidential palace in Lima.

Like other free-trade agreements, the Peru deal would shrink obstacles to trade and investment but would not mean completely open borders or free movement of people.

Peru would drop tariffs on 95 per cent of Canadian exports

"Immediately on implementation of the FTA, Peru will eliminate tariffs on 95 per cent of current Canadian exports, with the remaining tariffs to be eliminated over a five- to 10-year period," a Canadian government statement said.

Canadian products getting immediate duty-free access to Peru would include wheat, barley, lentils, peas and selected boneless beef cuts, as well as a variety of paper products, machinery and equipment, it said.

In the other direction, Canada would immediately scrap 97 per cent of its tariffs on Peruvian imports, while most of rest would be eliminated over periods as long as seven years. Canada would retain special tariffs and/or quotas on imports of dairy products, poultry, eggs and refined sugar, however.