WT/REG419/1  
 
12 April 2022 
(22-2787) Page: 1/76 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
AGREEMENT ON TRADE CONTINUITY BETWEEN THE UNITED KINGDOM AND CANADA,  
GOODS AND SERVICES.  
Report by the Secretariat  
This report, prepared for the consideration of  Agreement on Trade Continuity between 
the United Kingdom and Canada,  has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology u sed in the Agreement and in the 
comments provided and does not imply official endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transpa rency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to  Jean-Daniel Rey 
(tel: +41 22 739 5264) and Alena Bulatnikova (tel: +41 22 739 6405). Any statistical 
questions arising from this report may be addressed to Rowena Cabos (tel: +41 22 739 
5189) and Thakur Parajuli (tel: +41 22 739 5473).  
  WT/REG419/1  
 
- 2 - 
 
  Table o f Contents  
 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 5 
1.2   Trade in services and investment  ................................ ................................ .................  7 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  12 
2.1   Background information  ................................ ................................ ............................  12 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  17 
3.1   Import duties and charges, and quantitative restrictions  ................................ ................  18 
3.1.1   General provisions  ................................ ................................ ................................ . 18 
3.2   Liberalization of trade and tariff lines  ................................ ................................ ...........  19 
3.2.1   Liberalization schedule ................................ ................................ ............................  19 
 The United Kingdom  ................................ ................................ ............................  20 
 Canada  ................................ ................................ ................................ ..............  23 
3.2.2   Tariff rate quotas  ................................ ................................ ................................ ... 25 
3.3   Rules of origin  ................................ ................................ ................................ ..........  26 
3.4   Export duties and charges, and quantitative restrictions  ................................ .................  29 
3.5   Regulatory provisions on trade in goods  ................................ ................................ ....... 29 
3.5.1   Standards  ................................ ................................ ................................ .............  29 
 Sanitary and phytosanitary measures  ................................ ................................ .... 29 
 Technical barriers to trade  ................................ ................................ ....................  31 
3.5.2   Safeguard mechanisms  ................................ ................................ ...........................  32 
 Global safeguards  ................................ ................................ ...............................  32 
 Bilateral safeguards  ................................ ................................ .............................  33 
 Specific safeguards for agriculture  ................................ ................................ .........  33 
 Balance -of-payments safeguards  ................................ ................................ ...........  33 
3.5.3   Anti-dumping and countervailing measures  ................................ ...............................  33 
3.5.4   Subsidies and state -aid ................................ ................................ ...........................  33 
3.5.5   Customs -related procedures  ................................ ................................ ....................  34 
3.5.6   Other regulations  ................................ ................................ ................................ ... 34 
3.6   Sector -specific provisions on trade in goods  ................................ ................................ . 34 
3.6.1   Pharmaceutical products  ................................ ................................ .........................  34 
3.6.2   Fisheries and aquaculture products  ................................ ................................ ...........  35 
3.6.3   Motor vehicles  ................................ ................................ ................................ ....... 35 
4   PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  ................................ .........  35 
4.1   Scope and definitions  ................................ ................................ ................................  37 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 38 
4.3   General provisions on trade in services and investment  ................................ ..................  38 
4.3.1   Market access  ................................ ................................ ................................ ....... 38 
4.3.2   National and MFN treatment  ................................ ................................ ....................  39 
4.3.3   Commercial (local) presence ................................ ................................ ....................  40 WT/REG419/1  
 
- 3 - 
 
  4.3.4   Performance requirements  ................................ ................................ ......................  40 
4.3.5   Senior Managers and Boards of Directors  ................................ ................................ .. 40 
4.3.6   Movement of natural persons  ................................ ................................ ..................  40 
4.4   Liberalization commitments  ................................ ................................ ........................  42 
4.4.1   Canada  ................................ ................................ ................................ ................  43 
 MFN and horizontal commitments  ................................ ................................ ..........  43 
 Sector specific commitments  ................................ ................................ ................  43 
4.4.2   The United Kingdom  ................................ ................................ ...............................  45 
 MFN and horizontal commitm ents ................................ ................................ ..........  45 
 Sector specific commitments  ................................ ................................ ................  46 
4.5   Regulatory provisions  ................................ ................................ ................................  50 
4.5.1   Domestic regulation  ................................ ................................ ...............................  50 
4.5.2   Recognition and temporary licensing  ................................ ................................ .........  50 
4.5.3   Subsidies  ................................ ................................ ................................ ..............  51 
4.5.4   Safeguards  ................................ ................................ ................................ ...........  51 
4.5.5   Other  ................................ ................................ ................................ ...................  51 
 Investment  ................................ ................................ ................................ ........  51 
4.5.6   Sector specific provisions on trade in services  ................................ ............................  53 
 Communication services  ................................ ................................ .......................  53 
 Financial services  ................................ ................................ ................................  53 
 International maritime transport services  ................................ ...............................  54 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  54 
5.1   Transparency  ................................ ................................ ................................ ...........  54 
5.2   Current payments and capital movements  ................................ ................................ .... 54 
5.3   Exceptions  ................................ ................................ ................................ ...............  55 
5.3.1   General exceptions  ................................ ................................ ................................  55 
5.3.2   Security exceptions  ................................ ................................ ................................  55 
5.3.3   Taxation  ................................ ................................ ................................ ...............  55 
5.4   Accession and withdrawal  ................................ ................................ ..........................  55 
5.5   Institutional framework  ................................ ................................ .............................  55 
5.6   Dispute settlement  ................................ ................................ ................................ ... 56 
5.7   Relationship with other agreements concluded by the part ies ................................ ..........  57 
5.8   Government procurement  ................................ ................................ ..........................  59 
5.9   Intellectual property rights  ................................ ................................ .........................  61 
5.10   Competition policy, State enterprises, monopolies and enterprises granted special rights or  
privileges  ................................ ................................ ................................ ........................  62 
5.11   Labour and environment  ................................ ................................ ..........................  63 
5.12   Electronic commerce  ................................ ................................ ...............................  64 
5.13   Small and medium -sized enterprises  ................................ ................................ .........  65 
5.14   Other  ................................ ................................ ................................ ....................  65 
5.14.1    Regulatory cooperation  ................................ ................................ .........................  65 WT/REG419/1  
 
- 4 - 
 
  5.14.2    Bilateral dialogues and cooperation  ................................ ................................ .........  66 
5.14.3    Preferences for Canada's Aboriginal Peoples  ................................ .............................  66 
ANNEX 1  ................................ ................................ ................................ ........................  67 
ANNEX 2  ................................ ................................ ................................ ........................  72 
ANNEX 3  ................................ ................................ ................................ ........................  74 
 
  WT/REG419/1  
 
- 5 - 
 
   
Key Facts  
 
Parties to the Agreement:  The United Kingdom and Canada  
 
Date of Signature:    22 December 2020  
 
Date of Entry into Force:  01 January 2021  (provisional 
application of a Memorandum of 
Understanding on trade in goods)  
01 April 2021  
 
Date of Notification :  31 December 2020 (goods)  
     29 June 2021 (services)  
 
Full implementation:   1 January 2024  
 
 
 
 The Factual Presentation describes the Agreement on Trade Continuity between the United 
Kingdom and Canada (hereinafter referred to as "the Agreement"), which was concluded by the 
Parties and entered into force on 1 April 2021. As the Agreement preserves most of the commitments  
between the Parties established under the Comprehensive Economic and Trade Agreement between 
Canada and the European Union  (hereinafter referred to as "CETA")  that provisionally entered into 
force on 21 Sep tember 2017. The factual presentation  therefore  also refers, like the Agreement, to 
the CETA.1 
 
1  TRADE ENVIRONMENT  
1.1  Merchandise trade  
1.1.  In 2020, the UK's merchandise exports amounted to USD 403.9 billion and its merchandise 
imports to USD 632.6 billion. In the same year, Canada's merchandise exports amounted to USD 
389 billion and its merchandise imports to USD 405 billion, below its 2018 levels.2 Both countries 
recorded a drop in their merchandise trade in 2020 related in part to the COVID -19 pandemic. 
According to the same data sources, the UK was Canada's 8th largest source of imports (1.44% of 
Canada's total imports) and 4th largest destination for exports (3.82% of Canada's total exports)3, 
while Canada was the UK's 6th largest source of im ports (2.49%) and 7th largest export destination 
(1.87%).4 
1.2.  In international comparison s, and based on 20 20 trade data5, the UK was the 12th largest 
exporter and the 5th largest importer of merchandise in the world6 (respectively 2. 30% of world 
total exp orts and 3. 56% of world total imports). In comparison, Canada was the 9th largest global 
exporter and the 8th largest global importer of merchandise (respectively 2. 22% of world total 
exports and 2. 32% of world total imports).7 Both Parties' trade was dominated by manufactured 
products which made up 71.6% and 6 6.1% of the UK's merchandise exports and imports 
respectively, and 47. 7% and 7 7% of exports and imports respectively for Canada.  
 
1 In this report, the terms "CETA" refers to Comprehensive Economic and Trade Agreement between 
Canada and the European Union and its member States signed on 30 October 2016. Canada had ratified the 
CETA on 16 May 2017, but all EU Member States have not yet  ratified it. Thus, most of the CETA started to be 
provisionally implemented on 21 September 2017 and will be fully implemented once all EU Member States will 
have ratified it according to their respective constitutional requirements.  
2 Based on data from the Parties (for the UK) and from UNSD Comtrade database (for Canada).  
3 Data from UNSD Comtrade database  excluding intra -EU trade . 
4 Data provided by the UK excluding intra -EU trade.  
5 Data extracted from the WTO Trade Profiles 2021, as of December 2021, using 2020 reported data.  
6 Including trade within EU.  
7 Ranks in world trade and shares in world trade are based on WTO Trade Profiles (2021).  WT/REG419/1  
 
- 6 - 
 
  1.3.  Chart 1.1 summarizes the trends in global trade of the Parties as well as their bilateral trade 
relations for the period 2018 -2020. From 2018 to 2020, the UK's global trade deficit deepened (from 
USD 185.8 billion in 2018 and USD 227 billion in 2019 to USD 228.7 billion in 2020).8 During the 
same  period, Canada's global trade deficit remained relatively stable though with some degree of 
fluctuation, from USD 9.6 billion in 2018 to USD 7.3 billion in 2019 and to USD 15.9 billion in 2020. 
At the bilateral level, data show a positive balance in favou r of Canada for the entire period.  
Chart 1.1 United Kingdom - Canada: Merchandise bilateral trade and with world (2018 -
2020)  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
 
1.4.  The c ommodity structure of trade between the UK and Canada, as well as both Parties' global 
trade in the period 2018 -2020, are shown in Chart 1.2 on the basis of Harmonized System (HS) 
sections, using the same statistics as in the previous Chart.9 Precious met als (in particular non -
monetary gold) account for more than half of the UK's imports from Canada (corresponding to 68.2% 
of the UK's imports from Canada), while machinery and mechanical appliances constitute the second 
largest category of UK's imports from  Canada (corresponding to only 7.1%% of the UK's total import 
from Canada). These two categories of commodities corresponded to, respectively, 4.7% and 10.6% 
of Canada's exports to the world and to, respectively,  11.9% and 21.2% of the UK's global imports.  
The three commodities most imported by Canada from the UK were vehicles, including aircrafts and 
vessels; machinery and mechanical appliances; and chemicals, representing respectively 26.3%, 
22.9%, and 13.8% of Canada's imports from its partner. The same commodities corresponded to, 
respectively, 14.8%, 21.3%, and 13.8% of the UK's global exports, and to, respectively, 18.1%, 
24.9%, and 9.3% of Canada's total imports from the world.  
 
8 Based on data from the UK. It should be noted that 2018 was an outlier with exceptionally high trade.  
9 The n ational statistics of the Parties may slightly differ from the, also official, sources systematically 
used in the preparation of factual presentations.  
05101520253035404550
0100200300400500600700800
2018 2019 2020B. Canada
(USD B illions)
Imports from United Kingdom (Right Axis)
Exports to United Kingdom (Right Axis)
Total Imports
Total Exports
05101520253035404550
0100200300400500600700800
2018 2019 2020A. United Kingdom
(USD Billions)
Imports from Canada (Right Axis)
Exports to Canada (Right Axis)
Total Imports
Total ExportsWT/REG419/1  
 
- 7 - 
 
  Chart 1.2 United Kingdom - Canada: product composition of merchandise trade, by HS 
Section, annual average (2018 -2020)  
 
Source:  Based on data provided by the Parties and UNSD, Comtrade database.  
 
1.2  Trade in services and investment  
1.5.  In 2019, the UK was ranked the world's 2nd largest exporter and 5th largest importer of 
commercial services, while Canada was the world's 18th largest exporter and 14th largest importer .10 
The UK's share in commercial services trade corresponded to 6.79% of world exports (valued at 
USD 411 794 million) and 4.87% of world imports (valued at US D 279 184 million). In comparison, 
Canada's corresponding shares were 1.63% of world exports (valued  at US D 99 057 million) and 
1.99% of world imports (valued at US D 114 093 million).  
1.6.  Charts 1.3 and 1.4 below show global trade in commercial services for the UK and Canada 
(based on the period 2017 -2019 as reported by the Parties). For the UK, the data de pict an overall 
surplus in global trade in commercial services with the world with other business services, travel, 
transport and financial services leading both imports and exports. In contrast, for Canada the data 
show an overall deficit in global trade in commercial services with the world for the same period with 
travel, transport and other business services leading both imports and exports.  
 
10 WTO Trade Profiles (2020).  
687618UK's imports from Canada (%)
21
12
12
9855522UK's Global Imports (%)
23
16
11
775527Canada's Global Exports (%)
26
23
1486519Canada's imports from UK (%)
25
18
9865424Canada's Global Imports (%)21
15
14109527UK's Global Exports (%)
Total: USD 16 billion Total: USD 667 billion
Total: USD 440 billionTotal: USD 453 billion
Total:  USD 429 billionTotal: USD 7 billion
MineralsPrepared foodsVegetables
TextilesPlasticsChemicals
MachineryBase metalsPrecious stones
OtherVehiclesWT/REG419/1  
 
- 8 - 
 
  Chart 1.3 United Kingdom: Trade in commercial services data with w orld, 2017 -2019  
  
Note:  Exchange rate GBP per USD are: 0.78 (2017), 0.75 (2018) and 0.78 (2019) . 
Source:  UK authorities.  
Chart 1.4 Canada: Trade in commercial services data with world, 2017 -2019  
 
Note:  Exchange rate Canadian dollar per USD are: 1.30 (2017), 1.30 (2018) and 1.33 (2019) . 
Source:  Canadian authorities.  
WT/REG419/1  
 
- 9 - 
 
  1.7.  Charts 1.5 and 1.6 show bilateral trade in commercial services between the Parties for the 
period 2017 - 2019. The UK was a net exporter of c ommercial services to Canada with i nsurance 
and pension services , other business services , travel and financial services leading exports. In 2019, 
imports from Canada were mainly represented by c harges for the use of intellectual property n.i.e. , 
other bus iness services  and travel. Chart 1.611 depicts bilateral trade in commercial services as 
reported by Canada . In the same period, Canada was a net importer of commercial services from 
the UK with transport, o ther business services , travel and financial services dominating  imports from 
the UK. In 2019, exports to the UK were represented largely by financial services, travel and 
transport.  
Chart 1.5 United Kingdom: Trade in commercial services data with Canada, 2017 -2019  
 
Note:  Some figures are suppressed for confidentiality and were recorded as N/A and are therefore not 
 included in the chart for the following categories:  
 Bilateral export: Manufacturing services on physical inputs owned by others  and Construction (2018 -
2019)  
 Bilateral import: Maintenance and repair services n.i.e. (2017 -2019); Construction (2017 -2018); 
Charges for the use of intellectual property n.i.e. and Personal, cultural, and recreational 
services(2018); Telecommunications, computer, and information services and Other business 
services (2017).  
 Exchange rate GBP per USD are: 0.78 (2017), 0.75 (2018) and 0.78 (2019).  
Source:  UK authorities.  
 
11 The national statistics of the Parties may slightly differ from the, als o official, sources systematically 
used in the preparation of factual presentations . 
WT/REG419/1  
 
- 10 - 
 
  Chart 1.6 Canada: Trade in commercial services data with the United Kingdom, 2017 -
2019  
 
Note:  Exchange rate Canadian dollar per USD are: 1.30 (2017), 1.30 (2018) and 1.33 (2019).  
Source:  Canadian authorities.  
1.8.  Charts 1.7 and 1.8 below depict the Parties global and bilateral foreign direct investment stocks 
and flows during 2017 -2019.  While  data on FDI stocks for the UK with the world depicts  a net 
surplus, the opposite picture – with a net deficit – is show n for the evolution of Canada's  FDI stocks 
with the world.  
1.9.  The UK 's FDI flows fluctuated between 2017 -2019 and turned negative in 201 8, making it a 
net recipient of FDI flows in 2018 and 2019. For Canada, the data show a net deficit in FDI flows 
with steady growth in inward FDI flows up to  2019 while outward FDI flows decre ased sharply in 
2018 followed by a recovery in 2019. Over the surveyed period, Canada was a net foreign direct 
investor in the UK. In comparison, data provided by the UK suggest that Canada was a net source 
of FDI flows and a net recipient of UK FDI stocks .12  
 
12 The national statistics of the Parties may slightly differ from the, also official, sources systematically 
used in the preparation of factual presentations . 
WT/REG419/1  
 
- 11 - 
 
  Chart 1.7 The United Kingdom: FDI stock and flow with the world and Canada, 2017 -
2019  
 
Note:  Exchange rate GBP per USD are: 0.78 (2017), 0.75 (2018) and 0.78 (2019) . 
Source:  UK authorities.  FDI presented on a directional basis.  
WT/REG419/1  
 
- 12 - 
 
  Chart 1.8 Canada: FDI stock and flow with the world and the UK, 2017 -20 
 
Note:  Exchange rate Canadian dollar per USD are: 1.30 (2017), 1.30 (2018) and 1.33 (2019).  
Source:  Canadian authorities.  
2  CHARACTERISTIC  ELEMENTS OF THE AGREEMENT  
2.1  Background  information  
2.1.  UK-Canada trade relations were previously governed by the Comprehensive Economic and 
Trade Agreement between Canada and the European Union (the "CETA"), which has been  
provisionally applied since 21 September 2017. The CETA ceased to apply to the UK as of 1 January  
2021.13 
2.2.  The Agreement on Trade Continuity between the United Kingdom of Great Britain and Northern 
Ireland and Canada (hereinafter referred to as "the Agreement", and also sometimes referred to as 
TCA) is one of the UK's 37, and Canada's 15 RTAs.14 It was signed on 22 December 2020. The 
Agreement was initially notified to the WTO on 31 December 2020 under Article XXIV:7(a) of the 
GATT 1994 and its Unders tanding .15 Pending completion of domestic procedures for entry into force 
of the Agreement, the Parties agreed to provisionally implement preferential trading in respect of 
trade in goods as of 1 January 2021 through a Memorandum of Understanding. A subsequent 
notification was made on 29 June 2021, under Article XXIV:7(a) of the GATT 1994 and its 
 
13 For more i nformation on the CETA, readers may refer to the WTO documents series WT/REG 389. 
14 RTAs in goods and services counted as one and only agreements in force, notified to the WTO as of 
21 September 2021.  
15 see document WT/REG4 19/N/1. 
WT/REG419/1  
 
- 13 - 
 
  Understanding and under Article V:7(a) of GATS, confirming that, following completion of domestic 
procedures in both Parties, the Agreement had entered into force on 1 April  2021.16 
2.3.  The text of the Agreement, together with its annexes, is available on the Parties' official 
websites:  
Canada:  https://www.international.gc.ca/trade -commerce/trade -agreements -accords -
commerciaux/agr -acc/cuktca -acccru/read_agreement -consultez_accord.aspx?lang=eng  
 
The UK :  https://www.gov.uk/government/collections/uk -canada -trade -continuity -agreement  
 
2.4.  The Agreement contains only seven  Articles  and two Annexes . It, nevertheless, incorporates 
by reference, in Article  I, most of the provisions of  the CETA (referred to, in this report, as "the 
incorporated Agreement"17). Modifications to the content of the incorporated CETA are contained in 
Annexes A and B to the Agreement. The Agreement is also complemented by an exchange of letters 
in which Canad a agrees to allow the UK to continue to be eligible under the EU reserve of Canada's 
WTO cheese tariff rate quota (TRQ) for no longer than three years ; a Joint interpretative instrument 
on the Agreement, and Joint Declarations relating to WTO negotiations and on wines and spirits. 
Boxes 2.1 and 2.2 below summarize the structure of the Agreement and the structure of the 
incorporated Agreements (CETA, Protocols and related instruments ).  
Box 2.1 Structure of the Agreement  
Articles of the UK -Canada 
Agreement (TCA)  Title/description  
Preamble   
Article I Incorporation of the CETA  
Article II Further provision in relation to the Canada -UK Joint Committee  
Article III Retained Law  
Article IV Subsequent Negotiations  
Article V Review of procedures for the resolution of investment disputes between 
investors and states  
Article VI  Integral parts of the Agreement  
Article VII  Entry into force and provisional application  
  
Annex A  Part A – General modifications  
 Part B – Chapter -specific modifications  
 Part C – Modifications to the agreements incorporated by reference pursuant 
to paragraph 30.8.3 and modification to Annex 30 -B 
• Modifications to the 1989 Alcoholic Beverages Agreement  
• Modifications to the 2003 Wines and Spirit Drinks Agreement  
• Modification to Annex 30 -B 
  
Annex B  Modifications to Annexes 2 -A and 2 -B of the CETA (tariff elimination and 
tariff rate quotas)  
  
Other instruments  Canada's WTO Cheese TRQ  – UK transitional access to the European Union 
reserve  until no later than 31 December 2023  (exchange of letters)  
 
16 see document WT/REG4 19/N/1/Add.1.  
17 In this report, the term "incorporated" may be used with reference to an Article of the CETA. For 
instance, "the incorporated Article 30.6" refers to Article 30.6 of the CETA, which has been incorporated into 
the Agreement under Article I of the Agreement.  WT/REG419/1  
 
- 14 - 
 
  Articles of the UK -Canada 
Agreement (TCA)  Title/description  
 
Joint interpretative instrument on the Agree ment on trade continuity 
between the United Kingdom of Great Britain and Norther Ireland and 
Canada 
 Joint Declaration on WTO negotiations, Joint Declaration on outlets (attached 
to the Final Act of the Agreement between the European Community and 
Canada on trade in wines and spirit drinks), subject to certain modifications  
Source:  WTO Secretariat based on the Agreement.  
Box 2.2 Structure of the Incorporated Agreement  (CETA)  
Chapters of CETA  Title/description  CETA Provisions modified 
through Annexes A and B 
to the Agreement  
Preamble    
Chapter 1  General definitions and initial provisions  Editorial : Art. 1.1, 1.2, 1.3  
Chapter 2  National treatment and market access for 
goods  Editorial : Art. 2.1, 2.3.2, 
2.5.3, 2.10.2, 2.10.4, 
2.11.4(b), 2.13.3,  
Deletion : 2.13.4  
Note: Annexes 2 -A and 2 -B 
modified through Annex B to 
the Agreement (which 
replaces Annexes 2 -A and 2 -B 
of the CETA).  
Chapter 3  Trade remedies  None 
Chapter 4  Technical barriers to trade  None 
Chapter 5  Sanitary and phytosanitary measures  Editorial :5.5.2(a), 5.14.2(d), 
5.14.7, 5.14.9  
Annex 5 -A para.1  
Annex 5 -E Table in Section A   
Annex 5 -I para. 4(a) and 6  
Deletion : 5.1.1(e),  
 
Chapter 6  Customs and trade facilitation  Adjustment : Art. 6.1 3.3 and 
6.13.4  
Replacement : Art. 6.14 (role 
of CCTF Committee)  
Chapter 7  Subsidies  None 
Chapter 8  Investment  Editorial : Art. 8.1, 8.2.1, 
8.6.3, 8.7.2, 8.9.4, 8.19.2, 
8.19.2(a) through (c), 8.19.8, 
8.22.1(b), 8.36.2, 8.37.2, 
8.38.1(a)  
Deletion : Art. 8.15.1(a)(i), 
8.19.7, 8.21, 8.2 2.1(c),  
Replacement: Art. 8.2.5 
(agreement governing air 
services)  
Non-application : Art. 8.18 
through 8.43, 8.44.2, 8.44.3 
(ISDS procedure subject to 
review)  
Chapter 9  Cross -border trade in services  Editorial : 9.3.2, 9.5.2   
Annex 9 -A: para. 1, 2(b), 3 , 4 
Annex 9 -C: para.2  
Deletion : 9.7.1(a)(i)  
Replacement : Art. 9.2.3 (air 
transport agreement)  WT/REG419/1  
 
- 15 - 
 
  Chapters of CETA  Title/description  CETA Provisions modified 
through Annexes A and B 
to the Agreement  
Chapter 10  Temporary entry and stay of natural 
persons for business purposes  Editorial: Annex 10 -B, Annex 
10-E, Annex 10 -F 
Replacement : Art. 10.5.1(a), 
10.5.1(b), 10.5.1(c), 10.5.2, 
10.7.5(d), 10.9.3  
Deletion : Annex 10 -A 
Chapter 11  Mutual recognition of professional 
qualifications  Deletion : Art. 11.2.2  
Replacement : Art. 11.1  
Chapter 12  Domestic regulation  None 
Chapter 13  Financial services  Editorial: Annex 13 -A 
Deletion : Art. 13.10.1(a)(i), 
13.10.2(a)(i)  
Replacement : Art. 13.18.1, 
13.19.2  
Chapter 14  International maritime transport services  Editorial : Art. 14.1, 14.4.4(a)  
Deletion : Art. 14.4.1(a)(i)  
Chapter 15  Telecommunications  None 
Chapter 16  Electronic commerce  None 
Chapter 17  Competition policy  Adjustment : Art. 17.2.3 
(reference to EU -Canada 
agreement on competition 
laws deleted)  
Chapter 18  State enterprises, monopolies, and 
enterprises granted special rights or 
privileges  None 
Chapter 19  Government procurement  Editorial  and adjustment : Art. 
19.6.2, 19.17.8  
Annex 19 -1 (Canada),  
Annex 19 -4 (Canada),  
Annex 19 -1 (UK),  
Annex 19 -2 (UK),  
Annex 19 -3 (UK),  
Annex 19 -4 (UK),  
Annex 19 -7 (UK),  
Annex 19-8 (UK) 
Adjustment : Art. 19.4.1(b) 
(inclusion of sub -central 
region procuring entities)  
Chapter 20  Intellectual property  Editorial : Art. 20.21, 20.22.2,  
Deletion : Annex 20 -A (all 
entries listed in Part A),  
Annex 20 -B 
Chapter 21  Regulatory cooperation  Editorial :  
Deletion : Art. 21.2.5  
Replacement : Art. 21.7.4, 
21.9.1(b)  
Chapter 22  Trade and sustainable development  None  
Chapter 23  Trade and labour  None  
Chapter 24  Trade and environment  None  
Chapter 25  Bilateral dialogues and cooperation  Editorial : Art. 25.2.1(d)  
Replacement : Art. 25.1.1(a), 
25.2 (dialogue on agricultural 
biotech market access 
issues), 25.2.1, 25.5.3 (MoU 
concerning Science, 
Technology and Innovation)  WT/REG419/1  
 
- 16 - 
 
  Chapters of CETA  Title/description  CETA Provisions modified 
through Annexes A and B 
to the Agreement  
Chapter 26  Administrative and institutional provisions  Editorial : Art. 26.1.1, 26.2.1, 
26.2.1(h), 26.2.1(i)  
Deletion :  
Replacement : 26.2.2, 
26.2.1(c), 26.2.1(j)  
Chapter 27  Transparency  None  
Chapter 28  Exceptions  Editorial : Art. 28.3.1, 28.5, 
28.7.7(d)  
Deletion : Art. 28.4  
Replacement : Art. 28.2,  
Chapter 29  Dispute settlement  Editorial : Annex 29 -A  
Chapter 30  Final provisions  Editorial : Art. 30.2.2,  
Deletion : Art. 30.7, 30.8.1, 
30.8.2, 30.8.5, 30.8.6, 
30.8.7, 30.10, 30.11,  
Annex 30 -D 
Replacement : Art. 30.9.1,  
 
  Note: Modifications to the 
incorporated  CETA by 
reference pursuant to 
paragraph 30.8.3, as  
amended by Annex 30 -B, and 
modifications to Annex 30 -B, 
are set out in Part C of Annex  
A to the Agreement . 
Protocol  on rules of origin and origin procedures  Editorial : Art. 7.2, 28.2,  
Adjustment : Art. 1, 3.3. 3.4, 
4.1(h), Art. 34,  
Annex 2 ,  
Annex 4 ,  
Annex 5 ,  
Annex 5 -A (including Section 
A, Agriculture),  
Annex 7  
Replacement : Art. 3.2 
(transitional mechanism), 
4.2(a)(ii) through 4.2(b)(ii), 
Art. 19.1(a), 29.13 and 29.15 
(Committee on Rules of origin 
and o rigin procedures)  
Protocol  On the mutual acceptance of the results of 
conformity assessment  Adjustment : Art. 1, 2.5Uf), 
3.1(b)(ii), 3.3, 5.1, 5.2(a), 
5.3, 5.4, 16  
Protocol  On the mutual recognition of the 
compliance and enforcement programme 
regarding good manufacturing practices for 
pharmaceutical products  Adjustment : Art. 12.6,  
CETA investment and 
services Annexes  Annex I  – Reservations for existing 
measures and liberalisation commitments  
 
 
 
Annex II – Reservations for future measures  Adjustment :  
Annex I : headnote, 
reservations applicable in the 
UK, as well as in Canada  
Reservations applicable  
Annex II : headnote, 
reservation applicable in the 
UK, as well as in Canada  WT/REG419/1  
 
- 17 - 
 
  Chapters of CETA  Title/description  CETA Provisions modified 
through Annexes A and B 
to the Agreement  
Joint Interpretative 
Instrument on the 
comprehensive economic 
and trade agreement 
(CETA)   Replaced  by the " Joint 
interpretative instrument on 
the Agree ment on trade 
continuity between the United 
Kingdom of Great Britain and 
Norther Ireland and Canada"  
Source:  WTO Secretariat based on the CETA Agreements.  
2.5.  In the Preamble  of the Agreement, the Parties reaffirm their desire to continue to apply 
between them the rights and obligations as provided for by the CETA.  
2.6.  Article I incorporates the provisions of the CETA by reference .18 This is subject to the 
modifications provided for in Annexes A and B to the Agreement. In the event of any inconsistency 
between Articles I through VII and the provisions of the CETA, as incorporated, Articles I through 
VII shall prevail to the extent of the inconsistency (Article I).  
2.7.  While Article II clarifies the oversight and decision -making role of the Canada -UK Joint 
Committee, which is established under the incorporated Article 26.1, Article III defines how EU law, 
when incorporated into UK domestic law, may apply in trade relations between the Parties.  
2.8.  Under Article IV, the Parties agree to commence negotiations on a new Canada -UK free trade 
agreement no later than one year after the date of entry into force of the Agreement. They also 
commit to str ive to conclude these negotiations within three years of the entry into force of the 
Agreement .  
2.9.  Article V addresses a review of procedures for the resolution of investment disputes between 
investors and states .19 
2.10.  Article VI sets out the integral parts of the Agreement and Article VII sets out arrangements 
for entry into force and provisional application.  
2.11.  With respect to territorial application, the Agreement applies, in respect of the UK, to the 
United Kingdom, Gibraltar, the Channel Islands and the Isle of Man.  
2.12.  The incorporated Article 30.6 clarifies the relationship between the Agreement and private 
rights. In particular, the Agreement shall n either  confer any right nor impose any obligation on 
persons other than the rights and obligations created between the Parties under public international 
law. The Agreement shall not be directly invocable in the dom estic legal systems of any of the 
Parties. Moreover, a Party shall not provide for a right of action under its domestic law against the 
other Party on the ground s that a measure of the other Party is inconsistent with the Agreement.  
3  PROVISIONS ON TRADE  IN GOODS  
3.1.  The i ncorporated Chapters 2 -7 specifically cover trade in goods, while other incorporated 
Chapters contain horizontal provisions that are also applicable to trade in goods. Annex B to the 
Agreement sets out the tariff commitments under the Agreement , and replaces Annexes 2 -A and 2 -
B to the CETA.  
3.2.  A Committee on Trade in Goods is established to address the promotion of trade in goods 
between the Parties (incorporated Article 2.13).  
 
18 In the Agreement, the terms "the provisions of CETA" include tables, lists, annexes, reservations and 
footnotes, unless explicitly modified by the Agreement (in Annexes A or B). Provisions of the CETA, or parts of 
such provisions, that apply exclusively t o EU Member States and not the UK, or that are in languages other 
than English and French, are not incorporated by reference into and made part of the Agreement.  
19 For more details, readers may revert to Section 5.6 of the  factual presentation.  WT/REG419/1  
 
- 18 - 
 
  3.3.  A Committee on Wines and Spirits and a Joint Sectoral Group on Pharmac euticals are also 
established under the authority of the Committee on Trade in Goods ( incorporated Article 26.2). A 
Committee on Agriculture is also established to provide a forum for the Parties to discuss issues 
related to agricultural goods covered by t he Agreement.  
3.1  Import  duties and charges , and quantitative restrictions  
3.1.1   General provisions  
3.4.  General provisions on trade in goods are contained in Chapter 2 of the CETA and are 
incorporated into the Agreement.  
3.5.  The Parties agree to accord national treatment t o each other's' goods in accordance with 
Article  III of GATT 1994 and its interpretative notes, which are incorporated into and made part of 
the Agreement  (incorporated Article 2.3). Canada's national treatment commitment does not apply 
to its excise dutie s on absolute alcohol20 used in manufacturing under provisions of the Excise Act, 
2001 (Statutes of Canada 2002, c. 22).  
3.6.  Except as otherwise provided in the Agreement, neither Party shall adopt or maintain any 
prohibition or restriction on the importation of any good of the other Party, except in accordance 
with Article XI of GATT  1994, which is incorporated into and made part of the Agreement. 
Incorporated Article  2.11 also governs the adoption or maintenance of prohibitions or restrictions on 
the importat ion of a good from a third -party. In this case, discussions between the Parties are 
foreseen with a view to avoiding undue interference with or distortion of pricing, marketing or 
distribution arrangements in one of the Parties. The obligations relating to  prohibitions and 
restrictions on the importation of goods does not apply to:  
a. Canadian excise duties on absolute alcohol used in manufacturing under the provisions of 
the Excise Act, 2001 (S.C. 2002, c. 22); and  
b. The importation of used vehicles into Canad a that do not conform to its safety and 
environmental requirements.  
3.7.  The Agreement also contains provisions on goods re -entered after repair or alteration 
(incorporated Article  2.10).  
3.8.  According to  the incorporated Article 2.5, a Party shall not refund, defe r or suspend a customs 
duty paid or payable on a non -originating good imported into its territory if the good, or an identical, 
equivalent or similar substitute, is used as a material in the production of another good that is 
subsequently exported to the t erritory of the other Party under preferential tariff treatment pursuant 
to the Agreement. This restriction however does not apply to a Party's regime of tariff reduction, 
suspension or remission if the restriction, suspension or remission is not expressly  conditioned on 
the exportation of a good.  
3.9.  The incorporated Article 2.7 contains a standstill provision.  Neither Party shall increase any 
existing customs duty, or adopt any new customs duty, on an originating good. Notwithstanding the 
standstill clause , a Party may modify a tariff outside the Agreement on a good not covered by the 
tariff preference programme; following a unilateral tariff reduction (up to the level established in the 
Party's Schedule); or if authorized by the Agreement or under the WTO A greement. Canada retains 
its WTO right to apply special safeguards pursuant to the WTO Agreement on Agriculture  (section 
3.5.2.3 below) . 
3.10.  Temporary suspension of preferential tariff treatment is governed by  the incorporated Article 
2.8 and may occur in situ ations of systematic breaches of customs legislation, and systematic and 
unjustifiable refusal to cooperate with respect to the investigation of breaches of customs legislation. 
Such suspension involves notification and consultation with a view to achievin g a mutually acceptable 
resolution.  
 
20 As liste d under tariff item 2207.10.90 in Canada's WTO Schedule of Concessions (Schedule  V). WT/REG419/1  
 
- 19 - 
 
  3.11.  Under the incorporated Article 2.9, the Parties agree not to adopt or maintain a fee or charge 
on, or in connection with, imports of a good of the other Party that is not commensurate with the 
cost of services rendered o r that represents an indirect protection to domestic goods or a taxation 
of imports for fiscal purposes, in accordance with Article VIII of the GATT 1994.  
3.2  Liberalization of trade and tariff lines  
3.12.  The Agreement incorporates the relevant provisions of the C ETA concerning liberalization of 
trade and tariff lines, though with a number of modifications.  
3.13.  Each Party shall reduce or eliminate its customs duties on goods originating in the other Party 
in accordance with its respective tariff elimination schedule. The tariff commitments are set out in 
Annex B to the Agreement .21  
3.14.  Upon request by a Party, consultation s may take place to consider accelerating and 
broadening the scope of the elimination of customs duties (paragraph 4 of incorporated Article 2.4).  
3.15.  For a period of 10 years after the entry into force of the Agreement , the Parties shall exchange 
quarterly figures at the tariff line level for HS Chapters 1 through 97, on imports of goods from the 
other Party that are subject to MFN applied and preferent ial tariffs under the Agreement. Unless the 
Parties decide otherwise, this period will be renewed for five years and may be subsequently 
extended by them (incorporated Article 30.3).  
3.2.1   Liberalization schedule  
3.16.  The replaced  Annex 2 -A to the Agreement states th e staging categories applicable to the 
Parties and applies to the Parties' Schedules that are attached to the incorporated Annex. The 
replaced  Annex 2 -A also contains the Parties' tariff rate quota commitments.22 
3.17.  According to the Agreement , the Parties sha ll eliminate all customs duties on originating 
goods, of Chapters 1 through 97 of the Harmonized System (HS) that provide for a most -favoured -
nation (MFN) rate of customs duty, imported from the other Party upon entry into force of the 
Agreement , except as  otherwise provided in the incorporated Annex. The incorporated Annex 2 -A, 
as modified, provides for seven staging categories for which the following disciplines apply to the 
elimination of customs duties23: 
• Customs duties for goods in category "A", applyi ng to some products imported into Canada 
and subject to TRQs, were eliminated as from the entry into force of the Agreement24; 
 
• Category "B" foresees the elimination of customs duties in four equal stages from 21 
September 2017. Tariffs were eliminated on  1 January 2020 , and so effectively as from 
the entry into force of the Agreement ;  
 
• Category "C" foresees the elimination of customs duties in six equal stages from 21 
September 2017. Tariffs  shall be eliminated on  1 January 2022;  
 
• Category "D" foresees t he elimination of customs duties in eight equal stages from 
21 September 2017. Tariffs  shall be eliminated on  1 January 2024;  the Agreement makes 
adjustments for  this category with respect to  the UK25 (See 3.2. 1.1); 
 
 
21 Hereinafter also referred to as "the replaced Annex 2 -A", respectively "the replaced Annex 2 -B", or 
"the incorporated Annex 2 -A, as modified", respectively "the incorpor ated Annex 2 -B, as modified ". 
22 See section 3. 2.2 below.  
23 Where a staging category commencing earlier than the entry into force of the Agreement, this is 
solely for calculating interim rates of customs duty, and does not create a retroactive effect prior to the entry 
into force of the Agreement.  
24 The tariff liberalisation programme between the UK and Canada started in 2017 when the CETA 
provisionally entered into force. At that time, the UK was still a Member of the EU.  
25 Canada clarifies that the changes  are to remove rows that would clearly have predated the entry into 
force of the Agreement, and to separately enumerate a paragraph (d.1), that often got lost in HTML 
formatting.  WT/REG419/1  
 
- 20 - 
 
  • Category "S" foresees the elimination of customs duties in three equal stages from the 
beginning of 21  September 2022. Tariffs  shall be eliminated on  1 January 2024;  
 
• With respect to products classified in Category "AV0+EP", the ad valorem  component of 
the customs duties was eliminated  on 21 September 2017 ; the specific duty component 
was maintained ;  
 
• Customs duties for goods in category "E" are ex cluded  from tariff elimination.  
 
3.18.  The base rates of customs duty set out in both Parties' Schedules reflect th eir MFN rates in 
effect on 9 June 2009.  
The United Kingdom  
3.19.  The Agreement incorporates the tariff commitments made by the EU in the context of the 
CETA. These commitments foresaw the abolition of customs duties and other charges applied by the 
UK to imported products originating in Canada, in accordance with the co rresponding schedule of 
elimination.  
3.20.  In connection with the elimination commitments applicable under category "D" (see above), 
for the UK, the Agreement clarifies that "For greater certainty, if the United Kingdom applies a 
customs duty for the items 1001  11 00, 1001 19 00, high quality common wheat of items ex 1001 
99 00, 1002 10 00 and 1002 90 00, at a level and in a manner so that the duty -paid import price 
for a specified cereal will not be greater than the effective intervention price, or if there is a 
modification of the current system, the effective support price, increased by 55% as set out in any 
law or regulation of the United Kingdom that applies such a system which may be adopted on or 
after the date of entry into force of this Agreement, the Un ited Kingdom shall apply the tariff 
elimination staging category towards any calculated duty that would be applied ", as summarized in 
Box 3.1 below.  
Box 3.1 application of staging category "D" by the UK with respect to cereals  
Year Applied duty  
2021 37.5% of the duty calculated as per the relevant MFN customs  tariff law or regulation 
of the United Kingdom  
2022 25% of the duty calculated as per the relevant MFN customs tariff  law or regulation of 
the United Kingdom  
2023 12.5% of the duty calculated as per the relevant MFN customs  tariff law or regulation 
of the United Kingdom  
2024 and each 
subsequent year  0% of the duty calculated as per the relevant MFN customs tariff  law or regulation of 
the United Kingdom (duty -free) 
Source:  Annex B t o the Agreement . 
3.21.  Moreover, a customs duty applied  by the United Kingdom  under the provisions set out in the 
preceding paragraph shall not exceed the customs duty applied by the European Union under CETA 
in relation to the same good originating in Canada. I f the United Kingdom decides to apply such a 
customs duty to this good, it shall provide a notice in writing to Canada 30 days before any law or 
regulation that applies such a duty enters into force.  
3.22.  With respect to products classified under  Category "AV0+ EP" (see above) , a specific duty may 
be applied under  the entry price system applicable for these originating goods; this specific duty 
shall not exceed the relevant specific duty under  the base rate set out in the United Kingdom 's 
Schedule. If the United Kingdom applies such a specific duty, it shall provide a notice in writing to 
Canada 30 days before any law or regulation appl ying such a duty enters into force . WT/REG419/1  
 
- 21 - 
 
  3.23.  The UK 's MFN  applied tariff in 2021 consisted of 9,494 lines at the eight -digit level (HS 2017 ). 
90.72% of the tariff rates were ad valorem and 881 lines had non -ad valorem tariffs.26 
3.24.  Table 3.1 shows tariff elimination commitments by the UK under the Agreement. A 
comparison is made between tariffs resulting from the implementation of the Agreement and the 
applicable MFN tariffs. Tariff elimination under the Agreement continues commitmen ts made by the 
UK as a member of the EU with respect to Canada under the CETA. The following tables should 
therefore be read bearing this in mind.  
3.25.  In 2021, 4,462 lines were duty free on an MFN basis, representing 47% of the UK's total tariff, 
corresponding  to 93.2% of its imports from Canada during 2018 -2020. Under  the Agreement27, on 
1 January 2021, an additional 4,815 lines (50.7% of the UK's tariff) became duty -free for imports 
from Canada. This resulted in 97.7% of the UK's tariff becoming duty free, co rresponding to 98.8% 
of its total imports from Canada during the period 2018 -2020. Further tariff lines will become duty 
free in 2022, and 2024, which corresponds to the UK's full implementation of its tariff elimination 
programme. At the end of implementa tion 100 tariff lines will remain dutiable, representing 1.1% 
of the UK's tariff and corresponding to a negligible part of  its total imports from Canada.  
Table 3.1: United Kingdom : Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in UK's tariff schedule  UK's imports from Canada  
(2018 -2020)a 
Number  % Value (USD 
million)b % 
2021 (MFN)  4,462  47.0  14,444.3  93.2  
2021  4,815  50.7  868.6  5.6 
2022  41 0.4 5.3 0.0 
2024  76 0.8 186.8  1.2 
Remain dutiable  100 1.1 0.6 0.0 
Total 9,494  100.0  15,505.6  100.0  
a Import coverage is for HS chapters 1 -97. Totals exclude values that are suppressed at the product 
line level due to being potentially disclosive.  
b Import values were reported in GBP and converted into USD using the exchange rates of 
0.749531540259847(2018), 0.783445110011929 (2019) and 0.779999576697153 (2020).  
Note:  Certain products in the UK schedule are classified beyond the HS 8 -digit level. In cases where the 8 -
digit contains both dutiable and duty -free sub -lines the entire 8 -digit line is recorded as dutiable.  
 Tariff lines subject to in -quota rates are excluded in the computation .  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by UK.  
3.26.  Table 3.2 shows the UK's tariff elimination, by HS section. The 100 lines excluded from tariff 
elimination once implementation is completed are found in HS Sections I (live animals), and IV 
(prepared foo d). These correspond to HS Chapters 1, 2, 4, and 20, with final average preferential 
and MFN tariffs at 4% for Chapter 20 (preparations of vegetables, fruit, nuts or other parts of plants) 
and 11.3% for Chapter  2 (meat and edible meat offal) as depicted in  Chart 3.1. Tariff lines in the 
other HS Chapters are , according to the Agreement,  subject to specific entry prices.  However, the 
UK does not currently apply the entry price system, which means that any entry price component 
that previously applied to impo rts from Canada under the EU Agreement is not currently being 
applied by the UK and such products can enter duty -free.  
 
 
26 647 lines with specific duties, 230 with compound duties, and 4 with mixed duties.  
27 As a consequence of the provisional implementation of the CETA, in 2017, 2,467 lines were duty free 
on an MFN basis, representing 25.9% of the EU's total tariff, corresponding to 73.6% of its imports from 
Canada during 2014 -2016. Immediately foll owing the entry into force of the Agreement, an additional 6,777 
lines (71.1% of the EU's tariff) also became duty -free for imports from Canada. This resulted in 97% of the 
EU's tariff becoming duty free, corresponding to 96.1% of the EU's total imports fr om Canada during the period 
2014-2016. Further tariff lines became duty free in 2020.  WT/REG419/1  
 
- 22 - 
 
  Table 3. 2 United Kingdom : Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  
Avg. Duti a-
ble Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
Remain 
Dutiable  2021  2022  2024  
I 8.9 956 109 716 14 18 99 11.3 
II 4.4 554 213 329  12   
III 4.8 129 30 99     
IV 12.9 869 119 715 9 25 1 4.0 
V 0.4 231 202 29     
VI 2.7 1,226  550 676     
VII 3.7 301 86 215     
VIII 1.4 130 73 57     
IX 1.1 235 189 46     
X 0.0 195 195      
XI 7.0 1,149  243 906     
XII 7.3 106 17 89     
XIII 2.0 234 162 72     
XIV 0.5 58 47 11     
XV 0.6 955 804 151     
XVI 0.7 1,338  981 357     
XVII 3.7 286 121 126 18 21   
XVIII 0.6 299 218 81     
XIX 1.4 22 7 15     
XX 1.4 214 89 125     
XXI 0.0 7 7      
Total  3.8 9,494  4,462 4,815 41 76 100 11.0 
Note:  Tariff lines subject to in -quota rates are excluded in the average dutiable tariff computation. F or the 
calculation of averages, specific rates are excluded , and the ad valorem  part of alternate rates are 
included.  
 For the tariff lines subject to seasonal duties28, average rate for the entire year is used for the 
calculation. And  the products classified beyond HS 8 -digits level are counted one and their tariff 
rates are averaged to the 8 -digits level.  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by UK.  
 
28 Tariff lines 0302.41.00, 0302.43.90, 0302.44.00, 0303.51.00, 0303.53.90, 0303.54.10, 0303.89.40, 
0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 0805.10.22, 0805.10.24,  0805.10.28, 0808.10.80, 
0808.30.90, 0809.29.00 and 0809.40.05 are subject to MFN seasonal duties . WT/REG419/1  
 
- 23 - 
 
  Chart 3.1 The United Kingdom: Average of dutiable rates on excluded lines, by HS 
Chapter  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem part of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the UK.  
 
Canada  
3.27.  The Agreement effectively carries forward the tariff elimination commitments made by Cana da 
in the CETA, although these are established in a tariff schedule in the Agreement . These 
commitments affect  the abolition of customs duties and other charges applied by Canada  to imported 
products originating in the UK, in accordance with the correspond ing schedule of elimination.  
3.28.  Canada's applied tariff in 2021 consisted of 6,827  lines at the eight -digit level (domestic 
nomenclature applied in accordance with HS  2017). 96.22 % of the tariff rates were ad valorem  and 
258 lines had non -ad valorem  tariffs.29  
3.29.  Table 3. 3 shows tariff elimination commitments by  Canada  under the Agreement. A 
comparison is made between these tariffs resulting from the implementation of the Agreement and 
the applicable MFN tariffs. Tariff elimination under the Agreement continues commitments made by 
the UK as a member of the EU with respect to Canada under the CETA Tariff elimination under the 
Agreement continues commitments made by Canada  with respect to the UK under the CETA. The 
following tables should therefore be rea d bearing this in mind.  
3.30.  In 2021, 4,805  lines were duty free on an MFN basis, representing 7 0.4% of Canada's total 
tariff, corresponding to 8 1.3% of its imports from the UK during 2018 -2020. Under  the Agreement30, 
on 1 January 2021, an additional 1,884 line s (27.6% of Canada's tariff) also became duty -free for 
imports from the UK. This resulted in 87.1% of Canada's tariff becoming duty free, corresponding 
to 85.5% of Canada's total imports from the UK during the period 2018 -2020. Further tariff lines 
will be come duty free in 2022, and 2024, which corresponds to Canada's full implementation of its 
tariff elimination programme. At that point, 98.4% of Canada's tariff lines will have been fully 
 
29 Seventy -eight lines with specific duties, 41 with compound duties, 133 with mixed duties, and 6 lines 
with no rate.  
30 As a consequence of the provisional i mplementation of the CETA, in 2017, 5,232 lines were duty free 
on an MFN basis, representing 71.6% of Canada's total tariff, corresponding to 75.8% of its imports from the 
EU during 2014 -2016. Immediately following the entry into force of the Agreement, an  additional 1,909 lines 
(26.1% of Canada's tariff) also became duty -free for imports from the EU. This resulted in 97.7% of Canada's 
tariff becoming duty free, corresponding to 90% of Canada's total imports from the EU during the period 2014 -
2016. Further tariff lines bec ame duty free in 2020 . 
0%2%4%6%8%10%12%
01 02 04 20
HS ChapterPreferential MFNAverage Duty Rate
*Tariff lines subject to specific duties*                                                         *WT/REG419/1  
 
- 24 - 
 
  liberalized, corresponding to almost the entirety of Canada's total imports during the period 2018 -
2020. According to Canada's tariff, 106 tariff lines are associated with non -duty-free customs duties. 
This figure includes 6 tariff lines (1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70, 
1702.90.81) which are onl y applicable for Canada -Peru/Honduras FTA . As a consequence, only 100 
tariff lines  will remain dutiable , with respect to products originating from the UK, once the Agreement 
is implemented, representing 1. 6% of Canada's tariff and corresponding to negligib le imports from 
the UK during 2018 -2020.  
Table 3.3: Canada  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty 
phase -out 
period  No of lines  % of total lines 
in Canada 's 
tariff schedule  Value of Canada 's 
imports from the UKa 
(2018 -2020)  
USD million  % of Canada 's total 
imports from  
the UK  
(2018 -2020)  
2021 
(MFN)  4,805  70.4 4,749.3  81.3 
2021 1,881  27.6 337.3  5.8 
2022 20 0.3 3.8 0.1 
2024 15 0.2 752.9  12.9 
Remain 
dutiable  106b / 100  1.6 0.1 0.0 
Total 6,827  100.0  5,483.3  100.0  
a Tariff lines and import coverage is from HS chapters 1 -97. 
b 6 tariff lines (1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70, 1702.90.81) which are 
only applicable for Canada -Peru/Honduras FTA are counted as dutiable. These tariff lines are not 
part of the UK -Canada FTA. These tariff lines are included in the calculation to count the total 
number of lines provided in Canada's tariff.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  100 tariff lines under the 
excluded category reflect the MFN 2021 duties. This process is in accordance with the methodology 
applied by the Secretariat across all FPs where it aims to assess the margins of preference in 
reference to the MFN duties as of e ntry into force.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Canadian authorities under CETA, WTO -IDB and the 
UNSD, Comtrade database.  
 
3.31.  Table 3.4 shows Canada's tariff elimination, by HS section. The 100 lines excluded from tariff 
elimination once implementation is completed are found in HS Sections I (live animals),  and III 
(animal or vegetable fats and oils). These Sections correspond to HS Chapters 1, 2, 4, 15, 16, 18, 
19, 21 -23 and 35. Average tariffs  on the lines remaining subject to duties range from 199.3% for 
HS Chapter 2 (meat and edible meat offal) to 256% for HS Chapter 22 (beverages, spirits and 
vinegar) and are equivalent to their corresponding MFN average duties as depicted in Chart 3.2.  
Table 3.4 Canada: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Avg. 
% No. of 
lines  Duty -free 
lines under 
MFN 20 21 Number of duty -free lines 
under the Agreement  Remai
ning 
dutiab
le 
lines  Avg. 
Final 
Tariff  
(Dutia
ble) 2021  2022  2024  
I 34.5 449 306 74   69 227.7  
II 3.1 438 326 107 5    
III 7.0 61 33 26   2 218.0  
IV 16.4 544 190 319  2 33a 228.9  
V 0.4 158 149 9     
VI 1.2 924 796 126   2 - 
VII 1.7 256 194 62     
VIII 3.7 83 52 31     
IX 2.1 153 98 55     
X 0.0 141 141      
XI 6.5 903 543 360     WT/REG419/1  
 
- 25 - 
 
  HS 
Section  MFN 
Avg. 
% No. of 
lines  Duty -free 
lines under 
MFN 20 21 Number of duty -free lines 
under the Agreement  Remai
ning 
dutiab
le 
lines  Avg. 
Final 
Tariff  
(Dutia
ble) 2021  2022  2024  
XII 10.2 97 30 67     
XIII 2.5 173 106 67     
XIV 1.8 58 43 15     
XV 1.4 652 517 135     
XVI 0.7 976 877 99     
XVII 5.3 257 108 121 15 13   
XVIII 1.7 275 198 77     
XIX 3.8 29 7 22     
XX 4.8 191 84 107     
XXI 1.4 9 7 2     
Total  5.8 6,827  4,805  1,881  20 15 106 228.0  
- contains specific duties only.  
a 6 tariff lines (1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70, 1702.90.81) which are 
only applicable for Canada -Peru/Honduras FTAs are also included here.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; For the calculation of 
averages, specific rates are excluded, and the ad valorem parts of alternate rates are included.  
 Based o n the HS 2017 nomenclature.  
Source :  WTO estimates based on data provided by the Canadian authorities  under CETA and the WTO -IDB. 
Chart 3.2 Can ada: Average of dutiable rates on excluded lines, by HS Chapter  
 
Note:  * HS chapter 35 contains specific duties only.  
 Tariff lines subject to in -quota rates are excluded in the computation; For the calculation of  
averages, specific rates are excluded, and the ad valorem parts of alternate rates are included  
Source:  WTO estima tes based on data provided by the Canadian authorities under CETA and the WTO -IDB. 
 
3.2.2   Tariff rate quotas  
3.32.  Some of the Parties' market access commitments take the form of tariff rate quotas (TRQs) 
identified in Annex B to the Agreement. The levels of the commi tments have been adjusted as 
compared to those in the CETA to adapt  to the size and levels of bilateral trade between the Parties.  
050100150200250300
1 2 4 15 16 18 19 21 22 23 35*Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG419/1  
 
- 26 - 
 
  3.33.  The TRQ commitments of the UK , which provide duty -free in -quota treatment,  cover 
processed shrimp; frozen cod; low and medium  quality common wheat (all subject to transitional 
TRQs that will expire in 2024); and sweetcorn; bison; fresh or chilled beef and veal; frozen or other 
beef and veal; and pork. Commitments are also made by the UK for pork31 and high quality fresh, 
chilled  and frozen meat of bovine animals when such goods are exported from Canada through the 
UK's WTO TRQs .32 Canada did not establish new bilateral TRQs in the Agreement .33 It nevertheless 
provides transitional access to the share reserved for the EU under Can ada's WTO cheese TRQ until 
no later than 31 December 2023 for cheese originating in the UK. The modalities are governed by 
an exchange of letters between the Parties.  Annex 2 to the factual presentation summarizes the 
main features of the Parties' TRQ comm itments under the Agreement.  
3.34.  The modified Annex 2 -A, paragraph 7, sets out that f or the administration , in 2021 , of each 
TRQ established under the Agreement, the Parties shall calculate the quota volume by discounting 
the prorated volume corresponding to the period running between January 1 and the date of entry 
into force of the Agreement. The calculated in -quota quantities had to be made available on the date 
of entry into force of the Agreement.34 
3.35.  The administration of tariff rate quotas by the UK shall  be on a first -come first -served basis. 
For fresh or chilled beef and veal, frozen or other beef and veal, and pork, i f and when 75% or more 
of the annual aggregate quantity for a given TRQ is actually imported into a Party in a given year  
for three consec utive years, the Parties may change to an import license -based system, provided 
the Parties agree. The UK's TRQ commitments for fresh or chilled beef and veal, frozen or other beef 
and veal, and pork  may also be reviewed under the incorporated Annex 2 -A to the Agreement as 
modified . 
3.36.  The replaced  Annex B to the Agreement contains a Declaration by the Parties concerning TRQ 
administration. It covers the UK's alternative administration for beef and veal, and pork TRQs , which 
may be applied  under the Agreement  (see paragraph 3.34 above),  and covers the structure of the 
import licensing system (quarterly sub -periods with carryover between periods for unused TRQ 
quantities; application period for import licences; validity of licences; eligibil ity criteria), and 
securities (securities tied to import licence applications; transfer of licence and corresponding 
security; return of licence and corresponding security; and release of security and release of full 
security when 95% of imports occur).  
3.37.  In addition to the TRQ commitments by the Parties additional commitments are made in the 
form of origin quotas.35 
3.3  Rules of origin  
3.38.  The provisions on rules of origin are contained in the incorporated Protocol on Rules of Origin 
and Origin Procedures. Section A contains general provisions, such as  definitions, while Section B 
contains the general requirements  applicable for the determination of origin under  the Agreement.36 
Annex A to the Agreement introduces some modifications to the Protocol attached to the C ETA, as 
presented below. Seven Annexes to the incorporated Protocol form an integral part of it. Annexes 2, 
4, 5 (notably Annex 5 -A and in Particular Section A on agriculture) , and 7  are modified as compared 
to the corresponding Annexes to the CETA Protoco l on rule of origin.  
 
31 The United Kingdom indicates that pursuant to the modified Annex 2 -A paragraph 16.b, the UK has 
made commitment for pork exports from Canada through the UK’s WTO TRQ, in addition to the quantities 
specified in the paragraph 16(a).  
32 As reflected in the United Kingdom's schedule of commitme nts at the WTO (as attached to 
G/MA/TAR/RS/570).  
33 Canada indicates that the two Canadian CETA TRQs for cheese and industrial cheese have not been 
transitioned as part of the Agreement.  
34 The Parties indicate that the UK applied the full annual TRQ volume s for 2021, and that, therefore, 
the in -quota quantit ies were not discounted. The TRQ quantities applied by the UK are published online at:  
https://www.gov.uk/government/publications/reference -documents -for-the-customs -tariff-preferential -trade -
arrangements -eu-exit-regulations -2020. 
35 See below, the section on rules of origin.  
36 Annex 4 to the inco rporated Protocol clarifies the non -applicability of the Protocol and its impact on 
Ceuta and Melilla, while Annex 7 to the Agreement contains joint declarations concerning the Principality of 
Andorra and the Republic of San Marino.   WT/REG419/1  
 
- 27 - 
 
  3.39.  A product qualifies as originating  when it :  
a. is wholly obtained in a Party as defined in Article 4 of the incorporated Protocol;  
b. is produced exclusively from originating materials; or  
c. has undergone sufficient production as defined in A rticle 5 of the incorporated Protocol 
and in Annex 5 to the incorporated Protocol, which contains the product -specific rules of 
origin.  
3.40.  Annex 5 to the incorporated Protocol, as modified, contains product specific rules of origin 
and outlines the conditions  that need to be fulfilled for products that are not wholly obtained to be 
considered to have undergone sufficient production (Article 5 of the incorporated Protocol) and to 
qualify as originating. In a limited number of cases, however, the only condition that can confer  
origin is to be wholly obtained in a Party.37 Most product s can obtain origin  provided that the y satisfy 
a tariff shift or if the value of non -originating materials used in its production does not exceed a 
threshold. This threshold varies by product, but in most cases, it is 50% of the transactional value 
(or ex -works price) of the product.38 The definitions relevant to determining if a product satisfies a 
rule of origin with a value requirement are set out in Article 1 of Section A. For some products a 
specific manufacturing or processing operation can confer origin.39 Annex 6 to the incorporated 
Protocol, unchanged, contains a joint declaration by the Parties  under which  trade in textiles and 
apparel between the Parties is based on the principle that double transformation confers origin, (as 
reflected in Annex 5 to the incorporated Protocol on product -specific rules of origin).40  
3.41.  A de minimis  tolerance rule of 10% of the transaction value or ex -works price of the product 
is applicable to non -originating materials used in the production of a product. As an exception to the 
general tolerance rule, tolerance for textiles and apparel products41 shall be determined in 
accordance with the special rules set out in Annex 1 to the incorporated Protocol.  
3.42.  Accumulation of origin is applicable as governed by the provisions of Article 3 of the 
incorporated Protocol, complemented by Annex 3 to the incorporat ed Protocol, as modified. A 
product that originates in a Party is considered originating in the other Party when used as a material 
in the production of a product in that other Party. An exporter may take into account production42 
carried out on a non -originating material in the other Party for the purposes of determining the 
originating status of a product. As compared to the corresponding CETA provisions, and for a 
transition period of three years from the entry into force of the Agreement, a material pro duced in 
the EU that would have satisfied the rules of origin had the territory of the EU been part of the free 
trade area established by this Agreement shall be deemed as originating when used in the production 
of a product in a Party. Moreover, for the p urposes of determining the originating status of a product, 
an exporter may take into account production carried out on a non -originating material in the EU. 
Not more than 30 months after the entry into force of the Agreement the Parties shall discuss and 
decide whether the period should be extended. If they agree, the application of the above -mentioned 
disciplines applicable during the transitional period may be extended by decision of the Canada UK 
Joint Committee .43 Furthermore, the Parties shall continu e to seek and work towards mutually 
 
37 This is particularly  the case for goods classified under HS Chapters 1 and some goods classified under 
HS Chapters 2 -4, 6-8, 10, 11, 15, and 24.  
38 This is particularly the case for goods classified under HS Chapters 17 -18 (some sugar products); 28 -29, 
31-33, and 35 -39 (some c hemical products, plastics and rubber); 50 -60, and 62 -63 (some textiles and textile 
products); 70 -71, 73, 76, and 82 -83 (some metals); and 84 -96 (machinery, vehicles, instruments and 
miscellaneous manufactured articles).  
39 This is the case particularly for  chemical and textiles products.  
40 Nevertheless,  for a number of reasons, including the absence of a negative cumulative effect on the 
producers of the UK, the Parties agree to derogate from the above -mentioned principle by providing for limited, 
reciproca l origin quotas for textiles and apparel. These origin quotas are expressed in terms of volumes 
classified by product category, and includes considering dyeing as equivalent to printing, for a limited and 
clearly identified range of product categories. The  Parties further affirm that these origin quotas, which are 
exceptional, will be applied in strict adherence to the Protocol.   
41 Applicable to textile and apparel products of HS Chapters 50 through 63.  
42 Provided it is not considered insufficient productio n. 
43 The Parties indicate that no discussion regarding the extension of the transition period has yet taken 
place between them.  WT/REG419/1  
 
- 28 - 
 
  beneficial and more liberal rules of origin that best reflect Canada 's and the UK 's supply chains and 
sectoral interests.  
3.43.  Furthermore , a forward -looking provision under which the Parties can agree to allow for 
accumulati on with third parties under certain conditions is contained in the incorporated Protocol. If 
each Party has a free trade agreement with the same third -party, a material of that third -party may 
be taken into consideration by the exporter when determining wh ether a product is originating under 
the Agreement (paragraph 8 of Article 3 of the incorporated Protocol). This specific provision shall 
apply only if equivalent provisions are in force between each Party and the third -party and upon 
agreement by the Part ies on the applicable conditions .44. If each Party has a free trade agreement 
with the United States, and upon agreement by both Parties on the applicable conditions, each Party 
shall apply the above -mentioned provision (paragraph 8) when determining wheth er some 
products45, specified in Article 3 of the incorporated Protocol, are originating under the Agreement.46  
3.44.  Articles 7 through 15, and 17 of the incorporated Protocol contain disciplines on insufficient 
production; useable units of classification; pac kaging and packing materials and containers; 
accounting segregation of fungible materials or products; accessories, spare parts and tools; sets; 
neutral elements; transport through a third -party; returned originating products, and calculation of 
net costs.  Specific calculation rules applicable to sugar assist in the determination of products 
containing sugar and are set out in Article 16 of the incorporated Protocol.  
3.45.  Section C of the incorporated Protocol has specific disciplines on proof of origin47; oblig ations 
regarding exports; validity of the origin declaration; import obligations; proof -related to transport 
through a third -party; importation by instalments; exemptions from origin declarations; supporting 
documents; preservations of records; discrepanci es and formal errors; cooperation, origin 
verification; review and appeal; penalties; confidentiality; and advance rulings relating to origin.  
3.46.  For specific categories of products, the Parties also agreed to establish a number of origin 
quotas to allow for limited quantities of some products to receive preferential tariff treatment. Under 
these provisions, certain products that do not satisfy the product -specific rules of origin under the 
incorporated Annex 5 to the incorporated Protocol, may nevertheless qu alify as originating under 
alternative product -specific rules of origin as specified in the incorporated Annex 5 -A. The origin 
quotas cover, as under the CETA, high sugar containing products; sugar confectionery and chocolate 
preparations; processed foods;  dog and cat food; fish and seafood; textiles; apparel; and vehicles. 
The annual quota allocations for exports from Canada to the UK are adjusted (compared to the 
corresponding quantities granted by the EU under  the CETA). Like in the CETA, Canada agreed t o 
establish origin quotas for specific imports of textile and apparel products from the UK. In order to 
receive preferential tariff treatment, origin quota  products must meet the product description and 
undergo sufficient production to satisfy the applicab le product -specific rule of origin in Annex  5-A to 
the incorporated Protocol. The annual quotas set out in Annex 5 -A, as modified, will cease to apply 
three years after entry into force of the Agreement. Not more than 30 months after the entry into 
force o f the Agreement, the Parties shall discuss and decide whether the period should be 
extended.48 The main features of the Parties' origin quota commitments are summarized in Annex  3 
to the factual presentation.   
3.47.  A Committee on Rules of Origin and Origin Proc edures (ROOP) is established under Article 34 
of the incorporated Protocol. The ROOP shall consider any matters arising under the incorporated 
 
44 The Parties clarify that this provision and its applicable conditions are to be negotiated and agreed 
between Canada, the UK and the third party.  
45 This provision is applicable when determining the origin of products falling under HS Chapter 2 (meat 
and e dible meat offal); HS Chapter 11 (products of the milling industry; malt; starches; inulin; wheat gluten); 
HS heading 16.01 through 16.03 (some preparations of meat, or fish or of crustaceans, molluscs or other aquatic 
invertebrates); HS Chapter 19 (prepar ations of cereals, flour, starch or milk; pastrycooks' products); HS headings 
20.02 or 20.03 (tomatoes prepared or preserved otherwise than by vinegar or acetic acid; or mushrooms and 
truffles, prepared or preserved otherwise than by vinegar or acetic acid ); or HS subheading 3505.10 (dextrins 
and other modified starches).  
46 Notes 1 and 2 of Section D in Annex 5 -A highlight certain future amendments for specific products 
listed in Table D1. These amendments relate to cumulation with the United States.  
47 The different linguistic versions of the text of the origin declaration a re set out in Annex 2 to the 
incorporated Protocol.  
48 The Parties indicate that no discussions regarding the extension of the transition period has yet take 
place between them.  WT/REG419/1  
 
- 29 - 
 
  Protocol and recommend amendments to its provisions to the Committee on Trade in Goods.  The 
ROOP shall consult wi th a view to ensuring that the incorporated Protocol is administered effectively, 
uniformly and consistently with the spirit and objectives of the Agreement.  
3.48.  With respect to the applicability of the incorporated Protocol to the Principality of Andorra 
originating industrial products that would have satisfied the rules of origin in the incorporated 
Protocol, had the territory of Andorra been part of the free trade area established by the Agreement, 
shall be deemed as originating when used in the production of a product in the territory of a Party.  
The same condition  applies, for agricultural as well as industrial  products, with respect to the 
Republic of San Marino.   
3.4  Export duties and charges, and quantitative restrictions  
3.49.  The Agreement incorporat es the provisions of the CETA on export duties and charges, and 
quantitative restrictions. The incorporated Article 2.11 stipulates that exce pt as otherwise provided 
in the Agreement, neither Party shall adopt or maintain any prohibition or restriction on the export 
of any good destined to the other Party, except in accordance with Article XI of GATT  1994, which 
is incorporated into and made part of the Agreement. The incorporated Article 2.11 also governs the 
adoption or maintenance of prohibitions or rest rictions on exports of a good to a third -party. In this 
case, discussions between the Parties are foreseen with a view to avoiding undue interference with 
or distortion of pricing, marketing or distribution arrangements in one of the Parties. The obligatio ns 
on prohibitions and restrictions on the exportation of goods do not apply to:  
a. The export of logs of all species; and  
b. The export of unprocessed fish pursuant to Newfoundland and Labrador's applicable 
legislation (for a period of three years starting on 2 1 September 2017).  
3.50.  A Party may not adopt or maintain duties, taxes, or other charges imposed on, or in 
connection with, the export of a good to the other Party, or any internal taxes or fees and charges 
on a good exported to the other Party, in excess of those that would be imposed on the goods when 
destined for internal sale (incorporated Article 2.6).  
3.51.  The Parties agree not to adopt or maintain a fee or charge on or in connection with the 
exportation of a good to the other Party that is not commensurate w ith the cost of services rendered 
or that represents an indirect protection to domestic goods or a taxation of exports for fiscal 
purposes, in accordance with Article VIII of the GATT 1994 ( incorporated Article 2.9).  
3.5  Regulatory provisions on trade in goods  
3.52.  The CETA contains regulatory provisions on standards, trade remedies, subsidies, and 
customs procedures, which include regulatory disciplines. These provisions are incorporated by 
reference  into the Agreement . The incorporated Chapter 21 also covers regulatory cooperation, with 
commitments by the Parties that go beyond trade in goods.49 Furthermore,  a Joint Interpretative 
Instrument is attached to the Agreement.50  
3.5.1   Standards  
3.53.  Chapters 4 and 5 of the CETA cover tec hnical barriers to trade (TBT) and sanitary and 
phytosanitary measures (SPS), respectively. The corresponding provisions are incorporated into the 
Agreement by reference.  
Sanitary and phytosanitary measures  
3.54.  The Agreement incorporates, with relatively minor  modifications, the provisions of the CETA 
on sanitary and phytosanitary measures (SPS) , which  are contained in the incorporated Chapter 5. 
One of the objectives is to further the implementation of the WTO SPS Agreement. In that context, 
 
49 See Section 6.1.1 below.  
50 Ibid. WT/REG419/1  
 
- 30 - 
 
  the Parties affirm  their rights and obligations under the WTO SPS Agreement ( incorporated 
Article  5.4). 
3.55.  The incorporated Article 5.5  contains provisions on the adaptation to regional conditions for 
animals and plants, and their products, including the recognition of the con cept of zoning51 that they 
have agreed to apply to the diseases listed in the incorporated Annex 5 -B. Additionally, principles 
and guidelines to recognize regional conditions shall include those listed in the incorporated 
Annex  5-C. 
3.56.  Regarding equivalence o f SPS measures incorporated Article 5.6 sets out the areas for which 
the importing Party recognises the SPS measure of the exporting Party as equivalent to its own, and 
sets out the associated special conditions, as in incorporated Annex 5 -E, as modified. Section B of 
the incorporated Annex allows Parties to agree at a later stage on the recognition of equivalence for 
phytosanitary measures. The incorporated Annex 5 -D sets out guidelines to maintain equivalence 
and allows the Parties to agree at a later stage on principles and guidelines to determine and 
recognize the equivalence.  
3.57.  According to the incorporated Article 5.7, the importing Party shall make available its general 
SPS import requirements for all commodities. However,  if the Parties jointly identify a commodity 
as a priority, the importing Party shall establish specific SPS import requirements for that 
commodity, unless the Parties decide otherwise. The incorporated Article 5.7 also sets out details 
relevant  if a Party  maintains a list of authorised establishments or facilities for the import of a 
commodity with conditions and procedures which are set out in the incorporated Annex 5 -F. 
Furthermore, a Party shall normally accept a consignment of a regulated commodity wit hout pre -
clearance of the commodity on a consignment basis, unless the Parties decide otherwise. Procedure s 
on specific import requirements for plant health to be followed by the Parties a re set out in the 
incorporated Annex 5 -G. 
3.58.  The incorporated Chapter 5  also contains provisions on transparency and audit and verification  
(incorporated Article 5.8)  where a Party shall bear its own costs associated with the audit or 
verification. If the Parties decide on principles and guidelines to conduct an audit or veri fication, they 
shall be included in the incorporated Annex 5 -H.  
3.59.  The Parties agree on provisions with respect to export certification (incorporated Article 5.9). 
The incorporated Annex 5 -I, as modified52, includes a model attestation for health certificate s for 
animals and animal products, and sets out principles and guidelines for export certification, including 
electronic certification, withdrawal or replacement of certificates, language regimes and model 
attestations.  
3.60.  The incorporated Article 5.10  also specif ies that a Party may collect fees for the costs incurred 
to conduct frontier checks, which should not exceed the recovery of the costs. The incorporated 
Annex 5 -J sets out principles and guidelines for import checks and allows for Parties to set prin ciples 
and guidelines for fees, specifically related to the frequencies of checks.  
3.61.  Provisions on notification and information exchange are contained in incorporated Article 5.11. 
Incorporated Article  5.12 governs technical consultations between the Parties  on significant concerns 
that may exist with respect to food safety, plant health, or animal health, or an SPS measure that 
the other Party has proposed or implemented.  
3.62.  When Parties take emergency SPS measures they are subject to the provisions contained in 
incorporated Article 5.13.  
3.63.  A Joint Management Committee for Sanitary and Phytosanitary Measures is established to 
monitor the implementation of the incorporated Chapter 5 (incorporated Article 5.14).  
 
51 The concept of "protected zone for a speci fied regulated harmful organism", which is defined under 
the CETA, is not retained in the text of the Agreement.  
52 For instance, the reference to the "Trade Control and Expert System (TRACES)" is replaced by a 
referent to the "UK electronic import control system".  WT/REG419/1  
 
- 31 - 
 
  
Technical barriers to trade  
3.64.  The Agreement incorporat es, without modification,  the provisions of the CETA on technical 
barriers to trade (TBT), which are contained in the incorporated Chapter 4  and build on the provisions 
of the WTO TBT Agreement . A Protocol on the Mutual Acceptance of the Results of Conform ity 
Assessment also contains relevant TBT  related disciplines.  
3.65.  The Chapter applies to the preparation, adoption, and application of technical regulations, 
standards, and conformity assessment procedures that may affect trade in goods between the 
Parties. M ost disciplines contained in the WTO TBT agreement are incorporated into the Agreement.53 
3.66.  The strengthening of cooperation between the Parties in the areas of technical regulations, 
standards, metrology, conformity assessment procedures, market surveillanc e or monitoring and 
enforcement activities in order to facilitate trade between the Parties is covered by incorporated 
Article 4.3 but also refers to the incorporated Chapter 21 (Regulatory Cooperation).  
3.67.  Cooperation on technical regulations is addressed in  incorporated Article 4.4, including in the 
context of a request by a Party to have its technical regulation considered as equivalent or similar 
in scope by the other Party to its own regulation. However, the Agreement does not contain 
provisions on mandat ory recognition of technical regulations.  
3.68.  The incorporated CETA does not require the harmonization, alignment, compatibility or 
approximation of standards, technical regulations and/or conformity assessment procedures 
between the Parties.  
3.69.  The Parties shal l, as foreseen in incorporated Article 4.5, observe the  incorporated  Protocol 
on the Mutual Acceptance of the Results of Conformity Assessment  and the incorporated Protocol on 
the Mutual Recognition of the Compliance and Enforcement Programme regarding goo d 
Manufacturing Practices for Pharmaceutical products . 
3.70.  The Protocol on the Mutual Acceptance of the Results of Conformity Assessment is 
incorporated into the Agreement, with the modifications contained in Annex A part B to the 
Agreement. It complements the incorporated Chapter 4 on TBT. It does not apply to, inter alia , SPS 
measures; to purchasing specifications prepared by a governmental body for production or 
consumptio n requirements of that body; or to agricultural goods. While it creates a framework for 
both Parties' businesses to facilitate bilateral trade in certain categories of products identified in 
Annex 154, it does not require the recognition or acceptance by a  Party that the other Party's technical 
regulations are equivalent to its own. However, when conformity assessment bodies established in 
one Party are recognized by the other Party, the results of conformity assessment activities 
performed by these bodies must then be accepted by the Party (Article 9 of the Protocol). The 
incorporated Protocol does not limit the ability of a Party to prepare, adopt, apply or amend 
conformity assessment procedures in accordance with Article 5 of the WTO TBT Agreement.55 The 
 
53 The following provisions of the WTO TBT agreements are incorporated: Articles 2 through 9. The 
incorporation of Article 6 does not limit a Party's rights or obligations under the Protocol on the Mutual Acceptance 
of the Results of Conformity Ass essment, and the Protocol on the Good Manufacturing Practices for 
Pharmaceutical Products. Annexes 1 and 3 to the WTO TBT agreement are also incorporated.  
54 Annex 1 identifies the following product categories: electrical and electronic equipment, including  
electrical installations and appliances, and related components; radio and telecommunications terminal 
equipment; electromagnetic compatibility; toys; construction products; machinery, including parts, components, 
including safety components, interchangea ble equipment, and assemblies of machines; measuring instruments; 
hot-water boilers, including related appliances; equipment, machines, apparatus, devices, control components, 
protection systems, safety devices, controlling devices and regulating devices, and related instrumentation and 
prevention and detection systems for use in potentially explosive atmospheres; equipment for use outdoors and 
it related to noise emission in the environment; and recreational craft, including their components. Annex 2 to 
the Protocol lists the priority categories of goods for consideration in the context of a consultation to take place 
within three years of the entry into force of the Agreement with a view to broadening the scope of application of 
the Protocol.  
55 It also contains disciplines on recognition, accreditation, and designation of conformity assessment 
bodies, as well as objections and challenges to such designations; withdrawals of conformity assessment 
bodies, acceptance of the results of conformity assessment by recognized conformity assessment bodies, as 
well as by in -house bodies established in Canada; market surveillance, enforcement and safeguards; 
recognition of accreditation bodies, challenges to, and cessation of such recognition; recognition of WT/REG419/1  
 
- 32 - 
 
  Parties further agree that a conformity assessment body which had been established in the territory 
of one of the Parties, and had been designated under the CETA,  is automatically a recognized 
conformity assessment body under the incorporated Protocol . The Committee on trade in goods, 
established under incorporated Article 26.2.1(a) is mandated to manage the implementation of the 
incorporated Protocol.  
3.71.  The Protocol on the Mutual Recognition of the Compliance and Enforcement Programme 
regarding Good Ma nufacturing Practices (GMP) for Pharmaceutical Products  is also incorporated into 
the Agreement , with the modifications contained in Annex A part B to the Agreement. Its objective 
is to strengthen cooperation between the authorities of the Parties in ensur ing that medicinal 
products and drugs meet appropriate quality standards through the mutual recognition of certificates 
of GMP compliance. The incorporated Protocol, which applies to medicinal products or drugs to which 
GMP requirements apply in both Parti es56, contains provisions on recognition of regulatory 
authorities; mutual recognition of certificates of GMP compliance; acceptance of batch certificates; 
on-site evaluations; safeguards; two -way alert programmes and information sharing; equivalence 
of ne w regulatory authorities; equivalence maintenance programme; confidentiality; and fees. A 
Joint Sectoral Group is established to manage the incorporated Protocol. It shall conclude a GMP 
Administrative Arrangement to facilitate the effective implementation  of the incorporated Protocol.57 
The Parties' regulatory authorities are identified in Annex 2 to the incorporated Protocol, as modified 
by Annex A Part B to the Agreement.  
3.72.  TBT-specific transparency provisions are contained in incorporated Article 4.6.  
3.73.  The incorporated Annex 4 -A contains the Parties' commitments with respect to cooperation in 
the field of motor vehicle regulations.  
3.74.  The implementation of the incorporated Chapter 4 shall be managed by the Committee on 
Trade in Goods. Nevertheless, upon reque st by a Party, the UK -Canada Joint Committee may 
establish an ad hoc technical working group to identify solutions to facilitate trade (incorporated 
Article 4.7).  
3.5.2   Safeguard mechanisms  
3.75.  The Agreement incorporates , without modification,  the provisions of the CETA on safeguard 
measures, which are contained in Section B of the incorporated Chapter 3.  
Global safeguards  
3.76.  The Parties reaffirm their rights and obligations concerning global safeguard measures under 
Article XIX of GATT 1994 and the WTO Safeguards Agree ment (incorporated Article 3.4)  and clarify 
that the incorporated Protocol on rules of origin and origin procedures shall not apply to global 
safeguard measures.  
3.77.  The incorporated Article 3.5 sets out disciplines on transparency. At the request of the 
expor ting Party, the Party initiating a safeguard investigation or intending to adopt provisional or 
definitive global safeguard measures shall immediately provide the information referred to in Article 
12.2 of the WTO Safeguards Agreement, the public version o f the complaint filed by the domestic 
industry, where relevant, and a public report setting forth the findings and reasoned conclusions on 
all pertinent issues of fact and law considered in the safeguard investigation. Consultations between 
the importing a nd exporting Parties are foreseen in order to review the information provided.  
3.78.  A Party adopting global safeguard measures shall endeavour to impose them in a way that 
least affects bilateral trade (incorporated Article 3.6). In that context, the importing Party must offer 
 
accreditati on bodies in telecommunications and electromagnetic compatibility; and communication through 
contact points on matters arising under the Protocol.  
56 The scope of medicinal products or drugs covered by the Protocol is clarified in Annex 1 to the 
incorporate d Protocol.  
57 The Parties are currently working on drafting the Administrative Arrangement.  They indicate that the 
Joint Sectoral Group has not yet met, at the time the factual presentation was drafed.  WT/REG419/1  
 
- 33 - 
 
  to hold consultations with the exporting Party in order to review the matter and may not adopt the 
measures until 30 days have lapsed since the offer of consultations.  
3.79.  The dispute settlement mechanism under the incorporated Chapter 29 is n ot applicable to 
global safeguard measures (incorporated Article 3.7).  
Bilateral safeguards  
3.80.  The Agreement does not contain any disciplines on a bilateral safeguard mechanism.  
Specific safeguards for agriculture  
3.81.  Canada is granted qualified access to its WTO  right to apply special safeguards pursuant to 
the WTO Agreement on Agriculture though its use is limited to imports not subject to tariff 
preferences and, in the case of imports subject to a tariff rate quota, to quantities imported over the 
access commit ment. (incorporated Article 2.7).  
Balance -of-payments  safeguard s 
3.82.  The possibility of imposing restrictive measures to trade in goods in order to safeguard a 
Party's balance -of-payments or external financial position is addressed in  the incorporated Article 
28.5 of the Agreement. Such measures shall be in accordance with the GATT 1994 and the WTO 
Understanding on the Balance -of-Payments Provisions of the GATT 1994.  
3.5.3   Anti-dumping and countervailing measures  
3.83.  The Agreement incorporates the provisions of the CETA on antidumping and countervailing 
measures , which are contained in Section A of the incorporated Chapter 3.  
3.84.  The Parties reaffirm their rights and obligations under Article VI of the GATT 1994, the WTO 
Antidumping Agreement and the WTO Subsidies and Counter vailing Agreement (incorporated 
Article  3.1). The incorporated Protocol on Rules of Origin and Origin Procedures shall not apply to 
antidumping and countervailing measures.  
3.85.  The disciplines on transparency require a Party to ensure, after the imposition of provisional 
measures and, in any case, before a final determination is made, full and meaningful disclosure of 
all essential facts under consideration to form the basis for the decision to apply final measures. The 
incorporated Article 3.2 also indicates t hat, provided it does not unnecessarily delay the conduct of 
the investigation, each interested Party in an antidumping or countervailing investigation shall be 
granted a full opportunity to defend its interests.  
3.86.  The Parties' authorities shall consider information provided as to whether imposing an 
antidumping or countervailing duty would not be in the public interest. The y may consider whether 
the amount of the anti -dumping or countervailing duty to be imposed shall be the full margin of 
dumpin g or amount of subsidy or a lesser amount, in accordance with its laws (incorporated 
Article  3.3). 
3.87.  The dispute settlement mechanism established under the incorporated Chapter 29 is not 
applicable to antidumping and countervailing measures (incorporated Art icle 3.7).  
3.5.4   Subsidies and state -aid 
3.88.  The Agreement incorporates the provisions of the CETA on subsidies, which are contained in 
the incorporated Chapter 7. Subsidies, fulfilling the conditions set out in Article 1.1 of the WTO 
Subsidies and Countervailing Measures (SCM) Agreement, are covered only if they are specific within 
the meaning of Article 2 of the SCM Agreement  (incorporated Article 7.1) . Moreover, nothing in the 
Agreement applies to subsidies or Government support for audio -visual s ervices for the United 
Kingdom and cultural industries for Canada (incorporated Article 7.7).  
3.89.  The incorporated Chapter 7 also contains disciplines on  notification obligations ( incorporated 
Article 7.2),  consultations on subsidies and Government support to sectors other than agriculture WT/REG419/1  
 
- 34 - 
 
  and fisheries  (incorporated Article 7.3) . With regard to consultations on subsidies for agricultural 
goods and fisheries products however, the Parties share the objective of working  jointly to reach an 
agreement to further en hance multilateral disciplines and rules on agricultural trade in the WTO, and 
to help develop a global, multilateral resolution to fisheries subsidies  (incorporated Article 7.4) . 
Moreover, a Party shall not adopt or maintain an export subsidy on an agricu ltural good that is 
exported, or incorporated in a product that is exported, to the territory of the other Party after the 
other Party has fully eliminated the tariff, immediately or after the transitional period, on that 
agricultural good in accordance wi th the tariff elimination schedule under incorporated Annex 2 -A 
(incorporated Article 7.5 ). 
3.90.  The Parties reaffirm their rights and obligations under Article VI of GATT 1994, the SCM 
Agreement and the WTO Agreement on Agriculture (incorporated Article 7.8).  
3.91.  The dispute settlement mechanism under Chapter 29 is not applicable to the provisions of the 
incorporated Chapter 7 related to consultations on subsidies and government support in industrial 
sectors ( incorporated Article 7.3) and in agricultural goods and fisheries products ( incorporated 
Article 7.4).  
3.5.5   Customs -related procedures  
3.92.  The Agreement incorporates the provisions of the CETA on customs and trade facilitation, 
which are contained in the incorporated Chapter 6.58  
3.93.  The WTO Agreement on Customs Valuation governs the customs valuation rules applied by 
the Parties to their reciprocal trade (incorporated Article 6.4).  
3.94.  Cooperation on customs matters, including in relation to any agreement or arrangement 
governing customs cooperation and mutual assistance in cu stoms matters between the UK and 
Canada, is governed by  the incorporated Article 6.13.  
3.95.  The Committee on Customs and Trade Facilitation (CCTF Committee), established under the 
incorporated and modified CETA, ensures the proper functioning of the incorporate d Chapter 6, as 
well as  the incorporated Articles 2.8 (temporary suspension of preferential tariff treatment) and 
20.43 (Scope of border measures). It may also consider, inter alia , further measures aimed at 
facilitating trade between the Parties or any is sue regarding customs and trade facilitation that are 
referred to it by a Party.  
3.96.  Moreover, each Party, shall designate or maintain one or more contact points to address 
inquiries by interested persons concerning customs matters and make available on the in ternet 
information concerning the procedures for making such inquiries (incorporated Article 6.2).  
3.5.6   Other regulations  
3.6  Sector -specific provisions on trade in goods  
3.6.1    Pharmaceutical products  
3.97.  A Protocol on the Mutual Recognition of the Compliance and Enforcemen t Programme 
regarding Good Manufacturing Practices for Pharmaceutical Products is attached to the CETA and 
incorporated , with few adjustments,  into the Agreement (see the Section on technical barriers to 
trade). 
 
58 In particular,  Articles 6.1 through 6.13 contain pr ovisions on transparency in requirements for the 
import or export of goods; release of goods, in particular simplified customs procedures, post -entry accounting 
and verification, expedited release of goods; cooperation and coordination to facilitate trade;  classification of 
goods; the publication of fees and charges; the requirement to base shipment examination, release and post -
entry verification procedures on risk assessment principles; the use of automation to expedite customs 
procedures and release of g oods; the issuance of advance rulings on tariff classification; the review and appeal 
of administrative action or official decisions taken for the import of goods; the imposition of penalties for 
breaches of customs laws; and the preservation of confidenti al information.  WT/REG419/1  
 
- 35 - 
 
  3.6.2   Fisheries and aquaculture products  
3.98.  On trade in fisheries and aquaculture products (incorporated Article  24.11) , the Parties 
undertake to: (i) adopt or maintain effective monitoring, control and surveillance measures, aimed 
at the conservation of fish stocks and the prevention of overfishing; (ii) ad opt or maintain actions 
and cooperate to combat illegal, unreported and unregulated fishing; (iii) cooperate with , and where 
appropriate in,  regional fisheries management organisations with the aim of achieving good 
governance; and (iv) promote the develop ment of an environmentally responsible and economically 
competitive aquaculture industry.  
3.6.3   Motor vehicles  
3.99.  The Agreement incorporates the provisions of the CETA including the Parties'  commitments 
with respect to cooperation in the field of motor vehicle reg ulations, which are contained in the 
incorporated Annex 4 to the CETA. The purpose of the Annex is to strengthen cooperation and 
communication, including the exchange of information on motor vehicle safety and environmental 
performance research activities for the development of new technical regulations or related 
standards, to promote the application and recognition of Global Technical Regulations under the 
framework of the 1998 Global Agreement and possible future harmonization between the Parties 
concern ing improvements and other developments in motor vehicle technical regulations or related 
standards. The Parties' commitments to increase cooperation involve identifying areas of 
cooperation; defining forms of cooperation; engaging in technical consultatio ns with respect to 
selected UN regulations; and giving positive consideration to the other Party's technical regulations. 
Moreover, they recognize their mutual interest to cooperate with the United States in the field of 
motor vehicle technical regulations . If the UK and the US conclude an agreement or an arrangement 
on the harmonization of their respective technical regulations related to motor vehicles, the Parties 
shall cooperate with a view to determining whether they should conclude a similar agreement  or 
arrangement.  
4  PROVISIONS  ON TRADE IN SERVICES AND INVESTMENT  
4.1.  The Agreement incorporates relevant aspects on the  liberalization of trade in services and 
investment as stated in Chapter s 8 (Investment); 9 (Cross -border trade in services); 10 (Temporary 
entry and stay of natural persons for business purposes); 11 (Mutual recognition of professional 
qualifications); 12  (Domestic regulations); 13 (Financial services); 14 (International maritime 
transport services), and 15 (Telecommunications) and related Annexes and Appendices  to the CETA . 
Such provisions are made part of the Agreement and apply, mutatis  mutandis , subjec t to 
modifications provided for in Annexe A to the Agreement , which are listed in Box 4.1  below.  
Box 4.1 Overview of modifications to the CETA provisions on trade in services and 
investment  
Chapters 
of the 
CETA  Title/description  CETA Provisions modified through  
Annex A to the Agreement  
Chapter 8  Investment  Section A:  
Definitions and 
Scope  Art. 8.1  
Art. 8.2  Definitions  
Scope  
  Section C:  
Non-discriminatory 
treatment  Art. 8.6  
Art. 8.7  
 National treatment  
Most-favoured -nation treatment  
 
  Section D:  
Investment 
protection  Art. 8.9  
 Investment and regulatory 
measures  
  Section E: 
Reservations and 
exceptions  Art. 8.15  
 Reservations and exceptions  
  Section  F:  
Resolution of 
investment disputes 
between investors 
and states  Art 8.19  
Art. 8.21  
 
 
Art. 8.22  
 
 Consultations  
Determination of the respondent 
for disputes with the European 
Union or its Member States  
Procedural and other 
requirements for the submission 
of a claim to the Tribunal  WT/REG419/1  
 
- 36 - 
 
  Chapters 
of the 
CETA  Title/description  CETA Provisions modified through  
Annex A to the Agreement  
Art. 8.36  
Art. 8.37  
Art. 8.38  
Art. 8.44  
 
Art. 8.45  Transparency of proceedings  
Information sharing  
Non disputing Party  
Committee on Services and 
Investment  
Exclusion  
Chapter 9  Cross -border trade 
in services   Art. 9.2  
Art. 9.3 
Art. 9.5  
Art. 9.7  Scope  
National treatment  
Most-favoured -nation treatment  
Reservations  
  Annex 9 -A  Understanding on national 
treatment with respect to the 
cross-border supply of services  
  Annex 9 -C  Understanding on courier 
services  
Chapter 10  Temporary entry 
and stay of natural 
persons for business 
purposes   Art. 10.5  
Art. 10.7  
Art. 10.9  Contact points  
Key personnel  
Short -term business visitors  
  Annex 10 -A  List of contact points of the 
member states of the European 
Union  
  Annex 10 -B  Reservations and exceptions 
applying in specific member 
states of the European Union for 
key personnel and short -term 
business visitors  
  Annex 10 -C  Equivalent qualifications for 
engineering technologists and 
scientific technologists  
  Annex  10-D  Activities for short -term 
business visitors  
  Annex 10 -E  Sectoral commitments on 
contractual service suppliers 
and independent professionals  
  Annex 10 -F  Understanding on spouses of 
intra corporate transferees  
Chapter 11  Mutual  recognition 
of professional 
qualifications   Art. 11.1  
Art. 11.2  Definitions  
Objectives and scope  
Chapter 13  Financial services   Art. 13.10  
Art. 13.18  
Art. 13.19  Reservations and exceptions  
Financial Services Committee  
Consultations  
  Annex 13 -A  Cross -border supply of financial 
services  
Schedule of the United Kingdom  
Chapter 14  International 
maritime services   Art. 14.1  
Art. 14.2  
Art. 14. 4 Definitions  
Scope  
Reservations  
Annex I  Reservations for 
existing measures 
and liberalisation 
commitments    Reservations applicable in the 
EU 
Reservations applicable in the 
UK 
Reservations applicable in 
Canada - Federal (applicable in 
all Provinces and Territories)  
Schedule of Canada – Provincial 
and Territorial  
Annex II  Reservations for 
future measures    Reservations applicable in the 
EU 
Reservations applicable in 
Canada (applicable in all 
Provinces and Territories)  
Source:  WTO Secretariat based on the Agreement.  WT/REG419/1  
 
- 37 - 
 
  4.1  Scope  and definitions  
4.2.  The Agreement incorporates the provi sions of Chapter 8 (Investment) of the CETA, which apply 
to measures adopted or maintained by a Party in its territory relating to investors of the other Party, 
covered investment59, and any investment in its territory60 (with respect to the incorporated 
Article 8.5 on performance requirements).  
4.3.  With respect to the establishment or acquisition of a covered investment, some sections of the 
incorporated Chapter 8 do not apply to measures relating to activities carried out in the exercise of 
governmental auth ority and air services, or related services in support of air services and other 
services supplied by means of air transport .61 In addition, certain sections of the incorporated 
Chapter 8 do not apply to measures with respect to (i) for the UK, audio -visual services and (ii) for 
Canada, cultural industries. The provisions on market access, national treatment and most -favoured -
nation treatment do not apply to (i) procurement by a Party, under certain conditions; and (ii) 
subsidies, or government support rela ting to trade in services, provided by a Party. The provisions 
of the i ncorporated Chapter 8 also do not affect the rights and obligations of the Parties on any 
agreement or arrangement governing air services between Canada and the United Kingdom62, and 
do not apply to measures to the extent that they apply to investors or to their investments covered 
by the incorporated Chapter 13 (Financial Services).  
4.4.  Under the Agreement, in the incorporated Chapter 8  references to the EU and/or EU Member 
States have been replaced with the UK in the following definitions: "natural person"63, "non -disputing 
Party"64, "respondent" .65 
4.5.  The Agreement also incorporates the provisions of Chapter 9 (Cross -border trade in services ), 
which apply to measures adopted or maintained by a Party affecting cross -border trade in services66 
by a service supplier of the other Party. This includes a meas ure affecting the production, 
distribution, marketing, sale, and delivery of a service; the purchase or use of, or payment for, a 
service; and the access to and use of, in connection with the supply of a service, services which are 
required to be offered t o the public generally. The incorporated Chapter 9 does not apply to measures 
affecting: (i) services supplied in the exercise of governmental authority; (ii) procurement by a 
Party, under certain conditions67; and (iii) a subsidy or other governmental sup port relating to cross -
border trade in services, provided by a Party. It does not apply either to measures affecting (i) for 
 
59 Definition of " covered investment " as stated in the incorporated Article 8.1 of the CETA has been 
modified as follows: in sub -paragraph (d), "the date of entry into force of this Agreement " has been replaced 
with "21 September 2017 " to reflect the date of provisional application of the CETA.  
60 Under the Agreement, in the incorporated Article  8.2.1, the footnote following the word "territory " is 
modified by replacing "to which the Treaty on European Union and the Treaty on the Functioning of the European 
Union are applied " with "of the UK ". 
61 The following air transport services are covered by the Agreement: aircraft repair and maintenance 
services; the selling and marketing of air transport services; computer reservation system  (CRS) services; 
ground handling services; airport operation services.  
62 Under the Agreement, in the incorporated paragraph 8.2.5, "the Agreement on Air Transport between 
Canada and the European Community and its Member States, done at Brussels on 17 Dece mber 2009 and Ottawa 
on 18 December 2009 " has been  replaced with "any agreement or arrangement governing air services between 
Canada and the United Kingdom ". The same modification applies to the incorporated Article 9.2.3.  
63 Modifications to the definition  of "natural person " as in the incorporated Art. 8.1 are as follows: (i) the 
text in sub -paragraph (b) is replaced with "in the case of the UK, a natural person who is a national of the UK. "; 
(ii) in the second paragraph, "has the nationality of one of the  Member States of the European Union " is replaced 
with "a national of the UK "; and (iii) in the third paragraph, "has the nationality of one of the Member States of 
the European Union " is replaced with "is a national of the UK ". 
64 Under the Agreement, in the incorporated Art. 8.1 t he definition of "non-disputing Party " is replaced 
with: "non-disputing Party  means Canada, if the UK is the respondent, or the UK, if Canada is the respondent .". 
65 Under the Agreement, in the incorporated Art. 8.1 the definition of "respondent " is replaced with: 
"respondent  means Canada or the UK; ". 
66 Under the incorporated Agreement, the term "cross -border trade in services or cross -border supply of 
services" means the supply of a service from the territory of a Pa rty into the territory of the other Party (mode 
1); or in the territory of a Party to the service consumer of the other Party (mode 2), but does not include the 
supply of a service in the territory of a Party by a person of the other Party (mode 4).  
67 The incorporated Chapter 19 contains specific disciplines applicable to government procurement. See 
corresponding section.  WT/REG419/1  
 
- 38 - 
 
  the UK, audio -visual services; (ii) for Canada, cultural industries68; (iii) financial services69; and (iv) 
certain air services, o r related services in support of air services and other services supplied by 
means of air transport .70 Moreover, the incorporated Chapter 9 does not affect the rights and 
obligations of the Parties on any agreement or arrangement governing air services bet ween Canada 
and the United Kingdom.71 
4.6.  The Agreement follows  the same approach as in the CETA72 with regards to the  scheduling of 
the Parties' commitments: a "negative list" approach for investment and cross -border trade in 
services , and a "positive list" approach for cross -border trade in financial services (modes 1 and 2) 
and temporary entry and stay of contractual services supplie rs and independent professionals.  
4.7.  Modifications to the incorporated Parties' schedules to Annex I (exis ting non -confirming 
measures) and Annex II (future measures) to the CETA are described in respective parts of this 
factual presentation. Annex III ( Canada's existing and potential future non -conforming measures 
with respect to financial services) to the CE TA has been incorporated fully.  
4.2  Denial of benefits  
4.8.  The Agreement fully incorporates the provisions on denial of benefits . Incorporated Articles 
8.16 (Investment) and 9.8 (Cross -border trade in services) clarify that a Party may conditionally 
deny the bene fits of Chapters 8 and 9, respectively, to an investor of the other Party (enterprise) 
and to investments of that investor, or to a service supplier of the other Party (enterprise) and to 
services of that service supplier, if the enterprise is owned or con trolled by an investor or a service 
supplier of a third -party.  
4.3  General provisions on trade in services and investment  
4.9.  The Agreement incorporates , mutatis  mutandis , the CETA's general provisions on trade in 
services and investment that are summarized below but which should be also read in conjunction 
with the incorporated Annexes I, II and III , as modified .  
4.3.1   Market  access  
4.10.  The Agreement fully incorporates  market access provisions as stated in  the incorporated  
Articles 8.4 (Investment), 9.6 (Cross -border trade  in services) and 13.6 (Financial services).73  
 
 
68 Under the incorporated Agreement, "cultural industries" means persons engaged in: 1) the publication, 
distribution or sale of books, ma gazines, periodicals or newspapers in print or machine -readable form, except 
when printing or typesetting any of the foregoing is the only activity; 2) the production, distribution, sale or 
exhibition of film or video recordings; 3) the production, distrib ution, sale or exhibition of audio or video music 
recordings; 4) the publication, distribution or sale of music in print or machine -readable form; or 5) radio -
communications in which the transmissions are intended for direct reception by the general public , and all radio, 
television and cable broadcasting undertakings and all satellite programming and broadcast network services 
(incorporated Chapter 1, Section A, Article 1.1).  
69 Under the incorporated Agreement, the term "financial services" means a service  of a financial nature, 
including insurance and insurance -related services, banking and other financial services (excluding insurance), 
and services incidental or auxiliary to a service of a financial nature. The incorporated Article 13.1 contains an 
indicative list of activities falling under the definition of "financial services". The incorporated Chapter 13 contains 
specific disciplines applicable to financial services. See corresponding section below.  
70 The following air transport services are covered by the Agreement: aircraft repair and maintenance 
services; the selling and marketing of air transport services; computer reservation system (CRS) services; 
ground handling services; airport operation servi ces. 
71 Under the Agreement, in the incorporated Article 9.2.3, "the Agreement on Air Transport between 
Canada and the European Community and its Member States, done at Brussels on 17 December 2009 and Ottawa 
on 18 December 2009 " has been replaced with "any agreement or arrangement governing air services between 
Canada and the United Kingdom ". 
72 For further details, see section 4.1 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1.  
73 For further details, see sec tion 4.3.1 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1 . WT/REG419/1  
 
- 39 - 
 
  4.3.2   National and MFN treatment  
4.11.  For cross -border trade in services, the Agreement incorporates with modifications Articles 9.3 
and 9.574, which contain national treatment and MFN clauses applicable to the Parties ' service 
suppliers and services. In the incorporated Annex 9 -B, however, the Parties agree that  the 
incorporated Articles 9.3 and 9.5 do not apply to measures relating to a new service that cannot be 
classified in the CPC 1991.  
4.12.  There are similar provision s on investment , with modifications , in the incorporated Articles 
8.6 and 8.775 with respect to the Parties' investors and covered investments when they are related 
to the establishment; acquisition; expansion; conduct; operation; management, maintenance, use, 
enjoyment and sale or disposal of investments in the territory of a Party.  
4.13.  National and MFN treatment is granted by sub -federal authorities in Canada, with respect to 
the treatment accorded, in like situations, by that authority to services, service suppliers, investors 
of Canada in its territory and to the investments of such in vestors. A similar approach is followed  for 
the treatment accorded by a government in the UK, other than the central government. Moreover, 
modifications to the incorporated Annex 9 -A76 further clarify the Parties' mutual understanding of 
the application of the national treatment obligation to cross -border trade in services by a provincial 
or territorial government in Canada, or by a regional government of the UK .77 In that context, inter 
alia, the treatment granted pursuant to the Canadian Free Trade Agreement (between the 
Government of Canada and the governments of the provinces and territories of Canada – CFTA - 
dated 1 July 2017)78, and the treatment accorded by a regional government of the UK to a service 
supplier which is a person of another regional government of the UK, or to a service supplied by this 
supplier, shall not be affected by the Parties' commitment to apply the national treatment obligation.  
4.14.  Through the fully incorpora ted Articles 13.3, 13.4, and 13.7, the provisions on national and 
MFN treatment in the incorporated Chapters 8 (Investment79) and 9 (Cross -border trade in 
services80) apply to financial institutions, investors of a Party and their investments in financial 
institutions, and cross -border financial services suppliers.  
4.15.  The provisions on MFN and national treatment (and the Parties' related commitments) are set 
out in the incorporated Articles 8.6 and 8.7 , for investment, and in the incorporated Articles 9.3 and  
9.5, for cross -border trade in services. In the incorporated Annexes I, II, and/or III , the Parties list 
the non -conforming measures81 they are permitted to retain and the future non -conforming 
measures they are able to put in place, and also indicate whe n they are inconsistent with MFN and/or 
national treatment. Moreover, the incorporated commitment to grant MFN treatment to investors of 
the other Party and covered investments does not apply to treatment accorded by a Party providing 
for recognition, incl uding through an arrangement or agreement with a third that recognizes the 
accreditation of testing and analysis services and service suppliers, the accreditation of repair and 
maintenance services and service suppliers, as well as the certification of the  qualifications of or the 
results of or work done by those accredited services and service suppliers.  
 
74 Under the Agreement, in the incorporated Articles 9.3.2 and 9.5.2, and paragraph 1 of Annex 9 -A to 
the CETA, references to "government of or in a Member State of t he European Union " are replaced with "in the 
UK, other than the central government ". 
75 Under the Agreement, in the incorporated Articles 8.6.3 and 8.7.2, references to "government of or in 
a Member State of the European Union " are replaced with "in the UK,  other than the central government ". 
76 Understanding on national treatment with respect to the cross -border supply of services.  
77 Under the Agreement, in the paragraph 2.b of the incorporated Annex 9 -A, the reference to a 
government/regional government of the EU Member State has been replaced with the UK and reads as follows: 
"in the case of the UK, a regional government of the UK accords more favourable treatment to a service supplier 
which is a person of another regional government of the UK, or to a service supplied by this supplier; and ". In 
paragraph 3 of  the incorporated Annex 9 -A, the reference to the Treaty on the Functioning of the European Union 
has not been incorporated.  
78 Under the Agreement, "Canadian Agreement on Internal Trade, dated 18 Ju ly 1994 " is replaced with 
"Canadian Free Trade Agreement, dated 1 July 2017 " and "AIT" is replaced with "CFTA". 
79 In particular, the incorporated Articles 8.6 and 8.7.  
80 In particular, the incorporated Articles 9.3 and 9.5.  
81 Reference to the existing non -confirming measures maintained at the level of the European Union and 
listed in Annex I have been removed from the provisions of Articles 8.15.1(a), 9.7.1(a), 13.10 and 14.4.1. Such 
modifications are further described in section 4.6 of this factual present ation.  WT/REG419/1  
 
- 40 - 
 
  4.3.3   Commercial (local) presence82 
4.16.  The Agreement incorporates , without modification,  the provisions of Article 9.4 ( Formal 
requirements) of the CETA with resp ect to cross -border trade in services.83  
4.3.4   Performance requirements  
4.17.  The Agreement incorporates , without modification,  the provisions on performance 
requirements as stated in Chapter s 8 (Investment)84 and 13 (Financial services)85 of the CETA .86  
4.18.  With respect to investment in financial institutions, further to the incorporated Article 13.9, 
the Parties commit to negotiate disciplines on performance requirements such as those  contained  in 
the incorporated Article 8.5. If the Parties have not agreed to su ch disciplines after three years of 
entry into force of the Agreement, the content of  Article 8.5 of the CETA shall be incorporated into 
and made a part of the incorporated Chapter 13 and shall apply to investment in financial institutions. 
If and when per formance requirement provisions are made applicable to investments in financial 
institutions, the Parties may amend their Schedules as required and as detailed in the incorporated 
Article 13.9. The Parties ha ve confirmed that no negotiations have begun on the disciplines on 
performance requirements . 
4.19.  Reservations are nevertheless made for qualification requirements for a good or service with 
respect to participation in export promotion and foreign aid program mes. Moreover, Government 
procurement is excluded from the coverage of the commitments on performance requirements. The 
Parties' commitments on performance requirements do not apply when a reservation against those 
commitments has been taken with respect to non -conforming measures and/or sectors list ed in the 
incorporated Annexes I, II, and/or III.  
4.3.5    Senior Managers and Boards of Directors  
4.20.  The Agreement incorporates , without modification,  provisions on senior managers and board 
of directors in Chapters 8 (Investment)87 and 13 (Financial services)88 of the C ETA.89 
4.3.6   Movement of natural persons  
4.21.  The Agreement replicates the rules governing temporary entry and stay of natural persons 
for business purposes in Chapter 10 of the CETA90 except for the following:  
- contact points for Canada91 and the UK92 have been updated93; and  
 
 
82 Canada clarifies that there are no "local presence" commitments, per se, in Chapter 9 of the 
incorporated Agreement that covers cross -border trade in services. However, incorporated Article 9.4 contains 
disciplines on "formal requirements", which are described in this section of the factual presentation.  
83 For further details, see section 4.3.3 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1.  
84 The incorporated Article 8.5.  
85 The incorporated Article 13.9.  
86 For furth er details, see section 4.3. 4 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1 . 
87 The incorporated Article 8.8.  
88 The incorporated Article 13.8.  
89 For further details, see section 4.3.5 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1 . 
90 For further details, see section 4.3.6 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1.  
91 Sub-paragraph 10.5.1(a) of the CETA  is replaced with " Director , Temporary Resident Policy and 
Programs , Immigration Branch , Department  of Citizenship and Immigration".  
92 Sub-paragraph 10.5.1(b) of the CETA  is replaced with " Head of Services,  Department for International 
Trade".  
93 Sub-paragraph 10.5.1(c) of the CETA  that has not been incorporated reads as follows: " in the case of 
the Mem ber States of the European Union, the contact points listed in Annex10 -A or their respective successors" . 
In the incorporated paragraph 10.5.2 ", and as appropriate the contact points for Member States of the European 
Union, " has been deleted.  WT/REG419/1  
 
- 41 - 
 
  - rights granted to Canada under bilateral visa waivers by the EU Member States regarding the 
permissible length of stay of business visitors for investment purposes94 and the maximum length 
of stay of short -term business visitors95 have not been incorporated.  
4.22.  Modifications that concern provisions related to granting of temporary entry and stay of key 
personnel, contractual services suppliers, independent professionals and short -term business 
visitors are  listed in Box 4.2  below.  
Box 4.2 Overview of modifications to Chapter 10 (Temporary entry and stay of natural 
persons for business purposes) of the CETA  
Annexes to 
Chapter 10  
of the CETA  Title/description  Modifications introduced by  
Annex  A to the Agreement  
Annex 10 -A List of contact points of 
the member states of 
the European Union  
 Annex 10 -A has not been incorporated to the Agreement.  
Annex 10 -B Reservations and 
exceptions applying in 
specific member states 
of the European Union 
for key personnel and 
short-term business 
visitors  
 Heading of Annex 10 -B has been replaced with a reference to the 
UK96; 
Reservations and exceptions for key personnel and for short -term 
business visitors have been adjusted to reflect measures that 
apply t o the UK97 and are as follows:  
o Business visitors for investment purposes  (all sectors):  
Permissible length of stay: up to 90 days in any twelve -
month period. Business visitors needs to be employed by 
an enterprise other than a non -profit organisation, 
otherwise: Unbound.  
o Investors  (all sectors): The category of investors is not 
recognised: Unbound.  
o Intra-corporate transferees (specialists and senior 
personnel) (all sectors):  
Intra-corporate transferees need to be employed by an 
enterprise  other than a non -profit organisation, 
otherwise: Unbound.  
o Intra-corporate transferees (graduate trainees)  (all 
sectors):  
Graduate trainee needs to be employed by an enterprise 
other than a non -profit organisation, otherwise: 
Unbound.  
o Short -term busines s-visitors  (all activities in Annex 10 -D): 
The category of short -term business visitors is not 
recognised: Unbound.98 
Annex 10 -C Equivalent 
qualifications for 
engineering 
technologists and 
specific technologists  Annex 10 -C has not been incorporated to the Agreement.  
Annex 10 -D Activities for short -
term business visitors  Annex 10 -D has not been incorporated to the Agreement.  
Annex 10 -E99 Sectoral commitments 
on contractual service References to the EU Member States' commitments and 
reservations has not been incorporated100;  
 
94 In Article 10.7.5(d), the footnote that has not been incorporated reads as follows: " This is without 
prejudice to the rights granted to Canada under bilateral visa waivers by Member States of the European Union".  
95 In Article 10. 9.3, the footnote that has not been incorporated reads as follows: " This is without prejudice 
to the rights granted to Canada under bilateral visa waivers by Member States of the European Union".  
96 In the heading of the incorporated Annex 10 -B, "specific Member States of the Europea n Union " has 
been replaced with "the UK ". 
97 Under the Agreement, in the incorporated Annex 10 -B in each table in paragraphs 3 through 6: in the 
first column, "UK – " has been added before "All Sectors "; and in the second column, "UK:" has been deleted.  
Paragraph 2 of Annex 10 -B of the CETA  has not been incorporated . 
98 Under the Agreement, in the incorporated Annex 10 -B in the table in paragraph 7, in the first row, in 
the first column, "UK –" has been added before "All Activities in An nex 10 -D", and in the second column, "UK:" 
has been deleted; and the remaining rows of the table has not been incorporated.  
99 In the incorporated Annex 10 -E, in paragraph 11, in the second column, in each place where it occurs 
before "UK", "In" has been deleted.  
100 Paragraph 6 of Annex 10 -E that has not been incorporated, reads as follows: "The European Union 
takes commitments wit h respect to Article 10.8 differentiated by its Member States, as set out in the list of WT/REG419/1  
 
- 42 - 
 
  Annexes to 
Chapter 10  
of the CETA  Title/description  Modifications introduced by  
Annex  A to the Agreement  
suppliers and 
independent 
professionals  
 Reservations for "Technologists" have not been incorporated101;  
For research and development services, the footnote clarifying the 
scope of CPC 852102 has not been incorporated; and the 
reservations by the EU Member States have been replaced with 
the UK for contractual services suppliers (CSS)103 and for 
independent professionals (IP) .104 
Annex 10 -F Understanding on 
spouses of intra 
corporate transferees  
 - Privileges granted under the ICT Directive105 to spouses of 
Canadian citizens who are intra -corporate transferees to the 
European Union, have not been incorporated106; 
- In the treatment of spouses of ITCs, references to the EU 
Member States have been replaced with the UK.107  
Source:  WTO Secretariat based on the Agreement.  
4.4  Liberalization commitments  
4.23.  The Parties incorporate, mutatis  mutandis , liberalization commitments on trade in services 
and investment in the respective Annexes to  the CETA. Modifications to the incorporated Annexes I 
and II are reflected in Annex A to the Agreement and described in  the respective parts of the present 
factual presentation.  
4.24.  The sections below compare the Parties' liberalization commitments under the Agre ement and 
the GATS. Each Party's GATS schedule is compared to the incorporated Annexes I, II and III to the 
Agreement. Tables 4.1 and 4.2 summarize, sometimes in a rather broad manner, specific 
commitments under the Agreement, by sectors and sub -sectors an d compare them with the GATS 
commitments. Improvements over existing GATS commitments include a reduction in market access 
and/or national treatment limitations, a relaxation of the form of establishment under mode  3, 
and/or additional commitments and/or i mproved sectoral coverage. Horizontal limitations in the 
GATS Schedule of Specific Commitments and reservations covering all sectors are not included in 
the tables but are addressed separately. Mode 4 commitments and limitations are, to a large extent, 
also excluded from the tables. The following sections are to be read in conjunction with the Parties' 
reservations and respective modifications introduced by the Agreement. It should be noted that a 
Party's reservations and the Agreement can be more specific than the general classifications used 
to schedule GATS sectors/subsectors.  
 
reservations included in this Annex.".  The footnote s to incorporated paragraph s 9 and 10  of Annex 10 -E that 
have not been incorporated, read as follows: "A reservation  for legal services described in Annexes I or II by a 
Member State for 'domestic law' as covering 'EU and Member State law' applies to this Annex."  
101 In paragraph 11 of the incorporated Annex 10 -E, in the row relating to "All Sectors ", the entry relating 
to "Technologists " has been  replaced with the following: "Annex 10 -C does not apply to the UK ".  
102 Under the Agreement, the footnote for "CPC 852 excluding psychologists services" that has not been 
incorporated, reads as follows: "Part of CPC 85201, which is under medical and dental services."  
103 In the incorporated Annex 10.11 -E the EU 's entries for CS S have been  replaced with the following "UK: 
None, except: A hosting agreement with an approved research organisation is required. ". Also, the footnote that 
refers to the EU Member States reservations has not been incorporated and reads as follows: " For al l Member 
States of the European Union except UK and DK, the approval of the research organisation and the hosting 
agreement must meet the conditions set pursuant to EU Directive 2005/71/EC of 12 October 2005."   
104 In the incorporated Annex 10.11 -E the EU 's entries for IP have been  replaced with the following "UK: 
None, except: A hosting agreement with an approved research organisation is required. ". Also, the footnote that 
refers to the EU Member States reservations has not been incorporated and reads as fol lows: "  For all Member 
States of the European Union except the UK and DK, the approval of the research organisation and the hosting 
agreement must meet the conditions set pursuant to EU Directive 2005/71/EC of 12 October 2005."  
105 Directive 2014/66/EU of th e European Parliament and of the Council of 15 May 2014 on the 
conditions of entry and residence of third -country nationals in the framework of an intra -corporate transfer.  
106 Paragraph 1 of Annex 10 -F of the CETA has not been incorporated.  
107 In the incorporated paragraph 2 of Annex 10 -F, "in the Member State of origin of the European Union 
intra-corporate transferee " has been replaced with "to the UK ". WT/REG419/1  
 
- 43 - 
 
  4.4.1   Canada  
4.25.  Canada incorporates, mutatis  mutandis , its reservations for existing and future measures as 
stated in Annex I and II to CETA with modifications described below. Annex III (Sc hedule of Canada 
on financial services) to the CETA has been replicated without modification .108  
MFN and horizontal  commitments  
4.26.  Canada incorporates, mutatis  mutandis , most of its horizontal restrictions that are listed in 
Annex es I, II and III to CETA with  modifications concerning an increase in the review thresholds to 
CAD 398 million in 2018  for a direct acquisition of control by a non -Canadian State-owned enterprise 
of a Canadian business.109  
Sector specific commitments  
4.27.  Canada incorporates, mutatis mutandis , its sector -specific reservations in Annex es I, II and 
III to the CETA except for transport services, where modifications have been made.  
4.28.  For road transportation services, under the Agreement it has been further clarif ied that 
conditions for registration in the bulk trucking register apply for a heavy -vehicle operator located 
outside Québec but in the territory of a party to the Canadian Free Trade Agreement (CFTA) .110  
4.29.  For selling and marketing of air transport services111 and ground handling services112, the 
modifications clarify that Canada's reservation does not  affect the rights and obligations of the 
Parties on any agreement or arrangement governing air services between Canada and the United 
Kingdom.  
4.30.  In the reservatio n concerning the measures affecting investment in or supply of marine 
cabotage services, the reference to the EU vessels registry has been replaced with the one applicable 
in the UK.113 
4.31.  The following  Table 4.1 identifies some of the main differences, by sec tor, between Canada's 
GATS schedule and its sector -specific commitments under the Agreement. It should also be read in 
conjunction with the incorporated Annexes I, II, and III.  
4.32.  Canada's Schedule clarifies that its reservations in the Annexes are without p rejudice to the 
rights and obligations of the Parties under the GATS.  
 
108 For further details, see section 4.4 .1 of the factual presentation on the EU -Canada FTA in  document 
WT/REG389/1/Rev.1.  
109 In the incorporated reservation I -C-1, in paragraph 3 of the Description element, "CAD 369 million in 
2015" has been replaced with "CAD 398 million in 2018 ". 
110 In the incorporated reservation I -PT-146, in paragraph 1 of the D escription element, "Agreement on 
Internal Trade " has been replaced with "Canadian Free Trade Agreement ". 
111 In the incorporated reservation II -C-13, in paragraph 2 of the Description element, "the Agreement on 
Air Transport Between Canada and the European Community and its Member States, done at Brussels on 17 
December 2009 and Ottawa on 18 December 2009 " has be en replaced with "any agreement or arrangement 
governing air services between Canada and the United Kingdom ". 
112 In the incorporated reservation II -C-18, in paragraph 2 of the Description element, "the Agreement on 
Air Transport Between Canada and the Europ ean Community and its Member States, done at Brussels on 17 
December 2009 and Ottawa on 18 December 2009 " has been replaced with "any agreement or arrangement 
governing air services between Canada and the United Kingdom ". 
113 In the incorporated reservation II-C-14, in sub -sub-paragraph 4(b)(i) of the Description element, "the 
first (national) registries referred to in paragraph 1 of the Annex to Commission communication C(2004) 43 – 
Community guidelines on State Aid to maritime transport " has been replaced with "the first national register of 
the United Kingdom ". In the incorporated sub -sub-paragraph 4(b)(ii) of the Description element, "first (national) 
or second (international) registries referred to in paragraphs 1, 2, and 4 of the Anne x to Commission 
communication C(2004) 43 – Community guidelines on State Aid to maritime transport " has been replaced with 
"first national register of the United Kingdom or the Gibraltar registry ". WT/REG419/1  
 
- 44 - 
 
  Table 4.1 Canada: comparison between the GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Full Partial  Full 
B. Computer  and Related  Services  Partial  Improved  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Real  Estate  Services  Partial  Improved  Partial  Full Full Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Full Full Full Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- New Partial  Full Partial  Full 
B. Courier  services  Partial  Improved  Partial  Full Full Full 
C. Telecommunication  services  Partial  Improved  Full Full Partial  Full 
D. Audiovisual services  --- Similar  Excluded  Excluded  Excluded  Excluded  
E. Other  --- New Full Full Full Full 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Partial  Partial  Partial  Partial  
C. Installation  and assembly  work  Full Same  Full Full Full Full 
D. Building  completion  and finishing  work  Full Same  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
5. Education services b       
A. Primary education services  --- New Partial  Partial  Partial  Partial  
B. Secondary education services  --- New Partial  Partial  Partial  Partial  
C. Higher education services  --- New Partial  Partial  Partial  Partial  
D. Adult education  --- New Partial  Partial  Partial  Partial  
E. Other education services  --- New Partial  Partial  Partial  Partial  
6. Environmental services        
A. Sewage services  Full Same  Full Full Full Full 
B. Refuse disposal services  Full Same  Full Full Full Full 
C. Sanitation and similar services  Full Same  Full Full Full Full 
D. Other  Partial  Improved  Full Full Full Full 
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
8. Health related and social services        
A. Hospital services  --- Same  --- --- --- --- 
B. Other Human Health Services  --- Same  --- --- --- --- 
C. Social Services  --- Same  --- --- --- --- 
D. Other  --- Same  --- --- --- --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Full Partial  Full 
B. Travel  agencies  and tour operators   
services  Partial  Improved  Partial  Full Partial  Full 
C. Tourist  guides  services  --- New Partial  Full Partial  Full 
D. Other  --- New Full Full Full Full 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  --- New Full Full Full Full 
B. News agency services  --- New Full Full Full Full 
C. Libraries, archives, museums and 
other cultural services  --- New Partial  Full Partial  Full 
D. Sporting and other recreational 
services  --- New Partial  Partial  Partial  Partial  
E. Other  --- New Full Full Full Full 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Partial (M)  Partial  Partial (M)  
B. Internal Waterways Transport  --- New Partial  Partial  Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Partial (M)  Partial  Partial (M)  WT/REG419/1  
 
- 45 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a 
D. Space  Transport  --- New Full Full Full Full 
E. Rail Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial (M)  Partial  Partial (M)  Partial  
G. Pipeline  Transport  --- New Partial  Partial  Partial  Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  Partial  Partial (M)  
I. Other  Transport  Services  --- New Partial  Partial  Partial  Partial  
12. Other services not included 
elsewhere  --- New Partial  Full Partial  Full 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
a Also incorporates reference to non -conforming measures contained in Annex III.  
b With respect to the education sector (unbound under the GATS), public education remains completely 
excluded from any liberalization commitment.  
M Modifications introduced by  the Agreement to the incorporated Canada's schedules annexed to the 
EU-Canada FTA.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
Partial:  Specific commitments subject to s ome limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment (under GATS), or full reservation (under the Agreement).  
New: New commitments (full or partial, with or without limitations) which can, i n most but not all cases, be 
seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Same:  Identical commitments.  
Similar:  Similar commitments; though possibly, in individual cases, with limite d improvements and/or limited 
additional reservations.  
Excluded: sector or subsector excluded from the coverage.  
Source:  Canada's modifications to its schedules annexed to the Agreement, Canada's schedules annexed to 
the EU -Canada FTA ( WT/REG389/1/Rev.1)  and Draft Consolidated GATS Schedule of Specific 
Commitments (S/DCS/W/CAN), prepared by the Secretariat (in 2003).  
4.4.2   The United Kingdom  
4.33.  The United Kingdom incorporates, mutatis  mutandis , the reservations for existing and future 
measures as listed at the nati onal and EU level s in Annex I and II to CETA with modifications 
described below.114 
MFN and horizontal commitments  
4.34.  In its GATS commitments the UK has a broad reservation for services considered as public 
utilities at a national or local level, and for types of establishment. Other horizontal restrictions apply 
to mode 4. Under the Agreement the UK incorporates, mutatis  mutandis , most of the EU's horizontal 
restrictions that are listed in Annex I and II to CETA115, except for the reference to Article 54 of the 
Treaty on the Functioning of the European Union in the horizontal reservation for investmen t.116 
 
114 For further details, see section 4.4.2 of the factual pr esentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1. Reference to the existing non -confirming measures maintained at the level of the European 
Union and listed in Annex I have been removed from the provisions of Articles 8.15.1(a), 9.7.1(a), 13.1 0 and 
14.4.1. References to the EU or EU Member States have been removed, or replaced with the "UK", in the 
headnotes to the incorporated Annex I and II, as well as in the list of reservations applicable in the EU (the title, 
the level of government where the reservation applies  and the  EU Member States abbreviations).  
115 For further details, see section 4.4.2.1 of the factual presentation on the EU -Canada FTA in 
document WT/REG389/1/Rev.1.  
116 In the incorporated Annex I, in the Description element, the first paragraph has been replaced with: 
"Companies or firms formed in accordance with the law of the UK and having their registered office, central 
administration or principal place of business i n the UK, including those established in the UK by Canadian 
investors, may, as regards the right of establishment, be treated more favourably than branches or agencies of 
companies or firms established outside the UK. ". The paragraph after the second parag raph has been added: 
"For greater certainty, the scope of this reservation shall not be interpreted more broadly than the scope of the WT/REG419/1  
 
- 46 - 
 
  4.35.  Under the GATS, t he UK has undertaken a number of MFN exemptions in areas such as 
audiovisual services; a variety of transport services; and financial services. A number of MFN 
exemptions have also been registered for all sectors and with respect to, inter alia, existing a nd 
future bilateral agreements with third -parties .117 Under the Agreement  the UK incorporates, mutatis  
mutandis , most of the EU's MFN exemptions listed in the incorporated Annex es I and II, except for 
the reference to the Rhine -Main-Danube link in the reservation for internal waterways transport118 
and the replacement of the "EU or the Member States of the EU" with the "UK" in the reservation 
for road and rail transport .119 
Sector specific commitments  
4.36.  Under the Agreement the UK incorporates, mutatis  mutan dis, its national list of reservations 
as well as applicable sector -specific reservations of the EU as existing and future measures (Annex es 
I and II to CETA)120 except for  business services, distribution services and transport services where 
modifications have been made.  
4.37.  Annex A to the Agreement also introduces a number of technical modifications to the 
incorporated Annex es I and II  including the replacement or removal of references to the EU or its 
Member States by the UK for the incorporated reservations in: 
- business services : professional services (legal services); research and development services; other 
business services (services incidental to fishing and services incidental to energy distribution);  
- construction and related engineering services : general construction work for civil engineering;  
- distribution services : retailing services;  
- financial services : banking and other financial services (excluding insurance);  
- health related and social services ; 
- transport  (water transport121; support ser vices for air transport; internal waterways; other 
transport services (provision of combined transport services)122; road and rail transport).  
4.38.  In addition, e diting modifications are made in business services (other business services 
(services incidental to fishing; services incidental to energy distribution) ); and transport services 
(support  services for air transport ). 
4.39.  Table 4.2 provides a comparison of the UK's GATS specific commitments with those taken 
under the Agreement. Horizontal limitat ions and MFN reservations are not taken into account in the 
table which should be read in conjunction with the Annex to the Agreement and the incorporated 
Annex es I and II of the CETA. There is, as yet, no certified UK Schedule of Specific Commitments; 
the proposed draft has been circulated in series S/C/W/380.  
 
national treatment reservation in Annex I of CETA that is applicable in the European Union and that, for the 
Measures element, refers to the Treaty on the Functioning of the European Union. ". 
117 Document S/C/W/381.  
118 In the EU MFN exemption  for internal waterways transport (CPC 722) as listed in Annex II, in the first 
paragraph of the Description element, "(includ ing agreements following the Rhine -Main-Danube link) " has been 
deleted.   
119 In the EU MFN exemption for road and rail transport ( CPC 7111, CPC 7112, CPC 7121, CPC 7122, 
CPC 7123 ) as listed in the incorporated Annex II.  
120 For further details, see section 4.4 .2.1 of the factual presentation on the EU -Canada FTA in 
document WT/REG389/1/Rev.1.  
121 The reservation of the EU in the incorporated Annex II is made for CPC 72.  
122 The reservation of the EU in the incorporated Annex I is made for the following sub -sectors: CPC 711,  
CPC 712, CPC 7212, CPC 7222, CPC 741, CPC 742, CPC 743, CPC 744, CPC 745, CPC 748, CPC 749.  WT/REG419/1  
 
- 47 - 
 
  Table 4.2 United Kingdom: Comparison between the GATS and Agreement specific 
commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
1. Business services         
A. Professional  Services123 Partial  Similar  Partial 
(M) Partial 
(M) Partial (M)  Partial (M)  
B. Computer  and Related  Services  Full Same  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  
(M) (R)  Full Partial  
(M) (R)  Full 
D. Real  Estate  Services  Full Improved  Full Full Full Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Same  Partial  Full Partial  Full 
F. Other  Business  Services  Partial  Similar  Partial (E)  Partial  
(M) (R) 
(E) Partial  
(R) (E)  Partial  
(M) (R) (E)  
2. Communication services         
A. Postal  services  - New Partial  Full Partial  Full 
B. Courier  services  - New Partial  Full Partial  Full 
C. Telecommunication  services  Partial  Improved  Full Partial  Full Partial  
D. Audiovisual services  - Same  Excluded  Excluded  Excluded  Excluded  
E. Other  - New Full Full Full Full 
3. Construction and related 
engineering services         
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Partial  Partial  Partial  Partial (R)  
C. Installation  and assembly  work  Partial  Improved  Full Full Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services         
A. Commission  agents'  services  Partial  Improved  Full Full Full Full 
B. Wholesale  trade services  Partial  Improved  Full Full Full Full 
C. Retailing  services  Partial  Improved  Full Partial 
(M) Full Partial (R)  
D. Franchising  Partial  Improved  Full Full Full Full 
E. Other  - New Full Full Full Full 
5. Education services         
A. Primary education services  Partial  Similar  Full Partial  Full Partial  
B. Secondary education services  Partial  Similar  Full Partial  Full Partial  
C. Higher education services  Partial  Similar  Full Partial  Full Partial  
D. Adult education  Partial  Similar  Full Partial  Full Partial  
E. Other education services  - Same  ---  ---  ---  ---  
6. Environmental services         
A. Sewage services  Partial  Improved  Full Full Full Full 
B. Refuse disposal services  Partial  Improved  Full Full Full Full 
C. Sanitation and similar services  Partial  Improved  Full Full Full Full 
D. Other  Partial  Improved  Full Full Full Full 
7. Financial services         
A. All insurance  and insurance -
related  services  Partial  Similar  Full Partial  Full Partial  (R) 
B. Banking  and other  financial  services  Partial  Improved  Full Partial (R)  Full Partial  (R)a 
8. Health related and social services         
A. Hospital services  Partial  Similar  -* - Partial  Partial (R)  
B. Other Human Health Services  - Same   -* - -b - 
C. Social Services  Partial  Similar  -* - Partial  Partial (R)  
D. Other  - Same  - - - - 
9. Tourism and travel related 
services         
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Full Full Full Full 
B. Travel  agencies  and tour operators   
services  Full Same  Full Full Full Full 
C. Tourist  guides  services  Full Same  Full Full Full Full 
D. Other  - New Full Full Full Full 
 
123 In the incorporated Annex I, the UK reservation for veterin ary services is listed under "Health services".  WT/REG419/1  
 
- 48 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
10. Recreational and cultural and 
sporting services         
A. Entertainment  services  Partial  Similar  Full Partial  Full Partial  
B. News agency services  Full Same  Full Full Full Full 
C. Libraries, archives, museums and 
other cultural services  - Same  --- --- --- --- 
D. Sporting and other recreational 
services  Partial  Similar  Full Partial  Full Partial  
E. Other  - New Full Full Full Full 
11. Transport services         
A. Maritime Transport Services  - New Partial (R)  Partial  (R) Partial (R)  Partial  (R) 
B. Internal Waterways Transport  - New Partial (R)  Partial (R)  Partial (R)  Partial (R)  
C. Air  Transport  Services  Partial  Improved  Partial  
(M) (R) 
(E) Partial  Partial  
(M) (R) 
(E) Partial  
D. Space  Transport  - Same  - - - - 
E. Rail  Transport  Services  Partial  Improved  Partial (R)  Partial  Partial (R)  Partial  
F. Road  Transport  Services  Partial  Similar  Partial (R)  Partial  
(M) (R)  Partial (R)  Partial  
(M) (R)  
G. Pipeline  Transport  - New Full Full Full Partial (R)  
H. Services  auxiliary  to all modes  of  
transport  Partial  Similar  Partial  
(M) (R)  Partial  Partial (R)  Partial  
I. Other  Transport  Services  Partial  Improved  Partial  (R) Full Partial  (R) Full 
12. Other services not included 
elsewhere  - New Full Full Partial  Full 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
*  No existing measures are listed under Annex I; however, cross -border trade in services for the 
mentioned sub -sectors is reserved under Annex II.  
a Modification is referred to the changes stipulated under point 8.h of Annex A to the Agreement and 
covers the EU reservation under Annex II w ith respect to market access, national treatment, cross -
border supply of banking and other financial services (excluding insurance). The UK indicates that 
that the entry for "Reserved sectors (Annex II)" for Investment should be classified as "Partial (R)"  
on the basis that the investment market access commitment is incorporated into the financial 
services commitments (if useful, please see para. 2 re 8.4.2. on market access in the middle of p. 98 
https://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_152806.pdf ). 
b Under the Agreement, the UK has incorp orated the existing EU measure, which applies, inter alia , to 
health and social services (CPC 93); however, the sub -sector "Other Human Health Services" is fully 
reserved by the U K through Annex II.  
M Modifications introduced by the Agreement to the incorp orated EU and UK schedules annexed to the 
EU-Canada FTA.  
R  Technical modifications that concern the replacement, or removal, of the references to the EU or the 
EU Member States with the UK.  
E Technical modifications that concern grammatical and formattin g corrections.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment (under GATS), or full reservation (under the Agreement).  
New: New commitments (full or partial, with or without limitations) which can, in most but not all cases, be 
seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:  Similar commitments; though possibly, in individual cases, with limited improvements and/or limited 
additional reservations.  
Excluded: Sector or subsector excl uded from the coverage.  
Source:  The United Kingdom's modifications to the incorporated EU schedules annexed to the Agreement; 
European Union schedules annexed to the EU -Canada FTA (WT/REG389/1/Rev.1 ) and United Kingdom 
GATS Specific Commitments . 
 
4.4.2.2.1   Business  services  
4.40.  The UK incorporates , mutatis  mutandis , reservations at the national and the EU levels in the 
incorporated Annex es I and II with the following modifications:  WT/REG419/1  
 
- 49 - 
 
  - for professional services : reference to EU law and the law s of Member States of the EU has been 
replaced with the law of the UK in the reservation for providing legal services;124 
- for research and development services : it has been clarified that "for publicly funded research and 
development (R&D) services benefit ting from funding provided by the UK, exclusive rights or 
authorisations may only be granted to nationals of the Member States of the EU and to juridical 
persons of the EU having their registered office, central administration or principal place of busines s 
in the EU".125  
- for other business services : for services incidental to fishing, reference to the Common Fisheries 
Policy has been removed.126 
4.41.  In comparison to its GATS commitments, the UK has undertaken new commitments for R&D 
services (CPC 851, CPC 853 ); investigation services (CPC 87301); and other business services 
(collection agency services, credit reporting services) (CPC 87901, CPC 87902).  
4.42.  Unlike its GATS commitments, for legal services (part of CPC 861) and R&D services on social 
sciences and hum anities (part of CPC 85201) the UK's specific commitments are narrower under the 
incorporated FTA schedule.  
4.4.2.2.2   Communication services  
4.43.  In addition to incorporating commitments under the EU -Canada FTA, in comparison to the 
UK's GATS commitments, the incorporate d FTA schedule suggests new commitments taken by the 
UK for postal and courier services. As under the UK's GATS commitments, audio -visual services are 
not covered by the incorporated FTA schedule.  
4.4.2.2.3   Distribution services  
4.44.  The UK incorporates , mutatis  mutandi s, reservations at the national and the EU levels in the 
incorporated Annex es I and II with the following modifications:  
- for retail and sale of pharmaceutical, medical and orthopaedic goods and other services provided 
by pharmacists  (CPC 63211) : the EU reservation has been incorporated with modifications that 
clarify that establishment in the UK is required for the retail of pharmaceuticals and specific medical 
goods to the general public.127  
4.4.2.2.4   Transport services  
4.45.  The UK incorporates, mutatis  mutandis , reservations at the national and at the EU level in the 
incorporated Annex es I and II with the following modifications:  
- for air transport services : for ground handling services, the modifications introduced by the 
Agreement replace references to EU legislation and clarify that the UK reservation does not  affect 
 
124 In the UK reservation for legal services (part of CPC 861)  as listed in the incorporated Annex I, in the 
second paragraph of the Description element, "EU law and the law of Member States of the EU " has been  replaced 
with "the law of the UK ". 
125 In the reservation by the EU for research and development services (CPC 851, C PC 853) as listed in 
the incorporated Annex I , the Measures element has been replaced with: "Measures: All currently existing and 
all future research or innovation programmes. ". In the first paragraph of the Description element, "EU at EU 
level" has been replaced with "UK". The second paragraph of the Description element that has been deleted , 
reads as follows: " For publicly funded R&D s ervices benefitting from funding provided by a Member State 
exclusive rights or authorisations may only be granted to nationals of the Member State of the EU concerned and 
to juridical persons of the Member State concerned having their headquarters in that  Member State" . 
126 In the reservation by the EU for fishing, aquaculture and services incidental to fishing (ISIC rev 3.1 
0501, ISIC rev 3.1 0502, CPC 882)  as stated in the incorporated Annex II , in the first paragraph of the Description 
element, "the Commo n Fisheries Policy, and of " has been deleted.  
127 Further to modifications introduced by the Agreement, the reservation for distribution and health 
services as stated in the incorporated Annex II, reads as follows: "Mail order is only possible from the UK, t hus 
establishment in the UK is required for the retail of pharmaceuticals and specific medical goods to the general 
public in the UK. " WT/REG419/1  
 
- 50 - 
 
  the rights and obligations of the Parties on any agreement or arrangement governing air services 
between Canada and the United Kingdom.128 
- for road services : the reservation for cabotage within a Member State of the EU by foreign investors 
established in another Member State of the EU has not been incorporated;129 
- for services auxiliary to all modes of transport : in the reservation for customs clearance servic es 
(part of CPC 748) the measure has been changes to "Taxation (Cross -border Trade) Act 2018 
(c. 22)". The modification also clarifies that the scope of the reservation shall not be interpreted 
more broadly than the scope of the corresponding reservation i n the incorporated Annex I that is 
applicable in the European Union.130 
4.46.  In comparison to its GATS commitments, the UK has undertaken new commitments for 
maritime transport services; internal waterways transport; and pipeline transport.  
4.5  Regulatory provision s  
4.5.1   Domestic regulation  
4.47.  The Agreement incorporates , without modification,  provisions on domestic regulation in 
Chapter 12 of the CETA .131 
4.5.2   Recognition and temporary licensing  
4.48.  The Agreement incorporates the rules governing mutual recognition of professional 
qualifications in Chapter 11 of the CETA132 except for references to EU Member States in the 
definition of "jurisdiction" .133 The same modifications have been introduced to clarify the  application 
of the incorporated Chapter 11 of the CETA , i.e. the  provisions on mutual recognition of professional 
qualifications apply to professions which are regulated in each Party134, and in all or some provinces 
and territories of Canada.  
4.49.  The Agreement also replicates a detailed framework for negotiating mutual recognition of 
professional qualification agreements between the Parties ' regulators and/or professional bodies.  
4.50.  For the administration of the incorporated Chapter 11 (incorporated Article 11.7), the Parties 
agree to establish one or more contact points.  The Parties have confirmed that the contact points 
have not yet been established.  
 
128 In the reservation by the EU as listed in the incorporated Annex I, in paragraph 3 of the Description 
element, "the Agreement on Air Transport Between Canada and the European Community and its Member States " 
has been replaced with "any agreement or arrange ment governing air services between Canada and the United 
Kingdom ". 
129 In the reservation by the EU for road transport (passenger transportation, freight transportation, 
international truck transport services) (CPC 712) as listed in the incorporated Anne II , the following paragraph 
has not been incorporated: " The EU reserves the right to adopt or maintain measures limiting the supply of 
cabotage within a Member State of the EU by foreign investors established in another Member State of the EU. 
An economic n eeds test may apply to taxi services in the EU with the exception of BE."  
130 In the reservation by the EU for customs clearance services as listed in the incorporated Annex I, the 
reference to the EU legislation has been replaced with the Taxation (Cross -border Trade) Act 2018 (c. 22). A 
footnote has also been added which states the following: " For greater certainty, the scope of this reservation 
shall not be interpreted more broadly than the scope of the corresponding reservation in Annex I of CETA that is 
applicable in the European Union and that refers to Council Regulation (EEC) No 2913/92 of 12 October 1992 
establishing the Community Customs Code, and subsequent amendments. Paragraph 4 of Article III (Retained 
Law) of the TCA applies to a dispute arising  in relation to the scope of this reservation. " 
131 For further details, see section 4.5.1 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1.  
132 For further details, see section 4.5.2 of the factual presentation on the EU -Canada F TA in document 
WT/REG389/1/Rev.1.  
133 Under the Agreement, in the incorporated Article 11.1, in the definition of  "jurisdiction ", "each of the 
Member States of the European Union" has been replaced with "the UK ". 
134 In the incorporated Article 11.2.2, reference to the EU Member States has not been incorporated.  WT/REG419/1  
 
- 51 - 
 
  4.5.3   Subsidies  
4.51.  Certain  provisions in the incorporated Chapter 8 (Investment) and all of the incorporated 
Chapter 9 (Cross -border trade in services) do not apply to a measure affecting a subsidy135 or other 
government support relating to trade in services provided by a Party. Moreover, nothing  in the 
Agreement applies to subsidies or government support with respect to audio -visual services for the 
UK and to cultural industries for Canada (incorporated Article 7.7).  
4.5.4   Safeguards  
4.52.  The possibility in imposing restrictive measures on trade in services  in order to safeguard a 
Party's balance -of-payments or external financial position is foreseen by the Agreement through the 
incorporation of Article  28.5 – paragraph 4. Such measures shall be in accordance with the GATS.  
4.53.  Imposition of temporary  safeguard measures with regard to capital movements and 
payments136 has not been incorporate d to the Agreement  as it relates to Article 66 of the Treaty on 
the Functioning of the European Union pertaining to the Euro.  
4.5.5   Other  
Investment137 
4.54.  The Agreement incorporates Chapter 8 (Investment) of the CETA that applies to measures 
adopted or maintained by a Party relating to investors of the other Party; covered investment138; 
and, with respect to provisions on performance requirements, any investments in its territory. 
Excluded from the coverage of Sections B (Establishment of investments) and C (Non -discriminatory 
treatmen t) of the incorporated Chapter 8 are measures relating to activities carried out in the 
exercise of governmental authority and air services, or related services in support of air services and 
other services supplied by means of air transport .139 Moreover, f or the UK, measures with respect 
to audiovisual services are not covered by these sections, while, for Canada they do not apply to 
measures in cultural industries.  
4.55.  The disciplines contained in the incorporated Chapter 8 are not applicable either to measur es 
adopted or maintained by a Party to the extent that the measures apply to investors or to their 
investments covered by the incorporated Chapter 13 (Financial services). The Parties clarify, in 
connection with the incorporated Chapter 13, that the incorp orated Chapter 8 applies to measures 
relating to an investor of a Party, and an investment of that investor, in a financial service supplier 
that is not a financial institution; and a measure, other than that relating to the supply of financial 
services, r elating to an investor of a Party or an investment of that investor in a financial institution.  
4.56.  The incorporated provisions of Chapter 8140 that address establishment of investments 
(Section B); non -discriminatory treatment (Section C); investment protectio n (Section D); 
reservations and exceptions (Section E and incorporated Annexes I and II); and resolution of 
 
135 Under the Agreement,  in the incorporated Article 8.9.4 the footnote f ollowing the word "subsidy" that 
has not been incorporated, reads as follows: " In the case of the European Union, "subsidy" includes "state aid" 
as defined in its law."  
136 Article 28.4 of the CETA has not been incorporated by the Agreement.  
137 Under the inco rporated Agreement, "investment" means every kind of asset that an investor owns or 
controls, directly or indirectly, that has the characteristics of an investment, which includes a certain duration 
and other characteristics such as the commitment of capit al or other resources, the expectation of gain or profit, 
or the assumption of risk. The forms that an investment may take are identified in the incorporated Article 8.1.  
138 Further to modifications introduced under the Agreement, "covered investment" means , with respect 
to a Party, an investment (i) in its territory; (ii) made in accordance with the applicable law at the time the 
investment is made; (iii) directly or indirectly owned or controlled by an investor of the other Party; and (iv) 
existing on 21 S eptember 2017(*), or made or acquired thereafter. (*) "21 September 2017 " has replaced "the 
date of entry into force of this Agreement " to reflect the date of provisional application of the CETA.  
139 The following air transport services are covered by the Agreement: aircraft repair and maintenance 
services; the selling and marketing of air transport services; computer reservation system (CRS) services; 
ground handling services; airport operation servi ces.  
140 For further details, see section 4.5.5.1 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1.  WT/REG419/1  
 
- 52 - 
 
  investment disputes between investors and states141 (Section F and incorporated Annex 8 -B) have 
been modified as follows:  
a. references to the EU/EU Mem ber States have been replaced with the UK in Section A 
(Definitions and scope) and Section C (Non -discriminatory treatment) as described in 
sections 4.2 and 4.5.2, respectively, of this factual presentation;  
b. in the provisions related to the right of a Par ty to discontinue the granting of a subsidy or 
requesting its reimbursement (Section D (investment protection)), the EU definition of a 
"subsidy" has not been incorporated142, and the reference to the EU's competent 
authorities has been replaced with that o f the UK143; 
c. with respect to the resolution of investment disputes between investors and States 
(Section F) :  
i. the place of consultation has been updated144; 
ii. references to the EU or EU Member States have not been incorporated in the provisions 
related to a re quest for consultations concerning an alleged breach by the EU or the 
EU Member State145 and information sharing146;  
iii. the determination of the respondent for disputes with the EU or its Member States147, 
including related references in the provisions concerning consultations148, submission 
of a claim to the Tribunal149, transparency of proceedings150 and non -disputing Party151 
have not been incorporated.  
4.57.  Pursuant to Article V of the Agreement, certain incorporated provisions of Section F of the 
incorporated Chapter 8 (investment)152, do not apply upon entry into force of the Agreement and 
are subject to a comprehensive review. Accordingly, the interpretive notes of the paragraph 6 of the 
Joint Interpretative Instrument153 that relate to those incor porated provisions are not used for 
interpretive purposes pending the review.  The Parties initiated discussions on the investment dispute 
settlement review in summer 2021, as required by the Agreement. Separately, Canada and the UK 
have agreed to launch ne gotiations by April 2022 to replace the TCA with a bespoke FTA. The review 
will continue as part of those negotiations . 
 
141 The investor -state dispute settlement mechanism is summarized in Section 5.6 of this factual 
presentation.  
142 Under the Agreem ent, in the incorporated Article 8.9.4 the footnote following the word "subsidy" that 
has not been incorporated, reads as follows: " In the case of the European Union, "subsidy" includes "state aid" 
as defined in its law."  
143 Under the Agreement, in the inco rporated Article 8.9.4 the footnote following the term "competent 
authority ", everything after "competent authority " has been replaced with "is an authority or agency notified in 
writing by the United Kingdom to Canada through the Canada -UK contact points ". 
144 In the incorporated Article 8.19(2) (Consultations), in  sub-paragraphs 8.19.2 (a) through (c) have 
been replaced with: "(a) Ottawa, if the measures challenged are measures of Canada; or (b) London, if the 
measures challenged are measures of the UK. ". 
145 Paragraph 8.19.7 of the CETA has not been incorporated . 
146 In the incorporated Article 8.37(2) (Information sharing), ", as applicable, the European Union, Member 
States of the European Union and " has not been incorporated . 
147 Article 8.21 has not been inc orporated . 
148 In the incorporated paragraph 8.19.8, "and, if applicable, its notice requesting a determination of the 
respondent, " has been  deleted.  
149 In the incorporated Article 8.22(1), in  sub-paragraph 8.22.1(b), "and, if applicable, at least 90 days 
to elapse from the submission of the notice requesting a determination of the respondent " has been deleted 
along with s ub-paragraph 8.22.1(c).  
150 In the incorporated Article 8.36(2), "the notice requesting a determination of the respondent, the 
notice of deter mination of the respondent, " has been deleted . 
151 In the incorporated Article 8.38, in sub-paragraph 8.38.1(a), "a notice requesting a determination of 
the respondent, a notice of determination of the respondent, " has been  deleted.  
152 The Agreement incorpora tes with modifications the following provisions of Chapter 8 (Investment) of 
the CETA: Articles 8.18 through 8.43, as well as  paragraphs 8.44.2 and 8.44.3, except for sub -paragraph (d) . 
153 Joint Interpretative Instrument on the Agreement on Trade Continuity between the United Kingdom of 
Great Britain and Northern Ireland and Canada, made at the time of the signature of the Agreement.  WT/REG419/1  
 
- 53 - 
 
  4.58.  The incorporated CETA establishes a Committee on services and investment to provide a 
forum for the Parties to consult on issues related  to Chapter 8.  
4.59.  The Agreement also fully incorporates a Declaration by Canada on the Investment Canada 
Act and on its relationship with provisions in the incorporated Chapter 8 (incorporated Annex 8 -F). 
4.5.6   Sector specific provisions on trade in services  
Commun ication services  
4.5.6.1.1   Courier Services  
4.60.  The Agreement incorporates Annex 9 -C of the CETA on courier services that clarifies the 
Parties' understanding that the treatment offered to courier services under the incorporated 
Chapters 8 (Investment) and 9 (Cross -border supply)154 does not include the grant of air traffic 
rights for courier services suppliers. Further to the modifications introduced by the Agreement, such 
rights are subject to any agreement or arrangement governing air services between Canada  and the 
United Kingdom .155 
4.5.6.1.2   Telecommunication Services156 
4.61.  The Agreement incorporates , without modification,  provisions of Chapter 15 of the CETA, 
which applies to a measure adopted or maintained by a Party relating to telecommunications 
networks or services,  subject to a Party's right to restrict the supply of a service in accordance with 
its reservations as set out in its incorporated Schedule to Annexes I or II , as modified .157  
 Financial services  
4.62.  The Agreement replicates provisions related to financial ser vices in Chapter 13 of the CETA 
that applies to the measures of a Party relating to financial institutions of the other Party; an investor 
of the other Party, and an investment by that investor, in a financial institution in the Party's 
territory; and cros s-border trade in financial services. Most activities or services forming part of 
public retirement plans or statutory systems of social security, or activities and services conducted 
for the account of the Party, with the guarantee or using the financial resources of the Party, 
including its public entities, are excluded from the coverage of the incorporated Chapter 13.158  
4.63.  Modifications to the incorporated Chapter 13 concern:  
a. a competent authority for financial services for the UK has been amended to Her Majesty's 
Treasury, or its successor159; 
b. in the incorporated Annex 13 -A (Cross -border supply of financial services), references to 
the EU and EU Member States, as well as related country abbreviations, have not been 
incorporated160;  
 
154 Subject to applicable reservations as set out in the Pa rties' Schedules to Annexes I and II, as modified.  
155 Further to modifications introduced by the Agreement, reference to the Agreement on Air Transport 
between Canada and the European Community and its Member States, done at Brussels on 17 December 2009 
and Ottawa on December 18, 2009, has not been incorporated.  
156 Under the incorporated Agreement, "telecommunications services" mean all services consisting of the 
transmission and reception of signals by any electromagnetic means but does not include economic activity 
consisting of the provision of content through telecommunications.  
157 For further details, see section 4.5.6.3 of the factual presentation on the EU -Canada FTA in 
document WT/REG389/1/Rev.1 . 
158 For further details, see section 4.5.6.1 of the factual  presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1 . 
159 Under the Agreement, amendments have been introduced to incorporated Articles 13.18.1 (Financial 
Services Committee) and 13.19.2 (Consultations).  
160 This applies to the title , and a footnot e to paragraph 1 that reads as follows: "The abbreviations used 
in this Annex are defined in paragraph 8 of the Headnote to Annex I (Reservations for Existing Measures and 
Liberalisation Commitments)."  WT/REG419/1  
 
- 54 - 
 
  c. the application of t he provisions related to the cross-border supply of financial services 
(incorporated Article 13.7.1 of the CETA ) for portfolio management services has been 
modified  to reflect the date of provisional application of the CETA , i.e. 21 September 
2017.161 
4.64.  With regards to the resolution of investment disputes between investors and States , related 
provisions of the incorporated Chapter 13 do not apply unless and until  the Parties conclude the 
comprehensive review of procedures for the resolution of investment disp utes between investors 
and States  (Article V of the Agreement) .162 
4.65.  Further to the incorporated Article 13.9, the Parties also agree to restart negotiations on 
performance requirement principles for financial services within three years of the Agreement 
entering into force.  The Parties have confirmed that negotiations  have not begun on performance 
requirement principles for financial services under the TCA.  
International maritime transport services  
4.66.  The Agreement incorporates the rules governing  international maritime transport services 
that contained in Chapter 14 of the CETA163, except for the references to the EU or EU Member states 
in the definitions of " international cargo" , "international maritime transport services"164, and a vessel 
flying t he flag of a Party .165 
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  The Agreement incorporates, without modifications, the provisions of the CETA on general 
transparency disciplines, which are contained in the incorporated Chapter 27. The incorporated 
Articles 27.1 through 27.5 list requirements for publication, provision of information, administrative 
proceedings, review and appeal, and cooperation on promoting increased transparency.  
5.2.  In addition to Chapter 27, the Agreement also establish es specific transparency requirements 
in a number of other incorporated Chapters.  
5.2  Current payments and capital movements  
5.3.  The Agreement incorporates the provisions of the CETA on current account and on movement 
of capital, which are contained in, respective ly, the incorporated Articles 30.4 and 30.5. The Parties 
shall authorize any payments and transfers on the current account of the balance of payments 
between the Parties, in freely convertible currency and in accordance with the relevant IMF 
provisions (in corporated Article 30.4). They agree to consult each other with a view to facilitating 
the movement of capital between them by continuing to implement policies to liberalize the capital 
and financial account, and by supporting a stable and secure framework  for long term investment 
(incorporated Article 30.5). Moreover, each Party shall permit all transfers relating to a covered 
investment to be made without restriction or delay in a freely convertible currency and at the market 
 
161 Under the Agreement, i n paragraph 15 of the incorporated Annex 13 -A, "the entry into force of this 
Agreement " has been replaced with "21 September 2017 ". 
162 Article V.6 of the Agreement states that "Incorporated paragraph 13.2.4 (Scope), incorporated sub -
paragraph 13.18.3(c) (Financial Services Commi ttee), incorporated Article 13.21 (Investment disputes in 
financial services) as well as incorporated Annex 13 -B (Understanding on the Application of Articles 13.16.1 
(Prudential carve -out) and 13.21 (Investment disputes in financial services)), to the ext ent that it relates to the 
process under  the incorporated Article 13.21 (Investment disputes in financial services), shall not apply unless 
and until the incorporated provisions referred to in paragraph 1 apply". Paragraph 1 of Article V of the Agreement 
refers to the comprehensive review of the incorporated Section F of Chapter 8.  
163 For further details, see section 4.5.6.2 of the factual presentation on the EU -Canada FTA in document 
WT/REG389/1/Rev.1.  
164 Under the Agreement, in the incorporated Article 14.1 in the definitions of " international 
cargo"  and "international maritime transport services"  ", or between a port of one Member State of the European 
Union and a port of another Member State of the European Union " has been deleted.  
165 The footnote that has not been incorporated under the Agreement states the following: "For the 
purposes of this Chapter for the European Union, flying the flag of a Party means flying the flag of a Member 
State of the European Union."  WT/REG419/1  
 
- 55 - 
 
  rate of exchange applicable o n the date of transfer. This shall not prevent a Party from applying in 
an equitable and non -discriminatory manner and not in a way that would constitute a disguised 
restriction on transfers, its laws against bankruptcy, insolvency or the protection of the  rights of 
creditors; issuing, trading or dealing in securities; criminal or penal offences; financial reporting or 
record keeping of transfers when necessary to assist law enforcement or financial regulatory 
authorities; and the satisfaction of judgements  in adjudicatory proceedings (incorporated 
Article  8.13).  
5.3  Exceptions  
5.4.  The Agreement incorporates, with minor modifications, the provisions of the CETA on 
exceptions, which are contained in the incorporated Chapter 28. General and security exceptions are 
contained in incorporated Articles 28.3 and 28.6. The incorporated Article 28.7 contains a number 
of exceptions related to taxation measures, while incorporated Articles 28.8, 28.9, and 28.10 refer, 
respectively, to exceptions to the disclosure of certain inf ormation; applicable to culture; and to WTO 
Waivers. In addition, incorporated Articles 13.16 and 13.17 contain exceptions related to financial 
services, in particular measures maintained or introduced for prudential reasons.  
5.3.1   General exceptions   
5.5.  With resp ect to trade in goods, and Section B (Establishment of investment s) and 
C (Non-discriminatory treatment) of the incorporated Chapter 8 (Investment), Article XX of GATT 
1994, is incorporated into and made part of the Agreement (incorporated Article 28.3 , with one 
modification ). With respect to trade in services and investment, (Section B and C of the incorporated 
Chapter 8), language largely replicating that of Article XIV (a), (b) and (c) of GATS is used in the 
Agreement (incorporated Article 28.3 , with one  modification ). Through incorporated Article 19.3, 
elements of the general exception are also made applicable to rules of the incorporated Chapter 19 
on Government procurement.  
5.3.2   Security exceptions  
5.6.  The incorporated Article 28.6 largely replicates the provisions in Article XXI of GATT 1994 and 
in Article  XIVbis of the GATS for measures related to national security. As in the case of general 
exceptions, through the incorporated Article 19.3, elements of the security exception are also made 
applicable to rules of the incorporated Chapter 19 on Government procurement.  
5.3.3   Taxation  
5.7.  As a principle, the application of the Agreement shall apply to taxation measures , with some 
exceptions .166 The Agreement does not affect the rights and obligations of either Party und er any 
tax convention. In the event of any inconsistency between the Agreement and a tax convention, the 
tax convention shall prevail to the extent of the inconsistency (incorporated Article 28.7).  
5.4  Accession and withdrawal  
5.8.  There is no specific provision co ncerning accession to the Agreement. Article VII clarifies that 
a Party may terminate the provisional application of the Agreement by written notice to the other 
Party, with termination taking effect on the first day of the second month  following the date of the 
notification. The incorporated Article 30.9 , with some modifications,  provides that a Party may 
denounce the Agreement in writing by notifying the other Party. The Agreement shall cease to apply 
180 days after the date of the written notice given by  a Party.  
5.5  Institutional framework  
5.9.  The Agreement incorporates, and therefore replicates , with minor modifications , the 
institutional framework of the CETA. Article II of the Agreement introduces further provisions with 
respect to the operation of the Canad a-UK Joint Committee, which is established to ensure that the 
Agreement operated properly.  
 
166 For example, avoidance measures or taxation measures that are "equitable and effective".  WT/REG419/1  
 
- 56 - 
 
  5.10.  Administrative and institutional provisions are otherwise contained in the incorporated 
Chapter  26. 
5.11.  A number of specialized committees are also established by the in corporated CETA. They are 
identified in incorporated Article 26.2  and in the factual presentation of the CETA , with some 
modifications .  
5.12.  Canada -UK contact points are established to monitor the work of all institutional bodies 
established under the Agreement; to coordinate preparations for committee meetings; to follow up 
on any decisions made by the Joint Committee, as appropriate; to receive all notifications and 
information provided pursuant to the Agreement; to respond to any information requests ; and to 
consider any other matter that may affect the operation of the Agreement as mandated by the Joint 
Committee (incorporated Article 26.5, as modified by Annex A to the Agreement).  
5.6  Dispute settlement  
5.13.  The Agreement incorporates, without substantive mo dification, the provisions of the CETA on 
dispute settlement, which are contained in the incorporated Chapter 29. Annex 29 to the CETA, 
which contains rules of procedure for arbitration (29 -A); a code of conduct for arbitrators and 
mediators (29 -B); and ru les of procedure for mediation (29 -C), is also incorporated.  
5.14.  The Agreement provides that recourse to the dispute settlement provisions of the incorporated 
Chapter 29 is without prejudice to recourse to dispute settlement at the WTO or under an y other 
agree ment to which the Parties are party. However, if an obligation is equivalent in substance under 
the Agreement and  under the WTO Agreement or under any other agreement to which the Parties 
are party, once a dispute has been initiated under one agreement,  the Party shall not bring a claim 
seeking redress for the breach of the substantially equivalent obligation under the other agreement, 
unless the forum selected fails for procedural or jurisdictional reasons to make findings (incorporated 
Article 29.3). More over, nothing in the Agreement shall preclude a Party from implementing the 
suspension of obligations authori sed by the WTO Dispute Settlement Body, and a Party may not 
invoke the WTO Agreement to preclude the other Party from suspending obligations pursua nt to the 
incorporated Chapter 29.  
5.15.  The incorporated Chapter contains disciplines on consultations and mediation (Section B); 
dispute settlement procedures and compliance (Section C); as well as general provisions (Section 
D) covering rules of procedure, ge neral rule of interpretation, rulings of the arbitration panel, and 
mutually agreed solutions (incorporated Articles 29.16 through 29.19).  
5.16.  The provisions under Section C set out the applicable arbitration and compliance procedures, 
including the request fo r the establishment of an arbitration panel; the composition of the panel; 
the establishment of a list of arbitrators; the issuance of interim and final panel reports; as well as 
urgent proceedings, and disciplines on compliance with the final panel report , including the 
reasonable period of time for compliance, the temporary remedies in case of non -compliance, and 
the review of measures taken to comply after the suspension of obligations.  
5.17.  The rules in the incorporated Chapter are largely reflective of  those of the WTO dispute 
settlement mechanism at the panel stage.  
5.18.  In the event of a dispute with respect to financial services, the incorporated Chapter 29 applies 
as modified by incorporated Article 13.20. In particular,  the list of Arbitrator for Financial  Services 
disputes is established under Chapter 13 (Financial Services) and  the UK -Canada Joint Committee 
may establish a list of at least 15 individuals who are willing and able to serve as arbitrators. These 
individuals shall have expertise or experience  in financial services law or regulation or in the practice 
thereof  and chairpersons must also have experience as counsel, panellist or arbitrator in dispute 
proceedings . They shall also comply with the Code of Conduct in the incorporated Annex 29 -B. 
Lastly, disputes that affect only sectors other than financial services shall not result in suspension 
of benefits in the financial services sector.  WT/REG419/1  
 
- 57 - 
 
  5.19.  An investment court system (ICS) is established in Section F of Chapter 8 with a view to 
resolving investment di sputes between investors and States.167 Under Article 8.18 (scope168), an 
investor of a Party may submit to the tribunal constituted under Section F of Chapter 8 a claim that 
the other Party has breached an obligation under Section C of Chapter 8 (non -discriminatory 
treatment) with respect to the expansion, conduct, operation, management, maintenance, use, 
enjoyment, and sale or disposal of its covered investment or under Section D of Chapter 8 
(investment protection) where it claims to have suffered loss or damage as a result of the alleged 
breach. Articles 8.19 through 8.44 cover inter alia : consultations; mediation; determination of the 
respondent for dispute with the UK; procedural and other requirements for the submission of a claim 
to the Tribunal; submi ssion of a claim to the Tribunal; proceedings under another international 
agreement; consent to the settlement of the dispute by the Tribunal; third party funding, constitution 
of the Tribunal; the Appellate Tribunal; the establishment of a multilateral in vestment tribunal and 
appellate mechanism; ethics; applicable law and interpretation; claims manifestly without legal 
merit; claims unfounded as a matter of law; interim measures of protection; discontinuance; 
transparency of proceedings; information shari ng; non -disputing Party; final award; indemnification 
or other compensation; and enforcement of awards; role of the Parties; consolidation; the 
Committee on Services and Investment. Section F of the incorporated Chapter 8 applies to 
investment disputes in financial services as modified by incorporated Article 13.21 and incorporated 
Annex 13 -B169 and under the conditions set out in incorporated Article 13.21. As clarified under 
Article V of the Agreement, the disciplines in CETA, including those relating to f inancial services,  
such as  the establishment and functioning of an investment court system (ICS)170, shall not apply 
upon the entry into force of the Agreement. These provisions, which envisage the establishment of 
a standing tribunal and an appellate tribu nal for resolving any investor claims brought pursuant to 
the Agreement, and the practical details to operationalise the ICS have no t to date been fully 
developed or agreed between the EU and Canada and are consequently not provisionally applied 
under CETA . Under the Agreement, a comprehensive review of the above -mentioned incorporated 
provisions shall commence within 90 days of the entry into force of the Agreement .171 The review 
shall be completed by 2024 unless the Parties agree to extend this period. Sha ll the review not be 
completed by that time;  the incorporated provisions shall apply provided that the equivalent 
provisions of CETA have entered into force. Decisions under CETA Committees with respect to the 
ICS will not apply to the Agreement.  
5.7  Relations hip with other agreements concluded by the parties  
5.20.  The Agreement is based on the CETA and as indicated in Section 2.1, incorporates most of its 
provisions. In addition, i n the incorporated Article 1.5, the Parties affirm their rights and obligations 
with r espect to each other under the WTO Agreement and other agreements to which they are party.  
5.21.  The incorporated Article 30.8 , with some modifications,  clarifies the relationship between pre -
existing agreements between the Parties and the Agreement. The Agreement replaces and 
supersedes, from the date of its entry into force, some of these agreements (investment treaties 
listed in Annex 30 -A to the CETA) .172 Some pre -existing agreements are incorporated into and made 
part of the Agreement (with certain amendments set out in the incorporated Annex 30 -B). In the 
case of the provisional application of certain parts of the Agreement, the relationship with pre -
existing agreement s is also clarified in the incorporated Article 30.8.  
 
167 A decision by Canada following a review under the Investment Canada Act (R.S.C. 1985, c.28 
(1st supplement) regarding whether or not to permit an investment that is subject to review, is not subject to the 
ICS, or to Chapter 29 (Annex 8 -C to the incorporated CETA).  
168 A claim with respect to restructuring of debt issued by a Party may only be submitted accordance 
with Annex 8 -B to the Agreement.  
169 The incorporated Annex 13 -B contains an understanding on the application of, inter alia , the 
incorporated Article 13.21.  
170 Incorporated Article 8.18 through 8.43, as well as incorporated Articles 8.44.2 and 8.44.3 (except for 
sub-paragraph (d)).  
171 The Parties indicates that they initiated discussions on the investment dispute settlement review in 
summer 2021, as required by the Agreement. Separ ately, Canada and the UK have agreed to launch 
negotiations by April 2022 to replace the Agreement with a bespoke FTA. The review will continue as part of 
those negotiations.  
172 A claim may nevertheless be submitted under an agreement listed in Annex 30 -A to the incorporated 
CETA under  certain conditions indicated in the incorporated Article 30.8.  WT/REG419/1  
 
- 58 - 
 
  5.22.  Table 5.1 below shows the Parties' RTAs in force, notified and non -notified, other than the 
Agreement.  
Table 5.1 United Kingdom and Canada: participation in other RTAs (notified and non -
notified in force), as of 1 March 2022   
RTA Name  Entry into 
force/provisional 
applicationa Coverage  GATT/WTO Notification  
Year  WTO Provision  
UNITED KINGDOM  
United Kingdom – Iceland, 
Liechtenstein and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Albania  03-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Jordan  01-May-21 Goods  2021 GATT Art. XXIV  
United Kingdom - Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
EU - United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - CARIFORUM 
States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Central 
America  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Colombia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Côte 
d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Eastern and 
Southern Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ecuador and 
Peru 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Faroe 
Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Japan  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - North 
Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Norway and 
Iceland  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Pacific 
States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific 
States - Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific 
States - Accession of 
Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Republic of 
Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Republic of 
Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - SACU and 
Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  WT/REG419/1  
 
- 59 - 
 
  RTA Name  Entry into 
force/provisional 
applicationa Coverage  GATT/WTO Notification  
Year  WTO Provision  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Switzerland 
- Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Turkey  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
CANADA  
United States -Mexico -Canada 
Agreement 
(USMCA/CUSMA/T -MEC) 01-Jul-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Comprehensive and 
Progressive Agreement for 
Trans -Pacific Partnership 
(CPTPP)  30-Dec-18 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
EU - Canada  21-Sep-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
Canada - Ukraine  01-Aug-17 Goods  2017 GATT  Art. XXIV  
Canada - Korea, Republic of  01-Jan-15 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Canada - Honduras  01-Oct-14 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Canada - Panama  01-Apr-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Canada - Jordan  01-Oct-12 Goods  2013 GATT Art. XXIV  
Canada - Colombia  15-Aug-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Canada - Peru 01-Aug-09 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
EFTA - Canada  01-Jul-09 Goods  2009 GATT Art. XXIV  
Canada - Costa Rica  01-Nov-02 Goods  2003 GATT Art. XXIV  
Canada - Chile 05-Jul-97 Goods & 
Services  1997 GATT Art. XXIV & GATS Art. V  
Canada - Israel  01-Jan-97 Goods  1997 GATT Art. XXIV  
a Dates of the first entry into force/provisional application for at least one of the Parties. Where dates of 
provisional application have been provided by the Parties, further notifications to confirm the dates of entry into 
force are awaited.  
b Reference to Kosovo in this table shall b e understood to be in the context of the United Nations Security 
Council resolution 1244 (1999).  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Dat abase on RTAs: http://rtais.wto.org .  
 
5.8  Government procurement  
5.23.  The Agreement incorporates  the procedural rules and market access commitments of CETA 
Chapter 19 on government procurement . The Chapter contains procedural rules applicable to 
Government Procurement and covers goods, services and construction services, as specified in the 
annexes of each Party's market access Schedule. It includes general principles, such as non -
discrimination, and transparency, ap plicable to the covered procurements.  
5.24.  Annex 19 to the CETA contains the Parties' market access schedules with respect to disciplines 
applicable to government procurement. It lists the central government entities173; sub -central 
 
173 Annex 19 -1 to the Agreement , , indicating the applicable thresholds for goods (SD R 130,000), services 
(SDR 130,000), and construction services (SDR 5,000,000); covering, for Canada, the central (federal) 
government entities; and, for the UK, the central government contracting authorities.  WT/REG419/1  
 
- 60 - 
 
  governmental entities174; othe r procuring entities175; the covered goods176; the covered services177; 
the covered construction services178; exclusions to the coverage179; the media used to publish laws, 
regulations, judicial decisions, administrative rulings, procedures notices and statistics and awards 
regarding procurement covered by the incorporated Chapter 19.180 
5.25.  The incorporated Article 19.3 includes security and general exceptions to the procedural rules 
of the incorporated Chapter 19. Moreover, each Party's market access schedu le (i.e. Annex  19-A for 
Canada and Annex 19 -B for the UK) also contains specific exclusions.  
5.26.  The incorporated Chapter 19 also contains rules on transparency of procurement information 
(incorporated Article 19.5  and 19.6 ). The Parties are required to publis h, inter alia , laws, regulations, 
and procedures regarding covered procurement; notices of intended procurement, summary notices; 
conditions for participation in a procurement; qualification of suppliers and the final date for the 
submission of tenders. Th e incorporated Article 19.11 permits a Party to provide for its procuring 
entities to conduct negotiations with suppliers if they have indicated their intent to  do so  in the 
notice of intended procurement or if the evaluation shows that no tender is obviou sly the most 
advantageous in terms of the specific evaluation criteria set out in the notice of intended 
procurement or tender documentation . Limited tendering is permitted under certain circumstances 
including if no tenders were submitted or if those subm itted d id not conform to the essential 
requirements of the tender documentation, the tenders submitted were collusive, or if the goods 
and services can only be supplied by a particular supplier and no reasonable alternative or substitute 
goods or services exist for any of the specified reasons. Limited tendering may not be used to avoid 
competition among suppliers or to discriminate against suppliers from the other Party or protect 
domestic suppliers (incorporated Article 19.12). The incorporated Articles 1 9.13 and 19.14 cover 
rules relating to electronic auctions; and treatment of tenders and awarding of contracts.  
5.27.   The incorporated Article 19.17 requires the Parties to provide  a timely, effective, transparent, 
and non -discriminatory administrative or judi cial review procedure through which suppliers could 
challenge a breach of the Chapter or a failure to comply with a Party's measures implementing the 
Chapter. The incorporated Chapter 19 also provides for negotiations between the Parties not later 
than 10 years after the entry into force of the Agreement, with a view to further develop the quality 
of remedies, including a possible commitment to introduce or maintain pre -contractual remedies. 
With respect to the coverage of the incorporated Chapter 19, disci plines concerning modifications 
and rectifications of the market access schedules are contained in the incorporated Article 19.18.  
5.28.  Both Parties' commitments under the Agreement build upon those they have under the 
revised WTO GPA, to which both Parties are  party. While the corresponding thresholds are kept 
unchanged  from those  under the revised GPA, the procurement commitments at central and sub -
central governmental level and with respect to other entities is expanded under the Agreement. 
Canada expan ds com mitments to new central government entities181; other entities (such as Crown 
 
174 Annex 19.2 to the Agreement , indicating the a pplicable thresholds for goods (SDR 200,000), services 
(SDR 200,000), and construction services (SDR 5,000,000); covering, for Canada, provincial , territorial and 
MASH sector entities; and, for the UK, all regional and local contracting authorities and all  contracting authorities 
which are bodies governed by public law.  
175 Annex 19 -3 to the Agreement , indicating the applicable thresholds for goods (SDR 355,000), services 
(SDR 355,000), and construction services (SDR 5,000,000); and listing the corresponding procuring federal and 
sub-federal entities, covering, for Canada, the federal crown corporations and sub -federal government 
enterprises; and, for the UK, the utilities. It also identifies specific thresholds for goods (SDR 400,000), services 
(SDR 400,000),  and construction services (SDR 5,000,000) applicable to specific activities identified in Section 
B of Annex  19-3. 
176 Annex 19 -4 to the CETA, as adjusted.  
177 Annex 19 -5 to the CETA, as adjusted.  
178 Annex 19 -6 to the CETA, as adjusted.  
179 Annex 19 -7 to the CETA, as adjusted, containing general notes.  
180 Annex 19 -8 to the CETA, as adjusted.  
181 For instance: Canada Emission Reduction Incentives Agency; Canadian Environmental Assessment 
Agency; Canadian Grain Commission; Canadian Northern Economic Development Agency , Canadian Polar 
Commission; Canadian Space Agency; Military Police Complains Commission; National Film Board; Office of 
Infrastructure of Canada; Office of the Commissioner of Lobbying; Office of the Communications Security 
Establishment Commissioner; Off ice of the Correctional Investigator of Canada; Office of the Director of Public 
Prosecutions; etc. Canada highlights that, for the first time in an RTA concluded by Canada, it has included 
municipalities, school boards, publicly funded academic, health an d social service entities in its coverage.  WT/REG419/1  
 
- 61 - 
 
  Corporations); and entities at the sub -central government level.182 The procedural rules on 
Government Procurement in the incorporated Chapter 19 are largely based on th ose of the revised 
GPA.  
5.29.  Through their Joint Interpretative Instrument183 the Parties, inter alia , indicate that the 
Agreement maintains the ability of procuring entities within the Parties to use environmental, social 
and labour -related criteria, such as the obligati on to comply with and adhere to collective 
agreements, in procurement tenders, in a way that is not discriminatory and does not constitute an 
unnecessary obstacle to international trade.  
5.30.  The Agreement establishes a Committee on Government Procurement, whic h shall meet, 
inter alia, to consider issues regarding public procurement that are referred to it by a Party, 
exchange information, and discuss any matter related to the operation of the incorporated 
Chapter  19 and consider the promotion of coordinated activities to facilitate access by suppliers to 
procurement opportunities (incorporated Article 19.19). Each Party shall also submit statistics 
relevant to procurement covered by the incorporated Chapter 19.  
5.9  Intellectual property rights  
5.31.  The Agreement  incorporates, with some modifications, the provisions contained in Chapter 
20 of  the CETA on intellectual property rights. It complements the rights and obligations between 
the Parties under the WTO TRIPS Agreement.  
5.32.  Section A of the incorporated Chapter contains general provisions on intellectual property 
rights (IPRs). It includes the Parties' recognition of the importance of the Doha Declaration on the 
TRIPS Agreement and Public Health (adopted on 14 November 2001) and their commitment to 
contribute to the implementation of the Decision by the WTO General Council of 30 August 2003 as 
well as the Protocol amending the TRIPS Agreement (done at Geneva on 6 December 2005). The 
Chapter does not affect the freedom of the P arties to determine whether and under what conditions 
the exhaustion of IPRs applies. Disclosure of information is governed by Article 20.5.  
5.33.  Section B of the incorporated Chapter 20 contains the standards concerning IPRs and, in 
particular sub-sections A t hrough G, relate to  copyright and related rights; trademarks; geographical 
indications (GIs); designs; patents; data protection; and plant varieties  respectively .  
5.34.  The Parties agree to comply with international agreements concerning copyright and related 
rights (incorporated Article 20.17), and to make all reasonable efforts to comply with or accede to 
international agreements concerning , trademarks  (incorporated Article 20.13) , designs  
(incorporated Article 20.13) , and patents (incorporated Article 20.26) as indicated in the relevant 
sub-sections related to these rights. In addition, for copyright there are specific disciplines applicable 
to broadcasting and communication to the public of performances (incorporated Article 20.8); 
protection of technological  measures (incorporated Article  20.9); protection of rights management 
information ( incorporated Article 20.10); liability of intermediary service providers (incorporated 
Article 20.11); and  criminal  procedures and penalties applicable to camcording (incor porated 
Article  20.12).  
5.35.  On trademarks, there are specific disciplines applicable to registration procedure s 
(incorporated Article 20.14); and exceptions to rights conferred by a trademark (incorporated 
Article  20.15).  
5.36.  With respect to geographical indicatio ns (GIs), the incorporated CETA contains specific 
disciplines applicable to GIs identifying products falling within one of the product classes listed in 
Annex 20 -C to the CETA. Sub -section C of Section B of the incorporated Chapter 20 governs the 
protectio n of homonymous GIs (incorporated Article 20.20); exceptions (Article 20.21, as modified); 
Amendments to Annex 20 -A to the CETA (incorporated Article 20.22); and other protection 
 
182 In the case of sub-central procurement commitments have been undertaken by provincial/territorial 
governments, municipalities, academic institutions, schools and hospitals . Sub -federal Crown corporations are 
also covered under the Agreement. In the case of the UK, the coverage under the Agreement is broadly similar 
to the one under the WTO revised GPA, with some adjustment made to the list of covered entities.  
183 Joint Interpretative Instrument on the Agreement ag reed at the time of signature of the Agreement.  WT/REG419/1  
 
- 62 - 
 
  (incorporated Article  20.23). In addition to the incorporated provisions, the  Agreement also 
establishes a  Canada -UK Committee on Geographical Indications.  
5.37.   The Chapter contains specific disciplines applicable to the relationship of designs to copyright 
(incorporated Article 20.25).  
5.38.  With respect to patents, there are  specific disci plines applicable to sui generis protection for 
pharmaceuticals (incorporated Article 20.27); and patent linkage mechanisms relating to 
pharmaceutical products (incorporated Article 20.28).  
5.39.  The incorporated CETA provisions contain specific disciplines appl icable to protection of 
undisclosed data related to pharmaceutical products (incorporated Article 20.29); and protection of 
data related to plant protection products (incorporated Article 20.30).  
5.40.  The Parties agree to cooperate to promote and reinforce the protection of plant varieties on 
the basis of the 1991 Act of the International Convention for the Protection of New Varieties of Plants 
(done at Paris on 2 December 1961)  (incorporated Article 20.31) . 
5.41.  Section C of the Chapter covers enforcem ent of IPRs and, beyond the general obligations 
(incorporated Article 20.32), contains specific disciplines with respect to persons entitled to seek 
application of procedures and remedies (incorporated Article 20.33), evidence and measures for 
preserving e vidence (incorporated Articles 20.34 and 20.35  respectively ),right of  information 
(incorporated Article 20.36), provisional and precautionary measures, and other remedies 
(incorporated Articles 20.37 and 20.38  respectively ), injunctions (incorporated Artic le 20.39), 
damages (incorporated Article 20.40), payment of legal costs (incorporated Article 20.41), and the 
presumption of authorship or ownership (incorporated Article 20.42).  
5.42.  Section D addresses border measures and, in the incorporated Articles 20.43 through 20.49, 
provides for rules on the scope of border measures; application by the right holder; provision of 
information from the right holder; security or equivalent assurance; determination as to 
infringement; remedies; and specific co operation in the area of border measures.  
5.43.  Section E contains the Parties' agreement to cooperate with a view to supporting the 
implementation of the commitments and obligations undertaken under the incorporated Chapter 20  
(incorporated Article 20.50).  
5.10  Comp etition policy, State enterprises, monopolies and enterprises  granted special 
rights or privileges  
5.44.  The Agreement incorporates  Chapter 17 of the CETA on competition policy , with minor 
modifications . It also incorporates, without modification, Chapter 18 of the CETA, which contains 
disciplines on state enterprises, monopolies, and enterprises granted special rights or privileges.  
5.45.  On competition policy, the Parties agree to take appropriate measures to proscribe anti -
competitive business conduct and to coopera te on these matters  (incorporated Article 17.2) . Under 
the incorporated CETA, Canada clarifies the coverage and binding nature of its Competition Act 
(R.S.C. 1985, c. C -34), while the United Kingdom clarifies the coverage and binding nature of its 
rules on  competition with respect to state enterprises, monopolies, and enterprises granted special 
rights  (incorporated Article 17.3) . According to incorporated Article 17.4, nothing in the Chapter 
shall be subject to any form of dispute settlement pursuant to th e Agreement.  
5.46.  On monopolies, State enterprises, and enterprises granted special rights or privileges, the 
Parties confirm their rights and obligations under Articles XVII:1 through XVII:3 of the GATT 1994 
(state trading enterprises), the Understanding on th e Interpretation of Article XVII of the GATT 1994, 
and Articles VIII:1 and VIII:2 of the GATS, which are incorporated into and made part of the 
Agreement  (incorporated Article 18.2) . The incorporated Chapter 18, moreover, provides that each 
Party shall ens ure that in its territory a covered entity accords for non -discriminatory treatment to 
a covered investment, or a good of the other Party or a service supplier of the other Party in the 
purchase or sale of a good or a service  (incorporated Article 18.4) . It also provides that each Party WT/REG419/1  
 
- 63 - 
 
  shall ensure that a covered entity184 in its territory acts in accordance with commercial considerations 
in the purchase or sale of goods or the purchase or supply of services, including when such goods 
or services are suppli ed to or by an investment of an investor of the other Party  (incorporated Article 
18.5) . In certain conditions, the latter commitment does not apply for a monopoly, for the fulfilment 
of the purpose for which the monopoly has been created or for which spec ial rights or privileges 
have been granted (such as a public service obligation or regional development); or in the case of a 
State enterprise, for the fulfilment of its public mandate  (incorporated Article 18.5) . Non-
discriminat ion (incorporated Article 1 8.4) and the commercial considerations disciplines 
(incorporated Article 18.5) do not apply to investment  (incorporated Articles 8.2) and cross border 
trade in services ( incorporated Article 9.2) or to a measure of a covered entity if a reservation of a 
Party taken against a national or MFN treatment obligation, as set out in Annex I, II or III to the 
CETA, as modified, would be applicable if the same measure had been adopted or maintained by 
that Party  (incorporated Article 18.2) . Also excluded from the co verage of the incorporated Chapter 
18 is procurement  by a Party  of a good or service for governmental purposes and not with a view to 
commercial resale or with a view to use in the supply of a good or service for commercial sale , 
whether or not that procur ement is a "covered procurement" within the meaning of the incorporated 
Article 19.2 (Scope and coverage) (incorporated Article 18.2) . 
5.11  Labour  and environment  
5.47.  The Agreement incorporates, without modifications, the provisions of the CETA on sustainable 
development, trade and labour, and trade and environment, which are in the incorporated 
Chapters  22, 23 and 24 of the CETA.  
5.48.  In the i ncorporated Chapter 22 the Par ties aim to, inter alia , promote sustainable 
development; promote dialogue and cooperation between the Parties on labour and environment 
protection; enhance enforcement of their respective labour and environmental laws; promote the 
full use of instruments in the regulation of trade, labour and environmental issues; and promote 
public consultations and participation in the discussion of sustainable development issues. The 
Chapter contains disciplines and commitments on transparency, and on cooperation and pr omotion 
of trade that supports sustainable development , including provisions referring to the specialise 
Committee on Trade and Sustainable Development and joint dialogue with representatives from civil 
society . 
5.49.  With respect to trade and labour, the incorp orated Chapter 23 recognises the right of each 
Party to set its labour priorities and to establish its levels of labour protection. It also affirms the 
Parties' commitment to respect, promote and reali se a number of fundamental principles and rights 
at wor k. The ir obligations as members of the International Labour Organization (ILO) and 
commitments under various ILO Declarations are also recalled. The Chapter addresses commitments  
on upholding the levels of protection afforded in their labour laws and stand ards (incorporated 
Article  23.4). It also contains provisions  with respect to enforcement procedures, administrative 
proceedings, and review of administrative actions with respect to their labour laws (incorporated 
Article 23.5). Public debate and the prom otion of public awareness are encouraged (incorporated 
Article 23.6) and an indicative list of cooperative activities to promote the objectives of the Chapter 
is included (incorporated Article 23.7).  
5.50.  The Parties recognize that  enhance d cooperation to prot ect and conserve the environment  
brings benefits that will promote sustainable development . The incorporated Chapter 24 recogni ses 
the Parties' right to regulate and establish their own levels of environmental protection. The Parties 
nevertheless reaffirm their commitments to effectively implement their respective laws and 
practices, and the multilateral environmental agreements to which they are party. The y recognise 
that it is inappropriate to encourage trade or investment by weakening or reducing the lev els of 
protection afforded in their environmental law  (incorporated Article 24.5). The y also commit  to 
provide access to remedies and procedural guarantees in cases of alleged violations of environmental 
 
184 Under the Agreement, "covered entity" means: (i) a monopoly; (ii) a supplier of a good or service, if 
it is one of a small number of goods or services suppliers authorised or established by a Party, formall y or in 
effect, and the Party substantially prevents competition among those suppliers in its territory; (iii) any entity to 
which a Party has granted, formally or in effect, special rights or privileges to supply a good or services, 
substantially affectin g the ability of any other enterprise to supply the same good or service in the same 
geographical areas under substantially equivalent conditions, and allowing the entity to escape, in whole or in 
part, competitive pressures or market constraints; or (iv) a state enterprise.  WT/REG419/1  
 
- 64 - 
 
  laws (incorporated Article  24.6). The Parties agree to encourage public debate and promote public 
awareness of their environmental laws and be open to receive and give due consideration to 
submission from the public on matters relevant to Chapter 24 (incorporated Article 24.7). When 
preparing and implementi ng measures aimed at environmental protection that may affect trade or 
investment between the Parties, each Party shall take into account relevant scientific and technical 
information and related international standards, guidelines, or recommendations (inc orporated 
Article 24.8). They will make efforts to facilitate the promotion of trade and investment in 
environmental goods and services (incorporated Article 24.9). They also agree on the importance of 
enhanced cooperation and commit to cooperate on trade -related environmental issues of common 
interest (incorporated Article 24.12).  
5.51.  The incorporated CETA contains specific disciplines on trade in forest products (incorporated 
Article 24.10), including an undertaking by the Parties to promote the effective use  of the Convention 
on International Trade in Endangered Species of Wild Fauna and Flora (done at Washington on 3 
March 1973), with regard to timber species considered at risk. The Parties also undertake to 
encourage trade in forest products from sustainabl y managed forests and cooperate on initiatives to 
promote sustainable forest management, including initiatives designed to combat illegal logging and 
related trade. Subjects related to trade in forest products shall be discussed by the Parties in the 
Commi ttee on Trade and Sustainable Development or in the Bilateral Dialogue on Forest Products.185 
5.52.  For any dispute that arises under the incorporated Chapters 23 and/or 24, the Parties shall 
only have recourse to the rules and procedures provided for in these sp ecific Chapters under the 
incorporated Article s 23.9- 23.11 ( for trade and labour) and under the incorporated Articles 24.14 -
24.16 ( for trade and environment).  
5.53.  Chapter 24 refers to the established  Committee on Trade and Sustainable Development, 
establishe d under CETA, is maintained  under the Agreement. It oversees the implementation of the 
incorporated Chapters 22 -24 (incorporated Article 22.4). Each regular meeting or dedicated session 
may include a session with the public to discuss matters relating to t he implementation of these 
Chapters, unless the Parties decide otherwise. Contacts points are also established for the 
implementation of the incorporated Chapters 23 (incorporated Article 23.8) and 24 (incorporated 
Article 24.13).  
5.54.  The Parties also agree t o make use of existing or establish new consultative mechanisms to 
seek the views of civil society, with a balanced representation of employers, unions, environmental 
groups, labour and business organi sations, and other stakeholders as appropriate, on issu es relating 
to trade and labour and trade and environment.  
5.55.  Through their Joint Interpretative Instrument (JII) the Parties, inter alia , confirm their 
common understanding of the provisions on trade and sustainable development, and labour and 
environmental protection. The JII commits the Parties  to the ratification and effective 
implementation of the fundamental Conventions of the Interna tional Labour Organi zation (ILO). The 
JII also recall s that the Parties have committed to an early review of these provisions with a view to 
the effective enforceability of the labour and environment chapters. The JII also confirms that CETA 
creates a fram ework, through a review and stakeholder consultation mechanism, for the Parties to 
cooperate on trade -related labour issues of common interest and a sustained dialogue with civil 
society, to ensure that CETA encourages trade in a way that benefits workers and supports labour 
protection measures.  
5.12  Electronic commerce  
5.56.  Chapter 16  incorporates, without modification, the provisions of the CETA on electronic 
commerce .186 
5.57.  The Parties agree to promote the development of electronic commerce between them. 
Nevertheless,  the Agreement does not impose an obligation on a Party to allow delivery transmitted 
 
185 See the provision on the Bilateral Dialogue on Forest Products in Article 25.3.  
186 Under the incorporated CETA, "electronic commerce" means commerce conducted through 
telecommunications, alone or in conjunction with other information a nd communication technologies.  WT/REG419/1  
 
- 65 - 
 
  by electronic means except in accordance with the Party's obligations under another provision of the 
Agreement.  
5.58.  The Parties shall not impose customs duties, fees, or cha rges on a delivery187 transmitted by 
electronic means but this does not prevent them from imposing internal taxes on digital products or 
other internal charges on a delivery transmitted by electronic means, provided it is imposed in a 
manner consistent with  the Agreement (incorporated Article 16.3).  
5.59.  The Agreement provides that each Party should adopt or maintain laws, regulations or 
administrative measures for the protection of personal information of users engaged in electronic 
commerce and, when doing so, shall take into due consideration international standards of data 
protection of relevant international organisations of which both Parties are a member (incorporated 
Article  16.4).  
5.60.  Considering the potential of electronic commerce as a social and economic d evelopment tool, 
the Parties recognize, inter alia , the importance of facilitating the use of electronic commerce by 
small and medium sized enterprises (incorporated Article 16.5). The Parties also agree to maintain 
a dialogue on issues raised by electroni c commerce (incorporated Article 16.6).  
5.61.  In the event of an inconsistency between the incorporated Chapter 16 and another 
incorporated Chapter, the other Chapter prevails to the extent of the inconsistency (incorporated 
Article 16.7).  
5.13  Small and medium -sized  enterprises  
5.62.  Chapter 8 of the CETA (investment), which is integrated into the Agreement, provides for 
flexibilities with respect to disputes involving small and medium -sized enterprises, including the 
possibility to hold consultations through videoconference or other means where appropriate 
(incorporated Article 8.19); and to propose that a sole Member of the Tribunal hear the claim 
(incorporated Article 8.23), such request being made before the constitution of the division of the 
Tribunal (inc orporated Article 8.27).  
5.63.  Moreover, the CETA Joint Committee shall consider supplemental rules aimed at reducing the 
financial burden on claimants who are small and medium -sized enterprises. Such supplemental rules 
may, in particular, take into account the financial resources of such claimants and the amount of 
compensation sought (incorporated Article 8.39).  
5.64.  Furthermore, the incorporated Chapter 19 (Government Procurement) establishes a 
Committee on Government Procurement that shall meet to, inter alia , consider the promotion of 
coordinated activities to facilitate access for suppliers to procurement opportunities in the territory 
of each Party. These activities may include information sessions and initiatives to facilitate access 
for small and medium -sized enterprises.  
5.65.  Finally, through their Joint Interpretative Instrument the Parties, inter alia , affirm, that the 
Agreement provides benefits to small and medium sized enterprises (SME's) for whom trying to 
meet the cost requirements of customers is a constant  challenge.  
5.14  Other 
5.14.1   Regulatory cooperation  
5.66.  Chapter 21  incorporates, with some modifications, the provisions of the CETA on regulatory 
cooperation. Th e Chapter applies to the development, review and methodological aspects of 
regulatory measures that are cove red by, among others,  the WTO TBT agreement, the WTO SPS 
agreement, the GATT 1994, the GATS, and the incorporated Chapters 4, 5, 9, 22, 23, and 24 of the 
CETA, covering respectively, TBT, SPS, cross -border trade in services, trade and sustainable 
developme nt, trade and labour, and trade and environment (incorporated Article 21.1). It replaces 
the Framework on Regulatory Cooperation and Transparency between the Parties (done at Brussels 
 
187 Under the incorporated CEDA, "delivery" means a computer program, text, video, image, sound 
recording or other delivery that is digitally encoded.  WT/REG419/1  
 
- 66 - 
 
  on 21 December 2004)  and therefore governs the activities previously und ertaken in the context of 
that Framework.  
5.67.  The Parties reaffirm their rights and obligations with respect to regulatory measures under 
the WTO TBT agreement, the WTO SPS agreement, the GATT 1994, and the GATS.  
5.68.  The objectives of regulatory cooperation , which  remains voluntary, include: (i) the 
contribution to the protection of human life, health or safety, animal or plant life or health and the 
environment; (ii) the building of trust, and deepening of mutual understanding of regulatory 
governance; (iii) the f acilitation of bilateral trade and investment and (iv) a contribution to the 
improvement of competitiveness and efficiency of industry (incorporated Article 21.3). The 
incorporated Article 21.4 identifies some possible regulatory cooperation activities. Th e Parties shall, 
when appropriate, consider each other's' regulatory measures or initiatives.  
5.69.  A Regulatory Cooperation Forum (RCF) is established under the incorporated Article 21.6 to 
facilitate and promote regulatory cooperation between the Parties. The  Parties agree to periodically 
exchange information of ongoing or planned regulatory projects in their areas of responsibility 
(incorporated Article 21.7, as modified). Consultations with private entities and the establishment 
of contact points for communi cation between the Parties on matters arising under the incorporated 
Chapter 21 are also foreseen (incorporated Articles 21.8 and 21.9, as modified).  
5.70.  Through their Joint Interpretative Instrument, the Parties, inter alia , reaffirm, in the context 
of their right to regulate, that the Agreement preserves their ability to adopt and apply their own 
laws and regulations that regulate economic activities in the public interest, to achieve legitimate 
public policy objectives such as the protection and promotion of  public health, social services, public 
education, safety, the environment, public morals, social or consumer protection, privacy and data 
protection and the promotion and protection of cultural diversity. They also confirm that the 
Agreement provides a pl atform to facilitate voluntary cooperation between their regulatory 
authorities.  
5.14.2   Bilateral dialogues and cooperation  
5.71.  Chapter 25  incorporates, with some modifications, the provisions of the CETA on bilateral 
dialogue and cooperation . It constitutes a framework to facilitate cooperation on a number of issues 
of common interest. This concerns primarily: strengthening bilateral cooperation on biotechnology 
through the "Dialogue on Agricultural Biotech Market Access Issues"; fostering and fac ilitating 
bilateral dialogue and exchange of information on issues related to trade in forest products through 
the "Bilateral Dialogue on Forest Products"; endeavour to establish and maintain effective 
cooperation on raw materials issues through the "Bilat eral Dialogue on Raw Materials"; encouraging 
enhanced cooperation on science, technology, research and innovation issues ; maintaining a 
dialogue on electronic commerce; and dialogue in the area of motor vehicle technical regulations or 
related technical st andards .188 
5.14.3   Preferences for Canada's Aboriginal Peoples  
5.72.  The Joint Interpretative Instrument recalls that, in the Agreement, Canada has included 
exceptions and carve -outs to ensure its ability to adopt measures that preserve rights and 
preferences for Aboriginal peoples. It reaffirms that Canada is committed to acti ve engagement with 
Indigenous partners to ensure the ongoing implementation of the Agreement continues to reflect 
their interests. 
 
188 Building on the Memorandum of Understanding between the Department of Fore ign Affairs, Trae and 
Development of Canada and the Department for Business, Energy, and Industrial Strategy of the United 
Kingdom concerning Science, Technology and Innovation, signed at Ottawa on 18 September 2017.  WT/REG419/1  
 
- 67 - 
 
  ANNEX 1  
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT  
1. The following tables present tariff liberalization under t he Agreement . A comparison is made 
between these tariffs and the MFN tariffs that are applicable to these products. Tariff-related market 
access conditions for trade between the UK and Canada applicable at the entry into force of the 
Agreement remained lar gely unchanged as compared with the situation prevailing under the terms, 
conditions and commitments under the CETA, when the UK was still an EU Member State. The 
following tables should therefore be read bearing this in mind.  
 
The United Kingdom  
2. Table  A1.1 shows tariff liberalization by the UK in relation to imports from Canada (by total, 
agricultural and industrial  products). In 2021, the UK's average applied MFN rate was 3.8% overall 
(2.5% for industrial  products and 8.9% for agricultural products). 47% of the UK's tariff was duty 
free on an MFN basis; 57.1% of industrial  products and 18.8% of agricultural products were duty 
free. Under  the Agreement in 2021, Canada's exporters enjoyed an absolute margin of preference 
of 3.7% vis-à-vis the prevailing MFN tariff; 2.5% for industrial  goods and 8.7% for agricultural 
products. The share of duty -free lines applicable to imports from Canada in 2021 under  the 
Agreement was 97.7% (99.4% for agricultural products and 92.9% for industrial  products). The 
share of  duty-free tariff lines will further increase to reach 98.9% in 2024 (100% for industrial  
products and 96% for agricultural products).  
Table A1. 1 United Kingdom: Indicators of MFN and preferential rates for imports from 
Canada  
Origin of 
goods  Year  ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff 
lines (%)  Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
Canada  2021 0.1 5.2 97.7 0.2 6.3 92.9 0.0 2.7 99.4 
 2022 0.0 5.6 98.1 0.2 6.9 93.8 0.0 2.3 99.7 
 2023 0.0 4.5 98.1 0.1 5.8 93.8 0.0 1.1 99.7 
 2024  0.0 11.0 98.9 0.1 11.0 96.0 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, average rate for the entire year is used for the 
calculation. And, the products classified beyond HS 8 -digits level are counted one and their tariff 
rates are averaged to the 8 -digits level.  
 Based on the H S 2017 nomenclature.  
Source:  WTO estimates based on data provided by UK.  WT/REG419/1  
 
- 68 - 
 
  3. Table A1.2 gives an indication of additional market access in the UK resulting from the entry 
into force of the Agreement for Canada's top 25 global exports, whi ch accounted for 43.3% of its 
global exports in 2018 -2020; these corresponded to 81 lines in the UK's tariff at the six -digit level 
(using the HS  2017). In 2021, prior to the entry into force of the Agreement, 39 of these tariff lines 
already had (MFN) dut y free access to the UK's market. Under  the Agreement, in 2021, 34 of the 42 
tariff lines, which were dutiable, became duty free for imports  from Canada. The 8 remaining dutiable 
tariff lines will become duty -free in 2024. At the end of the implementation period, none of the lines 
covering Canada's top 25 global exports will be dutiable. It should however be reminded that, as a 
consequence of the entry into force  of the CETA Agreement , in 2017 , 36 of these tariff lines were 
already duty -free in the UK for imports  from Canada.  
Table A1. 2 United Kingdom: Market access opportunities under the agreement for 
Canada's top 25 exports to the world  
Canada 's top export products  
in 2018 -20 Access Conditions to UK's markets  
HS number and description  Share in 
global 
exports 
(%) MFN 202 1 No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
Tariff 
(%) 
No. of 
duty-free 
lines  
No. of 
dutiable 
lines  
2021  2024  
270900  Petroleum oils and oils 
obtained from bituminous 
minerals   14.2 0.0 2     
870324  Motor cars and other motor 
vehicles  3.6 10.0  2  2  
710812  Gold  3.4 0.0 1     
870323  Motor cars and other motor 
vehicles  3.2 10.0  3  3  
271019  Medium oils and 
preparations  1.5 1.2 12 13 13   
271121  Natural gas  1.5 0.0 1     
870322  Motor cars and other motor 
vehicles  1.3 10.0  2  2  
270112  Bituminous coa l 1.1 0.0 2     
310420  Potassium chloride for use as 
fertiliser  1.1 0.0 3     
100199  Wheat and meslin  1.1 *  1  1  
880240  Aeroplanes and other 
powered aircraft  1.0 0.0 1     
300490  Medicaments  1.0 0.0 1     
120510  Low erucic acid rape or colza 
seeds  1.0 0.0 2     
271012  Light oils and preparations  0.9 3.3 2 9 9   
870829  Parts and accessories of 
bodies for tractors, motor 
vehicles  0.9 3.0  2 2   
470321  Semi-bleached or bleached 
coniferous chemical wood 
pulp, soda or sulphate  0.9 0.0 1     
260111  Non-agglomerated iron ores 
and concentrates  0.8 0.0 1     
760110  Aluminium  0.8 2.0  1 1   
260300  Copper ores and 
concentrates  0.7 0.0 1     
760120  Unwrought aluminium alloys  0.6 6.0  2 2   
440711  Pine "pinus spp."  0.6 0.0 3     
440712  Fir "abies spp." and spruce 
"picea spp." sawn or chipped 
lengthwise  0.6 0.0 3     WT/REG419/1  
 
- 69 - 
 
  Canada 's top export products  
in 2018 -20 Access Conditions to UK's markets  
HS number and description  Share in 
global 
exports 
(%) MFN 202 1 No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
Tariff 
(%) 
No. of 
duty-free 
lines  
No. of 
dutiable 
lines  
2021  2024  
440719  Coniferous wood sawn or 
chipped lengthwise, sliced or 
peeled   0.6 0.0 3     
870899  Parts and accessories, for 
tractors, motor vehicles  0.5 2.7  3 3   
840734  Spark -ignition reciprocating 
piston engine   0.5 3.5  4 4   
Total of above  43.3 2.1 39 42 34 8 - 
Note:  Tariff lines subject to in -quota rates are excluded in the computation . For the calculation of 
averages, specific rates are excluded , and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, average rate for the e ntire year is used for the 
calculation. And, the products classified beyond HS 8 -digits level are counted one and their tariff 
rates are averaged to the 8 -digits level.  
 Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by UK and UNSD Comtrade Database . 
 
Canada  
4. Table A1.3 shows tariff liberalization by Canada in relation to imports from the UK (by total, 
agricultural and industrial  products). In 2021, Canada's average applied MFN rate was 5.4% overall 
(2.4% for industrial  products and 17.5% for agricultural produ cts). 72.3% of Canada's tariff was 
duty free on an MFN basis; 76.1% of industrial  products and 57.6% of agricultural products were 
duty free. Under  the Agreement in 2021, the UK's exporters enjoyed an absolute margin of 
preference of 2.5% vis-à-vis the pre vailing MFN tariff; 2.4% for industrial  goods and 3.4% for 
agricultural products. The share of duty -free lines applicable to imports from the UK under the 
Agreement in 2021  was 98.1% (99.5% for agricultural products and 92.6% for industrial  products). 
The share of duty -free tariff lines will further increase to reach 98.5% in 2024 (100% for non -
agricultural products and 93.1% for agricultural products), by which time Canada will have fully 
implemented its tariff elimination programme.  
Table A1. 3 Canada : Indicators of MFN tariff rates and preferential rates for imports from 
the United Kingdom  
 
Origin 
of goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 5.76 20.05  70.38  17.65  44.85  57.31  2.62 10.10  74.04  
UK 2021 3.09 172.68  97.93  14.24  223.44  92.56  0.01 2.29 99.44  
 2022 3.08 200.05  98.23  14.19  227.96  92.90  0.01 2.54 99.72  
 2023 3.08 199.89  98.23  14.19  227.96  92.90  0.00 1.23 99.72  
 2024 3.08 227.96  98.45  14.17  227.96  93.03  0.00 0.00 99.96  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; For the calculation of averages, 
specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by  the Canadian authorities under CETA and the WTO -IDB. WT/REG419/1  
 
- 70 - 
 
  5. Table A1.4 gives an indication of additional market access in Canada resulting from the entry 
into force of the Agreement for the UK's top 25 global exports, which accounted for 38.4% of its 
global exports in 2018 -2020; these corresponded to 42 lines in Canada's tariff at the six -digit level 
(using the HS  2017). In 2021, prior to the entry into force of the Agreement, 25 of these tariff lines 
already had (MFN) duty f ree access to Canada's market. Under  the Agreement, in 2021, 10 of the 
17 tariff lines, which were dutiable, became duty free for imports  from the UK. Of the 7 remaining 
dutiable tariff lines, 1 will become duty -free in 2022; and the remaining 6 lines are to become duty 
free in 2024. At the end of the implementation period, none of the lines covering the UK's top 25 
global exports will be d utiable. As a consequence of the entry into force of the CETA Agreement, in 
2017, 16 of these tariff lines were already duty -free into Canada for exports from the UK.  
Table A1. 4 Canada : Market access opportunities under the agreement for United Kingdom 's top 25 
exports to the world  
United Kingdom's top export products  
in 2018 - 2020  Access Conditions to Canada 's 
import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2021  Duty Free 
under the 
Agreement  Avg. MFN 
applied 
rate (%) Number of 
lines  
2021  
2022  
2024  Duty-
free  
duti-
able 
710813  Gold, incl. gold plated with platinum, in semi -
manufactured forms, for non -monetary purposes  5.6 0.0 1     
270900  Petroleum oils and oils obtained from bituminous 
minerals, crude  4.9 0.0 1     
300490  Medicaments consisting of mixed or unmixed 
products for therapeutic or prophylactic purposes,  3.2 0.0 1     
880330  Parts of aeroplanes or helicopters, n.e.s.  2.9 0.0 1     
841112  Turbojets of a thrust > 25 kn  2.6 0.0 1     
870323  Motor cars and other motor vehicles principally 
designed for the transport of <10 persons, of a 
cylinder capacity > 1.500 cm³ but <= 3.000 cm³  2.4 6.1  1   1 
841191  Parts of turbojets or turbopropellers, n.e.s.  2.1 0.0 1     
870324  Motor cars and other motor vehicles principally 
designed for the transport of<10 persons, of a 
cylinder capacity>3.000 cm³  1.7 6.1  1   1 
220830  Whiskies  1.3 0.0 1     
271012  Light oils and preparations  1.3 5.0 2 1 1   
970110  Paintings, e.g. oil paintings, watercolours and 
pastels, and drawings executed entirely by hand  1.3 5.5 1 1 1   
870322  Motor cars and other motor vehicles principally 
designed for the transport of <10 persons, of a 
cylinder capacity > 1.000 cm³ but <= 1.500 cm³  1.2 6.1  1   1 
711319  Articles of jewellery and parts thereof, of precious 
metal other than silver  1.0 5.8  2 2   
271019  Medium oils and preparations, of petroleum or 
bituminous minerals, not containing biodiesel, 
n.e.s.  1.0 5.0 4 1 1   
870332  Motor cars and other motor vehicles principally 
designed for the transport of <10 persons, of a 
cylinder capacity > 1.500 cm³ but <=  2.500 cm³  0.7 6.1  1   1 
300220  Vaccines for human medicine  0.6 0.0 1     
870340  Motor cars and other motor vehicles principally 
designed for the transport of <10 persons, of a 
cylinder capacity > 1.500 cm³ but <= 2.500 cm³  0.6 6.1  2  1 1 
711021  Palladium, unwrought or in powder form  0.6 0.0 1     
300215  Immunological products, for retail sale  0.6 0.0 1     
851762  Machines for the reception, conversion and 
transmission or regeneration of voice, images or 
other data  0.6 0.0 1     WT/REG419/1  
 
- 71 - 
 
  United Kingdom's top export products  
in 2018 - 2020  Access Conditions to Canada 's 
import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2021  Duty Free 
under the 
Agreement  Avg. MFN 
applied 
rate (%) Number of 
lines  
2021  
2022  
2024  Duty-
free  
duti-
able 
382200  Diagnostic or laboratory reagents on a backing, 
prepared diagnostic or laboratory reagents  0.5 0.0 1     
490199  Printed books, brochures and similar printed 
matter  0.5 0.0 1     
870333  Motor cars and other motor vehicles principally 
designed for the transport of <10 persons, incl. 
station wagons and racing cars, with only diesel 
engine of a cylinder capacity > 2.500 cm³  0.5 6.1  1   1 
840890  Compression -ignition internal combustion piston 
engine "diesel or semi -diesel engine"  0.4 0.0 1     
870899  Parts and accessories, for tractors, motor 
vehicles for the transport of ten or more persons  0.4 6.0 4 5 5   
 
Total of above  38.4  25 17 10 1 6 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate rates  
are included .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on the data provided by Canadian under CETA, WTO -IDB and the UK authorities.  
 WT/REG419/1  
 
- 72 - 
 
  ANNEX 2  
SUMMARY OF THE PARTIES' TARIFF RATE QUOTAS  
Access to the UK market  
1. The UK offers duty -free tariff access under TRQ for the following originating goods:  
Table A2.1 UK's commitments  
Product  Tariff lines  Year  Aggregate 
Annual 
Quantity 
(Metric 
Tonnes 
expressed in 
net weight)  
Processed shrimp  a 16052900 , 16052190 , Ex03061610 , 
Ex03061710 , Ex03062610 , Ex03062710  2021 through 2023  12,443  
Frozen cod  03047190 , 03047910  2021 through 2023  791 
Low and Medium 
Quality Common Wheat  Ex10019900  2021 through 2023  51,600 b 
Sweetcorn  07104000c, 20058000  2021 
2022 and each 
subsequent year  3,380  
4,056  
 
Bison  Ex02011000 , Ex02012020 , Ex02012030  
Ex02012050 , Ex02012090 , Ex02013000  
Ex02021000 , Ex02022010 , Ex02022030  
Ex02022050 , Ex02022090 , Ex02023010  
Ex02023050 , Ex02023090 , Ex02061095  
Ex02062991 , Ex02102010 , Ex02102090  
Ex02109951 , Ex02109959  2021 and each 
subsequent year  232 d 
Fresh or chilled beef 
and veal  Ex02011000 , Ex02012020 , Ex02012030  
Ex02012050 , Ex02012090 , Ex02013000  
Ex02061095  2021 
2022 and each 
subsequent year  2,311 d, e  
2,708 d, e 
Frozen or other beef 
and veal  Ex02021000 , Ex02022010 , Ex02022030  
Ex02022050 , Ex02022090 , Ex02023010  
Ex02023050 , Ex02023090 , Ex02062991  
Ex02102010 , Ex02102090 , Ex02109951  
Ex02109959  2021 
2022 and each 
subsequent year  968 d, e 
1,161 d, e 
Pork 02031211 , 02031219 , 02031911  
02031915 ,02031955 , 02031959  
02032211 , 02032219 , 02032913  
02032915 , 02032955 , 02032959  
02101111 , 02101119 , 02101131  
02101139  2021 
2022 and each 
subsequent year  4,838 d, f 
5,805 d, f 
a Prepared or preserved shrimps and prawns exported from Canada under Section B of Appendix 1 
(Origin Quotas) to Annex 5 of the incorporated Protocol on rules of origin shall not be imported into 
the UK under this tariff rate quota.  
b The above aggregate duty -free quantities shall include, b eginning on the date of entry into force of 
the Agreement, the qua ntity allocated to Canada under the UK's WTO tariff rate quota as reflected in 
the UK's schedule of commitments at the WTO (as attached to G/MA/TAR/RS/570). For greater 
certainty, the refere nce to the quantity allocated to Canada applies both before and after certification 
of the UK's schedule of commitments at the WTO. A change to this quantity resulting from the UK's 
action under Article XXVIII of the GATT 1994 shall apply for the purposes of the Agreement from the 
date on which that change takes effect.  
c Only available during the time -period leading up to the elimination of duties for such good as per the 
staging category applicable to this item in the UK's Schedule to Annex 2 -A to the inc orporated 
Agreement).  
d  When calculating quantities imported, the conversion factors specified in paragraph 19 of the 
incorporated Annex 2 -A shall be utilized to convert Product Weight to Carcass Weight Equivalent.  
e Specific provisions on "change of administration system mechanism" and on "review clause" are 
applicable.  
 WT/REG419/1  
 
- 73 - 
 
  f The aggregate annual duty -free quantities in the table above shall be increased, beginning on the date 
of entry into force of this Agreement, by the quantity established in the United Kingdom’s Canada -
specific WTO tariff quota for meat of swine, fresh, chilled or frozen (cuts of domestic swine, fresh, 
chilled or frozen, with or without bone, excluding tenderloin presented separately) as reflected in the 
United Kingdom’s schedule of commitments at the WTO (as attached to G/MA/TAR/RS/570). For 
greater certainty, the reference to the quantity allocated to Canada applies both before and after 
certification of the United Kingdom’s schedule of commitments at the WTO. A change to this qu antity 
resulting from the United Kingdom’s action under Article XXVIII of the GATT 1994 shall apply for the 
purposes of this Agreement from the date on which that change takes effect.  
Source:  WTO Secretariat based on Annex 2 -A to the incorporated Agreement , as modified.  
UK commitment with respect to its WTO Tariff Rate Quota for High Quality Fresh, Chilled 
and Frozen Meat of Bovine Animals1 
2. Goods imported by the UK from Canada through the UK's WTO quota for high quality meat of 
bovine animals, covered by H S ex0201 and ex0202, as well as ex02061095 and ex02062991 of the 
quantity reflected in the UK's schedule of commitments at the WTO (as attached to 
G/MA/TAR/RS/570), were duty-free from entry into force of the Agreement. For greater certainty, 
the reference  to the quantity allocated to Canada applies both before and after certification of the 
UK's schedule of commitments at the WTO. A change to this quantity resulting from the UK's action 
under Article XXVIII of the GATT 1994 shall apply for the purposes of the Agreement from the date 
on which that change takes effect.  
Access to the Canadian market  
3. An exchange of letters between the Parties governs access to the Canadian market via the 
WTO Cheese  TRQs for cheese exported from the UK to Canada. In order to fac ilitate an orderly 
transition out of the EU and the transition period, and to ensure stability for Canadian allocation 
holders under Canada's WTO cheese TR Q, cheese originating from the UK remain s eligible for import 
into Canada under the EU reserve within  Canada's WTO cheese TR Q until no later than 31  December 
2023. After this date, cheese originating in the UK shall in any case be eligible to be imported under 
the reserve for non -EU WTO Members within Canada's WTO cheese TR Q, and Canada and the UK 
shall e ndeavour to reach an arrangement on cheese as part of the negotiations referred to in Article 
IV of the Agreement, no later than 30 June 2023.  
  
 
1 The specific provisions on "change of  administration system mechanism" and on "review clause" are 
applicable.  WT/REG419/1  
 
- 74 - 
 
  ANNEX 3  
SUMMARY OF THE PARTIES' ORIGIN QUOTAS  
Table A3.1 origin quota commitments by the UK 
Product  Tariff 
lines Annual 
quota  Specific Modalities  
High-sugar 
containing 
products  Ex 130220  
Ex180610  
Ex180620  
Ex210112  
Ex210120  
Ex210690  12,600a 1) quota reviewed at the end of every 5 years for the first three 
consecutive 5 -year period s following entry into force of the Agreement 
(EIF).  
2) At the end of each 5 years for the first three consecutive 5 -year 
periods following EIF, the quota volume will be increased by 20% of 
the volume in the previous period, provided that:  the fill rates ar e at 
least 60%, 70% and 80% respectively in any one year during the first , 
second or third  5 year  periods.  
3) Any increase in the quota volume will be implemented in the first 
quarter of the subsequent calendar year.  
4) Th e review will be conducted by the Committee on Agriculture. At 
the end of the review, if applicable, the Parties shall notify each other 
in writing of an increase in the origin quota under (2) and the date of 
application under (3). They shall ensure the increase in the origin 
quota and the  date of application are publicly available.  
Sugar 
confectionery 
and chocolate 
preparations  1704 
180631  
180632  
180690  4,200a 1) The origin quota will be reviewed at the end of every 5 years 
following EIF, provided that in any one year during the previous 
5 years, the quota fill -rate is at least 60%.  
2) The review will aim to increase the volume based on an examination 
of all rel evant factors, in particular the fill rate, growth in Canadian 
global exports, and total UK imports, and other significant trends in 
trade of the products to which the origin quota applies.  
3) The rate of increase in the origin quota to be set for the subs equent 
5 years and will not exceed 10% of the volume in previous period.  
4) The review will be conducted by the Committee on Agriculture. 
Recommendation to increase the origin quota volume will be 
submitted to the UK-Canada  Joint Committee for a decision i n 
accordance with Art. 30.2.2.  
Processed 
foods  1901 
Ex190211  
Ex190219  
Ex190220  
Ex190230  
190410  
190420  
190490  
1905 
200981  
Ex200989  
210390  
Ex210610  
Ex210690  19,250a 1) The origin quota reviewed at the end of every 5 -year period 
following EIF, provided that in any one year during the previous 5 
years, the origin quota fill -rate is at least 60%.  
2) The review will aim to increase the volume based on the 
examination of a ll relevant factors, in particular the fill rate, growth in 
Canadian global exports and total UK imports, and other significant 
trends in trade of the products concerned.  
3) The rate of increase in the origin quota will be set for the 
subsequent 5 years an d will not exceed 10% of the volume in previous 
period.  
4) The review will be conducted by the Committee on Agriculture. 
Recommendation to increase the origin quota volume shall be 
submitted to the UK-Canada  Joint Committee for a decision in 
accordance wit h Article 30.2.2.  
Dog and cat 
food 230910  
Ex230990  16,200a 1) The origin quota reviewed at the end of every 5 years following EIF, 
provided that in any one year during the previous 5 years, the quota 
fill-rate is at least 60%.  
2) The review will aim to increase the volume based on an examination 
of all relevant factors, in particular the fill rate, growth in Canadian 
global exports and total UK imports, and other significant trends in 
trade of the products concerned.  
3) The rate of increase in the origin quota will be set for the next 5 
years and will not exceed 10% of the volume in previous period.  
4) The review will be conducted by the Committee on Agriculture. 
Recommendation to increase the quota volume shall be submitted to 
the Joint Committee for a decision in accordance with Artic le 30.2.2.  
Fish and 
seafood  Ex030483  10a 1) For each product, if over 80% of the origin quota assigned is used 
in a calendar year, the quota allocation will be increased for the next 
calendar year by 10% of the quota in previous calendar year. The 
growth provision will apply for the first time af ter the expiry of the 
first complete calendar year following EIF and will be applied for 4 
consecutive years.  Ex030612  840 
160411  2,400  
160412  50 
Ex160413  200 
Ex160510  44 WT/REG419/1  
 
- 75 - 
 
  Product  Tariff 
lines Annual 
quota  Specific Modalities  
160521 -
160529  2,700  2) Any increase in the origin quota volume will be implemented in the 
first quarter of the subsequent calendar year. The  UK shall notify 
Canada in  writing if the condition in 1 is met, and if so, the increase 
in the origin quota and the date on which it applies. The parties will 
ensure the information will be made publicly available.  160530  240 
Textiles  510720  192,000b 1) For each of the products, if more than 80% of an origin quota 
assigned to a product is used during a calendar year, the origin quota 
allocation will be increased for the following year. The increase will be 
3% of the origin quota assigned to the product in the previous 
calendar year. The growth provision will apply for the first tie after the 
expiry of the first complete calendar year following the entry into force 
of the Agreement. The annual origin quota allocations may be 
increased during a period of up to ten years.  
2) Any increase in the origin quota volume will be implemented in the 
first quarter of the subsequent calendar year. The importing Party 
shall notify the Pa rty of export in writing if the condition in (1) (above) 
is met, and if so, the increase in the origin quota and the date on 
which the increase is applicable. The Parties shall ensure that the 
increased origin quota and the date on which it becomes applica ble 
are publicly available.  
3) At the request of a Party, the Parties shall meet to revise the 
product coverage quantities of the quota allocations based on 
developments in the relevant markets and sectors. The Parties may 
recommend revisions to the Commit tee on Trade in Goods.   520512  1,176,000  
 520859  60,000m2 
 520959  79,000m2 
 5402 4,002,000  
 540419  21,000  
 5407 4,838,000
m2 
 550510  1,025,000  
 551311  6,259,000
m2 
 5602 583,000  
 5603 621,000  
 5703 196,000m2 
 5806 169,000  
 581100  12,000m2 
 5903 1,754,000
m2 
 590490  24,000m2 
 5906 450,000  
 590700  2,969,000
m2 
 5911 173,000  
 6004 25,000  
 6005 16,000  
 6006 24,000  
 6306 124,000  
 6307 503,000  
Apparel  610130  10,000c 
 610230  17,000  
 6104 535,000  
 610620  44,000  
 610822  129,000  
 610892  39,000  
 610910  342,000  
 610990  181,000  
 6110 478,000  
 611241  73,000  
 6114 90,000 kgs  
 6115 98,000 kgs  
 6201 96,000  
 6202 99,000  
 6203 95,000  
 6204 506,000  
 6205 15,000  
 6206 64,000  
 621040  68,000kgs  
 621050  30,000 kgs  
 6211 52,000 kgs  
 621210  297,000  
 621220  32,000  
 621230  40,000  
 621290  16,000 kgs  
Vehicles  870321  60,000c 1) cumulation with the US will be permitted provided there is a FTA in 
force between each Party and the US consistent with their WTO 
obligations and there is agreement on all applicable conditions, any 
material of HS 84, 85, 87 or 94 originating in the US used in the 
production of a product of HS870321 -870390 in Canada or the UK to 
be considered originating. Without prejudice to the outcome of the 
FTA negotiations between the UK and the US, discussions on  870322  
 870323  
 870324  
 870331  
 870332  
 870333  WT/REG419/1  
 
- 76 - 
 
  Product  Tariff 
lines Annual 
quota  Specific Modalities  
 870390  applicable conditions will include consultations to ensure consistency 
between the calculation method agreed between the UK and the US 
that in the Agreement for products of HS 87, if necessary. Accordingly, 
Table D1 of Annex 5 -A to the incorporated  Protoco l on rules of origin 
will cease to apply one year following the entry into application of such 
cumulation.  
2) cumulation is applicable with similar conditions for similar material 
used in the production of a product of HS 8702.  
3) The application of cumul ation and deletion of Note 1 to Section D 
of Annex 5A will be published on-line. 
4) If 7 years after EIF, cumulation with the US has not entered into 
force, upon request of a Party, both Parties shall meet to review 
provisions in Annex 5 to the  incorporate d Protocol on rules of origin.  
a in Metric Tonnes expressed in net weight.  
b in kilograms net weight, unless otherwise specified.  
c  in units  
Source:  WTO Secretariat, based on Annex 5 -A to the incorporated Protocol on rules of origin , as modified by 
Annex A to the Agreement . 
Table A3.2 origin quota commitments by Canada  
Product  Tariff lines  Annual quota  Specific Modalities  
Textiles  500720  83,000 m2  1) For each product, if over 80% of the quota assigned is used 
in a calendar year, the quota allocation will be increased for 
the following year by 3% of the quota in the previous calendar 
year. The growth will apply for the first year after the expiry of 
the first complete calendar year following EIF. The annual 
quota allocations may be increased up to 10  years.  
2) Any increase in the quota volume to be implemented in the 
first quarter of the next calendar year. Canada shall notify the 
UK in writing if the  condition in (1) is met, and if so, the 
increase in the quota and the date of application. The Parties 
shall ensure that the increased origin quota and the date on 
which it becomes applicable are publicly available.  
3) At the request of a Party, the Parti es shall meet to revise 
the product coverage quantities of the quota allocations based 
on developments in the relevant markets and sectors. The 
Parties may recommend revisions to the Committee on Trade 
in Goods.  
 
 
 
 
 
 
 
 
  511130  205,000 m2 
 5112 200,000 kg  
 520839  116,000 m2 
 540110  18,000 kg  
 540211  504,000 kg  
 5404 275,000 kg  
 5407 636,000 kg  
 5603 1,629,000 kg  
 560741  813,000 kg  
 560749  347,000 kg  
 570242  187,000 m2 
 570320  413,000 m2 
 570490  1,830,000 kg  
 5903 209,000 kg  
 590410  61,000 m2 
 591000  298,000 kg  
 5911 160,000 kg  
 630221  176,000 kg  
 630231  216,000 kg  
 630291  20,000 kg  
Apparel  610510  46,000a 
 6106 126,000  
 6109 722,000  
 6110 537,000  
 6114 58,000 kg  
 6115 1,691,000 pairs  
 620211  15,000  
 620293  16,000  
 620311  39,000  
 620312 -
620349  281,000  
 6204 537,000  
 620520  182,000  
 6210 19,000  
 6211 85,000 kg  
 6212 26,000 dozens  
a in units, unless otherwise specified.  
Source:  WTO Secretariat, based on Annex 5 -A to the incorporated  Protocol on rules of origin , as modified by 
Annex A to the Agreement . 
__________