Chapter 1 : Tariffs[1]

Objective

APEC economies will achieve free and open trade in the Asia-Pacific region by:

a.                   progressive reduction of tariffs until the Bogor goals are fully achieved; and

b.         ensuring the transparency of APEC economies’ respective tariff regimes.

Guidelines

Each APEC economy will:

a.                   take into account, in the process of achieving the above objective, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region and developments in the new economy;

b.                  ensure that the achievement of the above objective is not undermined by the application of unjustifiable measures; and

c.                   consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements; and

d.                   implement and maintain standards consistent with the APEC Leaders’ Transparency Standards.

Collective Actions

APEC economies will:

a.                   participate and ensure the expeditious supply and updates of the WTO Integrated Database and any other APEC databases;

b.                  arrange for seminars and/or workshops on industrial tariffs negotiations in consultation with international organisations, where appropriate,  including  WTO Secretariat on WTO Integrated Tariff Database;

c.                   study lessons from modalities for tariff reduction and elimination in regional arrangements; and

d.                   encourage the accession of all economies to the WTO Information Technology Agreement, including the adoption of ITA provisions by non-members of the WTO.

The current CAP relating to tariffs can be found in the Tariffs and Non-Tariff Measures Collective Action Plan

Canada’s Approach to Tariffs in 2004

The Government of Canada pursues a policy of tariff and trade liberalization to further advance Canada’s broad trade agenda, including the negotiation and implemention of multilateral, regional and bilateral trade agreements, and through unilateral tariff reduction initiatives. The Minister of Finance is responsible for import policy, aimed at securing and improving access to foreign markets for Canadian business while supporting an efficient and competitive domestic economy. 

The key import policy instruments in Canada are as follows; information about these may be viewed on-line as indicated:

Customs Tariff  (Most recent consolidated version, and details of previous amendments)

http://www.cbsa-asfc.gc.ca/gen
eral/publications/customs_tari
ff-e.html

The Special Import Measures Act

http://laws.justice.gc.ca/en/S
-15/index.html

http://www.cbsa-asfc.gc.ca/sim
a/act-regs-e.html

The Canadian International Trade Tribunal Act 

http://laws.justice.gc.ca/en/C
-18.3/index.html

http://www.citt.gc.ca/

Canada is commited to advancing free and open trade.  Successive rounds of multilateral trade negotiations under the General Agreement on Tariffs and Trade (GATT) combined with regional and bilateral free-trade agreements have reduced tariffs to a point where they are less significant in many markets today.  However, important tariff barriers remain in many economies.  Consequently, Canada is actively engaged in the WTO Doha Round of multilateral negotiations, as well as in the Free Trade Area of the Americas regional negotiations, and in other negotiations with the four Central American countries of El Salvador, Guatemala, Honduras and Nicaragua.  In addition, Canada continues discussions to explore the scope of possible negotiations with the Andean Community of Bolivia, Colombia, Ecuador, Peru and Venezuela, with the Caribbean Community and Common Market (CARICOM), and with the Dominican Republic.

Among APEC member economies in the context of the Bogor goals concerning tariffs, Canada celebrated it’s ten-year anniversary of the North American Free Trade Agreement (NAFTA) with the United States and Mexico in 2004.  Staged tariff reductions under NAFTA are fully implemented; many ahead of schedule.  The Canada-Chile Free Trade Agreement has been in force since 1997, and the last of staged tariff reductions under this Agreement took place in January 2003.  Bilateral negotiations with Singapore are ongoing.  (For further information please visit: http://www.dfait-maeci.gc.ca/t
na-nac/reg-e.asp) 

In addition, 15 APEC members are eligible for Canada’s General Preferential Tariff (GPT), which is provided on a unilateral basis.

Contact information:

Diane Kelloway

Government of Canada

Department of Finance

Kelloway.Diane@fin.gc.ca

Case Study of a Tariff Liberalisation Initiative

N/A

Bound Tariffs

99.7% of items in HS Chapters 1 - 97 of the Canadian Customs Tariff are WTO bound.

Applied Tariffs

Canada’s Uruguay Round WTO commitments to reduce MFN tariffs on products including textiles and clothing have been fully implemented as of January 2004.

Canada continues to eliminate "nuisance tariffs” from MFN and preferential tariffs when they fall below the 2% threshold.

Canada continues to unilaterally reduce applied tariffs on certain goods used in the production of other goods (manufacturing inputs) or in the provision of services.

In 2003, 89% of imports into Canada, by value of goods, entered duty-free under MFN, unilateral or negotiated preferential tariff treatments, and the import-weighted average applied tariff was less than 1%.

In general, Canada’s MFN tariffs are applied slightly below bound levels; the simple average bound and applied MFN tariff rates are currently 4.9 and 3.9 percent, respectively.

Current tariff rates are available on-line through the APEC tariff database (http://www.apectariff.org/) and on the Canada Customs and Revenue Agency’s website at: http://www.cbsa-asfc.gc.ca/gen
eral/publications/tariff2004/t
ablewithamendments-e.html

Canada will work together with APEC member economies towards a successful WTO Doha Round, that includes real and substantial improvements in market access, within a fair and equitable multilateral trading system.

Tariff Quotas

Only 2% of items in HS Chapters 1 - 97 are subject to tariff rate quotas (TRQs), reflecting sensitivities in Canada's agricultural sector. Information explaining Canada’s TRQ system can be found on-line at: http://www.cbsa-asfc.gc.ca/E/p
ub/cm/d10-18-1/d10-18-1-e.html

Tariff Preferences

 Canada has 10 preferential tariff treatments, including the following negotiated agreements that contain staged tariff reductions:

- the Canada-United States Free Trade Agreement;

- the North American Free Trade Agreement (NAFTA);

- the Canada-Israel Free Trade Agreement (CIFTA);

- the Canada-Chile Free Trade Agreement; and

- the Canada-Costa Rica Free Trade Agreement

For information on the above Agreements please visit:

http://www.dfait-maeci.gc.ca/t
na-nac/reg-e.asp

Canada also maintains unilateral tariff preferences for developing and least-developed countries.  Canada introduced its General Preferential Tariff (GPT) scheme for developing countries in 1974.  15 APEC members are eligible for the GPT, which ranges from “Free” to 2/3 of MFN rates.  For more information, see Section 33 of the Customs Tariff.

Duty free entry was provided to all GPT-eligible products from the least-developed countries in 1983.  The LDC product coverage has been expanded twice; in August 2000 and again in January 2003.  All imports from LDCs (except for dairy products, poultry and eggs) now enter Canada duty and quota free.

In addition to working together with APEC member economies towards a successful WTO DohaRound,Canada is also engaged in negotiations with the four Central American countries of El Salvador, Guatemala, Honduras and Nicaragua, the Free Trade of the Americas negotiations and negotiations with Singapore.  Canada continues discussions to explore the scope of possible negotiations with the Andean Community of Bolivia, Colombia, Ecuador, Peru and Venezuela, with the Caribbean Community and Common Market (CARICOM), and with the Dominican Republic.

Officials from NAFTA countries are working together on liberalizing the NAFTA rules of origin.  Further information can be obtained from:

http://www.dfait-maeci.gc.ca/t
na-nac/consult1-en.asp#nafta

Transparency of Tariff Regime, including Implementation of APEC Leaders’ TransparencyStandards on Market Access*

Canada provides annual updates of tariff and trade information to the WTO Integrated Database.

Current tariff rates are available to the public in viewing or downloadable format through the APEC tariff database (http://www.apectariff.org/) and on the Canadian Border Services Agency’s website:

http://www.cbsa-asfc.gc.ca/gen
eral/publications/tariff2004/t
ablewithamendments-e.html

See the tariff summary and dispersion tables at the end of this chapter, for more information.

Bound Tariffs

99.7% of items in HS Chapters 1 - 97 of the Canadian Customs Tariff are WTO bound.

Applied Tariffs

Between 1996 and 2003 the percentage of imports, by value of goods, that enters Canada duty-free under MFN, unilateral or negotiated preferential tariff treatments, has risen from 78% to 89%.

Canada’s import-weighted average tariff applied to all imports has decreased from 1.3% in 1996 to 0.9% in 2003.

On an annual basis commencing January 1, 1995, Canada has implemented its tariff reduction commitments as per the Uruguay Round agreement in the WTO, including the zero-for-zero initiatives.  These reductions have been fully implemented as of January 1, 2004.

Canada removed tariffs on pharmaceutical products as a result of Pharma II (April 1997) and Pharm III (July 1999) commitments in the WTO.

Canada as a signatory to the Information Technology Agreement (ITA), reduced tariffs on all products subject to that agreement.  Final reductions were implemented  January 1, 2000.

Canada accelerated to 1998, the Uruguay Round tariff reductions for all products that were to have final cuts in 1999, including zero-for-zero initiatives in the medical equipment, agricultural equipment, construction equipment, and office furniture sectors.

Canada has eliminated “nuisances tariffs” from MFN and most preferential tariffs when they fall below the 2% threshold since January 1, 1998.

Canada unilaterally reduces applied tariffs on certain goods used in the production of other goods (manufacturing inputs) or in the provision of services.

Tariff Quotas

Only 2% of items in HS Chapters 1 - 97 are subject to tariff rate quotas (TRQs), reflecting sensitivities in Canada's agricultural sector. Information explaining Canada’s TRQ system can be found on-line at: http://www.ccra-adrc.gc.ca/E/p
ub/cm/d10-18-1/d10-18-1-e.pdf

Tariff Preferences

By 1996, Canada had negotiated the following significant preferential trade agreements:

 - the Canada-United States Free Trade Agreement;

 - the North American Free Trade Agreement; and

 - the Canada-Israel Free Trade Agreement.

Canada introduced its General Preferential Tariff (GPT) scheme for developing countries (including 15 APEC members) in 1974. Duty free entry was provided to all GPT-eligible products from the least-developed countries in 1983. 

Canada celecbrated its ten-year anniversary of the North American Free Trade Agreement (NAFTA) with the United States and Mexico in January 2004.  Staged tariff reductions under NAFTA have been fully implemented; many ahead of schedule. 

The Canada-Chile Free Trade Agreement came into force on July 1997.  Canadian tariffs on most goods from Chile were eliminated at that time, with the last of staged tariff reductions were implemented in January 2003.  Duty-free benefits were extended to a number of additional agricultural products in November 2003.

The Canada-Costa Rica Free Trade Agreement came into force on November 1, 2002. 

The LDC product coverage was expanded twice; in August 2000 and again in January 2003.  All imports from LDCs (except for dairy products, poultry and eggs) may now enter Canada duty and quota free. Canada also liberalized the origin requirements that apply to LDC imports, in 2000.

In April 2004, Canada passed legislation which extended the General Preferential Tariff (GPT) and Least Developed Country Tariff (LDCT) programs for an additional 10 years to 2014.

Transparency of Tariff Regime,  including Implementation of APEC Leaders’ Transparency Standards on Market Access*

In February of 1994, the Government of Canada launched a comprehensive review of Canada’s tariff regime aimed at making Canada’s tariff system simpler, more transparent and predictable.  As a result, on January 1, 1998, Canada’s new simplified Customs Tariff came into effect, systematically modifying Canada’s tariff structure and reducing tariff levels.

The new Customs Tariff, which came into effect on January 1, 1998, introduced a number of liberalizing measures that are of benefit to international traders, including those from APEC economies.

Overall, the Canadian tariff system has become more simple, predictable, and transparent by replacing the existing seven tariff schedules with a single tariff schedule containing a simpler rate structure and significantly fewer provisions (about 8,000 compared to 11,000). The system was further simplified by eliminating or streamlining a significant number of legislative provisions and introducing a more flexible tariff schedule format (two tariff columns rather than five).  Some of these measures have also broadened the scope of certain existing duty free provisions.

Canada provides annual updates of tariff and trade information to the WTO Integrated Database.

Current tariff rates are available to the public in viewing or downloadable format through the APEC tariff database (http://www.apectariff.org/) and on the Canada Customs and Revenue Agency’s website:  http://www.cbsa-asfc.gc.ca/gen
eral/publications/tariff2004/t
ablewithamendments-e.html

See the tariff summary and dispersion tables at the end of this chapter, and in previous annual individual action plans, for more information.

APEC INDIVIDUAL ACTION PLAN:  TARIFF SUMMARY REPORT FOR {Year}

(PLEASE COMPLETE BOXES)

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods

Metals

Chemical & Photographic Supplies

Transport Equipment

Non-Electric Machinery

Electric Machinery

Mineral Products, Precious Stones & Metals

Manufactured Articles, n.e.s

ITEM

Bound tariff lines as a percentage of all lines

99.7%

100.0%

100.0%

64.7%

100.0%

100.0%

100.0%

100.0%

100.0%

95.0%

100.0

100.0%

98.2%

99.9%

Duty-free tariff lines as a percentage of all lines

50%

40%

72%

53%

76%

31%

35%

64%

48%

41%

71%

56%

73%

51%

Preferential tariff lines as a percentage of all lines (GPT)

81%

65%

90%

100%

99%

49%

89%

76%

100%

100%

100%

100%

98%

99%

Preferential tariff lines as a percentage of all lines (LDCT)

99%

93%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Ratio of tariff lines with quotas to all lines

183:8531

183:1393

Simple average bound tariff rate

4.9%

4.7%

1.7%

6.9%

1.7%

11.9%

7.6%

2.7%

4.3%

5.4%

3.3%

4.1%

2.7%

4.0%

Simple average applied tariff rate

3.9%

4.0%

1.4%

3.1%

1.6%

9.0%

5.6%

1.9%

2.9%

5.2%

1.7%

2.4%

2.0%

3.1%

Simple average applied preferential tariff rate - GPT

1.3%

1.5%

0.7%

0.0%

0.6%

3.4%

1.9%

1.0%

1.2%

3.9%

0.2%

0.7%

0.5%

1.0%

Simple average applied preferential tariff rate - LDCT

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Average applied tariff rate for all lines subject to duty

8.3%

8.7%

5.1%

6.5%

7.2%

13.1%

8.6%

5.2%

5.6%

8.9%

5.7%

5.4%

7.2%

6.4%

Import-weighted average applied tariff rate FOB

0.9%

1.5%

0.3%

0.0%

0.7%

8.6%

4.5%

0.6%

4.8%

0.8%

0.1%

0.4%

0.4%

0.7%

Import-weighted average bound tariff rate – FOB

4.9%

3.5%

1.8%

6.8%

1.2%

11.6%

7.1%

2.8%

4.3%

5.4%

3.5%

4.3%

2.9%

4.1%

Notes:   Based on 2003 imports and 2004 tariff information                                 

              GPT – General Preferential Tariff treatment

              LDCT – Least Developed Country Tariff treatment

APEC INDIVIDUAL ACTION PLAN:  TARIFF DISPERSION TABLE FOR {Year}

(PLEASE COMPLETE BOXES)

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods

Metals

Chemical & Photographic Supplies

Transport Equipment

Non-Electric Machinery

Electric Machinery

Mineral Products, Precious Stones & Metals

Manufactured Articles, n.e.s

NUMBER OF TARIFFS AT OR BETWEEN

0%

4288

552

97

9

276

448

133

592

599

98

582

337

242

323

0%<X<=5%

986

148

26

4

15

39

89

153

176

7

58

109

23

139

5%<X<=10%

1909

217

10

4

60

240

81

174

483

105

181

156

59

139

10%<X<=15%

532

75

1

0

2

382

26

10

0

12

0

1

3

20

15%<X<=20%

400

9

0

0

3

307

55

0

1

5

0

0

6

14

>20%

23

12

0

0

0

0

0

0

0

11

0

0

0

0

Specific

393

380

0

0

0

13

0

0

0

0

0

0

0

0

TOTAL

8531

1393

134

17

356

1429

384

929

1259

238

821

603

333

635

Note:  Based on 2004 Tariff information (September 2004)

Chapter 2 : Non-Tariff Measures[1]

Objective

APEC economies will achieve free and open trade in the Asia-Pacific region by:

a.         progressively reducing NTMs to the maximum extent possible to minimize possible distortion to trade;

b.         in respect to WTO members:

·         Elimination of any measures inconsistent with WTO agreements

·         Full compliance with WTO agreements

in accordance to WTO commitments; and

c.         ensuring the transparency of APEC economies’ respective non-tariff measures.

Guidelines

Each APEC economy will:

a.                   take into account, in the process of progressive reduction of non-tariff measures, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region and developments in the new economy;

b.                  ensure that the progressive reduction of non-tariff measures is not undermined by the application of unjustifiable measures;

c.                   consider extending, on a voluntary basis, to all APEC economies the benefits of reductions and eliminations of non-tariff measures derived from sub-regional arrangements;

d.                   ensure that measures to promote the new economy and strengthening the functioning of markets are consistent with the objectives above; and

e.             implement and maintain standards consistent with the APEC Leaders’ Transparency Standards.

Collective Actions

APEC economies will:

a.       pursue incorporation of information on non-tariff measures into a future version of the APEC  tariff database and compile a list of measures recognized as non-tariff impediments and a list of products affected by these impediments;

b.      identify industries in which the progressive reduction of non-tariff measures may have positive impact on trade and on economic growth in the Asia-Pacific region or for which there is regional industry support for early liberalization;

c.       progressively reduce export subsidies with a view to abolishing them; and

d.       abolish unjustifiable export prohibitions and restrictions and endeavor to refrain from taking any such new measures;

e.       pursue a series of seminars/policy discussions on non-tariff measures (NTMs); and

f.        undertake research  to develop best practices to enhance transparency and progressively reduce NTMs

The current CAP relating to non-tariff measures can be found in the Tariffs and Non-Tariff Measures Collective Action Plan.

Canada’s Approach to Non-Tariff Measures in 2004

Canada continues to maintain WTO-consistent non-tariff measures required to protect health, safety, security, or environment, as well as to comply with our obligations under international agreements.

Import restrictions and import licensing requirements in Canada are consistent with Canada's obligations under the WTO and support action taken under relevant domestic legislation.  Canada eliminated its quantitative import restrictions in the agricultural and food sectors when it implemented the Uruguay Round agreements.  The Agreement on Agriculture also prohibits minimum import prices.  Canada is committed to the procedures and timing for dismantling restrictions on textile and clothing imports by the end of 2004, as agreed in the WTO Agreement on Textiles and Clothing.

Canada's export restrictions and export licensing requirements are consistent with its WTO obligations and support action taken under domestic legislation.  Canada does not maintain any WTO-inconsistent quantitative export restrictions.  Voluntary export restraints are prohibited under the WTO Agreement on Safeguards.  On industrial goods, export subsidies are prohibited under the WTO Agreement on Subsidies and Countervailing Measures.  On agricultural products, the WTO Agreement on Agriculture contains disciplines and reduction commitments.  On July 31, 1995, the Western Grain Transportation Act was eliminated.  By this measure, Canada has eliminated all export subsidies on grains and oilseeds, exceeding its Uruguay Round commitments for export subsidy reductions. 

The Export and Import Permits Act (EIPA) provides for the establishment of the Import Control List (ICL), the Export Control List (ECL) and the Area Control

List (ACL). The Act sets out the purposes for including goods or countries on these lists. The ICL generally comprises a list of goods, some of which are only controlled for certain countries of origin; all goods contained in this list require an import permit. The ECL is a list of goods only; all goods contained on this list also require an export permit. The ACL is a list of countries for which export permits are required to export any and all goods.

ICL products: Textiles and Clothing; Agricultural Products; Steel Products; Weapons and Munitions.

ECL products: Agricultural products: Refined Sugar, Sugar-containing Products and Peanut Butter; Textiles and Clothing; Military, Strategic Dual-use Goods; Nuclear Energy Materials and Technology; Missile, Chemical or Biological Goods of Non-proliferation Concern; Softwood Lumber, Unprocessed Logs and Certain Other Forest Products; Miscellaneous Goods including Goods of U.S.-origin, Roe Herring and Certain Items with Medical Value; and All Goods Destined for Countries on the Area Control List.

On 1 January 2003 Canada implemented the LDC market access initiative. This initiative provides duty free and quota free access to imports from 48 of the world's least developed countries (LDCs), with the exception of supply-managed agricultural products (dairy, poultry and eggs). Myanmar is not eligible from the Least Developed Countries Tariff (LDCT) and will not be eligible for the LDC initiative.

Export and Import Controls Bureau:  http://www.dfait-maeci.gc.ca/~
eicb/epd_home.htm

For more information, please contact:

Grace King

International Trade Canada

Grace.King@international.gc.ca

Quantitative Import Restrictions/

Prohibitions

Textiles and Clothing

Endangered Species

Leaded Gasoline

Firearms and Weapons

Explosives

Hazardous Waste

Protection of the Ozone Layer

Canada is committed to the procedures and timing for dismantling restrictions on textile and clothing imports by the end of 2004, as agreed in the WTO Agreement on Textiles and Clothing (ATC).

The ATC requires that any Member who retains the right to use safeguards under Article 6 of the ATC must integrate at least 16% of the volume of its textile and apparel products covered by the ATC at the start of stage one.  At least 17% more must be integrated during stage two, and 18% in stage three. 

Canada has gone beyond its ATC obligations with regards to the percentage requirements for these two stages for a cumulative total of 53% of integration. Amongst the several products from which Canada removed import quotas included most men's and women's blouses and hirts either woven or knit in its second phase and third phase, which are interest to Canada's APEC partners.

To obtain more information, contact:

http://www.dfait-maeci.gc.ca/t
rade/eicb/textile/textiles-en.
asp

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8104   Fax: 1-613-996-0612

Email: epm@international.gc.ca

Canada is a Party to the Convention on International Trade in Endangered Species (CITES).  Because thousands of animal and plant species are regulated by this convention, the transportation of endangered species of animals, plants, and their products is restricted and may require the prior issuance of an import permit by Canada and/or an export permit by the country of export.  This restriction also applies to certain animal skins, trophies, and mounted animals. 

For further information contact: 

Administrator, Convention on International Trade in Endangered Species, Environment Canada, Canadian Wildlife Service, Ottawa, Ontario, Canada, K1A 0H3, Tel: (819) 994-1528.

Leaded gasoline containing more than 5 mg per litre of lead except for certain specific uses is prohibited for importation into Canada under the authority of the Gasoline Regulations pursuant to the Canadian Environmental Protection Act. 

For information concerning the application of the Gasoline Regulations, inquiries may be directed to the Oil, Gas & Energy Branch, Environment Canada, 351 St. Joseph Blvd., Hull, Quebec, Canada, K1A 0H3, Tel: (819) 953-4673.

Not all firearms and weapons are allowed to enter Canada.  Any queries about the importation of firearms and weapons should be directed to the regional Customs office where the firearms or weapons are to be imported.

For Canada Customs office locations: http://www.ccra-adrc.gc.ca/

The importation of explosives is governed by the Explosives Act and Regulations administered by the Department of Natural Resources. The legal definition of explosives includes blasting explosives, detonators, propellants, sporting and industrial cartridges, and all types of fireworks and pyrotechnic devices.  Before an explosive may be imported it must be declared an authorized explosive by the Chief Inspector of Explosives appointed under the Explosives Act.  The process of authorizing an explosive consists of the manufacturer submitting data on the nature and composition of the explosive and on its packaging and markings. Samples are usually required for laboratory examination. A standard testing fee of $771.00 for fireworks, $716.00 for ammunition and up to $2561.00 for blasting explosives and accessories applies.  The criteria for authorization

are based on the safety characteristics of the explosive substances or articles during handling, storage, transport and use, and used to confirm that the classification conforms with the recommendations of the Committee of Experts on the Transport of Dangerous Goods as adopted by the Economic and Social Council (ECOSOC) of the United Nations.

Canada is a Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, to the Council of the Organization for Economic Cooperation and Development concerning the Control of Transboundary Movements of Wastes Destined for Recovery Operations, as set out in Council Decision C(2001)107, and has signed the Canada-USA Agreement on the Transboundary Movement of Hazardous Waste. The exportation and importation of hazardous wastes destined for disposal or recycling in Canada are administered by Environment Canada under the Export and Import of Hazardous Wastes Regulations which require prior informed consent procedures, i.e. notification and consent of the country of import before any export permit is issued.

For further information on the controls imposed by the Export and Import of Hazardous Wastes Regulations, queries maybe directed to:  Transboundary Movement Branch, Environment Canada, 6th Floor, 70 Cremazie, Gatineau, Ontario, Canada, K1A 0H3.  Tel:  (819) 997-3377.

Canada is a Party to the Montreal Protocol on Substances that Deplete the Ozone Layer, which seeks to limit the production and use of substances which deplete the ozone layer.  Examples of the types of products prohibited from importation under the Ozone-depleting Substances Regulations 1998 are listed below:

- bulk CFCs, Halons, carbon tetrachloride, methyl chloroform and HBFCs

- bulk HCFCs and methyl bromide without a permit

-10 kilograms or less of any CFC contained in pressurized containers

-any products that contains any CFC or is intended to contain any CFC, bromoflurocarbon (BFC), tetrachloromethane (carbon tetrachloride) or 1,1,1-trichloroethane (methyl chloroform);

-plastic foam in which any CFC has been used as a foaming agent

-product and bulk HCFC-141b for use as in industrial cleaning;

-lubricant for use in mining and other such operations;

-the production and the importation of CFC-based metered-dose inhalers (MDIs) containing salbutamol;

-the sale of CFC-based MDIs containing salbutamol;

- the production and importation of CFC-based MDIs containing cortico-steriods, effective January 1, 2004;

- the production and importaion of any other CFC-based MDIs effective Janary 1, 2005;

-pressurized containers that contain 2 kg or less of HCFC (some exemptions apply); and

- plastic foam products in which any HCFC has been used as a foaming agent (except rigid foam).

For information concerning the application of the Ozone-depleting Substances Regulations, inquiries may be directed to the Chemical Controls Division, Environment Canada, 351 St. Joseph Blvd., Hulk, Quebec, Canada, K1A 0H3, Tel: (819)953-1665.

Quantitative Export Restrictions/

Prohibitions

Endangered Species

Canada is a Party to the Convention on International Trade in Endangered Species (CITES).  Because thousands of animal and plant species are regulated by this convention, the transportation of endangered species of animals, plants, and their products is restricted and may require the prior issuance of an import permit by Canada and/or an export permit by the country of export.  This restriction also applies to certain animal skins, trophies, and mounted animals. 

For further information contact: 

Administrator, Convention on International Trade in Endangered Species, Environment Canada, Canadian Wildlife Service, Ottawa, Ontario, Canada, K1A 0H3, Tel: (819) 997-1840.

Import Levies

Canada does not apply import levies that act as non-tariff measures. The GST/HST is a federal tax payable on goods and services bought in Canada, whether produced domesticall or imported, and does not discriminate between domestic and foreign suppliers. The goods and services tax (GST) is applied at a rate of 7%. Three provinces apply a harmonized sales tax (HST) that combines the GST plus an 8% provincial tax while six other provinces apply a rate between 6-10%.

Export Levies

Cigarettes

Canada does not apply export levies that act as non-tariff measures. As part of a comprehensive strategy to improve the health of Canadians by reducing tobacco consumption, Canada introduced a tobacco tax structure in April 2001 to reduce the incentive to smuggle Canadian-produced tobacco products back into Canada from export markets - the main source of contraband in the past. The main element is a tax that does not discriminate between domestically manufactured and imported tobacco products. This measure is fully compliant with Canada's WTO commitments.

Discretionary Import Licensing

Agricultural and food products/ Plant and animal health certification

Dairy products; chicken, turkey, eggs and egg products, broiler hatching eggs and chicks; beef and veal; margarine; wheat, wheat products, barley, and barley products

Pork

Natural Gas and Ethane

Many agricultural products, including live animals and products of animal origin, meat and poultry, eggs and egg products, dairy products, fresh fruit and vegetables, processed fruit and vegetables, grains, seeds and nuts (for human consumption, propagation or animal feed), plants and plant products (including forest products), fertilizers, soil and growing media, pest control products and animal and plant biologics, are subject to Agriculture and Agri-food Canada legislated requirements.  These measures are maintained in accordance with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.

Animals and Animal Products:  All animals and animal products must be declared to customs at the first point of arrival in Canada.  Health certificates are required to import most live animals and animal products.

Plant Products: All plants and plant products must be declared to Customs at the first point of arrival in Canada.  Phytosanitary certificates are required to import many plant products. 

Inquiries should be directed to:

Canadian Food Inspection Agency

(Animal Products or Plant Health Directorate)

59 Camelot Drive

Nepean, Ontario, K1A 0Y9

Tel: (613) 225-2342

Fax: (613) 228-6636

http://www.inspection.gc.ca

Effective January 1, 1995 (August 1, 1995 for wheat, wheat products, barley, barley products, butter, dry whey, and cream), in compliance with its GATT/WTO commitments, Canada converted its agricultural import controls to a system of tariff rate quotas (TRQs).  Under these TRQs, imports within the TRQ level (i.e. within the access commitment), require a specific import permit issued through the Export and Import Controls Bureau (EICB) in order to benefit from the lower rate of duty, while imports over the quota level, subject to higher rates of duty, may enter under a General Import Permit.  Exceptions to the requirement for a specific import permit are wheat, wheat products, barley, barley products, and fluid milk for personal consumption, which are administered on a first-come, first-served basis.

To obtain more information, contact:

http://www.dfait-maeci.gc.ca/~
eicb/agric/agric-e.htm

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8104  Fax: 1-613-996-0612

Email: epm@International.gc.ca

Since August 1999 pork imported from the European Union in excess of 2,970 metric tonnes is subject to a 100% tariff, imposed in retaliation for the refusal of the European Union to implement WTO dispute settlement findings regarding its ban on Canadian exports of beef produced using growth hormones.

To obtain more information, contact:

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8104   Fax: 1-613-996-0612

http://www.dfait-maeci.gc.ca/~
eicb/agric/agric-e.htm

Email: epm@International.gc.ca

The National Energy Board Act, and the Part VI Regulations made thereunder, control imports of natural gas by pipeline, railway tank cars, and tank trucks or tankers. Imports are authorized by both licences and orders. Licences are issued for large volume and long-term imports while orders are used in the case of small volume and emergency and short-term imports. An application is made to the Board for import authorization. In the case of a licence, the application will be set down for a public hearing. No licence is effective until approved by the Governor-in-Council. The issuance of an import order requires the approval of the Board and does not require a public hearing.

Automatic Import Licensing

Steel

Since 1986, most steel products in the range of Harmonized System items 7206-7317 from all countries require an import permit. The permits are available online from Foreign Affairs and International Trade Canada in 15 minutes and do not restrain the quantity or price or other aspects of steel imported into Canada in any way. The purpose of Canada’s steel import monitoring program is to provide a source of timely and accurate statistics concerning steel imports.  In particular, data and related reports concerning the type, quantity, price, and origin of steel imports are of ongoing interest to a wide range of interested parties, including the Canadian steel industry. 

Steel products imported into Canada have been subject to automatically dispensed import permits for statisical monitoring purposes since 1986.  Steel import data is available to all interested parties via the Internet and assists in identifying emerging import trends in terms of both volume and price.  This information has been effective in alerting industry stakeholders to the possibility of potentially injurious imports, which may be unfairly traded through dumping and subsidization.  The program is administered by International Trade Canada under the Export and Import Permits Act, was last renewed in 2002 for a three year period which expires on August 31, 2005.

For additional information, contact:

http://www.dfait-maeci.gc.ca/~
eicb/steel/steel-e.htm

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8358   Fax: 1-613-996-0612

Discretionary Export Licensing

Sugar, sugar-containing products and peanut butter exports to the United States

Sugar, sugar-containing products, and peanut butter were added to the Export Control List, pursuant to the Export and Import Permits Act (EIPA), in order to ensure the orderly export marketing of these products to the United States.  These products are subject to tariff rate quotas established by the United States in 1995.

For additional information, contact:

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8104   Fax: 1-613-996-0612

http://www.dfait-maeci.gc.ca/~
eicb/agric/agric-e.htm

Email: epm@international.gc.ca

Voluntary Export Restraints

Canada has no measures to report.

Export Subsidies

In keeping with its obligations under the WTO Agreement on Subsidies and Countervailing Measures, Canada does not maintain any export subsidies.

Minimum Import Prices

Canada does not impose any minimum import prices.

Implementation of APEC Leaders’ Transparency Standards on Market Access*

Other Non-Tariff

Measures Maintained

Canada has no additional measures to report.

General Policy

Position

Canada maintains WTO-consistent non-tariff measures required to protect health, safety, security, or environment, as well as to comply with our obligations under international agreements.

Import restrictions and import licensing requirements in Canada are consistent with Canada's obligations under the WTO and support action taken under relevant domestic legislation.  Canada eliminated its quantitative import restrictions in the agricultural and food sectors when it implemented the Uruguay Round agreements.  The Agreement on Agriculture also prohibits minimum import prices.  Canada is committed to the procedures and timing for dismantling restrictions on textile and clothing imports by the end of 2004, as agreed in the WTO Agreement on Textiles and Clothing.

Canada's export restrictions and export licensing requirements are consistent with its WTO obligations and support action taken under domestic legislation.  Canada does not maintain any WTO-inconsistent quantitative export restrictions. On July 31, 1995, the Western Grain Transportation Act was eliminated.  By this measure, Canada has eliminated all export subsidies on grains and oilseeds, exceeding its Uruguay Round commitments for export subsidy reductions.  Voluntary export restraints are prohibited under the WTO Agreement on Safeguards.  With the exception of certain primary products, export subsidies are prohibited in the WTO.  On agricultural products, the WTO Agreement on Agriculture contains disciplines and reduction commitments.

Export and Import Controls Bureau: 

http://www.dfait-maeci.gc.ca/~
eicb/epd_home.htm

Quantitative Import Restrictions/

Prohibitions

Textiles and Clothing: Canada is committed to the procedures and timing for dismantling restrictions on textile and clothing imports by the end of 2004, as agreed in the WTO Agreement on Textiles and Clothing.

The ATC sets out specific obligations with regards to the implementation during the transition period from 1995 to 2005.  The first specific obligation regarding implementation is integration.  The second specific obligation is the application of growth rates to the quotas in place.  The ATC specifically defines the coverage of the ATC in terms of products that are outside the GATT 1994 rules and that are to be integrated.

The ATC requires that any Member who retains the right to use safeguards under Article 6 of the ATC must integrate at least 16% of the volume of its textile and apparel products covered by the ATC at the start of stage one.  At least 17% more must be integrated during stage two.  Canada will meet the ATC’s third stage provisions by integrating a further 18% of its original volume.  The final stage of liberalization will take effect on January 1, 2005, with the abolition of the remaining quotas.

To obtain more information, contact:

http://www.dfait-maeci.gc.ca/~
eicb/textile/textiles-e.htm

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8104   Fax: 1-613-996-0612

Email: epm@international.gc.ca

Endangered Species: Canada is a Party to the Convention on International Trade in Endangered Species (CITES).  Because thousands of animal and plant species are regulated by this convention, the transportation of endangered species of animals, plants, and their products is restricted and may require the prior issuance of an import permit by Canada and/or an export permit by the country of export.  This restriction also applies to certain animal skins, trophies, and mounted animals. 

For further information contact:  Administrator, Convention on International Trade in Endangered Species, Environment Canada, Canadian Wildlife Service, Ottawa, Ontario, Canada, K1A 0H3, Tel: (819) 994-1528.

Leaded Gasoline: Leaded gasoline containing more than 5 mg per litre of lead except for certain specific uses is prohibited for importation into Canada under the authority of the Gasoline Regulations pursuant to the Canadian Environmental Protection Act. 

For information concerning the application of the Gasoline Regulations, inquiries may be directed to the Oil, Gas & Energy Branch, Environment Canada, 351 St. Joseph Blvd., Hull, Quebec, Canada, K1A 0H3, Tel: (819) 953-4673.

Firearms and Weapons: Not all firearms and weapons are allowed to enter Canada.  Any queries about the importation of firearms and weapons should be directed to the regional Customs office where the firearms or weapons are to be imported.

For Canada Customs office locations:

http://www.ccra-adrc.gc.ca/

Explosives: The importation of explosives is governed by the Explosives Act and Regulations administered by the Department of Natural Resources. The legal definition of explosives includes blasting explosives, detonators, propellants, sporting and industrial cartridges, and all types of fireworks and pyrotechnic devices.  Before an explosive may be imported it must be declared an authorized explosive by the Chief Inspector of Explosives appointed under the Explosives Act.  The process of authorizing an explosive consists of the manufacturer submitting data on the nature and composition of the explosive and on its packaging and markings. Samples are usually required for laboratory examination. A standard testing fee of $771.00 for fireworks, $716.00 for ammunition and up to $2561.00 for blasting explosives and accessories applies.  The criteria for authorization are based on the safety characteristics of the explosive substances or articles during handling, storage, transport and use, and to confirm that the classification conforms with the recommendations of the Committee of Experts on the Transport of Dangerous Goods as adopted by the Economic and Social Council (ECOSOC) of the United Nations.

Hazardous Waste: Canada is a Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, to the Decision of the Council of the Organization for Economic Cooperation and Development concerning the Control of Transboundary Movements of Wastes Destined for Recovery Operations, and has signed the Canada-USA Agreement on the Transboundary Movement of Hazardous Waste.  The exportation and importation of hazardous wastes destined for disposal or recycling in Canada are administered by Environment Canada under the Export and Import of Hazardous Wastes Regulations which require prior informed consent procedures, i.e. notification and consent of the country of import before any export permit is issued.

For further information on the controls imposed by the Export and Import of Hazardous Wastes Regulations, contact:  Transboundary Movement Branch, Environment Canada, 6th Floor,70 Cremazie, Gatineau, Ontario, Canada, K1A 0H3.  Tel:  (819) 997-3377.

Protection of the Ozone Layer: Canada is a Party to the Montreal Protocol on Substances that Deplete the Ozone Layer, which seeks to limit the production and use of substances which deplete the ozone layer.  Examples of the types of products prohibited from importation under the Ozone-depleting Substances Regulations No. 1 and Ozone Substances Regulations no. 3 are listed below:

-bulk CFCs

-10 kilograms or less of any CFC contained in pressurized containers

-any products in a pressurized container that contains 10 kilograms or less of any CFC

-plastic foam in which any CFC has been used as a foaming agent

-release agent for molds used in the manufacture of plastic and elastomeric materials

-lubricant for use in mining and other such operations.

Canada has significantly and meaningfully liberalized its restraint regime by removing quotas on products of direct interest to exporting countries. During the second phase, Canada removed from quota the following commercially-significant products: tailor collared shirts, rainwear, women & girls' ensembles, women/girls knitted blouses, children's blouses and baby outerwear. In addition, in 1998 we increased by 10% the restraint levels for winter outerwear, over and above what the required growth rates specified in ATC.

On January 1, 2002, Canada integrated a wide range of apparel products for the 3^rd phase of the ATC, including women's/girl's/children's suits and ensembles, all knitted and woven shirts, blouses and tops, swimwear, all babywear, and thermal and standard overalls. Quotas were removed from apparel products, irrespective of the material they are made of. None of the partially liberalized quotas, and none of the combined quotas, were readjusted, which will result in a further de facto increase in access to our market.

Canada has integrated a cumulative total of 53% of the 1990 import volume of textiles and clothing.

On January 15, 2000, Canada amended its Wild Animal and Plant Trade Regulations made under the Wild Animal and Plant Protection and Regulation of International and Interprovicial Trade Act (WAPPRIITA) to exempt certain personal and household effects from the need to obtain permits under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). These amendments are in line with the provisions of the Convention made under Article VII-3 concerning personal and household effects.

Quantitative Export Restrictions/

Prohibitions

Endangered Species: Canada is a Party to the Convention on International Trade in Endangered Species (CITES).  Because thousands of animal and plant species are regulated by this convention, the transportation of endangered species of animals, plants, and their products is restricted and may require the prior issuance of an import permit by Canada and/or an export permit by the country of export.  This restriction also applies to certain animal skins, trophies, and mounted animals. 

For further information contact:  Administrator, Convention on International Trade in Endangered Species, Environment Canada, Canadian Wildlife Service, Ottawa, Ontario, Canada, K1A 0H3, Tel: (819) 997-1840.

On January 15, 2000, Canada amended its Wild Animal and Plant Trade Regulations made under the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA) to exempt certain peronal and household effects from the need to obtain permits under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). These amendments are in line with the provisions of the Convention made under Article VII-3 concerning personal and household effects.

Import Levies

Canada does not apply import levies that act as non-tariff measures. The GST/HST is a federal tax payable on goods and services bought in Canada, whether produced domestically or imported, and does not discriminate between domestic and foreign suppliers. The goods and services tax (GST)  is applied at a rate of 7%. Threeprovinces apply a harmonized sales tax (HST) that combines the GST plys an 8% provincial tax while six other provinces apply a rate between 6-10%.

Export Levies

Canada does not apply export levies that act as non-tariff measures.

As part of a comprehensive strategy to improve the health of Canadians by reducing tobacco consumption, Canada introduced a tobacco tax structure in April 2001 to reduce the incentive to smuggle Canadian-produced tobacco products back into Canada from export markets - the main source of contraband in the past.  The main element is a tax that does not discriminate between domestically manufactured and imported tobacco products.  This measure is fully compliant with Canada's WTO commitments

Discretionary Import Licensing

Plant and animal health certification/Agricultural Products: Many agricultural products, including live animals and products of animal origin, meat and poultry, eggs and egg products, dairy products, fresh fruit and vegetables, processed fruit and vegetables, grains, seeds and nuts (for human consumption, propagation or animal feed), plants and plant products (including forest products), fertilizers, soil and growing media, pest control products and animal and plant biologics, are subject to Agriculture and Agri-food Canada legislated requirements.  These measures are maintained in accordance with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.

Animals and Animal Products:  All animals and animal products must be declared to customs at the first point of arrival in Canada.  Health certificates are required to import most live animals and animal products.

Plant Products: All plants and plant products must be declared to Customs at the first point of arrival in Canada.  Phytosanitary certificates are required to import many plant products. 

Inquiries should be directed to:

Canadian Food Inspection Agency

(Animal Products or Plant Health Directorate)

59 Camelot Drive

Nepean, Ontario, K1A 0Y9

Tel: (613) 225-2342

Fax: (613) 228-6636

http://www.inspection.gc.ca

Dairy products; chicken, turkey, eggs, broiler hatching eggs and chicks; beef and veal; margarine; and wheat and barley and their products: Effective January 1, 1995 (or August 1, 1995 for wheat, barley and their products, butter, dry whey and cream), in compliance with its GATT/WTO commitments, Canada converted its agricultural import controls to a system of tariff rate quotas (TRQs).  Under these TRQs, imports within the TRQ level (i.e. within the access commitment) require a permit issued through the Export and Import Controls Bureau (EICB) in order to benefit from the lower rate of duty.  Imports over the quota level, subject to higher rates of duty, may enter under a General Import Permit.  Exceptions are wheat, barley, barley products, and fluid milk for personal consumption, which are administered on a first-come, first-served basis.

For more information:

http://www.dfait-maeci.gc.ca/~
eicb/agric/agric-e.htm

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8104   Fax: 1-613-996-0612

Email: epm@dfait-maeci.gc.ca

Pork: Since August 1999 pork imported from the European Union in excess of 2,970 metric tonnes is subject to a 100% tariff, imposed in retaliation for the refusal of the European Union to implement WTO dispute settlement findings regarding its ban on Canadian exports of beef produced using growth hormones.

For more information: http://www.dfait-maeci.gc.ca/~
eicb/pork/pork-e.htm

Natural Gas and Ethane: The National Energy Board Act, and the Part VI Regulations made thereunder, control imports of natural gas by pipeline, railway tank cars, and tank trucks or tankers. Imports are authorized by both licences and orders. Licences are issued for large volume and long-term imports while orders are used in the case of small volume and emergency and short-term imports. An application is made to the Board for import authorization. In the case of a licence, the application will be set down for a public hearing. No licence is effective until approved by the Governor-in-Council. The issuance of an import order requires the approval of the Board and does not require a public hearing.

Automatic Import Licensing

Steel products imported into Canada have been subject to automatically dispensed import permits for statistical monitoring purposes since 1986. The program is administered by International Trade Canada under the Export and Import Permits Act, was last renewed in 2002 for a three year period which expires on August 31, 2005.

For additional information:

http://www.dfait-maeci.gc.ca/~
eicb/steel/steel-e.htm

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8358   Fax: 1-613-996-0612

Discretionary Export Licensing

Sugar, sugar-containing products, and peanut butter exports to the United States of America were added to the Export Control List pursuant to the Export and Import Permits Act (EIPA), in order to ensure the orderly export marketing of these products that are subject to limitations imposed by the United States in 1995.

For additional information, contact:

http://www.dfait-maeci.gc.ca/~
eicb/agric/agric-e.htm

Trade Controls Policy Division

Export and Import Controls Bureau

Telephone: 1-613-995-8104   Fax: 1-613-996-0612

Natural Gas and Ethane: The National Energy Board Act, and the Part VI Regulations made thereunder, control imports of natural gas by pipeline, railway tank cars, and tank trucks or tankers. Imports are authorized via both licences and orders. Licences are issued for large volume and long-term imports while orders are used in the case of small volume and emergency and short-term imports. An application is made to the Board for import authorization. In the case of a licence, the application will be set down for a public hearing. No licence is effective until approved by the Governor-in-Council. The issuance of an import order requires the approval of the Board and does not require a public hearing.

Voluntary Export Restraints

Canada has no measures to report.

Export Subsidies

In keeping with its obligations under the WTO Agreement on Subsidies and Countervailing Measures, Canada does not maintain any export subsides.

Minimum Import Prices

Canada does not impose any minimum import prices.

Implementation of APEC Leaders’ Transparency Standards on Market Access*

Other Non-Tariff

Measures Maintained

Canada has no additional measures to report.     

Chapter 3 : Services

Objective

APEC economies, in accordance with the APEC Policy Framework for Work on Services, will achieve free and open trade and investment in the Asia-Pacific region by:

a.                   progressively reducing restrictions on market access for trade in services;

b.                  progressively providing for inter-alia most favored nation (MFN) treatment and national treatment for trade in services;

c.                   providing, in regulated sectors, for the fair and transparent development, adoption and application of regulations and regulatory procedures for trade in services; and

d.                   recognising the role that e-commerce plays in the supply and consumption of services.

Guidelines

Each APEC economy will:

a.                   contribute positively and actively to the WTO negotiations on trade in services;

b.                  expand commitments under the General Agreement on Trade in Services (GATS) on market access and national treatment and eliminate MFN exemptions where appropriate;

c.                   undertake further actions, where appropriate, to implement the APEC Menu of Options for Voluntary Liberalization, Facilitation and Promotion of Economic and Technical Cooperation in Services Trade and Investment;

d.                   make efforts to provide for the participation of concerned parties in regulations and regulatory processes, the fair and transparent application of regulations, and the prompt consideration of applications;

e.                   support APEC capacity building efforts to supply services by, inter-alia, strengthening infrastructure, promoting the use of advanced technologies and developing human resources; and

f.                    implement and maintain standards consistent with the APEC Leaders’ Transparency Standards.

Collective Actions

APEC economies will take the following Collective Actions with regard to services in the telecommunications, transportation, energy and tourism sectors[1], and continue to seek Collective Actions in other sectors

TELECOMMUNICATIONS
In accordance with the Cancun Declaration, APEC economies will:

a.                   work to bridge the digital divide at the domestic, regional and global levels, and to cooperate and collaborate with the business/private sector in this effort;

b.                  foster discussion between business/private sector and governments on appropriate means to assess and reward the value of products and services exchanged in the provision of converged Internet services among APEC economies, consistent with the APEC Principles on International Charging Arrangements for Internet Services;

c.                   foster the development of effective policies that support competitive markets in the domestic and international telecommunications and information industries;

d.                   accelerate the pace of implementation of the Mutual Recognition Arrangement on Conformity Assessment for Telecommunications Equipment (MRA);

e.                   work to ensure that policy and regulatory environments better foster the uptake of e-commerce;

f.                    implement within voluntary time frames the APEC Interconnection Principles and consult on the need for further discussions on interconnection; and

g.                   give attention to user requirements for open standards and systems to support interoperability

In addition, APEC economies are encouraged to conform, where appropriate, to:

1.                   The WTO Telecommunications Regulatory Principles Reference Paper;

2.                   The Information Technology Agreement (ITA); and

3.                  The Guidelines for Trade in International Value-Added Network Services (IVANS).

TRANSPORTATION  
APEC economies will:

a.                   respond to the Leaders ‘Auckland Challenge’ of 1999, by implementing the eight steps for more competitive air services on a voluntary basis and by identifying further steps to liberalize air services in accordance with the Bogor Goals, and provide annual progress reports to Leaders through SOM (Note:  some components of this project may fall under Part II Ecotech, subject to further developments);

b.         develop by 2005 an efficient, safe and competitive operating environment for maritime transport, including ports, in the region through improved transparency of maritime and port policies (Note:  some components of this project may fall under Part II Ecotech, subject to further developments);

c.                   complete the Road Transport Harmonization Project and encourage the development of mutual recognition arrangements for certification of automotive product and harmonization of economies’ vehicle regulations through cooperation within United Nations Economic Commission for Europe; and

d.         seek to eliminate the requirement for paper documents (both regulatory and institutional) for the key messages relevant to international transport and trade as soon as practicable by 2005.

ENERGY

APEC Economies, by developing and building on the 14 non-binding policy principles endorsed by APEC Energy Ministers at their Sydney meeting in 1996 which are consistent with the vision, objectives and strategic themes of the recently endorsed Future Directions Strategic Plan that will guide their work over the next five years:

a.                will facilitate trade and investment in the energy sector by

                     i.      responding to the outcomes of a current study on "Strengthening the Operational Aspects of APEC Energy Micro -Economic Reform" that will, inter-alia, inform on barriers to investment in the energy sector and how to remove the barriers.

                   ii.      analysing the broad economic impacts of micro-economic reform policies to deregulate energy markets.

                  iii.      responding as appropriate to the identification of the barriers (policy, technical, regulatory and legal) to the interconnection of power grids in APEC member economies.

                  iv.      actively pursuing the Implementation Strategy and considering the use of Implementation Facilitation Assistance Teams (IFAT) to assist in further reform of the energy markets.

                   v.      strengthening policy dialogue among member economies on important issues affecting energy markets.

                  vi.      supporting the APEC 21st Century Renewable Energy Development Initiative which seeks to advance the use of renewable energy for sustainable economic development and growth in member economies.

                vii.      encouraging in the longer term a greater strategic input from business through the Energy Working Group Business Network (EBN).

b.            will seek to reduce barriers to trade created by differing energy performance test methods and energy performance requirements by supporting the establishment of an APEC Energy Efficiency Test Procedures Coordinator.

c.      will strengthen energy security in the region by developing and implementing an energy security initiative with the aim of improving the functioning of energy markets; energy efficiency and conservation; diversification of energy resources; renewable energy development and deployment; and enhance short term preparedness such as oil stocks and surge production of oil; and explore the potential for alternative transport fuels

TOURISM

APEC economies will:

a.     Remove impediments to tourism business and investment by:

(i)     promoting and facilitating the mobility of skills, training and labor;

(ii)    promoting and facilitating productive investment in tourism and associated sectors;

(iii)   removing regulatory impediments to tourism business and investment; and

(iv)   encouraging liberalization of services trade related to tourism under General Agreement on Trade in Services (GATS)

b.    Increase mobility of visitors and demand for tourism goods and services in the APEC region by:

(i)     facilitating seamless travel for visitors;

(ii)    enhancing visitor experiences;

(iii)   promoting inter- and intra-regional marketing opportunities and cooperation;

(iv)   facilitating and promoting e-commerce for tourism business;

(v)    enhancing safety and security of visitors; and

(vi)   fostering a non-discriminatory approach to the provision of visitor facilities and services.

c.     Sustainably manage tourism outcomes and impacts by:

(i)    demonstrate an appreciation and understanding of natural environment and seek to protect the environment

(ii)    foster ecologically sustainable development opportunities across the tourism sector, particularly for small and medium sized enterprises, employment and providing for open and sustainable tourism markets

(iii)   protect the social integrity of host communities with particular attention to the implications of gender in the management and development of tourism

(iv)   recognize, respect and preserve local and indigenous cultures together with our natural and national cultural heritage

(v)    enhance capability building in the management and development of tourism.

d.     Enhance recognition and understanding of tourism as a vehicle for economic and social development by:

(i)    Harmonizing methodologies for key tourism statistical collections, consistent with activities of other international tourism organizations

(ii)    facilitating the exchange of information on tourism between economies

(iii)   promoting comprehensive analysis of the role of tourism in member economies in promoting sustainable growth

(iv)   expanding our collective knowledge base on tourism issues in order to identify emerging issues and assist in the implementation of the Seoul Declaration on an APEC Tourism Charter. 

The current CAP relating to services can be found in the Services Collective Action Plan

Canada’s Approach to Trade in Services in 2004

Canada participated actively in efforts to broaden and strengthen the GATS, including through work on the built-in agenda.  Pursuant to the February 1997 Agreement on Basic Telecommunications Services, Canada made commitments on an MFN basis, including the ending of monopolies in this sector.  In keeping with Canadian commitments on financial services, Canada has announced a new policy framework for the Canadian financial services sector and brought legislation and related regulations into force concerning foreign bank branching.    Actively involved in the GATS maritime transport services negotiations in 1996, Canada sought to secure commitments in the areas of international maritime transport, maritime auxiliary services (e.g. storage and warehousing, freight forwarding) and access to and use of port facilities and onward transport.

Since February 2000, Canada has been engaged, with other WTO Member countries, in a new round of GATS negotiations.   In this context, Canada participates in WTO work on domestic regulations, safeguards, subsidies and government procurement in a services context.  The November 2001 Doha Ministerial set in motion the market access phase of the GATS negotiations and mandated that "participants shall submit initial requests for specific commitments by June 30, 2002 and initial offers by March 2003." 

As a result, Canada made public on July 8, 2002 a description of its initial request for market access in services to more than 40 WTO members, none of which is a least developed country. As a general rule, Canada asked its trading partners to at least match Canada's current level of commitments. Canada's initial offer reflects the negotiating objectives set out in March 2001 and incorporates the results of consultations held with a wide range of stakeholders since January 2000. For a more detailed summary of Canada’s requests, please visit our GATS 2000 website.  Please be advised that this website will soon be migrated to the International Trade Canada website.

Canada released its initial conditional offer on March 31, 2003 and was the first country to commit to making its offer public.  This public release reflects Canada's leadership in promoting greater transparency with the WTO and we are pleased that other WTO members have followed with similar commitments.  Canada also paid particular attention to the requests made and concerns raised by developing countries and, in particular, the least developed countries, by including in its initial offer elements of interest to these countries, such as the temporary entry of services suppliers.  Please visit our website to view Canada’s initial conditional offer.

For more information, please contact:

Nadin Nanji

Services Trade Policy

International Trade Canada

nadin.nanji@international.gc.ca

Foreign Investment or Right of Establishment (including Joint Venture Requirements)

Several provinces have removed some Citizenship requirements as outlined in the applicable sections.

There are no limitations on market access with respect to commercial presence.  However, under the Investment Canada Act (the Act), acquisition of control of a Canadian business by a non-Canadian is subject to approval by the Minister responsible for the Act for businesses with assets over a particular amount (C$ 237 million in 2004), adjusted each year to reflect any changes in nominal GDP.  With respect to national treatment, Canada did not undertake GATS commitments on the following types of measures (see Canada’s GATS Schedule for more details):

- supply of a service, or its subsidization, within the public sector;

- subsidies related to research and development;

- federal and sub-central tax measures resulting in differences in treatment for "Canadian-controlled private corporations" (generally pertaining to small business);

- tax measures where the service supplier is directly or indirectly owned by government;

- ownership and management nationality restrictions on investors in the privatization of state enterprises;

- differential treatment in terms of benefits or price with respect to the general supply of social services to the public, particularly with respect to income security or insurance, social security or insurance, social welfare, public education, training, health and child care;

- a majority of the directors of federally incorporated and most provincially incorporated corporations in Canada must be Canadian citizens or persons ordinarily resident in Canada or a particular province;

- federal or sub-national measures that are more favourable to aboriginals or their organizations;

- there are differential restrictions or taxes in some provinces that apply to non-residents in the purchase of certain types of land, e.g. public land, farm and shore land; and

- eligibility for investments from small business development corporations and differential treatment of corporations in Ontario with respect to capital gains on shares of corporations resident in Canada.

Temporary Entry and Stay of Service Providers and Intra-Corporate Transferees

With respect to the movement of persons providing services, natural persons falling into the following categories may enter or stay on a temporary basis, subject to certain conditions: business visitors, intra-corporate transferees, executives, managers, specialists, and professionals. For more details, please consult Canada’s GATS Schedule of Specific Commitments and its Supplement on Movement of Natural Persons.

Foreign Exchange Control/

Movement of Capital

There are no foreign exchange controls or restriction on movement of capital.

Implement APEC Leaders’ Transparency Standards on Services*

The Government of Canada encourages transparency and predictability in regulatory policy in recognition of its wide-ranging benefits.  Many elements of the Government’s Regulatory Policy address directly, or otherwise encourage, transparency.  The policy requires that stakeholders – industry, labour, consumer groups, professional associations, other governments, and interested individuals – be consulted on all phases from the identification of problems to the development of regulatory solutions.  More information on this and on Canadian laws, regulations, and administrative procedures can be found through the weblink above. 

The official news bulletin of the Government of Canada is the Canada Gazette.  Canada Gazette Part I, published weekly, contains all formal public notices, official appointments, miscellaneous notices and proposed reulations from the government and private sectors.  Canada Gazette Part II, published twice weekly, contains regulations and other statutory instruments.  Canada Gazette Part III, published as soon as is reasonably predictable after Royal Assent, contains the most recent Public Acts of Parliament and their enactment proclamations.

Other Generic Requirements

Applied to Trade in Services

With respect to cross-border and consumption abroad of services, there are no limitations on market access.  With respect to trade in services national treatment, there are no limitations other than the following measures set out in the Canadian GATS Schedule: tax measures affecting scientific research and experimental development services; Ontario tax measures with respect to payments for management services made to affiliated non-residents; preferences to Albertan or Canadian service suppliers in the case of all large scale energy project development; preferences to Newfoundland and Nova Scotian services suppliers for petroleum operations. More information can be found in Canada’s GATS Schedule of Specific Commitments. 

Canada’s exceptions to MFN Treatment could be found in Canada’s GATS List of Article II (MFN) Exceptions.

General Policy

Position

Canada had one of the most open and liberal services regimes in the world, with the services sector accounting for about two-thirds of Canada's GDP and over 15 percent of Canada's total trade (1996). 

Internal liberalization of the Canadian services market was complemented by new international commitments, under both the North American Free Trade Agreement (NAFTA), (1994), and the WTO agreement, including commitments under the General Agreement on Trade in Services (GATS), (1995).  Overall, only a few MFN exemptions and horizontal measures applied under Canada's GATS commitments.  Domestic legislation was amended where required to bring it into conformity with Canada's international obligations. 

Additional commitments have been made by Canada under:

-WTO Agreement on Basic Telecommunications (1997)

-WTO Agreement on Financial Services (1997)

-Canada-Chile Free Trade Agreement (1997)

-Canada-Costa Rica Free Trade Agreement (2001)

Canada entered into negotiations on a Free Trade Area for the Americas (FTAA), which includes a Working Group on Services (1998). 

Canada is negotiating at the WTO in the current round of services negotiations.  Canada’s initial offer was released publicly on March 31, 2003.

Foreign Investment or Right of Establishment (including Joint Venture Requirements)

There were no limitations on market access with respect to commercial presence (1996).  However, under the Investment Canada Act, acquisition of control of a Canadian business by a non-Canadian was subject to approval by the Minister responsible for the Investment Canada Act for businesses with assets over a particular amount adjusted each year to reflect any changes in nominal GDP.  With respect to national treatment there were few limitations.

No major changes in measures of general application.

Temporary Entry and Stay of Service Providers and Intra-Corporate Transferees

With respect to the movement of persons providing services, natural persons falling into the following categories were able to enter or stay on a temporary basis, subject to certain conditions: business visitors, intra-corporate transferees, executives, managers, specialists, and professionals (1996).

No major changes in measures of general application.

Foreign Exchange Control/

Movement of Capital

No foreign exchange controls on the movement of capital.

No foreign exchange controls on the movement of capital exist.

Implement APEC Leaders’ Transparency Standards on Services*

Canada released its initial conditional offer on March 31, 2003.  Canada was the first country to commit to making its offer public, and is pleased that other WTO members have followed with similar commitments.  The release reflects Canada's leadership in promoting greater transparency with the WTO.  Further, the Government of Canada has been working closely with provincial and territorial governments, which have jurisdiction in many areas of services trade, to develop our initial negotiating position. The government maintains a close relationship with the provinces and territories in the area of international trade policy through a variety of mechanisms. 

Canada publishes information related to its trade in services on the GATS 2000 website.  This site gives statistical information, background information on the current round of negotiations, provides a detailed description of Canada’s extensive consultative mechanisms and allows individuals and businesses alike to voice their concerns.  This site also provides links to provincial governments and private sector professional associations for those searching for more detailed sector-specific information related to licensing procedures and applications.  Please be advised that this website will soon be migrated to the International Trade Canada website.

Other Generic Requirements Applied to Trade in Services

Operational Requirements

Law societies are established in each province and territory by statute of their respective legislative assemblies. The provincial law societies govern lawyers operating in their jurisdiction. The main responsibilities of the law societies include: admitting lawyers to practice, setting professional standards, specifying professional liability insurance requirements, and administering disciplinary measures. Membership in the law society of the province where a lawyer wishes to practice is mandatory.

More detailed information is available from the Federation of Law Societies of Canada (http://www.flsc.ca/).

Licensing and Qualification Requirements of Service Providers

Generally speaking, applicants to law societies as a student-at-law (also referred to as “student member” or “articled student”) must hold a degree from a recognized Canadian university, have completed an articling period, demonstrate that they are of “good character,” and successfully complete an examination process which allows acceptance to the “bar” of that legal society. The Law Society of Alberta, the Law Society of Saskatchewan and the Law Society of Upper Canada require that their members be either Canadian citizens or permanent residents for accreditation. The Law Society of Newfoundland requires that its members be residents of Canada.

In the context of the North American Free Trade Agreement (NAFTA), joint recommendations for facilitating the mutual recognition of licenses and certification with respect to foreign legal consultants and related cross-border legal services have been developed by the relevant professional bodies.

Foreign Entry

Elimination of permanent residency requirement for accreditation in Prince Edward Island

Elimination of citizenship requirement for accreditation in Quebec

Specific commitments regarding the provision of advisory services on foreign and public international law by foreign legal consultants are set out in Canada's GATS Schedule of Specific Commitments. Canada does not maintain any market access restrictions on foreign legal consultancy services delivered either on the basis of cross-border supply (Mode 1) or consumption abroad (Mode 2).  The supply of foreign legal consultancy services involving the establishment of a commercial presence (Mode 3) are however limited to the form of a sole proprietorship or partnership. With respect to the movement of natural persons (Mode 4), members of the provincial law societies of Alberta, Ontario and Newfoundland are required to be permanent residents for accreditation.

In the context of ongoing GATS negotiations, Canada has listed several additional commitments with respect to foreign legal consultancy services in its initial GATS offer which reflect changes to Canada’s regulatory regime following the end of the Uruguay Round.  Canada’s initial GATS offer was made public on March 31, 2003.

Discriminatory Treatment/

MFN

Specific commitments regarding the provision of advisory services on foreign and public international law by foreign legal consultants are set out in Canada's GATS Schedule of Specific Commitments. With respect to national treatment, Canada does not maintain any restrictions on foreign legal consultancy services.

Operational Requirements

There are three major professional accountancy designations which are governed by provincial/territorial legislation: Chartered Accountant (CA); Certified Management Accountant (CMA); and Certified General Accountant (CGA). Each of these groups is represented by self-regulated provincial associations that bestow the professional accounting designations on students who successfully complete their studies and examinations.

The only accounting services that are regulated in Canada are those associated with public accounting. Public accounting includes: audits and review engagements, as well as any service which involves independent examination of records for the purpose of expressing an opinion as to whether the financial information is presented fairly.

In provinces where public accounting is regulated by statute, only a few require practitioners to have a license.

More detailed information is available from the websites of the national accounting associations (http://www.cica.ca/, http://www.cma-canada.org/ and http://www.cga-canada.org/).

Licensing and Qualification Requirements of Service Providers

In the context of the North American Free Trade Agreement (NAFTA), a Mutual Recognition Agreement (MRA) was signed by representative national accounting bodies for Canada, the U.S. and Mexico aimed at facilitating the mutual recognition of licensing and credentials of chartered/certified accountants within the three countries.  Implementation of the agreement is now required.

Requirements to qualify for the CA designation:

- a university degree;

- specified university courses or equivalent;

- a provincial institute student professional program or equivalent;

- prescribed practical experience; and

- a passing grade on the Uniform Final Examination (UFE).

Requirements to qualify for the CMA designation:

- a university degree (typically a 4 year Bachelor of Commerce with an accounting major and specified courses);

- passing the Entrance Examination;

- completion of the CMA Professional Program (2 years); and

- managerial and operational work experience concurrent with completion of the Professional Program.

Requirements to qualify for the CGA designation:

- a university degree/college diploma;

- professional course/exams (3 years); and

- minimum 2 years acceptable practical experience.

Foreign Entry

Elimination of residency requirement for accreditation in Nova Scotia and Prince Edward Island.

Elimination of citizenship requirement for accreditation in Quebec.

Specific commitments in this area are set out in Canada's GATS Schedule of Specific Commitments.  With respect to market access, limitations include a requirement for commercial presence for auditing work in Saskatchewan, Newfoundland, Nova Scotia, Manitoba and Ontario; citizenship requirements for accreditation in Manitoba; and permanent residency requirements for accreditation in Alberta and Ontario.  In addition, commercial presence must take the form of a sole proprietorship or partnership. These limitations restrict the provision of accounting services across all modes of supply.

In the context of ongoing GATS negotiations, Canada has listed several additional commitments with respect to accounting services in its initial GATS offer which reflect changes to Canada’s regulatory regime following the end of the Uruguay Round.  Canada’s initial GATS offer was made public on March 31, 2003.

Discriminatory Treatment/

MFN

Elimination of residency requirement for accreditation in Nova Scotia and Prince Edward Island.

Elimination of citizenship requirement for accreditation in Quebec.

Specific commitments in this area are set out in Canada's GATS Schedule of Specific Commitments.  With respect to national treatment, several provinces maintain residency requirements for accreditation purposes for auditing services: Alberta, Newfoundland, Nova Scotia, Prince Edward Island and Saskatchewan.  In Manitoba, similar residency requirements for accreditation are in place with respect to licensed public accountants.  With respect to auditing services delivered on the basis of commercial presence, auditing offices in Saskatchewan, British Columbia, Ontario, Nova Scotia, Quebec, Prince Edward Island, Newfoundland and Alberta must be under the management of a resident.

In the context of ongoing GATS negotiations, Canada has listed several additional commitments with respect to accounting services in its initial GATS offer which reflect changes to Canada’s regulatory regime following the end of the Uruguay Round.  Canada’s initial GATS offer was made public on March 31, 2003.

Operational Requirements

Under the statutes of provincial legislatures, known as the Architects Act, provincial architectural associations are given the responsibility of: (i) prescribing the qualifications of persons licensed to practice in the province; (ii) providing the means of control and discipline over members; and (iii) generally regulating the practice of architecture. This Act also makes it an offense for persons, other than those who possess a license, to use the title "Architect," and specifies penalties to persons or corporations illegally engaged in the practice of architecture.

Membership in a provincial architectural association is mandatory for any individual offering architectural services to the public and the services of an architect are required by law where buildings of a certain size are constructed to house public gatherings for commercial, institutional or cultural purposes. Only persons registered with the association have the legal right to refer to themselves as “architects.”

More detailed information is available from the website of the Royal Architectural Institute of Canada (http://www.raic.org/).

Licensing and Qualification Requirements of Service Providers

To qualify for licensing, an applicant must satisfy three requirements: formal education, work experience recorded through a period of internship, and successful completion of the registration examinations. A license is a necessary but not a sufficient condition to practice in a given province. Each jurisdiction establishes its own requirements regarding matters such as accessibility to the public and proof of professional liability insurance. In Ontario, for example, licensed architects must obtain a "Certificate of Practice" which identifies them as duly authorized to provide services to the public.

In the context of the North American Free Trade Agreement (NAFTA), an agreement to facilitate mutual recognition of licensing and credentials was concluded and ratified between the professional regulatory associations in the NAFTA countries.

Foreign Entry

Elimination of permanent residency requirement for accreditation in New Brunswick

Elimination of citizenship requirement for accreditation in Quebec

Specific commitments in this area are set out in Canada's GATS Schedule of Specific Commitments.  With respect to market access, the only limitation which Canada currently maintains is that commercial presence must take the form of a sole proprietorship or a partnership.

In the context of ongoing GATS negotiations, Canada has listed several additional commitments with respect to architectural services in its initial GATS offer which reflect changes to Canada’s regulatory regime following the end of the Uruguay Round.  Canada’s initial GATS offer was made public on March 31, 2003.

Discriminatory Treatment/

MFN

Specific commitments in this area are set out in Canada's GATS Schedule of Specific Commitments.  With respect to national treatment, Canada maintains several limitations at the sub-federal level.  These include: permanent residency requirements for architects in Newfoundland and Nova Scotia; residency requirements for landscape architects in Newfoundland; and a requirement for non-resident firms involved in architectural services by means of commercial presence to maintain a higher percentage of practitioners in a partnership in Prince Edward Island.

In the context of ongoing GATS negotiations, Canada has listed several additional commitments with respect to architectural services in its initial GATS offer which reflect changes to Canada’s regulatory regime following the end of the Uruguay Round.  Canada’s initial GATS offer was made public on March 31, 2003.

Operational Requirements

A professional engineering association exists under provincial and territorial legislation in each of the ten Canadian provinces and three territories. These associations have all the necessary responsibility and authority to govern the profession and its practitioners within its jurisdiction. Although the provincial statutes are revised independently of each other, and although there are many differences among them, the key elements of these statutes are essentially the same.

More detailed information is available from the website of the Canadian Council of Professional Engineers (http://www.ccpe.ca/).

Licensing and Qualification Requirements of Service Providers

Engineering associations from British Columbia, Alberta, Idaho and Washington recently signed a State Board-Association Resolution regarding licensing of engineers in the Pacific North West Economic Region.

Each province requires anyone practicing engineering to be a registered professional engineer (P.Eng.), whether the work is performed as an employee for industry or government or is provided as a consultant to the public. In some jurisdictions, there are additional registration requirements beyond the P.Eng. for certain categories of work.

Professional registration is available to those individuals who have met the requirements with respect to academic qualification, language competency, satisfactory experience and knowledge of professional practice and ethics, and who are of “good character.”

While a number of provinces maintain residency and local presence requirements for practice under a permanent license, all provinces have procedures for temporary licensing of foreign non-resident

engineers, none of which imposes any form of residency or local presence requirements.

The Washington Accord, signed in 1989, recognizes the substantial equivalency or comparability of engineering education courses leading to the first professional degree or basic education in engineering (the "Accredited Engineering Degree"). However, this accord, to which eight countries are signatories (Australia, Canada, Ireland, New Zealand, United Kingdom, United States, Hong Kong/China, and South Africa), does not address the mutual recognition of professional credentials.

Under the NAFTA (North America Free Trade Agreement), a mutual recognition agreement (MRA) for temporary and permanent licensing of engineers, recognizing professional qualification, was signed by Canadian and Mexican federal authorities but remains to be ratified by US states except Texas. This agreement provides mutual recognition for engineers from signatory partners.

All provinces have procedures for temporary licensing of foreign non-resident engineers, none of which imposes any form of residency or local presence requirement. Temporary licenses are valid for one year and are renewable. The only difference between a permanent license and a temporary license is that the former affords the holder the right to participate in the governance of the profession.

More detailed information is available from the website of the Canadian Council of Professional Engineers (http://www.ccpe.ca/) and from the document entitled “The Canadian Engineering Services Industry”.

Professional engineering associations in Canada, Mexico and Texas are in the final stages of implementing the 1995 Canada-Mexico-U.S. Mutual Recognition Agreement for Professional Engineers.  This agreement will allow engineers in the participating jurisdictions to be recognized as professional engineers in those jurisdictions, fully authorized to independently perform engineering work.

Foreign Entry

Elimination of citizenship requirement for accreditation in Quebec

Elimination of permanent residency requirement for accreditation in Nova Scotia

Specific commitments in this area are set out in Canada's GATS Schedule of Specific Commitments.  With respect to engineering and integrated engineering services, market access for the cross-border supply, consumption abroad and the movement of natural persons is limited in British Columbia, Newfoundland, Alberta, Ontario and New Brunswick by the requirement for engineers to be permanent residents for accreditation purposes. In Manitoba, consulting engineers are required (for cross-border supply and consumption abroad) to establish a commercial presence for accreditation.

More detailed information is available from the website of the Canadian Council of Professional Engineers (http://www.ccpe.ca/) and from the document entitled “The Canadian Engineering Services Industry”.

In the context of ongoing GATS negotiations, Canada has listed several additional commitments with respect to engineering and integrated engineering services in its initial GATS offer which reflect changes to Canada’s regulatory regime following the end of the Uruguay Round.  Canada’s initial GATS offer was made public on March 31, 2003.

Discriminatory Treatment/

MFN

Elimination of citizenship requirement for accreditation in Quebec

Elimination of permanent residency requirement for accreditation in Nova Scotia

Specific commitments in this area are set out in Canada’s GATS Schedule of Specific Commitments.  With respect to national treatment, engineers must be residents for accreditation in Saskatchewan in order to provide services on the basis of cross-border supply and movement of natural persons.

In the context of ongoing GATS negotiations, Canada has listed several additional commitments with respect to engineering and integrated engineering services in its initial GATS offer which reflect changes to Canada’s regulatory regime following the end of the Uruguay Round.  Canada’s initial GATS offer was made public on March 31, 2003.

Operational Requirements

Licensing and Qualification Requirements of Service Providers

In Canada, responsibility for recognition and licensing of foreign professionals is the sole responsibility of provincial governments/self- regulated professional associations.  Individual provincial and territorial regulatory bodies may therefore impose licensing and qualification requirements. 

In Québec, the Office des professions du Québec is responsible for providing the regulatory framework for professional services.  More detailed information is available at http://www.opq.gouv.qc.ca/

Several Canadian professional bodies are currently pursuing mutually acceptable standards and criteria for licensing and certification of foreign professional service providers under the North American Free Trade Agreement and Canada-Chile FTA.

Foreign Entry

Specific commitments for professional services such as taxation services and urban planning and landscape architectural services are set out in Canada’s GATS Schedule of Specific Commitments. 

Taxation Services (excluding legal services):  With respect to market access, Canada does not maintain any restrictions, except for certain horizontal measures regarding the movement of natural persons.

Urban Planning and Landscape Architectural Services:  With respect to national treatment, Canada does not maintain any restrictions, except for certain horizontal measures regarding the movement of natural persons. More detailed information is available from the website of the Canadian Institute of Urban Planners (http://www.cip-icu.ca/).

Discriminatory Treatment/

MFN

Specific commitments for professional services such as taxation services and urban planning and landscape architectural services are set out in Canada’s GATS Schedule of Specific Commitments. 

Taxation Services (excluding legal services):  With respect to national treatment, Canada does not maintain any restrictions, except for certain horizontal measures regarding the movement of natural persons.

Urban Planning and Landscape Architectural Services:  With respect to national treatment, the only restriction that Canada maintains is a residency requirement for community and urban planning at the sub-federal level (Newfoundland and Saskatchewan).  More detailed information is available from the website of the Canadian Institute of Urban Planners (http://www.cip-icu.ca/).

Operational Requirements

Computer Services:  There are no operational requirements specific to this sector, except for what is indicated under the categories “Foreign Entry” and “Discriminatory treatment”.

Licensing and Qualification Requirements of Service Providers

Computer Services:  Not aware of any application.

Foreign Entry

Changes in this category include: the elimination of citizenship requirements with respect to Management consulting service and Translation and interpretation services; the removal of foreign ownership restrictions with respect to Investigation and security services; and a reduction of the limitation on Ontario’s foreign ownership restrictions with respect to Collection agency services.

Other Business Services:  This sector is generally open, with few limitations on market access and national treatment.  See Canada’s GATS schedule for more details.

Computer Services:  Specific commitments in this area are set out in Canada's GATS Schedule.  Canada has made commitments in all five subsectors of computer and related services listed under the W/120 with corresponding CPC codes as follows: 1Ba Consultancy services related to the installation of computer hardware (CPC 841); 1Bb Software implementation services, including systems and software consulting services, systems analysis, design and programming, and maintenance services, excluding those listed under Financial Services 7B1 (CPC 842); 1Bc Data processing services, including processing, tabulation and facilities management services, excluding Communications Services 2Cn and Financial Services 7B1 (CPC 843); 1Bd Data base services, excluding those listed under Financial Services 7B1 (CPC 844); and 1Be Other computer services (CPC 845/849).Canada's schedule lists no limitations for Market Access, except for mode 4 of market access where the commitment is unbound, except as indicated in its horizontal commitments.

Discriminatory Treatment/

MFN

Computer Services: Specific commitments in this area are set out in Canada's GATS Schedule.  There are no limitations on National Treatment, except for mode 4 under National Treatment where the commitment is unbound, except as indicated in its horizontal commitments.

Operational Requirements

Postal services related to letters and parcels are provided by Canada Post Corporation to all areas of Canada on a monopoly basis.  More detailed information is available at http://www.canadapost.ca.

Licensing and Qualification Requirements of Service Providers

Not aware of any application.

Foreign Entry

Canada has not undertaken specific commitments in the GATS for these services.  Canada reserves its right to adopt or maintain measures related to postal services.

Discriminatory Treatment/

MFN

Canada has not undertaken specific commitments in the GATS for these services.  Canada reserves its right to adopt or maintain measures related to postal services.

Operational Requirements

There are no operational requirements specific to courier services, except for what is indicated under the categories “Foreign Entry” and “Discriminatory treatment”.

Licensing and Qualification Requirements of Service Providers

Not aware of any application.

Foreign Entry

Specific commitments in courier services, including some limitations on market access by certain provinces, are set out in Canada's GATS Schedule.  There are no limitations on market access, except as indicated under horizontal measures and mode 4, presence of natural persons. Transport commitments are found in the transport part of Canada's GATS schedule.

Discriminatory Treatment/

MFN

Specific commitments in courier services are set out in Canada's GATS Schedule.  There are no limitations on national treatment, except as indicated under horizontal measures and mode 4, presence of natural persons. Transport commitments are found in  the transport part of Canada's GATS schedule.

Operational Requirements

The current Canadian regime is characterized by a pro-competitive regulatory framework and under the supervision of an independent regulatory body (the Canadian Radio-television and Telecommunications Commission or CRTC).  More detailed information available at http://www.crtc.gc.ca/.

Licensing and Qualification Requirements of Service Providers

Service providers must meet the regulatory requirements established by the CRTC.  More detailed information available at http://www.crtc.gc.ca/.

Foreign Entry

Specific commitments in this area, including some limitations on market access both at federal and provincial levels, are set out in Canada's GATS Schedule and and in the Third Supplement to Canada’s GATS Schedule.  For example, telecommunications services may be provided by foreign suppliers on a resale basis, and foreign investment in facilities-based services is permitted up to a cumulative total of 46.7 percent (based on 20 percent direct investment and 33 and one-third percent indirect investment).  Such entities must be controlled in fact by Canadians and at least 80 percent of the board of directors must be Canadian.

Discriminatory Treatment/

MFN

Specific commitments in this area, including some limitations on national treatment both at federal and provincial levels, are set out in Canada's GATS Schedule. A detailed listing of market access exceptions is in Canada's GATS Schedule and in the Third Supplement to Canada’s GATS Schedule.

Operational Requirements

Operational requirements for radio and television broadcasting are determined by the Canadian Radio-television and Telecommunications Commission (CRTC).  For more information see http://www.crtc.gc.ca.

Licensing and Qualification Requirements of Service Providers

Service providers must meet the regulatory requirements established by the CRTC.   The government uses a variety of regulatory measures. For example, the Canadian Radio-television and Telecommunications Commission (CRTC) issues licenses to create space for Canadian cultural content in the radio and television broadcasting system and monitors performance to regulate and supervise the country's broadcasting system.  The CRTC sets requirements to ensure that the Canadian broadcasting system will carry Canadian cultural content.  These rules apply to the radio and television programming services that broadcast programs and to the distribution systems, (over-the-air television, cable television, direct-to-home (DTH) satellite, and MDS systems) that deliver broadcast services to the home. More information is available from the website of the CRTC (http://www.crtc.gc.ca).

Film and video distribution and exhibition is subject to provincial regulatory and licensing requirements. 

Foreign Entry

Canada has not undertaken commitments in the GATS for these services.  Canada reserves its right to adopt or maintain measures related to audio-visual services.

Discriminatory Treatment/

MFN

Canada has listed MFN exemptions under the GATS which provide for differential treatment of works of persons of countries with which Canada or Quebec may have co-production agreements or arrangements, as well as of natural persons engaged in such co-productions.

Operational Requirements

The federal government develops model national construction codes and establishes the parameters for federal environmental assessments. Provincial governments are responsible for provincial construction codes (based on the national model codes), labour standards, and environmental regulations. Municipalities set zoning requirements and are responsible for approving building applications, issuing building permits, and conducting building inspections.

Licensing and Qualification Requirements of Service Providers

Foreign Entry

Specific commitments in this area, including some limitations on national treatment both at federal and provincial levels, are set out in Canada's GATS Schedule. The only limitations on cross-border trade are related to construction activities undertaken from ships or particular provincial rules and regulations.  More detailed information is available from Canada’s GATS Schedule. NFL and Labrador have removed their deposit requirement making it easier for non-resident contractors to provide general construction work for buildings. ON has removed its incorporation and residency requirements for applicants and holders of a water power site development permits for General construction work for civil engineering.

Discriminatory Treatment/

MFN

No restrictions beyond those identified under the category “Foreign Entry”.  More detailed information is available from Canada’s GATS Schedule.

Operational Requirements

Distribution services are governed by the laws of the provinces and territories and may be subject to municipal zoning requirements.

Licensing and Qualification Requirements of Service Providers

Municipal zoning requirements govern the establishment of retail and wholesale distribution services.  The distribution of alcoholic products is licensed at the provincial level and the distribution of liquor, and in some provinces beer and wine, is reserved to the provincial governments.

Foreign Entry

Two restrictions have been removed by provincial governments: one residency requirement for direct sellers by Newfoundland and one by Nova Scotia regarding the marketing of fish products.   

Specific commitments in this area, including some limitations on national treatment both at federal and provincial levels, are set out in Canada's GATS Schedule. No limitations with the exception of a number of provincial measures relating to commercial presence, licensing, citizenship and indirect tax measures.  The distribution of alcohol, certain foods, and certain cultural products are not included in Canada’s GATS commitments.

Discriminatory Treatment/

MFN

None beyond those mentioned under the category “Foreign Entry”.

Operational Requirements

The responsibility for the regulation of education services in Canada lies with provincial governments.  More detailed information is available from the Council of Ministers of Education, Canada (http://www.cmec.ca).

Licensing and Qualification Requirements of Service Providers

The responsibility for the licensing of teachers lies with provincial governments. More detailed information is available from the Council of Ministers of Education, Canada (http://www.cmec.ca).

Foreign Entry

Canada has not undertaken specific commitments in the GATS for these services.  Canada reserves its right to adopt or maintain measures related to education services.

Discriminatory Treatment/

MFN

Canada has not undertaken specific commitments in the GATS for these services.  Canada reserves its right to adopt or maintain measures related to education services.

Operational Requirements

Regulations applicable to the environmental services sector exist at the federal, provincial, territorial and municipal levels.  The majority of Canadian regulations relate to the protection and conservation of Canada’s environment.  Municipalities also maintain some zoning requirements which restrict the location of waste disposal sites.

Licensing and Qualification Requirements of Service Providers

To achieve Canada’s environmental objectives a number of regulatory tools are used.  These regulatory tools are found at various levels of government and reflect the sharing of responsibility with respect to environmental matters.  Provincial and territorial authorities responsible for the environment are, for example, usually in charge of the application of legislation relating to solid waste.  Usually, anyone collecting, transporting, processing, storing, or disposing of garbage requires a provincial or territorial permit or licence.   Waste management regulations define and designate the different types of wastes and prescribe standards for the location, maintenance, and operation of waste disposal sites and waste management systems.

Foreign Entry

Canada has undertaken commitments in the GATS for the full range of environmental services classified under the WTO Services Sectoral Classification List (W/120) and corresponding United Nations Central Product Classification (UNCPC).  Commitments cover: 6.A Sewage services (CPC 9401); 6.B Refuse disposal services (CPC 9402); 6.C Sanitation and similar services (CPC 9403); and 6.D Other environmental services -- cleaning of exhaust gases, noise abatement services, nature and landscape protection services, and other environmental protection services not included elsewhere -- (CPC 9404, 9405, 9406, 9409).

Canada's schedule lists no limitations for Market Access, except for mode 4 of market access where the commitment is unbound, except as indicated in its horizontal commitments.

Discriminatory Treatment/

MFN

Specific commitments in this area are set out in Canada's GATS Schedule.  There are no limitations on National Treatment, except for mode 4 under National Treatment where the commitment is unbound, except as indicated in its horizontal commitments.

Canada has not taken any GATS MFN exemptions for the environmental services sector.

Operational Requirements

The Canadian regulatory regime for financial services is open and transparent with no federal-level restrictions on foreign ownership.

In Canada there are three classes of banks, based on size of equity, for the purposes of determining ownership restrictions: small (less than Can$1 billion), medium (Can$1billion-Can$5 billion) and large (greater than Can$5 billion).  Large banks must remain widely held (investor, whether Canadian or foreign, may own up to 20% of any class of voting shares and 30% of any class of non-voting shares). Medium size banks are allowed to be closely held, but must have a public float of 35% of voting shares. Small banks may be wholly owned by a single shareholder.

The widely held rule means that, in practice, control of a large Canadian bank cannot be acquired by a single entity. 

Life insurance and non-life businesses must be carried on in separate companies.  The ownership regime for demutalized  insurance firms is the same as for the banking sector.

Licensing and

Qualification Requirements of Service Providers

For information on federal licensing and qualification requirements of service providers, please refer to the web-sites for the Office of the Superintendent of Financial Institutions at:

http://www.osfi-bsif.gc.ca/eng
/how/index.asp and the Department of Finance at: http://www.fin.gc.ca

Foreign Entry

In June 2003, as part of the Government’s response to issues raised in a review of the public interest issues raised by bank mergers, the Government indicated that it is considering other key policy issues relating to the financial sector.  These include limitations on foreign bank branch retail deposit taking.  Specifically, the Government was seeking public input on the following questions:

“Is the restriction on foreign banks that choose to operate directly through a branch, rather than a Canadian subsidiary, from taking retail deposits a practical constraint and is it necessary on policy grounds? Should removal of such a condition be done unilaterally or should the Government seek to do it on a reciprocal basis only if other countries have similar rules?”

The government expects to announce soon any possible changes to its foreign bank branch deposit taking policy (as well as its policy on mergers).

The foreign bank entry framework offers regulated foreign banks considerable flexibility to provide financial services in Canada.  They may choose to do so through Canadian financial institutions (subsidiaries), regulated foreign bank branches, or unregulated financial services entities.  As well, a foreign bank may establish more than one bank or more than one branch in Canada.  They are allowed to own both wholesale and retail banks and full-service and lending branches.  As well, foreign banks are permitted to own the same range of investments as Canadian banks.

Ministerial approval is required on entry and additional approvals are only required to the same extent they are required for Canadian banks.

The test for determining how a foreign bank is regulated is set out in federal legislation (the Bank Act,). In broad terms, the Act creates three categories of foreign banks.  The first of these is  knownis known as a “near bank”, meaning an entity that falls within the definition of a foreign bank for the purposes of the Bank Act but would not otherwise be considered a regulated bank.  Regarding regulated banks, there are two types: The first is a regulated foreign bank that wishes to carry on commercial activities in Canada.  The second is a regulated foreign bank that wishes to offer financial services in Canada.  Different rules of conduct are provided for each category of foreign bank within the Bank Act.

The foreign bank branching legislation and its related regulations came into force in June 1999.  The foreign bank branching rules do not affect the conditions of operation of a foreign bank subsidiary.  Foreign banks are permitted to establish a bank branch under the Bank Act provided that the foreign bank is sufficiently regulated in its home jurisdiction (i.e., an authorized foreign bank).  The branching regime permits foreign banks to directly undertake lending activities in Canada without establishing a fully-capitalized subsidiary.

Specifically, the rules state that an authorised foreign bank can establish two types of bank branches: (1) a full-service bank branch which cannot accept deposits in amounts less than $150,000 and payable in Canada unless the sum of all deposits below $150,000 amounts to less than one percent of total deposits payable in Canada or the deposits are taken from a sophisticated investor (e.g., Canadian federal or provincial governments, foreign governments, international development banks, financial institutions, certain pension and mutual funds and large businesses); or (2) a lending bank branch which may not take any deposits.  A lending bank branch can only borrow money from financial institutions.  Because of these restrictions, we have been able to  minimize the level of regulation imposed on foreign bank branches.

The branching rules are set out under the title of Authorized Foreign Banks in Part XII.1 of the Bank Act.  They are supplemented by regulations and guidelines developed by the Office of the Superintendent of Financial Institutions (OSFI), which can be found on its website (http://www.osfi-bsif.gc.ca).

In the case of both life and non-life insurance services, foreign companies may establish as a subsidiary, a branch, or acquire an existing Canadian enterprise subject to certain restrictions.

A foreign property and casualty insurance company must have assets of at least Can$200 million, with a minimum capital and surplus margin of 20% of assets.  A foreign life insurance company must have assets of Can$1 billion and minimum capital and an appropriate surplus margin of between 5% and 10% of liabilities.  Furthermore, a foreign insurance company wishing to insure risk in Canada must maintain assets vested in trust in a Canadian financial institution.  The applicant must vest in trust assets having a prescribed value as set out in regulations and such other amounts as may be required by OSFI for prudential reasons.  These other amounts are determined on a case-by-case basis.

Discriminatory Treatment/

MFN

For a detailed list of market access and national treatment exceptions, including those at the sub-federal level, please refer to Canada's GATS Schedule for Financial Services.  Restrictions to MFN can be found in Canada’s List of Article II (MFN) Exceptions for Financial Services.

Operational Requirements

Provincial and territorial governments have primary responsibility for the delivery of Canada's health care, hospital services and social services. More detailed information is available from provincial and territorial health ministries.

Licensing and Qualification Requirements of Service Providers

The responsibility for the licensing of doctors and other health professions lies with provincial governments. More detailed information is available from provincial and territorial health ministries.

Foreign Entry

Canada has not undertaken specific commitments in the GATS for these services.  Canada reserves its right to adopt and to maintain measures related to health services.

Discriminatory Treatment/

MFN

Canada has not undertaken specific commitments in the GATS for these services.  Canada reserves its right to adopt and to maintain measures related to health services.

Operational Requirements

Tour and hotel operators and travel agents are generally regulated under provincial legislation.

Licensing and Qualification Requirements of Service Providers

Licensing of certain activities of travel agents, hotel operators and tour operators are subject to provincial regulations.

Foreign Entry

Specific commitments in this area are set out in Canada's GATS Schedule. Canada has made commitments on most tourism services. Some provincial measures apply with respect to sales of alcoholic beverages and there are some residency and commercial presence requirements.

Discriminatory Treatment/

MFN

Elimination of Ontario restriction on board of directors regarding the sale of alcoholic beverage

Elimination of Quebec Residencyrequirements ontravel agencies and travel counselors

There are some residency requirements in certain provinces that pertain to purchase of residential property (Ontario), sale of alcoholic beverages (Alberta, Newfoundland and Labrador, Saskatchewan, Nova Scotia, and Manitoba) and travel agents, counselors or wholesalers (Ontario, British Columbia). See Canada's GATS Schedule for more details. 

Operational Requirements

Government support of cultural services in Canada takes the form of direct funding and tax and investment measures, coupled with regulatory measures.  Canada's current policies, which are intended to encourage the creation, production and distribution of Canadian cultural products in the Canadian marketplace, can be grouped into the following categories:       

1.Financial and program incentives

2.Canadian content requirements and other regulatory support mechanisms

3.Tax measures

4.Foreign investment and ownership

5.Measures to protect intellectual property

Licensing and Qualification Requirements of Service Providers

Canada has not undertaken commitments in the GATS for these services.  Canada reserves its right to adopt or maintain measures related to recreational, cultural and sporting services.     

Foreign Entry

Canada has not undertaken commitments in the GATS for these services.  Canada reserves its right to adopt or maintain measures related to recreational, cultural and sporting services.   

Discriminatory Treatment/

MFN

Canada has not undertaken national treatment commitments in the GATS for these services.  Canada has not taken a GATS MFN exemption related to these services. Canada reserves its right to adopt or maintain measures related to recreational, cultural and sporting services.