RESTRICTED  
  
WT/TPR/S/389  
 
17 April 2019  
(19-2557) Page: 1/238 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
CANADA  
This report, prepared for the eleventh Trade Policy Review of Canada, has  been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarifi cation from Canada on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Angelo Silvy 
(Tel: 022 739 5249); Cato Adrian (Tel: 022 739 5469 ); Denby Probst (Tel: 022 739 5847 ); and 
Takako Ikezuki (Tel: 022 739 5534 ). 
 
Document WT/TPR/G/389 contains the policy statement submitted by Canada.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Canada. This report was drafted in 
English.  
  WT/TPR/S/389 • Canada  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ .......................  9 
1   ECONOMIC ENVIRON MENT  ................................ ................................ .......................  15 
1.1   Main Features of the Economy  ................................ ................................ ...................  15 
1.2   Recent Economic Developments  ................................ ................................ .................  17 
1.2.1    Real secto r ................................ ................................ ................................ ............  17 
1.2.2    Fiscal policy and debt  ................................ ................................ .............................  19 
1.2.3    Monetary and exchange rate policy  ................................ ................................ ..........  20 
1.2.4    Balance of Payments  ................................ ................................ ..............................  22 
1.3   Developments in Trade and Investment  ................................ ................................ ...... 23 
1.3.1    Merchandise trade  ................................ ................................ ................................ . 23 
1.3.1.1    Composition of trade  ................................ ................................ ...........................  23 
1.3.1.2    Direction of trade  ................................ ................................ ................................  24 
1.3.2    Trade in services  ................................ ................................ ................................ ... 25 
1.3.3    Trends and patterns in foreign direct investment  ................................ .......................  27 
2   TRADE AND INVEST MENT REGIMES ................................ ................................ ..........  29 
2.1   General Framework  ................................ ................................ ................................ .. 29 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ...... 30 
2.3   Trade Agreements and Arrangements  ................................ ................................ .........  32 
2.3.1    WTO ................................ ................................ ................................ ....................  32 
2.3.2    Regional and prefe rential agreements  ................................ ................................ ...... 32 
2.3.2.1    Reciprocal trade agreements  ................................ ................................ ................  32 
2.3.2.2    Unilateral preferential regime  ................................ ................................ ...............  34 
2.3.3    Other agreements and arrangements  ................................ ................................ ....... 35 
2.4   Investment Regime  ................................ ................................ ................................ .. 35 
2.4.1    Framework  ................................ ................................ ................................ ...........  36 
2.4.2    Policy  ................................ ................................ ................................ ...................  39 
2.4.3    Restrictions  ................................ ................................ ................................ ...........  40 
2.4.4    Incentives and promotion  ................................ ................................ .......................  41 
3   TRADE POLICIES AND PRA CTICES BY MEASURE  ................................ .......................  43 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  43 
3.1.1    Customs procedures, valuation, and requirements  ................................ .....................  43 
3.1.1.1    Trade facilitation  ................................ ................................ ................................ . 50 
3.1.1.2    Customs valuation  ................................ ................................ ..............................  51 
3.1.2    Rules of origin  ................................ ................................ ................................ ....... 51 
3.1.3    Tariffs  ................................ ................................ ................................ ..................  55 
3.1.3.1    Overview  ................................ ................................ ................................ ...........  55 
3.1.3.2    Tariff Str ucture  ................................ ................................ ................................ ... 55 
3.1.3.3    Tariff quotas  ................................ ................................ ................................ ....... 59 
3.1.3.4    WTO bindings  ................................ ................................ ................................ ..... 60 WT/TPR/S/389 • Canada  
 
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  3.1.3.5    Tariff exemptions and reductions  ................................ ................................ ..........  61 
3.1.3.6    Preferential tariffs  ................................ ................................ ...............................  63 
3.1.4    Other charges affecting imports  ................................ ................................ ...............  66 
3.1.4.1    Federal Goods and Services Tax (GST) and provincial sales taxes  .............................  66 
3.1.4.2    Federal excise duties and taxes  ................................ ................................ ............  67 
3.1.4.3    Provincial product -specific taxes  ................................ ................................ ...........  68 
3.1.4.4    Other charges ................................ ................................ ................................ ..... 71 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ..........................  71 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ..............  73 
3.1.6.1    Anti-dumping and countervailing measures  ................................ ............................  73 
3.1.6.2    Safeguards  ................................ ................................ ................................ .........  86 
3.1.7    Other measures affecting imports  ................................ ................................ ............  87 
3.2   Measures Directly Affecting Exports  ................................ ................................ ............  88 
3.2.1    Customs procedures and requirements  ................................ ................................ ..... 88 
3.2.2    Export taxes, charges, and levies  ................................ ................................ .............  89 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ...........................  89 
3.2.4    Export support and promotion  ................................ ................................ .................  90 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................  91 
3.3   Measures Affecting Production and Trade  ................................ ................................ ..... 92 
3.3.1    Incentives  ................................ ................................ ................................ .............  92 
3.3.1.1    Incentives programmes  ................................ ................................ .......................  92 
3.3.1.2    Access to credit  ................................ ................................ ................................ .. 95 
3.3.2    Standards and other technical requirements  ................................ .............................  96 
3.3.2.1    Standards  ................................ ................................ ................................ ..........  96 
3.3.2.2    Technical regulations  ................................ ................................ ...........................  98 
3.3.2.3    Accreditation and conformity assessm ent ................................ .............................  101 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................  102 
3.3.4    Competition policy and price controls  ................................ ................................ ..... 104 
3.3.4.1    Main regulatory and institutional framework  ................................ .........................  104 
3.3.4.2    Developments in the legislative and institutional framework  ................................ ... 106 
3.3.4.3    Developments in enforcement  ................................ ................................ ............  107 
3.3.4.4    International cooperation  ................................ ................................ ...................  108 
3.3.4.5    Price controls ................................ ................................ ................................ .... 109 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ .........  109 
3.3.6    Government procurement  ................................ ................................ .....................  111 
3.3.6.1    Overview  ................................ ................................ ................................ .........  111 
3.3.6.2    Legal, institutional and  policy framework  ................................ .............................  112 
3.3.6.3    Interprovincial procurement arrangements  ................................ ...........................  116 
3.3.6.3.1    Canadian Free Trade Agreement (CFTA)  ................................ ............................  116 
3.3.6.3.2    New West  Partnership Trade Agreement (NWPTA)  ................................ ..............  119 WT/TPR/S/389 • Canada  
 
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  3.3.6.3.3    Trade and Cooperation Agreement Between Quebec and Ontario  .........................  119 
3.3.6.4    WTO GPA and other agreements  ................................ ................................ .........  120 
3.3.6.4.1    GPA ................................ ................................ ................................ ..............  120 
3.3.6.4.2    Comprehensive Economic and Trade Agreement (CETA) ................................ ...... 120 
3.3.6.4.3    Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP)  ................................ ................................ ................................ ........................  121 
3.3.6.4.4    Canada -United States -Mexico Agreement (CUSMA)  ................................ ............  122 
3.3.6.4.5    Procurement obligations taken by provincial and territorial governments under 
trade agreements  ................................ ................................ ................................ ..........  122 
3.3.7    Intellectual property rights  ................................ ................................ ....................  123 
3.3.7.1    Overview  ................................ ................................ ................................ .........  123 
3.3.7.2    General institutional and regulatory framework  ................................ .....................  126 
3.3.7.3    Patents  ................................ ................................ ................................ ............  128 
3.3.7.4    Industrial  designs  ................................ ................................ .............................  130 
3.3.7.5    Trademarks  ................................ ................................ ................................ ...... 131 
3.3.7.6    Geographical Indications  ................................ ................................ ....................  132 
3.3.7.7    Trade Secrets and Data Protection  ................................ ................................ ...... 133 
3.3.7.8    Plant Variety Protection  ................................ ................................ .....................  134 
3.3.7.9    Copyright  ................................ ................................ ................................ .........  134 
3.3.7.10    IP Enforcement  ................................ ................................ ...............................  136 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ ..................  137  
4.1   Agriculture, Forestry and Fisheries  ................................ ................................ ............  137 
4.1.1    Agriculture  ................................ ................................ ................................ ..........  137 
4.1.1.1    Introduction  ................................ ................................ ................................ ..... 137 
4.1.1.2    Border measures  ................................ ................................ ..............................  139 
4.1.1.3    Domestic programmes  ................................ ................................ .......................  141 
4.1.1.4    Export measures  ................................ ................................ ...............................  144 
4.1.1.5    Evolution of support and protection  ................................ ................................ ..... 145 
4.1.1.6    Commodities subject to supply management  ................................ ........................  146 
4.1.1.6.1    Institutional framework  ................................ ................................ ...................  146 
4.1.1.6.2    Milk and dairy  ................................ ................................ ................................  147 
4.1.1.6.3    Poultry and eggs  ................................ ................................ ............................  150 
4.1.1.7    Marketing agencies  ................................ ................................ ...........................  153 
4.1.2    Forestry  ................................ ................................ ................................ ..............  153 
4.1.2.1    Production and trade  ................................ ................................ .........................  154 
4.1.2. 2   Framework, policy, and management  ................................ ................................ .. 155 
4.1.3    Fisheries  ................................ ................................ ................................ .............  156 
4.1.3.1    Trade performance  ................................ ................................ ............................  157 
4.1.3.2    Law, regulations, and policies  ................................ ................................ .............  158 
4.1.3.3    Market access and import requirements  ................................ ...............................  162 
4.1.3.4    Domestic support  ................................ ................................ ..............................  163 WT/TPR/S/389 • Canada  
 
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  4.1.3.5    International arrangements  ................................ ................................ ................  164 
4.2   Mining and Energy  ................................ ................................ ................................ .. 165 
4.2.1    Overview  ................................ ................................ ................................ ............  165 
4.2.2    Institutional and legal framework  ................................ ................................ ...........  166 
4.2.3    Trade policy developments  ................................ ................................ ....................  167 
4.2.4    Taxation  ................................ ................................ ................................ .............  170 
4.2.5    Developments in subsectors  ................................ ................................ ..................  171 
4.2.5.1   Natural gas, petroleum and pipelines  ................................ ................................ ... 171 
4.2.5.2    Electricity and renewable energy  ................................ ................................ .........  174 
4.2.5.3    Minerals  ................................ ................................ ................................ ...........  176 
4.3   Manufacturing  ................................ ................................ ................................ ........  178 
4.3.1    Overview  ................................ ................................ ................................ ............  178 
4.3.2    Automotive industry  ................................ ................................ .............................  179 
4.3.3    Aircraft  ................................ ................................ ................................ ...............  180 
4.3.4    Steel ................................ ................................ ................................ ..................  182 
4.4   Services  ................................ ................................ ................................ ................  183 
4.4.1    Financial serv ices ................................ ................................ ................................ . 183 
4.4.1.1    Overview  ................................ ................................ ................................ .........  183 
4.4.1.2    Banking services  ................................ ................................ ...............................  186 
4.4.1.2.1    Commercial banks  ................................ ................................ ..........................  186 
4.4.1.2.2    Other deposit -taking institutions  ................................ ................................ ...... 189 
4.4.1.2.3    Insurance services  ................................ ................................ .........................  190 
4.4.1.3    Securities  ................................ ................................ ................................ .........  192 
4.4.2    Telecommunications  ................................ ................................ .............................  194 
4.4.2.1    Framework  ................................ ................................ ................................ ....... 195 
4.4.3    Transport  ................................ ................................ ................................ ............  197 
4.4.3.1    Air transport and airports  ................................ ................................ ...................  197 
4.4.3.1.1    Air transport  ................................ ................................ ................................ .. 197 
4.4.3.1.2    Airports ................................ ................................ ................................ .........  199 
4.4.3.1.3    Air services agreements  ................................ ................................ ..................  200 
4.4.3.2   Maritime transport  ................................ ................................ ............................  200 
4.4.3.2.1    Legal framework and developments  ................................ ................................ .. 202 
4.4.3.2.2    Ports ................................ ................................ ................................ ............  203 
4.4.4    Tourism  ................................ ................................ ................................ ..............  204 
4.4.4.1    Overview and  developments  ................................ ................................ ...............  204 
4.4.4.2    Legal and regulatory framework  ................................ ................................ .........  204 
4.4.4.3    Policy actions  ................................ ................................ ................................ ... 205 
4.4.5    E-commerce  ................................ ................................ ................................ ........  205 
5   APPENDIX TABLES  ................................ ................................ ................................ . 207  
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  CHARTS  
 
Chart 1.1 GDP per capita, PPP  ................................ ................................ ...........................  16 
Chart 1.2 Contribution to real GDP growth, 2013 -18 ................................ ............................  18 
Chart 1.3 Canadian dollar exchange rate and Real Effective Exchange Rate (CEER),  
2004-18  ................................ ................................ ................................ ........................  22 
Chart 1.4 Product composition of merchandise trade by HS section, 2014 and 2018  .................  24 
Chart 1.5 Direction of merchandise trade, 2014 and 2018  ................................ .....................  25 
Chart 3.1 Tax revenue distribution, FY2017/18  ................................ ................................ .... 55 
Chart 3.2 Breakdown of applied MFN tariffs, 2014 and 2019  ................................ ..................  58 
Chart 3.3 Applied MFN and preferential tariffs, 2019 ................................ .............................  65 
Chart 3.4 GST and HST/PST rates,  2018 ................................ ................................ .............  66 
Chart 3.5 Anti -dumping decisions and measures, 2010 -18 ................................ ....................  82 
Chart 3.6 Trade in technology -intensive services, 2010 -17 ................................ ..................  125 
Chart 3.7 Charges for the use of intellectual property rights, 2010 -17 ................................ .. 125 
Chart 4.1 Average operating expense -to-receipt ratio by farm type, 2010 and 2015  ...............  138 
Chart 4.2 Canada's exports and imports of agricultural products, 2005 -17 ............................  139 
Chart 4.3 Exports of Canadian forest products, by value and type, 2015 -17 ..........................  155 
Chart 4.4 Canada's production and trade of fish and fishery products, 2013 -17 .....................  158 
Chart 4.5 Gas production and trade, 2010 -17 ................................ ................................ .... 172 
Chart 4.6 Oil production and trade, 2010 -17 ................................ ................................ ..... 173 
Chart 4.7 Mineral production by value, 2017  ................................ ................................ ..... 177 
 
TABLES  
 
Table 1.1 Main economic indicators, 2014 -18 ................................ ................................ ...... 15 
Table 1.2 GDP by type of expenditure, 2014 -18 ................................ ................................ ... 17 
Table 1.3 Balance of payments, 2014 -18 ................................ ................................ ............  22 
Table 1.4 International transactions in services by sector, 2014 -18 ................................ ........  26 
Table 1.5 International transactions in services by main partner s, 2014 -18 .............................  27 
Table 1.6 International investment position by partner, 2014 -17 ................................ ...........  28 
Table 1.7 International investment position by sector, 2014 -17 ................................ .............  28 
Table 2.1 Government jurisdiction  ................................ ................................ ......................  29 
Table 2.2 Overview of FTA trade, 2017  ................................ ................................ ...............  33 
Table 2.3 ICA statistics, 2014 -18, fiscal year basis  ................................ ...............................  38 
Table 2.4 Foreign investment restrictions, 2019  ................................ ................................ ... 40 
Table 3.1 Time -frames for submission of pre -arrival information by mod e and commercial 
client   ................................ ................................ ................................ .............................  44 
Table 3.2 Main CBSA trade facilitation and border security programmes  ................................ . 45 
Table 3.3 Single Window Initiative's participating government departments and agencies, 
and their programmes  ................................ ................................ ................................ ...... 48 
Table 3.4 AMPS by category and client type, 2015 -18 ................................ ..........................  50 WT/TPR/S/389 • Canada  
 
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  Table 3.5 Overview of rules of origin criteria, 2018  ................................ ...............................  52 
Table 3.6 Structure of MFN tariffs, 2014 and 2019 ................................ ...............................  56 
Table 3.7 Ingredient items covered by the unilateral tariff elimination  ................................ .... 57 
Table 3.8 Applied MFN tariff summary, 2019  ................................ ................................ ....... 58 
Table 3.9 In -quota "within -access commitment" tariff lin es, by tariff regime, 2019 ...................  60 
Table 3.10 Tariff lines where applied rates exceed bound rates, 2019  ................................ ..... 61 
Table 3.11 Key features of tariff exemptions and concessions  ................................ ................  62 
Table 3.12 Tariffs under preferential agreements, 2019  ................................ ........................  63 
Table 3.13 Federal excise duty rates, December 2018  ................................ ..........................  67 
Table 3.14 Fuel taxes levied by provinces and territories, December 2018  ..............................  68 
Table 3.15 Provincial and territorial taxes on tobacco, December 2018  ................................ ... 68 
Table 3.16 Selected provincial and territorial taxes and mark -ups on alcoholic beverages, 
December 2018  ................................ ................................ ................................ ...............  69 
Table 3.17 Main import restrictions and licensing requirements, March 2019  ...........................  72 
Table 3.18 Expiry reviews conducted between 2015 and 2018 ................................ ...............  83 
Table 3.19 Main TCS funding programmes and amounts disbursed, 2014 -18 ...........................  91 
Table 3.20 EDC finance and guarantee programmes  ................................ .............................  91 
Table 3.21 Government programmes and services listed on the Innovation Canada digital 
platform for business, January 2019  ................................ ................................ ...................  93 
Table 3.22 Overview of the Competition Act provisions  ................................ .......................  105 
Table 3.23 Ten largest provincial Crown corporations, 2015  ................................ ................  110 
Table 3.24 Federal and provincial government business enterprises, 2015 -17........................  110 
Table 3.25 Overview of federal procurement by type, 2014 -17 ................................ ............  112 
Table 3.26 Procurement  by type of procedure, all contracts above CAD 25,000, 2014 -17 ........  113 
Table 3.27 Canada's participation in selected Intellectual Property Protection agreements  ....... 126 
Table 4.1 Farmgate receipts for selected agricultural commodities, 200 9-17..........................  138 
Table 4.2 WTO Tariff rate quota (TRQ) level and fill rates, 2013 and 2017  ............................  140 
Table 4.3 Export subsidies: commitment levels and annual outlays, 2013 -18 ........................  144 
Table 4.4 Canada's domesti c support, 2012 -14 ................................ ................................ .. 145 
Table 4.5 Evolution of support and protection, 2012 -17 ................................ ......................  145 
Table 4.6 Selected indicators for the Canadian dairy sector, 2010 -17 ................................ ... 147 
Table 4.7 Selected indicators for the poultry sector, 2010 -17 ................................ ..............  150 
Table 4.8 Selected indicators for the eg g sector, 2010 -17 ................................ ...................  152 
Table 4.9 Key forest sector figures, 2015 -17 ................................ ................................ ..... 154 
Table 4.10 Domestic production, imports, and exports, 2015 -17 ................................ ..........  155 
Table 4.11 Federal support programmes for the forest sector, 2018  ................................ ..... 156 
Table 4.12 Fisheries and aquaculture production in Canada, 2013 -17 ................................ ... 157 
Table 4.13 Main fisheries laws  ................................ ................................ .........................  159 
Table 4.14 Budgetary support to fisheries in Canada 2013 -16 ................................ .............  163 
Table 4.15 Reservations regarding energy and mining  ................................ ........................  168 
Table 4.16 Overview of Canada's natural gas industry, 2017  ................................ ...............  171 WT/TPR/S/389 • Canada  
 
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  Table 4.17 Overview of Canada's crude oil industry, 2017  ................................ ...................  172 
Table 4.18 Overview of  Canada's electricity industry, 2017  ................................ .................  174 
Table 4.19 Applied MFN tariffs on selected manufactured products, 2019  ..............................  179 
Table 4.20 Main indicators of the automotive industry, 2013 -18 ................................ ..........  180 
Table 4.21 Aerospace products and parts manufacturing, 2013 -17 ................................ ....... 181 
Table 4.22 Steel industry, 2013 -18 ................................ ................................ ..................  182 
Table 4.23 Selected financial soundness indicators, deposit -taking institutions 2013 -18 ..........  184 
Table 4.24 Main requirements for establishing an insurance business  ................................ ... 191 
Table 4.25 Industry overview, 2014 -17 ................................ ................................ ............  194 
Table 4.26 M ain communications laws and regulations, 2018  ................................ ...............  195 
Table 4.27 Main indicators of air transportation, 2013 -18 ................................ ....................  197 
Table 4.28 Main maritime Acts, 2018  ................................ ................................ ................  203 
 
BOXES  
 
Box 2.1 Investment thresholds, 2019  ................................ ................................ .................  37 
Box 3.1 Schedule of an Anti -Circumvention Investigation  ................................ ......................  75 
Box 3.2 Scope Proceeding Schedule  ................................ ................................ ...................  77 
Box 3.3 Summary of changes to the Canadian International Trade Tribunal Rules  ....................  79 
Box 3.4 The Safe Food for Canadians Act and the Safe Food for Canadians Regulations  ..........  103 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports includ ing re -exports by group of products, 2014 -18 ..............  207 
Table A1.2 Merchandise imports by group of products, 2014 -18 ................................ ..........  208 
Table A1.3 Merchandise exports including re -exports by destination, 2014 -18 .......................  209 
Table A1.4 Merchandise imports by origin, 2014 -18 ................................ ...........................  210 
 
Table A2.1 Involvement in dispute settlement cases, 1 January 2015 -31 January 2019  ..........  211 
Table A2.2 Selected notifications to the WTO, 1 January 2015 -31 December 2018  .................  212 
 
Table A3.1 Definitive Anti -Dumping Measures in Force, as of 31 December 2018  ...................  215 
Table A3.2 Selected federal incentives programmes, 2018  ................................ ..................  218 
Table A3.3 Canadian participation in conformity assessment agreements, 2018  .....................  224 
Table A3.4 Federal Crown corporations,  2018 ................................ ................................ .... 225 
Table A3.5 Exceptions to the scope of the CFTA's Procurement Chapter  ................................  229 
Table A3.6 National IP legislation and international agreements, December 2018 ...................  235 
 
Table A4.1 Indicators for selected agricultural commodities, 2009 -17 ................................ ... 238 
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  SUMMARY  
1. During the review period  (2015 -18), the Canadian economy was characterized by moderate 
GDP growth, low inflation, a relatively stable federal government debt -to-GDP ratio, a declining 
current account deficit,  and real exchange rate depreciation.  
2. After two years of weak growth in 2015 and 2016  due to lower oil prices and the ensuing 
deterioration of its terms of trade, Canada experienced a strong expansion that started in the second 
half of 2016 and in 2017, a s the economy responded to stimulative monetary and fiscal policies. 
Growth continued, albeit at a slower pace ( 1.8%) in 2018 , largely reflect ing lower contributions from 
household consumption and business investment . Canada  is a largely open economy, whic h has long 
relied on trade as a driving force : aggregate two -way trade  flows (imports plus exports) stand at 
approximately the equivalent of 65% of GDP. Canada has achieved a high standard of living for its 
population: GDP per capita in nominal terms reach ed USD 4 6,182  in 201 8. 
3. Canada has a diversified economy, with services accounting for around 70% of GDP 
throughout the review period. At the same time, Canada is among the world's largest producers of 
numerous natural resources, including timber, oil, gas,  minerals, and ores. The manufacturing 
sector's share of GDP remained constant at 10 .4% during the period, while mining accounted for 
almost 8% of GDP in 201 8. Agriculture, energy and mining remain important drivers of Canadian 
trade and of its trade polic y.  
4. During most of the review period, a countercyclical fiscal policy was applied for economic 
stabilization purposes , and  Canada posted small federal government budgetary deficits. In 
FY2017 -18 (ending on 31 March 2018), this deficit reached  0.9% of GDP, virtually unchanged from 
FY2016 –17. Throughout the review period, Canada also posted small provincial government 
operational deficits and a general government deficit, which includes federal, provincial, territorial, 
and local governments. Ca nada's gross federal debt stood at some 44% of GDP in the third quarter 
of 2018 . 
5. After peaking in 2015 , Canada's current account deficit t rended down, led by stronger services 
exports in 2016 and stronger goods exports in 2017. The deficit ranged between 2 .4% and 3.5% as 
a percentage of GDP over the review period. The major exported products are mineral products and 
energy, but their share decreased from 29% of total exports in 2014 to 24% in 2018 , due to declines  
in world prices. Exports of v ehicles and tr ansport equipment represented 16% of total exports  in 
2018, while a gricultural and agri -food product  exports  accounted for about 11% . The main i mport  
categories include machinery and mechanical appliances, vehicles and transport equipment, 
chemical product s, and mineral products (mainly energy) . Canada remains heavily reliant on the 
United States' market,  although, during the review period, there was an increase in two -way trade 
with China . Trade with  Mexico  also increased.  
6. During the review period, accordi ng to the authorities, Canada's trade policy was focused on 
diversifying international trade and foreign direct investment  (FDI),  and on pursuing an inclusive 
approach to trade , focused on transparency, labour rights, the environment, small and medium -sized 
enterprises (SMEs), gender, and Indigenous peoples. A number of initiatives were launched to reach 
these goals, including : a new Export Diversification Strategy, with the goal of increasing overseas 
exports by 50% by 2025; improving support to companies looking to export, particularly SMEs; and 
promoting gender equality through reducing barriers to the participation of women in international 
trade. With respect to the latter, Canada showed  leadership by expanding its internal impact 
assessment process to include labour and gender , and by incorporating Trade and Gender chapters 
in its new or revised FTAs.  
7. As part of its trade policy, Canada continued to pursue reciprocal FTAs during the review 
period , with the implementation, or provisional application, of  three new Agreements: the 
Canada -European Union Comprehensive Economic and Trade Agreement (CETA), the 
Canada -Ukraine Free Trade Agreement (CUFTA), and the Comprehensive and Progressive 
Agreement for Trans -Pacific Partnership (CPTPP). Canada was also acti ve in updating and expanding 
existing FTAs in order to modernize certain FTA provisions, when  revised agreements were 
negotiated with Chile, Israel, and NAFTA partners; however, only the agreement with Chile entered 
into force , in February 2019. Canada is now a party to 14 FTAs. FTA trade is heavily dominated by WT/TPR/S/389 • Canada  
 
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  Canada's NAFTA trading partners, with the United States and Mexico accounting for 94% of imports 
under FTA provisions in 2017.  
8. Canada's long -standing Agreement on Internal Trade (AIT) was replaced , on 1 July 2017 , by 
the Canadian Free Trade Agreement (CFTA). The new Agreement brings about wider and more 
in-depth coverage of internal trade , as it incorporates almost all economic activities and deepens 
the coverage of many provincial and territorial commitments, in particular on government 
procurement. I t has provisions for reducing regulatory barriers through a mechanism for regulatory 
coope ration; strengthens dispute settlement procedures; increases alignment with Canada's 
international obligations; and includes new provisions on environmental protection and labour 
mobility.  
9. During the review period, Canada actively participated in the regul ar work of the WTO 
committees, negotiations, dispute settlement, monitoring, and plurilateral initiatives. It also played 
a leadership role by chairing WTO bodies and promoting initiatives such as trade and gender in the 
WTO, as well as through its work on  WTO reform. Canada notified the WTO of its acceptance of the 
Trade Facilitation Agreement (TFA) on 16 December 2016. Canada completed the procedures and 
implemented its commitments under the Information Technology Agreement ( ITA) Expansion, and 
regularly met its notification requirements during the period .  
10. FDI remains an important aspect of Canada's economy , with direct investment abroad 
amounting to over CAD 1 trillion in 2017, equivalent to over 50% of its GDP. Since its last Review, 
Canada stepped up e fforts to improve its FDI attractiveness , with the establishment of Invest in 
Canada, a one -stop shop for foreign investment , the develop ment of  Guidelines on the National 
Security Review of Investments , and  the eliminat ion of the formal approval procedure s for many 
potential investments through  the increase of investment review threshold levels. However,  most 
long-standing foreign investment restrictions remain in place , although there has been a relaxation 
of ownership rules for the airline sector. Canada 's investment framework comprise s the Investment 
Canada Act (ICA), 1985, which remains largely unchanged since the last Review; 37  bilateral 
investment treaties, known as Foreign Investment Promotion and Protection Agreements (FIPAs); 
and 12 FTAs that have  dedicated chapters on investment.  
11. During the review period, there were no significant amendments to the Customs Act, except 
with respect to, inter alia , regulations concerning reporting requirements on Advance Commercial 
Information (ACI), requiring comme rcial clients to provide Canada Border Services Agency (CBSA ) 
officers with electronic pre -arrival information. The ACI/eManifest programme became operational 
in all modes of transportation after the eManifest requirements for all highway and rail shipment s 
became legally binding in July 2015 . However,  ACI/eManifest's commercial reporting requirements 
and time -frames for required documentation differ depending on the mode of transportation and the 
type of commercial client. Moreover, the CBSA rolled out two  new initiatives to facilitate trade, 
namely the Single Window Initiative and Phase 1 of the CBSA Assessment and Revenue Management 
(CARM).  
12. The 2019 average applied MFN tariff is 6.1%, slightly up from 6.0% in 2014, mainly due to 
changes in the tariff stru cture. About 70.4% of tariff lines are duty -free on an MFN basis, a higher 
percentage than in 2014 (67.0%), mainly reflecting the elimination of import duties on products 
under the ITA Expansion, and the unilateral tariff elimination on certain imported pr oducts used in 
the agri -food processing industry.  Canada continues to apply some non -ad valorem  duties (3.7% of 
total tariff lines) o n agricultural products. Tariffs on agricultural products (WTO definition) remain  
higher ( the simple average is 21.8% , and there are some tariff peaks with ad valorem  equivalents 
(AVEs) of over 100% ) than on non -agricultural products (2.5%). Tariff rate quotas (TRQs) are 
applied on 159 tariff lines, including dairy products, poultry and egg products, beef and veal, and 
certain wheat and barley products. Some 99.7% of  tariff lines are bound ; the exception s comprise  
products such as gas, petroleum, electrical energy, and vessels. A  wide range of tariff and tax 
exemptions are provided under specific regulations.  
13. Canada grants preferential tariff treatment under bilateral or plur ilateral agreements , or under 
unilateral concession schemes . Preferential schemes  includ e the newly -signed FTAs with the 
European Union  (EU), Ukraine , and the 11 CPTPP countries. Under most FTAs, duty -free treatment 
(including MFN duty -free) covers 95% of tariff lines. The simple average tariff for FTA partners is  
slightly  over 3.0% (e.g. 3.7% for CPTPP  partner s, 3.3% for the European Union and Ukraine). 
However, the simple average preferential rates for agricultural products remain high ( ranging WT/TPR/S/389 • Canada  
 
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  between 17% and 21%, as compared to an MFN average tariff of 21.8%), mainly due to exceptions 
from preferences for ce rtain agricultural products such as dairy produce, and meat and fish products. 
On the other hand, tariffs on non -agricultural products are nearly all zero.   
14. Canada's system of indirect taxation includes a 5% value added tax (Federal Goods and 
Services Tax), normally with an additional provincial component levied on the same tax base 
(Harmonized Sales Tax) or on a tax base that may be different (Provincial Sale s Tax). The Federal 
Government also levies excise duties on alcoholic beverages, tobacco products, certain petroleum 
products, and a few other items. The provinces and territories levy their own product -specific taxes, 
often on the same type of goods. Exce pt for increases in some tax rates, the tax regime has remained 
stable overall in the period under review. Following the announcement of the Pan -Canadian Approach 
to Pricing Carbon Pollution in 2016, a federal system or provincial schemes (in line with the  federal 
benchmark) are being put in place to ensure that carbon pollution pricing will apply to a broad set 
of emission sources throughout Canada,  with increasing stringency over time. In conjunction with 
the legalization of cannabis for non -medical purpo ses in Canada in October 2018, an excise duty 
framework was developed for cannabis products.  
15. The basic features of Canada's import controls regime remain unchanged since the last 
Review. Updated regulations to ban asbestos and asbestos products came into force at the end of 
2018, and previous control measures were repealed. For certain softwood lumber products exported 
to the United States, export restraints applied by Canada under certain market conditions are no 
longer in effect , following the expiry of a bilateral agreement on 12 October 2015.  
16. Canada continues to be active user of trade remedies. Between 2015 and 2018, 
45 anti-dumping (AD) investigations were initiated and 33 measures were adopted, compared with 
24 measures adopted between 2011 and 2014.  However, after an increase in 2015 and 2016, the 
number of measures applied in 2017 and 2018 declined. As at 31 December 2018, there were 
83 definitive AD measures in place, compared with 53 reported in December 2014. Over two thirds 
of the measures were applied on steel products; 12% were on other metal products; 8% were on 
agricultural products; and the remainder were on miscellaneous manufactured products. The 
measures applied to 29 trading partners. The average length of the AD measures in place as at 
December 2017 was 6.4 years . As at 31 December 2018, there were 28 countervailing (CV) duty  
measures  and 1 provisional safeguard measure  in place . During the 2015 -18 period, there were 
55 expiry (sunset) review initiation s; as at 31 December 2018, 36 of t he reviews had been 
concluded , and in 33 cases the AD/CV duties were continued, albeit in five cases some products 
were excluded from the order. Canada's trade remedies legislation was modified during the period 
under review . One of the main changes was the introduction of legislation enabling 
anti-circumvention investigations  to determine whether goods are being imported for the specific 
purpose of circumventing existing AD or CV duties . Another main change was the introduction of  
Scope Proceedings to establish whether a particular product falls within the scope of an existing AD 
and/or CV measure.  
17. Canada does not have overarching legislation governing incentives. Various federal agencies 
and provincial/territorial governments implement incentives programme s. Innovation, Science and 
Economic Development (ISED) Canada maintains two special financing programmes: the Strategic 
Innovation Fund (SIF), open to businesses of all sizes across all industrial and technology sectors, 
and the Canada Small Business Finan cing Program (CSBFP) for small businesses. The SIF was 
launched in July 2017 to enhance competitiveness and  incorporates four ISED legacy programmes: 
the Strategic Aerospace and Defence Initiative (SADI), the Automotive Innovation Fund (AIF), the 
Automotiv e Supplier Innovation Program (ASIP), and the Technology Demonstration Program (TDP). 
The SIF provides repayable and/or non -repayable contributions to attract and support new 
high-quality and innovative business investments in Canada.  
18. The development of te chnical regulations in Canada is decentralized; they are established by 
several federal and provincial authorities. At the federal level, the development of technical 
regulations must follow the Cabinet Directive on Regulation and the Policy on Regulatory 
Development, which apply to all federal departments, agencies, and entities. The Directive sets 
four guiding principles of federal regulatory policy: a) regulations must protect and advance the 
public interest and support good government; b) the regulatory  process must be open and 
transparent; c) regulatory decision -making must be evidence -based; and d) regulations must 
support a fair and competitive economy. During the period under review, Canada continued to 
regularly notify its draft technical regulation s, ordinances, and conformity assessment procedures WT/TPR/S/389 • Canada  
 
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  to the TBT Committee. Between 2015 and October 2018, Canada submitted 207 notifications, 
including corrections and appendices. Of these, 137 were new technical regulation notifications.  
Since 2015, only o ne specific trade concern (STC) regarding Canada's technical regulations was 
raised in the TBT Committee . 
19. Regarding the application of sanitary and phytosanitary measures, the Safe Food for 
Canadians Act (SFCA) and the Safe Food for Canadians Regulations ( SFCR) came into effect on 
15 January 2019, representing the most important revision of food safety regulations in 25 years. 
The SFCA consolidates the authorities under other pertinent legislation and the food provisions of 
the Consumer Packaging and Labell ing Act. The SFCR replaces 14 sets of regulations to reduce 
unnecessary administrative burdens on businesses. No new STCs were raised regarding measures 
maintained by Canada in the WTO Committee on Sanitary and Phytosanitary Measures since its last 
Review . 
20. Federal procurement policy is conducted by individual government entities as well as by 
two common service organizations, Public Works and Government Services Canada (PWGSC) and 
Shared Services Canada.  All federal procurements over CAD 2 million are revie wed for potential 
regional and industrial benefits and other national objectives . Procurement at the sub -central level 
is governed by provincial or other sub -central government laws and procurement regulations. New 
provisions regarding inter -province procu rement were put in place in 2017, reflecting the CFTA's 
procurement chapter. Key features of th is chapter include an expansion of the scope of government 
entities covered by open procurement rules , and the establishment of new independent bid protest 
mecha nisms in each jurisdiction . For procurement falling within the scope of the CFTA, the provinces 
grant similar access conditions to procurement from the rest of Canada. Some provinces grant 
provincial or regional preferences to procurement not falling within the scope of the CFTA or the 
GPA. Canada included commitments at the sub -central level in the revised GPA that came into force 
in 2014. Provinces and territories also have government procurement commitments under the CFTA, 
the CETA, and the CPTPP.  
21. During the review period, intellectual property (IP) issues continued to play an important role 
in Canada's trade policy. In April 2018, Canada launched an Intellectual Property Strategy, primarily 
focused on developing new IP tools for businesses, on incr easing awareness with respect to IP 
protection, and on countering IP misuse and identifying needed legislative reforms. Canada 
participates in several WIPO treaties: d uring the review period, Canada joined the Marrakesh Treaty, 
which came into force on 30 September 2016 , and the Hague Agreement, which entered into force 
on 5 November 2018. Also, during the review period, the Government entered into bilateral and 
plurilateral agreements with other countries, where IP issues were covered, including the CETA, the 
new Canada -United States -Mexico Agreement, and the CPTPP; the implementation of these 
Agreements will require changes to Canada's IP protection system.  Since the last R eview, Canada 
introduced significant amendments to its Copyright Act  (e.g. on first distribution rights; rights of 
authors, performers and makers of sound recordings; copyright exceptions; and safe -harbour 
provisions for Internet service providers), its Trademarks Act  (e.g. term and conditions of 
registration ) and its Patent Act (e.g. wit h respect to filing date requirements ; the 
abandonment/reinstatement regime ; restoration of priority ; revocation of granted patents ; and 
protection of third parties ), some of which are yet to be implemented.  
22. Canada is a net agricultural exporter , despite c onsiderable imports of processed food. A highly 
export -oriented crop sector , and the beef and pork industries contribute to the trade surplus, which 
was running at approximately CAD 12 billion annually in recent years. The dairy, poultry and egg 
industries  are subject to supply management, designed to ensure that domestic demand is matched 
by regulated production and regulated imports. Market access is provided through WTO TRQs on 
22 product groups and additional access under some of Canada's preferential a rrangements. The 
CETA includes gradually -increasing quantities of cheese imports from the European Union, and 
Canada established 20 new TRQs under the CPTPP , to be phased in over 11 to 19 years, depending 
on the TRQ. Canada formally eliminated export subsi dies for wheat, coarse grains, oilseeds, 
vegetable oils, oilcakes, and vegetables in December 2015, and has committed to eliminate its 
remaining export subsidies by the end of 2020 in accordance with the Nairobi Ministerial Decision 
on Export Competition. The main programmes and services supporting the agricultural sector are 
provided through a joint federal and provincial/territorial policy framework of a five-year duration. 
The Growing Forward 2 Framework was succeeded by the Canadian Agricultural Partner ship on 
1 April 2018. The Partnership foresees expenditures  on federal programmes and activities totalling 
CAD 1 billion over the current five -year period. A further CAD 2 billion is being made available on a WT/TPR/S/389 • Canada  
 
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  cost-shared basis for programmes and activities  designed and delivered by the provincial and 
territorial authorities.  
23. Canada's forestry sector was characterized by steady output and generally increasing exports 
during the review period, with the sector contributing to 7.1% of total exports in 2017. Th e main 
forest products continue to be newsprint, softwood lumber, and bleached softwood kraft pulp, 
although softwood lumber remains dominant in terms of production and trade. The longstanding 
Softwood Lumber Agreement (SLA) with the United States expired in October 2015 , bringing an end 
to the managed trade of this product; subsequently , trade remedies were imposed , and disputes 
ensued. The provinces and territories retain about 90% of the ownership of the forests; the Canadian 
Council of Forest Ministers (CCFM) remains the main forum for the provinces and territories to work 
cooperatively on policy and management issues . The  federal support programmes remain largely 
intact.  
24. Canada remains a net exporter of fish and fish products. A review of the legal fram ework for 
fisheries is underway since 2016 , and Bill C-68, proposing amendments to the Fisheries Act to ensure 
the long -term sustainability of marine resources , is currently before Parliament. Canada cooperate s 
with international partners to fight illegal, unreported, and unregulated (IUU) fishing worldwide ; in 
October 2018, Canada and nine other countries signed the Agreement to Prevent Unregulated 
Commercial Fishing on the High Seas in the Central Arctic Ocean . Canada continues to work toward s 
the ratification of the Port State Measures Agreement (PSMA) , signed in November 2010. As part of 
the ratification process, and in order to meet its commitments under the PSMA, amendments to the 
Coastal Fisheries Protecti on Act (CFPA) and related regulations are currently being considere d.  
25. Canada accounts for a large share of the world's proven oil and gas reserves, and has 
significant mineral wealth. It is also one of the world's largest crude petroleum producers . The 
minerals sector contributed approximately 19.5% to total goods exports in 2017, while the 
contribution of the energy sector was 22.5%. Both energy and mining are open to trade and to 
foreign investment, subject to reservations, some of which are listed in Ca nada's FTAs. Several 
provincial reservations regarding investment remain in place. Over half of Canada's natural gas 
production is exported, all to the United States . Exports of natural gas and natural gas liquids  require 
authorization, either in the form of a short -term export order, or a long -term licence valid for up to 
40 years . Canada is a net exporter of electricity, exclusively to the United States.  Public ownership 
of electricity utilities is the norm in Canada, with a single, vertically -integrated provincial Crown 
corporation regulating electricity generation, internal transmission and distribution, although there 
are some exceptions.  
26. Manufacturing in Canada covers 21 industry groups that produce goods for both industrial and 
consumer use.  Of parti cular importance are the automotive and aircraft industries. Canada is part 
of the fully -integrated North American market , with an annual production of almost 2.24 million 
vehicles, of which 85% are exported.  Canada is home to more than 700 aerospace compa nies; the 
aircraft industry exports about 75% of its output , and is highly integrated. Support schemes have 
been moving away from specific industries and are now focused on innovation and R&D. In this 
regard, the SIF supports innovation activities across a ll industrial sectors. Although Canada's steel 
industry represented just 2.1% of total manufacturing production in 2018, steel is an important 
input in Canada's main industries. In response to the imposition of tariffs of 25% by the 
United  States in June 2 018 following a Section 232 investigation, Canada imposed surtaxes on 
imports of steel, aluminium and other products from the United States, for a value considered 
equivalent to the Canadian exports affected by the U.S. tariffs and for the duration of thes e 
measures. In June 2018, Canada announced that it would make available up to CAD 2 billion to 
defend and protect the interests of Canadian workers and businesses in the steel, aluminium and 
manufacturing industries, including support through the SIF. In O ctober 2018, Canada imposed 
provisional safeguard measures on seven categories of steel products, in response to an increase in 
imports. A 25% surtax applies to imports that exceed a specified quantity threshold based on 
historical import volumes.  
27. Canada has a sound financial services sector , which is relatively concentrated, with a few 
large, well -capitalized  institutions accounting for the bulk of total assets. The regulation and 
oversight of financial institutions is shared among federal, provincial, an d territorial authorities. 
Banks are generally prohibited from engaging in  commercial activities . However, Parliament passed 
legislation that provides greater flexibility for federally -regulated financial institutions (including 
banks) to undertake in -house commercial activities related to the provision of financial services. WT/TPR/S/389 • Canada  
 
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  Implementation is awaiting the coming into force of enabling regulations. The acquisition of control 
of, or significant interest in, banks is subject to checks and restrictions that ap ply equally to domestic 
and foreign acquirers. The Minister of Finance's approval is required for any acquisition of a 
significant interest (over 10%) of voting or non -voting shares in any bank.   
28. Insurance companies can incorporate either federally or prov incially. Canada's federal 
insurance legislation prohibits the establishment of "composite" companies. Insurers must obtain 
licences for the classes of insurance they intend to underwrite. Federally -incorporated insurance 
companies may engage in other fina ncial services activities, either in -house or through investments 
in other entities, but are restricted in their ability to engage in non -financial commercial activities.  
The licensing of insurance intermediaries is governed by provincial laws . The acquisi tion of control 
or ownership of any insurance company with equity of CAD 2 billion or more is subject to restrictions. 
Securities markets are regulated by the 13 provincial and territorial securities regulators . Dealers, 
advisers, and investment fund manag ers are required to register with the securities regulatory 
authority in each province or territory where they do business. All provincial regulators, except 
Ontario, participate in the "passport system", which, for the matters covered by the passport, giv es 
market participants approval in all passport jurisdictions once a decision from its principal regulator 
is obtained and the requirements of specific harmonized laws  are met.  
29. Canada continued the development of its main infrastructure sectors, i.e. trans port and 
communications, during the review period, although there have not been any significant changes in 
policy direction and the main applicable legislation remains largely unchanged. As regards maritime 
transport, there were some developments , with cha nges to the Coasting Trade Act, as all ships are 
now allowed to reposition their empty containers between locations in Canada on a non -revenue 
basis without a coasting trade licence. Also, as a result of the CETA, certain targeted domestic 
maritime service s were liberali zed. Recent developments in the telecommunications sector include 
preparation for the gradual deployment of the 5G standard across Canada,  and the launching of 
consultations processes with a view to moderni zing the Telecommunication Act, the Broadcasting 
Act, and the Radiocommunication Act in the near future.  
30. Canada's tourism sector has seen strong growth in recent years, in part driven by increased 
air capacity, the removal of certain visa requirements, and liberalization initiatives und ertaken in 
FTAs. A new policy, Tourism Vision, was launched in 2017 , outlining a number of important points 
to increase tourism and setting ambitious targets for further growth.  
 
 
 WT/TPR/S/389 • Canada  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Canada has a diversified and sophisticated economy, with the services sector accounting for 
around  70% of GDP throughout the 2014 -18 review period (Table 1.1). At the same time, Canada 
it is among the world 's largest producers of numerous natural resources, including timber, oil, gas, 
minerals, and ores. The manufacturing sector 's share of GDP remained  constant, at 10.4%, during 
the period, while mining accounted for almost 8% of GDP in 201 8. Agriculture, energy and mining 
remain important drivers of Canadian trade and of its trade policy. Among services, real estate and 
wholesale and retail sales have the largest share of GDP.  
Table 1.1 Main economic indicators, 2014 -18 
 
2014  2015  2016  2017  2018  
General indicators       
GDP at market prices (CAD billion, current prices)a 1,994.9  1,990.4  2,028.2  2,141.5  2,217.5  
GDP per capita (CAD, current market prices)  56,293.4  55,750.1  56,168.7  58,606.8  59,838.3  
Employment ( '000, seasonally adjusted, year 
average)  17,796.5  17,950.3  18,083.1  18,419.3  18,657.7  
Unemployment rate (share of labour force, year 
average)  6.9 6.9 7.0 6.3 5.8 
Business sector labour productivityb 103.8  103.0  103.2  105.1  .. 
Population (millions)  35.4 35.7 36.1 36.5 37.1 
Sectoral distribution of GDP (%)c      
Agriculture, forestry, fishing, and hunting  2.0 2.1 2.1 2.1 2.1 
Mining, quarrying, and oil and gas extraction  7.9 7.6 7.2 7.6 7.8 
Utilities  2.2 2.2 2.2 2.2 2.2 
Construction  8.0 7.8 7.4 7.4 7.3 
Manufacturing  10.4 10.4 10.4 10.4 10.4 
Services  69.5 70.0 70.6 70.2 70.2 
     Wholesale and retail trade  10.5 10.2 10.3 10.6 10.5 
     Transportation and warehousing  4.3 4.4 4.4 4.5 4.5 
     Finance and insurance  6.2 6.5 6.7 6.6 6.6 
     Real estate and rental and leasing  12.3 12.6 12.8 12.7 12.6 
     Professional, scientific and technical services  5.8 5.7 5.7 5.6 5.7 
     Educational services  5.3 5.4 5.4 5.3 5.3 
     Healthcare and social assistance  6.9 6.9 7.0 6.9 7.0 
     Public administration  6.7 6.7 6.7 6.6 6.6 
     Other services  11.5 11.6 11.6 11.3 11.2 
General government financea      
     General government revenue (CAD billion)  768.9  795.3  814.0  855.3  889.8  
     As % of GDP, of which:  38.5 40.0 40.1 39.9 40.1 
          Taxes on income  15.1 15.9 16.0 15.9 16.2 
          Contributions to social insurance plans  4.6 4.8 4.8 4.6 4.6 
          Taxes on production and imports  11.5 12.1 12.3 12.3 12.2 
          Investment income  2.8 2.4 2.3 2.5 2.5 
          Sales of goods and services  3.7 3.8 3.9 3.8 3.8 
     General government expenditure (CAD billion)  762.2  789.1  814.4  849.4  885.1  
     As % of GDP, of which:  38.2 39.6 40.2 39.7 39.9 
         Final expenditure on goods and services  23.9 24.7 24.9 24.5 24.6 
         Current transfers to households  9.0 9.6 9.9 9.9 9.9 
         Interest on debt  3.1 3.1 3.0 2.8 2.9 
     General government surplus or deficit  
     (% GDP)  0.3 0.3 -0.02 0.3 0.2 
Net lending (+) or net borrowing ( -) (% GDP)  0.2 -0.1 -0.4 -0.3 -0.4 
Federal government budgetary balance (% of GDP)  0.1 0.2 -0.2 -0.1 0.4 
General government gross debt (% of  GDP) 85.0 90.5 91.1 89.7 86.6 
Federal government gross debt (% of GDP)  31.6 31.8 32.0 31.4 .. 
Monetary aggregatesd      
M1+ (% growth)  7.5 7.8 8.7 9.5 4.8 
M1++ (% growth)  7.3 7.7 8.8 8.7 3.8 
Prices and interest rates       
Consumer Price Index (CPI) (average % change)  1.9 1.1 1.4 1.6 2.3 WT/TPR/S/389 • Canada  
 
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2014  2015  2016  2017  2018  
Overnight rate (policy instrument) (%)  1.0 0.6 0.5 0.7 1.4 
External sector       
Real Canadian Effective Exchange Rates (CEER)e 
index  119.3  109.9  108.3  110.0  109.3  
CAD per USD (period average)  1.10 1.28 1.32 1.30 1.30 
Current account balance (percentage of GDP)  -2.4 -3.5 -3.2 -2.8 -2.6 
Trade in goods and services (percentage of GDP)  63.9 65.6 64.7 64.3 65.8 
Total reserves excluding gold (USD billion)  74.6 79.7 82.7 86.7 .. 
     in months of imports  1.3 1.6 1.7 1.6 .. 
.. Not available.  
a Seasonally -adjusted, at annual rates.  
b Labour productivity is a measure of real GDP per hour worked (2012=100).  
c According to the North American Industry Classification System (NAICS), 2002; the shares are based on 
seasonally -adjusted GDP at basic prices, in chained 2012 dollars.  
d Gross M1 is currency outside banks plus personal checking accounts plus current accounts plus some 
adjustments to M1; M1++ is M1+ plus non -chequable notice deposits held at chartered banks , trust and 
mortgage loan companies, and credit unions/ caisses populaires  less interbank non -chequable notice 
deposits plus continuity adjustments.  
e The CEER index (1999=100) is a weighted average of bilateral exchange rates for the Canadian dollar 
against the currencies of Canada 's major trading partners.   
 
Source:  Statistics Canada. Viewed at: https://www150.statcan.gc.ca/n1/en/type/data?MM=1 ; Bank of Canada. 
Viewed at: https://www.bankofcanada.ca/rates/ ; IMF online information. Viewed at:  
 http://elibrary -data.imf.org/DataExplorer.aspx . 
1.2.  During the review period, the Can adian economy was characterized by moderate GDP growth, 
low inflation, a relatively stable federal government debt -to-GDP ratio, a deficit of the current 
account of the balance of payments ranging between 2.4% and 3.5%, and a nominal and real 
exchange rate  depreciation.  
1.3.  Canada 's economy is generally open and competitive, with aggregate two -way commercial 
flows (imports plus exports) at approximately 65% of GDP. Exposure to the global market has 
created a permanent challenge to improve the competitiveness of  the Canadian economy. Indeed, 
Canada 's previous TPRs bear witness to long -standing efforts by federal and provincial governments 
to streamline laws and regulations, simplify and harmonize documents and procedures, improve 
private -sector consultation, and in general strengthen governance. These structural efforts have 
been underpinned by generally balanced macroeconomic management (see below). Canada has 
achieved a high standard of living for its population. GDP per capita reached CAD 59,838 in 201 8 
(some U SD 4 6,182) in nominal terms, up from CAD 58,607 in 2017 , which was equivalent to 
USD 43,274 in purchasing -power parity (PPP) terms (Chart  1.1). 
Chart 1.1 GDP per capita, PPP  
 
Note:  Based on USD, constant prices, 2010 PPP terms.  
Source:  OECD Statistics.  
30,00032,00034,00036,00038,00040,00042,00044,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Canada
OECDChart 1. [Canada] GDP per capita, PPPs 
Note:    Based on USD, constant prices, 2010 PPPs.
Source: OECD.Stat.WT/TPR/S/389 • Canada  
 
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  1.4.  Canada was the world 's tenth -largest economy in 2017, compared to eleventh in 2013.1 Also, 
in 2017, it was the world 's twelfth -largest merchandise exporter – unchanged from 2014 – and 
regressed from eleventh  – to twelfth -largest importer over the same period. Canada ranked as the 
world 's eighteenth -largest commercial services exporter (including intra -EU trade) and the 
fourteenth -largest importer of commercial services, in 2017, highlighting the importance of  Canada 
at the forefront of trade in a number of commercial services.  
1.5.  The United States accounts for a considerable share of Canada 's trade in goods and services. 
Canada and the United States have a deeply integrated economic relationship; geographic prox imity, 
sophisticated cross -border supply chains, and similar business environments have long made them 
each other 's most important trading partners.  
1.2  Recent Economic Developments  
1.2.1   Real sector  
1.6.  After two years of weak growth in 2015 and 2016, when real GDP ex panded by 0.7% and 
1.1%, respectively, as the economy adjusted to lower oil prices and the ensuing deterioration of its 
terms of trade, Canada experienced a strong expansion that started in the second half of 2016 and 
in 2017, as the economy responded to s timulative monetary and fiscal policies.2 Growth continued, 
albeit at a slower pace in 2018 (Table 1.2).  
Table 1.2 GDP by type of expenditure, 2014 -18 
 2014  2015  2016  2017  2018  
Annual %age change (chained 2012  dollars , seasonally -adjusted)  
GDP at market prices  2.9 0.7 1.1 3.0 1.8 
Final consumption expenditure  2.0 2.0 2.1 3.1 2.2 
     Household final consumption expenditure  2.7 2.2 2.1 3.6 2.1 
          Goods  2.9 2.3 2.2 4.0 1.4 
          Services  2.5 2.2 2.1 3.3 2.6 
Non-profit institutions serving households ' final consumption 
expenditure  -0.8 4.7 6.4 -0.6 2.8 
General governments ' final consumption expenditure  0.6 1.4 1.8 2.1 2.5 
Gross fixed capital formation  2.3 -5.2 -4.3 3.0 0.8 
     Business gross fixed capital formation  3.3 -6.4 -4.6 2.3 0.3 
     Non-profit institutions serving households ' gross fixed capital 
formation  6.3 -9.0 -3.7 3.6 -1.1 
     General governments ' gross fixed capital formation  -3.4 1.5 -2.3 6.3 3.4 
Exports  of goods and services  6.2 3.4 1.3 1.1 3.3 
Imports of goods and services  2.5 0.6 0.0 4.2 2.9 
% of GDP at current market prices  
Final consumption expenditure  76.1 78.7 79.6 78.8 79.1 
     Households ' final consumption expenditure  54.5 56.4 57.0 56.6 56.7 
          Goods  24.1 24.7 25.0 24.9 24.8 
          Services  30.4 31.7 32.1 31.7 31.9 
Non-profit institutions serving households ' final consumption 
expenditure  1.3 1.4 1.5 1.5 1.5 
General governments ' final consumption expenditure  20.3 20.9 21.0 20.7 20.8 
Gross fixed capital formation  24.4 23.9 22.9 22.7 22.4 
      Business gross fixed capital formation  20.6 19.9 19.1 18.8 18.4 
Non-profit institutions serving households ' gross fixed capital 
formation  0.2 0.1 0.1 0.1 0.1 
General governments ' gross fixed capital formation  3.6 3.8 3.7 3.8 3.9 
Investment in inventories  0.5 0.0 0.0 0.8 0.6 
Exports of goods and services  31.5 31.6 31.2 31.0 31.8 
Imports of goods and services  32.5 34.1 33.6 33.4 34.0 
Statistical discrepancy  0.0 -0.1 -0.1 0.0 0.0 
Source:  Statistics Canada, Table: 36 -10-0104-01. 
1.7.  The 1.8% growth posted in 201 8 largely reflected lower contributions from household 
consumption and business investment. Net exports of goods and services contributed positively to 
                                                
1 World Bank indicators. Viewed at: http://stat.wto.org/CountryProfiles/CA_E.htm . 
2 Bank of Canada (2018), Annual Report 2017 . Viewed at: https://www.bankofcanada.ca/wp -
content/uploads/2018/03/annualreport2017.pdf . WT/TPR/S/389 • Canada  
 
- 18 - 
 
  growth in 2018 after bei ng a drag on growth in 2017. (Chart 1.2) Exports of services were strong 
over the review period, helped by the depreciation of the Canadian dollar.  
1.8.  The contribution of investment to GDP growth was negative in both 2015 and 2016, mainly 
due to a sharp decl ine in private capital formation. This trend was reversed in 2017  and 2018. The 
expansion of gross fixed capital formation (GFCF) was more subdued in 2018 compared to 2017, as 
investment in residential and non -residential structures contracted for the year . After a 1.8% 
increase in 2018, the Bank of Canada is projecting GDP growth of 1.7% in 2019, and 2.1% in 2020.3 
Chart 1.2 Contribution to real GDP growth, 2013 -18 
(Percentage points)  
 
Source:  WTO Secretariat, based on Statistics Canada, Table: 36 -10-0128-01 
1.9.  Since November 2015, the Canadian economy has created over 820,000 new jobs4 (seasonally 
adjusted) to December 2018 and the unemployment rate has fallen considerably to 6.3% in 2017, 
and further  to 5.8% in 2018 (Table 1.1), building upon the continuous improvement since 2010. In 
2018, there was also a net improvement in labour productivity which, in the past, had lagged behind 
the productivity of other advanced economies. In fact, increasing comp etitiveness remains a 
challenge for Canada. During most of the review period, the relatively subdued performance of 
business labour productivity was partly compensated by a depreciating real exchange rate, although 
this does not seem to have alleviated the  problem (see below). Productivity could benefit from 
structural reforms regarding, for instance, innovation policies, but also from simplifying 
administrative procedures.  
1.10.   The strong broad -based expansion that Canada was experiencing in 2017  slowed down i n 
2018,  as household expenditures and investment slowed, while exports expanded faster than 
imports . The International Monetary Fund (IMF) expects GDP growth of 1.9% in 2019 and 2020 .5 
Indeed, most of Canada 's economic developments will be strongly influen ced by the evolution of its 
trade relations with the United States, given the large share of business -sector jobs that depend on 
                                                
3 Bank of Canada (2019 ), Monetary Policy Report , January . Viewed at : 
https://www.bankofcanada.ca/wp -content/uploads/2019/01/mpr -2019-01-09.pdf . 
4 Government of Canada online information. Viewed at: 
https://www.budget.gc.ca/2018/doc s/plan/overview -apercu -en.html . 
5 IMF (2019), World Economic Outlook Update, January 2019. V iewed at : 
https://www.imf.org/en/Publications/WEO/Issues/2019/01/1 1/weo -update -january -2019. 
-3-2-1012345
2013 2014 2015 2016 2017 2018[updated March 2019]
Chart 1. [Canada] Contributions to percent change in real GDP, 2013 -18
(Percentage point)
WTO Secretariat, based on Statistics Canada, Table: 36 -10-0128-01 [March 2019]Household  final consumption expenditure Government consumption and GFCF
Exports of goods & services Imports of goods & services
Business gross fixed capital formation
Total GDP growthOther
Source: WT/TPR/S/389 • Canada  
 
- 19 - 
 
  foreign demand. In this respect, in the view of the authorities, the conclusion of negotiations to 
modernize the North American  Free Trade Agreement (NAFTA) and the signature of the 
Canada -United States -Mexico Agreement (CUSMA) provide stability and predictability, given 
Canada 's close relationship with the United States. Also, Canadian exporters can take advantage of 
the other recently -enacted agreements with Europe and with Asia (Section 2). On the other hand, 
the perspective of higher interest rates over the medium term will increase the expected return for 
private investments; these could also suffer from the competition stemming from government 
borrowing and growing private and public debt.  
1.11.   The Bank of Canada considers that the economy has been operating near capacity for more 
than a year. Real GDP growth is estimated to have been slower than potential in the fourth quarter 
of 2018, leaving the output gap between -1.0 and +0.0%. The Bank estimates the annual growth 
rate of potential output to average 1.9% over the 2018 –20 period. It also estimates a neutral 
nominal policy rate, a medium - to long -term equilibrium concept, defined as the real rate consistent 
with output sustainably at its potential level and inflation equal to target (currently the inflation 
target is 2%, see below). The neutral rate is estimated to be between 2.5% and 3.5%.6 
1.2.2   Fiscal policy and debt  
1.12.   During the review period, a countercyclical fiscal policy was launched for economic 
stabilization purposes, in the context of falling commodity prices. The Organizat ion for Economic 
Co-operation and Development (OECD) considers Canada 's overall stance of fiscal policy to have 
been stimulatory over the 2016 -17 period, during which the underlying primary budget balance of 
the general government declined, to have been ne utral in 2018, and expected it to turn slightly 
stimulatory in 2019.7 
1.13.   Several of the measures applied to stimulate the economy were contained in the 2016 federal 
budget. They include the introduction of the new Canada Child Benefit, a simpler, tax -free, mo re 
generous and better -targeted system than the previous one . Among the countercyclical 
enhancements was the Working Income Tax Benefit (WITB), a refundable tax credit that 
supplements the earnings of low -income workers. In 2016, the Government announced a  
CAD 250 million enhancement of the WITB, as part of the improvement of the Canada Pension Plan 
(CPP). This strengthened benefit will be named the Canada Workers Benefits (CWB) and will take 
effect in 2019. In 2017, the Government committed to further boos ting the WITB by an extra 
CAD 500 million annually. In Budget 2018, the Government proposed to increase the maximum 
benefits under the CWB and  increase the income level at which the benefit is phased out completely.  
1.14.   In June 2016, the Government reached an agreement with the provinces to enhance the CPP, 
which began to be phased in as of January 2019. Quebec  took action to enhance the Quebec  Pension 
Plan in a similar way. The CPP Enhancement will raise the maximum CPP retirement benefit by up 
to 50%, over ti me. This translates into an increase of more than CAD 7,000 in the current maximum 
retirement benefit, from CAD 13,610 to nearly CAD 21,000. Building on this, in December 2017, 
federal and provincial ministers reached a unanimous agreement in principle to take the following 
actions, beginning in 2019: (a) increase retirement benefits under the CPP Enhancement, both for 
parents who take time off work to care for young children, and for persons with severe and prolonged 
disabilities; (b) raise survivors ' pensions for individuals under age 45 who lose their spouse, by 
providing a full survivor 's pension; and (c) provide a top -up disability benefit to retirement pension 
recipients under the age of 65 who are disabled and meet eligibility requirements.  
1.15.   In April 2 017, the Canada Mortgage and Housing Corporation launched the Rental 
Construction Financing Initiative, which will provide CAD 2.5 billion in low -cost loans to support the 
construction of new rental housing, relieving pressure in rental markets that are ex periencing low 
vacancy rates. To be eligible, borrowers must demonstrate that their projects are financially viable 
without ongoing operating subsidies. The Initiative will prioritize projects that demonstrate greater 
social outcomes and may offer loans fo r up to 100% of the cost of these projects. Lower -cost loans 
will be provided for terms of up to ten years. In October 2017, the Government announced it would 
lower taxes on small businesses from 10.5% to 9.0% by 2019. At the same time, it is addressing 
                                                
6 Bank of Canada (201 9), Monetary Policy Report , January . Viewed at: 
https://www.bankofcanada.ca/wp -content/uploads/2019/01/mpr -2019-01-09.pdf . 
7 OECD (2018), OECD Economic Surveys, Canada , Key Policy Insights , July. Viewed at: 
http://www.oecd.org/eco/surveys/Canada -2018-economic -survey -key-policy -insights.pdf . WT/TPR/S/389 • Canada  
 
- 20 - 
 
  tax planning strategies using private corporations, including limiting the benefits of passive 
investments held within private corporations.8 Budget 2018 also committed to introducing new 
gender budgeting legislation to enshrine gender budgeting in the Feder al Government 's budgetary 
and financial management processes. Through this legislation, the Canadian Gender Budgeting Act, 
Gender -based Analysis Plus (GBA+) will be applied to new budgetary decisions, and to the 
Government 's tax expenditures and existing s pending base.  
1.16.   During most of the period under review, Canada posted small federal government budgetary 
deficits. According to the Department of Finance, the Federal Government posted a budgetary deficit 
of CAD 19.0 billion in FY2017 –18 (ending on 31 March  2018), equivalent to 0.9% of GDP, virtually 
unchanged from FY2016 –17. This resulted from a 6.9% increase in revenues and a 6.4% increase 
in expenses from the prior year.9 Revenues totalled CAD 313.6 billion in FY2017/18: personal income 
tax revenues accou nted for 49% of the total, followed by corporate income tax revenues (15.2%), 
General Sales Tax (GST) revenues (11.7%), other taxes and duties (5.4%, of which 1.7% 
corresponded to Customs import duties), employment insurance premiums (6.7%), and 
non-reside nt income tax revenues (2.5%). Other revenues, which include net income from 
enterprise Crown corporations and other government business enterprises, revenues from sales of 
goods and services, returns on investments, net foreign exchange revenues, and misc ellaneous 
revenues, contributed 9.4% of revenues in FY2017/18. The revenue ratio as a percentage of GDP 
stood at 14.6% in FY2017/18, up from 14.4% in FY2016/17; the increase was mainly due to growth 
in personal and corporate income tax revenues and gains f rom enterprise Crown corporations.  
1.17.   Expenses amounted to CAD 332.6 billion in FY2017/18, of which transfer payments accounted 
for roughly two thirds. Other direct programme expenses accounted for 29.8% of total expenses. 
Transfers included major transfers t o persons (28.2% of total expenses), major transfers to other 
levels of government (21.2%), and other transfer payments, which comprise transfers to Indigenous 
Peoples, assistance to farmers, students and businesses, support for research and development 
(R&D), and international assistance (14.2%). Public debt charges amounted to 6.6% of expenses in 
FY2017/18.  
1.18.   Throughout the review period, Canada also posted small provincial governments ' operational 
deficits  and a general government deficit, which includes f ederal, provincial, territorial, and local 
governments . The Canada and Quebec pension plans have exceeded 1% of GDP since 2016. In 
2018, the IMF noted that the federal fiscal balance had improved but progress at the provincial level 
was more mixed.10  
1.19.   Canad a's gross federal debt stood at some 44% of GDP in the third quarter of 2018, while net 
debt was slightly below 30%. General government debt amounted to some 113% of GDP. According 
to a recent report by the Parliamentary Budget Office, from the perspective  of the government sector 
as a whole (that is, federal and subnational governments and public pension plans combined), 
current fiscal policy in Canada is sustainable over the long term. Relative to the size of the Canadian 
economy, total government net deb t is projected to remain below its current level over the long 
term. However, the report considers that, for the sub -national government sector as a whole, current 
fiscal policy is not sustainable over the long term because of its effect on government debt  
accumulation as a share of the economy .11  
1.2.3   Monetary and exchange rate policy  
1.20.   The Bank of Canada 's mandate is to conduct monetary policy to promote the economic and 
financial well -being of Canadians by keeping inflation low, stable and predictable. The Bank conducts 
a policy of inflation targeting. In 2016, the Government and the Bank of Canada renewe d the 
                                                
8 Government of Canada (2018), Budget 2018 . Viewed at: 
https://www.budget.gc.ca/2018/docs/plan/c hap-01-en.html . 
9 Department of Finance (2018), An nual Financial Report of the Government of Canada, 2017 -2018. 
Viewed at: https://www.fin.gc.ca/afr -rfa/2018/afr -rfa18 -eng.pdf . 
10 IMF (201 8), Canada: 2018 Article IV Consultation --Press Release; Staff Report; and Statement . 
Viewed at: https://www.imf.org/en/Publications/CR/Issues/2018/07/16/Canada -2018-Article -IV-Consultation -
Press -Release -Staff-Report -and-Statement -by-the-46084 . 
11 Office of the Parliamentary Budget Officer (PBO) (2018), Fiscal Sustainability Report 2018 . Viewed at: 
https://www.pbo -dpb.gc.ca/web/default/files/Documents/Reports/2018/FSR%20Sept%202018/FSR_2018_25S
EP2018_EN_2.pdf . WT/TPR/S/389 • Canada  
 
- 21 - 
 
  inflation -control target for a further five -year period, ending 31 December 2021.12 The target, as 
measured by the CPI, remains at the 2% midpoint of a control range of 1% to 3%. A 2% CPI increase 
rate is considered to be consistent with an economy op erating close to potential output. Canada 's 
inflation -targeting approach is symmetric: the Bank of Canada is equally concerned about inflation 
rising above or falling below the 2% target. It is also flexible, in the sense that the Bank generally 
seeks to r eturn inflation to target over a horizon of six to eight quarters.  
1.21.   Acknowledging the volatility of certain CPI components, when setting monetary policy, the 
Bank focuses on a set of "core" inflation measures that better reflect the underlying trend of inf lation. 
These measures act as an operational guide to help the Bank achieve the CPI inflation  desired , but 
they are neither a target nor a replacement for CPI inflation.13  
1.22.   The Bank of Canada carries out monetary policy mainly by changing the target for the  
overnight or policy rates.14 The Bank of Canada last increased its target for the overnight rate to 
1.75% in October 2018.15 The Bank Rate (lending) target was correspondingly set at 2%, and the 
deposit rate target at 1.5%. On 9 January 2019, the Bank decid ed to leave rates unchanged and, in 
its decision, noted that the policy interest rate needed to rise over time into a neutral range to 
achieve the inflation target.16 During 2018, the Bank gradually increased interest rates to reduce 
the monetary stimulus o f the economy, hiking rates by 0.25 percentage points on three occasions, 
in January, July and October, so the monetary policy rate increased from 1% at the beginning of the 
year, to 1.75% at the end. The 2018 hikes followed two increases in July and Septe mber 2017, after 
the policy rate had remained unchanged for two years, between July 2015 and July 2017.  
1.23.   CPI inflation averaged 2.3% in 2018 and has remained within its target range of 1 -3% 
throughout the review period (Table 1.1). However, total CPI inflat ion increased somewhat during 
2018. Prices were up on an annual average basis in all eight major components in 2018,  led by 
price increases in transportation and energy.17 Core inflation, however, has remained close to 2%.  
1.24.   Canada maintains a freely floatin g exchange rate system with no restrictions on currency 
conversion and transfers for current international transactions. Between 2013 and 2016, the 
Canadian dollar first strongly depreciated vis-à-vis the U.S. dollar (until early 2016 ), and the real 
effect ive exchange rate also depreciated by close to 20%, as a consequence of the strong U.S. 
economy, lower commodity prices, and weak domestic demand, particularly gross capital formation 
(Chart 1.3). The Canadian dollar fluctuated in 2017 and 2018, appreciati ng to USD 0.81 in 
September 2017 before depreciating to USD 0.74 in December 2018.  
1.25.   Canadian exporters have benefitted in recent years from a lower value of the Canadian dollar 
compared to major currencies such as the U.S. dollar and the euro. Their share o f the global market 
for exports, however, has continued to erode, as losses of competitiveness were experienced in all 
categories of non -energy exports. Moreover, according to the Bank of Canada, rising trade tensions 
                                                
12 Bank of Canada (2019 ), Monetary Policy Report , January. Viewed at: 
https://www.bankofcanada.ca/wp -content/uploads/2019/01/mpr -2019-01-09.pdf . 
13 The measures of core inflation used by the Bank of Canada are: CPItrim, which excludes CPI 
components whose rates of change in a given month are the most extreme; CPI -median, which corresponds to 
the price change located at the 50th percentile (in terms of basket weight) of th e distribution of price changes; 
and CPI -common, which uses a statistical procedure to track common price changes across categories in the 
CPI basket. Bank of Canada (2018), Monetary Policy Report , October. Viewed at: 
https://www.bankofcanada.ca/wp -content/uploads/2018/10/mpr -2018-10-24.pdf . 
14 The overnight rate is the interest rate at which major financial institutions borrow and lend one -day 
(or "overnight ") funds am ong themselves; the Bank of Canada sets a target level for that rate. This target for 
the overnight rate is often referred to as the Bank 's "key interest rate " or "key policy rate ". Changes in the 
target for the overnight rate influence other interest rates, such as those for consumer loans and mortgages. 
They can also affect the exchange rate of the Canadian dollar . Bank of Canada online information. Viewed at: 
http://www.bankofcanada.ca/core -functions/monetary -policy/key -interest -rate/. 
15 Bank of Canada (2018), Bank of Canada increases overnight rate target to 1¾ per cent . Press 
Release, 24 October 2018. Viewed at: https://www.bankofcanada.ca/wp -content/uploads/2018/10/fad -press -
release -2018-10-24.pdf . 
16 Bank of Canada ( 2019), Bank of Canada maintains overnight rate target at 1 ¾ per cent , Press 
Release, 9 January 2019. Viewed at: https://www.bankofcanada.ca/wp -content/ uploads/2019/01/fad -press -
release -2019-01-09.pdf . 
17 Statistics Canada (2019), Consumer Price Index: Annual review, 2018 , 18 January. Viewed at : 
https://www150.statcan. gc.ca/n1/daily -quotidien/190118/dq190118c -eng.htm . WT/TPR/S/389 • Canada  
 
- 22 - 
 
  and increased trade -policy uncertainty  since 2017 likely dampened investment and export growth 
over that period.18 
Chart 1.3 Canadian dollar exchange rate and Real Effective Exchange Rate (CEER), 
2004 -18 
 
Source:  WTO Secretariat, based on Bank of Canada data. Viewed at: 
https//www.bankofcanada.ca/rates/ex change/ . 
1.2.4   Balance of Payments  
1.26.   After the financial crisis of 2008 -09, the traditional current account surplus of Canada 's 
balance of payments turned into a persistent deficit, which peaked in 2015 and trended down since 
then, led by stronger services exports  in 2016 and stronger goods exports in 2017 (Table 1.3). The 
deficit ranged between 2.4% and 3.5% as a percentage of GDP over the review period.  
Table 1.3 Balance of payments, 2014 -18 
(CAD billion)   
2014  2015  2016  2017  2018  
Current account  -47.8 -70.5 -64.9 -60.1 -58.7 
Goods and services  -19.6 -50.1 -49.6 -50.4 -47.1 
     Goods  4.7 -24.6 -25.5 -24.6 -21.5 
     Services  -24.3 -25.5 -24.0 -25.8 -25.6 
Exports of goods  529.3  524.0  521.5  549.5  585.6  
Exports of services  98.3 103.8  109.7  114.2  120.5  
     Travel  19.6 21.2 24.0 26.4 28.4 
     Transportation  15.2 15.6 16.3 17.0 17.8 
     Other servicesa 63.5 67.1 69.4 70.8 74.3 
Imports of goods  524.7  548.7  547.0  574.1  607.1  
Imports of services  122.6  129.3  133.8  140.0  146.2  
     Travel  38.0 38.5 38.3 41.3 43.1 
     Transportation  25.0 26.4 27.0 28.7 31.5 
     Other servicesa 59.5 64.4 68.4 69.9 71.6 
Primary income  -24.8 -16.3 -11.9 -6.9 -9.2 
Secondary income  -3.4 -4.2 -3.4 -2.9 -2.4 
                                                
18 Bank of Canada (2018 ), Monetary Policy Report , July. Viewed at: https://www.bankofcanada.ca/wp -
content/uploads/2018/07/mpr -2018-07-11.pdf . 
707580859095100105110115120Jan. 2004Jan. 2005Jan. 2006Jan. 2007Jan. 2008Jan. 2009Jan. 2010Jan. 2011Jan. 2012Jan. 2013Jan. 2014Jan. 2015Jan. 2016Jan. 2017Jan.2018 0.00.20.40.60.81.01.2
USD/CAD (rhs) CEER (2005=100)Chart 1.[CAN] 
Canadian dollar exchange rate and Real Canadian Effective Exchange Rate (CEER), 2004 -18
Source:  WTO Scretariat, based on Bank of Canada. Viewed at: https://www.bankofcanada.ca/rates/exchange/ [March 2019].WT/TPR/S/389 • Canada  
 
- 23 - 
 
   
2014  2015  2016  2017  2018  
Balance on capital account  0.4 -0.1 -0.1 -0.1 -0.1 
Net lending / net borrowing, from current and capital accountb -47.4 -70.6 -65.0 -60.2 -58.8 
Financial accountb -46.7 -71.9 -65.6 -52.4 -48.9 
Net acquisition of financial assets  149.5  210.9  197.2  229.3  156.3  
     Direct investment assets  72.4 106.5  90.0 107.0  70.4 
     Canadian portfolio investment  56.4 60.1 12.9 84.7 58.1 
     Official international reserves  5.9 10.9 7.5 1.1 -2.0 
     Other Canadian investment  14.8 33.4 86.8 36.6 29.7 
Net incurrence of liabilities  196.2  282.8  262.8  281.7  205.2  
     Direct investment liabilities  71.0 76.3 45.0 35.6 56.4 
     Foreign portfolio investment  92.8 121.7  170.1  189.2  69.6 
     Other foreign investment  32.4 84.9 47.7 56.9 79.2 
Discrepancy (net errors and omissions)  0.6 -1.3 -0.7 7.8 9.8 
a      Other services include both commercial services and government services.  
b      Net lending is shown as a plus sign, whereas net borrowing is shown as a minus.  
Source:  Statistics Canada, Tables 36 -10-0014-01 and 36 -10-0471-01. 
1.27.   Canada has posted a merchandise trade deficit since 2015, mainly reflecting lower commodity 
prices. This deficit is responsible for most of the deterioration of the current account in Canadian 
dollar terms. It is noteworthy that trade in servi ces, both imports and particularly exports, has 
augmented sizeably. As a result, Canada 's services balance deficit remained stable throughout the 
review period. Lower commodity prices and associated lesser returns and investment levels seem to 
also have ha d an effect on the primary income balance, which showed a declining deficit since 2014, 
with payments growing less rapidly than receipts, related to lower profit remittances.  
1.3  Developments in Trade and Investment  
1.3.1   Merchandise trade  
1.28.   Canada has long relied on trade as a driving force of its economy. One in six jobs are either 
directly or indirectly linked to exports.19 Canada is also heavily reliant on one  major market for 
merchandise goods, and its exports are mainly automotive products, and energy and other mi neral 
products. It is thus vulnerable to fluctuations of world commodity prices, in particular low crude oil 
and natural gas prices, whose fall in recent years have had a significant impact on the Canadian 
economy. Also, after 2014, steady increases in imp orts, along with softer growth in exports, caused 
the merchandise trade surplus to turn into a deficit.  
1.3.1.1   Composition of trade  
1.29.   Canada trades intensively and competitively, not only in primary commodities but also in 
intermediate and in high value -added prod ucts. The major exported products are mineral products 
(mainly energy), but their share decreased from 29% of total exports in 2014 to 24% in 2018 , likely 
because of softer world prices. Vehicles and transport equipment (mainly automotive) come next; 
their share increased from 15% to 16% of total exports during the same period. Agricultural and 
agri-food products accounted about 11% of total exports in 2018 (Chart 1.4 and Table A1.1).  
1.30.   Imports are generally more concentrated than exports, with four main HS categories 
dominating, in particular machinery and mechanical appliances, and vehicles and transport 
equipment, with 25% and 19% respectively, reflecting the intensive intra -industry trade with the 
United States in these sectors. The next groups are chemic al products, whose share increased from 
8% to 9%, and mineral products (mainly energy), whose share declined from 11% to 9% under the 
effect of world price declines (Chart 1.4 and Table A1.2).  
                                                
19 Calculated from Statistics Canada Table: 12 -10-0100-01. WT/TPR/S/389 • Canada  
 
- 24 - 
 
  Chart 1.4 Produc t composition of merchandise trade by HS section, 2014 and 2018  
 
Source:  WTO Secretariat calculations, based on information from the Government of Canada, Statistics 
Canada, and the Canada International Merchandise Trade Database; and Trade Data Online.  
1.3.1.2   Direction of trade  
1.31.   The main developments in Canada 's geographical distribution of merchandise trade were a 
slightly lower reliance on its major trading partner, the United States, which remains, however, by 
a large margin, its main trading partner, and an increase in two -way trade with China (Chart 1.5 
and Tables A1.3 and A1.4). Imports from China that increased the most over the 2014 -18 period 
belong to the groups of telephone sets, monitors and projectors; and headphones, earphones and 
Chart 1.[Can]
Product composition of merchandise trade by HS section and HS chapters, 2014 
and 2018
2014 2018
Live animals and 
products 2.7%
Oil seeds 1.7%
Cereals 1.6%
Prepared 
food, 
beverages 
and tobacco
3.2%
Mineral fuels
and oils 
22.0%
Chemicals 
6.3%
Plastics and 
rubber 
3.8%Wood, cork, 
straw 
3.2%Pulp of wood; 
paper and 
paperboard 3.6%Precious stones
& metals  
4.0%Base metals &
articles 
thereof
7.8%Machinery; 
electrical 
equipment
10.7%Transport 
equipment
15.9%Other
13.6%
Total:   CAD 526.8 billion Total:  CAD 583.0 billion  
Base metals & 
articles thereof
7.0%Mineral fuels
and oils 
10.3%
Chemicals
8.4%
Textiles and 
textile articles 
3.0%Precious stones
& metals 
2.8% Precision 
instruments
2.9%Miscellaneous 
manufactured 
articles
3.2%
Prepared food, 
beverages and 
tobacco
4.2%
Mineral fuels
and oils 
7.9%
Chemicals
8.8%
Plastics & rubber
5.1% 
Base metals & 
articles thereof
6.9%Machinery;
electrical equipment
24.8% Transport
equipment
18.9%Other 
12.1%
Textiles and 
textile articles 
3.1%Precious stones
& metals 
1.9% Precision 
instruments
2.9%Miscellaneous 
manufactured articles
3.3%Precious stones
& metals  
4.6%
Total:   CAD 512.2 billion Total:   CAD 594.7 billion 
WTO Secretariat calculations, based on Government of Canada, Statistics Canada, Canada International 
Merchandise Trade Database; and Trade Data Online.Other 
11.8%Base metals &
articles 
thereof
7.1%Live animals and 
products 2.6%Other
11.9%
Transport
equipment
17.4%Mineral fuels
and oils 
27.0%Machinery; 
electrical 
equipment
9.7%
Machinery;
electrical equipment
24.1% Plastics & 
rubber
4.9% Prepared food, 
beverages and 
tobacco
4.1%Chemicals 
6.0%Transport 
equipment
15.4%Exports including re -exports (f.o.b.) 
Imports (c.i.f.) 
Source:Oil seeds 1.6%
Cereals 1.8%
Prepared food, 
beverages and 
tobacco
2.6%
Wood, cork, 
straw 
2.7%Pulp of wood; 
paper and 
paperboard 3.4%
Plastics and 
rubber 3.6%WT/TPR/S/389 • Canada  
 
- 25 - 
 
  other similar equip ment. Imports from Mexico also increased relative to the total, reflecting 
increased imports of motor vehicles for the transportation of goods, and their parts; the share of 
imports of motor vehicle and parts increased from 30% to 32% of total imports from  Mexico , as the 
share of imports for motor vehicle parts rose from 6.5% to 7.7%.  
Chart 1.5 Direction of merchandise trade, 2014 and 2018  
 
Source:  WTO Secretariat calculations, based on information from the Go vernment, Statistics Canada, and the 
Canada International Merchandise Trade Database; and Trade Data Online.  
1.3.2   Trade in services  
1.32.   The services sector is the largest contributor to Canada 's economy, accounting for 70% of 
GDP during the period 2014 -18. However,  services exports, at CAD 120.5 billion in 2018 (Table 1.4), 
stand at about one -fifth the size of merchandise exports, and the country remains a net services 
importer; its trade deficit in services varied between CAD 24 billion and CAD  26 billion during th e 
Chart 1.[CAN]  Direction of merchandise trade, 2014 and 2018
2014 2018
Exports including re -exports (f.o.b.) 
Asia
10.1%Asia
11.7%China 4.7%
Americas
77.9%EU-28
7.6%Japan 2.2%Other
2.8%
United States
75.1%Other Asia
4.7%
Other 
Americas
2.8%
Total:   CAD 526.8 billion Total:  CAD 583.0 billion
EU-28
11.3%China
11.5%United States
54.4%Other
4.3%
Americas
64.1%
Mexico
5.6%Other Americas
4.1%Asia
23.0%
Americas
60.8%
EU-28
12.4%China
12.7%United States
51.1%
Mexico
6.2%Japan 2.8%
Other 
Americas
3.5%Other Asia   
7.4%Other
3.9%
Total:   CAD 512.2 billion Total:   CAD 594.7 billionUnited States
76.8%Americas
79.6%
Japan 
2.6%EU-28
7.4%China 3.7%
Other Asia   
6.3%Other
3.0%
Asia
20.3%Imports (c.i.f.) 
Source: WTO Secretariat calculations, based on Government of Canada, Statistics Canada, Canada International 
Merchandise Trade Database; and Trade Data Online.Other Americas
2.7%Japan 2.0%Other Asia
4.4%WT/TPR/S/389 • Canada  
 
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  review period, particularly in personal travel services, charges for the use of intellectual property, 
water and air transport services, and insurance services. There was strong growth in imports of 
financial services, from 5.6% to 8.3% of total imports of services.  
1.33.   Canada runs a trade surplus in several services sectors, including land transport services, 
telecommunications services, research and development services, professional and management 
consulting services, and technical, trade -related and other  business services. Over the 2014 -18 
period, exports of personal travel services have expanded strongly, from 17% to 21% of total 
services exports.   
Table 1.4 International transactions in services by sector, 2014 -18 
 CAD billion  Share of total (%)  
2014  2015  2016  2017  2018  2014  2018  
Services exports  98.3 103.8  109.7  114.2  120.5  100 100 
Travel  19.6 21.2 24.0 26.4 28.4 20.0 23.6 
        Business travel  3.0 3.1 3.3 3.6 3.4 3.0 2.8 
        Personal travel  16.6 18.1 20.7 22.8 25.0 16.9 20.7 
Transportation  15.2 15.6 16.3 17.0 17.8 15.4 14.7 
        Water transport  3.3 3.2 3.1 3.5 3.8 3.4 3.1 
        Air transporta 6.6 6.9 7.5 7.9 8.3 6.7 6.9 
        Land and other transportb 5.3 5.4 5.6 5.7 5.7 5.3 4.7 
Commercial services  62.0 65.5 67.9 69.2 72.7 63.1 60.4 
   Maintenance and repair services  1.7 2.1 2.1 2.0 2.4 1.7 2.0 
   Construction services  0.6 0.6 0.3 0.3 0.3 0.6 0.2 
   Insurance services  1.7 1.7 1.8 2.0 2.2 1.7 1.8 
   Financial services  9.1 10.4 10.5 9.8 10.8 9.2 8.9 
Telecommunications, computer, and 
information services  9.2 9.3 10.1 10.6 11.7 9.4 9.7 
   Charges for the use of intellectual 
property  5.3 5.2 5.3 5.6 6.2 5.3 5.1 
   Professional and management 
consulting servicesc 13.2 14.4 16.5 17.2 16.1 13.4 13.4 
   R&D services  6.0 5.8 6.5 6.7 6.7 6.1 5.6 
Technical, trade -related and other 
business servicesd 12.9 12.9 11.4 11.7 13.0 13.2 10.8 
Personal, cultural, and recreational 
servicese 2.4 3.1 3.4 3.3 3.5 2.4 2.9 
Government services  1.5 1.6 1.6 1.6 1.6 1.6 1.3 
Services imports  122.6  129.3  133.8  140.0  146.2  100 100 
Travel  38.0 38.5 38.3 41.3 43.1 31.0 29.5 
        Business travel  4.6 4.7 4.8 5.2 5.4 3.8 3.7 
        Personal travel  33.4 33.9 33.6 36.2 37.7 27.2 25.8 
Transportation  25.0 26.4 27.0 28.7 31.5 20.4 21.5 
        Water transport  11.2 11.8 11.8 12.6 14.5 9.2 9.9 
        Air transporta 10.3 10.8 11.0 11.9 12.6 8.4 8.6 
        Land and other transportb 3.5 3.7 4.2 4.1 4.4 2.9 3.0 
Commercial services  58.4 63.1 67.2 68.7 70.2 47.6 48.1 
   Maintenance and repair services  0.9 1.2 1.1 1.0 1.0 0.7 0.7 
   Construction services  0.6 0.5 0.3 0.3 0.3 0.5 0.2 
   Insurance services  4.7 4.9 4.9 4.9 5.4 3.8 3.7 
   Financial services  6.9 8.9 11.7 12.3 12.2 5.6 8.3 
Telecommunications, computer, and  
information services  6.5 6.6 6.1 6.2 6.3 5.3 4.3 
Charges for the use of intellectual 
property  12.9 13.7 15.2 15.4 15.3 10.6 10.4 
   Professional and management 
consulting servicesc 11.8 12.6 13.9 14.1 14.5 9.6 9.9 
   R&D services  1.6 1.6 1.4 1.3 1.6 1.3 1.1 
Technical, trade -related and other 
business servicesd 10.3 10.8 9.8 10.0 10.3 8.4 7.0 
Personal, cultural, and recreational 
servicese 2.3 2.4 2.7 3.1 3.5 1.9 2.4 
Government services  1.1 1.3 1.2 1.3 1.3 0.9 0.9 
a Including international passenger fares by water.  
b Including postal and courier services.  
c Including management services and advertising and related services.  
d Including architecture, engineering and other technical services, non -financial commissions, and equipment 
rentals.  
e Including audio -visual services and other personal, cultural and recreational services.  
Source:  Statistics Canada, Tab le: 36 -10-0021-01. WT/TPR/S/389 • Canada  
 
- 27 - 
 
  1.34.   Canada 's services trade is less concentrated on the U.S. market than its merchandise trade, 
with the U.S. accounting for about 53-55% of both exports and imports in 2018. The next largest 
trading partner in services is the European Union , with about 18% (Table 1.5). In general, the 
Government has been actively promoting trade in services both in the WTO and through a number 
of free trade agreements (FTAs), foreign investment promotion and protection agreements, and 
double taxation agreeme nts (Section 2).  
Table 1.5 International transactions in services by main partners, 2014 -18 
  Value in CAD billion  Share of total (%)  
  2014  2015  2016  2017  2018  2014  2018  
Services exports  98.3 103.8  109.7  114.2  120.5  100.0  100.0  
United States  54.2 58.3 61.5 63.7 66.6 55.2 55.2 
EU-28 16.9 16.8 18.8 19.1 20.4 17.2 17.0 
United Kingdom  6.2 6.0 6.5 6.3 7.0 6.3 5.8 
France  2.7 2.6 3.1 3.3 3.3 2.7 2.8 
Germany  2.3 2.0 2.3 2.4 2.3 2.3 1.9 
China  2.6 2.7 3.4 3.8 3.7 2.6 3.1 
Hong Kong, China  1.8 1.9 2.2 2.2 2.3 1.8 1.9 
Switzerland  2.1 2.2 1.8 1.8 1.8 2.1 1.5 
Australia  1.8 1.7 1.8 1.9 1.6 1.8 1.3 
Japan  1.5 1.8 1.6 1.5 1.5 1.5 1.2 
Mexico  1.0 1.1 1.3 1.5 1.4 1.0 1.2 
India 0.8 0.8 0.9 1.0 1.0 0.8 0.8 
Singapore  0.8 0.7 0.8 0.9 0.9 0.8 0.7 
Services imports  122.6  129.3  133.8  140.0  146.2  100.0  100.0  
United States  68.6 71.5 73.4 75.8 78.7 56.0 53.8 
EU-28 21.4 22.8 24.4 26.0 27.7 17.5 19.0 
United Kingdom  5.8 7.1 7.3 8.3 7.9 4.8 5.4 
France  3.0 3.0 3.2 3.5 3.7 2.5 2.5 
Germany  2.7 2.6 2.7 2.8 3.0 2.2 2.0 
Hong Kong, China  3.9 4.1 4.2 4.5 4.9 3.2 3.4 
Mexico  2.7 3.1 3.1 3.3 2.9 2.2 2.0 
Japan  2.1 2.2 2.2 2.4 2.7 1.7 1.8 
China  2.3 2.5 2.5 2.7 2.7 1.9 1.8 
Singapore  1.7 1.9 1.9 2.0 2.2 1.4 1.5 
Switzerland  1.3 1.3 1.6 1.6 1.6 1.0 1.1 
India 1.1 1.3 1.4 1.4 1.4 0.9 1.0 
Australia  1.1 1.0 1.1 1.1 1.1 0.9 0.7 
Source:  Statistics Canada, Table: 36 -10-0024-01. 
1.3.3   Trends and patterns in foreign direct investment  
1.35.   Between 2014 and 2017, Canada 's stock of foreign direct investment  (FDI) abroad has 
increased at the rapid pace of 10% per year, almost three times the rate of inward FDI. A large part 
of the increase was destined for the United States, which absorbed 45% of FDI stock abroad in 2017, 
up from 41% in 2014 (Table 1.6). A qu arter of Canada 's FDI abroad is located in Europe. Africa, 
Asia and South and Central America each host only a small share of the total.  
1.36.   During the review period, growth rates of inward FDI to Canada remained modest. Inward 
FDI increased most in new secto rs, such as real estate, rental and leasing, and information and 
cultural industries. The United States increased its share of Canadian inward FDI to 49% of the total, 
whilst other regions generally recorded declines in market share. Europe, which is also a significant 
source of Canadian inward FDI, accounted for 35% of the inward stock i n 2017 (Table  1.6). 
1.37.   The main sector of Canadian direct investment abroad is finance and insurance (a  third of the 
total); followed by mining and oil and gas extraction; and  management of companies and 
enterprises. The sectors with the fastest rate of expansion during the 2014 -17 period were 
transportation and warehousing, and wholesale and retail trade (Table 1.7).  WT/TPR/S/389 • Canada  
 
- 28 - 
 
  Table 1.6 International investment position by partner, 2014 -17 
  Value in CAD billion  Share of total (%)  Growth 
p.a. 
2014 -17 
(%)  
2014  2015  2016  2017  2014  2017  
Direct investment abroad  845.2  1,043.8  1,083.7  1,121.1  100 100 9.9 
North America  510.0  637.8  672.8  685.9  60.3 61.2 10.4 
  United States  346.5  448.3  481.4  504.8  41.0 45.0 13.4 
Europe  215.5  271.4  267.7  288.4  25.5 25.7 10.2 
  EU-28 196.7  255.1  251.4  269.4  23.3 24.0 11.1 
Asia/Oceania  63.9 73.0 79.7 83.6 7.6 7.5 9.4 
South and Central America  52.4 57.1 56.5 55.9 6.2 5.0 2.2 
Africa  3.3 4.4 7.0 7.3 0.4 0.6 29.6 
Direct investment in Canada  744.7  782.9  808.7  824.0  100 100 3.4 
North America  364.3  397.2  412.3  431.2  48.9 52.3 5.8 
  United States  351.8  369.5  388.3  404.5  47.2 49.1 4.8 
Europe  275.9  282.9  296.6  288.9  37.0 35.1 1.5 
  EU-28 227.4  245.6  247.8  243.5  30.5 29.6 2.3 
  Switzerland  42.9 32.3 44.1 40.2 5.8 4.9 -2.2 
Asia/Oceania  81.1 79.0 77.6 82.6 10.9 10.0 0.6 
  Japan  22.2 26.5 29.8 29.6 3.0 3.6 10.1 
South and Central America  20.1 19.9 19.9 19.2 2.7 2.3 -1.6 
Africa  3.2 4.0 2.4 2.2 0.4 0.3 -12.2 
Source:  Statistics Canada, Data Table 36 -10-0008-01. 
Table 1.7 International investment position by sector, 2014 -17 
   Value in CAD billion  Share of total (%)  Growth 
p.a. 
2014 -17 
(%) 2014  2015  2016  2017  2014  2017  
Canadian direct investment 
abroad  845.2  1,043.8  1,083.7  1,121.1  100 100 9.9 
Finance and insurance  308.3  379.5  384.2  395.8  36.5 35.3 8.7 
Mining and oil and gas extraction, of 
which:  173.7  188.1  185.3  175.7  20.6 15.7 0.4 
Oil and gas extraction  63.2 64.9 63.7 58.8 7.5 5.2 -2.4 
Mining (except oil and gas)  78.7 82.4 86.0 82.7 9.3 7.4 1.6 
Support activities  31.8 40.8 35.6 34.2 3.8 3.1 2.4 
Management of companies  106.3  138.3  134.0  140.9  12.6 12.6 9.8 
Manufacturing, of which:  69.1 81.7 89.0 85.4 8.2 7.6 7.3 
Transportation equipment 
manufacturing  17.0 16.2 21.6 21.9 2.0 2.0 8.8 
Food manufacturing  8.8 14.3 12.6 12.8 1.0 1.1 13.2 
Chemical manufacturing  10.0 12.8 13.4 9.5 1.2 0.8 -1.7 
Transportation and warehousing  26.8 34.0 49.5 71.1 3.2 6.3 38.4 
Real estate and rental and leasing  42.8 62.4 63.3 63.2 5.1 5.6 13.9 
Information and cultural industries  35.3 40.9 45.6 49.0 4.2 4.4 11.5 
Utilities  21.0 27.6 31.4 32.1 2.5 2.9 15.3 
Professional and technical services  18.7 28.5 26.8 31.5 2.2 2.8 18.8 
Wholesale trade  11.6 20.5 27.0 25.5 1.4 2.3 30.0 
Retail trade  6.6 8.9 9.5 13.2 0.8 1.2 26.3 
FDI in Canada  744.7  782.9  808.7  824.0  100 100 3.4 
Manufacturing, of which:  198.3  181.1  176.7  176.2  26.6 21.4 -3.9 
Petroleum and coal products 
manufacturing  55.0 52.1 51.5 43.4 7.4 5.3 -7.6 
Chemical manufacturing  29.4 28.3 33.6 36.6 4.0 4.4 7.5 
Food manufacturing  23.4 22.3 22.1 25.4 3.1 3.1 2.7 
Management of companies  123.5  158.8  167.4  170.9  16.6 20.7 11.4 
Mining and oil and gas extraction, of 
which:  174.1  168.8  175.1  162.2  23.4 19.7 -2.3 
Oil and gas extraction  122.5  133.5  136.5  119.9  16.5 14.5 -0.7 
Mining (except oil and gas)  36.9 21.1 24.4 28.2 5.0 3.4 -8.5 
Support activities  14.7 14.3 14.3 14.1 2.0 1.7 -1.4 
Finance and insurance  99.3 115.9  126.8  137.0  13.3 16.6 11.3 
Wholesale trade  55.0 61.9 68.7 74.7 7.4 9.1 10.7 
Retail trade  38.5 31.1 34.3 35.8 5.2 4.3 -2.4 
Professional and technical services  11.6 24.2 19.3 17.4 1.6 2.1 14.6 
Real estate and rental and leasing  7.2 10.2 11.1 13.4 1.0 1.6 23.2 
Transportation and warehousing  7.8 8.8 7.2 10.4 1.0 1.3 10.2 
Information and cultural industries  5.5 5.8 7.0 8.9 0.7 1.1 17.2 
Source:  Statistics Canada, Table 36 -10-0009-01. 
 WT/TPR/S/389 • Canada  
 
- 29 - 
 
  2  TRADE AND INVESTMENT  REGIMES   
2.1  General Framework  
2.1.  Canada is the second largest country in the world, with an area of 9.98 million km2, but is 
sparsely populated, with a population of 37 million people, or 3.7 people per km2, as at 2018.1 It 
possesses an abundance of natural resources, including forests, minerals and metals, and energy 
reserves which are important to trade as they account for 47% of merchandise exports.2 Canada 
also posses ses vast water reserves, which account for about 9% of its total area, including wet lands, 
freshwater, rivers, and glaciers. Its territory is divided into ten provinces and three territories, plus 
its territorial sea.  
2.2.  Canada is a constitutional monarchy a nd parliamentary democracy, with the Queen as Head of 
State, the Governor General as the Queen 's representative and formal head of the Government, and 
the Prime Minister as the effective head of the Government.3 The Constitution is comprised of the 
Constit ution Act, 1867, the Canada Act, 1982, the Constitution Act, 1982, and other acts, orders 
and amendments referred to in the schedule to the Constitution  Act, 1982. The Constitution 
distributes legislative authority between the Parliament of Canada and the Legislatures of the 
provinces. There are three levels of government, the federal, the provincial or territorial, and the 
municipal (the territorial and municipal levels exercising authority delegated by the federal and 
provincial governments, respectively) , each with their own or shared responsibilities (Table 2.1).4 
Trade and international treaties are under federal jurisdiction, although some matters covered by 
international trade agreements, such as agriculture and fishing, have shared jurisdiction betwe en 
the Federal Government and the provinces/territories. Canada has a number of Indigenous 
populations that are referred to as First Nations, Métis and Inuit communities and have their own 
governance bodies. The judicial system has a largely unitary struct ure, with federal and 
provincial/territorial courts; the courts have more than one level, i.e. lower courts, superior courts 
and courts of appeal.5 The Supreme Court of Canada is the highest, and is the final court of appeal; 
it hears cases from both the F ederal Court of Appeal, the courts of appeal of the provinces and 
territories, and the Court Martial Appeal Court.6 
Table 2.1 Government jurisdiction  
Federal jurisdiction  Provincial jurisdiction  Shared jurisdi ction between 
federal and provincial  Municipal  
International trade and 
international relations  Public lands and forests  Agriculture  Libraries  
Plenary power of 
taxation (both direct 
and indirect)  Health system  Companies and economic 
development  Parks  
Postal service  Municipal institutions  Prisons and justice  Community water 
systems  
Defence  Property and civil rights  Fishing  Local police  
Fiscal and monetary 
policy  Education  Public works (health and safety)  Roads and 
parking  
Indigenous affairs  Business licences  Transportation and 
communication   
Criminal law  Resource ownership and 
management  Immigration   
Residual powers  Direct taxes  Environmental protection   
Foreign affairs   Energy, mining, and forest 
management   
                                                
1 Statistics Canada online information. Viewed at: https://www150.statcan.gc.ca/n1/daily -
quotidien/180927/dq180927c -eng.htm .  
2 Natural Resources Canada online information. Viewed at: 
https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/files/pdf/10_key_facts_NatResources_2018_e.pdf .   
3 Government of Canada online information. Viewed at: https://www.canada.ca/en/immigration -
refugees -citizenship/services/new -immigrants/learn -about -canada/governement.html .  
4 See also previous reports WT/TPR/S/246/Rev.1 and WT/TPR/S/314/Rev.1.  
5 Department of Justic e online information. Viewed at: https://www.justice.gc.ca/eng/csj -
sjc/just/07.html .  
6 Supreme Court of Canada online information. Viewed at: https://www.scc -csc.ca/court -cour/role -
eng.aspx .  WT/TPR/S/389 • Canada  
 
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  Federal jurisdiction  Provincial jurisdiction  Shared jurisdi ction between 
federal and provincial  Municipal  
Fisheries   Financial services   
Shipping, railways, and 
telephones   Pipelines   
Science and technology     
Note:  This list is non -exhaustive.  
Source:  The Constitution of Canada; information provided by the authorities; and Parliament of Canada 
online information. Viewed at: 
https://lop.parl.ca/About/Parliament/Education/ourcountryourparliament/html_booklet/division -
powers -e.html .  
2.3.  One of the main developments during  the period under review was the replacement of the 
long-standing Agreement on Internal Trade (AIT) with a new agreement, the Canadian Free Trade 
Agreement (CFTA), as Canada 's main internal trade agreement, on 1 July 2017. Canada 's internal 
trade had been governed by the AIT since 1995, and while it had undergone regular amendment, 
its replacement by the CFTA brought about more widespread and in -depth changes. The main 
objective of the CFTA is to "reduce and eliminate, to the extent possible, barriers to th e free 
movement of persons, goods, services, and investments within Canada and to establish an open, 
efficient, and stable domestic market ".7 The main benefits are: the creation of more jobs and 
business opportunities; an improvement in the alignment of ru les and regulations; and an increase 
in competitiveness, support of innovation, and expansion of business opportunities for Canadian 
suppliers to government.8 
2.4.  Compared to its predecessor, the CFTA has wider coverage, incorporating almost all economic 
activities, i.e. it covers the energy sector and most of the services sectors.9 It furthermore deepens 
the coverage on government procurement, as all provincial and territorial governments have made 
more meaningful commitments. In the area of domestic regulatio n, it has provisions on reducing 
regulatory differences, and establishes a mechanism for regulatory cooperation. The CFTA also 
strengthens dispute settlement procedures, increases alignment with international obligations, and 
includes provisions on environ mental protection and labour mobility.10 While considerable progress 
has been made in reducing internal barriers through the CFTA, a number of policies remain in place 
that could impede inter -provincial trade, such as those for alcoholic beverages and in th e transport 
sector. A number of committees and working groups were established under the CFTA to address 
these remaining barriers, including the Regulatory Reconciliation and Cooperation Table, a 
committee of senior -level representatives responsible for ov erseeing the CFTA 's regulatory 
reconciliation and cooperation mechanisms, and the Alcoholic Beverages Working Group.  
2.5.  While the CFTA is the main agreement covering internal trade, there are a number of 
agreements in place between certain provinces or territ ories.11 Some of these cover subjects similar 
to those in the CFTA or international trade agreements, such as public procurement, standards, etc., 
while others concern subjects such as development and the economy.  
2.2  Trade Policy Formulation and Objectives  
2.6.  For Canada, international trade is seen as essential to increasing the country 's economic 
competitiveness, in order to create well -paying jobs and drive economic growth. Canada 's trade 
policy since 2015 is based on two core priorities, elaborated as part of t he annual plan of the 
department of Global Affairs Canada12: 1) diversifying international trade and foreign direct 
investment, with a view to increasing economic opportunity and 2) the pursuit of an inclusive 
approach to trade focused on the inclusion of t ransparency, labour rights, the environment, small 
                                                
7 CFTA online information. Viewed at: https://www.cfta -alec.ca/wp -content/uploads/2017/06/CFTA -
Consolidated -Text-Final-Print-Text-English.pdf .  
8 CFTA online information. Viewed at: https://www.cfta -alec.ca/wp -content/uploads/2017/06/CFTA -top-
five-benefits -backgrounder.pdf .  
9 CFTA online information. Viewed at: https://www.cfta -alec.ca/wp -content/uploads/2017/06/CFTA -
general -backgrounder.pdf .  
10 CFTA online information. Viewed at: https://www.cfta -alec.ca/wp -content/uploads/2017/06/ CFTA-
general -backgrounder.pdf .  
11 CFTA online information. Viewed at: https://www.cfta -alec.ca/trade -enhancement -agreements/ .  
12 Government of Canada online information. Viewed at: https://www.international.gc.ca/gac -
amc/publications/plans/dp -pm/dp -pm_1819.aspx?lang=eng#2 .  WT/TPR/S/389 • Canada  
 
- 31 - 
 
  and medium -sized enterprises (SMEs), gender, and Indigenous peoples in trade and investment 
agreements, which aim to ensure that the benefits of trade are shared more broadly.  
2.7.  Over the course of the revie w period, the Government set out a number of specific trade -related 
objectives to advance its trade priorities, which are set out in the mandate letters of relevant federal 
ministers, including the Minister of International Trade Diversification, the Minis ter of Foreign Affairs 
and the Minister of Agriculture.13 These include: leading efforts to deepen trade and commerce 
between Canada and the United States; working to enhance North America 's global competitiveness; 
positioning Canada as a top destination fo r global investment; engaging with emerging markets, 
especially in the Asia -Pacific region; promoting Canadian agricultural interests; improving support 
to companies looking to export, particularly SMEs; and ensuring alignment between Canada 's export 
and innovation strategies. These mandates are in various stages of implementation.   
2.8.  Diversifying trade is essential to Canada 's continued economic prosperity and competitiveness. 
Canada recently unveiled the new Export Diversification Strategy, with the goal of  increasing 
overseas exports by 50% by 2025. Building on trade diversification initiatives already underway, the 
Strategy aims to assist Canadian businesses – of diverse sizes and sectors – to maximize their 
growth by capitalizing on more economic opportun ities abroad, particularly in markets covered by 
FTAs, such as the CETA and the CPTPP. The Strategy will support export growth and diversification 
by investing in the transportation infrastructure that links Canada to global markets; providing 
Canadian bus inesses with resources to develop and implement effective export strategies; and 
enhancing trade services for Canadian exporters.  
2.9.  Canada is pursuing an inclusive approach to trade that seeks to ensure that more Canadians 
can take advantage of the opportun ities that flow from trade and investment. This approach is 
informed by ongoing dialogue with a broad range of Canadians, to align trade policy priorities with 
the interests of all Canadians. In its trade agreements, Canada is building on past achievements  by 
improving labour and environment protections, and pursuing new chapters, focused on cooperation 
and information -sharing, designed to improve the capacity and conditions of underrepresented 
groups, in particular women, owners of SMEs and Indigenous peop les, to access and benefit from 
the opportunities created by trade agreements.  
2.10.   The promotion of gender equality is a Government of Canada -wide mandate. Gender equality 
is emphasized through Canada 's feminist foreign policy and is an important part of its i nclusive 
approach to trade. Canada acknowledges that trade can affect men and women differently as 
workers, business owners, and as members of society. Canada is working to reduce barriers to the 
participation of women in international trade, including by conducting wide -reaching analysis to 
better understand gender -related effects of trade. This includes expanding its impact assessment 
(IA) process with respect to the negotiation of an FTA with Mercosur, to include, for the first time, 
labour and gender, w hich will be used to inform Canada 's position in these negotiations.  This will 
include conducting a Gender Based Analysis Plus (GBA+) of the Agreement in order to analyse the 
potential effects of the FTA on gender and diversity within Canada. Canada has p ublicly committed 
to publish a summary of the GBA+ initial report online for comment. Canada is also expanding the 
coverage of gender -related issues in trade agreements, through measures such as the introduction 
of Trade and Gender chapters into its modern ized FTAs with Chile and Israel, issuing a Trade and 
Gender Joint Recommendation under its FTA with the EU, and pursuing chapter -specific provisions 
in FTAs, like those on the elimination of employment discrimination in its Labour Cooperation 
Agreements an d Labour chapters of its FTAs.  
2.11.   Trade and Gender chapters concluded to date focussed on cooperation activities and the 
sharing of best practices, in order to increase the participation of women in international trade, in 
addition to provisions relating to t he sharing of methods and procedures for the collection of 
sex-disaggregated data, the use of indicators, and the analysis of gender -focused statistics related 
to trade. Lastly, Canada has been very active in promoting its work on addressing gender -related  
issues internationally, including at the WTO. For example, it helped draft and promote the Joint 
Declaration on Trade and Women 's Economic Empowerment at the 11th WTO Ministerial Conference 
in December 2017 and hosted the first seminar under this Declaration in March 2018 on Gender -
Based Analysis and Trade.  
                                                
13 Government of Canada online information. Viewed at:  https://www.international.gc.ca/gac -
amc/priorities -priorites.aspx?lang=eng . WT/TPR/S/389 • Canada  
 
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  2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.12.   Canada continues its active engagement with the WTO on a number of leve ls. During the 
review period, Canada was active in the regular work of the WTO committees, negotiations, dispute 
settlement, monitoring, and plurilateral initiatives. It also played a leadership role by chairing WTO 
bodies and promoting initiatives such as  trade and gender in the WTO, as well as through its work 
on WTO reform. Canada has played a leading role in the efforts to improve and strengthen the WTO, 
with a focus on the notifications and committee work, safeguarding the dispute settlement system, 
and updating the WTO agreements to reflect 21st century realities.14 
2.13.   Canada passed legislation to implement the WTO Trade Facilitation Agreement (TFA) on 
12 December 2016 and notified the WTO of its acceptance on 16 December 2016.15 Also, Canada 
completed the procedures and implemented its commitments under the ITA Expansion during the 
period under review.16 
2.14.   In terms of negotiations, Canada along with a number of other countries, submitted a 
communication to the Negotiating Group on Market Access regarding facil itating SME trade.17 
Dispute settlement has been another area of its engagement with the WTO. During the review 
period, Canada was increasingly active with disputes, especially compared to the activity during the 
previous four -year period. It was involved a s a complainant in 6 cases, as a respondent in 6 cases, 
and as a third party in 39 cases (Table A2.1).  
2.15.   Canada has been exemplary in terms of meeting its notification requirements during the 
period (Table A2.2). Notifications were made regularly across WTO disciplines.  
2.3.2   Regional and preferential agreements  
2.16.   Canada 's imports under reciprocal and unilateral preferential regimes remain significant, with 
18.6% of 2017 imports being imported under these regimes, although it has fallen since the last 
Review. MFN du ty-free imports remain the largest category, with about 65% of total imports; MFN 
dutiable imports are at 16%. Compared to the previous Review, Canada saw a number of shifts, as 
trade under reciprocal agreements fell from 24% of the total to 18%, and trade  under unilateral 
preferences declined from 3.8% to 0.6% of total trade. The fall in unilateral preferential imports can 
largely be attributed to the January 2015 graduation of 72 higher -income or trade -competitive  
countries from the General Preferential T ariff (GPT) scheme, and the decline in reciprocal trade can 
be attributed to the liberalization of certain MFN tariffs18, leading to higher MFN duty -free imports.  
2.3.2.1   Reciprocal trade agreements  
2.17.   Canada continued to pursue reciprocal FTAs during the period of r eview, as part of its trade 
diversification agenda. As at 1 January 2019, Canada was a party to 14 FTAs. Over the course of 
the review period, its most significant reciprocal FTA, according to trade volume, continued to be 
NAFTA, which accounted for about 94% of FTA imports in 2017, reflecting the ongoing importance 
of the United States as Canada 's leading trading partner (Table 2.2). Since 2015, three new 
Agreements have been provisionally applied or entered into force: the Canada -European Union 
Comprehens ive Economic and Trade Agreement (CETA), the Canada -Ukraine Free Trade Agreement 
(CUFTA), and the Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP).19 With the addition of these, in particular the CPTPP, Canada will have a number  of trading 
partners where more than one reciprocal or unilateral agreement will apply. According to the 
                                                
14 WTO documents JOB/GC/201, 24 September 2018 and JOB/GC/211, 14 December 2018.  
15 TFA Facility online information. Viewed at: http://www.tfafacility.org/ratifications .  
16 WTO document WT/Let/1205, 25 October 2016.  
17 WTO document TN/MA/W/144/Rev.3, 27 October 2017.  
18 See Section 3 .1.3, in particular final stage implementation of certain machinery and equipment, a 
broad range of agri -food processing inputs, and ITA products.  
19 The CETA has been provisionally applied since 21 September 2017, the CUFTA entered into force on 
1 August 2 017, and the CPTPP entered into force on 30 December 2018 for Canada and five other CPTPP 
members.  WT/TPR/S/389 • Canada  
 
- 33 - 
 
  authorities, these will continue to be applied simultaneously, with potentially overlapping provisions, 
and traders may choose to apply the more advant ageous regime.  
2.18.   The CETA has been described as a progressive and comprehensive trade agreement. It quickly 
became Canada 's third largest bilateral agreement (as of 2017) in terms of trade volumes 
(Table  2.2) and covers about 98% of EU tariff lines on goods,  meaning that Canada 's exports to the 
European Union will face very few tariffs upon full implementation. It has chapters covering trade 
remedies, SPS, TBT, trade facilitation, subsidies, investment, services, competition policy, 
government procurement, IP , and a number of other disciplines. According to the authorities, Canada 
has already seen an improvement since the entry into force of the Agreement, as two -way trade in 
goods and services increased.20  
Table 2.2 Overview of FTA trade, 2017  
(CAD million)  
FTA partner  Entry into force  Imports  
total  
of which : FTA Total 
exports  Trade 
balance  MFN duty -free 
Chile 5 July 1997  2,035  1,814  175 885 -1,150  
Colombia  15 August 2011  985 828 128 746 -240 
Costa Rica  1 November 2002  516 459 4 159 -357 
CPTPPa 30 December 2018  56,723  33,528  n.a. 24,534  -32,189  
EFTA 1 July 2009  6,912  5,978  708 4,121  -2,791  
EU-28 21 September 2017b 67,238  49,385  1,128  41,658  -25,580  
Honduras  1 October 2014  383 210 95 43 -340 
Israel  1 January 1997  1,287  1,011  217 451 -837 
Jordan  1 October 2012  101 6 81 74 -28 
NAFTA  1 January 1994  324,140  199,681  95,437  422,197  98,057  
Republic of Korea  1 January 2015  8,705  4,307  3,374  5,302  -3,403  
Panama  1 April 2013  11 10 0 151 140 
Peru 1 August 2009 1,799  1,735  52 711 -1,088  
Ukraine  1 August 2017  112 86 4 268 156 
n.a. Not applicable, as no FTA trade occurred.  
a CPTPP includes Australia, Japan, New Zealand, Mexico, Singapore and Viet Nam. Thus, there is overlap with 
other FTA partners.  
b Provisionally applied as at 21 September 2017.  
Note:  "MFN duty -free" covers all trade entering at MFN duty -free rates; calculations were based on imports 
entering Canada by different tariff regimes. In dataset provided by the authorities, any imports whic h were 
coded as preferential treatment but corresponded to MFN duty -free treatment were treated as "MFN 
duty-free treatment ". 
Source:  WTO Secretariat calculations, based on information from the Government, Statistics Canada, and Canada 
International Mercha ndise Trade Database; and the WTO IDB.  
2.19.   The CPTPP entered into force for Canada, Australia, Japan, Mexico, New Zealand, and 
Singapore on 30 December 2018, and for Viet Nam on 14 January 2019.21 For the remaining 
signatories (Brunei Darussalam, Chile, Malaysi a, Peru), the CPTPP will enter into force 60 days after 
they have notified of the completion of their ratification procedures. The CPTPP has been described 
as a comprehensive and modern agreement, covering virtually all aspects of trade and investment, 
and includes binding chapter commitments in new areas such as the environment and labour. 
According to the authorities, the CPTPP preserves the high level of ambition negotiated in the 
Trans -Pacific Partnership (TPP), both with respect to rules and market acc ess, and incorporates the 
majority of those provisions by reference, with the exception of 22 provisions that are suspended 
from application upon entry into force of the CPTPP and can only be lifted by consensus among the 
Parties. The CPTPP also includes a  number of bilateral binding or non -binding side letters between 
Parties that have allowed Canada to individualize the Agreement's outcomes where required to 
address specific needs. For example, the letters clarify the scope of the Agreement (e.g. culture) , 
address product and service specific issues (e.g. rules of origin, tariff phase out), or establish 
bilateral specific rules outcomes (e.g. SPS, GIs). Canada's implementing legislation for the CPTPP 
                                                
20 Government of Canada online information. Viewed at: https://www.international.gc.ca/gac -
amc/campaign -campagne/ceta -aecg/year_one -premiere_annee.aspx?lang=eng .  
21 Information provided by the authorities.  WT/TPR/S/389 • Canada  
 
- 34 - 
 
  was contained in the Comprehensive and Progressive Agree ment for Trans -Pacific Partnership 
Implementation Act, SC 2018, c.23 and has also been notified to the WTO.22 
2.20.   During the review period, Canada was also active in updating and expanding existing FTAs in 
order to modernize certain FTA provisions. The moderniz ed Canada -Chile FTA entered into force on 
5 February 2019, while implementing legislation for the modernized Canada -Israel FTA was 
introduced in Parliament.23 According to Canada, these amended Agreements have now been 
updated to include a number of inclusi ve trade elements, such as provisions on labour, the 
environment, trade and gender, SMEs, etc.24 Other existing provisions on issues such as SPS, TBT, 
government procurement, and investment have also been improved in the FTA with Chile.25 The 
modernized Cana da-Chile FTA represents a first for Canada, with the inclusion of a dedicated chapter 
on Trade and Gender, with a similar chapter also since added to the Canada -Israel FTA.   
2.21.   On 30 November 2018, Canada, the United States and Mexico signed an agreement, kn own 
as the Canada -United States -Mexico Agreement (CUSMA) for Canada, which will replace the NAFTA 
when it enters into force.26 Canada had a number of negotiating objectives for CUSMA, including: 
preserving important NAFTA provisions and market access into t he United States and Mexico; 
modernizing and improving the agreement; and reinforcing the security and stability of market 
access into the United States and Mexico for Canadian businesses. As at February 2019, CUSMA 
parties were working to advance their do mestic procedures towards the ratification and 
implementation of the Agreement.  
2.22.   During the review period, Canada also engaged in new negotiations toward comprehensive 
FTAs. In June 2017, the Pacific Alliance (Chile, Colombia, Mexico, and Peru) invited Cana da, along 
with Australia, New Zealand and Singapore, to become Associated States, which requires the Pacific 
Alliance to negotiate separate FTAs with each of the four candidate Associated States. Canada was 
also negotiating a comprehensive FTA with Mercosu r, for which negotiations were launched in 
March  2018. Canada has also held FTA negotiations with India and initiated exploratory discussions 
for possible FTAs with ASEAN and China during the review period.  
2.3.2.2   Unilateral preferential regime  
2.23.   Canada continues t o have three main regimes providing unilateral preferences to developing 
and least -developed countries: the General Preferential Tariff (GPT), the Least Developed Country 
Tariff (LDCT), and the Commonwealth Caribbean Country Tariff (CCCT). The three regime s are 
implemented through the Customs Tariff. There were no significant changes to the programmes 
since the last Review, except for some rules of origin amendments to the LDCT (Section 3.1.2). As 
at January 2019, 119 countries or territories were benefitti ng from one or more regime (Table A2.3).  
2.24.   Canada 's GPT is its long -standing programme to help promote industrialization of developing 
countries through offering autonomous and non -reciprocal tariff preferences, modelled on UNCTAD 's 
Generalized System of Pre ferences (GSP). It has been implemented through approximately 
ten-year cycles, through the Customs Tariff, with the last renewal commencing in July 2014. On 
1 January  2015, Canada modernized the GPT by graduating 72 higher -income or trade -competitive 
count ries or territories.27 The GPT provides duty -free treatment to more than 80% of tariff lines, 
with exceptions mainly in the agricultural, apparel and footwear sectors.   
                                                
22 Canada's implementing legislation for the CPTPP is contained in the Comprehensive an d Progressive 
Agreement for Trans -Pacific Partnership Implementation Act, SC 2018, c.23, received Royal Assent on 
25 October 2018 and came into force on 30 Dec. 2018. WTO documents WT/REG395/N/1 and S/C/N/920.  
23 Status as at February 2019.  
24 Global Affairs Canada online information. Viewed at: https://www.canada.ca/en/global -
affairs/news/2018/05/m inister -champagne -welcomes -modernized -canada -israel -free-trade-agreement.html .  
25 Global Affairs Canada online information. Viewed at: http://international.gc.ca/trade -
commerce/trade -agreements -accords -commerciaux/agr -acc/chile -chili/fta -ale/background -
contexte.aspx?lang=eng .  
26 Government of Canada online information. Viewed at: https://www.international.gc.ca/trade -
commerce/trade -agreements -accords -commerciaux/agr -acc/cusma -aceum/index.aspx?lang=eng . 
27 Algeria ; American Samoa ; Antigua and Barbuda ; Netherland Antilles ; Argentina ; Azerbaijan ; 
Bahamas ; Bahrain ; Barbados ; Bermuda ; Bosnia and Herzegovina ; Botswana ; Brazil ; Brunei ; Cayman Islands ; 
Chile; China ; Colombia ; Costa Rica ; Croatia ; Cuba; Dominica ; Dominican Republic ; Ecuador ; Equatorial 
Guinea ; French Polynesia ; Gabon ; Gibraltar ; Grenada ; Guam ; Hong Kong , China;  India; Indonesia ; Iran; WT/TPR/S/389 • Canada  
 
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  2.25.   The LDCT has been in operation since 1983, to provide preferential access to LDCs to aid and 
encourage their economic growth. It was expanded in 2003 to cover over 98% of tariff lines – all 
goods from LDCs except certain dairy, poultry, and egg products. D evelopments since the last 
Review include new rules of origin amendments, allowing more apparel products to qualify from 
LDCs (Section 3.1.2).28 
2.26.   Canada 's CCCT scheme emanates from the Caribbean -Canada Trade Agreement (CARIBCAN), 
an economic and trade assist ance programme dating from 1986 designed to benefit Caribbean 
countries. It provides duty -free access to most products except for textiles, apparel, and certain 
agricultural goods. There were no major changes to the CCCT scheme during the review period. At  
present, Canada has a WTO waiver in place for the implementation of these tariff preferences.29 
2.3.3   Other agreements and arrangements  
2.27.   Canada also maintains certain other preferential tariffs, as implemented through its Customs 
Tariff, for certain products from  Australia and New Zealand. These preferences emanate from the 
Canada Australia Trade Agreement (CANATA) that was established in 1960 and further amended in 
1973; and the Trade Agreement Between Canada and New Zealand of 1932 , respectively.30 As at 
2018, th ere were 333 preferential tariff lines31 for Australia and 338 for New Zealand in Canada 's 
tariff schedule.32 These Agreements have not been notified to the WTO.  
2.28.   Canada has been one of the parties involved in the Trade in Services Agreement (TISA) 
negotiati ons since they were launched in 2013. The negotiations, which are being conducted among 
23 WTO Members, are to further liberalize trade in services, both through improved market access 
and by enhancing specific disciplines.33 The latest round of negotiation s took place in December 
2016.34  
2.29.   Trade and Economic Cooperation Arrangements (TECAs) and Trade and Investment 
Cooperation Arrangements (TICAs) are two other types of arrangements Canada has entered into 
that have certain trade and/or investment provisions.  At present, there are seven TECAs or TICAs 
in force.35  
2.4  Investment Regime  
2.30.   Foreign direct investment, like trade, continues to be an important part of the economy, with 
direct investment abroad amounting to over CAD 1 trillion in 2017, equivalent to slightl y over 50% 
of Canada 's GDP. Furthermore, Canada has the highest FDI -to-GDP ratio among the G7 countries.36 
Since the last Review, Canada continued to attract FDI from abroad and increased outward Canadian 
direct investment. However, there was stronger growt h in outward investment compared to inward 
investment, leading to a gap of almost CAD 300 billion in 2017 between outward and inward FDI 
stock. Canada stepped up efforts to improve its FDI attractiveness during the period by creating a 
one-stop shop for fo reign investment through the creation of Invest in Canada (Section 2.4.4), and 
                                                
Israel ; Jamaica ; Jordan ; Kazakhstan ; Kuwait ; Lebanon ; Macao, China; North Macedonia;  Malaysia ; Maldives ; 
Mariana I slands ; Mauritius ; Mexico ; Namibia ; New Caledonia and Dependencies ; Oman ; Palau ; Panama ; Peru; 
Qatar ; Russia n Federation;  Saint Kitts and Nevis ; Saint Lucia ; Saint Vincent and the Grenadines ; Seychelles ; 
Singapore ; South Africa ; Republic of  Korea ; Suriname ; Thailand ; Trinidad and Tobago ; Tunisia ; Turkey ; Turks 
and Caicos Islands ; United Arab Emirates ; Uruguay ; Bolivarian Republic of Venezuela ; and the Virgin Islands.  
28 Regulation SOR/2017 -127 and Memorandum D11 -4-4. 
29 WTO document WT/L/958 , 30 July 2015.  
30 Global Affairs Canada online information. Viewed at: https://www.treaty -
accord.gc.ca/details.aspx?id=100545 .   
31 Both duty -free and reduced rates.  
32 Canada's Customs Tariff 2019. Figure s exclude in -quota tariff lines.  
33 Global Affairs Canada online information. Viewed at: http://international.gc.ca/trade -agreements -
accords -commerciaux/topics -domaines/services/tisa -acs.aspx?lang=eng#a .  
34 Government of Canada online information. Viewed at: www.international.gc.ca/trade -
commerce/trade -agreements -accords -commerciaux/agr -acc/index.aspx?lang=eng .  
35 TECAs with Australia, I celand, Norway, and Switzerland; and TICAs with the Andean Community, 
South Africa, and MERCOSUR. Global Affairs Canada online information. Viewed at: 
http://www.international.gc.ca/trade -commerce/trade -agreements -accords -commerciaux/agr -
acc/other_agreements -autres_accords.aspx?lang=eng .  
36 Global Affairs Canada online information. Viewed at: http://www.international.gc.ca/economist -
economiste/invest/invest -Canada.aspx?lang=eng .  WT/TPR/S/389 • Canada  
 
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  by eliminating the formal approval procedures for many potential investments by raising the 
investment review threshold levels. However, there were no recent changes to remove l ong-standing 
foreign investment restrictions, except for the raising of the allowed foreign -ownership percentage 
in the airline sector (Section 2.4.3).  
2.4.1   Framework  
2.31.   The investment framework consists of the Investment Canada Act (ICA), 1985, which is the 
main law governing foreign investment in Canada; bilateral investment treaties, known as Foreign 
Investment Promotion and Protection Agreements (FIPAs); and a number of FTAs that have 
provisions or dedicated chapters on investment.  
2.32.   The ICA continues to be the m ain investment law for reviewing foreign investment into 
Canada; it has been amended several times, including recently to liberalize the net benefit review 
threshold and add national security review transparency.37 The stated purpose of the law is "…to 
provide for the review of significant investments in Canada by non -Canadians in a manner that 
encourages investment, economic growth and employment opportunities in Canada and to provide 
for the review of investments in Canada by non -Canadians that could be in jurious to national 
security ". Basically, it requires that all non -Canadians38 that wish to establish or acquire control of 
a Canadian business either file a notification or an application for review to the relevant authorities, 
unless an exemption applies.  The ISED has the main responsibility for the law, except for the net 
benefit review of foreign investments in the cultural sector, for which the Department of Canadian 
Heritage has oversight. The Regulations Respecting Investment in Canada and the Nationa l Security 
Review of Investments Regulations prescribe time -periods and other particulars on the review 
process. Guidelines and interpretive notes were also issued on process matters, to provide guidance 
to investors.39 
2.33.   The ICA requires that certain investm ents by non -Canadians be notified or reviewed for their 
likely net economic benefit to Canada. The "net benefit " assessment factors are set out in the law. 
The requirement for review is based on a threshold, which is dependent on the type or origin of the 
investment and is updated every year (Box 2.1). Only acquisitions of control of Canadian businesses 
that exceed the prescribed dollar -value threshold are subject to the net benefit review requirement 
and must be approved by the minister responsible before implementation. For acquisitions of 
Canadian businesses that do not surpass the relevant monetary threshold, only a notification is 
required. In addition, the ICA contains rules and procedures to protect national security, and 
potential investments of any size are subject to review for their potential injury to national security. 
The national security review of investments can result in prohibition of the investment, divestment 
of control, or authorization of the investment subject to conditions to protect national security.  
2.34.   There have been five amendments to the ICA since the last Review entered into force, two in 
2015, two in 2017 and one in 2018. The amendments introduced in June 2017, pursuant to the 
Budget Implementation Act, accelerated the anticipated  increase in the threshold for private -sector 
WTO investors to CAD 1 billion, two years ahead of schedule.40 The same Act also improved 
transparency, and imposed public reporting requirements on the Government regarding national 
security reviews, so that th e Government discloses and reports on the process in a similar manner 
as under the net benefit reviews. The other amendment introduced in 2017 was a result of the CETA 
Implementation Act, which raised the threshold for private -sector CETA investors to 
CAD 1.5 billion.41 As a result of this amendment and MFN provisions, some of Canada 's other FTA 
partners also received the same threshold.42 The 2015 changes were regulatory, and set the gradual 
increase in the threshold for private -sector WTO Members over a fou r-year period, that was 
subsequently accelerated in the 2017 amendment, and operationalized the concept of "enterprise 
value " to capture the value of intangible assets in the valuation of businesses.43 The Act was also 
                                                
37 ICA, R.S.C., 1985, c. 28 (1st Supp.). Justice Laws online information. Viewe d at: https://laws -
lois.justice.gc.ca/eng/acts/I -21.8/index.html .  
38 Not a Canadian citizen or a permanent resident . 
39 Government of Canada online information. Viewed at: https://www.ic.gc.ca/eic/site/ica -
lic.nsf/eng/home .  
40 Bill C-44. 
41 Bill C-30. 
42 See footnote in Box 2.1 for the list of FTAs for which Parties receive the higher threshold . 
43 See below discussion on the change to enterprise value from asset value.  WT/TPR/S/389 • Canada  
 
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  amended as part of the CPTPP implement ation at the end of 2018, to extend the trade agreement 
investor threshold to those partners.  
2.35.   Another development was the issuance of the 2016 Guidelines on the National Security Review 
of Investments, to provide guidance on the national security review pr ocess set out in Part IV.1 of 
the ICA.44 The Guidelines, for the first time, set out a non -exhaustive list of factors that the 
Government will take into consideration during the assessment of a national security risk. They also 
give further clarification on  timing and filing procedures and encourage potential investors to engage 
with government officials early in the process.  
Box 2.1 Investment thresholds, 2019  
Private -sector investors from WTO Members  CAD 1.045 billion  
SOE enterprises from WTO Members  CAD 416 million  
Private -sector trade agreement investorsa CAD 1.568 billion  
Non-WTO member investments  CAD 5 million (direct investment)  
CAD 50 million (indirect transaction)  
Investments in a cultur al business  CAD 5 million (direct investment)  
CAD 50 million (indirect transaction)  
a Applies only to the following agreements: Canada -Chile, Canada -Colombia, Canada -Honduras, 
Canada -Korea, Canada -Panama, Canada -Peru, the CETA, the CPTPP, and NAFTA.   
Source:  Government of Canada online information. Viewed at: https://www.ic.gc.ca/eic/site/ica -
lic.nsf/eng/h_lk00050.html#p1 ; and information provided by the authorities . 
2.36.   Pursuant to the rules set out in the ICA for notification or net benefit review of covered 
investments, the number of notifications and review applications of foreign investments over the 
past four years increased slightly, albeit with a slight decline dur ing FY 2015 -16, which subsequently 
rebounded (Table 2.3). Likewise, the value of the notifications and applications also steadily 
increased, although part of this may be attributed to a change in reporting value.45 Investments 
subject to a net benefit revie w remain relatively small in number, e.g. only 22 out of a total of 
737 investment transactions in FY 2016 -17 and 9 in FY 2017 -18. In terms of sectors, manufacturing 
and natural resources generally accounted for the largest value of investments subject to ICA filing 
requirements during the review period.46 Investments from the United States continued to be the 
largest source of the filings, and typically accounted for slightly more than 50% of the total. EU 
countries accounted for the second largest number, or about 25%, and the remaining 25% was 
accounted for by all other countries. In FY 2016 -17, China accounted for the third largest number 
of filings.47 National security review orders remained few during the review period, with between 
one and five issued d uring any one fiscal year since 2014.  
2.37.   As at December 2018, Canada had in place 37 FIPAs in order to promote or protect 
investments of investors of one party in the territory of the other.48 On 19 May 2018, the 
Canada -Ecuador FIPA was terminated by Ecuador, and has not been replaced. The obligations of the 
                                                
44 Government of Canada online information. Viewed at: https://www.ic.gc.ca/eic/site/ica -
lic.nsf/eng/h_lk0 0066.html .  
45 Amendments in 2015 introduced the concept of "enterprise value" for determining the threshold for 
net benefit reviews of direct investments by WTO Member private -sector investors. However, establishment of 
new businesses, direct investments b y state -owned or non -WTO investors to acquire control of a Canadian 
business, and indirect investments by any investor continue to be measured by asset value. Asset value is 
based on the value of the assets according to the business' financial statements ( book value), whereas 
enterprise value is a calculation that takes into account market value, debt and cash.  
46 Annual Reports, Investment Act Canada. Viewed at: https://www.ic.gc.c a/eic/site/ica -
lic.nsf/eng/h_lk81126.html . 
47 Annual Reports, Investment Act Canada. Viewed at: https://www.ic.gc.ca/eic/site/ica -
lic.nsf/eng/h_lk81126.html . 
48 FIPAs are in force w ith: Argentina; Armenia; Barbados; Benin; Burkina Faso; Cameroon; China; 
Costa  Rica; Côte d'Ivoire; Croatia; Czech Republic; Egypt; Guinea; Hong Kong, China; Hungary; Jordan; 
Kosovo; Kuwait; Latvia; Lebanon; Mali; Mongolia; Panama; Peru; the Philippines; P oland; Romania; 
Russian  Federation; Senegal; Serbia; Slovak Republic; Tanzania; Thailand; Trinidad and Tobago; Ukraine; 
Uruguay; and the Bolivarian Republic of Venezuela. Government of Canada online information. Viewed at: 
https://www.international.gc.ca/trade -commerce/trade -agreements -accords -commerciaux/agr -
acc/index.aspx?lang=eng .  WT/TPR/S/389 • Canada  
 
- 38 - 
 
  FIPA continue to apply for an additional 15 years for existing investments.  Since the last Review, 
new FIPAs have entered into force with Burkina Faso; Cameroon; Côte  d'Ivoire; Guinea; Hong Kong, 
China; Kosovo; Mali; Mongolia; Senegal; and Serbia. As at December 2018, Canada had completed 
negotiations with another 7 countries49 that had not yet entered into force and negotiations were 
ongoing with another 14.50 Canada ge nerally conducts FIPA negotiations on the basis of a model 
template. Recently -concluded FIPAs typically have provisions on national treatment, MFN, minimum 
standard of treatment, compensation for losses, performance requirements, expropriation, 
transparenc y, subrogation, taxation, dispute settlement, health, safety, and environmental 
measures, etc. Recent developments in FIPAs included expanded articles on the settlement of 
disputes between an investor and the Host Party. In August 2018, Canada launched a p ublic 
consultation process to make FIPAs more inclusive and progressive, as part of its aim to develop a 
more inclusive trade agenda.51 The aim of the consultations was to obtain the views of Canadians 
and key stakeholders on how the FIPA could better suppo rt SMEs and Indigenous groups and 
advance other objectives, such as gender equality. These consultations were concluded in 
October  2018, and work on a revised model is ongoing, with a view to having a new model 
agreement in 2019.  
Table 2.3 ICA statistics, 2014 -18, fiscal year basis  
(Number, unless otherwise indicated)  
 2014/15  2015/16  2016/17  2017/18  
ISED  
Investment filings  719 641 737 751 
• Value of filings (asset and enterprise value, 
CAD billion)  42.36  56.71  71.40  102.78  
Notifications  704 626 715 742 
• Value of notifications (asset and enterprise value, 
CAD billion)  20.58  29.83  41.03  67.64  
Review applications  15 15 22 9 
• Value of applications (asset and enterprise value, 
CAD billion)  21.78  26.88  30.37  35.13  
National security reviewsa 4 1 5 2 
• resulting in divesture  1 1 3 0 
• permitted with conditions imposed  2 0 2 0 
• blocked  1 0 0 1 
• withdrawal  0 0 0 0 
Department of Canadian Heritageb  
Automatic reviews  3 6 9 9 
Notifications  11 22 16 17 
Discretionary reviews  0 0 0 1 
Monitoring of previously -approved investments  14 17 14 13 
Interpretive opinions  0 0 1 1 
a Under section 25.3 of the ICA.  
b Cultural business activities that fall within the purview of the Minister of Canadian Heritage for the 
ICA include: the publication, distribution or sale of books, periodicals, magazines or newspapers in 
print or machine readable form, which means the Act may also be applied to digital and audio 
versions; the production, distribution, sale or exhibition of film or video recordings (including video 
games); the production, distribution, sale or exhibition of audio or video music recordings; and the 
publicatio n, distribution or sale of music in print or machine readable form. The phrase "music in 
print" means that the Act applies to sheet music.  
Source:  Annual Reports, Investment Act Canada. Viewed at: https://www.ic.gc.ca/eic/site/ica -
lic.nsf/eng/h_lk81126.html  and https://www.ic.gc.ca/eic/site/ica -lic.nsf/vwapj/ 2017-
18ICAAnnualReport.pdf/$file/2017 -18ICAAnnualReport.pdf . Government of Canada online 
information. Viewed at: https://www.canada.ca/en/canadian -heritage/corporate/publications/plans -
reports/departmental -results -report -2017-2018/report -administration -investment -canada -
act.html#a6a  and https://www.canada.ca/en/canadian -heritage/corporate/publications/plans -
reports/departmen tal-performance -report -2014-2015/main -report/report -administration -
investment -canada -act.html .  
                                                
49 Albania, Bahrain, Madagascar, Moldova, Nigeri a, United Arab Emirates, and Zambia.  
50 Democratic Republic of Congo, Gabon, Georgia, Ghana, India, Kazakhstan, Kenya, Mauritania, 
Mozambique, North Macedonia, Pakistan, Qatar, Rwanda, and Tunisia.  
51 Government of Canada online information. Viewed at: http://www.international.gc.ca/trade -
commerce/consultations/fipa -apie/index.aspx?lang=eng .  WT/TPR/S/389 • Canada  
 
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  2.38.   Canada 's FTAs have also increasingly become important for providing an investment 
framework. As at February 2019, the country had 12 FTAs in force that containe d investment 
chapters.52 The recent CETA Investment Chapter provides more comprehensive coverage of 
investment than earlier agreements and differs notably from previous Canadian FTAs in both 
structure and content. This Agreement raised the investment thresh old to CAD 1.5 billion, which, in 
turn, raised the threshold for private -sector investors in existing FTAs to the same level, due to MFN 
provisions. Furthermore, it will establish a permanent tribunal and appellate body for the resolution 
of investment dis putes. It also includes provisions for a mediation mechanism to resolve investment 
disputes. The recent CPTPP also includes innovative provisions relating to investment. In addition to 
raising the investment threshold to CAD 1.5 billion, as in CETA, the CP TPP's investment provisions 
include a new exception, allowing the Parties to dismiss investor -state dispute settlement (ISDS) 
claims that challenge a tobacco control measure as well as novel obligations limiting the Parties ' 
ability to impose performance r equirements relating to technology.  
2.4.2   Policy  
2.39.   The Government has worked to create an open, rules -based investment regime that facilitates 
FDI in Canada. As discussed earlier, during the review period, Canada increased the net benefit 
review thresholds under t he ICA and introduced new national security transparency. Furthermore, 
as part of its functions and mandate, the newly -created Invest in Canada Hub is expected to promote 
Canada as a top destination for global investment and develop an economic brand; it i s also to  
develop  and implement a national strategy to attract FDI to Canada.  
2.40.   One of the areas Canada has been working on in recent years is to improve the ISDS process 
as it forms an integral part of its FIPAs and FTAs, by enhancing the transparency of the system, and 
by reaffirming the rights of governments to regulate in the public interest. As part of this process, 
investor -state dispute procedures in FIPAs and FTAs have become more detailed and more 
transparent.  
2.41.   A public consultation process on FIPAs  was launched in 2018, in order to modernize them and 
seek input on their content (Section 2.4.1).53 
2.42.   In 2017, the Canadian Advisory Council on Economic Growth conducted a survey and study 
on improving the environment for investment based on input from the p rivate sector.54 Canadian 
businesses rated Canada low with respect to the regulatory environment, costs, and taxes. As such, 
the report made a number of recommendations, in particular to establish an agile regulatory system, 
modernize the tax system through  a targeted review, and expand certain advisory or support 
programmes.55  
2.43.   In response to this report and other input from stakeholders, Budget 2018 outlined the 
Government 's commitment to a regulatory reform agenda with a series of announcements. The 
Novemb er 2018 Fall Economic Statement then launched additional initiatives. As a result of these, 
the Government committed to a number of regulatory improvements, for example targeted reviews 
of regulations to address bottlenecks to innovation and economic growt h in key sectors. With regard 
to modernizing the tax system through a targeted review, as proposed by the Advisory Council, this 
has not been undertaken. However, the Fall Economic Statement introduced certain accelerated 
depreciation measures in order to encourage business investment in Canada (Section 1).56 
                                                
52 UNCTAD online information. Viewed at: 
https://investmentpolicyhub.unctad.org/IIA/AdvancedSearchBITResults ; and information provided by the 
authorities.  
53 Global Affairs Canada online information. Viewed at: https://www.canada.ca/en/global -
affairs/news/2018/08/minister -carr-launches -public -consultation -on-foreign-investment -promotion -and-
protection -agreements.html ; and Government of Canada online information. Viewed at: 
http://www.international.gc.ca/trade -commerce/consultations/fipa -apie/privacy -
confidentialite.aspx?lang=eng&_ga=2.231537823.1414648944.1537438189 -1644062425.1536830157 .  
54 Advisory Council on Economic Growth online i nformation,  Investing in a Resilient Canadian Economy . 
Viewed at: https://www.budget.gc.ca/aceg -ccce/pdf/investing -in-a-resilient -canadian -economy -eng.pdf.  
55 Advisory Council on Economic Growth online information, Investing in a Resilient Canadian Economy . 
Viewed at: https://www.budget.gc.ca/aceg -ccce/pdf/investing -in-a-resilient -canadian -economy -eng.pdf . 
56 Government of Canada online information. Viewed at: https://www.bud get.gc.ca/fes -
eea/2018/docs/statement -enonce/fes -eea-2018-eng.pdf .  WT/TPR/S/389 • Canada  
 
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  2.4.3   Restrictions  
2.44.   The economy is generally open to foreign investment, and Canada has taken further steps to 
remove burdens for investors, such as raising the thresholds that subject investments to review. 
However, there remain long -standing barriers to investment in a number of sectors (Table  2.4). 
These include key sectors in the economy, such as mining, transport, and cultural industries. There 
were some improvements in the transport sector since the last Review. In order to allow for more 
competition in the domestic market, foreign ownership rules for airlines were liberalized through the 
Transportation Modernization Act.57 Through this legislation, non -Canadians may now own up to 
49% instead of just 25% of  the voting interests of a Canadian air carrier providing passenger or 
all-cargo air services, with some safeguards (see Table 2.4).  
2.45.   According to the OECD Restrictiveness Index from 2017, Canada ranks 33rd out 36 countries 
in terms of openness to FDI.58 However, Canada undertook a number of measures in the last few 
years to improve its overall investment climate and attractiveness to FDI as described elsewhere in 
this sub -section. It is noted that Canada ranks much higher in other rankings, such as the A.T. 
Kearney Foreign Direct Investment Confidence Index, having moved up three places to second rank 
in the 2018 Index, its highest ranking in the history of the ranking.59 
Table 2.4 Foreign investment restrictions,  2019  
Industry sector  Provision  Reference  
Fishing  Only Canadians or Canadian -controlled corporations 
are permitted to obtain fishing licences. However, the 
regulations specify that the Minister may issue a 
licence to a foreign fishing vessel for certain purposes.  Coastal Fisheries Protection 
Act 
Uranium mining  Foreign ownership of uranium mining properties is 
limited to 49%, with the possibility of being exempted 
from the Policy.  Non-Resident Ownership 
Policy in the Uranium 
Mining Sector  
Air transport  Foreign ownership of airlines is limited to 49%. 
Notwithstanding the 49% ownership limit, there are 
two safeguards: no more than 25% of the voting 
interests can be owned directly or indirectly by any 
single non -Canadian; and no more than 25% of the 
voting interests can be owned by one or more non -
Canadians authorized to provide air services in any 
jurisdiction.  Canada Transportation Act, 
as amended by the 
Transportation 
Modernization Act  
Oil sands  Minister of ISED Canada will find the acquisition or 
control of a Canadian oil sands business by a foreign 
State -Owned Enterprise to be of net benefit to Canada 
on an exceptional basis only.  Investment Canada Act 
Policy Statement  
Telecommunications  Foreign investment in a facilities -based 
telecommunications  service supplier is restricted to 
20% direct investment and 33.3% indirect 
investment. Restrictions do not apply to satellite and 
sub-sea facilities, and do not apply to providers with 
less than a 10% revenue share of the 
telecommunications market.  Teleco mmunication Act  
Broadcasting  Foreign ownership of broadcasting programming and 
distribution undertakings is limited to 20% of the 
voting shares, in the case of operating corporations. 
Additionally, the CEO and 80% of the Board of 
Directors must be Canadian. In the case of holding 
corporations, foreign ownership is limited to 33 1/3% 
of the voting shares and there are no restrictions on 
the nationality of the CEO and board members. 
However, a non -Canadian parent corporation and its 
directors must not  control or influence any 
programming decisions of the broadcasting 
undertaking.  Broadcasting Act  
                                                
57 Justice Laws online information, Transportation Modernization Act , Bill C-49, S.C. 2018, c. 10 . 
Viewed  at: https://laws -lois.justice.gc.ca/eng/AnnualStatutes/2018_10/page -1.html . 
58 OECD online information, FDI Restrictiveness . Viewed at: https://data.oecd.org/fdi/fdi -
restrictiveness.htm .  
59 A.T. Kearney online information. Viewed at: https://www.atkearney.com/foreign -direct -investment -
confidence -index/full -report .  WT/TPR/S/389 • Canada  
 
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  Industry sector  Provision  Reference  
Cultural industries:  
Book publishing and 
distribution  Foreign investment in new businesses is limited to 
Canadian -controlled joint ventures, and foreign 
acquisition of existing businesses is allowed under 
certain conditions.  ICA 
Periodical publishing  Foreign acquisitions of Canadian -owned and Canadian -
controlled periodical publishing businesses are not 
permitted. Foreign investment in the periodical 
publishing sector is allowed under certain conditions.  ICA 
Film distribution  Foreign acquisition of a Canadian -controlled distributor 
is not allowed. Foreign investment in new distribution 
businesses is allowed under certain conditions.  ICA 
Source:  WTO Secretariat, based on information provided by the authorities.  
2.4.4   Incentives and promotion  
2.46.   An important development during the review period was the creation of Invest in Canada, a 
departmental corporation that aims to increase Canada 's ability to attract and  facilitate high -impact 
FDI and the jobs that come with it. Launched in March 2018, the Government is providing 
CAD 145 million over five years to create the organization, which promotes Canada as a premier 
investment destination and helps accelerate global investment. Invest in Canada works closely with 
Global Affairs Canada 's Trade Commissioner Service (TCS) to support foreign investors to establish 
or expand their operations in Canada and leverage increased TCS expertise.  
2.47.   The Government is also prov iding CAD 55 million over five years, and an additional 
CAD 14 million ongoing, to Global Affairs Canada to increase the TCS' capacity to promote Canada 
as an investment destination in strategic markets around the world. The TCS continues its role in 
helping companies penetrate foreign markets by promoting Canada 's economic, trade, and 
investment interests. It operates over 160 trade offices in Canada and around the world, offering a 
global network that provides market intelligence and related business serv ices.  
2.48.   One of the government programmes to attract FDI is the Invest Canada -Community 
Initiatives (ICCI) contribution programme, which has been in operation since 2006.60 The ICCI 
provides funds to Canadian communities that wish to improve their capacity to  attract, retain and 
expand FDI, with the overall goals of creating jobs, stimulating innovation, and increasing exports. 
The programme does not give direct incentives to businesses, rather it provides contributions to 
non-profit partnerships with local co mmunities. These grants, or contributions, range from 
CAD 3,000 to CAD 300,000 for a period of one year, based on a competitive application process; 
total government support cannot exceed 50% of eligible expenses.61 For 2019, the ICCI programme 
is supportin g 85 organizations across Canada, with CAD 5.3 million in funding provided by the 
Federal Government.62 
2.49.   The Foreign Trade Zones – Marketing Program (FTZ -MP) was a pilot programme designed to 
market Canada 's foreign trade zone (FTZ) advantage and attract FDI . It provided financial support 
to regional organizations and non -profit organizations to promote local FTZ -type benefits linked to 
strategic locations across the country. The FTZ -MP pilot ended on 31 March 2018 . 
2.50.   The "Invest in Canada " webpage provides inf ormation on various incentive programmes to 
potential investors. It lists more than 800 incentive programmes across Canada that cover a wide 
range of assistance, such as grants, loans, guarantees, tax refunds and credits, wage subsidies, 
equity investments , etc.63 Many of these are general incentives open to all businesses, both in 
Canada and to potential investors, while others are targeted at specific industries, regions, 
minorities, etc. Very few provide incentives specifically to attract foreign direct i nvestors. However, 
                                                
60 The Canadian Trade Commissi oner Service online information. Viewed at: 
http://www.tradecommissioner.gc.ca/funding -financement/icci -icic/about -icci-propos -icic.aspx?l ang=eng . 
61 The Canadian Trade Commissioner Service. Viewed at: http://www.tradecommissioner.gc.ca/funding -
financement/icci -icic/faq -document.aspx?lang=eng . 
62 The Canadian Trade Commissioner Service. Viewed at: http:// www.tradecommissioner.gc.ca/funding -
financement/icci -icic/154730.aspx?lang=eng . 
63 Invest in Canada online information. Viewed at: 
https://www.investcanada.ca/incentives#business_tool .  WT/TPR/S/389 • Canada  
 
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  the Investment Attraction Fund of the Department of Tourism, Culture, Industry and Innovation of 
the Province of Newfoundland and Labrador provides customized financial assistance to attract 
large-scale businesses and FDI to the province .64 The financial assistance is awarded to inward 
investors for establishing a business in the province or expanding a business as a result of FDI, after 
making a successful application and meeting certain criteria.  
 
 
                                                
64 Tourism, Culture, Industry and Innovation of the Province of Newfoundland and Labrador online 
information. Viewed at: https://www.tcii.gov.nl.ca/invest/invest_attr_fund.html .  WT/TPR/S/389 • Canada  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE   
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  The Customs Act1 and its implementing regulations, inter alia , the Reporting of Imported Goods 
Regulations2 and the Transportation of Goods Regulations3, provide the main framework for import 
procedures in Canada. During the review period, there were no significant amendments to the 
Customs Act, but there were several changes and clarifications with respect to, inter alia , regulations 
concerning reporting requirements resulting from the implementation of the Advance Commercial 
Information (ACI) programme. Moreover, the Canada Border Services Agency (CBSA) issued several 
Customs Notices and D -Memoranda4 regarding ne w initiatives such as the Single Window Initiative 
(SWI) and Phase 1 of the CBSA Assessment and Revenue Management (CARM).  
3.2.  The CBSA is responsible for implementing customs procedures. Importers of commercial goods 
must be registered with the CBSA to obtain  a business number from the Canada Revenue Agency 
(CRA) to open an import/export account. This account is free of charge. Importers may use a licensed 
customs broker5 to transact with the CBSA, but they remain responsible for the accounting 
documentation and for payments of duties and taxes. Importers must provide proof of origin, which 
may be in the form of a commercial invoice, a Canada Customs Invoice, a Form A, a C ertificate of 
Origin, an Exporter 's Statement of Origin, or any other documentation that indicates the country of 
origin of the goods. Each tariff treatment requires specific proof of origin as set out in regulations.6 
The CBSA has the authority to examine  shipments randomly, to verify compliance with respect to 
origin, tariff classification, and value for duty of imported goods.7 Advance rulings for tariff 
classification and origin under a free trade agreement (FTA), and National Customs Rulings for 
valuat ion and origin (non -FTAs) are issued by the CBSA upon request.8 All commercial goods must 
be reported to the CBSA using a Cargo Control Document or the Electronic Data Interchange (EDI) 
system.  
3.3.  For the release of imported merchandise, either of two method s may be followed. The first 
method is through the full accounting of documents and the payment of duties for the release of the 
goods. The import documentation requirements for this method remain broadly as in Canada 's 
previous Review, including two copie s of Form A8A -B, the Cargo Control Document (CCD), 
two copies of Form CI1, the Canada Customs Invoice (or the commercial invoice that contains the 
data), and a paper copy of all import permits, certificates, licences, or required documents from 
other gover nment departments and agencies, or an electronic copy for EDI participants.9 
Alternatively, importers and licensed customs brokers can obtain the release of goods prior to the 
payment of duties through the Release on Minimum Documentation (RMD).10 To take a dvantage of 
the RMD, the importer must follow an application process, which includes posting an approved 
amount of security with the CBSA. This option, which is generally used by established importers with 
high import volumes, requires the electronic trans mission of RMD release requests using the EDI 
system, with certain exceptions.  
                                                
1 Customs Act (R.S.C., 1985, c. 1 (2nd Supp.)), last amended on 21 June 2018 . The CBSA's mandate is 
governed by the Canada Border Services Agency Act  (S.C. 2005, c. 38 ), last amended on 10 February 2007.  
2 The Reporting of Imported Goods Regulations  (SOR/86 -873), last amended on 24 October 2015.  
3 Transportation of Goods Regulations ( SOR/86 -1064), last amended on 24 October 2015.  
4 The D -Memoranda provide a series of guidelines, regulations, policies, and procedures on 
CBSA -related issues. Viewed at: https://www.cbsa -asfc.gc.ca/publications/dm -md/menu -eng.html . 
5 Customs Act, Section 9; and CBSA online in formation . Viewed at: https://www.cbsa -
asfc.gc.ca/services/cb -cd/. 
6 CBSA online information. Viewed at:  https://cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -4-2-
eng.html . 
7 Customs Act, Sectio n 42.01.  
8 Customs Act, Section 43.1(1)(c); and CBSA online information. Viewed at: http://www.cbsa -
asfc.gc.ca/publications/dm -md/d11/d11 -11-1-eng.html . 
9 CBSA online infor mation. Viewed at: https://www.cbsa -asfc.gc.ca/import/release -dedouanement -
eng.html#p214_17746 . 
10 The RMD allows importers to obtain the release of their goods  by presenting data for interim 
accounting. Full accounting data and payment are not required at the time of release but are required within 
certain time -frames.  CBSA online information. Viewed at:  https://cbsa -asfc.gc.ca/import/release -
dedouanement -eng.html#p214_17746 .  WT/TPR/S/389 • Canada  
 
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  3.4.  Section 12.1(1) of the Customs Act mandates the cargo carrier to provide advance cargo 
information (ACI) for all cargo it is responsible for on board that conveyance. The implem entation 
of the ACI/eManifest programme was the most significant change to customs procedures during the 
period under review.11 The ACI programme aims at enhancing the CBSA 's capacity to undertake 
pre-arrival risk assessments of goods arriving to Canada, as  well as to facilitate trade. The 
programme became operational in all modes of transportation (i.e. air, marine, rail, and highway) 
after the eManifest requirements for all highway and rail shipments became legally binding in 
July 2015.12 When fully impleme nted, all commercial clients (i.e. carriers, freight forwarders, and 
importers) will be required to provide CBSA officers with electronic pre -arrival 
information:  ACI/eManifest requirements are currently mandatory for carriers in all modes, and for 
freight  forwarders in air and marine modes, but there are no mandatory importer time-frames for 
any mode  (Table  3.1). The transition period of the eManifest programme continued for freight 
forwarders after the CBSA decided to delay the mandatory implementation da te in May 2017 (i.e.  no 
penalties for non -compliance).13 As of January 2019, importers were not yet covered in the eManifest 
programme.  
3.5.  ACI/eManifest 's commercial reporting requirements and time -frames for submitting required 
documentation differ depending on the mode of transportation and the type of commercial client 
(Table  3.1).14 In addition, transmitting an electronic Conveyance Arrival Certificate Message (CACM) 
prior to arrival became mandatory for air, marine, and rail carriers; and a Warehouse Arriva l 
Certification Message (WACM) for operators of all types of CBSA -licensed sufferance warehouses in 
May 2015.15 Certain types of importations may be exempt from the requirement for pre -arrival 
information, in cases such as: a Customs Self -Assessment (CSA) a pproved shipment; approved 
shipments valued at less than CAD 2,500, under the Courier Low Value Shipment (LVS) programme 
for CBSA 's approved couriers; and vehicles and equipment for use in emergency situations.16 Even 
if exempted from advance electronic inf ormation requirements, all goods imported into, or moving 
in-transit through, Canada must be reported to the CBSA at the first port of arrival. Pre -arrival 
information must be transmitted electronically through the EDI or the eManifest Portal. The latter, 
available for highway carriers and freight forwarders, was originally intended for use primarily by 
small to medium -sized businesses.17 The eManifest Portal is not used by rail, air or marine carriers. 
However, it is used by freight forwarders in all modes.  
Table 3.1 Time -frames for submission of pre -arrival information by mode and commercial 
client  
(√ mandatory; Δ not yet mandatory, no penalties for non -compliance as of January 2019; X not mandatory)  
Mode  Timeframe  Type of information by commercial client  
Carriers  Freight forwarders  Importers  
 
 Cargo and 
conveyance 
information (including 
in-transit shipments)  Secondary information 
(including house bills in 
bond and in -transit 
shipments)  Advance 
electronic 
trade data  
Marine  24-96 hours, depending on 
the type and origin of 
goods  √ √ X 
                                                
11 The ACI programme was introduced in three separate phases: the marine mode (2004) , the air mode 
(2006) , and the eManifest . 
12 Canada Gazette online information. Viewed at: http://www.gazette.gc.ca/rp -pr/p2/2015/2015 -05-
06/html/sor -dors90 -eng.html .  
13 CBSA Customs Notice CN 17 -15. 
14 The Reporting of Imported Goods Regul ations; the Memoranda -D3 (transportation ) series , namely 
D3-2-1 (air); D3 -4-2 (highway); D3 -5-1 (marine); and D3 -6-6 (rail).  
15 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/prog/aci -manif -ipec/menu -
eng.html . The electronic CACM must be transmitted by registered participants using an EDI method, after the 
commercial conveyan ce arrives in Canada. In the case of the marine mode, the CACM must be transmitted 
when the marine vessel lands at a CBSA office upon arrival in Canada. The CACM can be transmitted and 
received by the CBSA within a two -hour window prior to arrival, conditi onal on the vessel being within 
Canadian waters at the time the arrival request is submitted to the CBSA. In the case of the air mode, the 
CACM must be transmitted without delay after the aircraft that is transporting the cargo is cleared to land at an 
airport in Canada. For the rail mode, the CACM must be transmitted electronically up to 30 minutes in advance 
of the actual arrival of the conveyance at the Canadian border.  
16 Detailed are prescribed in the Memoranda D -3 series: Memoranda D3 -2-1 (air); D3 -4-2 (highway); 
D3-5-1 (marine); and D3 -6-6 (rail).  
17 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/prog/manif/portal -portail -eng.html . WT/TPR/S/389 • Canada  
 
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  Mode  Timeframe  Type of information by commercial client  
Carriers  Freight forwarders  Importers  
Air 4 hours prior to arrival, or 
at the time of departure if 
the flight is less than 
4 hours in duration  √ √ X 
Rail 2 hours prior to arrival  √ Δ X 
Highway  1 hour prior to arrival  √ Δ X 
Source:  Information compiled by the WTO Secretariat, based on CBSA online information. Viewed at: 
https://www.cbsa -asfc.gc.ca/prog/aci -manif -ipec/menu -eng.html ; the Reporting of Imported Goods 
Regulations; and the Memoranda -D3 (transportation) series.  
3.6.  In addition to the ACI programme, the CBSA continued to facilitate the movement of goods by 
providing streamlined border processes through various programmes , including with Canada 's key 
trading partners, especially the United States18, as noted in the previous Review. These programmes 
include the Free and Secure Trade Program (FAST), the Commercial Driver Registration Program 
(CDRP), the Release Prior to Payme nt (RPP) Privilege, and Warehousing (Table 3.2). Since the last 
Review, the CBSA has rolled out two new initiatives to facilitate trade, namely the Single Window 
Initiative (SWI), and Phase 1 of the CBSA Assessment and Revenue Management (CARM). Also, the 
Cargo Control and Sufferance Warehouse Modernization (CCSW M) initiative was subject to a few 
changes in procedures and rules.  
Table 3.2 Main CBSA trade facilitation and border security programmes  
Programme  Description  Eligibility  
Trade Facilitation Programmes  
Commercial 
Driver 
Registration 
Program (CDRP)  The CDRP provides commercial drivers with access to an 
expedited border crossing, simplifies the declaration 
process (e.g. paying duties and taxes), and extends 
participation in other programmes such as FAST (see 
below). The CBSA periodically reviews an approved 
driver 's application/vehicle to ensure compliance with 
CDRP requirements.  Citizens or permanent residents of 
Canada or the United States.  
To qual ify for the CDRP, applicants 
must:  
 
• be admissible to Canada and 
have no criminal record that 
has not been pardoned;  
• not have violated customs or 
immigration laws; or  
• be deemed to be of good 
character, meaning that the 
CBSA is confident they will 
comply wi th programme 
obligations  
 
Number of participants: 1,658  
Release Prior to 
Payment (RPP) 
Privilege  The RPP Privilege allows importers or customs brokers to 
obtain the release of goods before duties and taxes are 
paid. All goods are eligible (including cont rolled and 
regulated goods).  Importers or licensed customs 
brokers who have posted a financial 
security and obtained an account 
security number.  
Warehousing, 
and Cargo 
Control and 
Sufferance 
Warehouse 
Modernization 
(CCSWN)  Shipments may be moved beyond the border or an 
airport without having cleared customs but remain under 
customs control.  
Three types of warehouses exist:  
Sufferance warehouse:  privately -owned and -operated 
facilities licensed by the CBSA for the control, short-term 
storage, transfer, delivery and examination of in -bond 
goods pending release from customs.  
Bonded warehouse:  Imported or domestic goods 
destined for export remain in a bonded warehouse for up 
to four years. These facilities provide a deferral of  all 
duties.  
Place of safekeeping:  If goods are not claimed by a client 
from a sufferance warehouse after 40 days, they are 
moved to a place of safekeeping at the client 's expense. 
These goods are forfeit to the Federal Government and 
are subject to dispos al. A licence is required, to be issued 
after complying with the initiative 's 
requirements and posting a financial 
security with the CBSA.  
                                                
18 Public Safety Canada onli ne information regarding the Beyond the Border Action Plan. Viewed at: 
https://www.publicsafety.gc.ca/cnt/brdr -strtgs/bynd -th-brdr/ctn -pln-en.aspx . WT/TPR/S/389 • Canada  
 
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  Programme  Description  Eligibility  
Single Window 
Initiative (SWI)  The SWI allows importers to provide all the regulatory 
import requirements of multipl e government agencies 
via a single electronic transmission of shipment 
information through the Integrated Import Declaration 
(IID) platform for both regulated and non -regulated 
goods.  Importers or licensed customs 
brokers.  
CBSA 
Assessment and 
Revenue 
Mana gement 
(CARM) Accounts 
Receivable 
Ledger (ARL)  Automatizes Phase 1 of the CARM that supports the 
payment of duties and tax revenues. Implementation of 
the ARL accounting system.  Importers or licensed customs 
brokers.  
Trusted Traders Programmes  
Customs Self- 
Assessment 
Program (CSA)  The CSA Program provides a streamlined accounting and 
payment process, and the option of streamlined 
clearance for eligible goods. Goods must be shipped 
directly from the United States or Mexico by pre -
approved importers, car riers or registered drivers. 
Prohibited, controlled or regulated imports are not 
eligible. Other government department requirements 
(i.e. permit, licence) must generally be met before the 
release of goods.  
 
The CSA Program is comprised of two components:  
 
• accounting, revenue reporting, payment and 
adjustment: importers use the CSA accounting and 
payment processes for all commercial goods they 
import, regardless of the clearance process used to 
report the goods; and  
• clearance (transportation and reporting o f goods): an 
optional reporting and release process available to 
CSA importers when using a CSA carrier and a 
FAST/CDRP -registered driver to carry CSA -eligible 
goods into Canada, i.e. goods that are shipped directly 
to Canada from continental United States  or Mexico, 
that are not prohibited, controlled or regulated, and 
that are not subject to the release requirements of 
any other government department.  
 
CSA-approved participants may be exempted from 
ACI/eManifest requirements.  
 
CSA-Platinum is a benefit o f CSA available to approved 
CSA importers that demonstrate a superior level of 
effectiveness and reliability with respect to internal 
controls and compliance directly related to this trader 
programme. Once approved, participants can conduct 
their own self -testing of trader programme compliance, 
which allows the CBSA to invest its post -release 
verification resources in areas of higher or unknown risk. 
Once approved, participants receive enhanced benefits 
that extend beyond their CSA membership benefits.  Importers and carriers must 
undergo a risk assessment and 
demonstrate that their systems 
support CSA requirements (e.g. 
audit trails, internal controls, and 
policies and procedures).  
Importers: residents of Canada and 
the United States with a history of 
actively importing for at least 90 
days.  
Carriers must have posted a 
minimum security of CAD 25,000; 
they must have actively transported 
commercial goods to or from 
Canada for at least 90 days.  
Number of participants: 107 
importers and 992 carriers as of 
November 2018.  
Partners in 
Protection (PIP) 
Programme  PIP is a voluntary programme, with no membership fee, 
that enlists the cooperation of private industry to 
enhance border and trade chain security. In return, 
programme members are offered benefits such  as lower 
rates of examination, access to FAST lanes, and 
supplemental benefits through signed mutual recognition 
arrangements (MRAs) with compatible foreign 
programmes. The CBSA currently has seven signed 
MRAs, with the United States, Japan, the Republic of 
Korea, Singapore, Mexico, Israel, and Australia.  
 
The Trusted Trader Portal (online tool) is available to 
members and applicants.  
 
The harmonization of the CBSA 's PIP and the United 
States ' Customs and Border Protection (CBP) 's Customs 
Trade Partnersh ip Against Terrorism (CTPAT) 
programmes for highway carriers was implemented in 
September 2018.  Applicants must be solvent; have a 
good record of compliance with the 
CBSA; have no convictions; meet 
minimum security requirements in 
the areas of procedur al, physical, 
information technology and cargo 
handling security; have facilities 
located in Canada or the United 
States; and successfully pass an on -
site inspection to confirm 
compliance with the programme 's 
security requirements.  
 
Importers, exporters, carriers 
(including couriers), freight 
forwarders, warehouses (including 
marine terminal operators), customs 
brokers and shipping agents are 
eligible to apply.  WT/TPR/S/389 • Canada  
 
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  Programme  Description  Eligibility  
The authorities noted that the CBSA is currently working 
towards the merger of its CSA and PIP programmes into 
one simplified, more enticing and better -automate d 
programme, centred on supply chain security, with an 
added focus on customs and trade compliance.  As of November 2018, 
1,633  members (of which 816 were 
CSA members).  
Free and Secure 
Trade Progr am 
(FAST) – Joint 
programme 
between the 
CBSA and the 
United States 
Customs and 
Border 
Protection (CBP)  FAST is a commercial clearance initiative of the CSA and 
PIP programmes, designed to ensure safety and security 
while expediting legitimate trade across the Canada -U.S. 
border by approved companies and approved carriers 
using registered drivers. Dedicated FAST lanes are 
located at five specific highway ports of entry: Windsor, 
Sarnia, Fort -Erie, Emerson and Pacific Highway.  
FAST-eligible goods must meet th e following conditions: 
goods must be shipped directly to Canada from the 
continental United States or Mexico; prohibited, 
controlled or regulated imports are not eligible; and 
goods should not be subject to the release requirements 
of any other government  department.  Carriers and importers must be 
authorized under the CSA and/or 
the PIP programme, and the driver 
must be registered in either the 
FAST-Commercial Driver Program or 
Commercial Driver Registration 
Program (CDRP).  
 
To use a FAST lane, CSA -appro ved 
carriers must use a CDRP - or FAST -
approved driver and carry CSA -
eligible goods for a CSA -approved 
importer.  
To qualify for FAST, applicants 
must:  
 
• be admissible to Canada and 
have no criminal record that 
has not been pardoned;  
• not have violated custo ms or 
immigration laws;  
• be deemed to be of good 
character, meaning that the 
CBSA is confident they will 
comply with programme 
obligations; and  
• be 18 years old or over and 
possess a valid driver 's licence.  
 
All FAST participants (drivers, 
carriers and imp orters) must have 
undergone a risk assessment as 
part of their enrolment in the PIP, 
CSA and CDRP/FAST programmes.  
 
Number of participants: 58,219  
Source:  Information  compiled by the WTO Secretariat, based on CBSA online information. Viewed at: 
https://www.cbsa -asfc.gc.ca/menu -eng.html ; https://www.cbsa -asfc.gc.ca/prog/fast -expres/driv -
chauff -eng.htm ; and https://www.cbsa -asfc.gc.ca/prog/cdrp -picsc/menu -eng.html#a2 .  
3.7.  The Single Window Initiative (SWI)19, which was initially launched in March 2015, allows 
importers to provide all the  regulatory import requirements of multiple government agencies via a 
single electronic transmission of shipment information through the Integrated Import Declaration 
(IID) platform, both for regulated and non -regulated goods.20 The IID submission can be se nt to the 
CBSA for processing up to 90 days prior to the arrival of the goods. The CBSA transmits the data 
from importers directly to the appropriate department or agency responsible for regulating the 
goods. The department/agency assesses the information provided and submits any border -related 
decisions to the CBSA as required. In November 2018, there were nine participating government 
departments and agencies in the SWI, representing 38 government programmes (Table  3.3).21 In 
the future, the IID will be th e only electronic release request option available for goods regulated by 
Participating Government Agencies (PGAs), since the current available option to release decisions of 
goods through the Pre -Arrival Review System (PARS) and the Release on Minimum Doc umentation 
(RMD) system will be replaced with the IID by 2019.22 The authorities noted Canada 's intention to 
decommission the PARS and the RMD on 1 April 2019. However, a pplication of both systems for 
non-regulated goods will remain until at least 2020.  
                                                
19 The SWI reflects a commitment made by Canada and the United States under the Beyond the Border 
Action Plan, a joint initiative of the U nited States and Canada. Viewed at: 
https://www.publicsafety.gc.ca/cnt/brdr -strtgs/bynd -th-brdr/ctn -pln-en.aspx . 
20 CBSA Customs Notice 17 -09, 21 March 2017.  
21 CBSA Customs Notice 17 -09, 21 March 2017.  
22 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/prog/sw -gu/menu -eng.html . WT/TPR/S/389 • Canada  
 
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  Table 3.3 Single Window Initiative 's participating government departments and agencies, 
and their programmes  
Government 
departments/agencies  Programmes  
Canadian Food Inspection 
Agency  All Programs (Animal Health , Feed, Fertilizer Safety, Food, Plant Health, 
Plants with Novel Traits, and Seed)  
Canadian Nuclear Safety 
Commission  Nuclear Substances and Equipment  
Environment and Climate 
Change Canada  Hazardous Waste and Hazardous Recyclable Materials  
Ozone Depleting Substances and Halocarbon Alternatives  
Vehicle and Engine Emissions Program  
Wildlife Enforcement  
Fisheries and Oceans Canada  Trade Tracking  
Aquatic Invasive Species  
Aquatic Biotechnology  
Global Affairs Canada  Import Controls of Agricultural, St eel and Textiles and Clothing Products  
Health Canada  Consumer Product Safety; Human Drugs; Natural Health Products;  
Importation of Controlled Substances and Precursors; Veterinary Drugs;  
Radiation Emitting Devices; Blood and Blood Components;  
Cells, Tissues and Organs; Active Pharmaceutical Ingredients;  
Donor Semen; Medical Devices; Pesticides  
Natural Resources Canada  Office of Energy Efficiency; Explosives; Kimberley Process (Rough 
Diamonds)  
Public Health Agency of 
Canada  Pathogens and Biological T oxins 
Transport Canada  Importation of Tires  
Importation of Vehicles – CMVSSa Appendix G  
Importation of Vehicles – CMVSS Appendix F  
Importation of Vehicles – CMVSS Case -by-Case 
Importation of Vehicles – FMVSSb Standard  
Importation of Vehicles – FMVSS Case -by-Case 
Importation of Vehicles – Canadian Vehicles Returning  
Importation of Vehicles – Age Exempt  
Importation of Vehicles – Unregulated  
Importation of Vehicles for Parts  
a Canadian Motor Vehicle Safety Standards.  
b Federal Motor Vehicle Safety Standards.  
Source:  CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/prog/sw -gu/ogd -amg-eng.html . 
3.8.  The CBSA Assessment and Revenue Management (CARM) is a multi -year project, implem ented 
in four phases from 2014 to 2021, to modernize the CBSA 's assessment and revenue processes 
relating to the importation of commercial goods. Under the first phases of CARM (2014 -16), the 
Accounts Receivable Ledger (ARL), a fully integrated and central ized accounting system, came into 
effect in January 2016.23 The ARL allows for the off -setting of account credits (refunds) against 
debits (amounts payable), and offers users more comprehensive accounting statements ( inter alia , 
in-depth duty and tax paymen t details) and new electronic payment options (i.e. due date/late 
payment, Canadian currency only, and no cash payments).24 CARM Phase 2, which intends to 
streamline the assessment and collection of revenue from importers through financial controls and 
reporting, started in March 2018 and is currently (February 2019) underway.25  
3.9.  Since 2013, under the Cargo Control and Sufferance Warehouse Modernization (CCSWN) 
initiative, the CBSA reviewed its cargo and sufferance warehouse policies and regulations, with 
regard to the in -bond movement of imported goods and the storage requirements of imported 
goods.26 In September 2017, the CBSA amended delivery requirements by authorizing consolidated 
                                                
23 CBSA Customs Notice 16 -06, 25 February 2016; CBSA Customs Notice 16 -19, 21 July 2016; and 
CBSA Memorandum D17 -5-1, 16 October 2017.  
24 According to CBSA Memorandum D17 -5-1, customs acco unt holders with monthly account balances of 
more than CAD 50,000 must submit their payments electronically.  Moreover, paragraph 25  provides other 
payment options if electronic payment is not possible.  
25 CBSA, Departmental Plan 2018 –19, Part III – Departme ntal Expenditure Plans . Viewed at: 
https://www.cbsa -asfc.gc.ca/agency -agence/reports -rapports/rpp/2018 -2019/index -eng.html . 
26 CBSA online information. V iewed at: http://www.cbsa.gc.ca/import/ccswm -meacf/menu -eng.html . WT/TPR/S/389 • Canada  
 
- 49 - 
 
  and unreleased cargo to move directly to a sufferance warehouse (Type CW27) without being 
re-manifested.28 The Customs Notice 17 -28 Update - Changes to the Canada Border Services Agency 
Policies  respecting the Importation and Transportation of Goods (Delivery Requirements of 
Consolidated Cargo to Type CW Sufferance Warehouses) was published the same month, in support 
of these amended requirements; this policy remains in effect.  
3.10.   In general, CBSA decisions may be appealed to the Recourse Directorate at the CBSA 's 
Corporate Affairs Branch, for review. Recourse Directorate officials are  responsible for conducting an 
independent review, on behalf of the Minister or President of the CBSA, to determine if the decision 
or action taken was correct. Reviewing officials may seek technical clarification from CBSA experts, 
or other government dep artments, when necessary.29 Between 2015 and 2018, there were 
2,492  requests (to the Recourse Directorate) for re -determination of trade programme matters 
(i.e. tariff classification, origin, or value of duty). The result of the recourse review may be appea led 
to an appropriate court, tribunal, or commission, depending on the type of appeal. For trade -related 
matters, the Recourse Directorate 's decisions may generally be further appealed to the Canadian 
International Trade Tribunal (CITT). The CITT 's decision may then be appealed to the Federal Court 
of Appeal. Between 2015 and 2018, 219 appeals relating to trade matters were filed in the CITT 
under the Customs Act, of which the majority related to tariff classification.30  
3.11.   The Administrative Monetary P enalty System (AMPS) grants the CBSA the mandate to impose 
monetary penalties for non -compliance with the CBSA 's customs legislative, regulatory and 
programme requirements. There has been no major change to the AMPS since the last Review. All 
AMPS contrave ntions are listed in the Master Penalty Document, including penalties for 
non-compliance related to the ACI programme.31 The AMPS 's Master Penalty Document lists (as of 
January 2019) 152 contraventions related to failure to comply with requirements identifi ed in the 
Customs Act, Customs Tariff and related regulations. Each contravention included in the list provides 
the description of the failure to comply, the penalty amounts, references (i.e. legislation, 
D-Memorandum), and guidelines for application of pe nalties regarding the contravention. The 
Designated Provisions (Customs) Regulations outline the sections of the Customs Act, the Customs 
Tariff, the Special Import Measures Act (SIMA), and other regulations that relate to the AMPS 
programme.32 Only obligat ions that are legislatively mandated are subject to AMPS penalties. Unless 
otherwise indicated, penalties are normally applied by a CBSA officer.33 The AMPS is a graduated 
system of monetary penalties, with higher penalties assessed for repetition of the sa me infraction. 
Under the AMPS, the maximum penalty amount for a single contravention is CAD 25,000.34 In the 
CBSA 's assessment of penalties, it takes into account factors such as the type of infraction, the 
frequency and severity of the infraction, and the compliance history of the client. From 2015 to 
2018, there were about 98,000 contraventions by importers, carriers and warehouse operators, 
representing a net penalty amount of over CAD 29.3 million.35 During the review period, the most 
frequent non -complia nce cases, which were subject to AMPS penalties, included: failure to provide 
pre-arrival information (ACI) to the CBSA by carriers, mainly failure to comply with mandatory 
ACI/eManifest requirements for highway carriers; failure to pay duties by importers ; and the 
unauthorized removal of goods from warehouses (Table 3.4).  
                                                
27 Type CW refers to warehouses operated by a consolidator, a deconsolidator, a bonded freight 
forwarder , or a customs broker . 
28 CBSA Customs Notice 17 -28, 13 September 2017.  
29 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/recourse -recours/impartial -
eng.html . The Enhanced Com plaint Mechanism (ECM) was introduced in 2011 in the recourse programme. The 
ECM provides commercial clients with a centralized system to submit complaints, comments, and compliments, 
as noted in the previous Review . The Recourse Directorate is responsible  for monitoring and reporting on ECM 
feedback.  
30 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/recourse -recours/decisions -
eng.html . 
31 CBSA , Master Penalty Doc ument , last revision , January 2019. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/amps/mpd -dmi-eng.html . 
32 Schedules I and II of the Designated Provisions (Customs) Re gulations (SOR/2002 -336), last 
amended on 11 March 2016 . 
33 CBSA, Master Penalty Document , last revision , January 2019. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/amps/mpd -dmi-eng.html . 
34 CBSA Memorandum D22 -1-1, 30 January 2015.  
35 Government of Canada, National Administrative Monetary Penalty (AMPS) Statistics . Viewed at: 
https://open.canada.ca/data/en/dataset/86d88f96 -2a6f-435f-82cd-1c427f7641ff . WT/TPR/S/389 • Canada  
 
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  Table 3.4 AMPS by category and client type, 2015 -18  
Category by client type  Net penalty 
amount  
(CAD 1,000)  % of total 
penalty 
amount  
Total   29,319  100.0  
 Carrier   17,263  58.9 
   Advance Commercial Information (ACI)   10,674  36.4 
         C378 Failed to submit the prescribed pre -load/pre -arrival information   9,331  31.8 
   Report of Goods and Conveyances   3,891  13.3 
         C023 Failed to report conveyances inbound and/or upon arrival   2,854  9.7 
 Importer   10,382  35.4 
   Corrections  – Trade Data   3,826  13.1 
         C352 Failed to pay duties   1,925  6.6 
   Release   1,648  5.6 
C360 Failed to account, or failed to provide interim accounting, for imported 
goods at time of the release request   1,192  4.1 
   Information   1,244  4.2 
         C005 Provided incorrect or incomplete information to an officer   792  2.7 
   Customs Self -Assessment (CSA)   818  2.8 
C246 Failed to account for goods in the prescribed manner or within the 
prescribed time   815  2.8 
 Warehouse Operator   1,673  5.7 
    Movement and Storage of Goods   1,253  4.3 
C033 Removed goods not released from a CBSA office or sufferance 
warehouse, without CBSA authorization.   1,253  4.3 
Source:  WTO Secretariat 's calculations, based on data received from the Government of Canada; and 
National Administrative Monetary Penalty (AMPS) Statistics. Viewed at: 
https://open.canada.ca/data/en/dataset/86d88f96 -2a6f-435f-82cd-1c427f7641ff . 
3.12.   Upon receipt of the CBSA 's notice of penalty assessment, a commercial client may ask fo r a 
review of the CBSA 's decisions and has 90 days to request a correction or a redress process through 
a ministerial review.36 The payment of the penalty is deferred until a decision is rendered. 
Cancellation or amendment of an enforcement action or trade decision will only occur if the review 
determines the action taken was incorrect, in law or in the application of policy. Officials within the 
CBSA 's Recourse Directorate cannot cancel or amend enforcement actions or trade decisions for lack 
of intent to c ontravene the law. Between 2015 and 2018 , 1,409 corrections and 3,415 redress 
actions were completed; both corrections and redress actions imply ministerial reviews and require 
a decision by the Minister. In the case of redress actions, the Minister makes the decision directly, 
while for corrections the decision can be delegated to other CBSA personnel.  
3.1.1.1   Trade facilitation  
3.13.   Canada ratified the WTO Trade Facilitation Agreement (TFA) on 16 December 2016. Since the 
entry into force of the TFA on 22 February 2017 , Canada, as a developed WTO Member, has been 
bound by all commitments in the Agreement. Canada provided its notification on import, export and 
transit procedures (Art. 1.4), TFA enquiry points (Art. 1.4), the operation of its single window 
(Art. 10.4.3), measures on the use of customs brokers (Art. 10.6.2), and the contact points for the 
exchange of information (Art. 12.2 .2) on 3 July 2017.37 Although there is no notification related to 
the formation of a National Committee on Trade Facilitation (Article 23 .2) as yet, the Border 
Commercial Consultative Committees (BCCCs) provide for formal consultations between CBSA 
officials and private -sector stakeholders to discuss border -related policies, operation programmes, 
and administrative procedures with respect t o Canada 's commercial trade.38  
3.14.   Canada has been a strong supporter of the WTO 's work on trade facilitation and is a donor to 
the Trade Facilitation Agreement Facility (TFAF).39 Canada has engaged in 12 programmes in 
                                                
36 CBSA Memorandum D22 -1-1, 30 January 2015. In a request for a Ministerial Review, the Minister of 
Public Safety, through the Minister's delegated authorities, is asked to review and decide on the 
appropriateness of the enforcement action or trade decision. The review is conducted by an impartial official 
within the CBSA's Recourse Directorate. CBSA online information. Viewed at:  https://www.cbsa -
asfc.gc.ca/recourse -recours/ministerial -ministeriel -eng.html . 
37 WTO document G/TFA/N/CAN/1, 3 July 2017.   
38 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/agency -agence/consult/bccc -
ccacf/menu -eng.html . 
39 WTO online information. Viewed at: https://www.tfada tabase.org/ . WT/TPR/S/389 • Canada  
 
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  accordance with Article 22 of the TFA; its  financial contribution to the TFAF in 2015 and 2016 was 
CAD 35.8 million (disbursed).40  
3.1.1.2   Customs valuation  
3.15.   Customs valuation rules are based on the Customs Act (Sections 44 to 56)41, the Valuation 
for Duty Regulations42, the Direct Shipment of Goods Regulati ons43, the Currency Exchange for 
Customs Valuation Regulations44, and the Memoranda D -13 series.45 There were no substantial 
changes to the Act or Regulations since the previous Review.  
3.16.   Canada 's customs valuation is determined in accordance with the WTO Agree ment on 
Customs Valuation. The transaction value method is the primary method of valuation; value for duty 
is based on the price paid or payable for imported goods.46 If this method cannot be used, the 
Customs Act prescribes a hierarchy of alternative valua tion methods.47 Moreover, the CBSA has 
provided interpretations of specific valuation challenges for certain categories of goods, in order to 
determine the value for duty, inter alia , used goods, used automobiles, certain information -based 
products, and pro motional material.48 The value for duty of all imported goods must be declared in 
Canadian dollars at the Bank of Canada rate prevailing on the date of direct shipment of the goods 
to Canada.49  
3.17.   Designated CBSA officers review the customs value of imported goods, generally through a 
risk-based post -importation verification of importer 's records. In accordance with the Customs Act 
(Sections 58 -70), CBSA officers may re -determine or further re -determine the origin, the tariff 
classification and/or the value fo r duty of the imported goods at any time within four years after the 
date of the initial determination. Customs officers must notify importers of their decisions and the 
rationale for them.50 Importers may request a re -determination or a further re -determin ation of the 
customs value within 90 days of the notification of a decision by the CBSA, although this time -limit 
may be extended under certain circumstances.51 Decisions of the CBSA may be appealed to the 
Canadian International Trade Tribunal (CITT within 90 days, and may be appealed further to the 
Federal Court of Appeal, and beyond that, the Supreme Court of Canada.52 Of the appeals filed and 
decided by the CITT in the period 2015 -18, two related to value for duty53; one value -for-duty 
related decision was decided by the Federal Court of Appeal regarding an appeal filed prior to the 
period of review.54 
3.1.2   Rules of origin  
3.18.   Canada maintains both preferential and non -preferential rules of origin. Canada 's 
non-preferential rules of origin are in place to, inter alia , distinguish most -favoured -nation (MFN) 
imports from those under the General Tariff. There were no changes in the MFN rules of origin since 
the previous Review. For goods to qualify for MFN tariff treatment, at least 50% of their production 
cost must be in curred by the industry of one or more MFN beneficiaries (including Canada). In 
                                                
40 WTO documents G/TFA/N/Can/2, 3 July 2017; and G/TFA/N/CAN/3, 15 August 2018.  
41 Customs Act  last amended on 21 June 2018.  
42 Valuation for Duty Regulations ( SOR/86 -792). 
43 Direct Shipment of Goods Regulations ( SOR/86 -876). 
44 Currency Exchange for Customs Valuation Regulations ( SOR/85 -900). 
45 CBSA, D -13 Memoranda series. Viewed at: https://www.cbsa -asfc.gc.ca/publications/dm -md/d13 -
eng.html . 
46 Customs Act, Section 48 (4); and Memorandum D13 -4-3, 7 January 2014.  
47 Other methods include: the transaction value of identical goods method (Section 49); the transaction 
value of similar goods method (Section 50); the deductive value method (Section 51); the co mputed value 
method (Section 52); and the residual basis of appraisal method (Section 53). Memorandum D13 -3-1 provides 
methods of determining value for duty.  
48 CBSA, Memoranda D -13 series. Viewed at: https://www.cbsa -asfc.gc.ca/publications/dm -md/d13 -
eng.html . 
49 Memorandum D13 -2-3, 25 February 2014.  
50 Customs Act,  Part III, Section 59 . 
51 Customs Act,  Part III, Sections 60 and 60.1 . 
52 Customs Act,  Part III, Section 67 . 
53 CITT AP -2014-012 (J. Lamb v. President of the Canada Border Services Agency and CITT AP -2017-
011 (J. Fersch v. President of the Canada Border Services Agency).  
54 The CITT decision was upheld , and the appeal was dismissed. Viewed at : https://decisions.fca -
caf.gc.ca/fca -caf/decisions/en/item/108541/index.do?r=AAAAAQAOdmFsdWUgZm9yIGR1dHkB . WT/TPR/S/389 • Canada  
 
- 52 - 
 
  addition, goods must be finished in a country receiving MFN treatment, in the form in which they 
are to be imported into Canada.55 A separate rule, which applies to only a limite d number of imported 
goods, exists for marking purposes. A commercial invoice, a Canada Customs Invoice, or any other 
documentation indicating the country of origin may serve as proof of origin of the goods. There was 
no change in Canada 's non -preferential  rules of origin in the period under review.56  
3.19.   Canada 's FTAs, its unilateral preference programmes (General Preferential Tariff (GPT), Least 
Developed Country Tariff (LDCT), and Commonwealth Caribbean Countries Tariff (CCCT)), and its 
special trading relat ions with Australia and New Zealand all contain preferential rules of origin of 
varying complexity (Table 3.5). In general, the rules stipulate, as stand alone or in 
combination:  (i) wholly obtained criteria for primary products; (ii) a change in the HS ta riff heading 
for goods that have undergone processing (tariff -shift rule); (iii) regional value content methods 
that may specify minimum levels of regional content or maximum values of non -originating inputs 
in the value of the final goods; or (iv) specifi c processing requirements that must be fulfilled for a 
product to be considered an originating good. Canada 's FTAs contain agreement -specific 
requirements for the certificates (or statements) of origin to be provided upon request by the 
importer claiming p referential tariff treatment. Canada 's unilateral preference schemes do not 
require certificates of origin to be stamped or signed by any authority in the country of origin.  
Table 3.5 Overview of rules of ori gin criteria, 2018  
Preferential programme 
or partner  Brief overview  
General Preferential Tariff 
(GPT)  The value of non -originating materials must not exceed 40% of the ex -factory price 
(SOR/2013 -165).  
MFN Treatment  At least 50% of their production cost must be incurred by the industry of one or 
more MFN beneficiaries (including Canada) (SOR/98 -33). 
Least Developed Country 
Tariff (LDCT)  The value of non -originating materials must not exceed 80% of the ex -factory price 
(75% threshold for apparel) (SOR/201 3-165).  
Commonwealth Caribbean 
Countries Tariff (CCCT)  Wholly obtained or produced, or at least 60% of the ex -factory price of the goods 
as packed for shipment to Canada must originate in one or more beneficiary 
countries or Canada. The 60% qualifying con tent may be cumulated from various 
beneficiary countries or Canada. The goods must be finished in the beneficiary 
country in the form in which they were imported into Canada (SOR/98 -36). 
Australia Tariff (AUT)  No less than 50% of the cost of production o f the goods must be incurred in 
Australia or Canada or both. The cost of production includes: (a) materials 
(exclusive of duties and taxes); (b) labour; and (c) factory overheads. The goods 
must be finished in Australia in the form in which they were impor ted into Canada 
(SOR/98 -35). 
New Zealand Tariff (NZT)  At least 50% of the cost of production of the goods must be incurred in New 
Zealand or Canada or both. The cost of production includes: (a) materials (exclusive 
of duties and taxes); (b) labour; and (c ) factory overheads. The goods must be 
finished in New Zealand in the form in which they were imported into Canada  
(SOR/98 -35). 
CETA Product -specific rules of origin based on tariff shift and, in some cases, contain a 
process, value, weight or volume requ irement.  NAFTA  
Chile 
Colombia  
Costa Rica  
Panama  
Peru 
Israel  
European Free Trade 
Association (EFTA) (Iceland, 
                                                
55 The official version of the M FN Tariff Rules of Origin Regulations may be found on the Department of 
Justice website . Viewed  at: http://laws -lois.justice.gc.ca/eng/regulations/SOR -98-33/page -1.html .  
56 Memorandum D11 -4-3 of 4 April 2013 sets outs the Rules of Origin Respecting the Most -Favoured -
Nation Tariff. CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/publications/dm -md/d11/ d11-
4-3-eng.html . WT/TPR/S/389 • Canada  
 
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  Preferential programme 
or partner  Brief overview  
Liechtenstein, Norway and 
Switzerland)  
Jordan  
Honduras  
Republic of Korea  
Comprehensive and 
Progressive Trans -Pacific 
Partnership   
CUSMA  Product -specific rules of origin based on tariff shift and, in some cases, contain a 
process, value, weight or volume requirement. The rules of origin for passenger 
vehicles, light trucks and heavy trucks include a requirement that 70% of the steel 
and aluminium purchased by the vehicle producer be originating, and that a 
percentage of the value of the vehicle be produced by workers earning at least 
USD 16 per hour.  
Source:  Based on Government of Canada online information. Viewed at: http://www.international.gc.ca/ . 
3.20.   Origin under the NAFTA is determined according to the rules of origin specified in Cha pter IV 
of the Agreement. In general, a good that incorporates non -originating materials is deemed to 
originate in the NAFTA territory if each of these components undergoes an applicable change in tariff 
classification, specified for each good in Annex 401 . Canada 's reliance on the United States as an 
important supplier of inputs as well as a key export market implies that the NAFTA rules of origin 
have become an important point of reference for the agreed rules of origin in Canada 's other FTAs.57 
In many in stances, the FTAs that Canada has concluded since NAFTA (1994) contain less stringent 
origin rules than those contained in NAFTA, either through the acceptance of lower regional value 
content or relaxation of the tariff shift or special processing rules.58 The regional value content 
methods have also been modified in some instances by the "focused value " method, which uses 
dedicated lists of inputs (rather than all inputs) when calculating the regional value content.  
3.21.   Under the CUSMA, as is the case under th e NAFTA, origin is conferred to: (i) wholly produced 
goods; (ii) goods produced entirely in the territory of one or more of the Parties using non -originating 
materials, provided the good satisfies all applicable requirements of Annex 4 -B (Product -Specific 
Rules of Origin); (iii) goods produced entirely in the territory of one or more of the Parties exclusively 
from originating materials; or (iv) (except for a good provided for in Chapters 61 to 63 of the 
Harmonized System (HS) ) produced entirely in the terr itory of one or more of the Parties; and one  or 
more of the non -originating materials provided for as parts under the HS used in the production of 
the good cannot satisfy the requirements set out in Annex 4 -B (Product -Specific Rules of Origin) 
because both  the good and its materials are classified in the same subheading, or in a heading that 
is not further subdivided into subheadings, or the good was imported into the territory of a Party in 
an unassembled or disassembled form but was classified as an assem bled good, and the regional 
value content of the good (determined including accumulation), is not less than 60% if the 
transaction value method is used, or not less than 50% if the net cost method is used.59  
3.22.   Like the NAFTA, the CUSMA has stricter rules of origin for the automotive sector. The regional 
content threshold is calculated on a net -cost basis only; and the threshold for passenger vehicles 
and light trucks will increase from 62.5% to 75.0% over three years from the date the agreement 
enters into force. For heavy trucks, the threshold increases from 60% to 70% over seven years. In 
addition, vehicle producers must demonstrate that 70% of the steel and aluminium they purchase 
for use in production is orig inating, and that at least 40% (45% for light or heavy trucks) of the 
content in the vehicle was produced by workers earning at least USD 16 per hour. The CUSMA also 
has stricter rules of origin for vehicles parts, including a phased -in 75% net cost requir ement for 
                                                
57 Moroz, Andrew (Sandy), 2016, Navigating the Maze: Canada, Rules of Origin and the Trans -Pacific 
Partnership (and Two Tales of Supply  Chains , in Tapp, Stephen, Air Van Assche and Robert Wolfe (editors), The 
Art of the State: Volume VI: R edesigning Canadian Trade Policies for New Global Realities , Institute for 
Research on Public Policy, Montreal, Quebec . Viewed at: http://irpp.org/research -studies/aots6 -moroz/ . 
58 For example, m any of the FTAs contain a minimum 20% regional value content rule for passenger 
cars based on net costs, compared with the corresponding 62.5% threshold in NAFTA.   
59 USTR online information, USMCA, Chapter 4, Rules of Origin . Viewed at: 
https://ustr.gov/sites/default/files/files/agreements/FTA/USMCA/Text/04_Rules_of_Origin.pdf .  WT/TPR/S/389 • Canada  
 
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  core parts such as engines and transmissions, 70% for principal parts (e.g. fuel pumps, brakes, 
seats), and 65% for other parts (e.g. hoses, wiring sets).  
3.23.   Canada has implemented new FTAs with Ukraine (CUFTA ), Australia, Japan, Mexico, 
New Zealand , Singapore, Viet Nam (CPTPP), and the European Union (CETA) since its last TPR.  
3.24.   The rules of origin under the CETA are contained in the Protocol on rules of origin and origin 
procedures. General rules and rules for specific products are contained in Anne x 5 to the Agreement. 
In general terms, a product is originating in the Party where the last production took place if, in the 
territory of a Party or in the territory of both of the Parties, the product: (i) has been wholly obtained 
within the meaning; (ii ) has been produced exclusively from originating materials; or (iii) has 
undergone sufficient production. A product that originates in a Party is also 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 production carried out on a non -originating material in the other 
Party for the purposes of determining the originating status of a product.  
3.25.   Under the rules of origin of the CETA, the following products are c onsidered as wholly obtained 
in a Party: mineral products and other non -living natural resources extracted or taken from there; 
vegetables, plants, and plant products harvested or gathered there; live animals born and raised 
there; products obtained from l ive animals there; products from slaughtered animals born and raised 
there; products obtained by hunting, trapping, or fishing conducted there, but not beyond the outer 
limits of the Party 's territorial sea; products of aquaculture raised there; fish, shel lfish, and other 
marine life taken beyond the outer limits of their territorial seas by a Canadian/EU vessel; products 
made aboard factory ships; mineral products and other non -living natural resources, taken or 
extracted from the seabed, subsoil, or ocean  floor of: the exclusive economic zone of Canada or of 
the EU member States; raw materials recovered from used products collected there; and 
components recovered from used products collected there.  
3.26.   Annex 5 lists product -specific rules of origin for all pr oducts. This represents the minimum 
amount of production required on non -originating materials for the resulting product to achieve 
originating status. Like CUFTA and the CPTPP, the CETA has a 10% general tolerance level.60 For 
certain Canadian goods export ed to the European Union on a preferential basis (i.e. passenger cars, 
dog and cat food, sugar confectionary and chocolate preparations, certain processed foods, certain 
high sugar -containing products, certain fish and seafood, and certain textiles and app arel), less 
onerous rules of origin also apply within specified annual volume limits. Canada and the European 
Union have also agreed that U.S.-manufactured auto parts are to be treated as originating materials 
in motor vehicles for the purposes of the CETA , should the United States and the European Union 
conclude a bilateral FTA in the future.  
3.27.   Origin under the CPTPP is determined according to the rules of origin specified in Chapter  3 
of the agreement. In addition, specific provisions regarding textiles and  apparel are specified in 
Chapter 4 of the agreement. In general terms, a good is originating in the CPTPP territory if it:  (i) has 
been wholly obtained or produced entirely in the territory of one or more of the Parties; (ii) has been 
produced entirely in  the territory of one or more of the Parties, exclusively from originating 
materials; or (iii) has been produced entirely in the territory of one or more of the Parties using 
non-originating materials, provided the good satisfies all applicable requirement s of Annex 3 -D 
(Product -Specific Rules of Origin), Annex 4 -A (Textiles and Apparel Product -Specific Rules of Origin) 
or Appendix 1 to Annex 3 -D for certain vehicles and parts of vehicles. Like the CETA, a product that 
originates in a Party is also consider ed 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 production carried 
out on a non -originating material in the other Party to determine the originating status of a  product.   
3.28.   The product -specific rules of origin of the CPTPP require that non -originating materials 
undergo a change in tariff classification (tariff shift). For most industrial goods and certain 
agricultural goods, origin may also be obtained by demonstr ating that they contain a minimum level 
of regional content. The CPTPP also includes alternative rules of origin, under which certain parts 
                                                
60 Text of the Comprehensive Economic and Trade Agreement – Protocol on rules of origin and origin 
procedures . Government online information . Viewed at: http://international.gc.ca/trade -commerce/trade -
agreements -accords -commerciaux/agr -acc/ceta -aecg/text -texte/P1.aspx?lang=eng . WT/TPR/S/389 • Canada  
 
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  used in the production of passenger vehicles and light trucks may obtain originating status if specific 
processing r equirements are met.  
3.29.   The CUFTA 's rules of origin provisions are similar to those of the CETA.61 
3.30.   On 20 June 2017, Canada implemented changes to the rules of origin to allow least developed 
countries (LDCs) to use manufacturing inputs sourced from, and proces sed in, an expanded list of 
countries, in the production of t -shirts and certain trousers that qualify for duty -free importation into 
Canada. These changes ensure that the LDCT rules of origin more accurately reflect the sourcing 
patterns and manufacturing  capabilities of LDCs for these products.   
3.1.3   Tariffs  
3.1.3.1   Overview  
3.31.   Fiscal revenues from the collection of customs duties amounted to CAD 5.4 billion, or about 
2.1% of total tax revenues, in FY2017/18. Income tax accounted for most of the revenue (79.5%), 
followe d by the Goods and Services Tax (GST) (14.0%) and energy taxes (2.2%) (Chart 3.1).  
Chart 3.1 Tax revenue distribution, FY2017/18  
 
Source:  Annual Financial Report of the Government of Canada, Fiscal Year 201 7–18. 
3.32.   Import tariffs are established by Parliament in a federal statute, the Customs Tariff.62 
Parliament has provided some specific, limited authorities  to amend tariffs by order of the Governor 
in Council, based on the recommendation of the Minister of Fi nance, such as to reduce import tariffs 
on goods used in the manufacture in Canada of other goods.63 The Customs Tariff prescribes all tariff 
treatments, including preferential tariffs, special and emergency measures, and duty reliefs. In 
addition, some of subjects related to tariffs are supplemented by regulations, as well as by 
D-Memoranda, for more detailed information. Since the last Review, there were changes in the tariff 
nomenclature and in duty rates.  
3.1.3.2   Tariff Structure  
3.33.   Tariff treatments consist of th e General Tariff, the MFN tariff, and various preferential tariff 
treatments granted under bilateral or plurilateral agreements or unilateral concession schemes. A 
General Tariff rate of 35% (or the MFN rate, whichever is higher), in principle, is applied to trading 
                                                
61 The CUFTA Rules of Origin Regulations are set out in Memorandum D11 -5-14 of 30 August 2017. 
CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/publications/dm -md/d11/d11 -5-14-
eng.html .  
62 Customs Tariff (S.C: 1997, c. 36), last amended on 21 September 2017.  
63 Customs Tariff, Part 1 , Sections 13 -14; and Part 3 , Divisio n 1, Section 82.  
Income tax (incl. personal 
and corporate)
CAD 209.3bn. ( 79.5% )Goods and Services Tax 
(GST)
CAD 36.8bn. ( 14.0% )
Energy taxes
CAD 5.7bn. (2.2%)
Customs import duties
CAD 5.4bn.(2.1%)
Other excise taxes and 
duties
CAD 5.9bn.(2.2%)Chart 3.[Can]  Tax revenue distribution, 2017 -18
Source: Annual Financial Report of the Government of Canada Fiscal Year 2017 –2018.WT/TPR/S/389 • Canada  
 
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  partners who are non -WTO Members64; in practice, Canada grants MFN tariff treatment to all its 
trading partners, except the Democratic Republic of Korea.  
3.34.   The Canadian tariff for 2019 is based on the 2017 version of the Harmonized Commodity 
Descr iption and Coding System (HS) and comprises 6,986 tariff lines including in -quota lines, and 
6,827 tariff lines excluding in -quota tariff lines, at the eight -digit level. This total includes six tariff 
lines related to sugar (1701.91.10, 1701.99.10, 1702.9 0.21, 1702.90.61, 1702.90.70, and 
1702.90.81) which are only applicable for the Canada -Peru and Canada -Honduras FTAs.65 For the 
tariff analysis, in -quota tariff lines are not taken into account in tariff calculations.66 Consolidated 
versions of the Customs T ariff are issued regularly by the Canada Border Services Agency (CBSA), 
containing information on applied MFN and preferential duties.67 Canada continues to submit its 
customs tariff and trade data regularly to the WTO Integrated Database (IDB).  
3.35.   Some 96.3% of all tariff lines carry ad valorem  duties, but Canada continues to maintain 
252 tariff lines, equivalent to 3.7% of total tariff lines, subject to non -ad valorem  duties; these 
mainly consist of mixed or specific duties. Unlike ad valorem  tariffs, the level of protection by means 
of specific duties is not evident; estimating the ad valorem  equivalents (AVEs) allows the actual 
protection of specific duties to be assessed.68 The AVEs used in this Section were calculated by the 
Secretariat as the ra tio of specific duties to import unit values, estimated using the ratio of import 
values to import quantities in 2017 (at the eight -digit level)69: the estimated AVEs ranged from 0.2% 
to 532.2%70, with more than one quarter of total non -ad valorem  tariff lin es above 100%. In 201 9, 
non-ad valorem  rates were mainly concentrated in sectors such as dairy products (HS 04), beverages 
and spirits (HS 22), edible vegetables (HS 07), preparations of cereals (HS 19), and meat (HS 02).  
3.36.   Overall, the simple average of the  2019 applied MFN tariff rate, including AVEs, is estimated 
at 6.1%, slightly up from 6.0% in 2014, mainly due to changes in the tariff structure during the 
review period (i.e. reductions in the number of tariff lines from 7,251 in 2014 to 6,827 in 2019) 
(Table 3.6). The coefficient of variation of 4.7 indicates high tariff dispersion, with tariff rates ranging 
from 0% to 532.2% (Table 3.8).71 The high dispersion reflects the significant amount of tariff lines 
that are duty -free (70.4%), the use of tariff ra te quotas that have higher rates of duty for 
over-access commitments, and the wide range of the estimated AVEs of non -ad valorem  duties .  
Table 3.6 Structure of MFN tariffs, 2014 and 2019  
  MFN applied  Final  
2014  2019  bounda 
Bound tariff lines (% of all tariff lines)  n.a. n.a. 99.7 
Simple average rate  6.0 6.1 7.8 
   WTO agricultural products  22.5 21.8 22.4 
   WTO non -agricultural products  2.4 2.5 5.2 
   Agriculture, hunting, forestry and fishing (ISIC 1)  7.9 7.3 7.1 
   Mining and quarrying (ISIC 2)  0.2 0.2 1.6 
   Manufacturing (ISIC 3)  6.0 6.0 7.9 
Duty-free tariff lines (% of all tariff lines)  67.0 70.4 33.9 
Simple average of dutiable lines only  18.3 20.5 11.8 
Tariff quotas, out -of-quota (% of all tariff lines)  2.6 2.8 2.0 
                                                
64 Customs Tariff, Part 2, Division 3, Section 29.  
65 WTO documents WT/REG270/1, 19 July 2010; and WT/REG364/1, 18 April 2016, respectively.  
66 Refers to products for which an in -quota tariff rate different from the MFN (out -of-quota) rate i s 
applied, for which a separate tariff heading for the in -quota rate has been created.  
67 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/trade -commerce/ta riff-tarif/menu -
eng.html . 
68 However, there are limits to the accuracy of estimated AVEs , as they are affected by many factors, 
including the base period  chosen for the estimation , variations in import prices through fluctuations of world 
market prices and/or exchange rates, and the source of imports (i.e. whether a tariff concession or exemption 
is taken into account), resulting in a wide variation in AVEs without any change in customs duties . 
69 Using Canada 's data submission to the WTO Integrated Datab ase. 
70 The highest rate of 532.2% is the AVE of the over -access commitment duty rate applicable to dried 
egg albumin (3502.11.20) (CAD 6.12/kg). The within -access commitment rate of duty is 8.5% ( ad valorem ). 
71 The highest rate of 532.2% is the AVE of the over -access commitment duty rate applicable to dried 
egg albumin (3502.11.20) (CAD 6.12/kg). The within -access commitment rate of duty is 8.5% ( ad valorem ). WT/TPR/S/389 • Canada  
 
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    MFN applied  Final  
2014  2019  bounda 
Non-ad valorem  tariffs (% of all tariff lines)  3.9 3.7 4.9 
Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  0.9 1.0 1.2 
Domestic tariff "peaks " (% of all tariff lines)b 2.2 2.3 1.5 
International tariff "peaks " (% of all tariff lines)c 7.1 7.5 6.2 
Overall standard deviation  28.6 28.7 25.5 
Coefficient of variation  4.8 4.7 3.3 
Nuisance applied rates (% of all tariff lines)d 4.0 0.7 2.0 
Total number of tariff lines  7,251  6,827  8,211  
n.a. Not applicable.  
a Calculations for final bound rates (based on HS 2007) are taken from the CTS database.  
Final bound rates are applied for tariff codes under Expansion of the ITA, although some tariff codes 
are still under the implementation period up to 2019.  
b Domestic ta riff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  The 2014 and 2019 tariff schedules are based on the HS12 and HS17 nomenclatures, respectively.  
Calculations are based on the national tariff at an 8 -digit level, excluding in -quota rates and 
including ad valorem  equivalents (AVEs).  
 AVEs for 2014 were estimated based o n 2013 import data, and for the 2019 and the final bound 
tariffs based on 2017 import data at the national tariff line level provided by the Canadian 
authorities.  
Source:  WTO Secretariat calculations, based on CBSA online information. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; the WTO IDB; and the CTS database.  
3.37.   In 2019, about 90% of all tariff lines carried rates of 10% or  below (Chart 3.2). The proportion 
of duty -free lines on an MFN basis in 2019 (70.4%) increased by about 3.4 percentage points from 
2014 (67.0%), mainly reflecting the elimination of import duties on products under the expansion 
of the Information Technolo gy Agreement (ITA)72, as well as the unilateral tariff elimination on a 
broad range of products classified as ingredients.73 With respect to the latter, the Government 
eliminated tariffs on certain imported ingredients used in the agri -food processing indust ry on 
16 January 2017, aimed at improving the competitiveness of Canadian agri -food processors. The 
measure covers some 234 tariff lines (at the eight -digit level), of which 23 are subject to in -quota 
tariff rates (Table 3.7). Tariff eliminations, both thr ough the ITA and decided unilaterally, led not 
only to a larger proportion of duty -free lines in 2019 relative to 2014 (Chart  3.2), but also to a 
significant reduction in the proportion of nuisance rates (greater than zero, but less than or equal to 
2%), f rom 4.0% of the total in 2014, to 0.7% in 2019. The authorities noted that, including the 
preferences granted, some 88% of all imports entered Canada duty -free in 2018.  
Table 3.7 Ingredient items covered by th e unilateral tariff elimination  
Preparations of vegetables, fruit, nuts or  
     other parts of plants (86)  
Edible vegetables (37)  
Cereal grains, starches, malt (30)  
Animal or vegetable fats and oils (19)  
Spices (13)  
Edible fruit (11)  
Miscellaneous edible preparations (e.g. yeasts) (10)  Food preparations, malt extract, couscous (6)  
Wheat and barley (5)  
Undenatured ethyl alcohol (5)  
Flours and meals of oil seeds or oleaginous fruits (3)  
Albumins, peptones and their derivatives, gelatine (3)  
Extracts and juic es of meat, fish or crustaceans (2)  
Cocoa and cocoa preparations (2)  
Essential oils (e.g. of peppermint) (2)  
Note:  Figures in parentheses refer to the number of tariff lines at the 8 -digit tariff level (HS 2012 
nomenclature basis).  
Source:  Compiled by WTO Secretariat, based on WTO document G/MA/W/130 , 21 April 2017 .  
                                                
72 WTO document WT/Le t/1205, 25 October 2016 . Schedule  V is effective as of 13 October 2016.  
73 WTO document G/MA/W/130, 21 April 2017 . WT/TPR/S/389 • Canada  
 
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  Chart 3.2 Breakdown of applied MFN tariffs, 2014 and 2019  
(% of total tariff lines)  
 
Note:  Calculations exclude in -quota rates and include A VEs for non -ad valorem  duties where it was 
possible to estimate them. In case of unavailability, the ad valorem  part was used for compound and 
mixed rates. They do not add up to 100% due to the unavailability of AVEs for some tariff lines 
(representing 0.2 % of total tariff lines).   
Source:  WTO Secretariat calculations, based on CBSA online information. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; and the WTO IDB.  
3.38.   Tariffs applied on agricultural products remain considerably higher than on non -agricultural 
goods. In 2019, the average applied tariff rate on agricultural products (WTO definition) is 21.8%, 
while the that on non -agricultural products (WTO definition) is  2.5% (Table 3.8). Within agriculture, 
animals and animal products (47.2%), dairy products (238.7%), and cereals (24.0%) are the 
product groups with higher average import duties. Among non -agriculture product groups, clothing 
has the highest average tariff  rate (16.2%). Some agricultural product groups, such as coffee, tea, 
and cocoa and cocoa preparations, oil seeds and fats, beverages and tobacco, and other agricultural 
products, display high coefficients of variation, implying a larger tariff range withi n these product 
groups.  
Table 3.8 Applied MFN tariff summary, 2019  
 
Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty-
free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  6,827  6.1 0-532.2  4.7 70.4 3.7 
HS 01 -24 1,492  18.0 0-403.1  3.2 57.3 16.7 
HS 25 -97 5,335  2.8 0-532.2  3.6 74.0 0.1 
By WTO category        
WTO agricultural products  1,266  21.8 0-532.2  2.9 54.8 19.9 
Animals and products thereof  177 47.2 0-403.1  1.9 49.7 19.2 
Dairy products  38 238.7  0.7-313.5  0.3 0.0 97.4 
Fruit, vegetables, and plants  345 3.3 0-17 1.5 63.2 14.2 
Coffee, tea, cocoa, and cocoa preparations  31 18.1 0-265 3.6 77.4 6.5 
Cereals and preparations  222 24.0 0-277 2.4 32.4 30.6 
Oil seeds, fats, oils and their products  94 5.2 0-218 4.5 71.3 2.1 
Sugars and confectionary  43 4.0 0-12.5 1.0 20.9 34.9 
Beverages, spirits and tobacco  150 4.5 0-256 4.7 50.7 26.0 
Cotton  5 0.0 0.0 0.0 100.0  0.0 
Other agricultural products, n.e.s.  161 9.3 0-532.2  5.6 83.9 3.7 
WTO non -agricultural products  5,561  2.5 0-25 2.0 73.9 0.0 
Fish and fishery products  299 1.1 0-11 1.9 75.6 0.0 
Minerals and metals  1,030  1.3 0-15.5 2.1 79.9 0.0 
Chemicals and photographic supplies  1,002  0.9 0-15.5 2.5 85.7 0.0 
Wood, pulp, paper and furniture  323 1.5 0-18 2.3 81.1 0.0 
0%10%20%30%40%50%60%70%80%
Duty free >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%2014 2019
WTO Secretariat calculations, based on CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/trade -
commerce/tariff -tarif/2019/menu -eng.html [January 2019]; and WTO IDB.(% of total tariff lines)Chart 3.1  Breakdown of applied MFN tariff rates, 2014 and 2019
Source:Note: Calculations exclude in -quota rates and include AVEs for non -ad valorem duties where it was possible to estiamte them.  In 
case of unavailability, the ad valorem part is used for compound and mixed rates.  They do not add to 100% due to  
unavailability of AVEs for some  tariff lines (representing 0.2% of total tariff lines).  WT/TPR/S/389 • Canada  
 
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Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty-
free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Textiles  676 3.0 0-18 2.0 77.7 0.0 
Clothing  254 16.2 0-18 0.3 6.7 0.0 
Leather, rubber, footwear and travel goods  216 5.4 0-20 1.3 57.4 0.0 
Non-electric machinery  626 0.6 0-9 3.4 91.7 0.0 
Electric machinery  357 1.2 0-9 2.2 81.8 0.0 
Transport equipment  241 5.5 0-25 1.2 41.1 0.0 
Non-agricultural products, n.e.s.  524 2.8 0-15.5 1.3 57.3 0.0 
Petroleum  13 1.2 0-5 1.8 76.9 0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and fishing  516 7.3 0-292.5  4.6 77.3 11.6 
ISIC 2 - Mining and quarrying  98 0.2 0-12.5 6.5 96.9 0.0 
ISIC 3 - Manufacturing  6,212  6.0 0-532.2  4.7 69.4 3.1 
By stage of processing        
First stage of processing  894 4.6 0-292.5  5.8 86.4 7.2 
Semi-processed products  1,893  0.6 0-270 12.4 94.8 1.5 
Fully processed products  4,040  8.9 0-532.2  3.9 55.4 4.0 
a Coefficient of variation.  
b International Standard Industrial Classification (ISIC) (Rev.2). Electricity, gas and water are excluded 
(1 tariff line).  
Note:  Calculations for averages are based on the national tariff line level (8 -digit level), excluding in -quota rates. 
The tariff schedule is based on HS  2017. Ad valorem  equivalents (AVEs) were estimated based on 2017 
import data at the 8 -digit tariff line level based on information received from the authorities of Canada. In 
case of unavailability, the ad valorem  part was used for compound and mixed rates.  
Source:  WTO Se cretariat calculations, based on CBSA online information. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; and the WTO IDB.  
3.1.3.3   Tariff quotas  
3.39.   Agricultural goods included on the Import Control List are grouped into different categories, 
each with an established import access quantity (or quota). Under Canada 's tariff rate quota (TRQ) 
system, agricultural goods are classified as "within -access commitment " (i.e. limited quantity) tariff 
items or "over-access commitment " tariff items . Imports within the quota are subject to the lower 
rates of duty of the within -access commitment tariff items, and imports over the quota are classified 
under  the higher rates of duty of the over -access commitment tariff items (i.e. the MFN rate, or a 
higher preferential rate). Canada maintains TRQs for agricultural product imports entering under the 
MFN regime, and for imports from certain countries pursuant t o preferential agreements.  
3.40.   Control of imports into TRQ within -access commitments is managed in one of two ways: 
through permits issued by Global Affairs Canada, based on prior import allocations to importers, or 
on a first -come, first -serviced basis admini strated by the CBSA.74 The procedure for obtaining an 
import permit and tariff quota allocations varies according to the product and the origin of the 
imports (Section  4.1). In addition, TRQs for some agricultural categories are determined on a 
marketing -year basis (i.e. 1 August to 31 July for certain dairy product TRQs established under the 
WTO and the CPTPP, and 1 May to 30 April for the turkey and turkey products TRQ s established 
under the CPTPP) while, for other agriculture products, TRQs are fixed on a  calendar -year basis. If 
specific circumstances arise that require the importation of agricultural goods in excess of the 
volumes set out in Canada 's TRQ commitments, Canada may allow supplemental imports to meet 
these needs (i.e. domestic market shortage) . 
3.41.   Canada 's 2019 Customs Tariff lists TRQs applicable to agricultural products classified under 
159 tariff lines (2.3% of all tariff lines), including dairy products (e.g. cheese and milk), poultry and 
egg products, beef and veal, and certain wheat and barl ey products. Canada applies in -quota rates 
for products otherwise subject to MFN rates in two ways: through Canada 's WTO TRQs, or through 
a specific bilateral TRQ contained in a preferential trade agreement. The tariff treatment granted to 
imports within T RQs varies, depending on the agreement and the trading partner. For about one 
third of preferential tariff beneficiaries, including the United States, Chile, and LDCs, Canada grants 
duty-free treatment for all in -quota tariff lines. However, few in -quota p referential tariff rates are 
provided under the agreement with Israel, or to GSP beneficiaries. Accordingly, agricultural goods 
                                                
74 CBSA, Memorandum D10 -18-1, 12 August 2016.  WT/TPR/S/389 • Canada  
 
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  from Israel are subject to an in -quota average rate of 2.4%, which is just slightly lower than the 
2.5% MFN in -quota tariff rate  (Table  3.9). Under certain bilateral trade agreements, such as the 
CETA with the European Union, Canada opened specific bilateral TRQs for cheese. Under the CETA, 
Canada committed to transferring to the European Union reserve 800 tonnes from its non -EU re serve 
within its 20,411 tonne WTO TRQ for cheese.  
Table 3.9 In-quota "within -access commitment " tariff lines, by tariff regime, 2019  
  Number of in -quota tariff lines 
subject to "within -access 
commitment " Simple 
average 
tariff 
rates  Maximum 
tariff 
rates    MFN rates  Preferential 
rates  
(duty -free)    Duty -free Dutiable 
rates  
MFN 42 117 0 2.5 8.5 
NAFTA     
   
  
Mexico  42 78 39 1.6 8.5 
United States  42 0 117 0 0 
EFTA     
   
  
Iceland  42 70 47 1.3 8.5 
Norway  42 61 56 1.1 8.5 
Switzerland  42 68 49 1.3 8.5 
Other reciprocal treatments     
   
  
Chile 42 0 117 0 0 
Colombia  42 6 111 0.2 7.5 
Costa Rica  42 52 65 1.0 8.5 
CPTPP  42 0 117 0 0 
European Union  42 0 117 0 0 
Hondurasb 42 68 49 (1)a 1.4 8.5 
Israel  42 111 6 2.4 8.5 
Jordan  42 0 117 0 0 
Korea, Rep. of  42 85 32 1.9 8.5 
Panama  42 19 98 0.6 8.5 
Perub 42 0 117 0 0 
Ukraine  42 0 117 0 0 
Non-reciprocal treatments     
   
  
Australia  42 105 12 (2)a 2.4 8.5 
New Zealand  42 90 27 (2)a 2.4 8.5 
Commonwealth Caribbean Countries (CCCT  42 0 117 0 0 
Generalized Preferential Tariff (GPT)  42 98 19 (15)a 2.3 8.5 
LDC tariff (LDCT)  42 0 117 0 0 
Note:  The tariff schedule splits tariff lines, to create separate lines for in -quota rates (159 at the 8-digit tariff line 
level). The number of in -quota lines does not necessarily coincide with the corresponding out -of-quota 
lines; in some cases, two out -of-quota lines correspond to one in -quota line. Calculations are based on the 
national 8 -digit tariff l ine level. The figures correspond to numbers of in -quota tariff lines.  
a Figures in parentheses refer to a number of tariff lines which are subject to reduced preferential tariff rates 
(i.e. not duty -free rate) out of the total number of preferential rates  applied.  
b Six tariff lines (1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70, and 1702.90.81) for sugar 
quotas are not taken into account in the calculations.   
Source:  WTO Secretariat calculations, based on CBSA online information. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; and the WTO IDB.  
3.1.3.4   WTO bindings  
3.42.   Canada 's latest certified schedule of tariff concessions is in HS 2007.75 The authorities are 
currently in the process of preparing the HS 2012 transposition of the schedule of commitments, for 
the purpose of multilateral review and certification. Canada is covere d by the Waiver Decision of 
30 November 2017 regarding the application of HS 2012, and by the Waiver Decision of 
12 December  2018 for the application of HS 2017, in order to implement the nomenclature changes 
needed in the Customs Tariff.76 
                                                
75 The certification is contained in WTO document  WT/Let/ 938, 20 March 2014.  
76 WTO documents WT/L/1028, 1 December 2017 and WT/L/10 51, 13 December 2018.  WT/TPR/S/389 • Canada  
 
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  3.43.   Canada has bound 99.7% of its tariff lines and other duties and charges (ODCs). Its bound 
duties consist of ad valorem  rates ranging from 0% to 532.2%, which is the AVE of the over -access 
commitment duty rate of 612.01¢/kg applicable to dried egg albumin (3502.11.20).77 As in the case 
of Canada 's applied tariff schedule, ad valorem  tariff rates apply to most bound tariff lines, except 
for agricultural products such as dairy, prepared food, wine, meats, and vegetables, subject to 
specific and mixed bound tariffs. The simple a verage bound tariff rate is 7.8%. The simple average 
bound rate on agricultural products (WTO definition) is 22.4%, whereas that on non -agricultural 
products is 5.2%. The 23 u nbound tariff lines at the HS eight -digit level cover products such as gas, 
petro leum, electrical energy, and vessels (e.g. tankers, and dredgers).  Except for one tariff line 
(HS 22071090) 78, all ODCs are bound at zero.  
3.44.   Although applied rates are lower than bound rates in almost all cases, applied MFN rates 
exceed the corresponding bou nd rates for eight bound lines, of which five are due to rounding, two to 
the nature of AVE calculations, and one to a possible error in either the bound or the applied 
schedules (Table 3.10).  
Table 3.10 Tariff lines where applied rates exceed bound rates , 2019  
HS code  Product description  2019 applied MFN tariffs  Bound tariffs  
As reported  AVEs  As reported  AVEs  
16023991  Other prepared or preserved meat 
of ducks, geese or guinea fowl, in 
cans or glass jars 9.5%   
8% but not less than 
7.05¢/kg or greater 
than14.11¢/kg  3.3%  
19059039  Bread  4.5%   
4.3%   
23099020  Preparations of a kind used in 
animal feed (containing eggs)  10.5%   
9.88¢/kg  1.5%  
02071422  Liver: Over -access commitment  238% but not less 
than CAD 6.45/kg  403.1%  238.3% but not less 
than 644.7¢/kg  402.9%  
02071493  Other: Over -access commitment, 
boneless  249% but not less 
than CAD  6.74/kg  345.8%  249.0% but not less 
than 673.5¢/kg  345.5%  
04081920  Egg yolks (excl. dried): 
Over-access commitment  CAD 1.52/kg  53.7%  151.7¢/kg  53.6%  
04089920  Birds' eggs (excl. dried): 
Over-access commitment  CAD 1.52/kg  37.0%  151.7¢/kg  36.9%  
35021920  Egg albumin (excl. dried): 
Over-access commitment  CAD 1.52/kg  169.0%  151.7¢/kg  168.7%  
Source:  WTO Secretariat estimates, based on CBSA online information. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; the WTO IDB; and the CTS database.   
3.1.3.5   Tariff exemptions and reductions  
3.45.   Canada 's regulations under the Customs Tariff provide for a variety of duty and tax 
concessions in the form of different schemes, such as tariff remission under the Customs Tariff, duty 
drawback, tempora ry admission, and duty -free warehouses (Table 3.11). During the period under 
review, there were no major changes with respect to procedures and policies.  
3.46.   Under Section 115 of the Customs Tariff, the Governor in Council (on the basis of a 
recommendation by  the Minister of Finance or the Minister of Public Safety and Emergency 
Preparedness) may grant relief or refund of customs duties, through the issuance of orders.79 As 
noted in the previous Review, tariff remissions are generally proposed in situations where it is not 
appropriate to provide relief by statutory tariff amendments or another Order under the Customs 
Tariff. Requests for tariff remission are generally han dled on a case -by-case basis, and remission is 
only provided under exceptional circumstances.  The CBSA takes the lead on cases where 
administrative circumstances form the basis of the remission request, such as administrative error; 
and the Department of F inance takes the lead on requests involving tariff policy. In 2017 -18, the 
total value of tariff remissions granted under Section 115 was CAD 183.5 million; nearly 90% of 
them resulted from remissions in respect of ferry -boats, tankers and cargo vessels.80  
                                                
77 Within access commitment rate of duty is 8.5% ( ad valorem ). 
78 HS 22071090 (Undenatured ethyl alcohol) is subject to a rate of 12¢/litre of absolute ethyl alcohol, 
when taken into a bonded factory.  
79 Customs Tariff, Section 115.  
80 Government of Canada, Public Accounts of Canada . Viewed at: https://www.tpsgc -
pwgsc.gc.ca/recgen/cpc -pac/index -eng.html . WT/TPR/S/389 • Canada  
 
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  3.47.   Under Section 23 of the Financial Administration Act, tariff remissions may also be granted 
for public interest reasons.  
Table 3.11 Key features of tariff exemptions and concessions  
Scheme  Summary  
Temporary  importation  
 
(Temporary Importation 
Regulations SOR/98 -58; and 
Memorandum  
D8-1-1) Imports may be temporarily fully  exempted from customs duties and other taxes 
(e.g. excise taxes) if they are not imported for sale, for lease, or for further 
manufacturing  or processing (duty -free entry under tariff No. 99030000.  
 
Temporary imported goods cannot be released by the CBSA until the necessary 
inspections and documents required by other government departments are 
completed. Goods should be exported within an 18 -month period, with a possible 
extension period.  
 
A Temporary Admission Permit (E29B) and a refundable security deposit may be 
required for relief from duties. A valid A.T.A. Carnet provides an alternative to Form 
E29B; in this case, there is no need to po st a security deposit at the time of 
importation. Temporary imported goods include certain commercial goods and 
equipment for public exhibition, etc. Tariff relief may also be available if vessels are 
temporarily imported for specific purposes, such as rep air, alteration, or storage.  
Canadian Goods Abroad 
Program  
 
(Customs Tariff, Sections 
101-105; and Memoranda  
D8-2-1 and D8 -2-4) 
 Tariff relief is granted for goods returning to Canada after being exported for 
specific purposes (e.g. repair, alteration or further processing); duty is payable only 
on the value -added portion to the Canadian goods in the form of labour or 
additional material. Examples include:  
 
• Full relief from duties is applied to emergency repairs to aircraft, vehicles or 
vessels which ar e being repaired outside Canada due to an unforeseen 
contingency that occurred outside Canada to ensure its safe return.  
• Outward Processing Remission Order (Textiles and Apparel) (SOR/2008 -138) 
provides for the partial or full remission of the customs duti es imposed on 
imported apparel produced in certain countries or territories under the General 
Preferential Tariff programme (unilateral preferences), using textiles produced in 
Canada.  
Duty deferral programme  
Customs bonded warehouse 
(CBW)  
 
(Customs Bonded 
Warehouses Regulations 
SOR/96 -46; Memorandum  
D7-4-4) The CBW programme provides for a complete deferral of customs duties, anti -
dumping and countervailing duties, and other taxes on imported goods until the 
goods are released for Canadian consumption or exported. Goods may be 
manipulated or altered for displaying, inspecting, cleaning, etc., if they are not 
being further manufactured. All goods entering into a CBW are required to meet all 
other government department requirements, such as pe rmits (including tariff 
quotas for agricultural products).  
 
A CBW licence (Form E401) is required. CBW operators must post a security of 60% 
for an amount corresponding to the maximum total of duties and taxes payable at 
any time in the year, following th e issuance of the licence for the CBW. Generally, 
goods may be stored in the CBW for a period of up to four years, but the period 
varies depending on the type of goods, as specified in Section 19 of the Customs 
Bonded Warehouses Regulations. Non -residents can operate a bonded warehouse in 
Canada.  
Duty relief  
 
(Customs Tariff, Section 89; 
Memorandum  
D7-4-1)  The programme relieves the payment of duties on imported goods at the time of 
importation if the goods are subsequently exported and meet one of the following 
conditions: the goods are eventually exported in the same condition as they were 
imported; the goods are further processed and then exported; the goods entered 
the country solely for display or demonstration; or the goods are used in the 
processi ng of other goods. In most cases, the imported goods must be exported 
within four years of the date of importation. Goods imported under the programme 
may be sold or transferred to another programme participant without paying duty. 
Participation in the pro gramme requires the completion of an application form (K90) 
and the approval of the CBSA. The posting of a security is not required: no bonds or 
licensing fees are required.  
Duty Drawback  
 
(Goods Imported and 
Exported Refund and 
Drawback Regulations 
SOR/9 6-42; Memorandum  
D7-4-2) The programme provides a refund of customs duties on imported goods if the goods 
are subsequently exported and meet one of the following conditions: they are 
exported in the same condition as they were imported; the goods are impo rted for 
further processing and then exported; the goods entered the country solely for 
display or demonstration in Canada; or the goods are used as inputs to produce 
other goods for export. A claim for drawback must be filed within four years of the 
release date of the imported goods (in the case of imported spirits used to 
manufacture distilled spirits, within five years). An importer, exporter, or producer 
of goods that are exported, and for which duties were paid on importation, may file 
a drawback clai m. If more than one person is eligible to file a claim, a waiver is 
required from all other eligible claimants waiving their rights to claim a drawback.  WT/TPR/S/389 • Canada  
 
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  Scheme  Summary  
Government contract 
supplies  Tariff relief (code 9982) may be granted to imports related to defence s upplies, as 
defined in the Defence Production Act, if the goods are part of a contract, are 
valued at CAD 250,000 or more, and are certified by the Ministry of Public Services 
and Procurement.  
Source:  Information compiled by the WTO Secretariat, based o n Acts and D Memoranda Series as noted in the 
table; and CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/trade -commerce/tip -pec-
eng.html#a1 . 
3.1.3.6   Preferential tariffs  
3.48.   Canada grants preferences on a reciprocal basis to 19 trading partners including newly signed 
FTA partners, namely the European Union, Ukraine, and CPTPP countries that have ratified the CPTPP 
agreement. Furthermore, Canada offers non -reciprocal pr eferential tariff treatment for goods 
originating in beneficiary countries of the General Preferential Tariff (GPT), the Commonwealth 
Caribbean Country Tariff (CCCT), the Least Developed Country Tariff (LDCT), and Australia and 
New Zealand pursuant to long standing bilateral agreements. Pursuant to Section 35.1 of the 
Customs Act, proof of origin in the form of a certificate of origin, an origin declaration or a statement 
of origin is required for all imported goods (with exceptions under certain conditions.  such as low -
value commercial goods)81 for preferential tariff rates. According to data provided by the 
authorities82, in 2017, some 19% of total imports were under FTAs and unilateral tariff 
arrangements; the United States, under NAFTA (i.e. goods coming un der the NAFTA tariff regime), 
accounted for most of those imports (15% of total imports) (Table 3.12). 
3.49.   With over 70% of Canada 's tariff lines being duty -free on an MFN basis, Canada 's FTAs have 
led to a substantial further liberalization of its tariff regime. Under most FTAs, duty -free treatment 
covers 95% of tariff lines (based on Chart 3.3, and Table 3.12). The main exceptions from 
preferences are in the categories of meat products (HS 02), dairy produce (HS 04), and meat and 
fish products (HS 16) (Table 3.12). The simple average tariff rate for FTA partners is just over 3% 
(Chart 3.3 and Table 3.12). At a disaggregated level, the average rates for agricultural products 
(WTO definiti on) under FTAs are, in general, lower than the average MFN tariff rates; however, they 
remain high (ranging from 17% to 21%), mainly due to exceptions from preferences for certain 
product groups, as noted earlier. On the other hand, tariffs on non -agricult ural products are nearly 
all zero.   
3.50.   Within the framework of unilateral tariff concessions to developing countries, average tariff 
rates applied to imported goods from LDCs stand at 3.3%, almost the same as for most FTA partners. 
Preferences given to non -LDC GPT and Commonwealth Caribbean Countries (CCCT) are more 
limited, especially for agricultural products: the average tariff rates under the GSP and the CCCT are 
21.2% and 19.2%, respectively, compared to the average applied MFN rate of 21.8%. Unlike for 
FTAs and the LDC programme, apparel (HS 61 and HS 62) is excluded from GPT and CCCT 
preferential tariff treatment (Chart 3.3 and Table 3.12).  
Table 3.12 Tariffs under preferential agreements, 2019  
  
Simple a verage tariff 
rate (%)a Duty -free rates 
(including MFN duty -
free) as a percentage of 
total tariff lines in each 
category (%)  Tariff lines not covered by preferential 
tariff rates   
(% of 
total 
tariff 
lines)
   
Main product groups (HS 2 -digit 
code)    All Agri.  Non-
agri.  All Agri.  Non-
agri.  
MFN 6.1 21.8 2.5 70.4 54.8 73.9 29.5  
NAFTA  
Mexico  3.3 17.8 0 97.9 88.5 100 2.0 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
United States  3.3 17.8 0 98.4 91.6 100 1.5 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
                                                
81 CBSA, Memorandum D11 -4-2. 
82 Canada 's data submission to the WTO IDB. Calculations were based on imports entering Canada by 
different tariff regimes. Imports coded as receiving preferential treatment, but corresponding to MFN duty -free 
treatment, were treated as "MFN duty -free treatment".  WT/TPR/S/389 • Canada  
 
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Simple a verage tariff 
rate (%)a Duty -free rates 
(including MFN duty -
free) as a percentage of 
total tariff lines in each 
category (%)  Tariff lines not covered by preferential 
tariff rates   
(% of 
total 
tariff 
lines)
   
Main product groups (HS 2 -digit 
code)    All Agri.  Non-
agri.  All Agri.  Non-
agri.  
EFTAb         
Iceland  3.7 20.1 0.0 95.3 75.4 99.8 4.4 Meat (02); Dairy produce (04); 
Preparations of cereals, flour, starch 
or milk (19)  
Norway  3.9 21.1 0.0 93.2 64.4 99.8 6.4 Dairy produce (04); Preparations of 
cereals, flour, starch or milk (19); 
Vegetable and nut products (20)  
Switzerland  3.9 21.2 0.0 93.0 63.0 99.8 6.7 Meat (02); Dairy produce (04); 
Preparations of cereals, flour, starch 
or milk (19)  
Other reciprocal treatments  
Chile 3.2 17.6 0 98.4 91.6 100 1.5 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
Colombiab 3.3 18.1 0 98.2 90.4 100 1.7 Meat (02); Dairy produce (04); 
Sugars and sugar confectionery (17)  
Costa Rica  3.5 17.9 0.2 96.5 91.2 97.7 3.4 Dairy produce (04); Ceramic products 
(69); Furniture (94)  
CPTPPb 3.7 18.7 0.3 93.7 82.0 96.4 1.5 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
European Unionb 3.3 17.9 0.0 97.6 90.6 99.2 1.5 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
Hondurasb 3.3 17.9 0 98.3 90.9 100 1.7 Meat (02); Dairy produce (04); 
Sugars and sugar confectionery (17)  
Israel  3.9 20.9 0.1 92.2 63.8 98.7 7.6 Meat (02); Meat and fish products 
(16); Preparations of cereals, flour, 
starch or milk (19)  
Jordan  3.3 17.9 0 98.4 91.6 100 1.5 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
Korea, Rep. ofb 3.4 18.0 0.1 98.0 91.4 99.5 1.5 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
Panamaa 3.3 18.1 0 98.0 89.1 100 1.8 Meat (02); Dairy produce (04); 
Sugars and sugar confectionery (17) 
Peru 3.3 18.0 0 98.3 91.0 100 1.7 Meat (02); Dairy produce (04); 
Sugars and sugar confectionery (17)  
Ukrainea 3.3 18.0 0.0 98.1 90.8 99.7 1.6 Meat (02); Dairy produce (04); 
Sugars and sugar confectionery (17)  
Non-reciprocal treatment  
Australia  5.8 21.5 2.2 71.7 57.1 75.1 24.7 Preparations of cereals, flour, starch 
or milk (19); Apparel (62); Vehicles 
(87) 
New Zealand  5.8 21.5 2.2 71.8 57.3 75.1 24.6 Preparations of cereals, flour, starch 
or milk (19); Apparel (62); Vehicles 
(87) 
Commonwealth 
Caribbean 
Countries  4.5 19.2 1.2 91.5 87.0 92.5 8.4 Apparel (61 and 62); Worn clothing 
and worn textile articles (63)  
General 
Preferential 
Tariff 5.4 21.2 1.8 76.4 59.2 80.3 12.1 Preparations of cereals, flour, starch 
or milk (19); Apparel (61 and 62)  
Least Developed 
Country Tariff  3.3 17.8 0 98.5 91.7 100 1.5 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
Memoc 
Mexico (NAFTA) -
CPTPP  3.3 17.7 0 98.0 89.4 100 1.4 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
Australia -CPTPP  3.7 18.6 0.3 93.8 82.2 96.5 1.4 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
New Zealand - 
CPTPP  3.7 18.6 0.3 93.8 82.3 96.5 1.4 Meat (02); Dairy produce (04); Meat 
and fish products (16)  
Note:  All tariff calculations exclude in -quota lines. The tariff schedule is based on the HS17 nomenclature at the 
8-digit tariff line level.  
 0.0 refers to >0 and <0.05; 100.0 refers to >99.55 and <100.  
 
a AVEs were estimated based on 2017 import data at the 8-digit tariff level.  
 In case of unavailability, the ad valorem  part is used for compound and mixed rates.   
b The tariff phase -out period is not yet over.  
c Based on lowest rates taken among available preferential rates.  
 
Source:  WTO Secretariat calculations, based on CBSA online information. Viewed at : https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; and the WTO IDB.  WT/TPR/S/389 • Canada  
 
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  Chart 3.3 Applied MFN and preferential tariffs, 2019  
 
 
a The tariff phase -out period is not yet over.  
b Based on the lowest rate taken among available preferential rates.  
Source:  WTO Secretariat calculations, based on C BSA online information. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; and the WTO IDB.  
 
01,0002,0003,0004,0005,0006,0007,0008,000MFNMexico (NAFTA)United States (NAFTA)IcelandNorwaySwitzerlandChileColombiaCosta RicaCPTPTEUHondurasIsraelJordanKorea, Rep. ofPanamaPeruUkraineAustraliaNew ZealandCCCTGPTLDCTMexico (NAFTA)-CPTPTAustralia-CPTPTNew Zealand-CPTPT(a) Breakdown of applied MFN and preferential tariffs
(Number of tariff lines)aaaaa
aaaMFN duty -free
Dutiable lines (no preferential rate)Duty-free
Reduced ratePreferential tariff 
rates
Non-reciprocal 
treatmentsReciprocal treatments
(b) Average tariff rates
a Tariff phaseout period is not yet over.
WTO  Secretariat calculations, based on C BSA online information. V iewed at: https://www.cbsa -asfc.gc.ca/trade -
commerce/tariff -tarif/2019/menu -eng.html [January 2019]; and WTO IDB.Chart 3. [Can] Applied MFN and preferential tariffs, 2019a
0%5%10%15%20%25%Mexico (NAFTA)United Staets (NAFTA)IcelandNorwaySwitzerlandChileColombiaCosta RicaCPTPTEUHondurasIsraelJordanKorea, Rep. ofPanamaPeruUkraineAustraliaNew ZealandCCCTGPTLDCTMexico (NAFTA)-CPTPTAustralia-CPTPTNew Zealand - CPTPT
Simple average tariff rate for all products Simple average tariff rate for WTO agriculture
Applied MFN average for all products Applied MFN average for WTO agriculture
aaa
aaabb
a
aaa
Source:bb
b
b
Based on lowest rates taken among available preferential rates. bWT/TPR/S/389 • Canada  
 
- 66 - 
 
  3.1.4   Other charges affecting imports  
3.1.4.1   Fede ral Goods and Services Tax (GST) and provincial sales taxes  
3.51.   Levied under the Excise Tax Act, the GST is an important source of revenue for the Federal 
Government. In FY 2016/17, the GST generated CAD 34.4 billion in tax receipts, representing 14% 
of total federal tax revenue.83 The GST, which is a value added tax, is applied to most goods and 
services at a rate of 5%. On imports, GST is generally levied on the Canadian dollar value of the 
goods, inclusive of any applicable duties and excise taxes, if any, an d is collected at the border at 
the same time as these duties and excise taxes. Some goods and services are zero -rated or exempt 
from GST. Zero -rated items include basic groceries, farm livestock and fishery products for human 
consumption, farm equipment, prescription drugs, medical devices, feminine hygiene products, and 
international transportation services. A number of services, such as most financial services, 
insurance policies, education services, music lessons, medical and dental services, legal aid,  and 
day-care services, are GST -exempted.  
3.52.   In five provinces, the Federal Government levies (in addition to the GST and on behalf of the 
province) a provincial tax component on the same tax base as the GST. The combined tax in these 
provinces is known as t he Harmonized Sales Tax (HST) and amounts to a combined rate of 13% in 
Ontario, and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward 
Island (Chart 3.4). Four provinces (British Columbia, Manitoba, Quebec, and Saskatchewan) le vy a 
sales tax additional to the GST on a tax base that may be different from the GST. One province 
(Alberta) and the three territories (Northwest Territories, Nunavut and Yukon) do not levy any 
Provincial Sales Tax (PST). Provincial tax rates have been st able since 2015, except in 
Saskatchewan, where the PST was raised by one percentage point, in Prince Edward Island, where 
the HST was raised by one percentage point, and in New Brunswick and Newfoundland, where the 
HST was increased by two percentage point s. 
Chart 3.4 GST and HST/PST rates, 2018  
 
Source:  Canada Revenue Agency online information. Viewed at: 
https://canadabusiness.ca/government/taxes -gst-hst/federal -tax-information/overview -of-charging -
and-collecting -sales-tax/. 
                                                
83 Department of Finance (2018), Annual Financial Report of the Government of Canada,  Fiscal Year 
2016-17. Viewed at: https://www.fin.gc.ca/afr -rfa/2017/report -rappor t-eng.asp#_Toc492557457 . 
WT/TPR/S/389 • Canada  
 
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  3.53.   Goods and services exported from Canada are generally zero -rated for GST/HST purposes. In 
addition, the GST/HST is relieved on certain inputs in respect of exported goods under 
two programmes. The Export Distribution Centre Program (EDCP) generally perm its eligible 
businesses that do not manufacture or produce goods to acquire and import certain goods without 
paying GST/HST. Eligible businesses must be engaged exclusively in commercial activities, derive at 
least 90% of their revenues from exports, and a dd limited value to goods in the course of their 
activities.84 The Exporters of Processing Services Program (EOPS) generally permits eligible 
businesses to import goods belonging to a non -resident without paying GST/HST if the goods are 
imported for the sol e purpose of supplying storage, distribution, processing, manufacturing or 
production services in respect of the goods to the non -resident. The relief is available only if the 
goods are not transferred to another business in Canada (other than for storage or transportation 
purposes) and are exported within four years of importation. Both programmes are authorized under 
the Excise Tax Act and are administered by the Canada Revenue Agency.  
3.1.4.2   Federal excise duties and taxes  
3.54.   The Federal Government levies excise duties and taxes on alcoholic beverages, tobacco 
products, certain petroleum products, and a few other items (e.g. automobile air conditioners and 
fuel-inefficient vehicles). Excise duties are charged either under the Excise Act or the Excise Act, 
2001, wh ereas excise taxes are charged under the Excise Tax Act. The tax rates are generally 
identical for imports and domestically -produced goods, but lower rates (or zero) apply to domestic 
brewers and to wine made entirely from Canadian -grown agricultural input .85 The federal excise tax 
on certain petroleum products ranges from CAD 0.04 to CAD 0.11 per litre; on certain fuel -inefficient 
passenger vehicles, from CAD 1,000 to CAD 4,000 per unit; and on automobile air conditioners, it 
amounts to CAD 100. For alcohol  and tobacco goods, the current rates are enumerated in Table  3.13.  
Table 3.13 Federal excise duty rates, December 2018  
Product  Unit Rate 
(CAD)  Effective  
Spirits  
- imported by a licensed user  Per litre of absolute ethyl 
alcohol  0.12a 01/07/2003  
- not more than 7% of absolute ethyl alcohol by volume  Per litre of spirits  0.306  01/04/2018  
- more than 7% of absolute ethyl alcohol by volume  Per litre of absolute ethyl 
alcohol  12.109  01/04/2018  
Beerb 
- not more than 1.2% of absolute ethyl alcohol by volume  Per hectolitre (hl)  2.683  01/04/2018  
- more than 1.2% but not more than 2.5% of absolute 
ethyl alcohol by volume  Per hl  16.16  01/04/2018  
- more than 2.5% of absolute ethyl alcohol by volume  Per hl  32.32  01/04/2018  
Winec 
- not more than 1.2% of absolute ethyl alcohol by volume  Per litre  0.021  01/04/2018  
- more than 1.2% but not more than 7% of absolute ethyl 
alcohol by volume  Per litre  0.306  01/04/2018  
- more than 7% of absolute ethyl alcohol by volume  Per litre  0.639  01/04/2018  
Tobaccod 
- cigarettes  Per five  0.59634  28/02/2018  
- tobacco sticks  Per stick  0.11927  28/02/2018  
- cigars  Per 1,000 cigars  25.95832  28/02/2018  
- raw leaf tobacco  Per kg  1.572  01/07/2003  
- other manufactured tobacco  Per 50 g or fraction of 50 g  
contained in a package  7.45425  28/02/2018  
a Special duty rate.  
b Reduced rates apply to beer brewed in Canada by a licensed brewer and anyone related to or associated 
with that brewer.  
c Wine produced in Canada and made from 100% Canadian -grown agricul tural products is exempt from 
excise duty.  
d Cigars, domestically -manufactured or imported, are subjected to an additional duty of CAD  0.093331 per 
cigar, or 88% of ad valorem , whichever is greater.  
Source:  Federal Tax Information. Viewed at: https://canadabusiness.ca/government/taxes -gst-hst/federal -tax-
information/overview -of-charging -and-collecting -sales-tax/. 
                                                
84 Activities covered under the EDCP typically involve minor processing, such as disassembl y, 
reassembl y, distributi on, displa y, inspecti on, labelling, packing, stor age, testing, cleaning, diluting, 
maint enance  and servicing, preser vation, sorting, grading, trimming, filing, sitting , or cutting.  
85 Lower excise rates on beer apply to the first 75,000 hectolitres per calendar year for beer produced in 
Canada by a licensed brewer or anyone related to or associated with that brewer.  WT/TPR/S/389 • Canada  
 
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  3.1.4.3   Provincial product -specific taxes  
3.55.   In addition to the federal excise duties and taxes noted above, the provinces and territories 
may levy their own product -specific taxes on the same products and, in some instances, also on 
other goods.86 For example, all  provinces apply a Tire Recycling Fee (TRF), ranging from CAD 3 to 
CAD 14 per new tyre, as an environmental tax. In Ontario, non -refillable containers are subject to 
an environmental tax of CAD 0.0893 for beer and other beverages. The general provincial 
product -specific tax regimes for fuels, tobacco, and alcoholic beverages are set out in Tables 3.14, 
3.15 and 3.16. Provinces may accord exemptions or reductions for certain products or users on the 
taxes that they levy.  
Table 3.14 Fuel taxes levied by provinces and territories, December 2018  
Province  Tax rate(s)  
Alberta  Rates per litre: aviation fuel, CAD 0.015; diesel and gasoline, CAD 0.13; 
locomotive, CAD  0.18; propane, CAD 0.094.  
British Columbia  Rates per litre: aviation fuel, CAD 0.02; gasoline, CAD 0.255 (Vancouver area), 
CAD 0.20 (Victoria area), and CAD 0.145 (rest of province); diesel, CAD 0.26 
(Vancouver area), CAD 0.205 (Victoria area), and CAD 0.15 (rest of province); 
propane, CAD  0.027; locomotive, CAD 0.03.  
Manitoba  Rates per litre: aviation fuel, CAD 0.032; clear diesel and gasoline, CAD 0.14; 
locomotive, CAD 0.063; propane, CAD 0.03.  
New Brunswick  Rates per litre: aviation fuel, CAD 0.025; gasoline, CAD 0.0155; motive fuel 
(e.g. diesel), CAD 0.0215; locomotive, CAD 0.043; propane, CAD 0.067.  
Northwest Territories  Rates per litre: aviation, CAD 0.01; motive diesel, CAD 0.09; non -motive diesel, 
CAD 0.031; gasoline off -highway, CAD 0.064; gasoline on -highway, CAD 0.107; 
locomot ive, CAD 0.114.  
Newfoundland and 
Labrador  Rates per litre: aviation CAD 0.025; diesel CAD 0.165; gasoline, CAD 0.165; 
marine, CAD  0.035; auto propane, CAD 0.07.  
Nova Scotia  Rates per litre: aviation, CAD 0.025; diesel, CAD 0.154; gasoline, CAD 0.155; 
marine, CAD  0.011; propane, CAD 0.07.  
Nunavut  Rates per litre: aviation fuel, CAD 0.01; gasoline, CAD 0.064; motive diesel, 
CAD 0.091.  
Ontario  Rates per litre: aviation, CAD 0.067; unleaded gasoline, CAD 0.147; leaded 
gasoline, CAD  0.177; diesel, CAD 0.1 43; locomotive, CAD 0.045; automotive 
propane, CAD  0.043.  
Prince Edward Island  Rates per litre: aviation, CAD 0.007; diesel, CAD 0.202; gasoline, CAD 0.131.   
Quebec  Regular rate across the region: gasoline, CAD 0.19; non -coloured fuel oil, CAD 
0.20. Rates per litre: aviation and locomotive, CAD 0.03.  
Taxes on gasoline and non -coloured fuel vary across regions (e.g. regular rate and 
reduced rate regions).  
Saskatchewan  Rates per litre: aviation, CAD 0.015; diesel and gasoline, CAD 0.15; propane, 
CAD 0.09. 
Yukon  Rates per litre: aviation, CAD 0.011; diesel, CAD 0.075; gasoline, CAD 0.062.  
Note:  According to Natural Resources Canada, fuel that is sold on a reserve or in a native settlement to a 
registered Indian, a band, a band council or a tribal coun cil may be tax exempt.  
Source:  Various provincial/territorial government websites.  
Table 3.15 Provincial and territorial taxes on tobacco, December 2018  
Province/territory  Cigarettes 
(CAD/unit)  Cigars (tax rate)  Loose tobacco 
(CAD/g)  
Alberta  0.25 (↑) 129.0%  (↑) 0.375 (↑) 
British Columbia  0.275 (↑) 90.5%  0.375 (↑) 
Manitoba  0.295 (↑) 75.0%  0.45 (↑) 
New Brunswick  0.2552 ( ↑) 75.0%  0.2552 ( ↑) 
Northwest Territories  0.304 (↑) 75.0%  0.272 (↑) 
Newfoundland  0.245 (↑) 125.0%  0.40 (↑) 
Nova Scotia  0.2752 ( ↑) 60.0% ( ↑) 0.26 (↑) 
Nunavut  0.30 140.0%  0.40 (↑) 
Ontario  0.18475 ( ↑) 56.6%  0.18475 ( ↑) 
                                                
86 Non-commercial imports of tobacco products and intoxicating liquors may also be subject to 
product -specific taxation ( ad-valorem  or flat-rate mark -ups) at the provincial level.  WT/TPR/S/389 • Canada  
 
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  Province/territory  Cigarettes 
(CAD/unit)  Cigars (tax rate)  Loose tobacco 
(CAD/g)  
Prince Edward Island  0.25 (↑) 71.6% ( ↑) 0.215 (↑) 
Quebec  0.149  80.0%  0.149 (↑) 
Saskatchewan  0.27 (↑) 100.0%  0.27 (↑) 
Yukon  0.30 (↑) 130.0%  0.30 (↑) 
(↑)  Denotes an increase in the tax rate between 2015 and 2018.  
Source:  Various provincial/territorial government websites.  
Table 3.16 Selected provincial and territorial taxes and mark -ups on alcoholic beverages, 
December 2018  
(CAD or %)  
Province  Spirits  Wine  Beer  
Alberta  Mark-up (22% -60% alcohol 
by volume) CAD  13.76/litre  Mark-up (16% alcohol by 
volume, or less) 
CAD 3.91/litre  Mark-up (11.9% alcohol by 
volume, or less): based on 
the manufacturer 's annual 
worldwide production;  
- >50,000 hl of production: 
CAD 1.25/litre  
- ≤50,000 hl of production: 
CAD 0.10 to 0.60/litre  
British Columbia  124% base mark -up, with 
graduated mark -up on cost 
portion over CAD  21/litre  
124% mark -up applied 
between CAD 0 and 
CAD 21/litre  
93% mark -up applied 
between CAD 21.01 and 
CAD 29.20/litre  
62% mark -up applied 
between CAD 29.21 and 
CAD 37.40/litre  
43% mark -up applied on 
any amount over CAD 
37.41/litre  89% base mark -up, with 
graduated mark -up on cost 
portion over CAD  11.75/litre  
89% mark -up applied 
between CAD 0 and CAD 
11.75/litre  
27% mark -up applied on 
any amount over 
CAD 11.76/litre  
 Large brewers (>350,000 hl 
annual production) = 
CAD 1.08/litre  
 
Medium brewers 
(>15,001≤350,000 hl 
annual production) = 
CAD 0.41 to CAD 0.99/litre  
 
Small brewers (≤15,000 hl 
annual production) = 
CAD 0.40/litre  
 
 
Manitoba  153% of landed cost, plus 
CAD 1.09 surcharge per litre  95% of landed cost, plus 
CAD 1.701 surcharge per 
litre 49% of landed cost, plus 
CAD 0.4085 surcharge per 
litre. Reduced mark -ups for 
producers brewing 
<75,000  hl 
New Brunswick  CAD 14.49 flat mark -up/litre 
+ 55% mark -up on landed 
cost  147% mark -up on landed 
cost, to CAD  8.99/litre  CAD 14.49 flat mar k-up/litre 
+ 55% mark -up on landed 
cost  
Northwest 
Territories  CAD 29.98 per litre  CAD 8.92 per litre  CAD 2.22 per litre  
Newfoundland  750ml bottle= CAD 7.69 + 
100% landed cost  750ml bottle= CAD 3.57 + 
84% landed cost  CAD 4.092/litre = CAD 2.45 
+ 38% landed cost  
Nova Scotia  Mark-up: 160% maximum  Mark-up: 140% maximum  Mark-up: 84.5% maximum  
Nunavut  Mark-up: ≤30% alcohol 
content: CAD 24.00/litre  
>30% alcohol content: CAD 
28.00/litre  Mark-up: ≤16% alcohol 
content: CAD 9.00/litre  
>16% alcohol content: CAD 
11.00/litre  Mark-up: ≤7% alcohol 
content: CAD 2.40/litre  
>7% alcohol content: 
CAD 2.60/litre  
Small brewers: CAD 1.80 -
CAD 2.28/litre (depending 
on size)  
Ontarioa, b Mark-up: 139.7%  
 
Volume Levy: CAD 0.38/litre  Mark-up: 64.6% -114%  
 
Wine Levy:  
CAD 1.62/litre  
 
Volume Levy: CAD  0.29/litre  Beer manufacturer: 
CAD 0.7245/litre draft, and 
CAD 0.8974/litre non -draft  
 
Microbrewerc: 
CAD 0.3596/litre draft, and 
CAD 0.3975/litre non -draft 
 
Volume Levy: 
CAD 0.176/litre   WT/TPR/S/389 • Canada  
 
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  Province  Spirits  Wine  Beer  
Prince Edward 
Island  CAD 9.37 or CAD 9.62/litre 
+ 51% of landed cost  Mark-up: 168.125% of 
landed cost on first CAD 40.  
56.25% on next CAD 60. 
37.5% on balance  74.9% to 88.125% of 
landed cost, depending on 
selling price  
Quebec  CAD 1.40/litre sold  CAD 0.63/litre sold  
Saskatchewan  Mark-up: 
88% of landed cost (alcohol 
content <7%)  
99% between first CAD and 
CAD 12.50/litre of landed 
cost (alcohol content >7% 
to 14.5%)  
30% on portion of landed 
cost over CAD 12.50/litre 
(alcohol content >7% to 
14.5%)  
130% between first CAD to 
CAD 25.00 of lande d cost. 
(alcohol content >14.5%)  
60% on portion of landed 
cost between CAD 25.01 
and CAD 37.50/litre (alcohol 
content >14.5%)  
30% on any portion of 
landed cost over CAD 
37.50/litre (alcohol content 
>14.5%)  Mark-up: 
88% of landed cost (alcohol 
content <7%)  
99% between first CAD and 
CAD 12.50/litre of landed 
cost (alcohol content >7% to 
14.5%)  
30% for portion of landed 
cost over CAD 12.50/litre 
(alcohol content >7% to 
14.5%)  
130% between first CAD to 
CAD 25.00 of landed cost 
(alcohol content >14.5%)  
60% on po rtion of landed 
cost between CAD 25.01 and 
37.50/litre (alcohol content 
>14.5%)  
30% on any portion of 
landed cost over CAD 
37.50/litre (alcohol content 
>14.5%)  Mark-up: 
CAD 1.734/litre per package 
volume (alcohol content 
<6.5%)    
91% of landed cost (alcoho l 
content >6.5%)  
Yukon  Mark-up for large producers 
(total annual production > 
8,300 litres of absolute ethyl 
alcohol):  
138% on portion of landed 
cost between CAD  0.00 and 
CAD 17.40  
35% on portion of landed 
cost between CAD 17.41 and 
CAD 53.40  
15% on portion of landed 
cost over CAD 53.41.  
 
Mark-up for small and 
medium -sized producers 
(total annual production 
≤8,300 litres of absolute 
ethyl alcohol):  
CAD 11.70 per litre  Mark-up for large producers 
(total annual production 
>60,000 litres):  
98% on portio n of landed 
cost between CAD 0.00 and 
CAD 7.50  
55% on portion of landed 
cost between CAD 7.51 and 
CAD 21.00  
15% on portion of landed 
cost over CAD 21.01 – table 
wines and ready -to-serve:  
125% on portion of landed 
cost between CAD 0.00 and 
CAD 7.50  
55% o n portion of landed 
cost between CAD 7.51 and 
CAD 21.00  
15% on portion of landed 
cost over CAD 21.01 – 
fortified wine  
 
Mark-up for small and 
medium -sized producers 
(total annual production 
≤60,000 litres):  
CAD 7.70/litre – table wines  Mark-up for large pro ducers 
(total production 
>25,000  hl): 
CAD 1.00/litre – draft beer  
CAD 1.00/litre - packed beer  
70% + CAD 0.30/litre (cost 
of service) – coolers  
 
Mark-up for medium -sized 
producers (total annual 
production between 15,000 
and 25,000 hl):  
CAD 0.40/litre – draft beer  
CAD 0.40/litre – packaged 
beer 
 
Mark-up for small producers 
(total annual production 
≤15,000 hl):  
CAD 0.10/litre – draft beer  
CAD 0.10/litre – packaged 
beer   
 
a Exempted from taxes and mark -ups: home -brewed/made beer/wine and beverages.  
b Environmental tax (if applicable) – CAD 0.0893 for each non -refillable container.  
c A manufacturer having 49,000 hl or less in worldwide production of beer in the previous calendar year 
qualifies for microbrewer rates  
Source:  Various Canadian websites.  
3.56.   In conjunction with the legalization of cannabis for non -medical purposes in Canada in 
October  2018, the Excise Tax Act, 2001 was amended to apply an excise duty framework to cannabis 
products. Licensed cannabis producers are liable to remit the excise duty a nd ensure excise stamps 
are placed on all duty -paid cannabis products, legally produced and available for purchase. The 
Federal Government agreed on a coordinated cannabis taxation framework with most provincial and 
territorial governments in December 2017 . Under the agreement, the Federal Government is to 
receive 25% of the revenue collected (maximum CAD 100 million per year for the first two years 
after legalization), with the remaining revenues to be distributed among the participating provinces WT/TPR/S/389 • Canada  
 
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  and terr itories. The excise rates on cannabis products are set out in the Excise Act, 2001 and its 
Regulations.  
3.1.4.4   Other charges  
3.57.   The Pan -Canadian Approach to Pricing Carbon Pollution87, a federal benchmark announced in 
2016, aims at ensuring that carbon pollution pricing applies to a broad set of emission sources 
throughout Canada, with increasing stringency over time, to reduce greenhouse gas emissions at 
the lowest cost to business and consumers, and to support innovation and clean growth. The federal 
benchmark r ecognized that provinces and territories have implemented, or are developing, their 
own carbon pollution pricing systems, and outlined criteria all systems must meet to ensure they 
are stringent, fair, and efficient. The Federal Government committed to imp lementing a federal 
carbon pollution pricing system in provinces and territories that request it or do not have a carbon 
pricing system that meets the federal benchmark in 2019.  
3.58.   Alberta, British Columbia, Newfoundland and Labrador, Nova Scotia, Prince Edwa rd Island, 
Quebec, Saskatchewan and the Northwestern Territories have established, or are on track to 
implement, provincial explicit price -based systems or cap -and-trade systems. The Federal 
Government is implementing the federal carbon pollution pricing s ystem in Manitoba, New Brunswick 
and Ontario, and the federal system also applies in part in Prince Edward Island and Saskatchewan. 
Carbon pollution pricing will take effect in the territories in July 2019, with the Northwest Territories 
implementing its o wn system, and Nunavut and Yukon having agreed to the federal system.  
3.59.   All direct proceeds from pricing carbon pollution under the federal system are to be returned 
to the jurisdiction in which they were collected. The Federal Government is to provide an a nnual 
update on how proceeds have been used. Provincial and territorial governments that have committed 
to addressing climate change by voluntarily adopting the federal system will receive these proceeds 
directly from the Federal Government and can decide on how to use them. Proceeds from carbon 
pollution pricing remain in the jurisdiction of origin.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.60.   The importation of certain goods into Canada is prohibited by law. Such goods are grouped 
within tariff lines  9897.00.00, 9898.00.00 and 9899.00.00 of the Customs Tariff88, and include 
certain endangered species or those posing a potential threat to the environment; base or counterfeit 
coins; used or second -hand mattresses and materials therefrom; reprints of Cana dian copyrighted 
works or British works copyrighted in Canada; prison labour goods; certain used or second -hand 
motor vehicles and aircraft; white phosphorous matches; firearms and prohibited or restricted 
weapons and ammunition; asbestos and products cont aining asbestos; and publications deemed 
obscene, constituting hate or terrorist propaganda, or of treacherous or seditious character within 
the meaning of the Criminal Code. The CBSA provides further information on the underlying policy 
in its D9 Memorand a series. Since the last TPR, the CBSA has issued updated memoranda on the 
importation of used or second -hand vehicles (August 2016), policies regarding the classification of 
obscene material (June 2017) and hate propaganda, sedition, and treason materials  (July 2017); 
and a revised memorandum on the determination procedures for obscenity and hate propaganda 
(September 2018).89 The basic features of the system remain unchanged.  
3.61.   According to Section 5(1) of the Export and Import Permits Act, the Governor in Council is 
empowered to establish an Import Control List (ICL) to : (i) ensure the best possible supply of articles 
in scarce supply in world markets or in Canada, or articles subject to governmental controls in the 
country of origin or to allocation by int ergovernmental arrangement; (ii) support any action taken 
under the Farm Product Agencies Act; (iii) restrict the importation of arms, ammunition, implements 
or munitions of war, etc.; (iv) implement an action taken under the Agricultural Marketing Program s 
Act or the Canadian Dairy Commission Act, with the object or effect of supporting the price of the 
article; (v) implement an intergovernmental arrangement or commitment; or (vi) to prevent imports 
                                                
87 Government of Canada's online information . Viewed at:  https://www.canada.ca/en/environment -
climate -change/services/climate -change/pricing -pollution -how-it-will-work.html . 
88 Customs  Tariff Act (S.C. 1997, c. 36), Section 136(1).  
89 CBSA Memoranda D9 -1-11 of 25 August 2016; D9 -1-1 of 7 June 2016; D9 -1-15 of 12 July 2017; and 
D9-1-17 of 20 September 2018.  WT/TPR/S/389 • Canada  
 
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  that frustrate or circumvent the WTO Agreement on Textile s and Clothing. The ICL is updated 
regularly, and currently classifies goods in 193 product categories.90  
3.62.   Canada notifies its import licensing procedures to the WTO on a regular basis. The most recent 
notification, covering 2016, provides information on li censing applied to enforce requirements under 
the Export and Import Permits Act (R.S.C., 1985, c. E -19), acts pertaining to controlled drugs and 
substances, explosives, nuclear safety and controlled rough diamonds, wild animal and plant 
protection, animal health, fish inspection, food and drugs, the National Energy Board Act (oil and 
gas), the Canada Agricultural Products Act (fruit, vegetables, and cheeses), and the Grower 
Requested Own Use (GROU) Program (Canadian -registered agricultural pesticides). In a ddition, on 
the basis of the Canadian Environmental Protection Act, Canada has promulgated several regulations 
governing the exportation, importation, interprovincial movement, and recycling of hazardous 
waste, as well as the Ozone -depleting Substances and  Halocarbon Alternatives Regulations to 
implement intergovernmental arrangements and commitments (Table 3.17).  
Table 3.17 Main import restrictions and licensing requirements, March 2019  
Product  Main legal bas is/rationale  
Food of animal and plant origin  Food and Drugs Act and Safe Food for Canadians Act (WTO 
document G/LIC/N/2/CAN/1). To ensure that the imported food 
meets Canadian standards for safety, quality, and labelling . 
Regulated animals, animal products and by -
products, and germplasm  Health of Animals Act, to protect against the introduction and 
spread of diseases in Canada . 
Plant pests, plants and plant products  Plant Protection Act, to protect against the introduction and 
spread of pests injur ious to plants in Canada  
Unregistered pest -control products for the 
purpose of manufacturing, own use or research  Pest Control Products Act, to ensure that the importation of an 
unregistered pest -control product is used for the specific 
purpose, and to en sure that it does not pose any unacceptable 
health or environmental risks . 
Controlled substances, industrial hemp and 
precursor chemicals ( Schedules I to VI to the 
Controlled Drugs and Substances Act)  Controlled Drugs and Substances Act (UN Drug Control 
Conventions) . 
Explosives  Explosives Act . 
Chemicals controlled under the Chemical 
Weapons Convention, Munitions Items (weapons, 
ammunition and war supplies)  Export and Import Permits Act, t o restrict importation and/or 
implement an intergovernmental arran gement or commitment . 
Prescribed nuclear equipment and information, 
radiation devices, and nuclear substances  Nuclear Safety and Control Act, t o ensure that products subject 
to regulatory control are destined to authorized persons or 
organizations, and that their use will not pose undue risk to 
health, safety, security, and the environment (implements 
international obligations) . 
Carbon steel products and specialty steel 
products  Export and Import Permits Act, t o monitor the volume and the 
origin of carb on and specialty steel products . 
Species regulated under the Convention on 
International Trade in Endangered Species of 
Wild Fauna and Flora  Wild Animal and Plant Protection and Regulation of 
International and Interprovincial Trade Act (WAPPRIITA), to 
allow the importation of certain species and their by -products 
in internationally -agreed circumstances. For species in 
Schedule II, to ensure that there are sufficient safeguards and 
security to prevent escapes to the wild . 
Health products  Food and Drugs Act , to ensure that imported natural health 
products, drugs, blood and medical devices meet Canadian 
requirements for safety, efficacy, and quality . 
Rough diamonds  Export and Import of Rough Diamonds Act. In December 2000, 
the United Nations General Assembly  adopted resolution 
A/RES/55/56, supporting the creation of an international 
certification scheme for rough diamonds. This was followed by 
support from the United Nations Security Council in its 
Resolution 1459 passed in January 2003 . 
Asbestos and asbesto s-containing products  Updated regulations to ban asbestos, and products containing 
it, came into force on 30 December 2018, and the Government 
repealed its previous control measures.  The changes come 
under Canada 's comprehensive strategy to manage asbestos , 
announced in December 2016 . 
Textile and clothing products  Export and Import Permits Act, to implement FTAs with the 
United States, Mexico, Chile, Costa Rica, and Honduras . 
Natural gas  National Energy Board Act . 
Firearms, prohibited weapons, and prohibited 
devices  Customs Act, Firearms Act, and the Exports and Imports Permit 
Act (EIPA) . 
                                                
90 Government of Canada, Justice Laws Website. Viewed at: http://laws -
lois.justice.gc.ca/PDF/C.R.C.,_c._604.pdf .  WT/TPR/S/389 • Canada  
 
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  Product  Main legal bas is/rationale  
Hazardous waste and hazardous recyclable 
material  Canadian Environmental Protection Act, to  implement 
international and bilateral obligations . 
Ozone -depleting su bstances  Canadian Environmental Protection Act, to implement 
international obligations . 
Source:  WTO document G/LIC/N/3/CAN/17, 1 October 2018; and information provided by the authorities.  
3.63.   Updated regulations to ban asbestos, and products containing it, c ame into force on 
30 December 2018, and the Government repealed its previous control measures. The Prohibition of 
Asbestos and Products Containing Asbestos Regulations issued under the Canadian Environmental 
Protection Act, 1999 (CEPA), were finalized in O ctober 2018. Their coming into force led to the repeal 
of the Asbestos Products Regulations, which had been issued under the Canada Consumer Product 
Safety Act. The new Regulations ban the import, sale and use of the substance and products 
containing it, w ith several limited exceptions. These include a time -limited exemption for the 
chlor-alkali industry until the end of 2029. The changes come under Canada 's comprehensive 
strategy to manage asbestos, announced in December 2016.91 
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.1.6.1   Anti-dumping and countervailing measures  
3.64.   Finance Canada is the agency responsible for policy issues regarding trade remedies. Global 
Affairs Canada is responsible for ensuring that policy follows Canada 's trade policy  agenda. The main 
regulations with respect to anti -dumping (AD) and countervailing (CV) measures are contained in 
the Special Import Measures Act (SIMA),92 the Special Import Measures Regulations (SIMR) 
(SOR/84 -927), the Canadian International Trade Tribuna l Regulations, and the Canadian 
International Trade Tribunal Rules, which set out the rules and procedures for the imposition of trade 
remedies in Canada. The last amendment to the SIMA, the SIMR, and the Rules came into force on 
26 April 2018. The changes  in legislation were notified to the WTO in May 2018 and are contained 
in the following legal instruments: the Budget Implementation Act, 2017, No. 1; the Regulations 
Amending the Special Import Measures Regulations ; and the Canadian International Trade Tr ibunal 
Regulations; and the Rules Amending the Canadian International Trade Tribunal (CITT) Rules.93 
3.65.   The key elements of the amendments include: provisions that permit the Canada Border 
Services Agency (CBSA) to conduct new scope proceedings and anti -circum vention investigations, 
provisions that grant the CBSA the ability to disregard certain sales due to a particular market 
situation, changes in sunset review procedures, and provisions that give unions participatory rights 
in dumping and subsidy investigati ons (see below).94 The authorities noted that many of the 
amendments were implemented to modernize legislation.95 
3.66.   AD and CV investigations can be initiated following a petition of the domestic industry, or may 
be self -initiated by the CBSA, although this is seldom the case. The process is conducted through a 
bifurcated system, in which the CBSA determines whether dumping and/or subsidization occurred, 
and the CITT determines whether injury, threat of injury or retardation has resulted in the domestic 
industry . The CBSA receives the complaint, evaluates it, and decides whether it may start a formal 
investigation to determine whether the goods are dumped or subsidized. To ensure there is sufficient 
support by the Canadian industry for an investigation, producers  representing at least 25% of 
Canadian production must support the complaint, and there must be more support than opposition 
                                                
91 Government of Canada online information. Viewed at: https://www.canada.ca/en/health -
canada/services/chemical -substances/chemicals -management -plan/initiatives/asbestos.html .  
92 Special Import Measures Act (R.S.C., 1985, c. S -15), latest amendment in April 2018.  
93 WTO docum ent G/ADP/N/1/CAN/4/Suppl.2, G/SCM/N/1/CAN/4/Suppl.2, G/SG/N/1/CAN/3/Suppl.1, 
19 June 2018.  
94 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/sapt -pesp-eng.h tml. 
95 On 22 June 2016, the SIMA was amended to make changes regarding the preliminary determination, 
where the investigation is no longer terminated for goods with an insignificant estimated margin of dumping, 
but duties will not be collected. Also, addit ional time was granted in expiry reviews and expiry reviews were 
allowed to start later. On 22 June 2017, the SIMA was amended to include scope proceedings, 
anti-circumvention investigations, particular market situations, participation by unions, and termi nation by the 
exporter. The provisions regarding determination by the exporter went into effect at this time; the others 
required regulatory changes, which went into effect in April 2018. On 26 April 2018, the SIMR and CITT 
Regulations were amended to allo w for the legislative changes concerning scope proceedings, 
anti-circumvention investigations, particular market situations, and participation by unions to take effect.  WT/TPR/S/389 • Canada  
 
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  to the complaint within the Canadian industry.96 Once a formal complaint is received, the CBSA has 
21 days to determine if it is pro perly documented. If the complaint is not properly documented, all 
the proceedings cease. If the CBSA determines that a complaint has been properly documented, a 
decision on whether or not to initiate an investigation must be made within 30 days. If the CB SA 
decides not to initiate an investigation, all the proceedings cease. If the CBSA determines that an 
investigation should be started, questionnaires are sent to exporters, importers, and, in subsidy 
investigations, to the government of the exporting coun try.  
3.67.   Following the decision to start an investigation, the CBSA sends a copy of the complaint to 
the CITT. The CITT then initiates its preliminary injury inquiry, which investigates into whether the 
dumping and/or subsidizing have caused or threaten to ca use material injury to a domestic industry 
or have caused material retardation of the establishment of a domestic industry. Within 60 days, 
the CITT will either terminate its inquiry or make a preliminary finding of injury. In the preliminary 
inquiry phase , the CITT determines whether the evidence discloses a reasonable indication of injury, 
threat of injury or retardation. If the CITT finds that there is no reasonable indication, both the CITT 
injury inquiry and the CBSA investigation are terminated. If th e CITT finds that there is a reasonable 
indication of injury, threat of injury, or retardation it issues its decision and reasons to that effect. 
Following the CITT 's preliminary determination of injury, the CBSA must, within 90 days after the 
date of its initiation (or 135 days if the case is complex), make a preliminary determination or 
terminate the investigation.97 If the CBSA terminates the investigation, all the proceedings are ended 
including the CITT injury inquiry. If the CBSA determines that there is dumping or subsidizing of the 
goods, provisional duties may be imposed by the CBSA and the CITT will initiate its final injury 
inquiry. There is also a possibility for the CBSA to accept price undertakings in which an exporter 
increases selling prices s o that the margin of dumping, amount of subsidy or injury is eliminated. 
Such undertakings would suspend both the CBSA investigation and the CITT inquiry.  
3.68.   The CITT must, within 120 days after the initiation of its injury inquiry, make its final injury 
finding. Where the CITT determines there is no injury (or threat of injury) to the domestic industry, 
all the proceedings are terminated, and the provisional duties are returned. Where the CITT makes 
a finding of injury, the CBSA will review and finalize the p rovisional duties within six months of the 
finding. Definitive AD or CV duties are imposed only after the CITT has issued an injury or threat of 
injury finding. All in all, the SIMA investigative process generally takes about 260 days from the time 
the CBS A receives a complaint until the CITT makes a finding.98 The CBSA collects final duties and 
monitors imports of subject goods while the finding is in place for the next five years. Under the 
SIMA, a finding of injury, or threat of injury, or an order contin uing a finding of injury, or threat of 
injury, and the associated special protection in the form of AD or CV duties expire five years from 
the date of the finding or the order, unless an expiry review has been initiated. In practice, expiry 
reviews are com pleted before the expiry date of the finding or order duty.  
3.69.   One of the main changes brought about by the review of Canada 's trade remedies legislation 
is the introduction of anti -circumvention proceedings.99 The proceedings before the CBSA were 
established to determine whether goods are being imported for the specific purpose of circumventing 
existing AD and CV duties, which could result in the scope of the duties being extended to cover 
importations of such goods. Anti -circumvention investigations seeking t o eliminate circumvention of 
an existing order or finding may be initiated as a result of a complaint, or may be self -initiated by 
the CBSA, which is in charge of the investigation. Generally, an anti -circumvention investigation is 
initiated as a result of  the submission of a formal complaint. If circumvention is found following a 
                                                
96 CBSA, Overview of Canada 's Anti -Dumping and Countervailing Investigative Processes . Consulted at: 
https://www.cbsa -asfc.gc.ca/sima -lmsi/brochure -eng.html . 
97 Paragraph 41(1)(a) of the SIMA requires the CBSA to terminate an investigation in respect of any 
goods of an exporter if the margin of dumping of the goods of th at exporter is insignificant (i .e. less than 2% 
of the export price of the goods).  The CBSA may also terminate the investigation at the request of the  
exporter.  
98 CBSA, Special Import Measures Act (SIMA)  Investigative Process and Timeframes , flowchart and 
explanations. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/flowchart -eng.pdf . 
99 Under Canadian law, circumvention occurs when trade and business practices are altered to 
specifically avoid the liability for SIMA duties. More specifically, circumvention is defined in Section 71 of the 
SIMA as occurring when all of the following elemen ts are present: (a)  a change in the pattern of trade has 
occurred after a dumping or subsidy investigation was initiated;  (b) a prescribed activity is occurring, and 
imports of the goods to which that prescribed activity applies are undermining the remedia l effects of an order 
or finding of the CITT; and (c) the main cause of the change in trade pattern is the imposition of AD or CV 
duties.  Duty evasion that results from illegal activities such as fraud is not within the scope of anti -
circumvention investig ations.  WT/TPR/S/389 • Canada  
 
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  formal investigation by the CBSA, duties will be extended to those goods that are circumventing. 
(See below).  
3.70.   The decision to initiate or not an anti -circumvention investigation m ust be made within 
45 days of receipt of a circumvention complaint. If the CBSA is of the opinion that there is evidence 
that circumvention is occurring, it initiates an investigation. The decision to initiate can be made 
with respect to some or all of the  goods identified in the complaint. Likewise, an investigation can 
be specific to certain goods from an exporter(s) or with respect to certain goods from a country. If 
the CBSA decides not to initiate, all actions with respect to the complaint are terminat ed. The CBSA 
notifies the complainant and provides the reasons for its decision. When an investigation is initiated, 
Requests for Information (RFIs) are sent to importers, exporters, vendors and foreign producers of 
the goods under investigation, as well a s domestic producers of like goods, in order to obtain the 
necessary information for the investigation. A typical Anti -Circumvention Investigation Schedule is 
summarized in Box 3.1. Schedules are published on the CBSA 's website at initiation and updated as  
required.  
Box 3.1 Schedule of an Anti -Circumvention Investigation  
Day 0  The CBSA initiates an anti -circumvention investigation, sends out RFIs and issues its Statement 
of Reasons  
Day 21  Importer 's response to Request for Information due  
Day 37  Exporter/producer responses to Request for Information due  
Day 110  Close of Administrative Record  
Day 135  Statement of Essential Facts (SEF) published  
Day 142  Comments on SEF due  
Day 149  Responses to comments due  
Day 180  Conclusion of Anti -Circumvention Investigation, CBSA 's decision, notification to the CITT where 
circumvention is found, and Statement of Reasons issued  
Source:  CBSA, Anti-Circumvention Investigations conducted pursuant  to the SIMA . Viewed at: 
https://www.cbsa -asfc.gc.ca/sima -lmsi/ac -eng.html . 
3.71.   In each anti -circumvention investigation, a date for the close of the administrative record is 
established, after which no further information may be submitted by parties. This permits the CBSA 
to prepare the SEF , a non -confidential report that includes the CBSA 's preliminary assessment of 
whether the evidence discloses a reasonable indication of circumvention. It als o includes the 
summary of the facts that the CBSA relied on in making that preliminary assessment. After 
publication of the SEF, parties may choose to submit case arguments based on any relevant 
information available on the administrative record and respon d to the CBSA 's preliminary 
assessment detailed in the SEF. During the investigation, evidence may be discovered that the goods 
under investigation are subject to an order or finding. To determine if this is the case, the CBSA will 
consider the prescribed factors for making a scope ruling. If the goods are found to be subject to an 
order or finding, the CBSA will terminate the anti -circumvention investigation, prior to the publication 
of the SEF, and will issue its reasons for terminating the investigation,  including the reasons for 
determining that the goods in question are subject to an order or finding. This decision to terminate 
is deemed to be a scope ruling (see below).  
3.72.   In general, the CBSA makes a circumvention decision, based on prescribed anti -circumvention 
factors, within 180 days of the initiation of the investigation. In certain circumstances, such as where 
complex or novel issues arise, the CBSA may extend the period for making its decision to 240 days. 
If the CBSA makes a decision that the order  or finding is not being circumvented in respect of some 
or all of the goods, AD and/or CV duties will not be extended to those goods. If it makes a decision 
setting out a finding of circumvention, it notifies the CITT, which in turn modifies the original finding 
or order to include the circumventing goods, and thereby extend AD and/or CV duties to those goods. 
The CBSA may also make a partial finding of circumvention, that is, find that only some goods under 
investigation are circumventing the order or fin ding. Once the CITT modifies the order or finding, 
AD or CV duty is payable on all dumped or subsidized goods of the same description that are released 
on or after the day of the amendment. In addition, retroactive assessment of duties is applied to 
dumped  and subsidized goods released on or after the day the anti -circumvention investigation is WT/TPR/S/389 • Canada  
 
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  initiated. These duties are applicable until such time as the order or finding is amended or rescinded 
or it expires. The CBSA notifies the importer, the exporter, t he government of the exporting country, 
the domestic producers and the complainant, if any, of the initiation of the investigation, the 
termination, the extension, the publication of the SEF, and the final decision.  
3.73.   The SIMR contains provisions (Sections 5 7.11 to 57.16) identifying factors considered in 
assessing the various elements of circumvention. The factors may be considered on a country level 
or on an exporter -specific level, depending on the nature of the investigation. These factors are for 
the pur poses of determining: (a) whether there has been a change in the pattern of trade100; 
(b) whether an activity prescribed under Section 57.12 of the SIMR is occurring101, namely : (i) the 
assembly or completion of like goods in Canada, or in a third country, usi ng parts or components 
originating in, or exported from, a country subject to the applicable order or finding102; and (ii) the 
slight modification of like goods originating in, or exported from, a country subject to the applicable 
order or finding, whether the modification took place in the subject country or a third country, so 
that the goods are no longer like goods103; (c) whether imports of the goods to which a prescribed 
activity applies are undermining the remedial effects of existing duties104; and (d) wh ether the 
principal cause of change in trade pattern is the imposition of AD and/or CV duties.105 
3.74.   Exporters of goods to which a circumvention finding applies may seek an exemption from the 
extension of duties resulting from an anti -circumvention investigatio n.106 In this case, the CBSA 
initiates an exemption review where the circumstances warrant it. The CBSA notifies the importer, 
the exporter, the government of the exporting country, and the domestic producers of the initiation 
and completion of the review. G oods subject to the investigation imported by the exporter making 
the request will be assessed for AD and/or CV duty during the exemption review. If the CBSA 
determines that the goods are exempt from the extension of duties, the CITT will amend the order 
or finding that is affected by the review, in order to give effect to the CBSA 's determination. Duties 
cease on the day the CITT amends the order. Tariffs paid are not reimbursed.  
3.75.   The new Scope Proceedings have the purpose of establishing whether a particul ar product 
falls within the scope  of an existing AD and/or CV measure. Scope Proceedings may be initiated as 
a result of an application made by interested persons (e.g. importers, exporters, or domestic 
producers), or may be self -initiated by the CBSA. The  result is binding and appealable.107 A scope 
ruling specifies whether the product in question falls within the product description of the applicable 
order, finding or undertaking, including whether the goods in question originate in a country named 
in the o rder, finding or undertaking. The ruling does not result in a modification of the measure.  
3.76.   An application for a scope proceeding may request clarification on one or both of two particular 
issues: whether the product in question falls within the product description of an AD or CV measure, 
or whether the goods in question originate in the country named in an AD or CV measure. After 
                                                
100 In determining the change of trade patterns, the CBSA must take into account: any change in the 
import volume of subject goods; any change in the import volume of goods that are allegedly circumventing 
the order or finding; any change in the imp ort volumes of like goods, or the components that can be 
assembled into like goods, from a country that is named in the applicable order or finding into a third country 
that is part of the anti -circumvention investigation; and any other factor that is rele vant in the circumstances.  
101 Any of the factors listed in Section 57.12, by itself, is a deciding factor.  
102 Under these activities: the parts or components must represent a major portion of the total cost of 
producing the like goods; the process of assembl ing or completing the like good must be insignificant; and the 
parts or components from the subject country do not need to be the only ones used to assemble or complete 
the like goods.  See Section 57.13 of the SIMR for further information.  
103 Section 57.14 of the SIMR describes the factors the CBSA may consider when determining whether a 
modification of like goods is slight.  
104 To determine if imports of goods to which a prescribed activity applies are undermining the remedial 
effects of duties, the CBSA may consider the following factors: (a) price and volume of the like goods that are 
assembled or completed in Canada and sold in Canada, or the price and import volume of like goods that are 
assembled or completed in a third country, or of slightly modified li ke goods; (b) whether the goods are sold to 
the same consumers that otherwise may have bought goods subject to the order or finding; (c) whether the 
goods have the same end use as the goods subject to the order or finding; and (d) any other factor that is 
relevant in the circumstances.  
105 To this end, the CBSA may consider the factors found in Section 57.16 of the SIMR.  
106 To request that the CBSA carry out an exemption review, the exporter must not: have been given 
notice of the initiation of that investigat ion; be associated with an exporter who was given such notice; or have 
been requested to provide information during the course of that investigation.  
107 Scope rulings are issued under Subsection 66(1) of the SIMA.  WT/TPR/S/389 • Canada  
 
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  receipt of the application, the CBSA has 30 days (or 45 days, if extended) to review it and determine 
if the application shoul d be rejected.108 If this is the case, the CBSA notifies the applicant and 
provides the reasons for its decision. If the application is not rejected, a scope proceeding is initiated. 
The CBSA notifies the applicant, if any, the government of the country of e xport, the exporter, the 
importer, and the domestic producers of the initiation of the proceeding. The CBSA may send RFIs 
to obtain the necessary information for its proceeding; the information requested in the RFI will be 
limited to the specific question of scope. The CBSA is generally required to terminate the scope 
proceeding or make a scope ruling within 120 days of initiation (Box 3.2). However, the timeline to 
conduct the proceeding may be shortened, if the CBSA considers it appropriate, or extended t o 
210 days in certain circumstances, such as when facing complex or novel issues. The CBSA notifies 
the applicant, the government of the country of export, and any other parties who have requested 
notification of changes to the proceeding schedule. The sch eduling of events is published on the 
CBSA 's website at the time the scope proceeding is initiated and is updated as required.  
Box 3.2 Scope Proceeding Schedule  
Day 0  Initiation – Requests for Information (RFIs)  sent out  
Day 21  Importer 's response to RFI due  
Day 28  Exporter/producer responses to RFI due  
Day 55  Closing of the administrative recorda 
Day 80  SEF publishedb 
Day 87  Case arguments due from interested persons  
Day 94  Reply submissions due from i nterested persons  
Day 120  Conclusion of scope proceeding, ruling issued and Statement of Reasons published  
a In each scope proceeding, a date for the close of the administrative record is established, after 
which no further information may be submitted  by parties . 
b The SEF is a non-confidential report prepared by the CBSA, which include the CBSA's preliminary 
assessment of whether the goods are subject to the AD or CV measure. It also includes a summary 
of the facts that the CBSA relied on in making th at preliminary assessment. After publication of the 
SEF, parties may choose to submit case arguments based on any relevant information available on 
the administrative record and respond to the CBSA's preliminary assessment detailed in the SEF . 
Source:  CBSA online information . Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/sp -pp-eng.html . 
3.77.   The CBSA may terminate the scope proceeding at any time prior to the issuance of the SEF, 
if: (i) it  is unable to obtain, or assess the accuracy of, the evidence; (ii) it is of the opinion there are 
no grounds for making the scope ruling; or (iii) one or more of the conditions for rejecting an 
application for a scope ruling have come into effect subseque nt to the initiation of the scope 
proceeding.  
3.78.   In making a scope ruling, the CBSA takes into account a number of factors, including: (i) the 
detailed description of the goods in the order or finding; (ii) the detailed description of the goods in 
the prelim inary determination of dumping or subsidizing and in the undertaking; (iii) the CITT 's 
reasons for the order or finding; (iv) the CBSA 's reasons for the preliminary determination of 
dumping or subsidizing; (v) any relevant decision by the CITT, the Federal  Court of Appeal (FCA), 
the Supreme Court of Canada (SCC), or a binational panel; (vi) the physical characteristics of the 
goods, technical specifications, and product composition, uses, packaging and distribution; (vii) the 
production activities undertake n in the subject country or the third country; (viii) the nature of the 
goods when they were exported from the subject country or the third country; (ix) the costs of 
production incurred in the third country; and (x) any other relevant factors that may be applicable 
to the specifics of the case. A scope ruling takes effect on the day it was made, unless otherwise 
stipulated, and includes any terms and conditions that are considered appropriate. For example, the 
                                                
108 An application may be rejected by the CBS A for the following reasons: a) the application is 
incomplete; b) there is already a scope ruling that applies to the goods in question; c) the goods have not been 
produced as of the day on which the application is received; d) the issue is the subject of a proceeding before 
the President (of the CBSA), the CITT, the Federal Court of Appeal (FCA), the Supreme Court of Canada (SCC) 
or a binational panel; e) there is a decision setting out a finding of circumvention that resulted in an amended 
CITT order that  applies to the goods; f) a decision by the CITT, the FCA, the SCC, or a binational panel applies; 
or g) in the opinion of the President (of the CBSA), the application is frivolous, vexatious or made in bad faith.  WT/TPR/S/389 • Canada  
 
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  ruling may request that a specified certificat e be included with the import documentation for a good 
considered to be not subject to a CITT finding; failure to provide the required certificate could result 
in the imposition of AD or CV duties. A scope ruling is binding on the CBSA for subsequent decis ions 
made with respect to the goods to which the ruling applies that are released on or after the effective 
date of the ruling.109 
3.79.   A scope ruling may be appealed to the CITT by any interested person. The notice of appeal 
must be filed in writing with the CBS A and the CITT within 90 days of the date the ruling was made. 
A decision made by the CITT may be further appealed to the FCA.  
3.80.   The CBSA reviews scope rulings to give effect to a decision of the CITT, the FCA, or the SCC, 
and may also review scope rulings i f: (i) an order or finding is issued by the CITT with respect to 
goods of the same description as goods to which the ruling applies, except if those goods originate 
in, or are exported from, a country that is different from the subject country in the rulin g; (ii) the 
CITT, the FCA, or a binational panel makes a decision that relates to the subject matter addressed 
in the scope ruling; (iii) the CBSA makes a decision setting out a finding of circumvention that 
impacts the scope ruling; (iv) the ruling was ba sed on erroneous information; or (v) there was a 
material change in circumstances since the ruling was made. The review of a scope ruling may result 
in the confirmation, amendment or revocation of the scope ruling.110 
3.81.   Another important change introduced by t he amendments to the SIMA refers to  the provisions 
to deal with price distortions. In accordance with the updated legislation, margins of dumping may 
now be calculated using an alternative methodology in situations where domestic prices in the 
exporting co untry are distorted due to a particular market situation. In such cases, sales in the 
exporter 's domestic market may be disregarded by the CBSA during its investigation, and the price 
determined instead by calculating the cost of production and adding reas onable amounts for selling, 
administration costs and profit.  
3.82.   The amendments to the SIMA also allow labour unions to participate in dumping and subsidy 
investigations. Unions that represent persons employed in the production of like goods in Canada 
are now required to be identified in complaints, or may come forward themselves, and have full 
participatory rights accorded to other interested parties. At the initiation of a dumping or subsidy 
investigation, notice is sent to the trade unions identified in the complaint. The notice informs the 
union that it is considered to be a party to the proceeding. Other trade unions may be identified as 
parties to the proceeding at a later stage, as the proceeding develops. A trade union that is identified 
as a party to th e proceeding may request information in accordance with the disclosure of 
information provisions of the SIMA and may provide information to the CBSA.111 
3.83.   A number of changes were also introduced to the CITT Rules on 26 April 2018. Some of the 
main changes are  summarized in Box 3.3.  
3.84.   Between 2015 and 2018, the CBSA initiated 45 AD investigations, with a peak of 
14 investigations each in 2016 and 2017. In 2018, 14 new investigations were initiated. In general, 
there has been an increase in the number of AD invest igations since 2016, compared to 2015, where 
there were only three initiations. However, the number of initiations since 2016 is similar to those 
registered in 2013 and 2014 (16 and 13, respectively). Since the beginning of the WTO 
(1 January  1995) and up to end -2018, Canada initiated 241 AD investigations. Similarly, there has 
been an increase in the overall number of measures adopted: 33 AD measures were adopted 
between 2015 and end -2018, compared with 24 between 2011 and 2014. However, the number of 
meas ures applied in 2017 and 2018 declined, as several of the investigations initiated in 2016 and 
2017 ended in a non -injury determination.112 Of the 45 AD investigations initiated over the period 
2015-18, 41 led to the imposition of preliminary duties.  
 
                                                
109 CBSA, Scope Proceedings . Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/sp -pp-eng.html . 
110 CBSA , Scope Proceedings . Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/sp -pp-eng.html . 
111 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/sapt -pesp-eng.html.  
112 CBSA, Historical Listing:  An index of dumping and subsidy investigations conducted pursuant to the 
Special Import Measures Act since its implementation on December 1st, 1984 . Viewed at: https://www.cbsa -
asfc.gc.ca/sima -lmsi/hist -eng.html . WT/TPR/S/389 • Canada  
 
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  Box 3.3 Summary of changes to the Canadian International Trade Tribunal Rules  
1) E-filing:  
Electronic filing of documents has been made mandatory . 
2) Rules of general application  
New Rule 17(2) allows counsel for parties to serve confidential information directly on other counsel who have 
been granted access to confidential information in a proceeding. Previously, only the CITT could serve 
confidential information on counsel.  
New Rule 20.1 explicitly states the power of the CITT to compel a non -party to file a questionnaire response or 
to provide specific information to the Tribunal.  
New Rule 21.1 explicitly states the power of the CITT to request affidavits in the context of va rious proceedings, 
while at the same time reserving the discretion to do so on a case -by-case basis.  
New Rule 23.1(3) allows other parties the opportunity to comment on a request for a decision or order.  
Rule 22 was amended to change the deadline for fi ling of expert reports to 30 days before the hearing instead 
of 20. Similarly, the deadline to file rebuttal expert reports was changed to 20 days before the hearing instead 
of 10.  
Rule 23(3)(b) was amended to allow experts to attend the confidential por tion of CITT hearings.  
Rule 24(3) was amended to change the deadline for filing a motion from three days prior to the hearing date 
to five.  
3) SIMA -related amendments  
The definition of "interested party " in Rule 2 was amended to add trade unions, to r eflect the changes made to 
the SIMR and the CITT  Regulations.  
Rule 57 was amended to explicitly require, in new paragraphs (c.1) and (c.2), the President of the CBSA to 
provide the Tribunal with the margin of dumping and the amount of subsidy for the country, respectively. The 
provision in the SIMA that required the President of the CBSA to calculate this margin of dumping was removed 
as part of the 2017 SIMA amendments, but the CITT still requires this number to conduct its cumulation  analysis.  
Part V.2 and Rule 68.5 are being added to provide that, where the President of the CBSA makes an anti -
circumvention finding, s/he must file the record of the decision and the SEF with the  CITT. 
Rule 73.2 was amended to replace the list of factors regarding whi ch the CITT can request information in an 
expiry proceeding with a reference to the list of factors contained in Section 37.2 of the SIMR.  
Source:  CITT online information . Viewed at http://www.citt.gc.ca/en/amendments -citt-rules. 
3.85.   As was the case in the previous review period, most Canadian investigations in the period of 
review involve d several countries ' exports of the same products. Frequently, they were accompanied 
by CV measure in vestigations on the same products and countries. During the review period, there 
were three groups of such AD investigations, accompanied by a CV investigation, all of which resulted 
in no AD or CV measure being applied: steel plate from India, and the Rus sian Federation (initiated 
in 2015, terminated by the CITT with no -injury final determination); silicon metal from Brazil, 
Kazakhstan, Lao  PDR, Malaysia, Norway, the Russian Federation, and Thailand (initiated in 2017, 
terminated by the CITT with no -injury  final determination in the case of Brazil, Kazakhstan, Lao  PDR, 
Malaysia, and Thailand)113; and certain polyethylene terephthalate resin from China, India, Oman, 
and Pakistan (HS 3907.61 and 3907.69, initiated in 2017, terminated by the CITT).114 There was 
also one group of investigations dealing only with AD which ended in an injury determination: 
concrete reinforcing bar from Belarus; Chinese Taipei; Hong Kong, China; Japan; Portugal; and 
Spain, started in 2016; and another group of AD investigations, only p artly accompanied by a 
subsidy investigation: fabricated steel components from China, the Republic of Korea, Spain, the 
United Arab Emirates and the United Kingdom (accompanied by a parallel subsidy investigation only 
for China), which resulted in an injur y determination for the China, Republic of Korea and Spain AD 
investigations, as well as for the subsidy investigation.  
                                                
113 The AD investigation was terminated by the CBSA in the case of Norway, due to a finding of no 
dumping. For the Russian Federation, the AD investigation was also terminated by the CBSA, but due to 
negligible imports. In the case of th e subsidy investigations, they were also terminated, due to a no -injury 
finding, except for Thailand, for which there was a no -subsidy determination.  
114 The subsidy investigations were also terminated by the CITT due to a no -injury finding, except for 
Oman and Pakistan, for which they were terminated by the CITT due to negligible volume of imports.  WT/TPR/S/389 • Canada  
 
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  3.86.   In 2018, AD investigations were initiated on three products:  
• Corrosion -Resistant Steel Sheet, from China, Chinese Taipei, India and th e Republic of 
Korea. The CBSA made a final determination of dumping pursuant to paragraph 41(1)(b) of 
the SIMA on 22 January 2019.115 The CITT issued its decision, imposing AD duties, on 
21 February 2019;  
• Carbon Steel Welded Pipe 3 (CSWP), from Pakistan, th e Philippines, Turkey, and Viet Nam. 
The CBSA was satisfied that CSWP originating in, or exported by one exporter from Turkey 
had been dumped by an insignificant margin of dumping and terminated the dumping 
investigation in respect of the goods from this e xporter on 16 January 2019. The CBSA made 
a final determination of dumping in respect of CSWP originating in, or exported from, 
Pakistan, the Philippines, Viet Nam, and other exporters from Turkey on the same date.116 
The CITT issued its decision on 15 Febru ary 2019, imposing AD duties; and  
• 54-inch Gypsum Board, from the United States, which was terminated on 21 August 2018, 
as the CITT determined that the evidence did not disclose a reasonable indication that the 
dumping had caused injury or retardation, or  was threatening to cause injury, to the 
domestic industry, and terminated the preliminary injury inquiry.117  
 
3.87.   Also, in 2018, two products were the subject of multiple AD and CV investigations: Cold -Rolled 
Steel, from China, the Republic of Korea and Viet N am118, and Sucker Rods, from China, which were 
concluded on 31 October 2018119 and 14 November 2018, respectively.120 
3.88.   No anti -circumvention investigations had been initiated as of end  2018. On 26 July 2018, the 
CBSA initiated its first scope proceeding since the y were enacted into law, as a result of changes to 
the SIMA and the SIMR that came into force on 26 April 2018. The proceeding was in respect to 
certain fabricated industrial steel components (FISCs) from China, the Republic of Korea, and Spain. 
The scope proceeding was the result of an application filed with the CBSA by Woodfibre LNG Limited 
(Vancouver, British Columbia), a potential importer of the goods that are the subject of the 
application. The scope proceeding was set to establish whether or not liqu efied natural gas (LNG) 
modules were subject to the CITT 's injury finding issued on 25 May 2017 concerning the dumping 
of certain FISCs from China, the Republic of Korea (excluding those goods exported by Hanmaek 
Heavy Industries Co. Ltd.), and Spain (excluding those goods exported by Cintasa, S.A.), and the 
subsidizing of FISCs from China.121 This proceeding was concluded on 23 November 2018, and it 
was found that the goods were in scope. It was determined that the FISC portion of Woodfibre 's LNG 
module s, including pipe rack modules, were subject to the CITT 's finding issued on 25 May 2017, 
concerning the dumping of certain FISCs from China, the Republic of Korea (excluding those goods 
exported by Hanmaek Heavy Industries Co. Ltd.), and Spain (excluding those goods exported by 
Cintasa, S.A.), and the subsidizing of FISCs from China. Two other scope proceedings were also 
initiated, one concerning the same FISC measures, which was concluded in January 2019, and 
another concerning goods subject to the findin g of dumping and subsidizing of aluminium extrusions 
                                                
115 CBSA online information. Viewed at:  https://www.cbsa -asfc.g c.ca/sima -lmsi/i -e/cor2018/cor2018 -fd-
eng.html?wbdisable=true . 
116 CBSA online information. Viewed at: https:// www.cbsa -asfc.gc.ca/sima -lmsi/i -
e/cswp32018/cswp32018 -fd-eng.html?wbdisable=true . 
117 Consequently, the CB SA, pursuant to paragraph 35(2)(a) of the SIMA, terminated the investigation 
of dumping in res pect of certain 54 -inch Gypsum Board from the U nited States, effective 21 August 2018.  
CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/i -e/gb22018/gb22018 -ti-
eng.html . 
118 On 23 August 2018, the CBSA made preliminary determinations of dumping and subsidizing with 
respect to certain cold -rolled steel in coils or cut lengths from China, the Republic of Ko rea, and Viet Nam. The 
subject goods are usually classified under the following tariff classification numbers: 7209.15.00.00, 
7209.16.00.00, 7209.17.00.00, 7209.18.00.00, 7209.25.00.00, 7209.26.00.00, 7209.27.00.00, 
7209.28.00.00, 7209.90.00.00, 7211.23.00 .00, 7211.29.00.00, 7211.90.00.00, and 7225.50.00.00.  CBSA 
online information. Viewed at:  https://www.cbsa -asfc.gc.ca/sima -lmsi/i -e/crs2018/crs2018 -np-eng.html . 
119 On 31 October 2018, pursuant to paragraph 41(1)(b) of the SIMA, the CBSA made final 
determinations regarding  the dumping and subsidizing of certain cold -rolled steel in coils or cut lengths from 
China, the Republic of Korea,  and Viet  Nam. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/i -
e/crs2018/crs2018 -fd-eng.html . 
120 On 14 November 2018, pursuant to paragraph 41(1)(b) of the SIMA, the C BSA made final 
determinations regarding  the dumping and subsidizing of certain sucker rods originating in , or exported from , 
China.  Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/i -e/sr2018/sr2018 -fd-eng.html . 
121 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/sp -
pp/fisc2018/fisc2018 -ni-eng.html . WT/TPR/S/389 • Canada  
 
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  from China, which was concluded in February 2019. The latter responded to an application from 
Nokia Canada Inc. on 27 September 2018, as to whether the aluminium brackets included with its 
unassembled Ba se Transceiver Station (BTS) systems were subject to the CITT 's order in respect of 
certain aluminium extrusions from China, applied since 2009. On 26 October 2018, the CBSA 
initiated a scope proceeding with respect to the goods that were the subject of th e application. The 
CBSA made a scope ruling on 22 February 2019, that the aluminium brackets included with 
unassembled BTS systems imported by Nokia Canada Inc. are not subject to the CITT 's order issued 
on 17 March 2014, in Expiry Review No. RR -2013-003, concerning the dumping and subsidizing of 
certain aluminium extrusions from the People 's Republic of China.122 
3.89.   As of 31 December 2018, there were 83 definitive AD measures in place, compared to 
53 reported in the last TPR for December 2014 (Chart 3.5 and Tab le A3.1).123 Over two thirds  of the 
measures were applied on steel products; 12% were on other metal products; 8% were on 
agricultural products; and the remainder were on miscellaneous manufactured products.124 The 
measures were applied on 29 trading partners:  Belarus (1); Brazil (3); Bulgaria (1); China (23); the 
Czech Republic (1); Denmark (2); Germany (1); Greece (1); Hong Kong, China (1); India (2); 
Indonesia (2); Italy (1); Japan (3); the Republic of Korea (11); Mexico (1); the Netherlands (1); 
Oman (1); t he Philippines (1); Portugal (1); Romania (1); Spain (2); Chinese Taipei (4); Thailand 
(2); Turkey (4); Ukraine (3); the United Arab Emirates (1); the United Kingdom (1); the 
United  States (4); and Viet Nam (3). The average length of the AD measures in pla ce in 
December  2017 was 6.4 years, somewhat below the 7 years reported for December 2014 in the 
previous Review. However, the lower average is partly due to the increase in recent measures, since 
the longest measure, on potatoes from the United States, has  been in place for 34 years (since 
mid-1984), and the second -longest, on refined sugar from Germany, the Netherlands, the 
United  Kingdom and the United States, for 23 years.   
3.90.   Also, as of 31 December 2018, there were 28 CVD measures in place, compared with  
17 reported in the last Review for December 2014: 21 of them on steel (14 at December 2014) and 
metal products from China, 1 on imports of refined sugar from the European Union, 1 on pasta from 
Turkey, 2 on steel products from India, 2 on steel products f rom Viet Nam, and 1 on steel products 
from the Republic of Korea.125 The longest -lasting CVD measure is the one on refined sugar from 
the European Union, which has been in place since 1995. The average length of CVD measures as 
of end -August 2018 was 5.9  years. 
3.91.   The CITT is required (Subsection 76.03(2) of the SIMA), no later than two months prior to 
the expiry of a finding or an order, to issue a notice to all known interested persons and governments 
informing them of the impending expiry. The notice is publi shed in the Canada Gazette and is also 
posted on the Tribunal's website at www.citt -tcce.gc.ca/en/dumping -and-subsidizing/expiries . The 
notice invites interested persons and gov ernments to submit their views, within 25 days, on whether 
the finding or order should be reviewed. On the basis of these views, the CITT determines, on day 
50 of the expiry proceedings, whether an expiry (sunset) review of the finding or order is warrante d. 
The decision is also published in the Canada Gazette and the reasons for the CITT's decision are 
issued no later than 15 days following the decision, on day 65. The CITT's decision and reasons are 
also posted on its Web site.126 If the CITT finds that an expiry review is not warranted, it issues an 
                                                
122 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/sp -pp/ae2018/ae2018 -
sr-eng.html . 
123 Eight more AD measures were applied on February 2019, on Corrosion -Resistant Steel Sheet from 
Chinese Taipei, In dia and the Republic of Korea, respectively, and CSWP 3 from Pakistan, the Philippines, 
Turkey, and Viet Nam. CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/hist -
eng.html . 
124 The products subject to AD duties were: certain concrete reinforcing bars (9); certain hot -rolled steel 
sheet (3); certain copper tube (5); certain steel plate (11); certain steel fasteners (2); certain copper pipe 
fittings (4); certain seamle ss steel casing; certain carbon steel welded pipe (7); certain thermoelectric coolers 
and warmers; certain aluminium extrusions; certain oil country tubular goods (10); certain steel grating; 
certain pup joints; certain stainless steel sinks; certain steel  piling pipe; certain unitized wall modules; certain 
silicon metal; certain photovoltaic modules and laminates; certain carbon and alloy steel line pipe (2); certain 
large-diameter line pipe (2); certain fabricated industrial steel components (3); certain refined sugar (5); 
certain hollow structural sections (2); certain liquid dielectric transformers; certain gypsum board; certain cold -
rolled steel (3); certain dry wheat pasta; and certain sucker rods.  CBSA online information . Viewed at: 
https://www.cbsa -asfc.gc.ca/sima -lmsi/hist -eng.html . 
125 WTO document s G/SCM/N/328 /CAN, 26 March 2018, and G/SCM/N/334 /CAN, 19 September 2018; 
and CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/hist -eng.html . 
126 CITT online information. Viewed at: http://www.citt -tcce.gc.ca/en/Expiry_Review_Guidelines_e . WT/TPR/S/389 • Canada  
 
- 82 - 
 
  expiry review notice to that effect with reasons for its decision, and the finding or order expires 
five years from the date it was issued. If it determines that an expiry review of the finding or order 
is warranted, the CITT commences the expiry review proceedings by issuing a notice of expiry 
review, which includes a schedule of events, is published in the Canada Gazette and on its website, 
and is sent to the CBSA, to parties and to the counsel of record i n the expiry proceedings.  
Chart 3.5 Anti-dumping decisions and measures, 2010 -18 
 
Source:  CBSA. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/hist -eng.html . 
3.92.   The expiry review involves two distinct and subsequent investigations or steps, which must 
usually be completed in 310 days. The first investigation is conducted by the CBSA in the 
first 150 days to dete rmine the likelihood of continued or resumed dumping and/or subsidizing. The 
second investigation is conducted by the CITT in the final 160 days to determine the likelihood of 
injury or retardation caused by the continuation or resumption of dumping and/or  subsidizing as a 
result of the expiry. This second step is contingent on a CBSA finding that the removal of the measure 
is likely to lead to the continuation or resumption of dumping or subsidizing.  
3.93.   Upon receipt of a notice of expiry review, the CBSA is r equired to commence an investigation 
to determine whether the expiry of the finding or order is likely to result in the continuation or 
resumption of dumping and/or subsidizing; this determination must be made within 150 days from 
the initiation of expiry proceedings. At the end of this period, t he CBSA makes an Expiry Review 
Decision and a Statement of Reasons, which it submits to the CITT.  When making its decision, the 
CBSA must take into consideration information provided by parties, as well as: trade co mpliance 
data; import statistics; the results of its most recent re -investigation; market research; and the 
CITT's official record of its expiry proceedings. The reasons for the CBSA 's determination are issued 
within 15 days.  
3.94.   If the CBSA determines that t he expiry of the finding or order is likely to result in the 
continuation or resumption of dumping and/or subsidizing, the CITT then initiates an investigation 
to determine whether the expiry of the finding or order is likely to result in injury to the dom estic 
industry or retardation of the establishment of a domestic industry.  Generally, o n or about day 160, 
the CITT issues its order and reasons for its determination on whether the expiry of the finding or 
order is likely to result in injury to the domest ic industry or retardation of the establishment of a 
domestic industry. If it determines that the expiry of the finding or order is likely to result in injury 
to the domestic industry or retardation of the establishment of a domestic industry, it issues an  
order continuing the finding or order, with or without amendment, for up to five years or until a 
request for an interim review is filed with the CITT within that five -year period. AD and/or CV duties 
continue to be collected while the order is in effect.  If the CITT determines that the expiry of the 
4
114
10
613
517
12
3
110
7
613
310
7
024681012141618
2010 2011 2012 2013 2014 2015 2016 2017 2018
Decisions MeasuresChart 3.[CAN] Anti -dumping decisions and measures, 2010 -2018
(number)
Source:   CBSA. Viewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/hist -eng.htmlWT/TPR/S/389 • Canada  
 
- 83 - 
 
  finding or order is not likely to result in injury to the domestic industry or retardation of the 
establishment of a domestic industry, it issues an order rescinding the finding or order, which is 
usually effe ctive at the end of the five -year expiry period. AD or CV duties collected between the 
date of the five -year expiry and the date of the rescission are refunded by the CBSA.127 
3.95.   During the 2015 -18 period, there were 55 expiry (sunset) review initiations: 15 (12 AD and 
3 CVD) in 2015, 6 (4 AD and 2 CVD) in 2016, 13 (10 AD and 3 CVD) in 2017 and 21 (15 AD and 
6 CVD) in 2018 (Table 3.18).  As of 31 December 2018, 36 of the reviews had been concluded and 
in 33 cases the AD/CV duties were continued, albeit in 5 cases some products were excluded from 
the order.128 The measures were rescinded in three cases (greenhouse bell peppers from the 
Netherlands and hot -rolled carbon steel sheet from Chinese Taipei and India).  
Table 3.18 Expiry reviews conducted between 2015 and 2018  
Case  Status/conclusion  
2018   
- Hot-Rolled Carbon Steel Plate 
and High -Strength Low -Alloy 
Steel Plate: dumping  (Bulgaria, 
Czech Republic and Romania)  The CITT issued its notice of expiry review on 27 December 2018. The CBSA 
determination is expected on 24 May 2019. The CITT is expected to issue its 
order by 4 November 2019.  
- Structural Tubing: dumping 
(Republic  of Korea and Turkey)  The CITT issued its notice of expiry review on 10 December 2018. The CB SA 
determination is expected on 9 May 2019. The CITT is expected to issue its 
order by 16 October 2019.  
- Circular Copper Tube: dumping 
(Brazil, China, Greece, Republic 
of Korea and Mexico) and 
subsidy (China)  The CITT issued its notice of expiry review on 20 November 2018. The CBSA 
determination is expected on 18 April 2019. The CITT is expected to issue its 
order by 30 September 2019.  
- Thermoelectric Containers 
(China)  The CITT issued its notice of expiry review on 30 October 2018. The CBSA 
determination i s expected on 29 March 2019. The CITT is expected to issue 
its order by 5 September 2019.  
- Silicon Metal (China)  The CITT issued its notice of expiry review on 16 October 2018. The CBSA 
determination is expected on 15 March 2019. The CITT is expected to issue 
its order by 22 August 2019.  
- Unitized Wall Modules: dumping 
and subsidy (China)  The CITT issued its notice of expiry review on 27 August 2018. The CBSA 
determination is expected on 24 January 2019. The CITT is expected to make 
its decision by 3 July  2019.  
- Carbon Steel Welded Pipe 1: 
dumping and subsidy (China)  The CITT issued its notice of expiry review on 19 January 2018. On 
21 June 2018, the CBSA determined that the expiry of the order was likely to 
result in the continuation or resumption of dum ping and/or subsidizing of the 
goods.  
On 22 June 2018, the CITT began its investigation. On 28 November 2018, 
the CITT determined that, if the finding was rescinded, the likely resumption 
or continuation of the dumping and subsidizing of the subject goods would 
likely cause material injury to the domestic industry.  Order continued.  
- Seamless Casing: dumping and 
subsidy (China)  The CITT issued its notice of expiry review on 19 January 2018. The CBSA 
determination on 21 June 2018 indicated that the expiry of  the order was 
likely to result in the continuation or resumption of dumping and subsidizing 
of the goods.  
The CITT investigation started on 22 June 2018. On 28 November 2018, the 
CITT determined that, if the finding was rescinded, the likely resumption o r 
continuation of the dumping and/or subsidizing of the subject goods would 
likely cause material injury to the domestic industry. Order continued.  
2017   
- Carbon Steel Welded Pipe 2: 
dumping (Chinese Taipei, India, 
Oman, Republic of Korea, 
Thailand and United Arab 
Emirates); CV (India)  On 7 May 2018, the CBSA made a determination that the expiry of the order 
would lead to the continuation or resumption of d umping of certain carbon 
steel welded pipe originating in, or exported from, Chinese Taipei (excluding 
goods exported from Chinese Taipei by Chung Hung Steel Corporation and 
Shin Yang Steel Co. Ltd), India, Oman, the Republic of Korea, Thailand, and 
the Un ited Arab Emirates (excluding goods exported from the United Arab 
Emirates by Conares Metal Supply Ltd.); and the continuation or resumption 
of subsidizing of certain carbon steel welded pipe originating in, or exported 
from, India.  
The CITT investigation started on 8 May 2018.  On 15 October 2018, the CITT 
determined that, if the finding was rescinded, the likely resumption or 
continuation of the dumping and subsidizing of the subject goods would likely 
cause material injury to the domestic industry.  Order continued.  
                                                
127 CITT online information. Viewed at: http://www.citt -tcce.gc.ca/en/Expiry_Review_Guidelines_e . 
128 Copper Pipe Fittings, Refined Sugar, Whole Potatoes, Plate 6 , and Fasteners . WT/TPR/S/389 • Canada  
 
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  Case  Status/conclusion  
- Hot-rolled Carbon Steel Plate 3: 
dumping (China)  On 2 March 2018, the CBSA determined that the expiry of the finding was 
likely to result in the continuation or resumption of dumping and subsidizing 
of such goods originating in, or exported fro m, China.  
The CITT investigation started on 3 March 2018. On 9 August 2018, the CITT 
determined that, if the finding was rescinded, the likely resumption or 
continuation of the dumping and subsidizing of the subject goods would likely 
cause material injury  to the domestic industry.  Order continued.  
- Steel Piling Pipe: dumping and 
subsidy (China)  On 25 January 2018, the CBSA determined that the expiry of the order was 
likely to result in the continuation or resumption of dumping and of 
subsidizing of such goods originating in, or exported from, China.  
The CITT investigation started on 26 January 2 018. On 4 July 2018, the CITT 
determined that, if the finding was rescinded, the likely resumption or 
continuation of the dumping and subsidizing of the subject goods would likely 
cause material injury to the domestic industry.  Order continued.  
- Liquid Die lectric Transformers: 
dumping (Republic of Korea)  On 22 December 2017, the CBSA determined that the expiry of the order was 
likely to result in the continuation or resumption of dumping of the subject 
goods to Canada.  
The CITT investigation started on 23 December 2017. On 31 May 2018, the 
CITT determined that, if the finding was rescinded, the likely resumption or 
continuation of the dumping of the subject goods would likely cause material 
injury to the domestic industry. Order continued.  
- Stainless Steel Sinks: dumping 
and subsidizing (China)  On 1 September 2017, the CBSA determined that the expiry of the finding 
was likely to result in the continuation or resumption of dumping and 
subsidizing of such goods originating in, or exported from, China.  
The CIT T investigation started on 2 September 2017. On 8 February 2018, 
the CITT determined that, if the finding was rescinded, the likely resumption 
or continuation of the dumping and subsidizing of the subject goods would 
likely cause material injury to the dom estic industry. Order continued.  
2016   
- Pup Joints: dumping and CV 
(China)  On 7 April 2017, the CITT determined that, if the finding was rescinded, the 
likely resumption or continuation of the dumping and subsidizing of the 
subject goods would likely cause material injury to the domestic industry. 
Order continued.  
- Copper Pipe Fittings: dumping 
(China, Republic of Korea, and 
United States); and CV (China)  On 28 November 2016, the CITT determined that the order would be continued 
with amendment  to certain products originating in, or exported from, China, 
the Republic of Korea and the United States. The list of products covered by 
the order was included in an appendix. The CITT excluded from its orders 
certain copper -iron high -pressure alloy fittings. Or der continued with 
amendment.  
2015   
Hot-rolled Carbon Steel Sheet: 
dumping (Brazil, China, Chinese 
Taipei, India and Ukraine); and CV 
(India)  On 6 April 2016, the CITT determined that it would continue its orders with 
respect to the dumping of the subject goods from Brazil, China, Ukraine, and 
with the subsidizing of the subject goods from India, but that it would rescind 
its order concerning the subject goods from Chinese Taipei and India following 
the determination of the CBSA that the expiry of t he orders is unlikely to 
result in the continuation or resumption of dumping.  
Steel Grating: dumping and CV 
(China)  On 18 April 2016, the CITT determined that, if the finding was rescinded, the 
likely resumption or continuation of the dumping and subsidi zing of the 
subject goods would likely cause material injury to the domestic industry. 
Order continued.  
Refined Sugar: dumping (United 
States, Denmark, Germany, 
Netherlands, United Kingdom); and 
CV (European Union)  On 30 October 2015, the CITT decided to  continue its order in respect of the 
dumping of the subject goods originating in, or exported from, Denmark, 
Germany, the Netherlands and the United Kingdom, and the subsidizing of the 
aforementioned goods originating in, or exported from, the European Un ion. 
The CITT also continued its order in respect of the dumping of the subject 
goods originating in, or exported from, the United States.  
The CITT excluded from its orders specialty -coloured decorative sugar crystals 
in granulated form combined with carna uba wax and food colouring matter, 
imported in small retail -ready containers not exceeding 16 oz. for use 
exclusively as a superficial decoration in baked goods (such as pies, cakes, 
pastries, muffins, cookies, etc.) and other prepared foods.  
Greenhouse B ell Peppers: dumping 
(Netherlands)  On 16 October 2015, the CITT rescinded its finding in respect of greenhouse 
bell peppers originating in, or exported from, the Netherlands. Order 
rescinded.  
Source:  CBSA online information, and information provided by the authorities.  WT/TPR/S/389 • Canada  
 
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  3.96.   There were 45 administrative reviews (39 re -investigations129 and 6 normal value reviews)130 
to update normal values and export prices during 2015 -18.131  
3.97.   Under Section 76.01 of the SIMA, the CITT may conduct interim reviews of its findings of 
injury, threat of injury or retardation, and of the subsequent orders, and of orders continuing such 
findings pursuant to an expiry review, in whole or in part, at any time between the making of the 
finding or order and its expiry. At the conclusion of an interim review, the CITT may continue the 
finding or order, or rescind it or any aspect of it. The interim review may be self -initiated by the 
CITT or initiated following a properly -documented request. There are two phases in a review; in the 
commencement phase, the CITT decides whether there have been new facts or changes in 
circumstances since the issuance of the finding or order to warrant the conduct of an interim 
review.132 If the CITT finds that the conduct of an interim review is warranted, it commence s the 
second phase by issuing a notice of commencement of interim review. In the (second) review phase, 
the CITT determines whether the finding or order (or any aspect of it) should be rescinded or 
continued, with or without amendment, and issues reasons f or its decision.133 During the 2014 -2018 
period, there were six requests for interim reviews. In one case, the findings of the expiry review 
with respect to injury were upheld  with amendments134; in four others, the requests were rejected, 
as the CITT decided that no review or amendment was needed135; and in one case, the CITT 
rescinded its order.136   
3.98.   Canadian legislation allows the appeal of a duty assessment made by the CBSA and the 
eventual refund of duties in three situations: (i) error by the CBSA; (ii) overp ayment of duties; or 
(iii) when a recent scope ruling applies to past importations.137 In these cases, a request for 
re-determination must be presented. The process to make a request under all three situations is 
similar, but there are additional requirement s when the request is based on a scope ruling. Before 
submitting a request for re -determination, the importer must pay the duties originally determined. 
A request for a re -determination may cover: (a) whether the imported goods are of the same 
description as the goods to which the order or finding of the CITT applies; and/or (b) the information 
                                                
129 Re-investigations are conducted to update normal values, export prices or amounts of subsidy , and 
to establish values for new exporters or new models . They  are conducted periodically, often on an ann ual 
basis, to ensure that the values in place accurately reflect current market conditions. Procedures followed 
during a re -investigation are similar to those of an investigation except the re is no re consideration of injury.  
CBSA online information. Viewed  at: https://www.cbsa -asfc.gc.ca/publications/dm -md/d14/d14 -1-8-eng.html . 
130 Procedures followed during a normal review are similar to those of a re -investigation with the 
exception that each review is conducted with respect to a single exporter only. CBSA online information. 
Viewed at: https://cbsa -asfc.gc.ca . 
131 2015: Steel Grating, dumping and subsidy (China); Seamless Casing, dumping  and subsidy (China); 
Oil Country Tubular Goods 1, dumping and subsidy (China); Pup Joints, dumping and subsidy (China); Oil 
Country Tubular Goods 2, dumping (India, Indonesia, Republic of Korea, Philippines, Chinese Taipei, Thailand, 
Turkey, Ukraine, and Viet Nam); Hot -rolled Carbon and Alloy Steel Sheet and Strip, dumping (Brazil, China, 
India, Chinese Taipei, and Ukraine) and subsidy (India); and Copper Pipe Fittings, dumping (China, Republic of 
Korea, and the United States) and subsidy (China); 2016: Co ncrete Reinforcing Bar 1, dumping (China, 
Republic of Korea, and Turkey) an d subsidy (China); and Stainless Steel Sinks, dumping and subsidy (China); 
2017: Liquid Dielectric Transformers, dumping (Republic of Korea); Concrete Reinforcing Bar 1, dumping 
(China, Republic of Korea, and Turkey) and subsidy (China); Concrete Reinforcing Bar 1, dumping (China, 
Republic of Korea, and Turkey) and subsidy (China); and Concrete Reinforcing Bar 2, dumping (Belarus ; 
Hong Kong, China; Japan ; Portugal ; Spain ; and Chinese  Taipei); and 2018: Gypsum Board, dumping 
(United  States); Concrete Reinforcing Bar 1, Normal Value Review, dumping (Turkey (2)); Oil Country Tubular 
Goods 2. Normal Value Review, dumping (Indonesia (1), Philippines (1)); Carbon and Alloy Steel Line Pipe 2 , 
Normal Value Review, dumping (Republic of Korea (1)); and Liquid Dielectric Transformers, Normal Value 
Review, dumping (Republic of Korea (1)).  
132 If the CITT self -initiates the review, there is no commencement phase. CITT, Guidelines on Interim 
Reviews . Viewed at:  http://www.citt -tcce.gc.ca/en/Interim_Review_Guidelines_e . 
133 CITT, Guidelines on Interim Reviews . Viewed at: http://www.citt -
tcce.gc.ca/en/Interim_Review_Guidelines_e . 
134 Two orders on Certain Carbon Steel Fasteners  from China and Chinese Taipei (dumping). Viewed at: 
http://www.citt.gc.ca/en/dumping -and-subsidizing/interim -reviews -section -7601.  
135 Liquid Dielectric Transformers from Republic of Korea;  Hot-rolled Carbon Steel Plate  (multiple 
Orders) ; Oil Country Tubular Goods  from Chinese Taipei, India, Indonesia, Republic of Korea, the Philippines, 
Thailand, Turkey, Ukraine and Viet  Nam; and Pup Joints  from China . 
136 Bicycles and Bicycle Frames from China and Chinese Taipei . 
137 CBSA online information. Vi ewed at: https://www.cbsa -asfc.gc.ca/sima -lmsi/rrd -drr-
eng.html?wbdisable=true . WT/TPR/S/389 • Canada  
 
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  used in the assessment of AD or CV duties payable on imported goods, such as the determination 
of the normal value, the amount of the subsidy, or the export price.138  
3.99.   Importers may request a re -determination at two levels: the first level of review for a 
determination is made by a designated officer; the second level of review is a re -determination by 
the President of the CBSA, with respect to any determination or re -determination made by the 
designated officer.139 The President 's re-determination may be further appealed to the CITT. The 
request for re -determination at the first level must be filed within 90 days of the designated officer 's 
decision.140 A request for re -determination by the President of the CBSA (second level) must be filed 
within 90 days of a determination or re -determination.141 A request may result in the assessment of 
additional duty; in this case, interest on the amount owing is charged. Failure to pay th e total amount 
assessed within 30 days of the date of decision will result in additional interest charges issued under 
the Customs Act. If, on the other hand, a re -determination results in a refund of all or part of the 
duty paid, the CBSA issues a Detaile d Adjustment Statement (DAS) and returns the excess duty 
paid, with the due interest.  
3.100.   AD measures against Chile are prohibited under Canada 's FTA with that country.  
3.1.6.2   Safeguards  
3.101.   The CITT is the body in charge of conducting global safeguard inquiries, exclus ion inquiries, 
mid-term reviews and extension inquiries pursuant to the CITT Act, the CITT Regulations and the 
CITT Rules. The CITT may initiate a global safeguard inquiry following a written complaint by a 
domestic producer, or if ordered by the Governmen t.142 The CITT then initiates a safeguard inquiry 
to determine if increased fairly -traded imports of goods into Canada are causing, or are threatening 
to cause, serious injury to domestic producers of like or directly competitive goods. The CITT may 
not cons ider initiating a safeguard inquiry if it believes the injury to the domestic producers is caused 
by an unfair trade practice, such as the dumping and/or subsidizing of imports. In such a case, it 
suspends its proceedings and refers the matter to the CBSA.  In the case of a standard safeguard 
inquiry, the CITT has 180 days to conduct the investigation. However, that statutory deadline can 
be extended to 270 days in complex cases, after which it must submit a report to the Government 
setting out its determina tion. Where the Government orders that the CITT conduct an investigation, 
the time -frame is set in the Order. The Federal Government retains the ultimate power to make the 
final decision on the application of a safeguard measure, under the authority of Sec tion 55 of the 
Customs Tariff Act.  
3.102.   If the CITT determines that increased fairly -traded imports of goods are causing, or are 
threatening to cause, serious injury to domestic producers of like or directly competitive goods, it 
may recommend that the Federal  Government apply safeguard measures. The CITT must also 
determine if the goods being imported from a country with which Canada has entered into a bilateral 
FTA, which in principle should be excluded from any global safeguard measure, are substantial and 
contribute to the serious injury. In this respect, a  global safeguard measure will apply to goods 
imported from an FTA partner only if the Government is satisfied that the quantity of those goods 
represents a substantial share of the total imports of goods of the same kind143, and the quantity of 
these goods contributes importantly to serious injury (Customs Tariff Act, Section 59).  In exceptional 
circumstances, imports from NAFTA countries may be considered jointly for the purpose of 
determining whether they contribute to serious injury.144 The Federal Government may apply 
                                                
138 Memorandum D14 -1-3. Viewed at: https://www.cbsa -asfc.gc.ca/publications/dm -md/d14/d14 -1-3-
eng.html . 
139 Memorandum D14 -1-3. Viewed at : https://www.cbsa -asfc.gc.ca/publications/dm -md/d14/d14 -1-3-
eng.html . 
140 Or 120 days of the date of  accounting for the transaction, if the  importer or its agent self -assessed 
the AD or CV duties. CBSA, Guide for Appealing a Duty Assessment . Viewed at: https://www.cbsa -
asfc.gc.ca/sima -lmsi/rrd -drr-eng.html . 
141 CBSA, Guide f or Appealing a Duty Assessment . Viewed at: https://www.cbsa -asfc.gc.ca/sima -
lmsi/rrd -drr-eng.html . 
142 CITT online information. Viewed at: http://www.citt -tcce.gc.ca/en/Safeguard_Guidelines_e . 
143 Typically, the trading partner must be among the top five suppliers , as measured in terms of import 
share during the most recent three -year period . 
144 Article 802  of the NAFTA (Global Actions)  provides for the exclusion of one party' s goods from 
another party' s global safeguard actions unless imports from that party account for a substantial share of total WT/TPR/S/389 • Canada  
 
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  safeguard measures in the form of an import surtax pursuant to the Customs Tariff, or in the form 
of a restriction (import quota or TRQ) pursuant to the Export and Import Permits Act.  
3.103.   Canadia n legislation does not set any statutory deadline for the application of safeguard 
measures. However, under the WTO Agreement on Safeguards, global safeguard measures may be 
applied for an initial period of up to four years and are to be progressively libe ralized during their 
period of application. Safeguards can be extended, if the CITT determines that they are still 
necessary to remedy serious injury or threat thereof and that there is evidence that domestic 
producers are adjusting to the import competiti on. In line with WTO rules, their maximum period of 
application is eight years. The CITT also conducts mid ‑term reviews to determine if safeguard 
measures should remain in effect, be repealed or be amended; for measures scheduled to remain 
in effect for more than three years, this mid -term review is a requirement. Following a request by a 
domestic producer, the CITT may also conduct extension inquiries to determine if safeguard 
measures due to expire are still necessary.  
3.104.   The CITT Act contains provisions r elating to bilateral safeguard inquiries under the various 
bilateral FTAs to which Canada is a signatory. In a bilateral safeguard inquiry, the CITT must 
determine if, because of the tariff reductions provided for in the FTA, imports from the partners are 
in such increased quantities and under such conditions as to cause, or threaten to cause, serious 
injury to domestic producers of like or directly competitive goods. Safeguard measures, if applied, 
are limited to the temporary suspension of tariff reductio ns or the restoration of the MFN tariff rates. 
Measures may be applied for up to three years, followed, in some cases, by a one -year phasing -out 
period. As with global safeguards, the Federal Government retains the ultimate power to make the 
final decision  on the application of a safeguard measure. Depending on the agreement, a measure 
can typically be applied for up to two to three years, with the possibility, in some cases, of an 
extension for an additional one to two years.  
3.105.   CITT findings in safeguard in vestigations and safeguard measures imposed under the 
Customs Tariff may be subject to judicial review in the Federal Court of Canada.  
3.106.   On 11 October 2018, Canada announced preliminary safeguard measures on seven steel 
products (Section 4.3.4) to begin on 25 October 2018 and to be in place for 200 days, pending an 
inquiry by the CITT into whether longer -lasting safeguards are necessary. Prior to that, Canada 's 
last safeguard inquiry dates from 2005.145 In February 2019, Canada notified modifications to the 
provisional safeguards on imports of certain steel products resulting from consultations with 
Mexico.146 
3.1.7   Other measures affecting imports  
3.107.   On 31 May 2018, following the result of an investigation under Section 232 of the ( U.S.) 
Trade Act of 1974, the United Sta tes announced its decision to impose tariffs on imports of certain 
steel and aluminium products from Canada and other trading partners, at the rates of 25% and 
10%, respectively, as of 1 June 2018. Canada challenged the U.S. tariffs in the WTO, requesting 
consultations on 1 June 2018. On 18 October 2018, Canada requested the establishment of a panel, 
and on 21 November 2018, a panel was established.  
3.108.   In response to the U.S. measures, Canada imposed countermeasures in the form of surtaxes 
against CAD 16.6 bil lion in imports of steel, aluminium, and other products from the United States, 
representing the value of 2017 Canadian exports affected by the U.S. tariffs. These countermeasures 
will remain in place until the United States eliminates its trade -restrictiv e measures against Canadian 
steel and aluminium products. The surtaxes were imposed under two Orders: the United States 
Surtax Order (Steel and Aluminium): SOR/2018 -152, Canada Gazette, Part II, Volume 152, 
Number  14, 28 June 2018; and the United States Su rtax Order (Other Goods): SOR/2018 -153, 
Canada Gazette, Part II, Volume 152, Number 14, 28 June 2018. The Orders came into force on 
1 July 2018.  
                                                
imports  and contribute importantly to the serious injury  (or threat thereof). See also CITT, Safeguard Inquiry 
Guidelines . Viewed at: http://www.citt -tcce.gc.ca/en/Safeguard_Guidelines_e.  
145 WTO documents G/SG/N/6/CAN/4, G/SG/N/7/CAN/1, G/SG/N/11 /CAN/1, 15 October 2018.  
146 WTO documents G/SG/N/7/CAN/1/Suppl.1, 5 February 2019.  WT/TPR/S/389 • Canada  
 
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  3.109.   The United States Surtax Order (Steel and Aluminium) establishes surtaxes of 25% on 
imports from the U.S. of steel products classified under 131 tariff items, covering CAD 5.59 billion 
in imports from the United States in 2017, and surtaxes of 10% on imports from the United States 
of aluminium classified under 19 tariff items covering CAD 2.66 billion in imports fr om the 
United  States in 2017.  
3.110.   The United States Surtax Order (Other Goods) establishes surtaxes of 10% on imports from 
the United States of other products (e.g. mainly finished consumer goods, such as whiskies and 
playing cards) classified under 79 tariff items, covering CAD 8.31 billion in imports from the 
United  States in 2017.  
3.111.   The surtaxes are calculated on the basis of the value for duty of the imported goods, as 
determined in accordance with Sections 47 to 55 of the Customs Act; they apply in addition to any 
applicable customs duty imposed under the Customs Tariff.147 
3.112.   In accordance with SOR/2018 -152 and SOR/2018 -153, the objective of these 
countermeasures is to encourage a prompt end to U.S. tariffs on Canadian steel and aluminium 
exports to the United St ates, which significantly impact Canada 's steel and aluminium industries and 
threaten to undermine the integrity of the global trading system. The SORs noted that, should the 
United States eliminate the measures taken under Section 232 against Canada, thes e 
countermeasures will be repealed immediately.148  
3.113.   The application of the countermeasures was challenged by the United States in the WTO. On 
16 July 2018, the United States requested consultations with Canada concerning the "imposition by 
Canada of increase d duties with respect to certain products originating in the United States ". On 
19 October 2018, the United States requested the establishment of a Panel.149 
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.114.   As with imports, Canadian bu sinesses exporting goods to other countries must hold an 
import -export programme account. The Canad ian Border Services Agency uses the account number 
(RM account identifier) to process customs documents. Exported goods require reporting primarily 
to contro l the export of restricted items, to collect accurate trade statistics, and to control the 
outbound movement of goods in transit through Canada. A paper -based export declaration (Form 
B13A) is submitted to the Canada Border Service Agency (CBSA) by the exp orter or a third party 
(e.g. customs broker or freight forwarder) on the exporter 's behalf. However, the exporter of record, 
whose business number appears on the declaration, remains liable for the accuracy of all information 
provided to the CBSA. Clients of the CBSA may report exports electronically using the Canadian 
Automated Export Declaration (CAED). Exports may also be declared electronically through the G7 
Electronic Data Interchange (EDI) Export Reporting System.  
3.115.   The minimum time -frame for the prior  reporting of export shipments varies according to the 
mode of transport. Exporters of bulk or homogeneous goods may attach the Summary Reporting 
Program, which allows the filing of monthly summaries of transactions after the goods have been 
exported. Vari ous exemptions apply to the reporting requirement for non -restricted goods, e.g. for 
commercial goods valued at less than CAD 2,000, personal and household effects, personal gifts, 
and goods removed from a bonded warehouse or sufferance warehouse. Export d eclarations are not 
required for restricted or non -restricted goods destined for the United States . Export permits for 
restricted goods must be provided to the designated office closest to the place of exit of the goods 
from Canada or to any other authoriz ed place indicated on the permit within the stipulated 
time-frame relevant to the mode of transportation.  
                                                
147 United States Surtax Order ( Other Goods ): SOR/2018 -153, Canada Gazette, Part II, Volume 152, 
Number 14, 28 June 2018. Viewed at: https://laws -lois.justice.gc.ca/PDF/SOR -2018-153.pdf . 
148 United States Surtax Order (Steel and Aluminum): SOR/2018 -152, Canada Gazette, Part II, Volume 
152, Number 14, 28 June 2018. Viewed at: http://www.gazette.gc.ca/rp -pr/p2/2018/2018 -07-11/html/sor -
dors152 -eng.html . 
149 WTO document WT/DS557/2, 19 October 2018.  WT/TPR/S/389 • Canada  
 
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  3.2.2   Export taxes, charges, and levies  
3.116.   The Export Act (R.S.C., 1985, c. E -18) authorizes the Governor in Council to impose export 
duties on certain ores an d metals. Should Canadian timber, lumber or wood products face import 
duties in foreign countries, the Act also allows the Governor to proclaim export duties on logs and 
pulpwood products sold to these markets. However, no export taxes, charges or levies h ave been 
imposed with reference to this Act so far.  
3.117.   Canada applied export restraints in certain market conditions on certain softwood lumber 
products exported to the United States in accordance with the 2006 Canada -United States Softwood 
Lumber Agreement,  for nine years. However, the bilateral agreement expired on 12 October 2015, 
and the export restraints are no longer in effect.150 U.S. AD and CV measures on softwood lumber 
products from Canada are currently subject to WTO dispute settlement proceedings (D S533 and 
DS534).  
3.118.   Excise stamps are affixed to tobacco products manufactured in Canada or imported for the 
domestic market, as proof that the applicable excise duty has been paid. For tobacco products 
manufactured in Canada for export, a special duty, equivalent to the excise duty applicable in the 
domestic market, is levied to reduce the incentive to smuggle unstamped goods back into Canada. 
Prescribed brands not typically sold in Canada are relieved. This applies to manufacturers that export 
no more t han 1.5% of their production.151 The special duty may be refunded if the manufacturer is 
able to demonstrate that the exported goods have entered a foreign market for consumption and 
have been subjected to taxation there. Exported tobacco products beyond thi s 1.5% limit must be 
stamped, and they are subject to the federal excise duty for tobacco products sold in Canada as well 
as a special duty of CAD 19.1448 per 200 cigarettes or tobacco sticks, and CAD 5.98275 
per 50 grams (or fractions thereof) for other t obacco products. No refund is available in respect of 
special duty payable on exports of stamped tobacco products.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.119.   The Exports and Imports Permits Act (EIPA), first enacted in 1947, constitutes the principa l 
legal basis for Canada 's export control regime. For exports, the EIPA authorizes the Governor in 
Council to establish an Export Control List (ECL), an Area Control List (ACL), and an Automatic 
Firearms Country Control List (AFCCL). The ECL lists goods and technology that require an export 
permit. Countries listed on the ACL require a permit prior to the export of any goods and technology, 
whether they are listed on the ECL or not. The Export Permit Regulations (EPR) stipulate how permits 
may be obtained , whether transaction -based (Individual Permit) or in facilitated treatment (General 
Permit). Canada 's export controls are administered by the Trade Controls Bureau at Global Affairs 
Canada and are enforced by the CBSA and the Royal Canadian Mounted Police . Global Affairs Canada 
reports annually to Parliament on developments in the administration of the EIPA.152  
3.120.   Exporters may apply electronically for export permits or certificates, or request 
amendments, through Export Controls Online (EXCOL) or the Export a nd Import Control System 
(EICS), or by fax or regular mail. The EICS, which is used for applications, approvals, and processing 
of non -strategic controlled goods, also includes quota management functions. EXCOL is used to 
submit applications for export per mits of military and strategic dual -use goods. EXCOL may also be 
used, for example, to seek advisory opinions on whether an item would appear to fall within the 
scope of the ECL. Recognized users of EXCOL may also submit quarterly utilization reports for 
military goods and print selected documents at their premises. There are currently in excess of 
4,200  EXCOL users.  
3.121.   The main items subject to export controls by Canada include military and strategic dual -use 
goods; nuclear energy materials and technology; a nd missile, chemical or biological goods of 
                                                
150 The Softwood Lumber Products Export Charge Act, 2006 remains in force for admin istrative purposes 
(late filings, corrections, appeals, etc.).  
151 The quantity is determined according to the manufacturer's production in the preceding calendar 
year.   
152 The report for 2017 is available at: http://www.international.gc.ca/controls -controles/report -
rapports/2017.aspx?lang=eng . WT/TPR/S/389 • Canada  
 
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  non-proliferation concern.153 Most items on the ECL derive from Canada 's commitments to 
like-minded countries which participate in multilateral export control regimes, or from Canada 's 
international obligations as a signatory to multilateral or bilateral agreements. The export of other 
types of goods and certain activities may also be subject to United Nations trade sanctions or arms 
embargoes against particular countries or regions.  
3.122.   Canada also controls exports of  miscellaneous non -strategic goods, such as softwood 
lumber, unprocessed logs, rough diamonds, and certain agricultural, textile or other items with 
medical value. Many of the non -strategic items on Canada 's Export Control List are there to ensure 
the orde rly marketing of the commodity. In the case of rough diamonds, Canada 's international 
commitments to the Kimberly Process Certification Scheme (elimination of conflict diamonds) are 
fulfilled through the Export and Import of Rough Diamonds Act. Many of the  permits issued in 
connection with ECL and ACL controls are delivered free of charge, while others may be subject to 
a nominal fee.  
3.123.   The orderly marketing of certain textiles and clothing exports to the United States under 
NAFTA is ensured through the issu ance of mandatory Certificates of Eligibility, and exports of refined 
sugar, sugar -containing products and peanut butter are controlled to comply with U.S. import 
quotas.154 Goods and technologies of U.S. origin require individual export permits when resold to 
countries subject to U.S. export restrictions and sanctions, such as Cuba, Iran, and the Democratic 
People 's Republic of Korea. The ECL was amended in September 2017 to implement origin quotas 
stemming from the provisional application of the Comprehensi ve Economic and Trade Agreement 
(CETA) between Canada and the EU. Export permits are henceforth needed when preferential tariff 
treatment is claimed in the EU market for goods such as high -sugar containing products, sugar 
confectionery and chocolate prepar ations, processed foods, dog and cat food, vehicles, and specific 
apparel goods for export marketing purposes.  
3.124.   Canada applies sanctions and related measures against certain countries, including 
individuals and entities associated with terrorist activities . These actions are taken under the 
United  Nations Act, the Special Economic Measures Act, or the Justice for Victims of Corrupt Foreign 
Officials Act. The precise measures are laid down in individual regulations.155 Belarus was removed 
from the ACL in June 2017, and the only country listed in Canada 's ACL on it at present is the 
Democratic People 's Republic of Korea.  
3.2.4   Export support and promotion  
3.125.   Canada has a government -based export promotion system, comprising an array of 
programmes that function more or le ss independently. Numerous export promotion initiatives are in 
place at federal, regional and provincial levels. Among the trade advisory services provided, 
businesses are assisted in their preparations to penetrate international markets, network and 
busin ess contacts are made available, and business -related problems and market access issues are 
addressed. Global Affairs Canada coordinates foreign -trade -related activities, whereas domestic 
responsibilities are conducted through Innovation, Science and Econo mic Development Canada. 
Within the network of supporting agencies and organizations (public and private), the Trade 
Commissioner Service (TCS) holds the most prominent position.  
3.126.   Part of Global Affairs Canada, the TCS operates domestically out of five regi onal office hubs 
and 26 Client Service Satellites co -located with partners in every province or territory. The TCS has 
increased its worldwide reach over the years, and currently maintains on -the-ground presence in 
161 cities around the world.  
3.127.   The TCS org anizes sector -specific, targeted trade missions to priority markets, and helps 
Canadian businesses access global value chains and networks of foreign contacts. Its core lines of 
operation are the promotion of export sales and acting as a consultant to exis ting and potential 
                                                
153 Detailed information on the export control regime is available in handbook format at: 
http://www.international.gc.ca/controls -controles/export -exportation/exp_ctr_handbook -manuel_ctr_exp -
p2.aspx?lang=e ng#d_1 . 
154 The Certificates of Eligibility are not considered export permits, and textiles and clothing products are 
thus not enumerated in the ECL.  
155 Global Affairs Canada online information.  Viewed at: http://www.international.gc.ca/world -
monde/international_relations -relations_internationales/sanctions/curr ent-actuelles.aspx?lang=eng . WT/TPR/S/389 • Canada  
 
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  exporters in all operative phases including marketing, the identification of opportunities, competitive 
market assessment, and the establishment of foreign contacts. Clients of the TCS, predominantly 
SMEs, receive these services free of charge, as long as they maintain meaningful economic ties to 
Canada, demonstrate a capacity for internationalization, and contribute to Canada 's economic 
growth. Approximately 15,000 exporters use the services and know -how offered by the TCS every 
year. Th e TCS also assists foreign companies investing in Canada. Global Affairs Canada 
expenditures, under its International Commerce Business line, amounted to CAD 164.4 million 
during FY 2016/17, and the TCS disbursed an estimated CAD 53.0 million under various  programmes 
between 2014 and 2018 (Table 3.19). The Departmental Plan for 2018 -19 foresees CAD 23.4 million 
to be spent under the Trade and Investment Support Program, comprising four programme lines, 
i.e. CanExport, Global Opportunities for Associations ( GOA), the Going Global Innovation (GGI) 
Initiative, and the Invest Canada -Community Initiatives (ICCI).  
Table 3.19 Main TCS funding programmes and amounts disbursed, 2014 -18 
(CAD million)  
Note:  The Foreign Trade Zones – Marketing Program (FTZ -MP) sunset was on 31 March 2018.  
Source:  Global Affairs Canada online information. Viewed at: https://www.international.gc.ca/gac -
amc/publications/plans/dp -pm/dp -pm_1819.aspx?lang=eng .  
3.2.5   Expor t finance, insurance, and guarantees  
3.128.   Export Development Canada (EDC) is a financially self -sustained Crown Corporation 
operating at arm 's length from the Government. As Canada 's export credit agency, the EDC 's 
mandate is to support and develop export trade  and help Canadian enterprises respond to 
international business opportunities. The EDC provides insurance and financial services, bonding 
products and small business solutions through a wide range of programmes (Table 3.20), often in 
partnership with othe r financial institutions. In addition to serving Canadian exporters and their 
international customers, the EDC also supports Canadian direct investment abroad as well as 
investment into Canada. The EDC normally funds itself in global capital markets but ma y also, if 
need be, seek loans from the Ministry of Finance. The EDC collects interest on its loans and premiums 
on its insurance products and has a treasury department that sells bonds and raises money in global 
capital markets.  
Table 3.20 EDC finance and guarantee programmes  
Programme title  Product description  Business 
facilitated  
in 2017   
(CAD billion)  
Direct Lending  Provides direct financing to companies on commercial terms    23.854  
Structured and Project 
Finance  Provides financing solutions to companies engaged in largescale 
global projects  3.060  
Loan Guarantees  Provides up to 100% guarantee on loans used by businesses to 
increase their working capital, purchase new equipment or 
support foreign investments  1.280  
Investments  Provides loans to mid -sized companies to help them grow their 
international sales or inve st in foreign operations  0.163  Programme  Description  of the service provided  Amount 
disbursed  
2014 -18 
Global Opportunities for 
Associations (GOA)  Non-repayable support to associations starting or 
expanding international business development activities  13.6 
Going Global Innovation 
(GGI)  Matching funds (up to 75% of eligible expenses) incurred 
in pursuing international collaborative R&D opportunities  1.5 
Invest Canada -
Community Initiatives 
(ICCI)  Non-repayable support to communities seeking to attract 
FDI 16.4 
CanExport  Provides financial support for a wide range of export 
marketing activities   17.9 
Foreign Trade Zones – 
Marketing Program (FTZ -
MP) Non-repayable support to communities seeking to attract 
foreign and direct investment (FDI) through the promotion 
of Canada 's Foreign Trade Zone  0.5 
Canadian International 
Innovation Program (CIIP)  Support to R&D collaboration programmes with Brazil, 
China, India and Israel  3.1 WT/TPR/S/389 • Canada  
 
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  Programme title  Product description  Business 
facilitated  
in 2017   
(CAD billion)  
Total financing and 
investments   28.357  
Credit Insurance  Covers 90% of insured losses, and a variety of risks when 
selling products and services internationally  55.827  
Financial Institution Insurance   8.205  
Contract Insurance and 
Bonding  Account 
Performance 
Security 
Guarantee  
 Helps businesses issue international 
transactions -related bonds by offering 
collateral solutions (100% guarantee), 
protection against wrongful calls (up to 95% of 
the losses), and reinsurance (u p to 85% of the 
value of the bonds)  8.795  
 Foreign 
Exchange 
Facility 
Guarantee  Helps businesses engage in foreign exchange 
contracts by guaranteeing the payment, thus 
replacing the collateral that may be required by 
financial institutions   
 Surety Bond 
Insurance  Protects surety companies from losses 
resulting from bonds issued on behalf of 
businesses   
 
 Contract 
Frustration 
Insurance  Covers up to 90% of losses resulting from non -
payment associated with a specific contract 
due to certain commercial and p olitical risks   
 Performance 
Security 
Insurance  Covers up to 95% of losses resulting from 
wrongful calls on letters of guarantee, or if a 
call is triggered due to specific political risks for 
export contracts   
Political Risk Insurance  Covers up to 90% of  losses resulting from political risk, such as: 
illegal seizure of assets, outright nationalization, war, and civil 
strife 2.551  
Total insurance   75.378  
Grand total   103.735  
Source:   EDC online information. Viewed at: https://www.edc.ca/en/solutions.html  and 
http://figuide.edc.ca/en/Products/EDCPortfolioCreditInsurance . 
3.129.   In 2017, the EDC supp orted CAD 103.7 billion in exports, foreign investment and trade 
development activities. The EDC assisted 9,398 enterprises during the year, and opened a 
stand -alone financing hub office in Singapore, its first branch outside of Canada. 2018 saw a 
moderate  slowdown, starting in the second quarter.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.3.1.1   Incentives programmes  
3.130.   Canada does not have specific overarching legislation governing incentives and subsidies. 
Various federal agencies and provincial/territorial governments implement incentives programmes. 
Innovation, Science and Economic Development Canada (ISED) is the government agency in charge 
of promoting investment, enhancing innovation performance, increasing Canada 's share of global  
trade, and building a fair, efficient and competitive marketplace in all areas of the economy and in 
all parts of the country.  
3.131.   The Innovation Canada digital platform for business, as of January 2019, lists 
1,039 programmes and services providing assistanc e to help businesses, and non -profit 
organizations, innovate and grow in the form of funding, loans and capital investments, tax credits, 
wage subsidies and interns, expert advice, and partnering and collaboration. Although not 
exhaustive, this figure enco mpasses a large portion of the various programmes and services 
available at the time of the search that are funded by government at either the federal or at the 
provincial/territorial level and those significantly funded by federal and provincial/territori al 
governments. Not all of these programmes and services provide funding or target for -profit 
companies and only a small portion of those have any relation to trade. While some programmes 
and services, both at the federal and the provincial level, are of b road application, others are sector 
specific, targeted to activities such as agriculture and cultural industries. An overview of the 
programmes listed indicates that most are specifically targeted to a particular sector or location and WT/TPR/S/389 • Canada  
 
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  that many programmes  offered were with respect to grants or contributions. It was not possible to 
determine the total amount of aid provided under each programme or category (Table 3.21).156   
Table 3.21 Government programmes and s ervices listed on the Innovation Canada digital 
platform for business, January 2019  
Support type  Number of programmes 2019  
Funding  406 
Loans and capital investments  226 
Tax credits  87 
Wage subsidies and interns  86 
Expert advice  196 
Partnering and collaboration  56 
Total (unique supports)  1,039  
Note:  Some overlap exists between categories.  
Source:  Innovation Canada, online information. Viewed at: http://innovation.canada.ca . 
3.132.   ISED-Canada maintains two special financing programmes: the Strategic Innovation Fund 
(SIF) open to businesses of all sizes across all of Canada 's industrial and technology sectors, and 
the Canada Small Business Financing Program (CSBFP) for small businesses.  
3.133.   The SIF was launched in July 2017 to enhance competitiveness and incorporates four ISED 
legacy programmes: the Strategic Aerospace and Defence Initiative (SADI), the Automotive 
Innovation Fund (AIF), the Automotive Supplier Innovation Program (ASIP), and t he Technology 
Demonstration Program (TDP). The SIF provides repayable and/or non -repayable contributions to 
attract and support new high -quality and innovative business investments in Canada. The SIF has 
four Streams, each with its own precise objective: S tream 1 encourages R&D that will accelerate 
technology transfer and the commercialization of innovative products, processes and services; 
Stream 2 facilitates the growth and expansion of firms in Canada; Stream 3 attracts and retains 
large-scale investment s to Canada; and Stream 4 advances industrial research, development and 
technology demonstration through collaboration between the private sector, researchers and non -
profit organizations on a competitive basis; funds for Stream 4 projects are not repayabl e. Projects 
under Streams 1 -3 may be repayable or not, depending on their public benefits. Applicants for 
Streams 1 -3 must be small, medium or large -sized for -profit corporations, incorporated pursuant to 
the laws of Canada, and carrying on business in Can ada. Streams 1 -3 operate on a continuous intake 
basis, and applicants must clearly demonstrate why government funding is needed to complete the 
project and show the project 's innovation, economic and public benefits for Canada.  
3.134.   Under the SIF, the Governme nt's share of funding for a given project usually varies from 
10% to 50% of eligible costs. Total combined government funding (federal, provincial, territorial and 
municipal) for the project cannot exceed 75% of eligible costs. Eligible costs are non -recurring costs 
that are specifically related to the project, which include, but are not limited to: direct labour, 
overheads, subcontracts and consultants, direct materials and equipment, other direct costs, and 
land and buildings. From July 2017 to December 2 018, 31 projects were announced under the SIF , 
totalling CAD 795 million in SIF contributions during the life of the projects, leveraging a total 
investment of CAD 8.1 billion in Canada; this includes two SADI projects and one TDP project. 
Projects run for  five years; repayment takes places over up to 15 years, with two -year periods of 
grace. In February 2018, changes to the SIF were announced in the federal budget, with the SIF 
now focusing its support on projects requesting at least CAD 10 million in cont ributions. The Budget 
2018 consolidated the Centre of Excellence for Commercialization and Research and the Business -led 
Networks of Centres of Excellence programmes under the SIF. This Budget also announced funding 
of CAD 100 million for over five years f or the SIF to support projects that relate to Low Earth Orbit 
(LEO) satellites and next -generation rural broadband which will reach the most remote areas of 
Canada. Projects eligible for this funding are currently under development and will be announced in  
2019.  
3.135.   Stream 4 is open to consortia and networks and is a competitive process. An applicant must 
be a company incorporated in Canada (for consortium applications) or a non -profit organization 
incorporated in Canada (for network applications). Contribution s to Stream 4 are non -repayable. For 
consortia, the combined level of assistance from all governments (federal, provincial, territorial and 
                                                
156 Innovation Canada, online information. Viewed at: http://innovation.canada.ca .  WT/TPR/S/389 • Canada  
 
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  municipal) to any one recipient shall not normally exceed 75% of eligible costs, except for recipients 
that are acad emic institutions for whom the maximum assistance would be 100%. The combined 
level of assistance provided to networks from all government sources will not exceed 100% of the 
total eligible costs of the network. The first Stream 4 competition for proposals  applying data 
capabilities in the Health and Biosciences sector was launched in June 2018, and a final 
announcement is expected in Spring 2019. The second competition for automation and digital 
technologies in the Agriculture and Agri -food sector was laun ched in December 2018.  
3.136.   In June 2018, support for the Steel and Aluminium sectors through SIF was announced. 
Under this initiative, CAD 250 million in new support will be provided to help bolster the 
competitiveness of Canadian manufacturers and better inte grate the Canadian steel and aluminium 
supply chain. Applicants must be steel and aluminium producers incorporated in Canada, having a 
minimum of 200 employees and requesting a contribution of between CAD 10 million and 
CAD 50 million.  The programme has ha d great interest from Canadian steel and aluminium 
producers with the total value of applications received greater than CAD 1.7 billion. The first project 
funded under this programme was announced in October 2018.  
3.137.   As mentioned above, the 2015 TPR focused o n four legacy programmes which were since 
consolidated under the SIF in July 2017: the Strategic Aerospace and Defence Initiative (SADI), the 
Automotive Innovation Fund (AIF), the Technology Demonstration Program (TDP), and the 
Automotive Supplier Innovati on Program (ASIP).  
3.138.   The Strategic Aerospace and Defence Initiative (SADI), launched in 2007, provided 
repayable contributions to support R&D projects in the aerospace, space, defence and security (A&D) 
sectors.157 Applicants were small, medium or large -sized for -profit corporations, incorporated 
pursuant to the laws of Canada and carrying on business in Canada. At least 1% of total eligible 
project costs had to be allocated to post -secondary education institutions in Canada. To be eligible, 
SADI support had to be essential to the project, and the recipient had to have sufficient resources 
to fund the (initial) R&D phase, typically over a five -year period.158 Benefits under the SADI covered 
up to 40% of total eligible project costs; total combined government funding (federal, provincial, 
municipal, tax credits) for the project could not exceed 75% of eligible costs. Benefits under the 
SADI took the form of reimbursements over a 15 -year repayment period that commenced tw o years 
after the end of the R&D phase.159 The total amount of SADI funding was set at approximately 
CAD 200 million per year. Since its creation, SADI has supported 42 projects. Total authorized 
assistance for all projects was CAD 1.6 billion and total repa yments collected to end -2018 were 
CAD 406.6 million.  
3.139.   The SADI programme also supported the multi -national Joint Strike Fighter (JSF) 
programme. The SADI typically contributed 40% to eligible project costs. Nominal repayment 
(i.e. 100% of amounts disbursed)  for JSF projects is over 20 years. The mechanism to support this 
programme under SADI was transferred to the SIF. To date, no JSF projects have been funded under 
the SIF.  
3.140.   The Automotive Innovation Fund (AIF) was launched in 2008 to provide repayable 
contributions to innovation and R&D projects in the automotive sector to develop and build greener, 
more fuel -efficient vehicles. The AIF was renewed in 2016 to include non -repayable options. The AIF 
has supported 12 projects and provided a total of CAD 520 mil lion in authorized assistance.  
3.141.   The Technology Demonstration Program (TDP), launched in 2013, provided non -repayable 
contributions to support one or more large -scale R&D projects per year in the A&D sectors. Eligible 
recipients for funding under the TDP we re corporations incorporated and carrying on business in 
Canada that proposed to conduct industrial research and technology demonstration activities with 
                                                
157 Government of Canada online information. Viewed at: https://ito.ic.gc.ca/eic/site/ito -
oti.nsf/eng/h_00022.html . 
158 Projects have a R&D phase and a repayment phase.  
159 During the R&D phase, the recipient had to submit financial claims for the reimbursement of eligible 
costs incurred  on a monthly or quarterly basis. With each financial claim, the recipient had to provide a report 
that documented the progress of the project. In the Post -R&D Phase, the recipient participates in programme 
evaluations, case studies or other efforts requir ed to assess the overall value and effectiveness of the SADI. 
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  A&D applications, as well as Canadian universities or colleges, and Canadian research institutes.160 
The TDP could award a non -repayable contribution to support one large -scale project per year, up 
to a maximum of CAD 54 million. The Program covered up to 50% of total eligible project costs over 
the multi -year life of the project. TDP support had to be essen tial to the location, scope and/or timing 
of the project. The TDP supported four projects and provided a total of CAD 187.5 million in 
authorized assistance.  
3.142.   The Automotive Supplier Innovation Program (ASIP) was launched in 2015 and provided 
non-repayable  contributions to automotive suppliers undertaking technology demonstration and 
prototyping activities. The ASIP supported 21 projects and provided a total of CAD 36 million in 
authorized assistance.  
3.143.   The CSBFP is a loan loss sharing programme that facilita tes loans by financial institutions to 
small businesses. The programme has been in operation for over 50 years with the objective of 
helping new businesses get established and enabling established businesses to expand. The 
maximum amount of the loan is CAD  1 million. The CSBFP receives statutory funding from the 
Consolidated Revenue Fund for payments made on defaulted loans.  
3.3.1.2   Access to credit  
3.144.   The Business Development Bank of Canada (BDC), a federal crown corporation reporting to 
Innovation, Science and Econ omic Development Canada, provides financing and other services to 
businesses, in particular, SMEs, to promote investment in and development of Canadian businesses. 
The BDC is financially self -sustaining, meaning that it does not receive appropriations from  
Government, and provides financing on commercial terms. The BDC provides mostly term lending, 
as well as venture capital and subordinated debt . The BDC is a complementary lender: it takes on 
more risk and can offer more flexible repayment terms than the c ommercial banks but prices the 
risk (i.e. the interest rates always exceed the pricing of the commercial banks).  
3.145.   The BDC plays a particular role in the growth of SMEs by providing term lending as well as 
collaborating with other financial institutions to increase credit availability in the market through 
co-lending, syndicated loans and indirect financing. The 2017 federal budget announced two major 
initiatives to promote innovation in Canada involving the BDC: the Cleantech Scale Up Initiative 
(where the BDC was asked to deploy subordinated debt and equity) and the Venture Capital Catalyst 
Initiative (VCCI) (where the BDC was asked to deploy subordinated debt and investments on behalf 
of the Crown). The Bank is also implementing new initiatives announced i n the 2018 federal budget 
to encourage women business ownership, which includes a target of CAD 1.4 billion in commercial 
financing over three years for majority women -owned businesses and a CAD 200 million Women in 
Technology Venture Fund to support women -led technology firms (up from CAD 70 million  
previously ).  
3.146.   The BDC is the only bank devoted exclusively to Canadian entrepreneurs, and currently 
reports on six business lines: Financing; Growth and Transition Capital; Venture Capital (VC); 
Advisory Servic es; venture capital incentive programmes managed on behalf of the Government, 
including the Venture Capital Action Plan (VCAP) and the VCCI; and the newly -created Cleantech 
Scale Up Initiative. In FY 2017/18, BDC Financing 's term lending acceptances totall ed 
CAD 6.8 billion; net sales from Advisory Services reached CAD 25.1 million; Growth and Transition 
Capital financing acceptances reached CAD 426.9 million, VC -authorized investments totalled 
CAD 188 million; and VC raised from public and private sources under the VCAP rose to 
CAD 1.4 billion. During FY 2018, the BDC launched the Cleantech Practice, to deliver CAD 600 million 
in capital entrusted to the BDC by the Federal Government to help build globally -competitive 
Canadian cleantech firms and a long -term, commercially -sustainable cleantech industry that can 
attract significant private capital. At the end of FY 2017/18, acceptances for the Cleantech Scale Up 
Initiative totalled CAD 40 million, with close to CAD 10 million disbursed. Additionally, in FY 20 17/18, 
the Government asked the BDC to manage the VCCI, which will invest capital to further increase the 
availability of late -stage VC for Canadian entrepreneurs. The 2017 federal budget made available 
CAD 400 million for the VCCI, which will be used to l everage private capital to raise a total pool of 
                                                
160 Government of Canada, Technology Demonstration Program (TDP) — Program Guide . Viewed at:  
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  approximately CAD 1.5 billion.161 As a result of anticipated market demand, BDC Financing 
acceptances are forecast to increase to CAD 7.2 billion in FY 2018/19; and the BDC 's overall portfolio 
is forecast to r each CAD 30.6  billion.162 
3.147.   Other federal departments have various funding or incentive programmes, many of which 
are available to private businesses, but also to individuals, organizations, sub -federal governments, 
the non -profit sector, etc. Many of these pr ogrammes are reflected in Canada 's subsidies notification 
to the WTO (Table A3.2).  
3.3.2   Standards and other technical requirements  
3.3.2.1   Standards  
3.148.   The development of standards in Canada is a decentralized process. The Standards Council 
of Canada (SCC), which takes its mandate from the Standards Council of Canada Act, is Canada 's 
national standardization body.163 The SCC is a federal Crown corporation, with the mandate to 
promote efficient and effective standardization in Canada.164 The SCC reports to Parliament through 
the Minister of Innovation, Science and Economic Development Canada and oversees Canada 's 
national standardization network. The SCC prescribes policies and procedures for the development 
of national voluntary standards; it represents Canada in internationa l standards activities and 
provides accreditation services for both standards development organizations and conformity 
assessment bodies.  
3.149.   The SCC also manages programmes and services designed to support the integration of 
standardization into regulatory p ractices, and coordinates and oversees the efforts of the persons 
and organizations involved in the National Standards System. The SCC is also charged with 
promoting voluntary standardization in Canada, where standardization is not expressly provided for 
by law, to promote the participation of Canadians in voluntary standards activities, and to ensure 
the effective and coordinated operation of standardization in Canada.165 The SCC represents Canada 
at the International Organization for Standardization (ISO) a nd the International Electrotechnical 
Commission (IEC) and, nationally, sets the requirements for the development of National Standards 
of Canada, which are developed by SCC -accredited standards development organizations (SDOs).  
3.150.   Canada 's National Standards  System is composed of a variety of organizations, with 
3,189  members involved in international standards committees on behalf of Canada. The SCC does 
not develop standards but is responsible for accrediting various bodies in the system. The Technical 
Barriers and Regulations Division of Global Affairs Canada hosts Canada 's SPS and TBT notification 
authority and enquiry point.  The SCC and the National Research Council of Canada (NRC) share the 
responsibility for the Calibration Laboratory Assessment Service  (CLAS) programme through an 
Agreement of Collaboration. The NRC is responsible for all aspects of calibration laboratory 
assessment, including surveillance of accredited laboratories, while the SCC is responsible for the 
accreditation decision.  
3.151.   At the nat ional level, SCC accredits SDOs. There are currently 10 SDOs: the Air -Conditioning, 
Heating and Refrigeration Institute; ASTM International; the Bureau de normalisation du Québec; 
the Canadian General Standards Board (CGSB); the Canadian Standards Associat ion (CSA Group); 
the Health Standards Organization (HSO); the International Association of Plumbing and Mechanical 
Officials (IAPMO); NSF International; ULC Standards; and Underwriters ' Laboratories Inc. (UL). 
These institutions generally operate in areas of specialty, reflecting the expertise of their technical 
committees, but they may develop standards in any area. Other bodies involved in standardization 
include: the ISED; Measurement Canada (which administers and enforces the Electricity and Gas 
Inspect ion Act and the Weights and Measures Act through the exclusive constitutional authority of 
the Government of Canada); the Telecommunications Standards Advisory Council of Canada 
                                                
161 BDC (2018), 2018 Annual Report . Viewed at: https://www.bdc.ca/EN/Documents/annualreport/bdc -
annual -report -2018.pdf . 
162 BDC (2018), Corporate Plan Summary 2018 -19 to 2022 -23. Viewed at: 
https://www.bdc.ca/en/Documents/doc_corpo/corporate_plan_summary.pdf . 
163 Standards Council of Canada Act, R.S., 1985, c. S -16, s. 5; 1996, c. 24, s. 4; 2011, c. 21, s.156, 
amended 16 March 2012 . 
164 SCC online information. Viewed at: https://www.scc.ca/en/about -scc. 
165 SCC online information. Viewed at: https://www.scc.ca/en/about -scc. WT/TPR/S/389 • Canada  
 
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  (TSACC, an industry -government partnership formed to develop strategic directi ons for 
standardization in the Information Technology and Telecommunications (IT&T) sectors); the 
National Research Council Canada (NRC); the Institute for National Measurement Standards, which 
is Canada 's national metrology institute; and the National Ins titute for Nanotechnology (NINT).  
3.152.   Standards are developed through consensus by committees of interested stakeholders, and 
may include representation from categories such as industry, governments, authorities having 
jurisdiction, academia, consumers, and pu blic interest bodies. These committees are organized and 
managed by an SDO. The basic process by which a standard is developed is consistent among all 
SDOs. The first step is the identification of the Canadian interest and strategic need for a new 
standard , followed by a preliminary study and the preparation of a draft outline, and the 
establishment of a committee, whether pre -existing or new. The committee reviews existing 
international and regional standards, both published and under development, first fo r possible 
adoption or adjustment; if it is not possible to use an existing standard, a new standard is developed 
and undergoes an approval process by the committee. Once a draft standard is developed and 
approved by consensus by the committee, the public is invited to review the it and provide 
comments. A minimum time -frame of 60 days is prescribed for the submission of comments by 
interested parties, which can only be shortened with appropriate rationale and action to proactively 
inform affected stakehold ers, before the publication of the standard. All comments received, 
regardless of place of origin, must be considered by the technical committee and responded to, if 
requested.  
3.153.   Once a new standard is developed, it may be sent to the SCC (see below), where it is 
evaluated to see if it meets the criteria of a National Standard of Canada (NSC). These criteria 
include: a) the standard must have been developed by consensus of a balanced committee of 
stakeholders; b) it must have been subjected to public review; c) it must be available in both English 
and French (official languages) upon publication; d) it must not duplicate or overlap with the work 
of other SDOs, including other international or regional SDOs; and e) it must not create barriers to 
international t rade. NSCs can be submitted to international standards development organizations for 
consideration and adoption as international standards.  
3.154.   The SCC introduced self -declaration for NSCs in 2017, allowing SDOs to meet stakeholders ' 
needs more quickly. This f acilitates SCC -accredited SDOs to self -declare compliance, through a 
process whereby their standards are verified for compliance on a sample basis. For SCC -accredited 
SDOs that have achieved this status, the SCC does not have to review and approve their NS Cs prior 
to publication. System controls are in place to ensure the continued rigour of the development of 
NSCs.166 
3.155.   NSCs must be reviewed and updated at least every five years. There were 3,096 standards 
developed under SCC accreditation as at 30 September 2 018, of which 2,424 had NSC status. Some 
of the main areas where there were national standards include: information technology (977);  
electrical engineering (345); environment, health protection and safety (177); construction 
materials and building (135); health care technology (199); domestic and commercial equipment 
(121); metrology and measurement (27); energy and heat transfer engineering (127); and 
telecommunications, audio and video engineering (104).  
3.156.   As noted above, the SCC facilitates Canadian part icipation in international standardization, 
including participation at the International Organization for Standardization (ISO) and the 
International Electrotechnical Commission (IEC). As the Canadian member of the ISO and the IEC, 
the SCC ensures effectiv e Canadian participation in the activities of those organizations and 
establishes requirements and guidance for Canadian participation. Canada participates or observes 
on 354 ISO technical committees167 and 115 IEC technical committees.168   
3.157.   Cooperation Arrang ements are negotiated by the SCC, which has arrangements with Brazil 's 
Associação Brasileira de Normas Técnicas (ABNT, signed in 2018), the British Standards Institute 
(BSI, signed in 2018), the Ukrainian Research and Training Center for Standardization, C ertification 
and Quality (UkrNDNC, signed in 2018), Peru 's Instituto Nacional de Calidad (INACAL, signed in 
2017), the Plurinational State of Bolivia 's Instituto Boliviano de Normalización y Calidad (IBNORCA, 
                                                
166 SCC online information. Viewed at: https://www.scc.ca/en/accreditation/standards .  
167 ISO online information. Viewed at: https://www.iso.org/member/1619.html .  
168 IEC online formation. Viewed at: https://www.iec.ch/dyn/www/f?p=103:5:0##ref=menu .  WT/TPR/S/389 • Canada  
 
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  signed in 2017), Costa Rica 's Instituto de Norm as Técnicas de Costa Rica (INTECO, signed in 2016), 
the American National Standards Institute (ANSI, renewed in 2018), Mexico 's Dirección General de 
Normas (DGN, renewed in 2018), the United Kingdom Accreditation Service (UKAS, signed in 2017), 
the Standar ds Administration of China (SAC, renewed in 2016), and the Korean Agency for 
Technology and Standards (KATS, signed in 2018).  
3.158.   The SCC also has a bilateral Cooperation Agreement with the European co -operation for 
Accreditation (EA) to facilitate the implem entation of the Protocol on the Mutual Acceptance of the 
Results of Conformity Assessment within the CETA. The SCC also has a joint Cooperation Agreement 
with the European Committee for Standardization (CEN) and the European Committee for 
Electrotechnical Standardization (CENELEC) and has CEN Companion Standardization Body 
membership.169 In addition, the SCC is a signatory to a number of voluntary accreditation 
agreements, including the International Accreditation Forum (IAF), the Asia Pacific Accreditation 
Cooperation (APAC), and the Inter -American Accreditation Cooperation (IAAC).  
3.159.   The SCC also examines standardization policy issues, both national and international in 
scope. This includes examining standardization and gender, such as women 's rates of particip ation 
on technical committees as compared to sectoral labour rates, and the provision of policy guidance 
on how to effectively incorporate standards by reference in federal, provincial, and territorial 
regulations to achieve various public policy objective s.170 
3.3.2.2   Technical regulations  
3.160.   The development of technical regulations in Canada is decentralized; they are established 
by several federal and provincial authorities. At the federal level, the development of technical 
regulations must follow the Cabinet Directive on Regulation and the Policy on Regulatory 
Development, which apply to all federal departments, agencies, and entities over which the Cabinet 
has either general authority or a specific authority relating to regulation making.  
3.161.   The Cabinet Directive on Regulation, which entered into force on 1 September 2018 and 
replaced the Cabinet Directive on Regulatory Management of 1 May 2012, sets out the Government 
of Canada 's expectations and requirements in the development, management, and review of federal 
regulations. The Directive set s four guiding principles of federal regulatory policy: a) regulations 
must protect and advance the public interest and support good government; in this sense, 
regulations are justified in terms of protecting the health, safety, security, social and econom ic 
well-being of Canadians, and the environment; b) the regulatory process must be modern, open, 
and transparent: regulations must be accessible and understandable, and must be created, 
maintained, and reviewed in an open, transparent, and inclusive way th at engages the public and 
stakeholders early on; c) regulatory decision -making must be evidence -based: there must be an 
analysis of the costs and benefits, and the assessment of risk, while being open to public scrutiny; 
and d) regulations must support a f air and competitive economy: they should aim to support and 
promote inclusive economic growth, entrepreneurship, and innovation for the benefit of Canadians 
and businesses. Opportunities for regulatory cooperation and the development of aligned regulations  
should be considered and implemented wherever possible.171 
3.162.   The Directive requires departments and agencies to examine and analyse regulations 
through all stages of their life cycle, including: the development of regulations, regulatory 
management, and revie w and results. It also requires that, during all stages of the regulatory life 
cycle, regulators seek opportunities to engage stakeholders (including Indigenous Peoples), pursue 
regulatory cooperation and regulatory alignment where appropriate, and coordin ate with all levels 
                                                
169 Standards Council of Canada (2018), Advancing Solutions, Delivering Results, 2017 –2018 Annual 
Report . Viewed at: https://www.scc.ca/en/system/files/publications/SCC -AR-2017-2018_EN.pdf . The European 
Committee for Standardization 's list of Companion Standardization Bodies . Viewed at:  
https://standards.cen.eu/dyn/www/f?p=CENWEB:60:::NO . 
170 Standards Council of Canada (SCC, 2018). Guidelines for Incorporating Standards by Reference in 
Regulations to Support Public Policy  Objectives.  Viewed at: https://www.scc.ca/en/about -
scc/publications/documents -de-politique/guidelines -for-incorporating -standards -reference -regulations -support -
public -policy -objectives .  
171 Government of Canada (2018), Cabinet Directive on Regulation . Viewed at: 
https://www.canada.ca/en/treasury -board -secretariat/services/federal -regulatory -management/guidelines -
tools/cabinet -directive -regulation.html . WT/TPR/S/389 • Canada  
 
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  of government to minimize cumulative and unintended impacts of regulations on Canadians, 
businesses, and the economy.  
3.163.   With respect to the development of regulations, the Directive mandates that, at the 
beginning of the regulatory life cycle, departments and agencies determine the approach to address 
an issue, set objectives, undertake consultations with stakeholders, and analyse the risks, impacts, 
and costs and benefits of a regulatory proposal.172 The scope and depth of analysis require d for 
regulatory proposals depends on the cost component of each proposal. In general, the greater the 
estimated cost of the proposal, the more comprehensive the analysis of benefits and costs must be, 
and the greater the effort required to undertake this analysis.  
3.164.   Departments and agencies must conduct a Regulatory Impact Analysis (RIA) on all 
regulatory proposals. The RIA must identify and assess the potential positive and negative effects 
and implications of a regulatory proposal for consideration by the  public, stakeholders and the 
Cabinet. Regulators must demonstrate that the benefits to Canadians outweigh the costs. To this 
end, the departments and agencies must conduct an early assessment, known as a triage, of a 
regulatory proposal, to determine its expected impact level and the appropriate mix of analytical 
requirements. During the triage, proposals are categorized according to their expected level of 
impact, which is determined primarily by the anticipated cost of the proposal.173 In the case of 
federal regulatory proposals, benefits and costs can be described in one of three ways: qualitative; 
quantitative; or monetized. An analysis of monetized benefits and costs is required for all 
"significant " regulatory proposals, that is, wi th an expected high or medium impact. If a regulatory 
proposal identifies environmental considerations, regulators must  provide the scope and nature of 
the likely effects on the environment (positive and negative), describe in the Regulatory Impact 
Analysi s Statement (RIAS) the outcomes of consultation s with the public about environmental 
impact, and describe in the RIAS how the implementation plan would deal with issues identified. If 
the regulatory proposal is not likely to have environmental effects, reg ulators must describe in the 
RIAS the activities they undertook to ascertain that no environmental effects are expected.174 
3.165.   As per the Directive, federal authorities should take into account potential opportunities for 
incorporation by reference of internati onally -accepted standards and/or regulations or other 
appropriate instruments. Departments and agencies should explain in the RIAS why the technique 
is being used and how it achieves their regulatory objectives. Departments and agencies must submit 
a regul atory proposal to be considered by the Treasury Board (Governor in Council), or the relevant 
regulation -making authority, for pre -publication in the Canada Gazette, Part I. Pre -publication of a 
regulation must include the draft regulatory text as well as a  RIAS. The standard comment period 
following pre -publication is 30 days, unless otherwise prescribed by legislative requirements and/or 
international obligations. A minimum comment period of 70 days may be required for consultations 
on proposals for new an d amended technical regulations that may have a significant effect on 
international trade. Upon approval by the Treasury Board, the Governor General signs the regulation, 
and the Registrar of Statutory Instruments registers it. Regulations enter into force  immediately 
after registration, or on a day specifically stipulated. The Regulation can only be enforced once 
published in the Canada Gazette Part II. Such publication must take place within 23 days of 
registration.  
3.166.   The Report to Parliament on federal reg ulatory management initiatives for FY2017/18 shows 
that 184 Governor in Council (GIC) regulations were finalized between 1 April 2017 and 31 March 
2018. Of these 184 GIC regulations (compared with 189 in FY2016/17), 166 were low -impact and 
18 were "signifi cant", meaning that they had annual national costs greater than CAD 1 million. The 
significant regulations accounted for 9.8% of the GIC regulations finalized in FY2017 -18, which is 
consistent with figures for previous years. Of these 18 regulations, 15 ha d monetized benefits and 
                                                
172 Government of Canada (20 18), Cabinet Directive on Regulation . Viewed at: 
https://www.canada.ca/en/treasury -board -secretari at/services/federal -regulatory -management/guidelines -
tools/cabinet -directive -regulation.html . 
173 There are three levels of impact: a) low impact, when the present value of costs of the proposed 
regulations over ten years is less than CAD 10 million, and the  annual cost is less than CAD 1 million; 
b) medium impact, when the present value over ten years is between CAD 10 million and CAD 100 million, and 
the annual cost is between CAD 1 million and CAD 10 million; and c) high impact, when the present value over  
ten years is more than CAD 100 million, and the annual cost is more than CAD 10 million.  
174 Treasury Board of Canada Secretariat  (2018), Policy on Regulatory Development . Effective 
1 September 2018. Viewed at: https://www.canada.ca/en/treasury -board -secretariat/services/federal -
regulatory -management/guidelin es-tools/policy -regulatory -development.html . WT/TPR/S/389 • Canada  
 
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  costs, 2 had monetized costs only, and 1 had quantified costs and benefits. The total monetized cost 
associated with significant regulations was CAD 4.4 billion, while the total monetized benefit 
associated with them was CAD 8.5 bi llion; this gave a monetized net benefit of CAD 4.1 billion. The 
regulatory changes that had the greatest net monetized benefits in FY2017/18 were: the Regulations 
Amending the Ozone -Depleting Substances, and the Halocarbon Alternatives Regulations, with a  
cumulative net benefit of CAD 3.725 billion (net present value) from 2018 to 2040; the Regulations 
Amending the Immigration and Refugee Protection Regulations, with a cumulative net benefit of 
CAD 115.3 million from 2017 to 2026; and the Regulations Amend ing the Off -Road Small 
Spark -Ignition Engine Emission Regulations and Making a Consequential Amendment to Another 
Regulation, with an estimated net benefit of CAD 107.6 million (net present value) from 2019 to 
2032. Significant proposals must demonstrate t hat the expected benefits are greater than the 
expected costs. However, this determination is based on non -monetized quantitative and qualitative 
analysis, in addition to monetized analysis. In FY2017/18, three significant proposals had monetized 
costs tha t were equal to monetized benefits, and another three had monetized costs that exceeded 
monetized benefits.175 
3.167.   Among the technical regulations that had monetized benefits and costs identified in 
FY2016/17, and presented main benefits are: the Energy Efficien cy Regulations, 2016, for which a 
cumulative net benefit associated with it was estimated at CAD 1.394 billion (net present value) to 
2030, and the Multi -Sector Air Pollutants Regulations, for which a net benefit of approximately 
CAD 6.436 billion was esti mated to 2035.  
3.168.   Amendment 13 to the Energy Efficiency Regulations, published in December 2016, reported 
a cumulative net benefit of CAD 1.46 billion through 2030. An October 2018 amendment was 
proposed that would bring the value up to CAD 1.80 billion by 2 030.176 The proposed amendment 
to the Energy Efficiency Regulations (the Amendment) would introduce or update minimum energy 
performance standards, testing standards, and reporting requirements to improve the energy 
efficiency of 12 heating and ventilation p roduct categories. The Amendment would affect residential 
and commercial product categories, four of which are currently regulated federally.  
3.169.   Although Canada does not maintain a catalogue of technical regulations, the Canada 
Gazette 's Consolidated Index of  Federal Statutory Instruments  includes (but does not specifically 
categorize or indicate) technical regulations.  
3.170.   During the period under review, Canada has continued to regularly notify its draft technical 
regulations, ordinances, and conformity assessme nt procedures to the TBT Committee. During the 
2015-18 period, Canada submitted 2 10 notifications, including corrections and appendices. Of these, 
141 were new technical regulation notifications.177  
3.171.   Since 2015, only one specific trade concern (STC) was rais ed in the TBT Committee, 
regarding Canada 's Tobacco Reduction (Flavoured Tobacco Products) Amendment Act, 2013. 
However, also since 2015, Canada raised 61 STCs in the TBT  Committee regarding technical 
regulations by other Members, until end 2 018.178 The conc erns raised covered a broad range of 
issues across multiple industry sectors.  
                                                
175 Treasury Board of Canada Secretariat (December 2018), Annual Report to Parliament for the 201 7 to 
2018 Fiscal Year: Benefits and Costs of Significant Federal Regulations, and the Implementation of the One -for-
One Rule . Viewed at: https://www.canada.ca/en/treasury -board -secretariat/cor porate/reports/annual -report -
parliament -2017-2018-fiscal-year-federal -regulatory -management -initiatives.html . This report is the second 
annual report to Parliament on the benefits and costs of new federal regulations . 
176 Government of Canada online informat ion. Viewed at: http://gazette.gc.ca/rp -pr/p2/2016/2016 -12-
28/html/sor -dors311 -eng.html ; http://www.gazette.gc.ca/rp -pr/p1/2018/2018 -10-20/html/reg3 -eng.html ; 
and http://www.gazette.gc.ca/rp -pr/p2/2016/2016 -06-29/pdf/g2 -15013.pdf#page=605 . 
177 WTO TBT Information Management System. Viewed at: 
http://tbtims.wto.org/en/Notifications/Search?page=11&sortBy=DistributionDate&sortDirection=desc&Distribut
ionDateFrom=01%2F01%2F2015&DistributionDateTo=06%2F11%2F2018&NotifyingMember=Canada&DoSearc
h=True . 
178 WTO TBT Information Management System. Viewed at: 
http://tbtims.wto.org/en/SpecificTradeConcerns/Search . WT/TPR/S/389 • Canada  
 
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  3.3.2.3   Accreditation and conformity assessment  
3.172.   Conformity assessment procedures to ensure compliance with technical regulations are 
generally specified in each technical regulation. Can ada can accept first -, second - or third -party 
conformity assessments, depending on the product. In some cases, it is a regulatory requirement 
that the certifying body or person is accredited by the SCC and/or is recognized under an MRA or a 
multilateral ag reement (MLA). The type of certification accepted also depends on factors such as 
risks and the particular characteristics of the sector. When third -party conformity assessment is 
used, regulatory authorities rely mostly on conformity assessment bodies acc redited by the SCC, 
whose criteria are based on ISO/IEC standards, and include additional requirements to fulfil the 
needs of Canadian regulatory authorities. Third -party conformity assessment is used in a number of 
product areas, including electrical safe ty, and construction products. Canada uses suppliers ' 
declaration of conformity for motor vehicles, electromagnetic compatibility, and some 
telecommunications products. The r egulatory authorities are directly responsible for conformity 
assessment for certain products (e.g. pharmaceutical products and medical devices).  
3.173.   According to the authorities, the underlying principles of conformity assessment in Canada, 
are that it: a) contributes to safeguarding public health, the environment and public safety; b ) is 
based on international standards, agreements and protocols without undue national bias; c) upholds 
the WTO Agreement on Technical Barriers to Trade (TBT), and avoids creating unnecessary obstacles 
to trade; d) operates in an explicit, credible, and tr ansparent manner, and is accessible, equitable 
and fair in its treatment of all users; e) delivers services in a timely and professional manner, in 
accordance with an accepted code of ethics; f) makes information regarding conformity assessment 
requirement s, accreditation procedures and results publicly available (activities are conducted with 
due regard to confidentiality while ensuring full disclosure of conformity assessment results to 
regulatory authorities, as required); and g) is inherently voluntary;  however, marketplace demands 
and/or government regulation may mandate specific conformity assessment requirements.179 
3.174.   The SCC is Canada 's national accreditation body. SCC accredits conformity assessment 
bodies (CABs), such as testing laboratories and produc t certification bodies, to internationally 
recognized standards. The SCC offers the following accreditation and recognition programmes: 
management systems certification bodies; product, process and service certification bodies; 
inspection bodies; greenhous e gas validation/verification bodies; bodies performing the certification 
of persons, testing and calibration laboratories; medical testing laboratories; and, proficiency testing 
providers. In addition, the SCC offers two non -ISO-based accreditation progra mmes: the SCC serves 
as Canada 's monitoring authority for recognition of OECD good laboratory practices (GLP) and the 
SCC accredits standards development organizations.  
3.175.   The SCCs accreditation services include accrediting organizations directly, such as 
laboratories, as well as accrediting organizations that certify others ' conformity to specific standards. 
Certification bodies are accredited on a fee -for-service basis. In December 2018, there were 
34 accredited product, process and service certification bod ies (including U.S.-based bodies), more 
than 350 testing organizations, and 22  management systems certification bodies (including foreign -
based bodies).  
3.176.   The SCC 's Accreditation Services branch delivers accreditation services to Canadian 
customers working i n Canada and abroad, and to international customers doing business in Canada. 
The SCC is a signatory to the International Accreditation Forum (IAF), the International Laboratory 
Accreditation Cooperation (ILAC), the Asia Pacific Accreditation Cooperation ( APAC), and the 
Inter-American Accreditation Co -operation (IAAC).  
3.177.   The SCC accredits various types of testing laboratories, including: food testing, drinking 
water testing, environmental sample testing; mineral testing; and materials testing laboratories. It  
also accredits quality, environmental, energy, food safety, and occupational health and safety 
management systems. The SCC accredits electrical, fire protection, safety equipment, energy -
efficient, and mobile home component product certification, as well as electrical systems, medical 
gas piping systems, and commercial gas -fired appliance inspections.  
                                                
179 SCC online information. Viewed at: 
https://www.scc.ca/sites/default/files/liferay_files/ca_principles_e.pdf . WT/TPR/S/389 • Canada  
 
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  3.178.   The accreditation of calibration laboratories is the shared responsibility of the SCC and the 
National Research Council Canada 's (NRC) Calibration Laboratory  Assessment Service (CLAS). The 
CLAS programme provides quality system and technical assessment services, and certification of 
specific measurement capabilities of calibration laboratories in support of the Canadian National 
Measurement System. Eligibility  for CLAS certification is required for SCC accreditation of calibration 
laboratories. The CLAS maintains a Directory of Accredited Calibration Laboratories, providing a 
network of calibration laboratories to ensure clients across Canada have access to cal ibration 
services with certified traceability to national and international measurement standards. Calibration 
laboratories certified by the CLAS offer measurements traceable to the International System of Units 
(SI).180 The calibration laboratories that are  certified by the CLAS and accredited by the SCC are 
recognized by over 50 accreditation systems worldwide.  
3.179.   In its role as the national standards laboratory, the NRC maintains close ties with the Bureau 
International des Poids et Mesures (BIPM) and a numbe r of other international organizations, such 
as the Inter -american Metrology System (SIM), the ILAC, and the IAAC, as well as the national 
laboratories of other countries.  
3.180.   In addition to the SCC, the following bodies play a role in Canada 's standardizatio n and 
accreditation system: the ISED; Measurement Canada; the Telecommunications Standards Advisory 
Council of Canada (TSACC); the NRC; the Metrology Research Center; and the National Institute for 
Nanotechnology (NINT) .  
3.181.   The SCC is a member of a number of  organizations that have MRAs in place to assist with 
international acceptance of conformity assessment results. Canada participates in a number of 
conformity assessment international agreements . (Table A3.3).  
3.3.3   Sanitary and phytosanitary requirements  
3.182.   The Sa fe Food for Canadians Act (SFCA) and the Safe Food for Canadian Regulation (SFCR) 
came into effect on 15 January 2019, representing the most important revision of food safety 
regulations in 25 years.181 Acknowledging that Canada has one of the strongest food  safety systems 
in the world, the authorities note that new risks and challenges need to be addressed, including new 
threats to food safety, changing consumer preferences, and prevention -focused international 
standards. The SFCA consolidates the authoritie s of the Canada Agricultural Products Act, the Fish 
Inspection Act, the Meat Inspection Act, and the food provisions of the Consumer Packaging and 
Labelling Act. The SFCR replaces 14 sets of regulations to reduce unnecessary administrative 
burdens on busin esses (Box 3.4).  
3.183.   Policies and national standards on food safety, nutrition quality and food -borne surveillance 
activities are developed, set, and enforced through the Health Portfolio. Being a member of the 
Codex Alimentarius Commission (Codex), the World Organization for Animal Health (OIE) and the 
International Plant Protection Convention (IPPC), Canada bases or aligns its SPS measures with 
recognized international standards, guidelines, and recommendations in accordance with the WTO 
Agreement on the Appl ication of Sanitary and Phytosanitary Measures (SPS Agreement). 
Implementation of food safety, animal health and plant health standards at the federal level is mainly 
in the hands of Health Canada and the Canadian Food Inspection Agency (CFIA). At the sub -federal 
level, provincial/territorial regulations are enforced by provincial/territorial authorities.  
 
                                                
180 National Research Councils of Canada (NRC) online information. Viewed at: https://www.nrc -
cnrc.gc.ca/eng/solutions/advisory/clas_index.html . 
181 The Act and the Regulations were notified to the WTO and were circulated in documents 
G/SPS/N/CAN/700, 8 July 2013 and its r evisions and addenda (G/SPS/N/CAN/700/Rev.1 (5 June 2014), 
G/SPS/CAN/N/700/Rev.1/Add.1 (15 July 2014), G/SPS/CAN/N/700/Rev.2 (24 January 2017), and 
G/SPS/N/CAN/700/Rev.2/Add.1 (14 June 2018)); G/TBT/N/CAN/394, 19 July 2013 and its revisions and 
addenda (G/ TBT/N/CAN/394/Rev.1 (6 June 2014), G/TBT/N/CAN/394/Rev.1/Add.1 (15 July 2014), 
G/TBT/N/CAN/Rev.2 (25 January 2017), and G/TBT/N/CAN/Rev.2/Add.1 (15 June 2018)); and 
G/LIC/N/2/CAN/1, 14  September 2018.  WT/TPR/S/389 • Canada  
 
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  Box 3.4 The Safe Food for Canadians Act and the Safe Food for Canadians Regulations  
The Food and Drugs Act and the Food and Drug Regulations continue to apply to all food sold in Canada, 
and the non -food provisions of the Consumer Packaging and Labelling Regulations (CPLR) remains in force. 
The SFCA and the SFCR apply mainly to imported and exported food, and t o food traded inter -provincially. 
Some requirements also apply to food sold within the provinces. The SFCA received Royal Assent on 
22 November 2012. Work then got underway to establish the SFCR, which consists of 16 parts, including 
provisions on preventi ve controls, licensing, traceability, commodity -specific requirements, organic products, 
recognition of foreign systems, packaging, labelling, seizure and detention, and ministerial exemptions. The 
SFCA involves enhanced inspection powers. Industries and g overnment regulators are granted transitions 
ranging from 12  to 30 months to adapt to the new requirements. Key features of the SFCR are as follows:  
Licensing: The SFCR requires anyone importing food or manufacturing, processing, treating, preserving, 
grading, packaging, or labelling food for interprovincial trade or export to hold a licence issued by the 
Canadian Food Inspection Agency (CFIA). Licences are valid for two years (unless suspended or cancelled). 
Licence fees are stipulated by the CFIA. Trader s in fresh fruit and vegetables are obliged to be members of 
the Fruit and Vegetable Dispute Resolution Corporation (DRC) to be exempted from the prohibition to trade 
in such goods. More than 80% of Canada 's fruit and vegetable buyers and sellers engaged i n interprovincial 
trade or exports have already joined the DRC.  
Preventive controls: The regulations cover elements such as sanitation, hygiene, pest control, and non -
food agents; conveyance and equipment; conditions for establishments; unloading, loading  and storage; 
competencies (e.g. staffing); investigation and notification; complaints; and recall. All food safety 
requirements must be met and are consistent with international standards on agriculture and manufacturing 
practices (i.e. good agricultural practices (GAPs), good manufacturing practices (GMPs), and Hazard Analysis 
Critical Control Point (HACCP)). A written Preventive Control Plan (PCP) must be prepared to demonstrate 
that the controls and requirements are being met. Certain small businesses a nd farmers are exempted from 
the PCP requirement.  
Traceability records: The SFCR reflects international standards established by the Codex Alimentarius 
Commission. Documents must be prepared and kept for the next, and previous, step in the supply chain. 
The document must be provided within 24 hours to respond to an emergency risk of injury to human health, 
if requested by the Minister.  
Export certificates: The Minister may issue export certificates to meet the requirements of the SFCR or 
those of a forei gn government. All food exported must meet Canadian food safety requirements, unless they 
meet alternative food safety requirements established by a foreign government.  
Recognition of foreign systems: The Regulations maintain existing equivalence require ments for meat 
products and shellfish. In addition, they allow for the recognition of equivalent food inspection systems.  
Source:  SFCA online information. Viewed at: https://laws -lois.justice.gc.ca/eng/acts/S -1.1/index.html ; 
SFCR. Viewed at: http://www.gazette.gc.ca/rp -pr/p2/2018/2018 -06-13/html/sor -dors108 -eng.html . 
3.184.   Health Canada establishe s standards and policies governing the safety and nutrition quality 
of all food sold in Canada. It also mandates and conducts food -related health risk assessments; 
approves and regulates pest control products, setting maximum residue limits (MRLs) for pest icides 
that may remain in food; and evaluates the safety of veterinary drugs used in food -producing 
animals, establishing the corresponding MRLs.  
3.185.   The CFIA enforces federally -mandated inspection, compliance, and quarantine requirements 
related to food, ani mal health and plant health. It is the lead agency for risk assessment for animal 
health and plant health. The CFIA has encouraged and supported the development, implementation 
and maintenance of Hazard Analysis Critical Control Point (HACCP) systems in al l federally -registered 
establishments. With the SFCR, the HACCP will be a requirement for all food imported, prepared for 
interprovincial trade, or exported. The Food Safety Recognition Program (FSRP) is led by the CFIA 
with participation from provincial a nd territorial governments.182 The FSRP includes the On -Farm 
Food Safety Recognition Program and the Post -Farm Food Safety Recognition Program, providing 
government recognition of food safety systems developed and implemented by national industry 
organizatio ns to enhance food security, maintain the confidence of Canadian consumers, and 
facilitate market access. National food industry organizations that are not regulated by the CFIA may 
submit their food safety systems to the FSRP for technical review.  
                                                
182 Recognition of a food safety programme implies that it has been found consistent with HACCP 
principles; that it is in conformity with federal, provincial and territorial legislation, policy and protocols; and 
that a Food Safety Management System is being implemented effectively and consistently.  WT/TPR/S/389 • Canada  
 
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  3.186.   The CF IA sets policies and regulations for imports of food, agricultural input and agricultural 
products, live animals, animal products and by -products, and plants and plant products. The 
Canadian Border Service Agency (CBSA) is responsible for the initial impor t inspections of food, 
agricultural input and agricultural products at Canadian entry points. The CFIA uses an electronic 
system (including the Automated Import Reference System - AIRS) and a database of import 
requirements to assist the CBSA with the cont rol of imported plant, animal and food products.  
3.187.   The Plant and Animal Health Strategy (PAHS) for Canada was adopted in 2017.183 The PAHS 
is a partnership between federal government departments, provincial and territorial governments, 
academia, and industry stakeholders. The PAHS is designed as a comprehensive, effective and 
integrated system focusing on preventive risk management and partner collaboration. It provides a 
national vision to address evolving risks to plant and animal health in Canada. The implementation 
of the PAHS is being advanced under the mandates of the Canadian Plant Health Council and the 
National Farmed Animal  Health and Welfare Council.  
3.188.   The Technical Barriers and Regulations Division of Global Affairs Canada is Canada 's enquiry 
point and national notification authority under the SPS Agreement. During the period 2015 -18, 
Canada submitted 307 notifications (excl uding addenda and corrections) to the WTO related to the 
SPS Agreement. No new specific trade concerns (STCs) were raised regarding measures maintained 
by Canada in the WTO Committee on Sanitary and Phytosanitary Measures since its last Review, and 
Canada has not brought up any new STCs concerning measures applied by other Members. However, 
it has supported several STCs raised by other Members. One previous STC, import restrictions on 
bovine semen imposed by India, that Canada first raised jointly with the European Union in 1999, 
was reported by Canada as resolved in October 2017.  
3.189.   The revised or new FTAs Canada has concluded since its last Review all contain SPS chapters. 
A consistent feature of Canada 's SPS chapters has been provisions aimed at avoiding an d resolving 
trade -related SPS issues among the parties, such as the establishment of SPS Committees and/or 
contact points, and provisions to facilitate communications and strengthen cooperation. While 
affirming SPS Agreement rights and obligations, several  of the FTAs (CUSMA, CETA, and CPTPP) 
created additional obligations subject to the dispute settlement provisions of these agreements.  
3.3.4   Competition policy and price controls  
3.3.4.1   Main regulatory and institutional framework  
3.190.   The Competition Act is the statutory basis for federal competition policy. The Act, which 
governs most business conduct in Canada, contains criminal and civil provisions aimed at preventing 
anti‑competitive practices in the marketplace, and is applicable throughout the country as there is 
no provincial or territorial competition legislation. The purpose of the Act is to maintain and 
encourage competition in order to: (i) promote the efficiency and adaptability of the Canadian 
economy; (ii) expand opportunities for Canadian participation in wor ld markets while at the same 
time recognizing the role of foreign competition in Canada; (iii) ensure that small and medium -sized 
enterprises have an equitable opportunity to participate in the Canadian economy; and (iv) provide 
consumers with competitive prices and products.184 The Act is complemented by the Regulations 
Respecting Anti -Competitive Acts of Persons Operating a Domestic Service, which came into force 
in 2000, and the Notifiable Transactions Regulations.  
3.191.   The Act is administered and enforced by t he Competition Bureau headed by the 
Commissioner of Competition. As an independent enforcement agency, the Bureau has a legislated 
mandate to ensure that Canadian businesses and consumers prosper in a competitive and innovative 
marketplace. The Bureau admi nisters three laws and their corresponding regulations, in addition to 
the Competition Act: The Consumer Packaging and Labelling Act185 (governing the packaging, 
                                                
183 Canadian Food Inspection Agency online information. Viewed at: http://www.inspection.gc .ca/about -
the-cfia/accountability/partnerships -pahs/eng/1490917160508/1490917161242 .  
184 Government of Canada, 'The Competition Act '. Viewed  at: 
http://www.competitionburea u.gc.ca/eic/site/cb -bc.nsf/eng/04267.html . 
185 The administration and enforcement of the Consumer Packaging and Labelling Act, as they relate to 
non-food products, is the responsibility of the Competition Bureau. Administration and enforcement of the Act 
and Regulations, as it relates to food products, is the responsibility of the Canadian Food Inspection Agency 
(CFIA).  WT/TPR/S/389 • Canada  
 
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  labelling, sale, importation and advertising of pre -packaged products); the Textile Labelling Ac t 
(governing the labelling, sale, importation and advertising of consumer textile articles); and the 
Precious Metals Marking Act (governing the marking of articles containing precious metals).186  
3.192.   Under the civil regime of the Competition Act, certain practi ces may be brought for review 
before the Competition Tribunal, a specialized tribunal that combines expertise in economics and 
business with expertise in law. The Tribunal, an adjudicative body operating independently of any 
government department,187 mostly hears cases dealing with matters such as business mergers; 
abuse of dominant position; agreements between competitors; refusal to comply; price 
maintenance; other restrictive trade practices; deceptive marketing practices; specialization 
agreements; delive red pricing; foreign judgments, law and directives that adversely affect economic 
activity in Canada; and refusals to supply by foreign suppliers.188  
3.193.   Under the criminal regime of the Act as well as under the Consumer Packaging and Labelling 
Act, the Preciou s Metals Marking Act and the Textile Labelling Act, certain practices may be brought 
before the criminal courts. If the results of an investigation disclose evidence that, in the opinion of 
the Commissioner, provides the basis for a criminal prosecution, t he matter may be referred to the 
Attorney General of Canada, who determines whether to undertake a prosecution.189 The Bureau 
may also choose to use alternative case resolutions, allowing the agency to resolve certain issues 
expeditiously without a full inqu iry or judicial proceedings. Such options include voluntary 
undertakings by companies and individuals to adopt certain measures to correct the impact of 
anti‑competitive conduct and prohibition orders.190  
3.194.   Private parties may also initiate proceedings before  the Court for private damage claims. 
The Act grants private parties the right to recover in the ordinary civil courts any losses or damages 
suffered as a result of a breach of the criminal provisions of the Act or as the result of the failure of 
any perso n to comply with an order of the court or the Competition Tribunal.191 Both direct and 
indirect purchasers may bring private claims in Canada as the passing -on defence is not permitted. 
Nonetheless, there is no private right of action in relation to the civi l provisions of the Act, except 
for some situations where private parties may be able to use a specific section of the Act (Section  36) 
to bring a private action in respect of an alleged breach of the conspiracy or bid -rigging provisions 
even if it involve s conduct that the Bureau, as a matter of enforcement discretion, would treat under 
the civil rather than through the criminal track. The range of civil and criminal sanctions available 
under the Competition Act and the potential penalties or outcomes are detailed in Table  3.22. 
Table 3.22 Overview of the Competition Act provisions  
Provision  Conduct  Penalty/Outcome  
Mergers  Notification and 
Reviewable (Civil)  Prohibition orders, divestiture orders, dissolution 
orders, other remedial orders on consent, 
administrative monetary penalties, consent 
agreements  
Conspiracy  Criminal  Substantial fines, prison time, prohibition orders, 
and civil damages awards  
Bid-rigging  Criminal  Substantial fines, prison time, prohibition orders, 
and civil damages awards  
False or misleading 
representations  Criminal  Substantial fines, prison time, prohibition orders, 
and civil damages awards  
Competitor agreements  Reviewable (Civil)  Prohibition order, remedial orders on consent,  
consent agreements  
Misrepresentations to the public  Reviewable (Civil)  Prohibition orders, corrective notices, 
administrative monetary penalties, restitution, 
consent agreements  
                                                
186 Government of Canada, 'The Competition Bureau ' (5 November 2015). Viewed  at: 
http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/03336.html . 
187 The Competition Tribunal  online information . Viewed  at: https://www.ct -tc.gc.ca/Home.asp . 
188 The Competition Tribunal  online information . Viewed  at: https://www.ct -tc.gc.ca/Home.asp . 
189 Government of Canada, 'Court Decisions '. Viewed  at: 
http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/h_00150.html . 
190 Government of Canada , 'Alternative Case Resolutions ' (22 February 2018). Viewed  at: 
http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/h_03001.html .  
191 A person may seek leave of the Competition Tribunal to make an application under sections 75, 76 or 
77 (according to section 103 .1 of the Competition Act). These provisions relate to reviewable matters regarding 
refusals to deal, price maintenance, exclusive dealing, tied selling and market restriction.  WT/TPR/S/389 • Canada  
 
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  Provision  Conduct  Penalty/Outcome  
Abuse of dominance  Reviewable (Civil)  Prohibition and other remedial orders  (including 
divestiture orders), administrative monetary 
penalties, consent agreements  
Price maintenance  Reviewable (Civil)  Prohibition order, order to accept a person as a 
customer, consent agreements  
Refusal to deal  Reviewable (Civil)  Prohibition order, order to accept a person as a 
customer, consent agreements  
Tied selling  Reviewable (Civil)  Prohibition order, other requirements to restore 
competition, consent agreements  
Exclusive dealing  Reviewable (Civil)  Prohibition order, other requirements  to restore 
competition, consent agreements  
Vertical market restriction 
(Exclusive dealing, tied selling 
and market restriction)  Reviewable (Civil)  Prohibition order, other requirements to restore 
competition, consent agreements  
Source:  WTO Secretariat, based on the Competition Act, and information provided by the authorities.  
3.195.   The Bureau maintains an immunity programme whereby a company or individual implicated 
in cartel activities may offer to cooperate with the Bureau in exchange for full immunity from 
prosecution. Immunity is granted by the Director of Public Prosecutions (DPP), on recommendation 
by the Bureau. In addition, the Bureau has created a leniency programme – following similar 
requirements to those of the immunity programme – for parties not e ligible for the former. The 
Bureau will recommend to the DPP that qualifying applicants be granted recognition for timely and 
meaningful assistance to the Bureau 's investigation. Every leniency applicant will be eligible for a 
leniency cooperation credit o f up to 50%. The amount of credit to be assigned will be based on the 
value of the leniency applicant 's cooperation to the Bureau 's investigation. 192 
3.196.   The Competition Act covers most businesses and sectors of the economy, including Crown 
Corporations engaged  in commercial activities in actual or potential competition with other 
businesses. Notwithstanding the broad application of the Act, various sectors and activities are 
expressly excluded, namely, labour relations, fishermen, shipping conferences, securiti es 
underwriting and amateur sports.193 The Act also contains two industry -specific provisions (for 
professional sports and financial institutions), though there are exceptions for the sharing of credit 
information.194  
3.3.4.2   Developments in the legislative and insti tutional framework  
3.197.   As a follow up to the Bureau 's 2015 -2018 Strategic Vision195, the Bureau released an impact 
report196 measuring its progress in achieving the five strategic objectives from the Strategic Vision. 
The Bureau has made strong progress in meeting  its objectives such as implementing the scams 
warning systems which helps Canadians make informed decisions during purchasing, developing its 
Talent Management Framework which ensures the Bureau has the right employees to deliver on its 
mandate, and worki ng with its partners to combat bid -rigging and cartels cases, as seen in the 
Nishikawa Rubber case .  
3.198.   The Bureau has also been active in the publication of guidelines and other soft law texts, 
including 73 position statements and 70 separate technical guida nce documents (since 2013).197 
Among the most notable publications during 2015 -18 were a white paper on modernizing Canada 's 
                                                
192 Competition Bureau Canada, 'Immunity and Leniency Programs under the Competition Act'. 
Viewed  at: http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/04 391.html#wb -tphp.  
193 See, the Competition Act, Part VI, Section 48 and 49. Viewed at: https://laws -
lois.justice.gc.ca/eng/acts/C -34/page -12.html?txthl=sport#s -48. 
194 See, the Competition Act, Part I. Viewed at: https://laws -lois.justice.gc.ca/eng/acts/C -34/page -
2.html?txthl=amateur#s -6.  
195 Competition Bureau Canada, ' 2015-2018 Strategic Vision' (2 June 2015). Viewed at: 
http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/03934.html .  
196 Competition Bureau Canada, 'Measuring Progre ss: Fiscal Years 2015 2018 Strategic Vision Impact 
Report'. Viewed at: http://www.competitionbureau.gc.c a/eic/site/cb -bc.nsf/vwapj/CB -StrategicVision -2015-18-
Eng.pdf/$file/CB -StrategicVision -2015-18-Eng.pdf .  
197 Competition Bureau Canada, 'Position Statements'. Viewed at: 
http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/h_00173.html .  WT/TPR/S/389 • Canada  
 
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  taxi industry regulations;198 an award -winning white paper on big data that sparked broader policy 
discussions on how big data challeng es can be addressed to support innovation and competition in 
the marketplace; and three issues of The Competition Advocate, two of which focused on more 
competition in the healthcare sector.199 The Bureau published a market study into technology -led 
innovati on in the Canadian financial services (FinTech) sector.200 The Bureau also published a new 
Market Studies Information Bulletin201 and consulted on a Guide to Efficiencies Analysis202 specifically 
for merger reviews, and launched updated Immunity and Leniency Pro grams.203 In addition, the 
Bureau is currently developing revised Abuse of Dominance Guidelines, which were made available 
for public consultation in May 2018.204 
3.199.   In 2016, the Bureau published an update of the Intellectual Property Enforcement Guidelines 
(IPEG s) originally published in 2000. The revised IPEGs provide clarification on the Bureau 's 
approach to the conduct of investigations of alleged anti ‑competitive activities that relate to 
intellectual property (IP), making it easier for stakeholders with a stake in IP matters to operate 
within the law. As one of the priorities of the Bureau is to provide increased clarity on how it deals 
with competition issues involving IP, it has committed to review the IPEGs annually as well as to 
revise them as needed in  light of experience, changing circumstances and decisions of the 
Competition Tribunal and the courts. The Bureau consulted on the 2016 IPEGs in November 2018.205 
The final version is expected to be released in the coming months.  
3.3.4.3   Developments in enforcement  
3.200.   For the 2015 -2018 period, it is estimated that the Courts set fines totalling CAD 32 million, 
and the Bureau imposed administrative monetary penalties amounting to CAD 30.2 million. In 
relation to merger control, 656 reviews were concluded, of which 188 w ere considered complex. 
Specifically, for the last reported and published fiscal period (2017 -18), CAD 14.8 million were 
imposed as fines in cartel cases, one individual was sentenced, and four guilty pleas were filed.206 
The Bureau completed 231 merger revi ews (161 non -complex and 70 complex) and six merger -
related consent agreements were registered with the Tribunal.207  
3.201.   Major developments and enforcement actions were carried out in relation to supplier 
collusion. An investigation into an international bid -rigging scheme led to three of the largest fines 
ever ordered by Canadian Courts for bid -rigging, where Japanese manufacturers of automobile 
components pleaded guilty to engaging in secret illegal arrangements with other suppliers of wire 
harnesses, alternat ors, ignition coils and electric power steering gears. The ongoing investigation 
into auto parts bid -rigging in Canada has led to thirteen guilty pleas and record -setting fines of more 
                                                
198 Competition Bureau Canada, 'Measuring Progress: Fiscal Years 2015 -2018 Strategic Vision Impact 
Report '. Viewed  at: http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/04362.html .  
199 Competition Bureau Year at a Glance, Performance Update for Fiscal Year 2016 –2017, p. 13. Viewed  
at: http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/vwapj/2016 -2017-Year-Glance -e.pdf/$file/2016 -
2017-Year-Glance -e.pdf.  
200 The market study report and a progress report are available from FinTech Market Study Portal. 
Competition Bureau Canada, 'FinTech Market Study Portal'. Viewed at: 
http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/04188.html .  
201 Competition Bureau Canada, 'Market studies Information Bulletin'. Viewed at: 
http://www.competitionb ureau.gc.ca/eic/site/cb -bc.nsf/eng/04390.html .  
202 Competition Bureau Canada, 'A practical guide to efficiencies analysis in merger reviews'. Viewed at: 
http://www.competit ionbureau.gc.ca/eic/site/cb -bc.nsf/eng/04350.html . 
203 Competition Bureau Canada, ' Launch of revised Immunity and Leniency Programs will enhance 
effective enforcement and prosecution '. Viewed at: https://www.canada.ca/en/competition -
bureau/news/2018/09/launch -of-revised -immunity -and-leniency -programs -will-enhance -effective -
enforcement -and-prosecution.html   
204 Competition Bureau Canada, 'Abused of Dominance – Enforcement Guidelines' (March 2018). Viewed 
at: http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/eng/04345.html .  
205 Competition Bureau Canada, ' Competition Bureau invites feedback on updated Intellectual Property 
Enforcement Guidelines ' (1 November 2018). Viewed  at: https://www.canada.ca/en/competition -
bureau/news/2018/11/competition -bureau -invites -feedback-on-updated -intellectual -property -enforcement -
guidelines.html .  
206 Annual Report of the Commissioner of Competition for the Year Ending March 31, 2018 , p. 8-9. 
Viewed  at: http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/vwapj/CB -AnnualReport -2017-18-
Eng.pdf/$file/CB -AnnualReport -2017-18-Eng.pdf . 
207 Annual Report of the Commissioner of Competition for the Year Endin g March 31, 2018 , p. 11. 
Viewed  at: http://www.competitionbureau.gc.ca/eic/site/cb -bc.nsf/vwapj/CB -AnnualRepor t-2017-18-
Eng.pdf/$file/CB -AnnualReport -2017-18-Eng.pdf . WT/TPR/S/389 • Canada  
 
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  than CAD 86 million.208 Another investigation led to several charges of s upplier collusion in 
infrastructure projects in a Canadian municipality.  
3.202.   Regarding cartel enforcement, a retail gas price fixing cartel in various markets in Quebec 
was disrupted with fines exceeding CAD 4 million imposed on the conspirators and terms of 
imprisonment totalling 54 months for six individuals.209 Also, a landmark decision of the Supreme 
Court was welcomed related to the Quebec gas price fixing case, confirming the Crown 's immunity 
from testifying in class actions to which it is not party.  
3.203.   On abuse of dominance, the Bureau succeeded in a long -fought case against the Toronto 
Real Estate Board for anti -competitive conduct that stifled innovation by placing restrictions on 
member access and use of real estate data in the Toronto market. The case, w hich also involved 
questions relating to the exercise of intellectual property rights (IPRs), was heard by both the 
Competition Tribunal and the Federal Court of Appeal, which shared the view that, among others, 
the conduct at issue did not benefit from th e statutory exception that relates to the exercise of IPRs. 
Ultimately, the Supreme Court denied leave to appeal, closing the case definitively in August 2018.210 
In January 2017, the Bureau also concluded a set of consent agreements with three major publish ers 
to resolve concerns related to their conduct in the e -book industry. Shortly thereafter, as no 
agreement was reached with a fourth major publisher, the Bureau filed an application with the 
Competition Tribunal to stop its alleged anti -competitive condu ct. An agreement with this 
fourth  publisher was ultimately reached in January 2018.  
3.204.   On merger review, the Bureau approved the Bayer/Monsanto merger under commitments 
and remedies that reflect its collaboration with other national competition agencies deal ing with this 
case. In eight other proposed mergers, the Bureau entered into consent agreements that required 
merging companies to sell assets or take other measures to address some competition concerns. 
The Bureau published a template for merger consent a greements to ensure transparency and to 
provide more insight into the terms that it negotiates for merger remedies. Similar divestitures were 
paralleled in other jurisdictions ' reviews of the Bayer/Monsanto merger, including in the 
United  States and the Eu ropean Commission.  
3.3.4.4   International cooperation  
3.205.   The Bureau 's International Affairs division is building relationships with other competition 
agencies to support enforcement. The division negotiates competition related cooperation 
instruments with internationa l counterparts. Moreover, the International Affairs Directorate at the 
Bureau, in partnership with Innovation, Science and Economic Development Canada and Global 
Affairs Canada, plays a key role in the negotiation and implementation of competition -related 
provisions in free trade agreements and Foreign Investment Promotion and Protection Agreements 
(FIPAs).211 The Bureau advocates for competition considerations in Canada 's agreements to ensure 
that the benefits of trade liberalization are not offset by anti -competitive business conduct and to 
provide opportunities for Canadian participation in world markets.212  
3.206.   The Competition Bureau cooperates with other jurisdictions based on international guidelines 
and recommendations, including the Recommendation of the OECD Council concerning International 
Co‑operation on Competition Investigations and Proceedings. The Competition Bureau currently has 
cooperation instruments relating to Canada 's competition and consumer protection laws with 
14 foreign jurisdictions: Mexi co; United States; Australia; Brazil; Chile; Colombia; the 
                                                
208 Competition Bureau Canada, 'Thirteenth guilty plea concludes auto parts bid -rigging investigations 
with fines totalling over $86 million' (19 October 2018). Viewed at: https://www.canada.ca/en/competition -
bureau/news/2018/10/thirteenth -guilty -plea-concludes -auto-parts-bid-rigging -investigations -with-fines-
totalling -over-86-million.html .  
209 Competition Bureau Canada, 'Irving pleads guilty in Quebec gasoline cartel case' 
(6 November  2017). Viewed at: https://www.canada.ca/en/competition -
bureau/news/2017/11/irving_pleads_guiltyinquebecgasolinecartelcase.html . 
210 Remarks by Interim Commissioner of Competition Matthew Boswell, 'Advancing Competition in  a 
Changing Marketplace ' (10 October 2018). Viewed at: https://www.canada.ca/en/competition -
bureau/news/2018/10/advancing -competit ion-in-a-changing -marketplace.html . 
211 Competition Bureau Canada, 'International Efforts ' (22 February  2018). Viewed  at: 
http://www.competitionbureau.gc.ca/eic/si te/cb-bc.nsf/eng/03763.html#tab2 .  
212 Competition Bureau Canada, 'International Trade'  (22 February  2018). Viewed  at: 
http://www.competitionbureau.gc.ca/eic/site/ cb-bc.nsf/eng/03763.html#tab4 .  WT/TPR/S/389 • Canada  
 
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  European  Union; Hong Kong, China; India; Japan; New Zealand; China; the Republic of Korea; and 
Chinese  Taipei. The United States Department of Justice has been working with the Competition 
Bureau a nd other partners to develop a Multilateral Framework on Procedures (MFP) in competition 
law investigations and enforcement. The Bureau has contributed input to the draft of the MFP and 
continues to participate in discussions with its counterparts.  
3.207.   To enh ance cross -border enforcement and promote sound competition policies 
internationally, the Bureau also participates in many fora, such as the International Competition 
Network, the Competition Committee of the OECD and the International Consumer Protection and 
Enforcement Network.  
3.208.   During fiscal years 2015 -2018, the Bureau concluded six cooperation instruments with 
international partners, including two memoranda of understanding (MOUs) to further enhance 
cooperation on competition matters between the Competi tion Bureau and China 's Ministry of 
Commerce and its National Development and Reform Commission; an MOU with Colombia 's 
competition authority, and three second -generation MOUs with competition authorities in 
New Zealand; Hong Kong, China; and Japan. In add ition, the Bureau supported Canadian trade 
initiatives by negotiating competition policy chapters in the renegotiation of NAFTA (CUSMA) and 
the negotiations with Pacific Alliance and Mercosur members.  
3.209.   On case enforcement, Canada cooperated closely with the  United States Department of 
Justice (DOJ) on the Nishikawa Rubber case, which led to a USD 130 million fine for harms caused 
both in the United States and in Canada, avoiding duplicated processes through the use of comity. 
The Bureau worked as well togeth er with the DOJ, and other enforcement partners, especially its 
counterparts at the European Commission and the Administrative Council for Economic Defense of 
Brazil, in relation to the above -mentioned Bayer/Monsanto merger.  
3.3.4.5   Price controls  
3.210.   Canada does not  impose price controls on most products. Exceptionally, the maximum prices 
of patented medicines are overseen by the Patented Medicine Prices Review Board (PMPRB). The 
Federal Government as well as provincial governments affect the prices of medicines in C anada. The 
Federal Government affects the maximum prices of patented medicines by its use of the Patent Act, 
whereas the provincial governments affect the prices of medicines through their drug reimbursement 
programmes. According to the Patent Act, the PMP RB has jurisdiction for any medicine to which a 
patent 'pertains '. If no patents pertain, then the price is not subject to PMPRB jurisdiction. The Board 
can hold public hearings to determine whether the price of a patented medicine is excessive, and if 
so, order price reductions and/or the offset of excess revenues. The PMPRB oversees the prices 
charged by patentees and does not have jurisdiction over prices charged by wholesalers or 
pharmacies, or over pharmacists ' professional fees. In addition, the gener ic industry has agreed to 
significant price restrictions for products in Canada, with selected products being limited to a 
10%-18% reduction in the price of the equivalent brand product.  
3.211.   The distribution of pharmaceutical products is also regulated at the federal and provincial 
levels. Federal regulations, including the Food and Drug Regulations, impose limits and licensing 
obligations on those who fabricate, package or label, test, import, distribute and wholesale.  
3.3.5   State trading, state -owned enterprises, a nd privatization  
3.212.   Wholly -owned federal or provincial organizations that are structured like privately -owned or 
independent companies are known as Crown corporations. Many of these enterprises serve vast, 
sparsely -populated areas that profit -making, private sector companies would have difficulties 
catering to. They were primarily created to meet public policy and commercial objectives, and do 
not result from preferences for public ownership per se . Crown corporations operate at arm 's length 
from the Government, but the degree of government control and financial support varies from 
enterprise to enterprise. Several depend on government funding, others are financially 
self-sustaining corporations, and some of them are profitable and return dividends to their sole 
owners.  
3.213.   The Financial Administration Act (FAA) establishes the framework for governance and 
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  in the constituent acts establishing the entities. Mo st Crown corporations are required to have their 
annual budgets and corporate plans approved by the Treasury Board (TB).213 Their boards of 
directors are appointed by the Governor in Council, who also appoints the Presidents and Chief 
Executive Officers in m ost cases.  
3.214.   The 44 federal parent Crown corporations active in 2018 operated in 13 market segments, 
notably in financial services, transportation, or as Canadian heritage institutions (Table A3. 3). Some 
of them, such as Export Development Canada, Destinati on Canada, and the Bank of Canada have 
mandates that relate to trade matters. At the sub -federal level, all provinces and territories have 
Crown corporations. No comprehensive listing of provincial Crown corporations is kept at the federal 
level. Provincia l Crown corporations were established to engage in a wide variety of activities, 
e.g. mining, railways, automobile insurance, telecommunications (SaskTel), and lotteries 
(Manitoba), but currently the largest provincial Crown corporations are concentrated i n electricity 
generation and transmission, and in financial services (Table 3.23).  
Table 3.23 Ten largest provincial Crown corporations, 2015  
Name  Sector  Annual revenues 
(CAD million)  
Caisse de dépôt et placement du Québec (CDPQ)  Finance  21,132  
Hydro -Québec  Power generation  13,851  
B.C. Hydro and Power   Power generation  5,812  
Ontario Power Generation  Power generation  5,476  
Manitoba Hydro -Electric Board  Power generation  2,324  
Saskatchewan Power Corp  Power generation  2,232  
ATB Financial  Finance  1,944  
Alberta Heritage Savings  Finance  1,825  
Manitoba Public Insurance  Finance  1,288  
Saskatchewan Telecommunications Holding Corporation 
(SaskTel)  Telecommunications  1,265  
Source:  Globe and Mail online information. Viewed at: https://www.theglobeandmail.com/report -on-
business/rob -magazine/top -1000/rankings/canadas -top-companies -by-industry/article304 93734/ . 
3.215.   A government -controlled enterprise that competes with private businesses in commercial 
markets is classified as a government business enterprise, for statistical reporting purpose s. At the 
provincial and territorial level, most Crown corporations are considered provincial (or territorial) 
business enterprises. Although the total assets of federal Crown corporations are far larger than 
those of the provincial Crown corporations comb ined, there has been a clear trend for several years 
that, while business volumes continue to grow at the provincial/territorial -level Crown corporations, 
revenues have been flat, or even declining, in the federal Crown corporations (Table 3.24). The 
contribution to the value added in the economy is far higher in the provincial/territorial than in 
federal Crown corporations.  
Table 3.24 Federal and provincial government business enterprises, 2015 -17 
(CAD million)  
 2015  2016  2017  
Federal government business enterprises     
Revenue  35,955  27,387  28,301 
Expenses  32,906  25,470  27,411 
Assets  589,917  615,145  635,071 
Provincial and territorial government 
business enterprises     
Revenues  90,667  93,078  94,539 
Expenses  90,460  95,162  96,198 
Assets  122,620  126,880  134,610 
Source:  Statistic s Canada, 10 -10-0023-01 (formerly CANSIM 385 -0039).  
                                                
213 Eight federal Crown corporations (Bank of Canada, Canada Council for the Arts, Canada Pension Plan 
Investment Board, Canadian Race Relations Foundation, the International Development Research Centre, 
National Arts Centre C orporation, the Public -Sector Pension Investment Board and Telefilm Canada ) are fully 
exempt from the requirement for TB approval of their annual corporate plans and budgets. The Canadian 
Broadcasting Corporation is partially exempt but must seek approval of its capital budget annually. The Royal 
Canadian Mint and Canada Development Investment Corporation submit their capital budgets for approval, but 
not their operating budgets . WT/TPR/S/389 • Canada  
 
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  3.216.   In addition to the Crown corporations, Canada has a number of shared -governance 
corporations and joint enterprises. In shared -governance corporations, the Government has the right 
to nominate members to the governing body of the corporate entity, though in most cases only a 
minority. Among the 83 shared -governance corporations, many operate in the transport sector 
(airport  or port authorities).214 In joint enterprises, of which there are two at present (the Lower 
Churchill Development Corporation Limited and North Portage Development Corporation), ownership 
is shared between the Federal Government and another level of governm ent. The Federal 
Government may also own enterprises jointly with the private sector, in "mixed enterprises ". 
However, there are no mixed enterprises at present.  
3.217.   Canada completed several important privatizations between the late 1980s and the end of 
the 1 990s. Since then, the number of Crown corporations has been stable.215 In recent years, the 
Freshwater Fish Marketing Corporation and Ridley Terminals Inc. have undergone transformations, 
and a competitive sale process for the complete divestment of public o wnership in the latter was 
launched in November 2018. Otherwise, no plans exist to privatize any Crown corporation or other 
government enterprise, either at the federal or provincial level, at present.  
3.218.   Canada notifies the WTO on a regular basis of entitie s it defines as state-trading enterprises 
(STEs) according to Article XVII (4)(a) of the GATT 1994 or paragraph 1 of the Understanding on 
the Interpretation of Article XVII . Two notifications were submitted in the period under review.216 
The latest, covering  the period 2015 -16 and 2016 -17, provided information on the activities of two 
federal Crown corporations – the Canadian Dairy Commission and the Freshwater Fish Marketing 
Corporation – as well as the 13 provincial and territorial Liquor Control Authoritie s engaged in retail 
sale, importation, and inter -provincial/territorial trade in beer, wine, spirits, and other alcoholic 
beverages.  
3.219.   The 2016 notification also included information on the Canadian Wheat Board (CWB). With 
the repeal of the Canadian Wheat B oard Act and the promulgation of the Marketing Freedom for 
Grain Farmers Act and the Canadian Wheat Board (Interim Operations) Act, effective 1  August 2012, 
the CWB 's monopoly on the marketing and sale of wheat and barley grown in certain provinces was 
dismantled. The CWB was commercialized as G3 Canada Limited under the Canada Business 
Corporations Act on 30 July 2015. As a private company with no exclusive or special rights or 
privileges, it is thus no longer designated as an STE.   
3.3.6   Government procurement  
3.3.6.1   Overview  
3.220.   The Government of Canada is one of the largest public buyers of goods and services in 
Canada, with purchases of approximately CAD 20.5 billion annually on behalf of federal departments 
and agencies.217 In Canada, "procurement " includes the purchase  of goods, services, and 
construction services. During the review period, government procurement at the federal level 
fluctuated for all three categories of goods, services and construction, with an overall total decline 
from CAD 28.5 billion in 2014 to CA D 15.6 billion in 2017 (Table 3.25).218 However, 2017 marks the 
first year that Canadian governmental departments were required to proactively publish their 
contracts on the Open Government Portal, a significant change from the previous process, wherein 
data was independently verified before being published in the Purchasing Activity Report. Moreover, 
as Table 3.25 shows, the number of transactions in 2017 increased slightly in comparison to previous 
                                                
214 Government of Canada online information. Viewed at: https://www.canada.ca/e n/treasury -board -
secretariat/services/reporting -government -spending/inventory -government -organizations/federal -
organizations -interests.html . 
215 Since the last TPR, PPP Canada was dissolved, and the Canada Infrastructure Bank was created.  
216 WTO documents G/ STR/N/16/CAN, 22 July 2016; and G/STR/N/17/CAN, 13 July 2018.  
217 Government of Canada online information. Viewed at: https://buyandsell.gc.c a/for-
businesses/selling -to-the-government -of-canada/the -procurement -process . 
218 The authorities noted that the  2014 figures are somewhat atypical, as  Public Services and 
Procurement Canada, legally Public Works and Government Services Canada (PWGSC) , award ed a multi -year 
Property and Facilities Management services co ntract valued at approximately CAD 10 billion . WT/TPR/S/389 • Canada  
 
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  years, to approximately 377,000. Reported procurement at th e provincial and territorial level is 
estimated at some CAD  19 billion.219   
Table 3.25 Overview of federal procurement by type, 2014 -17 
 2014  2015  2016  2017  
Goods      
Number  198,931  194,587  194,003  191,287  
Value (CAD '000) 4,502,706  6,694,402  8,145,156  3,247,688  
Services      
Number  125,700  132,763  133,663  162,147  
Value (CAD '000) 22,426,317  6,747,167  7,759,816  8,866,879  
Construction      
Number  16,711  15,540  15,795  16,881  
Value (CAD '000) 1,531,188  6,402,123  2,302,825  3,463,130  
Total      
Number  341,342  342,890  343,461  377,365  
Value (CAD '000) 28,460,211  19,843,693  18,207,798  15,577,699  
Source:  Treasury Board of Canada online information. Viewed at: https://www.canada.ca/en/treasury -board -
secretariat/corporate/reports/contracting -data.html . 
3.3.6.2   Legal, institutional and policy framework  
3.221.   The legal rules  that apply to government procurement at the federal level are different from 
those that apply to the provinces and territories, and the rules that apply to public bodies at the 
provincial and territorial levels vary in degrees of complexity and formality.  
3.222.   Federal procurement policy is established by the Treasury Board of Canada pursuant to the 
Financial Administration Act (FAA), and actual procurement is conducted by individual government 
entities as well as two common service organizations, Public Service s, and Procurement Canada, 
legally Public Works and Government Services Canada (PWGSC) and Shared Services Canada. The 
Treasury Board is responsible for establishing a procurement policy framework and for approving 
proposals to undertake capital projects a nd to enter into contracts above the dollar levels delegated 
to departments. The Treasury Board Secretariat is responsible for reviewing proposed procurement 
strategies requiring Cabinet or Treasury Board approval, for consistency with TB policy requiremen ts. 
Industry Canada is responsible for the coordination and management of the Canadian Annual 
Procurement Strategy, which determines the use of procurement in support of industrial and regional 
development.  
3.223.   The PWGSC is the federal departments ' and agencie s' central purchasing agent, real property 
manager, treasurer, accountant, pay and pension administrator, integrity adviser, and linguistic 
authority.220 The PWGSC is the Government 's principal purchasing arm. The PWGSC also provides 
departments and agencies  with expert procurement assistance, and develops, implements, and 
maintains a number of policies in the buying and selling field, including: the Canadian Content Policy; 
the Fairness Monitoring Policy (the PWGSC policy that establishes third -party monitor s to provide an 
impartial opinion on the fairness of procurement activity); the Policy on Green Procurement; and 
the Code of Conduct for Procurement. The PWGSC is responsible for developing procurement 
strategies for consideration by the Procurement Strate gy Committee and the review committees, 
and for implementing them.  
3.224.   The Government of Canada 's procurement activities are carried out pursuant to a governing 
framework, comprised of statutes and regulations, trade agreements, policies, and guidelines. The 
central pieces of legislation, governing procurement and its associated regulations  (at the federal 
level), are the Financial Administration Act (FAA) and the Government Contracts Regulations (GCRs), 
respectively. The FAA contains broad provisions applicable to federal government procurement, while 
the GCRs contain more specific and prescriptive provisions.  
                                                
219 The latest available complete information is for FY 2011 -12 and can be found on the Internal Trade 
Secretariat's website. Viewed at: https://www.cfta -alec.ca/wp -
content/pdfs/English/Statistics/Totals%20by%20year_Aggregate%20values_Table_en.pdf . 
220 Public Services and Procurement Canada online information. Viewed at: https://www.tpsgc -
pwgsc.gc.ca/app -acq/cndt -cndct/contexte -context -eng.html . WT/TPR/S/389 • Canada  
 
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  3.225.   Federal procurement policies, procedures, notices and circulars are available online. They 
apply to all federal government contracting activities. In accordance with the GCRs, procurement 
must be conducted in a manner that meets requirements in the most cos t-effective manner, provides 
equal opportunity to tender, and is consistent with Canada 's international obligations. Procurement 
policy is evaluated and updated on a regular basis.  
3.226.   The GCRs govern the bidding process. They provide that all bids must be pub licly-solicited, 
except for a few limited circumstances. Non -competitive procurement processes can be used for 
procurement below specified thresholds, when there is a pressing emergency, or where the nature 
of the work is such that it would not be in the p ublic interest to solicit bids221, only one person is 
capable of performing the contract . Pursuant to Section 6 of the GCRs, a contracting authority may 
enter into a contract without soliciting bids where the estimated expenditure is below CAD 25,000 
in the case of goods, CAD 40,000 in the case of services, or CAD  100,000 in the case of architectural, 
engineering, or other related services and development assistance projects. Suppliers may be 
selected through the Supplier Registration Information System, when  Standing Offers and Supply 
Arrangements are in place. For procurement above CAD  25,000, there are three basic types of 
solicitation methods: open bidding (formally called electronic bidding) through a public notice, 
traditional competitive bidding, and ad vance contract award notices (ACANs). The ACAN process 
may also be used when the contracting authority believes that only one supplier is capable of 
performing the contract, when the need is one of pressing emergency in which delay would be 
injurious to th e public interest, or if the nature of the work is such that it would not be in the public 
interest to solicit bids.222 
3.227.   Among procurement above CAD 25,000, competitive methods were utilized in 86% of cases 
in 2017, while non -competitive bids made up 1 4% of the total. The open bidding method was the 
most utilized in 2014 and 2015, but its use declined in 2016, when it accounted for 26.8% of 
contracts allocated using competitive methods in 2016, and for 23% of all contracts (based on 
Table  3.26). The most widel y-used method in 2016 was the traditional competitive method, which 
accounted for 61.6% of total bids. ACANs accounted for a relatively small share of total procurement 
contracts (1.4% in 2017).  
Table 3.26 Procurement by type of procedure, all contracts above CAD 25,000, 2014 -17 
 2014  
number  2014  
value  
(CAD '000)  2015  
number  2015  
value (CAD 
'000)  2016  
number  2016  
value  
(CAD '000)  2017  
number  2017  
value  
(CAD '000)  
Electronic 
bidding  6,007  13,182,025  7,551  9,226,351  7,592  4,143,757  6,011  3,744,013  
Traditional 
competitive  14,893  2,171,920  14,503  3,122,399  15,387  5,872,454  16,055  4,549,454  
ACANs  628 3,052,998  521 177,059  723 361,686  356 94,880  
Amendments  n.a. 5,864,705  n.a. 2,775,524  n.a. 3,836,011  n.a. 3,591,112  
Total 
competitive  21,598  24,462,054  22,575  15,630,158  23,702  14,360,063  22,422  11,889,462  
Non-
competitive  4,301  2,238,699  4,532  2,209,662  4,424  1,291,436  3,618  1,305,209  
Amendments  n.a. 416,218  n.a. 632,815  n.a. 1,353,029  n.a. 605,223  
Total non-
competitive  4,301  2,714,918  4,532  2,842,477  4,424  2,644,465  3,618  1,910,432  
Total  25,899  27,176,972  27,107  18,472,635  28,126  17,004,529  26,040  13,799,893  
n.a. Not applicable.  
Source:  Treasury Board of Canada online information. Viewed at:  
 https://www.canada.ca/en/treasury -board -secretariat/corporate/reports/contracting -data.html . 
3.228.   The Treasury Board 's procurement policy is set out in the  Contracting Policy. The Contracting 
Policy governs procurement for most of the federal departments and agencies. Furthermore, it sets 
                                                
221 Contracting Poli cy Notice 2007 -04 gives examples of when the nature of the work is such that it 
would not be in the public interest to solicit bids. A key reason is when the procurement involves national 
security considerations . 
222 Government of Canada, Guide for Managers - Best Practices for Using Advance Contract Award 
Notices (ACANS) . Viewed at: https://www.canada.ca/en/treasury -board -secretar iat/services/federal -real-
property -management/guide -managers.html . WT/TPR/S/389 • Canada  
 
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  out limits as to when departments may contract without seeking Treasury Board  approval, which is 
dependent upon the contr act type, value and solicitation method. The objective of the Government 's 
procurement contracting policy is to acquire goods and services and to carry out construction in a 
manner that enhances access, competition and fairness and results in best value or , if appropriate, 
the optimal balance of overall benefits to Canada and the Canadian people. The Contracting Policy 
emphasizes that Government contracting shall be conducted in a manner that will: stand the test of 
public scrutiny; ensure the pre -eminence of operational requirements; support appropriate national 
objectives such as Indigenous economic development; and comply with the government 's trade 
agreement obligations.  
3.229.   The Government is of the view that its procurement activities should be supportive o f its 
procurement objectives and of national objectives such as industrial and regional development, 
aboriginal economic development, the environment, and other socioeconomic objectives. To this 
end, the Government requires that all federal procurements in  excess of CAD 2 million are reviewed 
for potential regional and industrial benefits and other national objectives.223 The objective of the 
Government 's Procurement Review Policy is to enhance the use of procurement in support of 
industrial and regional deve lopment and other national objectives, in a manner that is fully consistent 
with the Government 's approved procurement objectives, and with Canada 's international trade 
obligations. Procurement initiatives in support of regional industrial development must , to the 
greatest extent possible, focus on assisting Canadian firms in becoming competitive in domestic and 
world marketplaces.224  
3.230.   The Procurement Review process is carried out by two levels of committees: the Procurement 
Strategy Committee (PSC), which is  a senior interdepartmental committee chaired by the PWGSC, 
that reviews departmental plans, identifies individual or aggregated procurements requiring 
individual review, and provides general guidance to the review committees, reviewing procurements 
betwee n CAD 2 million and CAD 20 million; and the Procurement Review Committees (PRCs), which 
review and recommend procurement strategies for individual procurements, or groups of 
procurements, normally exceeding CAD 20 million. The PSC determines, based primari ly on an 
analysis of departmental acquisition plans, those procurements to be subject to procurement review 
on a case -by-case basis, and notifies departments accordingly, within six weeks after departmental 
plans are received, subject to sufficient informa tion being available to allow an informed decision. 
For procurements under CAD 20 million, a decision to hold a PRC must be supported by an 
explanation as to why individual review is desirable. The record of review contains the PRC 's views 
and recommendati ons, a description of the industrial and regional or other benefits to be sought, 
considerations of incremental costs and funding options, and any relevant international 
considerations. In addition, it should contain an assessment of the risks associated w ith the 
achievement of national objectives, and of any impact the recommended procurement strategy 
might have on the performance, time and cost objectives of the operating department, as well as a 
plan for monitoring the achievement of the expected benefit s.225  
3.231.   Canada applies the Procurement Strategy for Aboriginal Business (PSAB), to promote 
aboriginal business development through the use of federal procurement contracts. In accordance 
with the PSAB, under certain conditions, a federal government procuremen t contract is set aside for 
aboriginal businesses. According to the most recent data available for 2015, government 
procurement set -asides under the PSAB amounted to CAD 93.5 million, approximately 0.47% of 
total federal procurement.  
3.232.   Participants in procur ement processes conducted by the PWGSC must comply with the 
PSPC's Code of Conduct for Procurement.226 The Code reflects basic principles and expectations with 
respect to federal procurement in Canada, and consolidates, in summary form, the Federal 
Governmen t's measures on conflict of interest and anti -corruption as well as other legislative and 
policy requirements relating specifically to procurement. During the period under review, efforts 
                                                
223 The review of the impact on the environment is done pursuant to Canada' s Policy on Green 
Procurement, which has been in force since 2006 and was updated in May 2018 and falls under the 
responsibility of the Treasury Board . 
224 Government of Canada, Procurement Review Policy . Viewed at: http://www.tbs -sct.gc.ca/pol/doc -
eng.aspx?id=12074 . 
225 Government of Canada, Procurement Rev iew Policy . Viewed at: http://www.tbs -sct.gc.ca/pol/doc -
eng.aspx?id=12074 . 
226 The Code may be viewed at: https://www.tpsgc -pwgsc.gc.ca/app -acq/cndt -cndct/contexte -context -
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  were made towards further improving governance in the procurement ar ea. For instance, in 
July 2015, an Integrity Regime was introduced to help ensure the Government does business only 
with ethical suppliers in Canada and abroad; the PSPC runs the Regime. Some features of the Regime 
include: (i) suppliers may be suspended f or up to 18 months if charged with a listed offence or if 
they have admitted guilt; (ii) suppliers convicted of a listed offence in Canada or abroad remain 
ineligible for a period of ten years to enter into a contract with the Government; the period may be  
reduced to five years if they address the conduct that resulted in ineligibility; (iii) suppliers are no 
longer automatically penalized for the actions of an affiliate in which they had no involvement; and 
(iv) the PWGSC can now require independent third -party assessments to assess the integrity of 
suppliers.  
3.233.   From September to December 2017, the Government conducted a public consultation to 
"Expand Canada 's Toolkit to Address Corporate Wrongdoing " to seek input on potential 
enhancements to the Integrity Regime and on a possible Canadian "remediation agreement " (RA) 
regime. According to the summary report prepared by the Government in February 2018, the 
participants generally expressed support for t he Integrity Regime 's objective.227 However, most also 
stated that additional discretion and flexibility needed to be built into the Regime to account for 
aggravating and mitigating factors in the determination of an appropriate period of debarment. 
Further,  most participants supported having a Canadian RA regime, acknowledging that RAs could 
be a useful additional tool for prosecutors to use at their discretion, in appropriate circumstances, 
to address corporate criminal wrongdoing. Amendments to the Crimina l Code of Canada,  which 
created the RA framework, came into force in 2018. Updates to the Integrity Regime policy are 
underway and are expected to come into effect in early 2019. The revised policy will introduce 
greater flexibility in department decisions , increase the number of triggers that can lead to 
debarment, and expand the scope of business ethics covered under the Integrity Regime into areas 
related to combatting human trafficking and protecting labour rights and the environment.   
3.234.   The Canadian Inte rnational Trade Tribunal (CITT) has jurisdiction over complaints made by 
suppliers regarding the procurement process in federal procurements covered by any of Canada 's 
applicable trade agreements. For Canadian suppliers, complaints about federal procuremen t 
processes for goods valued over CAD 25,300, or services valued over CAD 101,100, are within the 
jurisdiction of the CITT. The CITT hears complaints concerning procurements conducted by the 
Federal Government that are covered by the Canadian Free Trade Ag reement (CFTA), the revised 
WTO Agreement on Government Procurement (GPA), NAFTA, and certain other international trade 
agreements that include government procurement obligations. Such complaints may be brought by 
Canadian suppliers or by suppliers of part ies to applicable trade agreements. Under the CITT 
Procurement Inquiry Regulations, a complaint must be filed with the CITT within ten working days 
from the date on which the potential supplier first became aware of the grounds for complaint. The 
CITT usua lly issues its decision within 90 days of the complaint having been made. Potential 
remedies include the postponement of the contract 's award, ordering a procurement to be 
undertaken again, or a monetary award, which may include an award in respect of pote ntial lost 
profits where postponement or retendering are not practical. If not satisfied with the CITT ruling, a 
complainant, or the federal entity involved, may bring a motion in the Federal Court of Appeal for 
judicial review of the determination. A comp lainant may have recourse to the Courts, which also 
have the power to grant injunctions and set aside contracts.  
3.235.   Bid-rigging is a criminal offense under Canada 's competition legislation. Parties to a 
procurement process found guilty of it may be liable to  a fine and/or to imprisonment for a term of 
up to 14 years.  
3.236.   In the fiscal years from 1 April 2015 to 31 March 2018, a total of 210 complaints with respect 
to procurement were reviewed by the CITT. Of these, eight were resolved by the parties or were 
aband oned, 119 did not lead to the initiation of an investigation, and the remainder were 
investigated on merit. Of the 83 complaints that were investigated, the CITT determined 20 to be 
valid and the rest not valid.   
3.237.   For goods or services valued under the mone tary thresholds of the CITT, Canadian suppliers 
may file complaints with the Office of the Procurement Ombudsman (OPO). The Ombudsman has 
                                                
227 Government of Canada  (2018) , Expanding Canada 's Toolkit to Address Corporate Wrongdoing, What 
we Heard , 22 February. Viewed at: https://www.tpsgc -pwgsc.gc.ca/ci -if/ar-cw/documents/rapport -report -
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  the power to review the procurement practices of federal departments to verify fairness and 
transparency and make reco mmendations, though these do not have the force of a CITT 
recommendation.228 Outside of the OPO, the Business Dispute Management Program provides 
conflict prevention and alternative dispute resolution services to anyone experiencing difficulties with 
a contr act where the PWGSC is the contracting authority  
3.3.6.3   Interprovincial procurement arrangements  
3.3.6.3.1   Canadian Free Trade Agreement (CFTA)  
3.238.   Until 2017, Chapter 5 of the Agreement on Internal Trade (AIT), the Procurement Chapter, 
governed procurement across Canada. Its goal was to ensure equal market access conditions to 
procurement for "Canadian " suppliers, meaning those that have a place of business in Canada. The 
Chapter covered procurement by the signatories of the AIT, namely the Federal Government, 
10 provincial go vernments, and two territories.229 The Chapter also covered procurement by 
municipalities, municipal organizations, school boards, and publicly -funded academic, health and 
social services entities (MASH). The AIT applied to all government procurement of good s valued at 
CAD 25,000 or more, and of services and construction valued at CAD 100,000 and more. For MASH 
entities, the thresholds were CAD 100,000 for goods and services, and CAD 250,000 for construction. 
The AIT did not cover MASH entities in the Yukon a nd included only some Crown corporations. Some 
services were excluded from the scope of the AIT, which did not apply to procurement related to 
cultural industries, or aboriginal measures.  
3.239.   Except as otherwise required to comply with international obligatio ns, entities covered by 
the AIT were allowed to grant a preference for Canadian value -added, provided that the preference 
margin was no greater than 10%, and they were also permitted to limit tendering to Canadian goods, 
services or suppliers, provided the  procuring entity was satisfied that there was sufficient 
competition among Canadian suppliers.   
3.240.   The Canadian Free Trade Agreement (CFTA), entered into force on 1 July 2017, and replaced 
the AIT, which had applied to inter -provincial trade since 1995 (see  Section 2). Its objective is to 
reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, 
services, and investments within Canada, including in all emerging sectors of the economy, and to 
establish an open, efficient, and stable domestic market.230 Key features of the CFTA related to 
government procurement include an expansion of the scope of government entities covered by open 
procurement rules, the establishment of new independent bid protest mechanisms in each 
jurisdic tion, and the commitment to develop an electronic Canada -wide single point of access (online 
portal) to access information about procurement contracts.  
3.241.   The CFTA 's Government Procurement Chapter, which is broadly similar to the GPA, applies 
to any measure r egarding "covered procurement " within Canada. Covered procurement is defined 
as procurement for governmental purposes: (a) by a procuring entity; (b) of a good, a service, or 
any combination thereof, not procured with a view to commercial sale or resale, o r for use in the 
production or supply of a good or service for commercial sale or resale; (c) by any contractual 
means, including purchase, lease, and rental, with or without an option to buy; (d) for which the 
value equals or exceeds the relevant threshol d (see below); and (e) that is not otherwise excluded 
from coverage. (Table A3.5) Under the CFTA, each Party must provide open, transparent, and 
non-discriminatory access to covered procurement by its procuring entities. Furthermore, with 
respect to any me asure regarding covered procurement, each Party shall accord to: (a) the goods 
and services of any other Party, including those goods and services included in construction 
contracts, treatment no less favourable than the best treatment the Party accords to  its own such 
goods and services; and (b) the suppliers of goods and services of any other Party, including those 
goods and services included in construction contracts, treatment no less favourable than the best 
treatment the Party accords to its own suppl iers of such goods and services. With respect to the 
Government, this means that it shall not discriminate: (a) between the goods or services of a 
                                                
228 Canadian International Trade Tribunal online information. Viewed at: http://www.citt -
tcce.gc.ca/en/citt -or-opo. 
229 Nunavut was not a signatory to the AIT; it was just an observer. Viewed at: 
https: //www.gov.nu.ca/eia/news/nunavut -signs-canadian -free-trade -agreement  and https://www.ait -
aci.ca/about -ait/. 
230 CFTA Internal Trade Secretariat. Viewed at: https://ww w.cfta -alec.ca/ . WT/TPR/S/389 • Canada  
 
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  particular province or region, including those goods and services included in construction contracts, 
and tho se of any other province or region; or (b) between the suppliers of such goods or services of 
a particular province or region and those of any other province or region . 
3.242.   On 1 January 2018, the thresholds for covered procurement under the CFTA were adjusted 
for inflation in accordance with the CFTA. The current thresholds are:  
(a) for departments, ministries, agencies, boards, councils, committees, commissions, and similar 
agencies of a Party:  
i. CAD 25,300 or greater for goods, if the largest portion of the pr ocurement is for goods;  
ii. CAD 101,100 or greater for services, excluding construction, if the largest portion of 
the procurement is for services; or  
iii. CAD 101,100 or greater for construction;  
(b) for regional, local, district, and other forms of municipal government, municipal organizations, 
school boards, and publicly -funded academic, health, and social service entities, as well as any 
corporation or entity owned or controlled by one or more of the preceding entities:  
i. CAD 101,100 or greater for goods or se rvices, excluding construction; or  
ii. CAD 252,700 or greater for construction;  
(c) for Crown corporations, government enterprises, and other entities that are owned or controlled 
by a Party through ownership interests:  
i. CAD 505,400 or greater for goods or serv ices, excluding construction; or  
ii. CAD 5,053,900 or greater for construction.  
3.243.   Subsequent adjustments will be made to these thresholds and will come into force on 
1 January every two years after 1 January 2018.  
3.244.   For the most part, the Government Procurement Ch apter does not apply to: (a) public 
employment contracts; (b) non -legally binding agreements; (c) any form of assistance, such as 
grants, loans, equity infusions, guarantees, and fiscal incentives; (d) contracts awarded under a 
cooperation agreement betwee n a Party and an international cooperation organization if the 
procurement is financed, in whole or in part, by the organization, only to the extent that the 
agreement includes rules for awarding contracts that differ from the obligations of the Chapter; 
(e) the acquisition or rental of land, existing buildings, or other immovable property, or the rights 
thereon; and (f) measures necessary to protect intellectual property, provided that they are not a 
disguised restriction on trade. Certain provisions of th e Chapter do not apply to a procuring entity if 
it is procuring under the terms of a public private partnership (PPP).231 
3.245.   The procurement or acquisition of the following services or goods is excluded from the scope 
of the Government Procurement Chapter: fisc al agency or depository services; liquidation and 
management services for regulated financial institutions; services related to the sale, redemption, 
and distribution of public debt, including loans and government bonds, notes, and other securities; 
financ ial services with respect to the management of government financial assets and liabilities 
(i.e. treasury operations), including ancillary advisory and information services, whether or not 
delivered by a financial institution; health services or social ser vices; services that may, under 
applicable law, only be provided by licensed lawyers or notaries; and services of expert witnesses 
or factual witnesses used in court or legal proceedings. The CFTA also excludes the procurement of 
goods or services in certa in specific cases.232  
                                                
231 Article 504 Paragraphs 5 -9, and Article s 506.6(g), 508.2 -508.4, 508.6, 514, and 516.3 -516.5 . 
232 Goods and services: (i) financed primarily from donations  that require the procurement to be 
conducted in a manner inconsistent with the Chapt er; (ii) procured by a procuring entity on behalf of an entity 
not covered by the Chapter; (iii) between enterprises that are controlled by , or affiliated with , the same 
enterprise, or between one government body or enterprise and another; (iv) by non -governmental bodies that 
exercise governmental authority delegated to them; (v) from philanthropic institutions, non -profit 
organizations, prison labour, or natural  persons with disabilities; (vi) under a commercial agreement between a 
procuring entity which operates sporting or convention facilities and an entity not covered by the Chapter  that WT/TPR/S/389 • Canada  
 
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  3.246.   The Government Procurement Chapter does not apply to procurement that is part of a small 
business set -aside programme, provided that the programme is fair, open, transparent, and does 
not discriminate on the basis of origin or location  within Canada of goods, services, or suppliers. 
Procuring entities must publish a tender notice for each covered procurement on one of the 
designated tendering websites or systems. The CFTA notes that the Federal Government is 
developing a Single Point of  Access (SPA) for all procurement covered by the CETA (federal, 
provincial, territorial, and the MASH sector) in compliance with the requirements of the CETA . Once 
developed, the federal government will consult with the provincial and territorial governmen ts in 
order to determine how to adapt the SPA for the purposes of the CFTA. Furthermore, the CFTA states 
that once all CFTA Parties agree that the SPA is suitable for the purposes of the Agreement, tender 
notices for each covered procurement must be direct ly accessible through the SPA .  
3.247.   In accordance with the Government Procurement Chapter, limited tendering may only be 
used in specified circumstances, including if: (i) no tenders were submitted or no suppliers requested 
participation; (ii) no tenders that conform to the essential requirements of the tender documentation 
were submitted; (iii) no suppliers satisfied the conditions for participation; or (iv) the submitted 
tenders were collusive, provided that the requirements of the tender documentation are no t 
substantially modified. Limited tendering may also be used if the goods or services can be supplied 
only by a particular supplier, and no reasonable alternative or substitute goods or services exist.233 
Use of limited tendering may also be made for additio nal deliveries by the original supplier of goods 
or services that were not included in the initial procurement, if a change of supplier for such 
additional goods or services cannot be made for economic or technical reasons and would cause 
significant incon venience or substantial duplication of costs for the procuring entity. Finally, limited 
tendering may be used, if strictly necessary, and for reasons of urgency brought about by events 
unforeseeable by the procuring entity, if the goods or services could n ot be obtained in time using 
open tendering; or for goods purchased on a commodity market.  
3.248.   A procuring entity may determine that it is not in the public interest to award a contract. If 
this is not the case, contracts are awarded to the supplier that the p rocuring entity has determined 
to be capable of fulfilling the terms of the contract and that, based solely on the evaluation criteria 
specified in the tender notices and tender documentation, has submitted the most advantageous 
tender or, if price is the sole criterion, the lowest price: however, if a procuring entity receives a 
tender from a supplier with a price that is abnormally lower than the prices in other submitted 
tenders, it may verify with the supplier that it satisfies the conditions for partic ipation and is capable 
of fulfilling the terms of the contract.  
3.249.   The Government Procurement Chapter does not prevent a procuring entity from according 
a preference for Canadian value -added, or from limiting its tendering to Canadian goods, services, 
or supp liers, except as otherwise required to comply with international obligations, including the 
GPA, and provided that its purpose is not to avoid competition or to discriminate against any other 
Party's goods, services, or suppliers.234 The preference for Canad ian value -added, as defined in the 
                                                
contains provisions inconsistent with the Chapter ; (vii) conducted for t he specific purpose of providing 
international assistance , including  development aid, provided that the procuring entity does not discriminate on 
the basis of origin or location within Canada of goods, services, or suppliers ; or (viii) conducted under the 
particular procedure or condition of an international agreement relating to the stationing of troops or to the 
joint implementation by the signatory countries of a project; or under the particular procedure or condition of 
an international organization, or  funded by international grants, loans, or other assistance , if the procedure or 
condition would be inconsistent with the Chapter . 
233 Provided one of the following reasons apply: (i) the requirement is for a work of art;  (ii) the 
protection of patents, copy rights, or other exclusive rights;  (iii) due to an absence of competition for technical 
reasons;  (iv) the supply of goods or services is controlled by a supplier that is a  statutory monopoly;  (v) to 
ensure compatibility with existing goods, or to maintain specialized  goods  that must be maintained by the 
manufacturer of those goods or its representative ; (vi) the work is to be performed on a property by a 
contractor according to  provisions of a warranty or guarantee held in respect of the property  or the ori ginal 
work;  (vii) the work is to be performed on a leased building or related property, or  portions thereof, that may 
be performed only by the lessor; or  viii) the procurement is for subscriptions to newspapers, magazines, or  
other periodicals.  
234 Under the  CFTA, a Canadian good means a good which, if exported outside of Canada, would qualify 
as a good of Canada un der the appropriate rules of origin. A Canadian service means a service provided by a 
natural person based in Canada;  if a requirement consists of  only one service, provided by more than one  
natural person, the service will be considered to be Canadian if a minimum of 70 % of the total tender price for 
the service is provided by natural persons based in Canada;  if a requirement consists of two or mor e services , 
the service will be considered to be Canadian if a minimum of 70 % of the total tender price for the service is WT/TPR/S/389 • Canada  
 
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  CFTA (Article 503.4(a)), is the premium, no greater than 10%, that may be awarded during the 
evaluation of tenders for Canadian value -added.  
3.3.6.3.2   New West Partnership Trade Agreement (NWPTA)  
3.250.   The New West Partnership Agreement (NWPTA), which was signed on 30 April 2010 by the 
Premiers of the provinces of Alberta, British Columbia, and Saskatchewan, came into force on 
1 July 2010, and has been fully implemented since 1 July 2013. In November 2016, a Protocol of 
Accession was sign ed to incorporate the province of Manitoba into the NWPTA. In 2018, the 
procurement chapter was in force for British Columbia, Alberta and Saskatchewan 's government 
entities. Manitoba 's government entities and Crown corporations were fully covered by the N WPTA 
as of 1  July 2017. For government -owned commercial enterprises and other enterprises owned or 
controlled by the Manitoba government through ownership interest, municipal governments, school 
boards and publicly -funded academic, health and social servic e entities, as well as any corporation 
or entity owned or controlled by them, the procurement provisions of the NWPTA entered into force 
on 1 January 2019.235  
3.251.   The NWPTA applies to all levels of provincial government procurement and requires open 
and non -discriminatory procurement where the anticipated costs are at or above the following 
thresholds: CAD 10,000 or greater for goods; CAD 75,000 or greater for services; and CAD 100,000 
or greater for construction. The NWPTA also applies to the procurement of pro vincial Crown 
corporations, government -owned commercial enterprises, and other entities that are owned or 
controlled by an NWPTA provincial government; in this case, the thresholds are: CAD 25,000 for 
goods; and CAD 100,000 for services and for constructio n. In the case of NWPTA -covered 
procurement by municipalities, school boards, health regions and publicly -funded post -secondary 
institutions , the MASH sector, as well as by corporations or entities owned or controlled by one of 
them, the thresholds are: CAD 75,000 for goods and services; and CAD 200,000 for construction. 
There are certain limited exceptions to procurement under the NWPTA, inclu ding procurement of 
health and social services, services provided by lawyers and notaries, and purchases from a public 
body or non -profit organization. There are no party -specific exceptions for procurement.  
3.252.   The Parties to the NWPTA entered into an agreeme nt to replace the NWPTA 's bid protest 
mechanism (BPM) with a new standalone Bid Protest Mechanism. It entered into force on 
1 January  2019. The new BPM provides an independent arbitration process by which a supplier that 
believes a specific procurement was  conducted in a manner inconsistent with the obligations of any 
of the five following agreements may challenge the decision of the procuring entity: the NWPTA; the 
CFTA; the CETA; the GPA; or the CPTPP.  
3.3.6.3.3   Trade and Cooperation Agreement Between Quebec and On tario  
3.253.   The Agreement was signed in 2009, and the Public Procurement Chapter was subsequently 
revised in 2016. The Chapter ensures equality of treatment in the procurement process in both 
provinces for covered procurement. The thresholds under the Agreement for purchases by ministries 
and agencies are: CAD 25,300 for goods, and CAD 101,100 for services and construction. For 
procurement by school boards, academic, health and social service entities, and municipalities, the 
threshold is CAD 101,100 for goods, s ervices and construction. For entities of a commercial or 
industrial nature, and for energy entities, the thresholds are: CAD 505,400 for goods and services; 
and CAD 5,053,900 for construction.  
                                                
provided by natural persons based in Canada. A Canadian supplier means a supplier that ha s a place of 
business in Canada. Canadian va lue-added means:  (a) in relation to services, the proportion of the service 
contract performed by  natural persons based in Canada; and (b) in relation to goods, the value of the portion 
of the good produced in Canada  or the difference between the dutiable value of imported goods and the  selling 
price, taking into account any value added by manufacturers and  distributors, and including any costs incurred 
in Canada related to R&D, sales and marketing, communications and manuals,  customization and 
modification s, installation and support, warehousing and  distribution, tr aining, and after -sales service. Article 
521 of the CFTA, Consolidated Version. Viewed at: https://www.cfta -alec.ca/wp -
content/uploads/2017/06/CFTA -Consolidated -Text-Final-Print-Text-English.pdf . 
235 New West Partnership Trade  online information. Viewed at: 
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  3.254.   The Agreement allows a Party to accord a preference for Canad ian value -added, and to limit 
its tendering to Canadian goods, services or suppliers, so long as the measure is consistent with the 
Party's international trade agreements and that the measure 's purpose is not to discriminate against 
the other Party. There are some exceptions to the procurement coverage under the Agreement. For 
instance, the Procurement Chapter does not cover procurement for the production, transmission and 
distribution of renewable energy, other than hydro -electricity, by the Province of On tario. Quebec 
excluded procurement by Hydro -Québec of some goods and services. Ontario reserved the right for 
Ontario Power Generation to accord a preference of up to 20% to bids that provide benefits to the 
province, such as favouring local sub -contractin g, in the context of procurements relating to the 
construction or maintenance of nuclear facilities or related services. The Chapter does not cover 
procurement that targets poverty reduction for disadvantaged people for which the value is below 
CAD 300,000 , nor health and social services. Provided that it is in accordance with a Party 's 
international trade obligations, when purchasing mass transit vehicles, a Party may require that the 
successful bidder contract up to 25% of the contract value in Canada.  
3.3.6.4   WTO GPA and other agreements  
3.3.6.4.1   GPA 
3.255.   Canada has been a party to the GPA since 1996. Canada took part in the negotiations leading 
to the revised GPA, which came into force for Canada on 6 April 2014. Although at the federal level 
the revision of the GPA did not lead to substantial changes in Canada 's market access schedule, 
there were substantial changes at sub -central level. Since 2014, all provinces and territories and 
10 federal Crown corporations are included in Canada 's GPA schedule.  
3.256.   Canada grants national treatment to foreign suppliers in respect of procurement covered by 
the GPA and other international agreements. For transactions covered by the GPA, national 
treatment conditions apply to most federal procurement, subject to the agreed thresholds of SDRs 
130,000 for goods and services and SDR 5 million for construction contracts. In addition to general 
exceptions, a number of specific goods and services are excluded from the scope of the GPA. As 
required by the GPA, the thresholds for procurement contracts in Canadian dollars are revised and 
notified to the WTO every two years. For the period 2018 -19, the relevant thresholds are 
CAD 237,700 (SDR 130,000) for supplies of goods and services, and CAD 9.1 million (SDR 5 million) 
for construction contracts. For s ub-central government entities and other entities, the thresholds are 
CAD 649,100 (SDR 355,000) for supplies of goods and services, and CAD 9.1 million for construction 
contracts.236 
3.257.   In addition to the GPA, Canada has ten other international trade agreements  that cover 
government procurement; these are the CETA, the NAFTA/CUSMA, the CPTPP, the Canada -Chile 
FTA, the Canada -Honduras FTA, the Canada -Korea FTA, the Canada -Panama FTA, the Canada -Peru 
FTA, the CUFTA, and the Canada -Colombia FTA. While most of these  agreements only cover 
procurement at the federal level, the CETA and the CPTPP include sub -central coverage.  
3.3.6.4.2   Comprehensive Economic and Trade Agreement (CETA)  
3.258.   The Comprehensive Economic and Trade Agreement (CETA) , the t rade agreement between 
Canada and th e European Union entered into provisional application on 21 September 2017, 
including Chapter 19 , which covers government procurement. This Chapter specifies the areas where 
EU and Canadian businesses can provide goods and services to each other 's governme nts, at every 
level of government: national, regional and provincial, and local. It also specifies the specific rules 
that must be met on: the value of the goods, services, or construction services involved, and the 
goods, services and construction service s that are allowed.  
3.259.   Under the CETA, Canada and the European Union committed to open up procurement for a 
wide range of government entities, and to ensure that their respective procurement activities are 
conducted in a non -discriminatory, impartial and tra nsparent manner. As a signatory to the CETA, 
Canada agreed to provide EU suppliers with equal opportunity to bid on procurements of goods and 
services, including construction services, to a wide range of Canadian government entities at the 
federal, provinc ial and municipal levels. The CETA likewise opens up procurement at the central, 
                                                
236 WTO document  GPA/THR/CAN/1 , 15 January 2018.  WT/TPR/S/389 • Canada  
 
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  regional and local levels in the European Union. Further, as specified under Article 19.6, Canada is 
responsible for establishing a Single Point of Access (SPA) – an electroni c procurement platform 
where notices of intended and planned procurements are made publicly available, free of charge. 
Covered notices of procurement include notices from the Government of Canada, provincial and 
territorial governments (including their res pective MASH sectors), as well as Crown corporations and 
public utilities. Canada has until 21 September 2022 to implement the SPA and remains committed 
to meeting this deadline. Discussions are already underway with provincial and territorial 
governments to take steps towards establishing this electronic platform.  
3.260.   The CETA thresholds for procurement contracts by central government entities are similar 
to those of the GPA. For the period 2018 -19, the relevant thresholds are CAD 237,700 (SDR 130,000) 
for goo ds and services, and CAD 9.1 million (SDR 5 million) for construction services. For sub -central 
entities, they are: CAD 365,700 (SDR 200,000) for goods and services, and CAD 9.1 million 
(SDR 5 million) for construction services. For other entities, Crown c orporations and government 
enterprises, they are CAD 649,100 (SDR 355,000) for goods and services, and CAD 9.1 million 
(SDR 5 million) for construction services. Higher thresholds apply for goods and services 
procurement contracts (CAD 731,400, SDR 400,000 ) for procuring entities involved in certain core 
activities, such as: airports, public transportation networks, maritime ports, and fixed networks for 
drinking water, electricity, gas or heat. Certain exceptions are also included in Canada 's market 
access  schedule. These include: exceptions for cultural industries, Aboriginal businesses, R&D, 
financial services, services in the fields of recreation, sport and education, and social and health -
care services.  
3.261.   The Government Procurement Chapter contains the c onditions for participation in the 
procurement process, and provisions with respect to the qualifications of suppliers, technical 
specifications and tender documentation, time -periods, negotiations, the conditions to be met for 
the use of limited tendering , electronic auctions, treatment of tenders and awarding of contracts, 
transparency of procurement information and disclosure of information, and domestic review 
procedures. Article 19.19 established a Committee on Government Procurement, which meets upon 
request of a Party, to: (a) consider issues regarding public procurement that are referred to it by a 
Party; (b) exchange information relating to the public procurement opportunities in each Party; 
(c) discuss any other matters related to the operation of the Government Procurement Chapter; and 
(d) consider the promotion of coordinated activities to facilitate access for suppliers to procurement 
opportunities in the territory of each Party, in particular with a view to improving electronic access 
to publicl y-available information on each Party 's procurement regime, and initiatives to facilitate 
access for SMEs. The European Union and Canada committed to submit annually to the Committee 
on Government Procurement statistics relevant to the procurement covered by the Chapter.  
3.3.6.4.3   Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP)  
3.262.   The Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) was 
signed on 8 March 2018 between Australia, Brunei, Canada, Chile, Japan, Mal aysia, Mexico, 
New Zealand, Peru, Singapore and Viet Nam. After Mexico, Japan, Singapore and New Zealand, 
Canada became the fifth CPTPP signatory to ratify the agreement on 29 October 2018. Following the 
sixth ratification, by Australia on 30 October, and according to the procedure specified in the 
agreement, the CPTPP came into force on 30 December 2018.  
3.263.   With respect to government procurement, Canada 's market access schedule is largely based 
on the GPA and extends GPA -like treatment to CPTPP partners that do not participate in the GPA. 
The CPTPP also provides Canadian suppliers with guaranteed and expanded market access with 
existing trading partners, and new opportunities in Australia, Brunei, Malaysia and Viet Nam. 
Additionally, any current or future dome stic policy that members adopt must be implemented in a 
manner consistent with their obligations under the CPTPP (e.g. treating goods, services and suppliers 
from other CPTPP countries no less favourably than domestic goods, services and suppliers).  
3.264.   Canadi an provinces and territories took commitments on government procurement in the 
CPTPP that are comparable to their commitments in the GPA. Commitments at the sub -central level WT/TPR/S/389 • Canada  
 
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  are limited to the procurement activities conducted by provincial/territorial dep artments and 
agencies. Procurement conducted by Canadian municipalities is not covered under the CPTPP.237 
3.3.6.4.4   Canada -United States -Mexico Agreement (CUSMA)  
3.265.   In May 2017, the United States formally announced its intention to renegotiate NAFTA with 
Canada and Mexi co. Renegotiations began in August 2017 and, on 30 September 2018, the 
three  countries announced the completion of negotiations toward a new CUSMA. On 
30 November  2018, the Agreement was signed by the three countries at the G -20 meeting in 
Buenos  Aires. Th e provisions on government procurement under the CUSMA apply only between the 
United States and Mexico. Canada and the United States retain access to each other 's procurement 
markets, including at the sub -central level, through their obligations under the GPA. The government 
procurement obligations between Mexico and Canada are provided under the CPTPP.238 
3.266.   Until the CUSMA is implemented, the current NAFTA remains in force.  NAFTA provisions will 
continue to apply to trade between the three countries.  
3.3.6.4.5   Procurement obligations taken by provincial and territorial governments under 
trade agreements  
3.267.   Procurement at the sub -central level is governed by provincial or other sub -central 
government laws and procurement regulations. Provinces have their own procure ment agencies, 
and their own procurement policies. Canada did not table an offer in the original GPA at the 
sub-central level but included commitments in the GPA that came into force in 2014. Provinces and 
territories also now have government procurement c ommitments under the CFTA, the CETA, and 
the CPTPP . For procurement falling within the scope of the CFTA, the provinces grant similar access 
conditions to procurement from the rest of Canada. Thresholds under the GPA, SDR 355,000 for 
goods and services and  SDR 5 million for construction services, are higher than those under the 
CFTA. Also, the GPA does not apply to: preferences or restrictions on highway projects; preferences 
or restrictions associated with programmes promoting the development of distressed  areas; 
procurement that is intended to contribute to economic development within the provinces of 
Manitoba, Newfoundland and Labrador, New Brunswick, Prince Edward Island and Nova Scotia or 
the territories of Nunavut, Yukon or Northwest Territories.239 In Nunavut and the Northwest 
Territories, higher thresholds for procurement to be covered by the CFTA are applied. Any agreement 
involving Nunavut does not cover procurement subject to the Nunavut Nunavummi 
Nangminiqaqtunik Ikajuuti (NNI Policy) or successor p rogrammes having similar objectives, and 
contracts within the terms of Article 24 of the Nunavut Land Claims Agreement.   
3.268.   Some provinces grant provincial or regional preferences to procurement not falling within 
the scope of the CFTA or the GPA, while othe rs do not (Table A3.5). Several provinces and territories 
(Nova Scotia, Newfoundland and Labrador, Prince Edward Island, New Brunswick, Yukon, Northwest 
Territories and Nunavut) have exceptions to CFTA rules for procurement of up to CAD 1 million for 
various combinations of regional development purposes, which includes the promotion of SMEs  
(New Brunswick, and Yukon) , and employment in rural areas (New Brunswick, Yukon, Nova Scotia, 
Newfoundland and Labrador, and Prince Edward Island). In New Brunswick, for  procurement below 
the thresholds defined in the inter -provincial procurement agreements, the province may (but is not 
obliged to) apply a preference for products, services or suppliers from New Brunswick or other 
provinces from the Atlantic region.240 In No va Scotia, the Procurement Branch may consider and 
evaluate bids from other jurisdictions on the same basis that the purchasing authorities in those 
jurisdictions would treat a similar bid from a Nova Scotia supplier.  
                                                
237 Comprehensive and Progressive Agr eement for T rans-Pacific Partnership. Viewed at: 
https://international .gc.ca/trade -commerce/trade -agreements -accords -commerciaux/agr -acc/cptpp -
ptpgp/sectors -secteurs/government_procurement -marches_publics.aspx?lang=eng . 
238 Summary Backgrounder: United States -Mexico -Canada Agreement ( CUSMA ). Viewed at: 
http://international.gc.ca/trade -commerce/trade -agreements -accords -commerciaux/agr -acc/CUSMA -
aeumc/summary -somma ire.aspx?lang=eng . 
239 WTO document GPA/MOD/CAN/13 , 9 May 2014.  
240 New Brunswick Regulation 2014 -93 under the Procurement Act. Viewed at: 
https://www.canlii.org/en/nb/laws/regu/nb -reg-2014-93/latest/nb -reg-2014-
93.html?searchUrlHash=AAAAAQAKcHJlZmVyZW5jZQAAAAAB&offset=15965 . WT/TPR/S/389 • Canada  
 
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  3.269.   British Columbia 's procurement polici es require core government entities to openly procure 
goods, services and construction valued at CAD 5,000 or more for goods; CAD 25,000 or more for 
services; and CAD 25,000 or more for construction. British Columbian ministries, agencies, Crown 
corporatio ns and municipalities must use a competitive process that is appropriate to the value, 
complexity and profile of the business opportunity. Goods, services and construction subject to 
applicable trade agreements are required to use BC Bid, an electronic ten dering system, to advertise 
all procurements meeting the above threshold amounts.  
3.270.   The CFTA prescribes that the Ontario government 's procurement policies require that goods 
contracts valued at CAD  25,000 or more, and service and construction contracts value d at 
CAD 100,000 or more, for covered procurements must be subject to competitive tendering. All other 
provinces and territories also comply with this basic CFTA obligation. Ontario ministries and agencies 
must use an electronic tendering system to adverti se any open competitive procurements of goods 
and services. Ontario 's covered procurements cannot contain local preferences. Ontario is a party to 
the Trade and Cooperation Agreement between Ontario and Quebec (OQTCA) and to the CFTA, and 
has commitments u nder the GPA, the CETA and the CPTPP. The CFTA and the CETA contain 
procurement obligations for municipalities, schoolboards, and publicly -funded academic, health, and 
social service entities.  
3.271.   In Quebec, contracts for goods and services at or above thresh olds provided by trade 
agreements must be tendered publicly.241 Purchases of goods and services under the thresholds in 
trade agreements may be made directly by the different departments according to their internal 
trade procurement policy. The contracting p ublic body may require a quality assurance system, 
including ISO certification, for any type of contract. When ISO certification is required, a preferential 
margin up to 10% may be granted if competition is insufficient; this margin is granted solely for t he 
purpose of determining the successful tenderer, without affecting the value of the contract. On 
1 December 2017, an Act to facilitate the oversight of public bodies ' contracts and to establish the 
Autorité des marchés publics  (AMP) entered into force in  Quebec.242 The Act incorporates certain 
provisions of the FTAs to which Quebec public bodies are subject (for example the CETA), with 
respect to receiving and reviewing complaints filed by bidders. The AMP 's main duty is to monitor 
the integrity of public p rocurement processes and the application of certain provisions of the legal 
framework governing public contracts in Quebec. The AMP is empowered to examine the compliance 
of a tendering or awarding process for a public contract on its own initiative, after  a complaint is 
filed by an interested person, or on the request of the chair of the treasury board of Quebec or a 
bidder.  
3.272.   In December 2016, the Newfoundland and Labrador government enacted new legislation to 
modernize its procurement framework. On 24 Mar ch 2018, the Public Procurement Act came into 
effect and replaced the 1990 Public Tender Act. The main purpose of the Public Procurement Act is 
to establish a statutory framework which enables public bodies to achieve best value, transparency 
and accountab ility in procurement. It also aims at: fostering and encouraging participation in 
procurement by suppliers; promoting competition among suppliers; providing for the fair and 
equitable treatment of all suppliers and contractors; and valuing diversity in pro curement.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.273.   During the review period, intellectual property (IP) issues continued to play an important 
role in Canada 's domestic legislative activity and in its international trade policy. Canada remains 
among the top 20  countries in international innovation rankings, although it lost some ground during 
the review period, falling from 15th place in the Global Innovation Index in 2015, to 18th in 2018.243 
Canada 's IP protection ranking also declined somewhat during the revie w period, from 12th place in 
                                                
241 For Quebec,  the thresholds vary according to the type of entity. For example, the thresholds for 
departments are not the same as for Crown corporations.  
242 Loi sur l 'autorité des marchés publics, 2017, chapitre A -33.2.1 . Viewed at: 
http://legisquebec.gouv.qc.ca/fr/showdoc/cs/A -33.2.1 . 
243 Global Innovation Index 2018 Report . Viewed at: https://www.globalinnovationindex.org/gii -2018-
report. WT/TPR/S/389 • Canada  
 
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  2014 to 18th in 2018.244 Canadian Business Expenditure on Research and Development (BERD), an 
indicator for innovative activity, declined during the period under review from CAD 34.2 billion in 
2014 to CAD 32.8 billion in 2017.245 During the review period, BERD intensity fell from 1.07% in 
2011 to 0.93% in 2014246, illustrating that R&D investment by businesses is lagging behind 
GDP growth.  
3.274.   The Government 's goals with respect to IP policy are contained in several documents. The 
Government of Canada 's Innovation and Skills Plan and the Canadian Intellectual Property Office 's 
(CIPO) new Five -Year Business Strategy for 2017 -22 both call for ensuring that Canadian businesses 
and innovators have the support they need to grow. As part of t he Plan, Innovation, Science and 
Economic Development Canada (ISED) launched Canada 's Intellectual Property (IP) Strategy on 
26 April 2018. This Strategy is primarily focused on developing new IP tools for businesses, 
increasing awareness with respect to I P protection, and countering IP misuse that harms both 
consumers and businesses. It also deals with needed legislative reforms and calls for amendments 
of key IP laws to ensure the removal of barriers to innovation, particularly any loopholes that allow 
those seeking to use IP in bad faith to stall innovation for their own gain. The IP Strategy also calls 
for the creation of an independent body to oversee patent and trademark agents, to ensure that 
professional and ethical standards are maintained.  
3.275.   As part of the IP Strategy, the CIPO will launch a suite of programmes to help improve 
IP literacy among Canadians. The IP Strategy includes support for domestic and international 
engagement between Indigenous People and decision -makers, as well as for research ac tivities and 
capacity building. The IP Strategy also supports training for federal employees who deal with 
IP governance. Additionally, the IP Strategy calls for providing tools to support Canadian businesses 
as they learn about IP and pursue their own IP strategies. For that, the Canadian Government is 
creating a patent collective, to bring together businesses to facilitate better IP outcomes for 
members. The patent collective will allow the coming together of firms to share in IP expertise and 
strategy, i ncluding gaining access to a larger collection of patents and IP.247 Also, new Intellectual 
Property Guidelines (IPEGs) were issued, to deal with competition policy issues.  
3.276.   During the period under review, Canada 's overall trade balance in technology -intensiv e 
services deteriorated, and the deficit widened to CAD 1,416 million in 2016, before falling to 
CAD 532 million in 2017, mainly as a result of a higher increase in exports than in imports. Exports 
of technology -intensive services totalled CAD 26,149 milli on in 2017, while imports reached 
CAD 26,682 million. The categories "computer and information services " and "R&D" are the largest 
components of exported technology -intensive services, together representing 56.7% of all 
technology -intensive service receipt s and 21.4% of all commercial services exports in 2017 
(Chart  3.6). 
3.277.   With respect to payments, the main component is charges for the use of IPRs, which totalled 
CAD 15,437 million in 2017, or 57.9% of imports of technology -intensive services, and 22.5% of all 
imports of commercial services. Within the category of charges for IPR use, the deficit is most 
pronounced with respect to "patents and industrial designs" and "software and other royalties". 
(Chart 3.7).  Along with being the largest category of import s of technology -intensive services, 
"charges for use of intellectual property" is responsible for the overall trade deficit in 
technology -intensive services.  
 
                                                
244 World Economic Forum (WEF) (2018), The Global Competitiveness Report 2018 . Viewed  at: 
http://www3.weforum.org/docs/GCR2018/05FullReport/TheGlob alCompetitivenessReport2018.pdf . 
245 Statistics Canada online information. Viewed at: 
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2710027302 . 
246 Statistics Canada, Tables CANSIM 358 -0024 (BERD) and CANSIM 379 -0031 (GDP at basic prices by 
NAICS). 2014 GDP data from September 2014. Viewed at : www.statcan.gc.ca . 
247 Government of Canada online information. Viewe d at: https://www.canada.ca/en/innovation -
science -economic -development/news/2018/04/government -of-canada -launches -intellectual -property -
strategy.html . WT/TPR/S/389 • Canada  
 
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  Chart 3.6 Trade in technology -intensive services, 2010 -17 
 
Source:  Statistics Canada, CANSIM Table 376 -0033 (International transactions in services, commercial 
services by category).  
Chart 3.7 Charges for the use of intellectual property rights, 2010 -17 
 
Source:  Statistics Canada, CANSIM Table 376 -0033 (International transactions in services, commercial 
services by category).  -3,000-2,000-1,00001,0002,0003,000
-55-45-35-25-15-5515253545
2010 2011 2012 2013 2014 2015 2016 2017
Architectural, engineering, and other technical services
Research and development
Charges for the use of intellectual property
Computer and information services
Trade balance technology-intensive services (right-hand axis)(Percentage of commercial services receipts and payments)
ReceiptsPayment
s(CAD million)
-17,000-12,000-7,000-2,0003,0008,000
2010 2011 2012 2013 2014 2015 2016 2017
Software and other royalties Copyrights and related rights
Franchises Trademarks
Patents and industrial design Charges for the use of intellectual property trade balanceChart 3.[CAN] Charges for use of intellectual propoerty rights, 2010 -17
(CAD million)
Source:   Statistics Canada, Table 36 -10-0006-01 (International transactions in services, commercial services by 
category).
ReceiptsPaymentsWT/TPR/S/389 • Canada  
 
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  3.3.7.2   General institutional and regulatory framework  
3.278.   The Canadian Intellectual Property Office (CIPO, a part of the ISED, is a Special Ope rating 
Agency (SOA) responsible for the administration and processing of the greater part of IP in Canada. 
The CIPO 's areas of activity include trademarks, geographical indications (GIs), patents, copyright, 
industrial designs and integrated circuit topogr aphies. The CIPO 's mandate is to deliver high quality 
and timely IP services to customers, and to increase awareness, knowledge and effective use of IP 
by Canadians.248 
3.279.   Canada updated all its IP laws during the review period, mostly to implement WIPO 
agreeme nts and FTA provisions. The main regulatory framework at the federal level is composed of 
six different laws and their amendments and regulations: the Patent Act; the Trade -marks Act; the 
Copyright Act; the Industrial Design Act; the Integrated Circuit Top ography Act; and the Plant 
Breeders ' Rights Act (Table A3.6). These statutes have been amended over time to adapt to 
international treaties and in response to global technological developments, public access 
requirements, and the need to modernize the legi slation, facilitate implementation, and enhance 
enforcement effectiveness. The ISED is responsible for the first five acts, with the CIPO administering 
those same first five acts. The CIPO also maintains databases of registered patents, copyright, 
trademar ks, industrial designs and integrated circuit topographies, as well as a list of protected 
geographical indications (GIs). The Canadian Food Inspection Agency (CFIA) administers the Plant 
Breeders ' Rights Act, which applies to certain new plant varieties. The ISED and Canadian Heritage 
share responsibility for copyright policy.  
3.280.   Canada participates in a number of WIPO -administered treaties and bilateral IP treaties 
(Table 3.27). Some of Canada 's FTAs also contain provisions with respect to IP, including the 
North  America Free Trade Agreement (NAFTA), Canada -United States -Mexico Agreement (CUSMA) 
and the Canada -European Union Comprehensive Economic and Trade Agreement (CETA), the 
Comprehensive and Progressive Agreement for Trans -Pacific Partnership and the Can ada-Ukraine 
Free Trade Agreement. During the review period, Canada joined the Marrakesh Treaty to Facilitate 
Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled 
(Marrakesh Treaty), which entered into force on 30 September 2016.  
Table 3.27 Canada 's participation in selected Intellectual Property Protection agreements  
Agreement/entry into force for Canada  
WIPO -administered treaties  
• Hague Agreement Concerning the International Registration of Industrial Designs 
(5 November  2018)  
• Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired or Otherwise Print Disabled (30 September 2016)  
• WIPO Copyright Treaty (13 August 2014 ) 
• WIPO Performances and Phonograms Treaty (13 August 2014)  
• Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting 
Organizations (4 June 1998)  
• Budapest Treaty on the International Recognition of the Deposit of Microorg anisms for the Purposes 
of Patent Procedure (21 September 1996)  
• Strasbourg Agreement Concerning the International Patent Classification (11 January 1996)  
• Patent Cooperation Treaty (2 January 1990)  
• Convention Establishing the World Intellectual Property Organization (26 June 1970)  
• Berne Convention for the Protection of Literary and Artistic Works (10 April 1928)  
• Paris Convention for the Protection of Industrial Property (1 September 1923)  
IP-related multilateral treaties  
• Convention on Cybercrime (1 N ovember 2015)  
• Protocol (III) additional to the Geneva Conventions of 12 August 1949, and relating to the adoption 
of an additional distinctive emblem (25 May 2008)  
• Convention on the Protection and Promotion of the Diversity of Cultural Expressions 2005 
(18 March  2007)  
• International Plant Protection Convention (2 October 2005)  
• International Treaty on Plant Genetic Resources for Food and Agriculture (29 June 2004)  
• Convention for the Protection of Cultural Property in the Event of Armed Conflict (11 March  1999)  
• WTO Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS Agreement) 
(1994) (1  January 1995)  
• Convention on Biological Diversity (29 December 1993)  
                                                
248 CIPO online information. Viewed at: http://www.ic.gc.ca/eic/site/cipointernet -
internetopic.nsf/eng/home . WT/TPR/S/389 • Canada  
 
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  Agreement/entry into force for Canada  
• United Nations Convention on Contracts for the International Sale of Goods (1 M ay 1992)  
• International Convention for the Protection of New Varieties of Plants (UPOV) (4 March 1991)  
• Protocol 3, annexed to the Universal Copyright Convention, as signed at Geneva on 
6 September  1952 concerning the effective date of instruments of ratif ication or acceptance of or 
accession to that Convention (10 May 1962)  
Source:  WIPO.  
3.281.   In January 2014, the Government of Canada initiated procedures towards accession to, and 
domestic implementation of, the following five international treaties related to  IP: (i) the Protocol 
Relating to the Madrid Agreement Concerning the International Registration of Marks ( "Madrid 
Protocol "); (ii) the Singapore Treaty on the Law of Trademarks ( "Singapore Treaty "); (iii) the Nice 
Agreement Concerning the International Classification of Goods and Services for the Purposes of the 
Registration of Marks ( "Nice Agreement "); (iv) the Geneva Act of The Hague Agreement Concerning 
the International Registration of Industrial Designs ( "Geneva Act "); and (v) the Patent Law Treaty.  
Although draft legislation has been adopted for their implementation, as of late November 2018, 
only one of these five treaties had entered into force: The Hague Agreement Concerning the 
International Registration of Industrial Designs, on 5 November 2018 . 
3.282.   During the review period, the Government has negotiated several bilateral and plurilateral 
agreements with other countries, where IP issues have been covered. These agreements include the 
CETA, the CUSMA, and the CPTPP.  
3.283.   The CETA , which provisionally entered into force on 21 September 2017 , touches upon 
virtually every sector of its signatories ' economies, including IPRs. It promotes effective protection 
for EU and Canadian IPR holders via specific commitments, including on copyright and related rights , 
trademarks, designs, patents, GIs, and plant varieties. In particular, the CETA recognizes the special 
status of, and offers protection on the Canadian market for, certain European agricultural products 
from specific geographical regions in the European Union that are protected as GIs. The IP chapter 
of the CETA also aims at strengthening IPR enforcement, and reinforcing Canada 's border measures 
against counterfeit trademark goods, pirated copyright goods and counterfeit GI goods.  
3.284.   The Comprehensive and Pr ogressive Agreement for Trans -Pacific Partnership (CPTPP) 
contains a comprehensive chapter on IP, which includes provisions across almost all areas of IPR 
protection and enforcement, setting up a regional standard for the protection and enforcement of 
IPRs across the Asia -Pacific region. It establishes a clear and predictable standard on IP for creators, 
innovators and investors operating in the Asia -Pacific region, building on international IP standards. 
Parties to the CPTPP also agreed to suspend a number  of IP provisions from the original Trans -Pacific 
Partnership Agreement, in areas such as patents, pharmaceuticals, copyright, Internet service 
provider (ISP) liability, and IPR enforcement, with a view to reflecting Parties ' interests and priorities 
in rebalancing the IP outcome, and creating a common standard on IP in the Asia -Pacific region.249 
3.285.   Regarding IP, the CUSMA requires Parties to provide ten years of data protection for biologic 
drugs and introduces a definition of biologic drugs eligible for prote ction. Canada currently provides 
eight years of data protection and has a five -year transition period to meet this obligation, following 
the entry into force of the Agreement. The CUSMA also includes an obligation to provide patent term 
adjustment (PTA) in  respect of "unreasonable " patent office delays. Canada does not currently 
provide PTA in its domestic regime and has a 4.5 -year transition period to meet this obligation. 
Regarding the term of protection for copyright and related rights, the CUSMA require s Parties to 
provide a term of protection of "life of the author plus 70 years ". Canada currently provides a term 
of "life plus 50 years " and has a 2.5 -year transition period to meet this obligation. The CUSMA also 
requires Canada to extend the term of pro tection for sound recordings from 70 to 75 years, without 
a transition period. The Agreement also requires Parties ' border authorities to have ex officio  
authority to detain suspected counterfeit trademark or pirated copyright goods in transit (Canada 
currently provides ex officio  authority in respect of suspected counterfeit and pirated goods upon 
import and export). The CUSMA IP chapter also includes criminal remedies in respect of rights 
management information (RMI), which will require changes to Canada 's domestic regime. Regarding 
trade secrets, the CUSMA IP chapter includes significant criminal and civil trade secrets safeguards 
                                                
249 Governme nt of Canada online information. Viewed at: http://international.gc.ca/trade -
commerce/trade -agreements -accords -commerciaux/agr -acc/cptpp -ptpgp/sectors -secteurs/ip -
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  that may require legislation. Regarding ISP liability, the IP chapter includes flexibilities that enable 
Canada to maintain it s "Notice and Notice " regime.  
3.286.   During the period under review, Canada notified the TRIPS Council of bills aimed at amending 
the Copyright Act250; both the Copyright Act and the Trademarks Act251; and the Patent Act252 (see 
below). Canada has continued to maintain  an active participation in the TRIPS Council 's discussions 
on enforcement: in 2016 Canada presented to the TRIPS Council a written submission through which 
it shared its national experience to combat the selling of counterfeit products over the Internet.253 
Canada has also expressed a wish to consult with other delegations on how to advance the Work 
Programme on E -Commerce in the TRIPS Council.254 Canada submitted to the WTO its most recent 
reports on the Implementation of Article 66.2 of the TRIPS Agreement ( technology transfer to LDCs) 
and Technical Cooperation Activities in October 2018.255  
3.3.7.3   Patents  
3.287.   During the review period, the CIPO implemented a Quality Management System (QMS) for 
patents that follows the requirements of ISO 9001:2015. The main pieces of leg islation on patents 
are the Patent Act, 1985 (as amended) and the Patent Rules, 1996 (as amended). The period of 
protection is 20 years from the filing date. Patent protection coverage includes new and useful 
inventions or new and useful improvements of ex isting inventions.  
3.288.   During the review period, important changes were tabled, resulting in substantial 
amendments to Canada 's patent legislation, some of which have entered into force and others which 
have not. The Budget Implementation Act II, a bill to ame nd and make the Patent Act consistent 
with the mostly procedural provisions of the Patent Law Treaty (Bill C -43), received Royal Ass ent on 
12 December 2014. Bill C -59, "An Act to implement certain provisions of the budget tabled in 
Parliament on 21 April 2 015 and other measures ", received Royal Ass ent on 21 April 2015. Bill C -30, 
"An Act to implement the Comprehensive Economic and Trade Agreement between Canada and the 
European Union and its Member States and to provide for certain other measures ", received  Royal 
Assent on 16 May 2017. Bill C -86, "A second Act to implement certain provisions of the budget 
tabled in Parliament on 27 February 2018 and other measures ", received Royal Ass ent on 
13 December 2018. Portions of these bills have yet to come into forc e. The authorities noted that 
the amendments to the Patent Act introduced in Bill C -43 will come into force on a day fixed by order 
of the Governor in Council and will need to be timed with forthcoming amendments to the Patent 
Rules. Therefore, the Patent Law Treaty (PLT) has not yet been ratified. The coming -into-force date 
of Patent Act amendments introduced in Bill C -43 will be established after the relevant amendments 
to the Patent Rules have been prepared and after the CIPO 's IT systems have been appro priately 
updated.256 On 1 December 2018, the proposed Patent Rules were published in the Canada Gazette 
Part 1, with a deadline of 31 December 2018 to provide comments. The authorities have provided 
late-2019 as an estimated time when the proposed Rules coul d come into force. Bill C -43 was notified 
to the WTO in April 2015. In its notification to the WTO, Canada stated that the coming -into-force 
date of the changes will be established in the Patent Rules, which are currently being drafted.257 
3.289.   The authorities no ted that the Canadian patent regime is already compliant with many 
aspects of the PLT; however, to ratify the PLT, some changes are required to the Patent Act, for 
example, with respect to filing date requirements, claiming date priority, assignment, and 
representation.258 Most of these changes are included in Bill C -43, which proposes amendments to 
the Patent Act which would result in modifications to the patent regime, including: (i) changes to 
                                                
250 WTO documents  IP/N/1/CAN/8 , and IP/N/1/CAN/C/4 , 22 April 2015 ; and IP/N/1/CAN/15 , and 
IP/N/1/CAN/C/6 , 7 June 2016 . 
251 WTO documents IP/N/1/CAN/12 , IP/N/1/CAN/C/5 , and IP/N/1/CAN/T/4 , 22 April 2015 . 
252 WTO documents IP/N/1/CAN/10 , and IP/N/1/CAN/P/10 , 22 April 2015 . 
253 WTO document IP/C/W/613 , 27 May 2016.  
254 WTO document s IP/C/W/613/Add.1 , 28 October 2016; IP/C/M/83 , 2 December 2016; and 
IP/C/M/85, 27 April 2017.  
255 WTO doc uments IP/C/W/646/Add.4, 26 October 2018; and IP/C/W/647/Add.4, 25 October 2018, 
respectively.  
256 Canadian Intellectual Property Office (CIPO) online information. Viewed at: 
http://www.ic.gc.ca/eic/site/cipointernet -internetopic.nsf/eng/wr03892.html .  
257 WTO documents IP/N/1/CAN/10, and IP/N/1/CAN/P/10, 22 April 2015.  
258 Canadian Intellectual Property Office (CIPO) online information. Viewed at: 
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  the filing date requirements; (ii) amendments to the abandonmen t/reinstatement regime, including 
the introduction of notifications prior to abandonment; (iii) allowing anyone to pay maintenance fees 
by lifting certain requirements on representation; (iv) allowing for the restoration of priority; 
(v) preventing the rev ocation of granted patents on the basis of an administrative defect during the 
application stage; and (vi) introducing measures for the protection of third parties.  
3.290.   The changes with respect to the filing date requirements are particularly important, since 
"the establishment of the filing plays a decisive role in defining the term and scope of protection, 
and in the ability to benefit from advantages conferred under certain international treaties (such as 
priority rights under the Paris Convention) ".259 When t he proposed changes are implemented, 
applicants will no longer be required to pay a filing fee for the purposes of establishing a filing date, 
and will be allowed, for the purposes of establishing a filing date, to submit their application in a 
language ot her than English or French, or to substitute a reference to another previously -filed 
application for part of their application. The changes proposed will also allow applicants to apply for 
the restoration of the right of priority in certain situations; und er the current legislation, a priority 
claim must be made within 12 months of the earlier date of the previously -filed application. With 
the proposed amendments to the Patent Rules, applicants will be notified before an application is 
deemed abandoned, whi le under the current regime, applicants who do not pay their maintenance 
fee by the due date or fail to request examination before the prescribed time -limit, are not notified, 
and failure to act in these cases causes the immediate abandonment of an applica tion. As a result 
of the new notification requirements in the PLT, applicants and patentees will be provided with a 
longer period to address a missed maintenance fee payment.   
3.291.   As a caveat, the authorities noted that, by linking the period of abandonment an d 
reinstatement of an application to the sending of a notice by the Patent Office, the changes will 
potentially increase the market uncertainty period for third parties interested in exploiting the patent 
compared with the current patent regime. A third pa rty monitoring the payment of maintenance fees 
for a given application may not be able to determine with certainty when that application is 
irrevocably abandoned, even if they note that maintenance fee payments are missed. Similarly, the 
proposed changes w ill eliminate the possibility of having a patent invalidated because of 
administrative lapses, which would make it more difficult for third parties to exploit the patent. To 
counter this, the authorities introduced new provisions to mitigate the impact of potentially longer 
periods of market uncertainty and to discourage uncompetitive behaviour by, for example, providing 
protection against infringement proceedings for those third parties who start using, or make 
preparations to use, a patented invention aft er a defined period of time has elapsed after IPRs have 
become uncertain.260 
3.292.   During most of the review period, Canada did not provide any form of patent term restoration 
or extension to compensate for the part of the life of a pharmaceutical patent consumed by clinical 
trials and delays due to pre -market regulatory approval requirements processes. However, the CETA 
contained new commitments on IP and pharmaceutical patents that introduced changes to existing 
Canadian law to allow for additional ( sui generis)  protection for eligible pharmaceutical patents. 
Under the CETA, Canada agreed to provide up to two years of sui generis  protection. Bill C -30, "An 
Act to implement the Comprehensive Economic and Trade Agreement between Canada and the 
European Union and its  Member States and to provide for certain other measures ", which came into 
force on 21 September 2017, amended the Patent Act to introduce a Certificate of Supplementary 
Protection (CSP) system, to allow a period of added protection, capped at a maximum of  two years, 
for eligible patents covering eligible products (human and veterinary drugs). Eligible patents must 
relate to a "medicinal ingredient " or a "combination of medicinal ingredients ", and only one patent 
can be the subject of a CSP for a given medi cinal ingredient or combination. Where there are multiple 
patents, the Patent Act provides rules for determining which patents are eligible, and for resolving 
conflicting CSP applications. The Bill also replaced the previous summary proceedings under the 
Patented Medicines (Notice of Compliance) Regulations with full actions resulting in a final 
determination of patent infringement and validity and providing equal access to effective appeal 
rights.  
                                                
259 Canadian Intellectual Property Office (CIPO) online information. Viewed at: 
http://www.ic.gc.ca/eic/site/cipointernet -internetopic.nsf/eng/wr03892.html .  
260 Canadian Intellectual Property Office (CIPO) online information. Viewed at: 
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  3.293.   In 2016, the CIPO received applications for 34,745 patents,  a drop of 6%. It granted 
26,424  patents in that year, an increase of 19%. Industrial design registrations remained stable 
between 2015 and 2016.  
3.294.   The ratio of foreign to domestic patent applications increased markedly from 2006 to 2015. 
Canadians filed 4. 6 times more patent applications abroad than domestically in 2015, an increase 
from 3 times as many in 2006.  
3.295.   The authorities noted that the faster growth in filings abroad reflects the importance of 
Canada 's international trade. The top foreign destinatio ns for Canadian IP applications continue to 
be the United States, the European Union and China. During the 2015 -16 period, the latest for which 
complete information is available, the United States was the largest international filer in Canada for 
all categ ories of IPRs. The CIPO received more patent applications from the United States than from 
Canada. Germany was in third place as a top patent filer. Patent activity from the top 
five international applicants saw mild reductions or stagnation261 
3.296.   Over half of all Canadian IP applications abroad are filed in the United States. Canadian 
applications to China have increased significantly over the last decade as well. From 2006 to 2015, 
Canadian patent applications grew by 36%. Canadians are increasingly moving awa y from direct 
filings towards applications in multiple countries using the Patent Cooperation Treaty.  
3.3.7.4   Industrial designs  
3.297.   The Industrial Design Act (R.S.C., 1985, c. I -9) and the Industrial Designs Regulations 
(SOR/2018 -120) regulate the protection of indus trial designs. The Act was amended in 2014 to 
enable Canada to accede to The Hague Agreement and to modernize Canada 's industrial design 
regime. This was the first substantive update since 2001. Under the Act, an applicant may obtain 
protection for shape, configuration, pattern or ornament and any combination of those features that, 
in a finished article, appeal to and are judged solely by the eye. To be registrable, a design must be 
novel, i.e. it must not have been disclosed to the public, in Canada or el sewhere, more than one 
year before its priority date in Canada. This modernization of the Act provided further benefits for 
business, including: a) increased term of protection, moving from 10 to 15 years; b) less red tape, 
by simplifying and streamlining application and filing date requirements, and increasing flexibility 
for error corrections, and the appointment of agents and representatives for service; and 
c) enhanced e -services, by improving the e -filing interface for clients and providing enhanced 
functionalities.  
3.298.   One of the milestones during the review period was Canada 's accession to The Hague 
Agreement on 5 November 2018. The Hague Agreement provides a mechanism for acquiring, 
maintaining and managing design rights in member countries and intergove rnmental organizations 
through a single international application filed with WIPO 's International Bureau. The Hague 
Agreement allows applicants from member countries to register up to 100 industrial designs in 
multiple jurisdictions using a single application, language and currency.  
3.299.   The changes to the Industrial Design Act, which entered into force on 5 November 2018, 
include notable amendments such as a change to the industrial design term of protection, moving 
from a maximum of  10 years to a maxim um of 15 years. The amended Industrial Design Act clarifies 
that a certified copy of an entry in the Register of Industrial Designs is admissible evidence in any 
court. In addition, any obvious error made in the Register of Industrial Designs may be correc ted 
within six months of the entry, while previously, corrections were limited to clerical errors. The 
amended Industrial Design  Act likewise codifies the Supreme Court test for "originality " of a design 
and uses the term "novelty ", which is aligned with i nternational terminology, for the first time.262 
                                                
261 Canadian Intellectual Property Office (CIPO), Innovation, Science and Economic Development 
Canada (ISED) (2018), IP Canada Report 2017 . Viewed at: https://www.ic.gc.ca/eic/site/cipointernet -
internetopic.n sf/vwapj/IP_Canada_Report_2017_en.pdf/$file/IP_Canada_Report_2017_en.pdf . 
262 A design is novel if the same design, or a design not differing substantially from it, applied to a 
finished article that is the same as , or analogous to , the finished article in r espect of which the design is to be 
registered has not been already disclosed in an application or in the prior art. If the design has already been 
disclosed, the applicant can benefit from a 12 -month grace period to file an application for registration in  
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  Finally, the Act also provides that applications are now made available to the public at registration 
or 30 months from the earliest priority date, whichever comes first.  
3.300.   New Industrial Design Regulations als o came into effect on 5 November 2018. Changes 
include: a) simplified filing date and application requirements to align them with international 
standards; b) the removal of the requirement for foreign applicants to have a representative for 
services; c) th e removal of the requirement to provide signed authorization to appoint an agent; 
d) the introduction of provisions applicable only to international registrations from WIPO that 
designate Canada; and e) the introduction of transitional provisions to proces s applications filed 
before 5 November 2018. To operationalize changes to the Act and the Regulations, CIPO 's Industrial 
Design Office Practice Manual was re -written to include new practices, align a number of processes 
with Canada 's major trading partners , and generally improve service delivery for clients. As part of 
this initiative, the CIPO also launched updated e -services, including an improved e -filing interface 
with new functionalities, to enhance users ' interaction with the Office.  
3.301.   Stakeholder outr each and public engagement have been key elements of Canada 's process 
to accede to The Hague Agreement and modernize its industrial design regime. The CIPO consulted 
with Canadian IP agents and international stakeholders, including the WIPO, on legislative , 
regulatory and practice changes, on multiple occasions, to obtain feedback and inform the 
development of the new industrial design regime.  
3.3.7.5   Trademarks  
3.302.   The Trade -marks Act, 1985 (amended) and the Trade -marks Regulations, 1996 (amended) 
continue to be the m ain legal provisions with respect to trademarks in Canada. Trademark protection 
is 15 years, renewable for further 15 -year terms on payment of renewal fees. The concept of 
trademark in Canada includes certification marks, distinguishing guises, and propose d trademarks.  
3.303.   The Economic Action Plan, 2015, Act, No. 1 (S.C. 2015, c. 36), assented to on 
23 June 2015263, and the Combating Counterfeit Products Act, (S.C. 2014, c. 32), assented to on 
9 December 2014 and which partially came into force on 1 January 2015,  introduced important 
modifications to Canada 's trademark legislation and administrative system.264 These Acts introduced 
changes to the law necessary for the implementation of three international treaties that the 
Government seeks to ratify: the Madrid Prot ocol, the Singapore Treaty and the Nice Agreement. 
Division 3 of Part 3 of the Economic Action Plan, 2015, Act amends the Industrial Design Act, the 
Patent Act and the Trade -marks Act, to provide for extensions of time -limits in unforeseen 
circumstances, a nd to provide the authority to make regulations respecting the correction of obvious 
errors. It also amends the Patent Act and the Trade -marks Act to protect communications between 
patent or trademark agents and their clients in the same way as communicati ons that are subject 
to solicitor -client privilege.265  
3.304.   The Combating Counterfeit Products Act provides new enforcement tools against 
counterfeiting, such as new border enforcement measures and new civil causes of action and criminal 
offences. The Act also a mended the definition of what constitutes a criminal offence under the 
Copyright Act and made minor amendments to the Criminal Code and the Customs Act.266 These 
changes came into force on 1 January 2019.  
3.305.   Other changes to trademark legislation, set to come i nto force in June 2019, include reducing 
the term of registration and the renewal period from 15 to 10 years, and eliminating the requirement 
to supply a declaration of use of the trademark as a condition for registration. Currently, before 
registration of  a proposed use trademark is granted, the applicant must confirm that use in Canada 
has started, or that the trademark has been registered and is in use in the applicant 's country of 
origin, without use in Canada. With the new framework, an applicant will be able to obtain a 
registration as long as she/he is using or proposing to use a mark and is entitled to use the mark in 
Canada.  Changes set to come into force in June 2019 also include amendments to streamline and 
                                                
263 Act to Implement Certain Provisions of the Budget Tabled in Parliament on 21 April 2015, and other 
Measures. Viewed at: https://laws -lois.justice.gc.ca/PDF/2015_36.pdf . 
264 The text of this Act may be viewed at: https://laws -lois.justice.gc.ca/PDF/2014_32.pdf .  
265 Economic Action Plan Act, 2015. Viewed at: https://laws -lois.justice.gc.ca/PDF/2015_36.pdf . 
266 The Act was notified to the WTO in WTO documents IP/N/1/CAN/12, IP/N/1/CAN/C/5, 
IP/N/1/CAN/T/4, and IP/N/1/CAN/8, IP/N/1/CAN/C/4, 22 April 2015.  WT/TPR/S/389 • Canada  
 
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  modernize the trademark application and opposition process, expand the scope of what can be 
registered as a trademark and allow the Registrar of Trade -marks to correct errors that appear in 
the trademark register. The new legislation  provide s a broader definition of trademark, to include: 
a sign  or combination of signs that is proposed to be used by a person for the purpose of 
distinguishing or so as to distinguish their goods or services from those of others; and a certification 
mark.267 A sign will be defined as a word, a personal name, a design,  a letter, a numeral, a colour, 
a figurative element, a three -dimensional shape, a hologram, a moving image, a mode of packaging 
goods, a sound, a scent, a taste, a texture and the positioning of a sign.  
3.306.   As of June 2019, the definition of trademarks will include sounds, textures and smells. The 
application for the registration of a trademark consisting of a sound should: (a) state that the 
application is for the registration of a sound mark; (b) contain a description of the sound; and 
(c) contain an electr onic recording of the sound. Currently applications for sound marks may only 
be submitted by way of a paper application, and not through the CIPO 's online filing system.268 The 
CIPO began accepting the registration of sounds as trademarks as of end -March 201 2.  
3.307.   With respect to the Madrid Protocol, the Singapore Treaty, and the Nice Agreement, Canada 
has completed the legislative and regulatory work necessary to accede to these treaties, with Gazette 
Part II regulations published on 14 November 2018. By joining the Madrid Protocol, Canada will have 
the possibility of obtaining protection for trademarks in a number of countries through a single 
international application filed with WIPO 's International Bureau. Participation in the Singapore Treaty 
is expect ed to a make trademark registration more user -friendly and reduce compliance costs for 
Canadian trademark owners. Canadian membership in the Nice Agreement will facilitate the search 
and comparison of different trademarks.  Membership to these agreements wi ll modernize Canada's 
trademark regime.   
3.308.   Parallel imports of trademarked goods are allowed, and the rightsholder or their licensee 
may not restrict the importation of genuine trademarked goods into Canada through an assertion of 
trademark rights. Exceptions may apply where it can be shown that the mark used on the imported 
good is likely to cause consumer confusion, due to appreciable differences between the good 
distributed in Canada and the imported good. The situation with patents is similar to that of 
trademarks.  
3.309.   A trademark that has not been used for three years may be subject to summary cancellation. 
In this case, upon any person 's request and payment of the prescribed fee, the Trade -mark Registrar 
sends a notice requiring the owner of the tra demark to either establish that the mark was in use at 
some time during the three -year period immediately before the date of the notice or offer 
satisfactory reasons for its non -use. If the right owner 's explanation is not accepted, the registration 
will b e cancelled or restricted. The registration of the licensing of a trademark is not mandatory in 
Canada.  
3.310.   In 2016, the CIPO received applications for 54,665 trademarks, up by 4%. The CIPO 
registered 43,306 trademarks in 2016, up 9% from 2015.  
3.3.7.6   Geographical I ndications  
3.311.   Geographical indications (GIs) in Canada are protected under trademark legislation, more 
specifically, the Trade -marks Act, 1985 (amended) and the Trade -marks Regulations, 1996 
(amended). The Act prohibits the adoption and use, as a trademark or  otherwise, of protected GIs 
for wines and spirits, and certain agricultural products and food products which do not originate in 
the territory indicated by the GI or which do originate from that territory but were not produced or 
manufactured in accordanc e with the applicable laws of that territory. Once placed on the list of 
                                                
267 Certification mark was defined to mean: (a) a sign or combination of signs that is used for the 
purpose of distinguishing or so as to distinguish goods or services that are of a defined standard from those 
that are not of that defined standard, with respe ct to: the character or quality of the goods or services;  the 
working conditions under which the goods have been produced or the services performed; the class of persons 
by whom the goods have been produced or the services performed; or the area within whi ch the goods have 
been produced or the services performed; or b) a proposed certification mark. A certification mark may be 
adopted and registered only by a person who is not engaged in the manufacture, sale, leasing or hiring of 
goods or the performance o f services in association with which the certification mark is used.  
268 CIPO, Trade -mark consisting of a sound , 28 March 2012 . Viewed  at: 
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  protected GIs, there is no term of protection. The Trade -Marks Act provides for protection of GIs for 
goods other than wines and spirits and certain agricultural products and food pro ducts through 
certification marks (Articles 23 -25), which have the same scope of protection as trademarks, except 
that the owner may not engage in the manufacture, sale, leasing, etc. of the goods indicated by the 
GI. 
3.312.   The CETA contains provisions related t o GIs that go beyond protection granted under the 
TRIPS Agreement. Article 7 of the CETA established protection for a list of food GIs contained in an 
Annex and provided exceptions for certain GIs on that list in certain cases. A CETA Committee on 
Geograph ical Indications was created, which can recommend amendments to the list of GIs in 
Annex  20A of the CETA. As at February 2019, one GI not on the list had been granted protection, 
and a second one was under consideration.  
3.313.   Following the signing of the CETA, and regarding GI protection, the Trade -marks Act was 
last amended by the Canada –European Union Comprehensive Economic and Trade Agreement 
Implementation Act (An Act to implement the Comprehensive Economic and Trade Agreement 
between Canada and the European  Union and its Member States and provide for certain other 
measures, or Bill C -30), which provisionally entered into force on 21 September 2017. Bill C -30 
amended the Trade -Marks Act to protect certain agricultural products and food products as GIs and 
provided an avenue for other interested actors from the agriculture and food sectors to apply for GI 
protections. The Registrar of Trade -marks continues to be responsible for maintaining a list of 
protected GIs. Registration and inclusion of an indication in the list of protected GIs may be 
requested by any person, provided the indication meets the definition of a GI. Third parties can 
object to the application of the proposed indication on various grounds, which include that it: (a) is 
not a GI; (b) is not pr otected under the law of the country of origin; (c) is identical to a common 
name for the goods; or (d) is confusing with a registered trademark, a previously -used trademark, 
or an earlier and co -pending trademark application.   
3.314.   The CETA Implementation Act  introduced a new test for assessing confusion between a GI 
and a trademark. A trademark and a GI would be deemed confusing if use of a GI in the same area 
as a trademark would be likely to lead to the inference that the GI originates from the same source 
as the goods or services associated with the trademark. Under Bill C -30, commercial adoption or 
use of a word that is a protected GI, either as a trademark or otherwise, is prohibited if the associated 
goods are not produced under the rules of the territor y of the GI or if the goods do not originate 
from that territory. The present Customs Request for Assistance Regime is also available to owners 
of protected GIs, allowing them to request Canadian customs authorities to detain goods at the 
border that impro perly include a protected GI on the product, its label or packaging. In addition, it 
is unlawful to improperly export or import products covered by a GI. The Trade -Marks Act includes 
numerous exceptions, meant to protect existing Canadian trademark rights.  These exceptions allow: 
the use of a personal name, except where the name is used in a manner meant to mislead the 
public; the use of a GI in comparative advertising, except on labels and packaging; and the use of 
wine or spirit names that have been in co ntinuous use by a Canadian prior to April 1994. Finally, the 
Trade -Marks Act provides a mechanism for an interested party to apply to the Federal Court to 
remove a GI from the protected list. The grounds for this are similar to the grounds for which a GI 
may be objected to.  
3.3.7.7   Trade Secrets and Data Protection  
3.315.   In Canada, the federal Security of Information Act (S.19) criminalizes trade secret theft 
sponsored by, for the benefit of, or in association with foreign entities. The Criminal Code (S.380) 
criminalize s fraud generally and may, in some cases, render trade secret misappropriation a criminal 
offence. In addition, trade secrets are protected in most of Canada only by common law, and in 
Quebec, by the Civil Code. Protection of trade secrets, provided they a re not disclosed to anyone, is 
for an indefinite term.  
3.316.   Data protection provisions are included in the Food and Drug Regulations C.R.C., c.870, 
which provide innovative drugs with eight years of protection from copying. This period can be 
extended by six mo nths where data on the paediatric use of the drug is also provided.  
3.317.   Under the Pest Control Products Data Protection Regulations (SOR/2006 -124), ten years ' 
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  data supporting the registration of a new product containing a new active ingredient. This applies to 
new pharmaceutical products containing medicinal ingredients not previously approved in Canada. 
Other data supporting the registration are assigned a 12-year compensable status.  
3.3.7.8   Plant Variety Protection  
3.318.   Canada is a member of UPOV (1991). The Plant Breeders ' Rights Act, 1990 (PBR Act) 
(amended) and the Plant Breeders ' Rights Regulations, 1991 (amended) are the main instruments 
granting plant variety pro tection. The Act was last amended by Bill C -18 (27 February 2015). It 
allows for the protection of new varieties of plants, provided the varieties are new, distinct, uniform 
and stable. All plant species are eligible for protection. Algae, bacteria and fun gi are not protected. 
Applicants must be citizens of, residents of, or have a resident office in, Canada, a UPOV member 
State, or a WTO Member State.  
3.319.   Some restrictions to the holders ' rights apply. For instance, protected varieties may be used 
for breedin g and developing new plant varieties, and farmers may save and use the harvested seed 
of a protected variety for replanting on their own land without infringing on the holder 's rights 
(farmers ' privilege).  
3.320.   The term of protection under the PBR Act is up to 18 years, effective from the date of issue 
of the rights certificate. Bill C -18 extended the protection period from 18 to 25 years for trees, vines 
or any specified categories, and to 20 years for all other crops, unless the breeder terminates them 
earlier . Bill C -18 strengthened the rights of breeders, and improved accessibility to protection by: 
(a) extending plant breeders ' rights to include reproduction, import, export, conditioning (cleaning, 
treating), and stocking for the commercial purposes of propa gating, in addition to the current system 
that already allows for the sale of propagating material and the production of propagating material 
intended for sale; (b) allowing plant breeders to sell a variety in Canada for up to one year before 
applying for PBR protection, in order to test the market, advertise, or increase stock; and 
(c) providing automatic provisional protection for a new plant variety from the date of filing, which 
allows applicants to exercise their rights while applications are pending "grant of rights " (no legal 
action in respect of provisional protection can be initiated until after the rights are granted).  
3.3.7.9   Copyright  
3.321.   The Copyright Act, 1985 (amended) and the Copyright Regulations, 1997 (amended) 
comprise the main legislation with respe ct to copyright protection. The Copyright Act was last 
amended by Bill C -86 (13 December 2018), the Government of Canada 's Budget Implementation 
Act, 2018, No. 2.  
3.322.   The Copyright Modernization Act, which received Royal assent on 29 June 2012, and of which 
most of its provisions entered into force on 7 November 2012, amended the Canadian Copyright 
regime by introducing new rights and exceptions better adapted to the online environment, and by 
ensuring that the Copyright Act remains technologically neutral. The  changes also implemented the 
WIPO Internet treaties, which entered into force for Canada in August 2014. The Copyright 
Modernization Act allowed authors, performers and makers of sound recordings to enjoy explicit 
"first distribution rights " for copyright ed material in tangible form, subject to international exhaustion 
of rights; it explicitly gives authors,  performers and makers of sound recordings the exclusive right 
to control the release of their copyright material online; and provides them legal prote ction for 
technological protection measures and rights management information. The Act also clarifies the 
copyright exceptions framework for the benefit of educational institutions, including by allowing  
certain uses of Internet content and telecommunicati on technologies  in learning contexts, subject 
to safeguards .  
3.323.   The Copyright Modernization Act also established "safe-harbour " provisions for Internet 
Service Providers (ISPs) and search engines, and a civil liability provision for those who enable 
copyrigh t infringement online. The Act confirmed Canada 's "Notice and Notice " regime, which 
entered into force on 2 January 2015, and which does not require ISPs to take down allegedly 
infringing content, but to forward notices, sent by copyright owners, to users whose Internet address 
has been identified as being the source of possible infringement. If the ISP fails to perform its 
obligations under the regime, it may be liable for statutory damages of CAD 5,000 to CAD 10,000. 
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  some copyright owners (or their agents) of including settlement demands within their notices.  The 
practice could lead to abuses, given that consumers may be pressured into disclosing their persona l 
information and making settlement payments even in situations where they have not engaged in 
any acts that violate copyright laws. In December 2018, Bill C -86 amended the Copyright Act in 
order to address this concern, clarifying that a notice of claimed  infringement that contains an offer 
to settle, or a request or demand for payment or for personal information, or a reference to any 
such offer, request or demand (e.g., a hyperlink), in relation to the claimed infringement, does not 
comply with the regim e.   
3.324.   Under the Copyright Act, protection is granted for 50 years after the author 's death for works 
of authorship. The Government would extend this term to 70 years under the implementation of the 
CUSMA, as is the case in the United States and the European  Union. The implementation of this term 
of protection extension is subject to a transition period of 2.5 years from the coming into force of 
the CUSMA. Registration is not necessary for protection, but it prevents unknowing infringement of 
the right and is  useful if the copyright is litigated.  
3.325.   In June 2015, Bill C -59, "An Act to implement certain provisions of the budget tabled in 
Parliament on 21 April 2015 and other measures ", amended the Copyright Act to provide sound 
recordings and performances fixed in  sound recordings published before the copyright expires an 
additional 20 years of copyright protection, by extending the term of protection from 50 years to 
the earlier of the end of 70 years after the end of the calendar year in which the first such publ ication 
occurs, and the end of 100 years after the end of the calendar year in which the first fixation of the 
performance in a sound recording occurs. If the sound recording is not published before the copyright 
expires, the term of protection expires 50 years after the end of the calendar year in which the first 
fixation of the sound recording occurs. The CUSMA requires Canada to extend the term of protection 
for sound recordings from 70 to 75 years. There is no revival of copyright, and no right to 
remun eration in a sound recording, or performer 's performance fixed in a sound recording, in which 
the copyright or the right to remuneration had expired on the coming -into-force of the new 
provisions. Bill C -59 received Royal Assent on 23 June 2015; the amendm ents to the Copyright Act 
entered into force and were notified to the WTO.269 
3.326.   Copyright protection applies to original literary, dramatic, musical, and artistic works; 
performer 's performance; communication signals; and sound recordings. Protection is provided to 
countries with whom Canada has a treaty or other agreement. Exceptions to copyright infringement, 
as outlined in the Act, include: fair dealing; non -commercial user -generated content; private 
copying; time -shifting of broadcasts; educational in stitutions, libraries, archives and museums; 
interoperability of computer programs; ephemeral copies and recordings; and persons with 
perceptual disabilities.  
3.327.   Bill C -11, "An Act to amend the Copyright Act (Access to Copyrighted Works or other 
Subject -matte r for Persons with Perceptual Disabilities) ", received Royal Assent on 22 June 2016. It 
amended the sections of the Copyright Act that set out exceptions to copyright infringement for 
persons with perceptual disabilities, as well as those that set out exce ptions for persons with 
perceptual disabilities to the prohibitions against circumventing technological protection measures 
(TPMs or digital locks). The amendments contained in Bill C -11 were designed to enable Canada to 
accede to the Marrakesh Treaty. Can ada acceded to the Treaty on 30 June 2016. The treaty came 
into force internationally on 30 September 2016.270 
3.328.   In December 2018, Bill C -86 reformed Canada 's the Copyright Board, a quasi -judicial 
administrative tribunal which establishes royalties for uses of  copyrighted content, that is 
administered by a collective management organization. The reforms aimed at ensuring more 
predictability and clarity of decision -making processes; establishing streamlined time -lines; and 
increasing efficiency by allowing more parties to enter into direct agreements to ensure that the 
Board is adjudicating only more complex matters, or when parties are unable to reach agreement.  
3.329.   The quinquennial statutory parliamentary review of the Copyright Act was launched in 
March  2018 under  the leadership of the Standing Committee on Industry, Science and Technology 
with the support of the Standing Committee on Canadian Heritage.  
                                                
269 WTO document s IP/N/1/CAN/15, and IP/N/1/CAN/C/6, 7 June 2016.  
270 WTO documents IP/N/1/CAN/17, and IP/N/1/CAN/C/7, 10 November 2016.  WT/TPR/S/389 • Canada  
 
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  3.3.7.10   IP Enforcement  
3.330.   The Combating Counterfeit Products Act amended the Criminal Code by criminalizing 
offences related to the infringement of copyright and offences related to goods, labels, packaging or 
services covered by the Trade -marks Act. It also provides for new border enforcement measures, 
allowing customs officers to detain goods that they suspect infringe  copyright or trademark rights, 
and permitting customs officers to share information relating to the detained goods with rights 
owners who have filed a request for assistance, in order to give the rights owners an opportunity to 
seek a remedy in court. The  importation and exportation of copies and goods by individuals for their 
personal use is exempt from the application of such border measures.  
3.331.   The provisions of the Combating Counterfeit Products Act were implemented by the Canada 
Border Services Agency (C BSA), which launched the Combating Counterfeit Products (Intellectual 
Property Rights) programme to this effect. Under this programme, IP rights holders/owners may file 
a request asking for the CBSA to temporarily detain suspected counterfeit and/or pirate d goods 
encountered at the border while rights holders/owners seek legal redress. Canadian trademark or 
GI rights holders/owners registered with the CIPO are eligible to file a Request for Assistance (RFA) 
application with the CBSA. Similarly, rights holde rs/owners of a valid Canadian copyright may file 
an RFA application with the CBSA.  
3.332.   The information contained in RFAs may be used by the CBSA to identify and detain 
commercial shipments suspected of containing counterfeit trademark goods or pirated copyrig ht 
goods. More specifically, if suspect counterfeit and/or pirated goods are discovered during a 
commercial examination, the CBSA can use the information contained in the RFA application to 
contact the appropriate rights holders/owners and inform them how to pursue a civil court action.271 
Since its implementation, over 200 RFAs have been filed, covering approximately 3,000 registered 
trademarks and 80 registered copyrighted works. Additionally, the CBSA has detained over 
70 shipments, 33 cases of which are c urrently under litigation as pursued by rights holders.  
3.333.   The Royal Canadian Mounted Police (RCMP) is responsible for leading any criminal 
investigations related to commercial -scale counterfeiting and piracy. Investigations regarding 
criminal offences under the Copyright Act and trademark offences under the Criminal Code are 
carried out under the RCMP 's Intellectual Property Rights (IPR) Crime sub -programme, a part of the 
Federal Enforcement Program. The sub -programme 's main objective is to protect the commun ity 
from infringed products posing health and safety risks. To this end, the RCMP works closely with 
Health Canada, the CBSA and the private sector, and from this collaboration has resulted a strategy 
to combat IPR crime, mainly focusing on public awarenes s and integrated enforcement. The main 
statutes under this sub -programme are the Copyright Act and the Criminal Code.272 
3.334.   The RCMP and the CBSA have a shared responsibility for securing the border. Their efforts 
are complemented by the Canada/ U.S. Integrated Border Enforcement Teams (IBETs), located along 
the length of the Canada/United States border. The RCMP 's Customs and Excise Program is geared 
towards enforcing laws within Canada and along the Canada/United States border with respect to: 
the international  movement of goods; the illicit manufacture, distribution or possession of 
contraband products; the illicit traffic of critical high technology and strategic goods, such as 
chemical, biological, radiological and nuclear components, and their delivery syste ms; and 
regulations that impose permit controls on the international movement of commodities.  
 
                                                
271 CBSA online information. Viewed at: https://www.cbsa -asfc.gc.ca/security -securite/ipr -dpi/menu -
eng.html . 
272 RCMP online information. Viewed at: http://www.rcmp .gc.ca/fep -pelf/#4 . WT/TPR/S/389 • Canada  
 
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  4  TRADE POLICIES BY SE CTOR   
4.1  Agriculture, Forestry and Fisheries  
4.1.1   Agriculture  
4.1.1.1   Introduction  
4.1.  The results of the 2016 Census of Agriculture conducted by Statistics Canada indicated a 
continuing trend towards fewer farms and fewer (and older) agricultural operators, while the farms 
are increasing in size. Although the total farm area amounted to 158.7 million acres in 2016 , nearly 
1% less than in 2011, the area dedicated to cropland expanded by nearly 7% over the same period 
(to 93.4 million acres), and the average farm size (820 acres) was 5.3% larger than five years 
earlier.1 Canola (rapeseed) continues to account for the  largest share (i.e. more than 20%) of all 
Canadian cropland, followed by spring wheat, and alfalfa and alfalfa mixtures. Over the years, 
Canadian farmers have made significant adjustments in the crops grown, reflecting changes in 
market demand and improve d crop varieties. In terms of planted acreage, dedicated areas declined 
by nearly 40% for spring wheat (excluding durum) between 1981 and 2016, and by just over 50% 
for barley. By contrast, the total acreage planted with durum wheat rose by 44% during the same 
period, and the expansion was even more spectacular for canola (up nearly 500%), soybeans 
(700%), and lentils (up 4,350%). Canada was the world 's largest producer of lentils in 2017, with 
3.73 million metric tons or 48% of global production.  
4.2.  The tren d towards larger farming units is also prevalent in livestock. In the beef sector, which 
is the dominant livestock activity, the average herd rose from 99 in 2011 to 110 in 2016, despite a 
decline of 2.4% in the overall number of beef cattle (to nearly 6.9  million heads). The average beef 
herd also increased in cow -calf operations (from 74 to 84) and in feedlot operations (from 185 to 
212 heads). A similar decline in the overall number of dairy cows, but a much sharper fall in the 
number of farms reporting dairy cows (down 13.4%), also increased the average number of dairy 
cows per farm (from 65 to 73) between 2011 and 2016. Meanwhile, the overall production of milk 
is also rising, due to a higher output per cow, from improved nutrition, genetics, and produc tion 
practices. Better market conditions for pork and poultry between 2011 and 2016 spurred an increase 
in the number of farms raising pigs, hens and chickens, while the corresponding numbers of animals 
per farm remained roughly unchanged.  
4.3.  Canadian farms are primarily registered as sole proprietorships or partnerships (75% of all 
farms), and the incorporated farming operations (25% of all farms) are dominated by family 
corporations (almost 90% of all incorporated farms). The 2016 Census counted 193,492 far ms and 
271,935 farm operators, i.e. 6% fewer farms, and a decline of 8% in the number of farm operators 
in five years.2 Mirroring the ageing of the general population, around 55% of the Canadian farm 
operators are now 55 years or older. However, for the fi rst time since 1991, the 2016 Census of 
Agriculture also reported an increase in the number of young farmers (under 35 years of age).3  
4.4.  Gross farm receipts amounted to CAD 69.4 billion in 2015, or nearly CAD 360,000 per farm on 
average. The value of farm m achinery and equipment averaged close to CAD 280,000 per farm in 
2016, reflecting increased investments in productivity -enhancing technologies, including 
automation. Although farmers adapt relatively quickly to changing market conditions, the 
expense -to-receipt ratios calculated by Statistics Canada suggest some variations in the profitability 
of the main types of farming operations in Canada (Chart 4.1). On one end of the spectrum, dairy 
and oilseed and grain farms had the most favourable ratios in 2015, d espite a deterioration from 
2010. On the other end of the spectrum, sheep and goat, beef, and hog and pig farms had the least 
favourable ratios, though improving from 2010. It should also be noted that many farmers 
supplement their agricultural incomes wit h off-farm work. Among the 44% of the farm operators 
                                                
1 The total farm area includes: cropland; summer fallow; pastures, woodlands and wetlands; and other 
types of agricultural land (e.g. idle land and built land). Although flooding affected negatively the amount of 
cropland reported in th e 2011 Census, decreasing use of summer fallow and the conversion of marginal land 
into productive cropland also contributed to the rise in total cropland. The expansion was mainly driven by 
larger field crop areas in the Prairie provinces.  
2 The term far m operator denotes an individual making management decisions for an agricultural 
enterprise.  
3 The number of operators under the age of 35 increased by 3% from 2011 to 2016.  WT/TPR/S/389 • Canada  
 
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  indicating off -farm income in the 2016 Census, almost one third averaged 30 hours or more of 
off-farm work per week.  
Chart 4.1 Average operating expense -to-receipt ratio by farm type, 2010 and 2015  
 
 
Note:  Gross farm receipts include programme payments and custom work receipts. Operating expenses do 
not include expenditures, depreciation or allowances for capital costs related to purchases of land, 
farm buildings or equipment.  
Source:  Statistics Canada, The Daily, 10 May 2017.  
4.5.  Even though the contribution of primary agriculture to Canada 's GDP is modest (approximately 
1.1% in 2016), the share of agriculture in Canada 's GDP rise s to 6.7% when food and beverage 
processing, wholesale and retail sale of food, and inputs and services provided to the sector are 
included. Farmgate cash receipts in the crop sector exceeded CAD 34.5 billion in 2017, approximately 
CAD 9.0 billion more tha n receipts for livestock (Table 4.1). Canada 's highly export -oriented crop 
sector is characterized by low levels of protection, measured in terms of Single Commodity Transfers 
(SCTs) (Table A4.1). The beef and pork industries are also export -oriented. Thus , despite 
considerable imports of processed food, Canada is an overall net exporter of agricultural 
commodities, with a surplus of approximately CAD 12 billion annually in recent years (Chart 4.2). 
By contrast, in sectors where domestic production is subje ct to supply management, Canada is a 
net importer (of dairy products, poultry, and eggs).  
Table 4.1 Farmgate receipts for selected agricultural commodities, 20 09-17 
(CAD million)  
  2009  2010  2011  2012  2013  2014  2015  2016  2017  
Total farm cash 
receipts  44,560  44,455  49,890  54,228  55,628  58,285  60,022  60,615  62,012  
Crops, of which:  23,214  22,413  26,072  29,925  31,396  30,529  32,299  34,300  34,496  
Canolaa,b 5,098  5,548  7,669  8,292  7,359  7,365  8,049  9,269  9,950  
  Wheat (excluding 
durum wheat)a,b  3,271  2,510  3,577  4,276  5,263  4,833  5,022  4,477  5,068  
  Soybeansb,c 1,345  1,539  1,562  2,395  2,560  2,386  2,465  2,984  2,812  
  Maizeb,c 1,330  1,563  2,086  2,461  2,341  1,971  1,858  2,062  2,056  
  Barleya,b 746 478 589 790 1,021  778 818 702 711 
  Duruma,b 771 421 558 915 1,254  1,353  1,332  1,204  1,116  
  Lentilsa,b 853 724 665 549 848 1,071  2,254  2,006  1,089  
  Dry peasa,b 651 582 842 865 938 832 870 1,461  1,035  
Livestock, of which:  18,055  18,905  20,338  20,898  21,546  25,636  25,588  23,873  25,080  
  Dairying  5,450  5,524  5,815  5,896  5,892  6,074  6,027  6,174  6,565  
  Cattle and calves  5,875  6,154  6,269  6,565  6,820  9,803  10,502  8,763  9,062  
  Hogs 2,889  3,381  3,940  3,852  4,069  5,093  4,227  4,098  4,519  
WT/TPR/S/389 • Canada  
 
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    2009  2010  2011  2012  2013  2014  2015  2016  2017  
  Poultry (Hens and 
chickens, turkey)  2,382  2,288  2,619  2,750  2,853  2,775  2,794  2,871  2,922  
Eggs for consumption  715 724 806 877 928 919 983 1,052  1,096  
Total direct payments   3,290   3,138   3,480   3,405   2,686   2,121   2,135   2,442   2,436  
a Crop year runs from August to July, i.e. 2009 is 2009/2010 ending July.  
b WTO Secretariat estimates, based on data (quantity and average price) from Agriculture and Agri -Food Canada.  
c Crop year runs from September to August, i.e. 2009 is 2009/2010 ending August.  
Source:  Statistics Canada, Table 32 -10-0045-01. 
Chart 4.2 Canada 's exports and imports of agricultural products, 2005 -17 
 
Note:  WTO agricultural definition. Exports excluding re -exports.  
Source:  WTO Secretariat calculations, based on Government of Canada, Statistics Canada, and Canada 
International Merchandise Trade Database data; and UNSD Comtrade.  
4.1.1.2   Border measures  
4.6.  Canada 's applied MFN tariffs on agricultural products (WTO definition) averaged 21.8% i n 
2019, down from 22.5% in 2014. The reduction reflects, in part, the unilateral elimination by Canada 
of import duties on certain ingredients used in the food processing industry on 16 January 2017.4 In 
addition, the estimated tariff rates may vary year t o year, due to changes in import prices for goods 
that are subject to non -ad valorem  tariffs. This applies even when there are no changes in the 
specific or compound rates per se .5 As before, Canada 's dairy sector is characterized by particularly 
high MFN tariffs (238.7% on average, with almost all lines carrying non -ad valorem  rates), but 
above -average tariffs also prevail for animals and animal products (47.2%) and cereals and 
preparations (24%).  
4.7.  Canada maintains 22 WTO tariff rate quotas (TRQs) to regula te market access (for 159 tariff 
line items), with additional access being granted through some of Canada 's preferential 
arrangements. The majority of the TRQs concern products subject to supply management in Canada, 
i.e. milk and dairy products, poultry, and eggs (Table 4.2). Within the WTO TRQ levels, imports are 
either subject to zero duty (42 tariff lines) or ad valorem /non-ad valorem  rates that may reach 
                                                
4 Government of Canada online information. Viewed at: http://www.gazette.gc.ca/rp -pr/p2/2016/2016 -
12-28/html/sor -dors313 -eng.html .  
5 Nomenclature changes that alter the number of high -tariff and low -tariff line items may also affect 
tariff aver ages.  
WT/TPR/S/389 • Canada  
 
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  8.5%. TRQ fill rates fluctuate depending on the market situation for the products in question and 
may exceed 100%.6 
Table 4.2 WTO Tariff rate quota (TRQ) level and fill rates, 2013 and 2017  
a Administered on a marketing -year basis (years 2012/13 and 2016/17).  
b Administered on a calendar -year basis (years 2013 and 2017).  
c No data exists regarding fluid milk, as shoppers are free to carry milk for personal consumption upon their 
return to Ca nada (GIP No.1).  
d Administered on a quota -year basis (years 2012/13 and 2016/17).  
Note:  The count of in -quota imports for butter, cream and dry whey is based on permits issued by Global Affairs 
Canada against Canada 's tariff quota commitments. The count o f in-quota imports for wheat, barley and 
their products is based on statistics provided by the Canada Border Services Agency.  
Source:  WTO and information provided by the authorities.  
                                                
6 In the case of poultry and eggs, fill rates may fluctuate due to the calculation of the TRQ volume, 
based on the minimum global access requirements Canada agreed to under the Canada -United States Free 
Trade Agreement and the NAFTA, and exchanged n otes between Canada and the United States for broiler 
hatching eggs and chicks. For wheat products and barley products, the fill rates may exceed 100% since these 
TRQs are administered through a general import monitoring programme, and there may be a delay  between 
receiving notification that the TRQ has been filled and the closing of the TRQ to further imports.  Products  WTO TRQ level  Reservations  2013 fill  
rate (%)  2017 fill  
rate (%)  
Creama 394 tonnes  Limited to sterilized cream, 
minimum 24% butterfat, in cans 
of a volume not exceeding 
200ml  99 99 
Dry wheya 3,198 tonnes   41 1 
Buttera 3,274 tonnes  61% reserved for New Zealand  99 100 
Wheata 226,883 tonnes   36 46 
Barleya 399,000 tonnes   5 16 
Wheat productsa 123,557 tonnes   128 158 
Barley productsa 19,131 tonnes   137 219 
Broiler hatched eggs and 
chicksb 7,949,000 dozen 
egg equivalent  Canada allocates access between 
tariff items 0105.11.21 and 
0407.11.11, where one chick 
equals 1.27 eggs  147 168 
Chicken: live, meat and 
productsb 39,843.7 tonnes 
(eviscerated)   190 213 
Turkey: live, meat and 
productsb 5,588 tonnes 
(eviscerated)   96 97 
Beef and vealb 76,409 tonnes  45.8% reserved for Australia and 
38.7% for New Zealand; the rest 
applies to imports from countries 
with which Canada does not 
have a bilateral trade agreement 
that cover these products  56 63 
Fluid milkb, c 64,500 tonnes  This quantity represents the 
estimated annual cross -border 
purchases imported by Canadian 
consumers  100 100 
Concentrated and 
condensed milk/creamb 11.7 tonnes  100% reserved for Australia  92 0 
Yoghurtb 332 tonnes  Access reserved for yoghurt in 
retail-sized containers only  83 50 
Powdered buttermilkb 908 tonnes  100% reserved for New Zealand  11 24 
Other products  of milk 
constituentsb 4,345 tonnes   73 62 
Cheeseb 20,411.866  69.9% reserved for the 
European Union  100 99 
Other dairyb 70 tonnes   100 100 
Ice creamb 484 tonnes  Access reserved for retail -sized 
containers only  90 83 
Eggs and egg products  21,370,000 
dozen egg 
equivalent  Canada reserves its right to 
allocate access for egg and egg 
products between shell (except 
hatching) eggs, frozen, liquid 
and dried eggs  87 97 
Margarineb 7,558 tonnes   33 39 
Milk protein substancesd 10,000 tonnes   56 27 WT/TPR/S/389 • Canada  
 
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  4.8.  Since the last Review, the EU -Canada Comprehensive Economic and Trade Ag reement (CETA) 
was applied provisionally since 21 September 2017. Under the CETA, Canada agreed to transfer 
800 tonnes of cheese within its existing WTO TRQ from the non -EU reserve to the EU reserve. It 
also established additional duty -free TRQ access for 16,000 tonnes of cheeses and 1,700 tonnes of 
industrial cheeses. The access quantity for the 16,000 tonnes and 1,700 tonnes of cheeses under 
the CETA is being phased in over a five -year period.7  
4.9.  The Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP ) came 
into effect on 30 December 2018. Under the CPTPP, Canada established 20 new TRQs (16 for dairy 
products, and 4 for poultry and eggs), which will be phased in over a period of 11 to 19 years, 
depending on the TRQ. The majority of new access will have been phased in by quota year 6.  
4.10.   Imports subject to TRQs require an import licence, issued by Global Affairs Canada for each 
shipment. Except for licences administered according to first -come first -served principles, importers 
must sec ure a quota allocation before proceeding to apply for a licence. Allocation methods vary, 
and include import history, equal share, market share, pro rata demand, or a combination of these. 
Global Affairs Canada informs stakeholders of the precise administr ation principles and methods for 
each TRQ, through notices posted on its website. Provisions regarding transfers of allocations, the 
return of unused quotas, and penalties for under -utilization are in place to maximize TRQ fill rates.  
4.11.   Under the Export and  Import Permits Act, the Minister for International Trade Diversification 
may, at his/her discretion, authorize that supplemental access be granted for importation of TRQ 
goods. Such imports are additional to the import access quantity defined in Canada 's WTO TRQ 
commitments. The Minister 's policies in this regard are set out in notices to importers for 
supplemental imports and are available on the Global Affairs Canada website.8 For example, this has 
been done in instances where s/he judges that imports ar e required to meet market needs. Since 
1995, the Canadian Dairy Commission (CDC) has been authorized to import butter for onward sale 
to Canada 's manufacturers. As a butter shortage developed during 2016 -17, the regular WTO TRQ 
of 3,274 tonnes was quickly filled. The CDC therefore requested, and received, supplemental import 
authorizations for butter from Global Affairs Canada.  
4.12.   Supplemental import access may be granted for any item subject to supply management, in 
order to support the export competitivenes s of Canadian food processors. The Import for Re -export 
Program (IREP) allows food manufacturers resident in Canada to import at the applicable 
within -access rate of duty for further processing and re -exportation.  
4.1.1.3   Domestic programmes  
4.13.   Canada 's federal and provincial/territorial governments share responsibility for agricultural 
policy and operate various cost -shared programmes. Since 2003, the main programmes and services 
have been provided through joint five -year policy frameworks. The Growing  Forward 2 (GF2) 
Framework Agreement, which included programmes to assist farmers in coping with market volatility 
and disaster situations (business risk management - BRM) as well as non -BRM programmes focusing 
on innovation and research, food safety, and market promotion, expired on 31 March 2018. The 
policy framework for the current five -year period – the Canadian Agricultural Partnership (the 
Partnership) – foresees expenditures totalling CAD 1 billion on federal programmes and activities, 
and a further CAD 2 billion to be dispersed through cost -shared (federal and provincial/territorial) 
programmes and activities. In addition to the CAD 3 billion in expenditures under the Partnership, 
Agriculture and Agri -Food Canada (AAFC) continues to offer a robust su ite of BRM programmes.  
4.14.   Building on Growing Forward2 (GF -2), the federally -administered programmes under the 
ongoing Partnership comprise six programmes under three broad headings that include an array of 
policy support, services, and grants and contributi on programming: (i) Growing Trade and Expanding 
Markets (up to CAD 297 million) works to expand agricultural trade through trade negotiations, the 
resolution of trade barriers, and the delivery of the AgriMarketing Program, which provides matching 
                                                
7 The CETA "fine" cheese TRQ amounts to 8,000 tonnes in 2019, 10,557 tonnes in 2020, and 
13,333  tonnes in 2021, until it becomes 16,000 tonnes in 2 022 and subsequent years. Likewise, the CETA TRQ 
for industrial cheeses rises from 850 tonnes in 2019 and 1,133 tonnes in 2020, to 1,417 tonnes in 2021, and 
1,700 tonnes in 2022 and onward.  
8 Global Affairs Canada online information. Viewed at: http://www.international.gc.ca/controls -
controles/notices_avis/exp/list_liste/index.aspx?lang=eng .  WT/TPR/S/389 • Canada  
 
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  contribu tions to support industry -led market development activities to expand and diversify exports 
of agriculture and agri -food products, and the AgriCompetitiveness Program, which aims to assist 
industry -led efforts to provide producers with information needed t o build capacity and support 
development; (ii) Innovative and Sustainable Growth (up to CAD 466 million) helps create a more 
innovative agricultural sector by supporting a range of activities, including the grants and 
contribution programme AgriInnovate, w hich provides repayable contributions on projects that 
accelerate the commercialization, adoption, and/or demonstration of innovative products, 
technologies, processes or services that increase sector competitiveness and sustainability, and 
AgriScience, wh ich supports pre -commercialization and cutting -edge research; and (iii) Supporting 
Diversity and a Dynamic Evolving Sector (up to CAD 166.5 million), which aims to help the sector 
adapt to evolving demands, including via the  AgriDiversity Program, which pr ovides grants and 
contributions to help build skills and leadership for under -represented groups, and through the 
AgriAssurance Program, which provides contributions that enable industry to  make meaningful and 
verifiable claims about the health and safety of Canadian agricultural products.   
4.15.   Partnership also expects CAD 2 billion to be spent on programmes and activities that are 
cost-shared between federal (60%) and provincial/territorial governments (40%) that will be 
delivered by provinces/territories to ensure that programmes are tailored to meet regional needs. 
The Partnership 's cost -shared programming with provinces/territories focuses on the following 
six priority areas:  
• science, research, and innovation – helping industry adopt practices to improve 
resiliency and productivity through research and innovation in key areas;  
• markets and trade – opening new markets, and helping farmers and food processors 
improve their competitiveness, underpinned by a strong and efficient regulatory system, 
through skills development and improved export capacity;  
• environmental sustainability and climate change – building sector capacity to mitigate 
agricultural greenhouse gas (GHG) emissions, protect the environment, and adapt to 
climate change by enhancing sustainable grow th, while increasing production;  
• value -added agriculture and agri -food processing – supporting the continued growth of 
the value -added agriculture and agri -food processing sector;  
• public trust – building a firm foundation for public trust in the sector, th rough improved 
assurance systems in food safety and plant and animal health, stronger traceability, 
and effective regulations; and  
• risk management – enabling proactive and effective risk management, mitigation and 
adaptation, to facilitate a resilient sect or by working to ensure programmes are 
comprehensive, responsive and accessible.  
 
4.16.   Business Risk Management (BRM) programmes, authorized according to the Farm Income 
Protection Act, 1991, have been carried forward from the GF2 framework into the Canadian 
Agricultural Partnership, with some modifications. The programmes continue to be co -funded by 
federal and provincial governments on a 60:40 basis but, as their utilization is driven by farmer 
demand, actual expenditures vary from one year to the next. The pr ogrammes assist farmers in 
handling significant risks that go beyond their normal capacity to manage and that may threaten 
the viability of their farms.  
4.17.   AgriInvest is a programme that allows farmers to deposit proceeds from allowable net sales 
(ANS) in ac counts at participating financial institutions. The funds may be used to reduce risks, cover 
moderate declines in producer margins, or for investments in farm -related improvements. The 
first percent of a year 's ANS is matched by governments. The government  contribution is capped at 
CAD 10,000 per year as the maximum annual ANS deposit is set at CAD 1 million (down from 
CAD 1.5 million under GF2). Canadian farmers currently hold about CAD 2.2 billion in such accounts.  
4.18.   AgriStability  is a whole -farm programme  offering financial support in the event of large margin 
declines. The programme has two components: a Program Margin, computed as allowable income 
minus allowable expenses in any given year (with adjustments for changes in receivables, payables 
and invent ory); and a Reference Margin, calculated as the Olympic average of the Program Margins 
for the past five years. Benefits are triggered when Program Margins fall below 70% of the Reference 
Margin. A cap on the Reference Margin limit was introduced in 2018. The cap was designed to ensure 
producers from all sectors have improved access to support under the programme, regardless of 
their cost structure. The cap of the Reference Margin limit guarantees all producers at least 70% of 
their Reference Margin. Suppor t is limited to CAD 3 million per participant, and a minimum payment WT/TPR/S/389 • Canada  
 
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  of CAD 250. A late participation mechanism that provincial/territorial governments can trigger was 
added, to allow producers to enter the programme late in situations where there is a sig nificant 
income decline and a gap in participation. However, late entry is accompanied by a 20% reduction 
in benefits, to encourage regular enrolment. Disbursements totalled approximately CAD 258 million 
in 2015 and CAD 465 million in 2016.  
4.19.   AgriInsurance makes available subsidized insurance, providing coverage for production losses 
due to natural disasters (weather -related, pests or disease). The programme covers traditional crops 
such as wheat, maize, oats, barley and horticultural crops, and may be deliv ered on a yield or 
non-yield basis. AgriInsurance is developed and delivered at the provincial level, with contributions 
from the Federal Government towards the total premium and administrative costs. The Federal 
Government also offers a reinsurance arrang ement in which five provinces (Alberta, Saskatchewan, 
Manitoba, New Brunswick, and Nova Scotia) are taking part at present. For the 2016/17 and 2017/18 
crop years, the total government contributions amounted to CAD 1.1 billion and CAD 1 billion, 
respective ly.  
4.20.   AgriRecovery is a programme for abnormal events resulting in extraordinary costs that require 
assistance beyond the scope of the core BRM programmes. It provides a disaster relief framework 
to aid the return to normal conditions. Under this framework,  the federal and provincial governments 
join in efforts to complement the core BRM programmes, for example to cover extraordinary costs 
related to disease, pest infestations, extreme weather, or contamination of the natural environment. 
One joint effort – the Canadian -British Columbia Wildfires Recovery Initiative – was activated under 
the AgriRecovery framework in 2018.  
4.21.   AgriRisk is a programme where federal, provincial/territorial governments continue to support 
the development of new risk management tool s.9  
4.22.   The Federal Government also funds several loan guarantee programmes, including the 
Canadian Agricultural Loans Act (CALA) Program and the Advance Payments Program (APP). The 
CALA Program established under the Canadian Agricultural Loan Act, 1985, prov ides loan guarantees 
to enable farmers and cooperatives to seize market opportunities and to support the renewal of the 
agricultural sector. The Federal Government guarantees lenders (e.g. banks, credit unions or caisses 
populaires)  the repayment of 95% of  any net losses incurred on eligible loans. The maximum 
aggregate loan limit is CAD 500,000 per farm operation. The maximum aggregate loan limit for 
agricultural cooperatives is CAD 3 million, approved by the Minister. Loans totalling CAD 91.6 million 
were issued by financial institutions under the CALA Program in FY 2017/18.  
4.23.   Under the Advance Payments Program, established under the Agricultural Marketing Programs 
Act, 1997, the Federal Government guarantees the repayment of cash advances made to crop and 
livestock producers based on the value of their agricultural product. The Program is delivered 
through producer organizations authorized by Agriculture and Agri -Food Canada. Producers have a 
specified period of time to repay these cash advances (typically between 18 and 24 months) as they 
sell the agricultural product. Based on the value of the eligible products (including livestock), the 
Government may guarantee cash advances of up to CAD 400,000 per producer under the Program, 
paying the interest on the f irst CAD 100,000 issued to each producer. In all, CAD 2.2 billion in 
advances were issued to 20,847 producers across Canada for the 2017 -18 programme year.  
4.24.   Following Canada 's ratification of the Paris Agreement on 5 October 2016, a comprehensive 
plan, kno wn as the Pan -Canadian Framework on Clean Growth and Climate Change (PCF),  was 
adopted to reduce emissions across all sectors in Canada, including agriculture. The PCF identifies 
three agriculture -related actions: increasing stored carbon in agricultural s oils, to partially offset 
emissions from the sector; generating bioenergy and bioproducts to displace emissions in other 
economic sectors; and advancing innovation in GHG -efficient management practices to reduce 
agricultural emissions and emission intensit y. Over the period 2018 -23, the Canadian agriculture 
and agri -food sector 's contribution to the PCF will be primarily delivered through the Canadian 
Agricultural Partnership (the Partnership). Climate actions are supported by three types of 
programmes unde r the Partnership: federal -only programmes that help support the resiliency and 
sustainability of the sector through science, research and adoption of innovative practices and 
                                                
9 Agriculture and Agri -Food Canada online informatio n. Viewed at: http://www.agr.gc.ca/ eng/abouzt -
us/key -departmental -initiatives/canadain -agricultural -partnership/canadian -agricultural -partnership -business -
risk-management -programs -effective.april -2018/?id=1500475317828 .  WT/TPR/S/389 • Canada  
 
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  technologies; federal -provincial/territorial (FPT) cost -shared on -farm programme s delivered by 
provinces and territories (PTs) that build producer awareness of environmental risks and accelerate 
the adoption of technologies and practices to reduce these risks; and BRM programmes that are 
demand -driven and help farmers manage significa nt risks threatening the viability of their 
operations. Federal programmes and initiatives outside of the Partnership that also contribute to 
progress on agriculture -related actions identified under the PCF include the Agricultural Clean 
Technology Program ; the Living Laboratories Initiative; and the Agricultural Greenhouse Gases 
Program.  
4.1.1.4   Export measures  
4.25.   Canada 's Uruguay Round export subsidy commitments originally covered 11 product 
categories. However, in compliance with the Nairobi Ministerial Decision o n Export Competition10, 
Canada formally eliminated export subsidies for wheat, coarse grains, oilseeds, vegetable oils, 
oilcakes, and vegetables as of 19 December 2015. Moreover, lower volume limits for products on 
which export subsidies may continue to be applied (butter, skim milk powder, cheese, and other 
dairy products) came into effect on 1 January 2016. The remaining export subsidies are to be 
eliminated by the end of 2020 as per footnote 4 of the Ministerial Decision.  
4.26.   In practice, Canada did not prov ide subsidies to exports of grains, oilseeds, vegetable oils, 
oilcakes, and vegetables for many years prior to 2015. Canada 's annual export subsidy outlays were 
relatively stable until 2015/16 but declined since then (Table 4.3). Except for skim milk powde r, 
where the WTO value commitment has continued to serve as a constraint, Canada is well within its 
export subsidy commitments.  
Table 4.3 Export subsidies: commitment levels and annual outlays, 2013 -18 
(CAD '000) 
Products  Annual value  
commitmenta Subsidized exportsa  
2013/14  2014/15  2015/16  2016/17  2017/18  
Butter  11,025  0 0 0 0 182 
Skim milk powder  31,149  31,036  30,920  31,145  31,024  0 
Cheese  16,228  15,430  10,442  8,842  7,122  9,754  
Other milk products  22,505  18,063  19,653  21,982  6,876  36 
Incorporated 
products  20,276  18,081  20,175  19,155  10,639  0 
Total  101,183  82,610  81,190  81,124  55,661  9,972  
a The Nairobi Ministerial Decision reduced the quantities on which export subsidies may be applied but 
did not alter the exported value commitments. In volume terms, Canada 's annual marketing -year 
limits now amount to 905 tonnes of butter and butter oil; 18,147 tonnes of skimmed milk powder; 
6,041 tonnes of cheese; and 14,189 tonnes of other milk products.  
Source: WTO documents G/AG/N/CAN/108/Corr.1, 11 April 2016; G/AG/N/CAN/109, 29 April 2016; 
G/AG/N/CAN/118, 22 March 2018; and G/AG/N/CAN/124 and 125, 8 February 2019; and the 
Canadian Dairy Commission, Annual Report 2016 -17. 
4.27.   In 2008, Canada untied its food as sistance completely. Thus, instead of shipping Canadian 
food products overseas, Canada makes financial contributions to international organizations that 
source their food locally and regionally. As a party to the Food Assistance Convention, which entered 
into force on 1 January 2013, Canada is committed to provide at least CAD 250 million in food 
assistance per year. According to Canadian estimates, Canada 's contribution to food assistance 
worldwide amounted to CAD 374 million in 2013, CAD 374.8 million in 2014, CAD 331 million in 
2015, CAD  351 million in 2016, and CAD 361.8 million in 2017.11 
                                                
10 WTO document WT/MIN/(15)45, WT/L/908, 21 Decem ber 2015.  
11 WTO docume nts G/AG/N/CAN/108, 1 July 2015; G/AG/N/CAN/109, 29 April 2016; and 
G/AG/W/125/Rev.8/Add.3, 24 April 2018; and the Food Assistance Convention 2017 Annual Narrative Report.  WT/TPR/S/389 • Canada  
 
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  4.1.1.5   Evolution of support and protection  
4.28.   Among the results of the Uruguay Round, Canada 's Aggregate Measurement of Support (AMS) 
was bound at CAD 4.3 billion per year. Howev er, reflecting a significant decline in agricultural support 
in the mid -1990s, Canada 's amber box support is currently well within this limit (Table 4.4).12 
Excluding de minimis  support, Canada reported total current AMS as below CAD 500 million for 2013 
and below CAD 600 million in 2014, the latest year for which such information is available. Continued 
market price support for milk is (by far) the main component of Canada 's current AMS, exceeding 
the 5% de minimis  level at present.  
Table 4.4 Canada 's domestic support, 2012 -14 
(CAD million)  
  2012  2013  2014  
Measures exempt from the reduction commitment ( "green box ") 
Federal and federal/provincial  2,010  1,747  1,544  
Provincial  644 640 640 
Total green box  2,654  2,387  2,184  
Aggregate Measurement of Support ( "amber box ") 
 Product -specific AMS  968 748 750 
  - Market price support  615 485 576 
  - Direct payments  355 250 148 
  - Other supports  -2 13 26 
 Non-product -specific support  2,019  1,992  1,401  
Total amber box  2,987  2,740  2,151  
Less de minimis     
 - Product -specific  131 249 159 
 - Non-product -specific  2,019  1,992  1,401  
Current total AMS  837 499 591 
Bound total AMS  4,301  4,301  4,301  
Source:  WTO documents G/AG/N/CAN/104, 26 February 2015; G/AG/N/CAN/113/Rev.1, 
29 September  2017; and G/AG/N/CAN/122, 30 May 2018.  
4.29.   Publicly -funded extension, inspection and laboratory services, research -related expenditures, 
and income insurance under the AgriStability Program account for a major portion of the green box 
support reported by Canada in recent years.  
4.30.   According to OECD calculations, Canada 's Producer Support Estimate (PSE), which averaged 
36% of the total value of production in 1986 -88, averaged only 9% in 2015 -17 (Table 4.5), which 
is well below th e 2015 -17 average for all OECD countries (18%). However, due to Market Price 
Support (MPS), provided predominantly to commodities subject to supply management in Canada, 
the share of the potentially most distorting support averaged 69% of PSE in the period  2015-17, 
similar to that during the period 1986 -88 (67%).  
Table 4.5 Evolution of support and protection, 2012 -17 
(CAD million)   
2012  2013  2014  2015  2016  2017  
Producer Support Estimate (PSE)  7,371.99  5,591.09  5,030.04  5,130.16  5,879.95  5,885.04  
Support based on:        
 - Commodity outputs  4,560.08  3,710.09  3,079.57  3,286.17  3,708.46  3,587.90  
 - Price support  4,560.08  3,710.09  3,079.57  3,286.17  3,708.46  3,587.90  
 - Milk 2,947.19  2,475.79  2,235.33  3,086.15  2,725.85  2,842.42  
 - Poultry  736.32  461.07  33.90  0.00 106.17  4.58 
 - Eggs 242.52  202.94  -8.10 -495.75  312.17  206.91  
 - Other commodities  634.05  570.30  818.44  695.77  564.27  533.99  
 - Payments based on output  0.00 0.00 0.00 0.00 0.00 0.00 
 - Payments based on input use  564.30  470.44  483.70  482.71  499.42  509.77  
 - Payments based on A/An/R/I  2,217.96  1,394.98  1,455.34  1,353.58  1,662.42  1,775.38  
 - Payments based on non -
commodity criteria  12.57  0.88 0.39 0.00 0.00 0.00 
 - Miscellaneous payments  17.07  14.71  11.04  7.71 9.64 11.98  
PSE (as a percentage of gross farm 
receipts)   13.86  10.27  8.69 8.62 9.79 9.56 
                                                
12 Canada eliminated market price support to its grains industry in 1995.  WT/TPR/S/389 • Canada  
 
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2012  2013  2014  2015  2016  2017  
Producer NPC  1.10 1.08 1.06 1.06 1.07 1.06 
Producer NAC  1.16 1.11 1.10 1.09 1.11 1.11 
Total value of production (at farm 
gate)  50,359.03  52,541.50  55,939.26  57,688.04  57,875.37  59,273.73  
Note:  Payments based on A/An/R/I. Includes the following categories from the OECD PSE database: payments 
based on current A/An/R/I, production required; payments based on non -current A/An/R/I, production 
required; and payments based on non -current A/An/R/I, production not require d.  
A/An/R/I:  A - Area, An - Animal numbers, R – Receipts, and I - Income.  
NPC:  Nominal Protection Coefficient. Ratio between the average price received by producers and the border price 
(average producer price includes payments based on current output, e.g. deficiency payments).  
NAC:  Nominal Assistance Coefficient. Producer NAC is the ratio between the value of gross farm receipts 
(including support) and gross farm receipts valued at border prices (measured at farm gate).  
Source:  Information provided by the authorities and OECD, Producer and Consumer Support Estimates database. 
Viewed at: http://www.oecd.org/tad/agricultural -policies/producerandconsumersupport 
estimatesdatabase.htm#tables.  
4.1.1.6   Commodities subject to supply management  
4.1.1.6.1   Institutional framework  
4.31.   While elements of supply management have been present in Canada 's agricultural policy since 
the economic depression of the 1930s, the present system is based on the Farm Products Marketing 
Agencies Act of 1972, renamed the Farm Products Agencies Act (FPAA) in 1993, and the Agricultural 
Products Marketing Act (APMA) of 1985. The current national supply management system was 
implemented gradually; for dairy in 1970, followed by eggs (1972), turkey (1974), chicken (1978) 
and chicken hatching eggs (1986). The national marketing agencies created under the FPAA are not 
subject to the Canada 's Competition Act. The APMA delegates feder al authority over the marketing 
related to interprovincial and export trade to provincial commodity boards. Production quotas, 
pricing arrangements, import controls, and coordinated research and marketing activities are the 
key pillars of the supply manage ment system. The Canadian Dairy Commission (milk and dairy) and 
the Farm Products Council of Canada (poultry and eggs) oversee the system and report to the 
Parliament of Canada through the Minister of Agriculture and Agri -Food.  
4.32.   In the dairy sector, each p rovince governs the production and marketing of milk within its 
own borders, and marketing activities related to industrial milk are carried out jointly between the 
federal and provincial governments. Provincial milk marketing boards (or agencies or commis sions), 
generally run by dairy farmers, are given the delegated authority to exercise, for the benefit of 
producers, the same powers in interprovincial trade and export trade which provincial legislation 
permits for trade within the province. The National Milk Marketing Plan, a federal/provincial 
agreement, provides for the establishment of a national target for the production of industrial milk 
and the allocation of this quota to the provinces. The Canadian Milk Supply Management Committee 
(CMSMC) supervis es the provisions of the National Milk Marketing Plan and fixes the annual national 
production target for industrial raw milk.13 The Canadian Dairy Commission calculates monthly 
quotas for the national production according to a methodology determined by the  CMSMC to ensure 
that Canada is self -sufficient in milk fat. Previously, two separate quotas were calculated (the 
industrial market sharing quota and the fluid milk quota). However, this was converted to one single 
quota in February 2016.  
4.33.   The national quo ta is subsequently divided between regional milk pools: the Eastern Canadian 
Milk Pooling Agreement (covering Ontario, Quebec, Nova Scotia, New Brunswick, and Prince Edward 
Island); the Western Milk Pooling Agreement (Manitoba, Saskatchewan, Alberta and 
British Columbia); and the Dairy Farmers of Newfoundland and Labrador, then to each province who, 
in turn, allocate its share to individual farms in the province. Provincial boards were given authority 
to set provincial prices for milk, and to allot producti on quotas to producers based on national and 
provincial production targets. Supervised by the Canadian Dairy Commission, the regional milk pools 
ensure that the revenues from all milk sales, and transportation and other costs, are pooled among 
                                                
13 Chaired by the Canadian Dairy Commission, the CMSMC is formed by government and producer 
representatives from all provinces in Canada. In addition, representatives from national consumer, processor 
and producer organizations participate with non -voting rights.  WT/TPR/S/389 • Canada  
 
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  the dairy pr oducers in the respective regions. A farmer must hold a daily production quota to sell 
his/her output to a processing plant through milk marketing boards, who act as the selling agent on 
behalf of producers. Producers are responsible for ensuring that they  manage their quota and 
production to meet their quota upper and lower limits. Production discipline is exercised, both at the 
pool level and at the level of the individual farm. If the national production is below 98% of the 
quota, provinces in the respon sible pool lose the opportunity to produce and sell the missing milk. 
On the other hand, if national production exceeds 101.25% of the quota, the responsible pool is 
penalized. Provincial milk marketing boards establish similar disciplines for their respec tive farmers.  
4.34.   Under the Farm Products Council of Canada, four national agencies ensure the orderly 
production and marketing of products under the respective responsibilities: the Egg Farmers of 
Canada, the Turkey Farmers of Canada, the Chicken Farmers of Canada, and the Canadian Hatching 
Egg Producers.  
4.35.   In all, about 16,000 Canadian farms - mostly dairy farms - operate under supply 
management. Except for the funding of certain administrative costs, federal and provincial 
governments do not provide direct f inancial contributions to the operation of the system. Producers 
exercise discipline in production to match domestic demand as closely as possible and, in return, 
farm gate prices are set to provide acceptable incomes to the participating farmers.  
4.1.1.6.2   Milk an d dairy  
4.36.   The number of dairy farms fell below 11,000 in 2017, a reduction of nearly 2,000 farms since 
2010 (Table 4.6). The number of dairy cattle also declined over the same period, albeit at a much 
slower rate. Nevertheless, due to the continuing increase  in productivity per cow, Canada 's milk 
production is at record levels, reaching nearly 90 million hectolitres in 2017. While the sector appears 
to be somewhat less protected than ten years ago, the Producer SCT as a share of gross receipts 
still exceeds 4 0%. 
Table 4.6 Selected indicators for the Canadian dairy sector, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
Farming sector         
  
Number of dairy 
farms (as at 
1 August)  12,965  12,746  12,529  12,234  11,962  11,683  11,289  10,951  
Dairy cattle  
('000 head)  
(as at 1 January)  1,431.3  1,431.9  1,423.3  1,420.9  1,393.8  1,372.9  1,372.3  1,368.6  
Total farm cash 
receipts from 
dairying  
(CAD million)a 6,262.1  6,567.4  6,698.8  6,707.6  7,251.8  7,293.1  7,229.7  7,644.0  
Dairy products  5,524.2  5,815.5  5,917.8  5,891.6  6,073.5  6,028.8  6,174.2  6,564.5  
Cattle and calves  
(dairy only)  737.9  751.9  781.0  816.0  1,178.3  1,264.4  1,055.4  1,079.5  
Average farm milk 
price (CAD per hl) 
(dairy year basis)  75.4 76.1 76.4 79.1 76.2 73.8 74.5 72.0 
Milk production 
('000 hl)  76,731.5  77,771.1  79,801.3  78,198.0  78,259.9  81,766.9  84,704.9  89,841.9  
Milk quota (million 
kg of butterfat) 
(as at 1 August)  300.9  308.5  305.8  307.0  314.9  321.7  346.0  369.0  
Processing 
sector         
  
Dairy 
establishments  443 451 468 476 471 473 471 478 
Federally -
registered  273 275 280 278 273 271 270 279 
Provincially -
licensed  170 176 188 198 198 202 201 199 
Manufactured 
shipments of milk 
and dairy products  
(CAD billion)  14.0 13.8 14.2 15.8 14.2 13.5 14.7 14.3 
Sales of fluid milk 
and cream 
products  
('000 litres)b 2,668,103  2,636,431  2,622,939  2,608,220  2,553,161  2,546,832  2,530,649  2,436,902  WT/TPR/S/389 • Canada  
 
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    2010  2011  2012  2013  2014  2015  2016  2017  
Manufacturing of 
dairy products         
  
Cheese production  
('000 kg)  408,647  405,033  423,803  421,054  433,391  446,216  476,641  497,281  
Butter ( '000 kg)  82,930  91,366  99,621  91,995  86,069  87,639  94,208  109,476  
Yoghurt ( '000 kg)  300.7  340.5  373.6  364.9  365.3  409.2  407.6  387.5  
Milk powder 
products ( '000 kg)  97,050  109,271  121,955  103,638  121,237  140,476  137,257  147,007  
Dairy trade  
(CAD million)         
  
Exports  227.2  252.0  237.4  262.0  281.5  211.1  235.3  398.9  
Imports  610.4  669.9  677.4  751.2  899.2  900.6  968.6  872.2  
Trade balance  -383.1  -417.9  -440.0  -489.2  -617.7  -689.5  -733.3  -473.3  
Support         
  
Producer SCT  
(CAD million)  3,027.7  2,567.9  2,947.2  2,475.8  2,235.4  3,086.2  2,725.9  2,858.6  
Percentage SCT 
(%) 53.2 42.7 48.3 40.6 35.4 49.7 42.8 41.9 
a Farm cash receipts: after transportation and handling costs, plus other fees; dairying refers to milk  sold off 
farms.  
b Estimates from 2009 to 2013.  
Note:  SCT refers to Single Commodity Transfers: the sum of transfers to producers granted to a single 
commodity. The % SCT is expressed a share of gross farm receipts for the specific commodity.  
Source:  Information provided by the authorities and Canadian Dairy Information Centre. Viewed at: 
http://www.dairyinfo.gc.ca/index_e.php?s1=dff -fcil; Agriculture and Agro -Food Canada, Statistics of  
Canada 's Animal Genetics 2018 Edition ; and OECD, Producer and Consumer Support Estimates database. 
Viewed at: http://www.oecd.org/tad/agricultural -
policies/producerandconsumersupportestimatesdatabase.htm#country . 
4.37.   The CMSMC meets around four times per year to examine trends in production and 
consumption, economic factors, and market developments that affect the dai ry industry. The 
national production target for industrial milk is constantly monitored and may be adjusted to reflect 
changes in the domestic demand for industrial milk products (measured in butterfat). The monthly 
quota for national production of fluid m ilk and industrial milk (Total Quota) calculated by the 
Canadian Dairy Commission includes an allowance for market growth.  
4.38.   Over the last ten years, Canadian consumers have reduced their (per capita) intake of fluid 
milk and ice cream, whereas the consumpt ion of dairy products, in particular cream, cheeses and 
yoghurt has been increasing.14 The dairy industry has developed a wide range of new cheeses and 
other products in response to this shift in consumer preferences and to stimulate further growth. 
Overall , dairy consumption has been on the rise, measured in butterfat, and has allowed a significant 
increase in the production quotas. At present, the monthly Total Quota fluctuates around 
30 million  kg of butterfat, i.e. about 20% more than in 2010.15 Total dem and in the period 
August  2016-July 2017 amounted to 364.2 million kg of butterfat, an increase of 5.6% compared 
with the previous marketing year. On average, a Canadian dairy farm produced 30,544 kg of 
butterfat from a herd of 85 cows, generating cash rece ipts of CAD  547,000 (average farmgate level). 
Two provinces – Quebec and Ontario – account for 82% of Canada 's dairy farms.  
4.39.   The Canadian Dairy Commission establishes support prices, i.e. the prices at which it 
purchases butter and skim milk powder for onw ard sale to processors under various programmes.16 
In the past, the provincial marketing boards, who have the authority on milk pricing, used this 
information to establish the prices they charge processors for the raw milk they (or provincial 
agencies) had purchased from dairy farms. Following an agreement between producers and 
processors in July 2016, the Eastern and Western milk pools determined that, as from 
1 February  2017, farm milk prices are no longer to be adjusted based on CDC support prices. 
Instea d, the annual adjustment is calculated using a mathematical formula based on the cost of 
                                                
14 Fluid milk now accounts for approximately 28% of total sales.  
15 Canadian Dairy Commission online information. Viewed at: http://www.cdc -ccl.gc.ca/CDC/index -
eng.php?id=4421 .  
16 Effective 1 September 2018, the Canadian Dairy Commission increased the support price for butter 
from CAD 8.0062/kg to CAD 8.3901/kg, leaving the support price for skim milk powder unchanged at 
CAD 4.5302/kg.  WT/TPR/S/389 • Canada  
 
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  producing milk (as calculated/commissioned by the CDC) and on the Consumer Price Index (as 
published by Statistics Canada).  
4.40.   As the value of raw milk differs depending on its end use, a Harmonized Milk Classification 
System (HMCS) is used to determine the prices processors pay for milk purchased through the milk 
marketing boards according to their specific needs. The national HMCS has five classes with various 
subsection s, generally covering fluid milk (Class 1), yoghurts and ice cream (Class 2), cheeses 
(Class  3), butter, butteroil, concentrated milk and other products (Class 4), and special milk classes 
(Class 5).17 The prices that individual dairies within a pool receiv e for raw milk are not differentiated 
according to the end use as milk sales are pooled.  
4.41.   Although the consumption of dairy products has been on the rise in recent years, prompting 
increases in milk production in Canada, the changes in consumer preferences  have led to a structural 
surplus of skim milk. Ontario accordingly introduced a Class 6 in 2016 for various domestic dairy 
ingredients to be subjected to international market prices. In February 2017, provincial marketing 
boards across Canada adopted a ne w pricing strategy (Class 7) along similar lines for solids, non -fat 
(skim milk) products and other ingredients, with the expectation that this would become a 
nationwide programme.18 This action was not received favourably outside of Canada, in particular 
by the dairy industry in the United States. Thus, as part of the negotiations leading to the 
establishment of the CUSMA, Canada agreed to eliminate the Class 6 and 7 pricing systems within 
six months after the entry into force of the Agreement and apply cha rges to exports (beyond agreed 
thresholds) of skim milk powder, milk protein concentrates and infant formula upon entry into force 
of the Agreement.  
4.42.   The milk production quotas assigned to individual farms represent an economic value and 
may be traded amon g the farmers located within a province, subject to rules and conditions laid 
down by the provincial marketing boards and agencies. Sales are monitored by provincial marketing 
boards and are subject to price caps (that may be adjusted monthly) in certain p rovinces. Expressed 
in kilograms of butterfat per day, the price caps typically ranged from CAD 24,000 in Ontario and 
Quebec to approximately CAD 40,000 in Alberta and British Columbia during 2018.19 Many Canadian 
dairy farmers use their milk quotas as coll ateral for loans that support their farming operations. As 
investment in production quotas represents a major cost of entry into the sector, the provinces have 
established various programmes offering preferential access to the quota system for new entrants , 
such as the P5 (Ontario, Quebec, Prince Edward Island, New Brunswick, and Nova Scotia) New 
Entrant Quota Assistance Program (NEQAP), designed to assist those with an interest in dairy 
farming who may not otherwise have the financial means or opportunity to get started in the 
industry.  
4.43.   Two federal programmes were launched to mitigate the impact on domestic producers 
resulting from higher cheese imports under the CETA. The Dairy Farm Investment Program involves 
an initial CAD 250 million in contributions o ver five years to investments undertaken by Canadian 
cow's milk producers, to improve productivity through upgrades of their barn equipment. The Dairy 
Processing Investment Fund (DPIF) is a four -year CAD 100 -million contribution programme directed 
at enhan cing the productivity and competitiveness of Canadian dairy processors. The DPIF supports 
industry -led investments, on a cost -shared basis, for capital investments in equipment and 
infrastructure, or access to enhanced technical, managerial, or business ex pertise.  
4.44.   On 29 October 2018, the Federal Government announced the establishment of two new 
working groups. One group is to develop mitigation strategies to help dairy farmers and processors 
adjust to the short -term impacts of the CUSMA and the CPTPP. The other group was tasked with 
developing a strategic vision to help the dairy sector innovate and remain an important source of 
jobs and economic growth for future generations. A poultry and egg working group will focus on 
both short -term and long -term goals  for the sector.  
                                                
17 For details, see Canadian Dairy Commission online information. Viewed at: http://www.cdc -
ccl.gc.ca/CDC/index -eng.php?id=3811 .  
18 Class 7 comprises skim milk components, such as milk protein concentrates, skim milk and whole 
milk pow ders, edible casein, rennet casein, and various powders derived from milk products.  
19 The Canadian Dairy Information Centre (CDIC) compiles and publishes information regarding the 
quantity of quota exchanged and applicable price caps on its website. CDIC online information. Viewed at: 
http://www.dairyinfo.gc.ca/index_e.php?s1=dff -fcil&s2=quota&s3=qe -tq.  WT/TPR/S/389 • Canada  
 
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  4.1.1.6.3   Poultry and eggs  
4.45.   Canada has around 2,800 chicken farms and 550 turkey farms. The production of poultry has 
been rising steadily, in volume as well as in value, particularly since 2014 (Table 4.7). Canada 's net 
imports of chicken amount to  around CAD 200 -300 million per year, while trade in turkey, ducks, 
geese, and other poultry is much less significant and more balanced. The farmgate value of Canada 's 
chicken and turkey production is about CAD 2.9 billion per year. Support to the sector m easured in 
Producer SCTs was low in recent years, primarily reflecting increasing world poultry prices 
(translated into Canadian dollars) relative to domestic prices since 2012. Prior to that, high grain 
prices relative to world poultry prices resulted in much higher Producer SCTs, as the domestic 
support price for poultry is adjusted to the cost of production of feed grains.  
Table 4.7 Selected indicators for the poultry sector, 2010 -17 
 
2010  2011  2012  2013  2014  2015  2016  2017  
Number of farms         
  
Chicken  2,681  2,664  2,645  2,660  2,653  2,803  2,817  2,836  
Turkey  548 543 539 527 531 535 551 542 
Total poultry 
production (in 
weight, '000 kg)  1,209,129  1,216,426  1,225,133  1,248,885  1,267,109  1,308,674  1,362,136  1,407,062  
Chicken (including 
stewing hen)  1,050,938  1,057,215  1,064,432  1,080,636  1,099,257  1,137,070  1,178,778  1,235,834  
Turkey  158,191  159,211  160,701  168,249  167,852  171,604  183,358  171,227  
Value of 
manufactured 
shipments (CAD 
billion)  6.3 6.5 6.7 6.8 7.1 7.6 7.8 8.1 
Trade  
(CAD million)         
  
Exports         
  
All poultry meat  333.9  334.5  375.2  414.1  440.2  537.1  522.1  511.9  
Chicken and 
mature chicken  278.7  278.5  322.8  361.5  371.6  460.7  453.0  441.6  
Turkey  33.2 30.2 29.8 32.2 49.1 52.7 48.0 38.5 
Ducks, geese and 
guineafowl  20.4 23.7 17.6 17.3 15.5 20.0 17.5 25.1 
Other poultry  1.7 2.1 5.0 3.2 4.0 3.8 3.6 6.7 
Imports         
  
All poultry meat  558.9  527.3  666.3  717.5  736.6  875.4  788.3  715.6  
Chicken and 
mature chicken  493.9  466.4  607.4  661.8  679.3  807.8  715.6  654.9  
Turkey  31.6 29.1 30.2 26.3 28.3 36.9 33.6 31.7 
Ducks, geese and 
guineafowl  24.5 20.5 15.2 15.5 13.9 17.1 26.4 16.2 
Other poultry  9.0 11.3 13.5 13.9 15.1 13.7 12.8 12.7 
Trade balance         
  
All poultry meat  -225.0  -192.8  -291.1  -303.4  -296.3  -338.3  -266.2  -203.7  
Chicken and 
mature chicken  -215.2  -187.9  -284.6  -300.4  -307.7  -347.1  -262.6  -213.3  
Turkey  1.6 1.1 -0.4 5.9 20.9 15.8 14.4 6.8 
Ducks, geese and 
guineafowl  -4.1 3.2 2.4 1.7 1.6 2.9 -8.9 8.9 
Other poultry  -7.3 -9.2 -8.5 -10.6 -11.0 -9.8 -9.2 -6.0 
Support         
  
Producer SCT  
(CAD million)  353.0  817.6  738.3  461.1  33.9 6.8 106.2  4.6 
Percentage SCT 
(%) 15.4 31.3 26.8 16.2 1.2 0.2 3.7 0.2 
Note:  SCT refers to Single Commodity Transfers: Sum of transfers to producers granted to a single 
commodity.  
 The % SCT is expressed a share of gross farm receipts for the specific commodity.  
Source:  Agriculture and Agri -Food Canada online information. Viewed at: 
http://www.agr.gc.ca/eng/industry -markets -and-trade/canadian -agri-food-sector -
intelligence/?id=1361290241756 ; Statistics Canada (CANSIM 003 -0018); Agriculture and Agro -Food 
Canada, Statis tics Canada 's Animal Genetics 2018 Edition ; and OECD, Producer and Consumer 
Support Estimates database. Viewed at: http://www.oecd.org/tad/agricultural -
policies/producerandconsumersupportestimatesdatabase.htm#country .  
4.46.   The national Chicken Farmers of Canada agency has nine provincial members. Alberta 
withdrew from the agency at the end of 2013, but subsequently returne d in 2017. The agency 's 
Board of Directors meets every six weeks. It establishes the Canadian Chicken Marketing Quota WT/TPR/S/389 • Canada  
 
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  Regulations, covering production over a rolling eight -week period. The agency administers three 
quota allocations: (i) chicken for the dom estic market, whether whole birds, parts, or as ingredients 
in other products; (ii) the market development allocation, filled voluntarily by producers as additions 
to their domestic allocation; and (iii) specialty production of breeds that do not compete d irectly 
with the mainstream business. Each province is assigned a share of the national quota, and the 
provincial marketing boards allocate production to individual farmers.  
4.47.   Quota Units are assigned to existing and new producers, and they may be traded or  leased 
between the licensed producers, with the approval of the provincial supervisory board. Limits may 
apply as to the percentage of the provincial quota held by individual producers. A quota utilization 
percentage is fixed for each production cycle. Th e percentage varies in accordance with the demand 
for chicken meat. At its November meeting, the agency agrees on the levy applicable in the coming 
year, to defray the costs (of administration, marketing, etc.) deemed essential to attain the agency 's 
objec tives. The Canadian Chicken Marketing Levies Order must be approved by the Farm Products 
Council of Canada (FPCC). The levy amounted to CAD 0.0053 per kg of chicken (live weight) in 2016 
and in 2017.  
4.48.   The national Turkey Farmers of Canada (TFC) agency is responsible for the domestic 
production and marketing of turkeys and turkey meat. Production quotas are enforced through the 
Canadian Turkey Marketing Quota Regulation, 1990, and complemented by import controls (TRQs). 
Eight provinces are represented on the  TFC's Board of Directors, which meets (at least) quarterly to 
review production levels and market developments, and to divide the production quota between the 
provinces. The quota allocation policies administered by the TFC have four elements: (i) the Nat ional 
Commercial Allocation Policies, with sub -quotas for turkey meat from whole birds and birds produced 
for further processing; (ii) the Export Policy quota, allowing sufficient production to cover planned 
exports; (iii) a quota for mature turkeys produc ing eggs and poultry for the industry (the Multiplier 
Breeder Policy); and (iv) a quota for meat from birds marketed as primary breeding stock (the 
Primary Breeder Policy).  
4.49.   Provincial turkey boards distribute their provincial allocation among the turkey f armers and 
determine the volumes of each size of bird (broilers, hens and toms) to be raised to fill their share 
of the national allocation. Prices are set and negotiated with processors based on input costs, the 
supply and demand situation, prices of comp eting meats, and storage levels. Production quotas may 
be traded among the turkey farmers. If a province exceeds authorized marketing, the provincial 
board must pay CAD 0.33 for each excess kilogram of multiplier breeder turkey, and CAD 0.22 for 
turkey oth er than multiplier breeds. Provinces are also penalized through a reduction of allocation 
of future quota.  
4.50.   At its November meeting, the TFC Board of Directors decides on a levy applicable to 
interprovincial and export trade in turkey and turkey meat (the Canadian Turkey Marketing Producer 
Levy Order). This levy is established for each participating province, and currently ranges from 
CAD 0.03/kg in New Brunswick to CAD 0.0505/kg in Alberta. Supply management is not applied in 
Prince Edward Island and Newfo undland and Labrador, where turkey production is not registered.  
4.51.   In 2017, Canada had 1,059 egg producers and 241 broiler hatching egg producers 
(Table  4.8). On average, the egg farms have a flock size of approximately 25,000 birds. Most of the 
farmers are  members of their respective supply management organizations, i.e. the Egg Farmers of 
Canada (EFC) and the Canadian Hatching Egg Producers (CHEP).20 The EFC Board of Directors meets 
at least four times per year, to plan and manage egg production and marketi ng, i.e. principally to 
set or adjust the production quota and fix the production levy for table eggs. The Canadian Egg 
Marketing Quota Regulations, 1986 has five elements: (i) shell eggs produced for the table market 
under federal allocation. Surplus tabl e eggs are purchased by the EFC and resold to processors at 
the Canadian processor price; (ii) shell eggs produced for processing and generally sold at less than 
the cost of production. Not all provinces have such an allocation; (iii) an Export Market Deve lopment 
Allocation available to certain producers in Manitoba, who are obliged to sell these eggs to a 
processor; (iv) a Vaccine Egg Allocation for fertilized eggs sold to the pharmaceutical industry for 
                                                
20 All provinces and the Northwest Territories are members of the EFC,  while the CHEP has six provincial 
members. Hatching egg producers in Nova Scotia are currently working with their government to have 
hatching eggs recognized as a supply -managed commodity within their province.  WT/TPR/S/389 • Canada  
 
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  the manufacture of flu vaccine, etc.; and (v) a Spec ial Temporary Market Requirement Quota 
(STMRQ).21  
Table 4.8 Selected indicators for the egg sector, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
Number of farms         
  
   Eggs 1,025  1,009  1,016  1,021  1,007  1,021  1,062  1,059  
   Broiler hatching eggs  252 248 245 238 240 244 243 241 
Production of eggs ( '000 dozens)  634,036  644,660  656,999  663,591  665,594  698,362  746,390  774,528  
Trade (CAD million)         
  
Exports         
  
Total eggs  69.6 59.9 58.9 54.9 74.5 95.2 82.1 85.2 
Hatching eggs  44.7 40.3 38.6 32.6 43.4 46.6 55.2 68.8 
Shell eggs, 
fresh/preserved/cooked  0.8 0.8 1.0 1.1 11.8 15.1 5.1 1.8 
Processed eggs  24.1 18.8 19.3 21.1 19.3 33.5 21.7 14.6 
Imports           
  
Total eggs  76.6 76.5 84.7 110.4  166.5  236.8  133.4  137.6  
Hatching eggs  40.4 38.7 41.1 46.7 49.7 58.4 62.5 65.3 
Shell eggs, 
fresh/preserved/cooked  21.8 24.6 29.6 44.3 89.6 146.1  45.3 48.2 
Processed eggs  14.4 13.2 13.9 19.4 27.3 32.4 25.6 24.0 
Trade balance           
  
Total eggs  -7.0 -16.6 -25.7 -55.5 -92.1 -141.6  -51.3 -52.3 
Hatching eggs  4.3 1.6 -2.5 -14.1 -6.3 -11.8 -7.2 3.5 
Shell eggs, 
fresh/preserved/cooked  -20.9 -23.8 -28.6 -43.1 -77.9 -131.0  -40.2 -46.4 
Processed eggs  9.7 5.6 5.3 1.7 -7.9 1.1 -3.9 -9.4 
Support         
  
   Producer SCT  
   (CAD million)  159.1  206.2  242.5  202.9  -8.1 -495.7  312.2  206.9  
   Percentage SCT (%)  22.0 25.6 27.6 21.9 -0.9 -50.5 29.6 18.9 
Note:  SCT refers to Single Commodity Transfers: Sum of transfers to producers granted to a single 
commodity.  The % SCT is expressed a share of gross farm receipts for the specific commodity.  
Source:  Agriculture and Agri -Food Canada online information. Viewed at: 
http://www.agr.gc.ca/eng/industry -markets -and-trade/canadian -agri-food-sector -
intelligence/?id=1361290241756 ; Statistics Canada (CANS IM 003 -0018); Agriculture and Agro -Food 
Canada, Statistics of Canada 's Animal Genetics 2018 Edition ; and OECD, Producer and Consumer 
Support Estimates database. Viewed at: http://www.oecd.org/tad/agricultural -
policies/producerandconsumersupportestimatesdatabase.htm#country . 
4.52.   Short -term and seasonal surpluse s occur regularly in egg farming, as production is continuous 
while the demand for table eggs fluctuates. Interprovincial trade is used to match surpluses and 
shortages among the provinces, to the extent possible. In addition, the EFC operates an Industria l 
Products Program (IPP) to transform surplus table eggs into "breaker eggs " for the food processing 
industry. Some provinces also administer their own "Egg for Processing " quotas to supplement the 
IPP. As the price processors pay for breaker eggs is deter mined in relation to external reference 
prices (Urner Barry), the EFC operates a Pooled Income Fund to offset margin changes between 
producer and processor prices. Lower processor prices and higher intake under the IPP prompted a 
CAD 0.15/dozen increase in  the production levy during 2016, to CAD 0.3375/dozen by the end of 
the year. The levy was subsequently reduced, reflecting improved market conditions.  
4.53.   Egg production has been on the rise in Canada, and 2017 marked the eleventh consecutive 
year of growth.  About 732 million dozen eggs were produced for human consumption in response to 
higher demand. Imports are regulated under the WTO TRQ (21.37 million dozen), and the TRQ is 
mostly filled.  
4.54.   In line with the established supply -management policy, Canada 's broiler hatching egg 
producers primarily serve the domestic market. In 2017, the production reached 759 million broiler 
hatching eggs, of which nearly 0.5% was exported. Imports are regulated under a TRQ which 
amounted to 158.5 million egg equivalents22, but supplementary imports may also be authorized. 
The Canadian Hatching Egg Producers (CHEP) calculates the producer levy based on its budget and 
                                                
21 The STMRQ was introduced as a temporary me asure to deal with disruptions caused by the outbreak 
of Avian Influenza in the United States in 2015. No allocations were made under the STMRQ in 2017 and 2018.  
22 One imported broiler chick corresponds to 1.27 broiler hatching eggs.  WT/TPR/S/389 • Canada  
 
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  production forecasts. The levy has been decreasing (CAD 0.0032 per egg in 2018, CAD 0.003 in 
2019).  
4.1.1.7   Marketing age ncies  
4.55.   The FPAA was amended in 1993 to allow the establishment of promotion and research 
agencies for individual farm products. Among the conditions, it must be ascertained that a majority 
of the producers and, where applicable, importers of such a commodit y favour this action. A 
promotion and research agency is created by proclamation of the Governor in Council. It has the 
authority to implement a promotion and research plan, funded by a levy on domestic production and 
imports, but it has no authority to re gulate production.  
4.56.   The Canadian Beef Cattle Research Market Development and Promotion Agency (Canadian 
Beef Check -Off Agency) was created in 2002. It promotes research, production and marketing of 
beef cattle, beef, and beef products in interprovincial, im port and export trade. The annual levy 
amounts to CAD  1 per head of beef cattle sold or imported, or the equivalent of this amount for beef 
and beef products. The levy is collected by the provinces on domestic sales, while the Beef PRA 
collects the levy di rectly on imports in collaboration with Agriculture and Agri -Food Canada.  
4.57.   The Farm Products Council of Canada received submissions to establish a number of PRAs. 
Although no additional PRAs have been created thus far, public discussions have advanced, and  
proposals to establish PRAs for pork, hemp and barley are currently being evaluated.  
4.1.2   Forestry  
4.58.   The forestry sector continues to be important, as Canada possesses about 9% of the world 's 
forests and about 35% of its area is covered in forests.23 The forest sector encompasses the wood, 
pulp and paper sectors, and increasingly an emerging bio -economy sector. In 2017 the sector 
contributed to about 1.61% of GDP, a figure that has slightly increased during the review period 
from 1.09% in 2014. The forest sector continues to be an important economic driver in 
approximately 300 Canadian communities. Many are located in rural regions where there are 
relatively few jobs in other industries. Furthermore, Indigenous peoples represent a higher share of 
the labour force in those communities than other communities in Canada. The importance of forest 
sector to trade has remained strong or strengthened during the review period. Canada is the world 's 
fourth largest exporter of forest products.24 
4.59.   Canada 's forest area covers abo ut 347 million ha, with a total wood volume of 47 billion m3 
(Table 4.9). Most of this is coniferous forest (67%), followed by mixed wood forests (15.8%), 
broadleaf forests (10.5%), and temporarily non -treed forests (5.9%). While much of the territory is 
covered in forests, the economic value of the sector is greatest in the provinces of British Columbia, 
Ontario, and Quebec, as they have the largest forest areas and most of the forest -related jobs. 
However, even in smaller provinces, the forest -based econo my is a relatively important sector of 
the rural economy. Most of the forests in Canada are owned by the provinces and territories (90%), 
although ownership levels fluctuate significantly. The remaining forests are held by the private sector 
(6.2%), Indige nous groups (2%), the Federal Government (1.6%), and municipalities (0.3%).25 
Seven percent of the forests are protected, with the majority (4%) protected for ecosystem and 
recreational reasons, based on International Union for Conservation of Nature classi fication 
categories.26 Less than 0.5% of Canada 's forests are harvested each year.27  
                                                
23 Statistics Canada online information. Viewed at: www.statcan.gc.ca .  
24 Information provided by the authorities.  
25 Natural Resources Canada online information. Viewed at: 
http://cfs.nrcan.gc.ca/statsprofile/inventory . 
26 Canada's National Forest Inventory online information. Viewed at: 
https://nfi.nfis.org/r esources/general/summaries/en/html/CA3_T9_PSAGE20_AREA_en.html .  
27 "The State of Canada 's Forests, Annual Report 2018 ." Natural Resources Canada online information. 
Viewed at: http://cfs.nrcan.gc.ca/pubwarehouse/pdfs/39336.pdf . WT/TPR/S/389 • Canada  
 
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  Table 4.9 Key forest sector figures, 2015 -17 
 2015  2016  2017  
Forest land (million ha)  347 347 347 
Total wood volume (billion m3) 47 47 47 
Deforestation (million ha)  0.034  0.037  .. 
Area harvested (million ha)  0.780  0.767  .. 
  Provincial Crown land  0.702  0.691  .. 
  Private land  0.076  0.076  .. 
Third-party certification (million ha)  166 168 170 
Employment  201,645  211,075  209,940  
Contribution to GDP (billion)  21.9 22.9 24.6 
  % of nominal GDP  1.56 1.60 1.61 
.. Not available.  
Source:  Natural Resources Canada. The State of Canada 's Forests, Annual Reports 2015 -18. Natural 
Resources Canada online information. Viewed at: 
http://cfs.nrcan.gc.ca/publications?lang=en_CA%20 ; and information provided by the authorities.  
4.1.2.1   Production and trade  
4.60.   There were slight variations in the production of forest products during the review period but 
generally production remained stable while exports continued to increase steadily. Canada remained 
one of the top producers of certain forest products, i.e. newsprint, soft wood lumber, and bleached 
softwood kraft pulp. Softwood lumber remained the highest valued forest product produced and 
exported during the period. Forest products accounted for 7.1% of Canada 's total exports in 2017.28 
4.61.   Timber harvesting peaked in 2004 at ab out 210 million m3, declined steadily thereafter until 
2009, after which it grew steadily to about 160 million m3. The decline was mainly attributed to the 
financial crisis and declines in the U.S. housing market. Production of Canada 's main forest product , 
softwood lumber, grew nearly 5% between 2015 and 2016, and remained stable between 2016 and 
2017. Newsprint, also one of the mainstays of the sector, witnessed continual declines during the 
period due to lower demand as a result of technological change ( Table 4.10).  
4.62.   The main forest products where Canadian exports lead world markets are in softwood lumber, 
oriented strand board (OSB), northern bleached softwood kraft pulp (NBSK), and newsprint. 
Softwood lumber continued to be the single largest category of  forest product, and its export value 
increased significantly over the period (Chart 4.3), largely as a result of increasing prices. Wood pulp 
exports were the second largest by value, and also increased slightly. Forest product exports have 
become increas ingly diversified over the past decade, with less reliance on the U.S. market, although 
it remains the largest single destination. In recent years, many forest product exports have gone to 
Asia, in particular China.  
4.63.   Canada 's forest sector exports have con tinued to be impacted by trade disputes in recent 
years. In particular, a long -standing disagreement on the softwood lumber trade resulted in the 
2006 Softwood Lumber Agreement (SLA), which managed trade in the export of softwood lumber 
to the United State s until it expired on 12 October 2015.29 In 2017, anti -dumping (AD) and (CV) 
duties on Canadian softwood lumber were applied.30 Subsequently, dispute settlement provisions of 
NAFTA and the WTO were initiated by Canada with respect to these softwood lumber tr ade remedies; 
and a WTO panel report was also issued during the review period on  CV measures applied to super 
calendared paper and uncoated groundwood paper; this is being appealed.31  
                                                
28 "The State of Canada 's Forests, Annual Report 2018 ". Natural Resources Canada online information. 
Viewed at: http://cfs.nrcan.gc.ca/pub warehouse/pdfs/39336.pdf . 
29 Global Affairs Canada online information. Viewed at: https://www.international.gc.ca/controls -
controles/softwood -bois_oeuvre/other -autres/agreement -accord.aspx?lang=eng . See also Section 3.2.2,  
Export taxes, charges, and levies.  
30 G/ADP/N/314/USA , 18 September 2018 and G/SCM/N/334/USA , 27 September 2018  
31 See Table A2.1 and NAFTA Secretariat online i nformation. Viewed at: https://www.nafta -sec-
alena.org/Home/Dispute -Settlement/Status -Report -of-Panel -Proceedings .  WT/TPR/S/389 • Canada  
 
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  Table 4.10 Domestic production, imports, and exports, 2015 -17 
 2015  2016  2017  
Domestic Production  
Hardwood lumber (m3) 1,754,400  1,563,300  1,336,500  
Softwood lumber (m3) 62,974,400  66,862,300  66,860,400  
Newsprint ( '000 tonnes)  3,505,000  3,342,000  3,054,000  
Printing and writing paper (tonnes)  3,036,000  2,995,000  2,975,000  
Wood pulp (tonnes)  16,551,000  16,508,000  16,302,000  
Structural panels (m3) 7,966,755  8,728,654  8,855,194  
Domestic Consumption  
Hardwood lumber (m3) 2,409,284  1,650,888  1,422,275  
Softwood  lumber (m3) 23,139,247  22,741,216  24,746,563  
Newsprint (tonnes)  254,656  285,331  235,101  
Printing and writing paper (tonnes)  1,339,974  1,310,293  1,342,309  
Wood pulp (tonnes)  6,969,820  7,050,187  7,082,324  
Structural panels (m3)  6,906,880  4,071,248  4,273,348  
Imports (CAD billion)  11.2 11.2 11.5 
Exports (CAD billion)  32.8 34.6 35.9 
Source:  "The State of Canada 's Forests ", Annual Reports 2015 -18. Natural Resources Canada online 
information. Viewed at: http://cfs.nrcan.gc.ca/publications?lang=en_CA%20 ; Natural Resources 
Canada 's Statistical Information . Viewed at: http://cfs.nrcan. gc.ca/statsprofile/trade/ca ; and Global 
Trade Atlas online information at: https://ihsmarkit.com/products/maritime -global -trade-atlas.html .  
Chart 4.3 Exports of Canadian forest products, by value and type, 2015 -17 
(CAD billion)  
 
 
Source:  WTO Secretariat, based on Natural Resources Canada 's Statistical Data . Viewed at: 
http://cfs.nrcan.gc.ca/statsprofile/trade/ca .  
4.1.2.2   Framework, policy, and management  
4.64.   As Canada 's provinces and territories own 90% of the forest resources in Canada, they are 
also the ones primarily responsible for establishing the laws and policies ap plicable to Canada 's 
forests, and for managing them. Each jurisdiction has its own laws and systems regarding the 
conservation and management of the forests in their respective territory. Thus, the 
provinces/territories establish concession arrangements fo r the harvesting of timber, determine 
management plans, monitor and enforce rules and regulations, and administer royalty fees 
(stumpage fees). Details of each legislation, policy, and system for each province/territory are too 
voluminous to examine, but s ummary information is available on the website of Sustainable Forest 
Management in Canada.32 Canada 's forests under management cover about 226 million ha, or about 
                                                
32 Sustainable Forest Management in Canada online information. Viewed at: 
https://www.sfmcanada.org/en/forest -products/legal -forest -products#Prov .  
8.510.0 10.42.32.2 2.0 1.51.6 1.6 1.62.2 2.47.77.27.811.011.211.4
0.010.020.030.040.0
2015 2016 2017Softwood lumber Newsprint Printing and writing paper
Structural wood panels Wood pulp Other forest productsChart 4.[Can] Exports of Canadian forest products by value, 2015 -17
(CAD billion)
Source WTO Secretariat, based on Natural Resources Canada's Statistical Information.  Viewd at: 
http://cfs.nrcan.gc.ca/statsprofile/trade/ca. [November 2018].WT/TPR/S/389 • Canada  
 
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  65% of the forest lands, with the remaining forest lands considered unmanaged.33 Provincial an d 
territorial laws and regulations also address the requirements of over -arching federal laws that apply 
to forests, and of international agreements Canada has signed.  
4.65.   Building on a long tradition of cooperation between Canada 's federal, provincial, and te rritorial 
governments, the Canadian Council of Forest Ministers (CCFM) was established in 1985, as the 
pan-Canadian forest body. The CCFM serves as a forum for jurisdictions to exchange information, 
provide leadership, and work cooperatively on forest and forestry -related issues of Canadian and 
international concern.  
4.66.   Canada 's Federal Government plays a leadership role, with the CCFM, and provides an 
enabling Secretariat function. At the federal level, the CCFM provides a united forum for Canadian 
provinces and territories to publicly commit to pan -Canadian visions, strategies, and action plans for 
forests and the forest sector. For example, in recent years, the CCFM led efforts to establish the 
National Forest Pest Strategy, the Canadian Wildland Fire Strate gy, the Forest Bio -economy 
Framework for Canada, and A Vision for Canada 's Forests, 2008 and Beyond, which is currently 
being renewed.34  
4.67.   At the federal level, the Species at Risk Act, 2002 (SARA) ensures that the habitat of 
endangered or threatened wildlife species is protected. The Forestry Act, 1985 sets out development 
and research activities, and establishes Forest Experimental Areas on federal lands. The Timber 
Regulations, 1993 set out the rules and permitting procedures for the cutting and rem oval of timber 
on federal lands. The Indian Act, the Indian Timber Regulations, and the Indian Timber Harvesting 
Regulations govern the cutting of timber on Indigenous reserve lands. However, it is noted that 
federal and Indigenous lands account for a very  small amount of the timber harvested annually.  
4.68.   The Federal Government is involved in supporting workers and communities in the forest 
sector, in particular through various programmes (Table 4.11). At present, five federal programmes 
provide support to the  sector.  
Table 4.11 Federal support programmes for the forest sector, 2018  
Programme  Type of initiative  Organization  Funding  
Investments in Forest Industry 
Transformation Program (IFIT)  Support to the sector  Natural Resources Canada – 
Canadian Forest Service  CAD 190.4 million 
during 2010 -18 
Expanding Market Opportunities 
Program (EMO)  Support to the sector  Natural Resources Canada – 
Canadian Forest Service  CAD 45 million for 
3 years from 2017  
Forest Innovation Program (FIP)  Support to the sector  Natural Resources Canada - 
Canadian Forest Service  CAD 63 million for 
3 years from 2017  
Indigenous Forestry Initiative 
(IFI) Support to the sector  Natural Resources Canada – 
Canadian Forest Service  CAD 13 mil lion for 
3 years from 2017  
Green Construction through Wood 
(GCWood) Program  Support to the sector  Natural Resources Canada – 
Canadian Forest Service  CAD 39.8 million for 
4 years from 2018  
Source:  CCFM , Forest Sector Innovation in Canada, 2015 . Viewed at: 
https://www.ccfm.org/pdf/CCFM%20Innovation%20Compendium%20August%2017%20EN%202015.pdf  
and Natural Resources Canada online information. Viewed  at: https://www.nrcan.gc.ca/forests/federal -
programs/13123 .  
4.1.3   Fisheries35 
4.69.   Canada 's commercial fishing sector is comprised of three main economic activities: wild 
capture fisheries, aquac ulture, and fish processing. Fisheries landings during the review period 
increased from CAD 2.3 billion in 2013 to CAD billion 3.9 in 2017. Aquaculture production increased 
from CAD 964 million to CAD 1.4 billion in the same period. Canada is the world 's fourth -largest 
producer of farmed salmon.36  
                                                
33 "The State of C anada 's Forests, Annual Report 2018 ." Natural Resources Canada online information. 
Viewed at: http://cfs.nrcan.gc.ca/pubwarehouse/pdfs/39336.pdf .  
34 CCFM online information. Viewed at: http://cfs.nrcan.gc.ca/pubwarehouse/pdfs/37112.pdf , 
https://www.ccfm.org/pdf/National%20Forest%20Pest%20Strategy_Pest%20Risk%20Analysis%20Framework
_User%E2%80%99s%20Guide_EN.pdf , http://cfs.nrcan.gc.ca/pubwarehouse/pdfs/37108.pdf , and 
https://www.ccfm.org/pdf/Vision_EN.pdf .  
35 For Canada, this comprises wild capture, aquaculture, and fish processing.  
36 Canadian Council of Fisheries and Aquaculture Ministers (CCFAM) (2015), Aquaculture Development 
Strategy 2016 -19. Viewed at: http://www.dfo -mpo.gc.ca/aquaculture/collaboration/ccfam -eng.html . WT/TPR/S/389 • Canada  
 
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  4.70.   Bordered by three oceans (the Arctic, the Atlantic and the Pacific), and possessing inland 
lakes, Canada has vast fisheries resources. Fisheries ' contribution to total GDP was less than 1% in 
2016. The fishing sec tor remains an important source of employment, accounting for over 
76,000  jobs over the period.37 
4.71.   In 2017, commercially valuable fish species, such as lobster and salmon, represented almost 
half of the total landed value, though accounted for a relatively s mall proportion (about 15%) of 
total landed volume (Table 4.12). Between 2013 and 2017, growth in the landed value outpaced 
growth in the landed weight, mainly due to rising prices, led by a higher demand for these species. 
The domestic prices of lobster a nd salmon, for example, increased from CAD 9.11/kg in 2013 to 
CAD 15.00/kg in 2017, and from CAD 1.35/kg to CAD 3.59/kg, respectively.38 Similar patterns are 
also observed in the unit values of exports of the major species (Chart 4.4) in international marke ts. 
Table 4.12 Fisheries and aquaculture production in Canada, 2013 -17 
(Quantity in '000 metric tonnes, value in CAD million)  
    2013  2014  2015  2016  2017  
Total fisheries  Quantity  1,037     1,010      1,053      1,079  1,043  
  Value     3,276      3,574      4,228      4,723  5,274  
Freshwater  Quantity         28         27         28         30  29 
  Value         61         63         64         74  84 
Sea fisheriesa Quantity        838        850        838        848  822 
  Value     2,252      2,778      3,196      3,301    3,797  
  Crab, Queen  Quantity         98         96         94         83  92 
  Value        434        534        501        593  968 
  Lobster  Quantity         75         93         91         91  97 
  Value        680        942      1,179      1,296  1,462  
  Shrimp  Quantity        149        132        141        109  83 
  Value        344        404        589        445  340 
Aquaculturea Quantity        170        134        187   201 191 
  Value        964        733        967      1,347  1,392  
  Salmon  Quantity        100         79        122        124  121 
  Value        635        548        669      1,022  1,056  
  Trout  Quantity         7         7         7         10  9 
  Value         39         38         40         56  53 
a Major products according to landed value in 2017.  
Source:  Fisheries and Oceans Canada , Landings , January 2019 . Viewed at:  http://www.dfo -
mpo.gc.ca/stats/commercial/land -debarq -eng.htm .  
4.1.3.1   Trade performance  
4.72.   Canada 's exports of fish and seafood experienced strong growth during the review period, 
expanding  more rapidly in value terms than in volume, primarily due to rising prices (Table 4.12 and 
Chart 4.4). In 2017, the value of exported fish and seafood products rose 56% to CAD 6.9 billion, 
up 2.5 billion from 2013, whereas the volume of fish and seafood i ncreased 5% to 620 million kg 
over the same period. Highly -valued Canadian seafood in international markets drove up the price 
for premium species, particularly in expanding Asian markets. In 2016, Canada ranked 8th among 
the world 's major fish exporters.39  
4.73.   Canada 's fisheries exports are concentrated in terms of their destination: in 2017, the 
United  States remained the biggest market for Canada 's exports, accounting for 62.7% of the total, 
followed by China (13.9%), and the European Union (7.3%). Lobster a ccounted for the largest share 
(31.0%) of exports in value terms, followed by Atlantic salmon (13.2%) and snow/queen crab 
(14.7%). Imports of fish and fish products have been gradually increasing, from CAD 3.0 billion in 
2013 to CAD 3.9 billion in 2017. Th e major sources of imports of fish and fish products were the 
United  States, China, and Thailand, which accounted for 34.2%, 14.4%, and 9.1% of the total, 
respectively, in 2017. Imported species mainly included prawns/shrimp and lobster.  
                                                
37 Information provided by the authorities.  
38 WTO Secretariat estim ates, based on data from Fisheries and Oceans Canada online information. 
Viewed at: http://www.dfo -mpo.gc.ca/stats/stats -eng.htm .  
39 FAO (2018),  FAO Yearbook. Fishery and Aquaculture Statistics 2 016. Viewed at: 
www.fao.org/fishery/static/Yearbook/YB2016_USBcard/index.htm . WT/TPR/S/389 • Canada  
 
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  4.74.   Canada is a net e xporter of fish and fish products, and its trade surplus continued to grow 
during the review period. In 2017, Canada had a trade surplus of CAD 3.0 billion in fish and fish 
products, with exports of CAD 6.9 billion, and imports of CAD 3.9 billion. Between 2013 and 2017, 
the trade surplus doubled, increasing by CAD 1.6 billion (Chart 4.4).  
4.75.   Aquaculture in Canada comprises some 45 different species of finfish, shellfish and marine 
algae. Production is concentrated on five high -volume species: Atlantic salmon,  rainbow trout, blue 
mussels, oysters, and clams, with Atlantic salmon accounting for most of the aquaculture exports.  
Chart 4.4 Canada 's production and trade of fish and fishery products, 2013 -17 
 
Source:  Information provided by the authorities.  
4.1.3.2   Law, regulations, and policies  
4.76.   The Department of Fisheries and Oceans (DFO, or Fisheries and Oceans Canada) is the federal 
department responsible for formulating and enforcing rules and regulations, as well as gover ning 
the conservation and management of fishery resources in Canadian waters. The DFO is the sole 
authority responsible for managing fisheries in Canada 's coastal and tidal areas with major fish 
stocks, with some exceptions. It shares responsibility for th e management of inland fisheries and 
aquaculture with Canada 's provinces.  
01,0002,0003,0004,0005,0006,000
2013 2014 2015 2016 2017Freshwater Seafisheries Aquaculture
Volume 
(left-bar)Value 
(right -bar)('000 metric tonnes and CAD million)Chart 4. [Fish] Fisheries and aquaculture prodcution in 2013 -17
Source:-6,000-4,000-2,00002,0004,0006,0008,000
2013 2014 2015 2016 2017Exports Imports
Trade balance(CAD million)
Trade balanceProduction
0.05.010.015.020.025.030.035.0
2013 2014 2015 2016 2017Unit value of exports for major 
exported species
Information provided by the authorities.(CAD /kg)
Lobster Crab Scallop Shrimp, 
prawnAtlantic 
salmonSnow/
queen 
crab01,0002,0003,0004,0005,0006,0007,0008,000
0100200300400500600700
2013 2014 2015 2016 2017Volume Value('000 tonne ) (CAD million)
Exports WT/TPR/S/389 • Canada  
 
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  4.77.   The principal legal framework for fisheries is the Fisheries Act .40 The Fisheries Act governs the 
management of fisheries resources in Canada, along with other legal acts (Table 4.13 ). A review of 
the 2012 amendments to the Fisheries Act has been under way since 2016. As a result, on 
6 February  2018, the Government of Canada introduced a bill in Parliament (Bill C -68) proposing 
amendments to the Fisheries Act.41 The proposed amendments  include: re -establishing protection 
for all fish and fish habitat (i.e. the 2012 amendments only focused on the protection of fish that 
are part of a commercial, recreational or Aboriginal fishery); and incorporating modern safeguards 
(e.g. a prohibition on fishing for cetaceans, legal requirements related to rebuilding fish stocks, and 
requirements to publicly release information on project decisions) in order to ensure the long -term 
sustainability of marine resources.42 As at January 2019, Bill C -68 was b efore the Senate.  
Table 4.13 Main fisheries laws  
Title Description  
Fisheries Act  
(R.S.C., 1985, c. F -14) Management of fisheries resources in Canadian waters. The Act 
provides broad powers to the Minister for the management, 
conservation, and protection of fish resources, through licences or 
leases and the allocation of fisheries.  
Department of Fisheries an d Oceans 
Act  
(R.S.C., 1985, c. F -15) Establishes the powers, duties and functions of the Minister of 
Fisheries and Oceans related to: seacoast and inland fisheries; 
fishing and marine sciences; and the coordination of the policies 
and programmes of the Go vernment of Canada.  
Coastal Fisheries Protection Act  
(R.S.C., 1985, c. C -33) Provides a legal framework for regulating access of foreign fishing 
vessels to Canadian fisheries waters.  
Oceans Act (S.C. 1996, c. 31)  Provides for the development and impleme ntation of an ocean 
management strategy.  
Species at Risk Act (S.C. 2002, c. 29)  Provides legal protection for species considered at risk of 
extinction.  
Source:  Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -mpo.gc.ca/acts -
lois/acts -lois-eng.htm . 
4.78.   The Fisheries Act (R.S.C., 1985, c. F -14), supplemented by the Fishery (General) Regulations, 
(SOR/93 -53), deals with several instrumen ts to manage fisheries.43 The Total Allowable Catch 
system (TAC) is the main resource management measure to set catch limits for each species of 
commercial fish stocks.44 Other common measures include: licence requirements for access to 
commercial fisheries;  gear limitations; and other technical measures related to the size, age and 
sex of fish allowed for landing, and to fishing activities ' areas and times (e.g. seasonal closures).  
4.79.   The DFO also manages fisheries through programmes and initiatives, enforceme nt activities, 
management plans, policies and frameworks, and integrated fisheries management plans (on a 
multi-year basis) for key fisheries, informed by scientific advice from the Canadian Science Advisory 
Secretariat (CSAS) process, and consultations wi th fisheries stakeholders.45 The integrated fisheries 
management plans are used to: guide the conservation and sustainable use of marine resources; 
support the management of sustainable fisheries; and combine science and Indigenous traditional 
knowledge on fish species with industry data, to determine best practices for harvest.46  
4.80.   To engage in most fisheries activities, it is necessary to obtain a licence. The National Online 
Licensing System is used by the DFO to issue commercial fishing licences nationally, and recreational 
fishing licences in Eastern Canada (Atlantic Canada and Quebec). The System is also used to issue 
fisher registration cards to fish harvesters, including crew members. Most standard licensing 
transactions are available through the online system. Logbook keeping is mandatory under the 
Fisheries Act. Fish harvesters are required to record information about fishing catch and effort, and 
                                                
40 Fisheries Act ( R.S.C., 1985, c. F-14), last amended on 5 April 2016.  
41 Bill C-68 - An Act to amend the Fisheries Act and other Acts in consequence , 6 February 2018. Viewed 
at: http://www.parl.ca/Conten t/Bills/421/Government/C -68/C-68_1/C -68_1.PDF . 
42 Fisheries and Oceans Canada online information . Viewed at: http://www.dfo -mpo.gc.ca/campa ign-
campagne/fisheries -act-loi-sur-les-peches/proposed -propose -eng.html . 
43 Fishery (General) Regulations  (SOR/93 -53), last amended on 30 May 2018.  
44 Fisheries an d Oceans Canada online information. Viewed at: http://www.dfo -mpo.gc.ca/reports -
rapports/regs/fish -allocation -finance -poisson -eng.htm . 
45 Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -mpo.gc.ca/csas -
sccs/index -eng.htm .  
46 Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -mpo.gc.ca/fm -
gp/peches -fisheries/ifmp -gmp/index -eng.htm . WT/TPR/S/389 • Canada  
 
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  submit this data as specified in the conditions of the licence. In accordance with the Fishery ( General) 
Regulations, for the proper management and control of fisheries and the conservation and protection 
of fish, the Minister may specify in a licence any condition that is not inconsistent with the 
Regulations, such as: (a) the species of fish and qu antities thereof that are permitted to be taken or 
transported; (b) the age, sex, stage of development or size of fish that are permitted to be taken or 
transported; (c) the waters in which fishing is permitted to be carried out; (d) the location from 
which, and to which, fish is permitted to be transported; (e) the vessel from which, and to which, 
fish is permitted to be transhipped; (f) the period during which fishing or transporting fish is 
permitted to be carried out; (g) the vessel that is permitted to  be used, and the persons who are 
permitted to operate it; and (h) the type, size and quantity of fishing gear and equipment that is 
permitted to be used, and the manner in which it is permitted to be used.  
4.81.   Access for foreign fishing vessels in Canadian wa ters and ports is limited. They are required 
to obtain a licence to engage in activities such as: (i) engaging in commercial fishing; 
(ii) transhipping or taking on board any fish, outfit or supplies while at sea; (iii) processing fish at 
sea; (iv) transpo rting fish from fishing grounds; (v) provisioning, servicing, repairing or maintaining 
any other foreign fishing vessel while at sea; (vi) purchasing or obtaining bait, outfits or supplies at 
a Canadian port; (vii) effecting repairs at a Canadian port; (vi ii) purchasing, loading, unloading, 
transhipping, selling or processing fish or fish products at a Canadian port; (ix) unloading, landing, 
re-embarking or transhipping at a Canadian port any equipment of that vessel or of any other fishing 
vessel of the sa me flag state; (x) granting shore leave to the crew of that vessel at a Canadian port; 
and (xi) discharging or taking on board at a Canadian port a member of the crew of that vessel or 
of any other fishing vessel of the same flag state. Licences are grante d with certain limitations, 
including times and areas of fishing activities, the number of gear and equipment on board to be 
used for fishing, specific species and quantities allowed for fishing, as prescribed in the Coastal 
Fisheries Protection Act (CFPA)  and its Regulations.47 Moreover, fishing vessels must comply with 
requirements such as notification of entry to, and exit from, the fisheries waters; taking of observers 
on board; and boarding and inspection procedures.48 The Minister of Fisheries and Ocean s may 
suspend or cancel any licence or permit of vessels with the flag of any State that has unsatisfactory 
fisheries relations with Canada.  
4.82.   Canada manages fisheries in accordance with the Sustainable Fisheries Framework (SFF), 
which was adopted in 2009 a s one of policy instruments to the Fisheries Act. The SFF provides the 
basis of Canada 's precautionary and ecosystem approaches to fisheries management,49 by ensuring  
that Canadian fishing activities are conducted in a manner that supports conservation and 
sustainable use. Under the SFF, Canada implements fisheries management policies, which include: 
the Policy on New Fisheries for Forage Species; the Guidance on Implementation of the Policy on 
Managing Bycatch; the Policy for Managing the Impacts of Fishing  on Sensitive Benthic Areas; the 
Fishery Decision -Making Framework Incorporating the Precautionary Approach; the Ecological Risk 
Assessment Framework for Coldwater Corals and Sponge Dominated Communities; the Guidance 
for the Development of Rebuilding Plan s under the Precautionary Approach Framework: Growing 
Stocks out of the Critical Zone; the Wild Salmon Policy (Pacific); and Canada 's Policy for the 
Conservation of Wild Atlantic Salmon.50 The DFO conducts an annual Sustainable Survey for Fisheries 
on 179 f ish stocks, to track the implementation of the SFF policies and report on the status of fish 
stocks.51  
                                                
47 Coastal Fisheries Protection Regulations (C.R.C., c. 413) , last amended on 13 April 2017, Section 5. 
Viewed at: https://laws -lois.justice.gc.ca/eng/Regulations/C.R.C.,_c._413/page -1.html#h -3. 
48 Coastal Fisheries Protection Regulations (C.R.C., c. 413) , last amended on 13 April 2017, Section 12. 
Viewed at: https://laws -lois.justice.gc.ca/eng/Regulations/C.R.C.,_c._413/page -1.html#h -3. 
49 The precautionary approach puts an emphasis on the use of precaution in any decisions about species 
in case o f minimal availability of scientific information and substantial risk of serious harm to a species or its 
ecosystem. In the case of ecosystem -based management, decisions about the management of a species and 
its ecosystem are based on the best scientific information available , taking into consideration not just a single 
fish species, but also other effects of all human activ ities and environmental factors.  
50 Fisheries and Oceans Canada. Viewed at: http://www.dfo -mpo.gc.ca/reports -rapports/regs/sff -
cpd/overview -cadre -eng.htm . 
51 Fisheries and Oceans Canada. Viewed at: http://www.dfo -mpo.gc.ca/reports -rapports/regs/sff -
cpd/survey -sondage/index -en.html . WT/TPR/S/389 • Canada  
 
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  4.83.   The 2009 Fishery Decision -Making Framework Incorporating the Precautionary Approach 
guides how Canada applies the precautionary approach to decisions to set and manage the allowable 
catch in a fishery. This policy is applied to key harvested fish stocks managed by the DFO; that is, 
the fish stocks that are the specific and intended targets of a commercial, recreational, or subsistence 
fishery, although it may be applied to other stocks, if the circumstances warrant it. The Framework 
requires that a harvest strategy be incorporated into fisheries management plans to keep the 
removal rate moderate when the stock status is healthy, to promote rebuilding when s tock status is 
low, and to ensure a low risk of serious or irreversible harm to the stock. It also requires a rebuilding 
plan when a stock reaches low levels. The harvest strategy identifies three stock status zones: 
healthy, cautious, and critical, in acc ordance with upper stock and limit reference points. The 
strategy then sets the removal rate at which fish may be harvested within each stock status zone 
and adjusts the removal rate according to fish stock status variations. The upper stock reference 
point marks the boundary between the healthy and cautious zones; when the fish stock is under this 
point, the removal rate is progressively reduced. The limit reference point marks the boundary 
between the cautious and critical zones; if a fish stock level is below this point, serious harm to the 
stock may occur. The removal reference establishes the maximum removal rate of fish stocks in 
each of the zones.52 
4.84.   Federally, the aquaculture sector is regulated mainly under the  Fisheries Act, along with 
several regula tions (e.g. the Health of Animals Act, and the Food and Drugs Act). Most provinces 
also have aquaculture -specific legislation and regulations .53 A valid lease and licence are required 
for every aquaculture site. The subsector is divided into three main regu latory regimes: (i) in British 
Columbia, the DFO issues the licence and monitors licence conditions, under the Pacific Aquaculture 
Regulations, whereas the province is responsible for issuing leases, tenures and permits of 
occupation for aquaculture sites;  (ii) in Prince Edward Island, an Aquaculture Leasing Management 
Board, composed of the DFO, the province, and industry, is responsible for issuing a lease contract 
as well as a licence; and (iii) in all other provinces and territories, provincial authorit ies issue both 
the lease and the licence.54 
4.85.   The Sustainable Aquaculture Programme (SAP), initially launched for the 2008 -13 period and 
subsequently renewed for the 2013 -18 period, placed emphasis on regulatory reform 
(i.e. streamlining regulations and polic ies, and improving regulatory management), regulatory 
science (i.e. increasing scientific knowledge and science -based decision -making through science and 
research activities), and transparency (i.e. public reporting on the environmental and economic 
perfor mance of Canada 's aquaculture sector).55 The SAP was renewed for the 2018 –20 period. As 
part of the SAP 's aquaculture regulatory reform, the DFO amended the Pacific Aquaculture 
Regulations56 in May 2015 and introduced the Aquaculture Activities Regulations ( AAR)57, also under 
the Fisheries Act, which came into force in June 2015. The amendments to the Pacific Aquaculture 
Regulations, which apply to aquaculture activities in British Columbia, relate to licences and fees. 
The AAR specify, inter alia,  conditions under which aquaculture operators may install, operate, 
maintain or remove aquaculture facilities, or undertake measures to treat their fish for disease and 
parasites, as well as deposit organic matter. The AAR require aquaculture owners and operators to 
submit annual reports on their activities to the appropriate Regional Aquaculture Management Office 
no later than 1 April of the year following the year being reported.  
4.86.   The Canadian Council of Fisheries and Aquaculture Ministers (CCFAM), which includes fed eral, 
provincial and territorial ministers, has worked since 1999 to identify and resolve harmonization 
issues with respect to aquaculture. It launched an Aquaculture Development Strategy in June 2016, 
which sets out a collaborative three -year strategy (20 16-19) to support an improved federal -
provincial -territorial regulatory framework, to enhance the coordination of aquaculture fish health 
management, and to promote regional economic growth, in particular for rural and coastal 
                                                
52 Fisheries and Oceans Canada. A fishery decision -making framework incorporating the precautionary 
approach . Viewed at: http://www.dfo -mpo.gc.ca/reports -rapports/regs/sff -cpd/precaution -eng.htm . 
53 Fisheries and Oceans Canada  online information . Viewed at: http://www.dfo -
mpo.gc.ca/aquaculture/management -gestion/regs -eng.htm . 
54 Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -
mpo.gc.ca/aquaculture/management -gestion/regs -eng.htm . 
55 Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -
mpo.gc.ca/aquaculture/programs -programmes/sustainable -durable/renewed -renouvele -eng.htm . 
56 Pacific Aquaculture Regulations  (SOR/2010 -270), last amended 1 May 2015.  
57 Aquaculture Activities Regulations (SOR/2015 -177). WT/TPR/S/389 • Canada  
 
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  communities.58 In December 201 8, the CCFAM approved extending the work under this Strategy to 
2022.  
4.1.3.3   Market access and import requirements  
4.87.   Tariff protection in the fisheries sector is relatively low, with an applied average MFN tariff of 
1.1%.59 Over 75% of total fishery tariff lines are  duty-free; applied MFN rates range from zero to 
11%.60 Many trading partners under FTAs enjoy duty -free treatment. No tariff quotas are applied to 
fish and fishery products.  
4.88.   A Safe Food for Canadians (SFC) licence and an aquatic animal health import permi t from the 
Canadian Food Inspection Agency are required prior to import ing fish into Canada, in accordance 
with the  Safe Food for Canadians Act (SFCA) and its Regulations, and the Health of Animals Act  
(HAA) and its Regulations.  The SFC licence is valid fo r two years and is subject to a fee of CAD 250. 
In addition to obtaining a SFC licence, importers that are importing live or raw molluscan shellfish 
must import from an authorized country of harvest that has been approved to export to Canada. To 
be issued an SFC licence, importers are required to develop and implement a preventive control plan 
(PCP); the PCP must include a procedure for recall and complaints, and traceability records. 
Importers must maintain PCP records and sample their imported products to  verify the effectiveness 
of their PCP. All imports of fish and fish products are subject to a risk -based approach to product 
inspection and sampling. The inspection approach focuses on verifying and monitoring the 
effectiveness of the preventive controls applied by importers and addressing non -compliance issues. 
Import prohibitions apply to live freshwater pufferfish and Chinese mitten crab.61  
4.89.   Under the Health of Animals Act  and the Health of Animals Regulations  all aquatic animals 
(defined as finfish, molluscs and crustaceans) must be declared upon entry into Canada as per 
Section 194 of the Health of Animals Regulations. For importation of aquatic animals (finfish, 
molluscs and crustaceans) and their products t hat are susceptible to the diseases of concern 
regulated by the CFIA, an Aquatic Animal Health Import Permit and, when required, a Zoosanitary 
Export Certificate, are necessary.62 Imports are allowed only from countries which have negotiated 
export market a ccess with Canada and comply with the negotiated animal health conditions. Import 
requirements apply to 24 different end -uses, including fish and seafood imported for the end -uses 
of food service retail use, further processing for human consumption, and aq uaculture.63 Import 
permits are not required for live or dead animals not considered susceptible to diseases of concern, 
or for products which are considered safe in accordance with international standards of the OIE, or 
as a result of a CFIA risk assessmen t.  
4.90.   The Canadian Freshwater Fish Marketing Corporation (FFMC), a state -trading enterprise 
established under the Freshwater Fish Marketing Act, has the exclusive right to market and trade 
freshwater fish in interprovincial and export markets.64 The FFMC was established pursuant to 
bilateral agreements between the Government of Canada and the governments of Alberta, 
Saskatchewan, Manitoba, Ontario, and the Northwest Territories, and its exclusive right in the 
inter-provincial and export trade to market and trade in fish and fish products from freshwater 
commercial fisheries is limited to those provinces and territories. The agreement with Ontario 
covered only production from an area of north -western Ontario, bordering the province of Manitoba. 
Ontario (effective 30 March 2010) and Saskatchewan (effective 1 April 2012) left the FFMC 
arrangement and deregulated their commercial freshwater fish markets.65 Manitoba withdrew from 
                                                
58 Fisheries and Oceans Canada, Canadian Council of Fisheries and Aquaculture Ministers  (2016), 
Aquaculture Development Strategy 2016 -2019. 
59 Fish and fish products refer to HS 03, HS 0508, HS 051191, HS 150410, HS 150420, HS1603 -05, and 
HS 230120.  
60 An appli ed MFN rate of 11% is applied to p repared fish meals (HS 16042010) . 
61 Canadian Food Inspection Agency online information. Viewed at: 
http://inspection.gc.ca/food/information -for-consumers/travellers/what -can-i-bring-into-canada -
/eng/1389648337546/1389648516990 .  
62 Canadian Food Inspection Agency online information. Viewed at:  
http://www.inspection.gc.ca/animals/aquatic -animals/diseases/susceptible -
species/eng/1327162574928/1327162766981 . 
63 Canadian Food Inspection Agency online information.  Viewed at:  
http://www.inspection.gc.ca/plants/imports/airs/eng/1300127512994/1300127627409 . 
64 WTO documents G/STR/N/12/CAN, and G/STR/N/13/CAN, 6 August 2010.  
65 WTO document G/STR/N/1 4/CAN, 6 July 2012. WT/TPR/S/389 • Canada  
 
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  the FFMC on 1  December 2017,66 and Alberta withdrew from the FFMC with the c losure of its 
commercial fisheries in 2014, leaving, in practice, the Northwest Territories as the sole remaining 
jurisdiction.67 The FFMC is required by law to operate on a self -sustaining basis. The corporation has 
no exclusive rights or privileges on imp orts.  
4.1.3.4   Domestic support  
4.91.   Canada has a number of fisheries programmes at the federal level, with all support provided 
through budgetary measures. According to the OECD, total government financial transfers to the 
marine capture fisheries sector in Canada wer e CAD 905 million in 2016 (up from CAD 701 million 
in 2013) (Table 4.14). The major single element of financial support was the Employment Insurance 
Program for Fishers, which totalled CAD 299 million in 2016, and represented the equivalent of about 
32% of  total budgetary support to fisheries. Some 28% of total budgetary support was directed to 
the Small Craft Harbour Program.68 Among the various management programmes, the Integrated 
Fisheries Management programme was the main financial support recipient in 2016. Total support 
to fisheries accounted for about 19% of the total landed value.  
Table 4.14 Budgetary support to fisheries in Canada 2013 -16 
(CAD million)   
2013  2014  2015  2016  
Fisheries support estimate - total 700.6  696.6  826.6  905.2  
Transfers to individual fishers - budgetary  247.9  255.6  272.3  298.6  
  Employment insurance benefits for fishers  247.9  255.6  272.3  298.6  
General service support estimate  494.6  483.2  598.3  646.7  
   Small Craft Harbour Program  96.0 101.2  216.0  255.7  
   Agri-Marketing Program  1.7 0.5 2.2 2.5 
   Management of resources  396.9  381.5  380.2  388.5  
     Management expenditures  274.2  262.7  263.6  269.8  
        Aboriginal strategies and governance  81.5 86.6 84.4 80.5 
        Aquatic animal health  5.4 5.0 5.1 6.2 
        Fisheries protection  48.7 40.5 44.0 44.6 
        Genomics and biotechnology  3.0 3.1 3.4 3.0 
        Integrated Fisheries Management  125.3  116.6  116.4  124.6  
        International engagement  10.2 10.9 10.4 11.0 
     Stock enhancement programmes  27.8 27.4 27.0 27.5 
        Salmonid enhancement programme  27.8 27.4 27.0 27.5 
     Enforcement expenditures  94.9 91.4 89.6 91.1 
Cost recovery charges  -41.9 -42.2 -44.0 -40.1 
   Cost recovery charges, for resource access rights  -40.6 -41.2 -43.0 -38.9 
     Licence fees  -38.7 -38.5 -39.5 -34.9 
     Vessel and fishermen registration  -1.9 -2.7 -3.5 -3.9 
   Cost recovery charges, for infrastructure access  -1.3 -0.9 -1.1 -1.2 
   Small Craft Harbour Program - fees -1.3 -0.9 -1.1 -1.2 
Source:  OECD Fisheries Support Estimate database. Viewed at: 
https://stats.oecd.org/Index.aspx?datasetcode=FISH_FS E. 
4.92.   Canada also manages six fisheries funds, which are jointly coordinated by the federal, 
provincial and territorial governments. Three are new programmes (see below) that have recently 
become available, and three are long -standing programmes, i.e. the Abo riginal Fisheries Strategy 
Allocation Transfer Program (ATP), the Atlantic Integrated Commercial Fisheries Initiative (AICFI), 
and the Pacific Integrated Commercial Fisheries Initiative (PICFI) (Table A3.2). The Atlantic Fisheries 
Fund has been available s ince August 2018 to support projects with an emphasis on innovation, 
infrastructure and science partnerships in Newfoundland and Labrador, Nova Scotia, New Brunswick, 
and Prince Edward Island.69 The Canadian Fish and Seafood Opportunities Fund is a new cost -shared 
fund (70% federal and 30% provincial/territorial) to promote market access and development for 
                                                
66 WTO document G/STR/N/17/CAN, 13 July 2018.  
67 Alberta suspended all commercial fishing in 2015, and focused its activities on sport fishing, resulting 
in no deliveries. Fisheries and Oceans Canada, Engagement Re port - November 2017 . Viewed at: 
http://www.dfo -mpo.gc.ca/fm -gp/peches -fisheries/comm/ffmc -cpea/FFMC -engagement -CPEA-eng.htm . 
68 Small Craft Harbours  is a national programme to provide the commercial fishing industry with safe 
and accessible facilities  (through harbour maintenance, and divestiture).  
69 Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -mpo.gc.ca/fm -
gp/initiatives/fish -fund-atlantic -fonds -peche/index -eng.html . WT/TPR/S/389 • Canada  
 
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  the fish and seafood industry.70 The Fisheries and Aquaculture Clean Technology Adoption Program 
is a national funding programme, investing CAD 20 million  during the period of 2017 -21, to improve 
environmental performance in the fisheries sector.71 The Program provides funding for up to 75% of 
an eligible project 's costs. At provincial level, a fuel tax rebate may be available for gasoline 
consumed in, or by , fishing, for example, in Newfoundland and Labrador.72  
4.1.3.5   International arrangements  
4.93.   Canada is party to several international agreements on fisheries, and has engaged in joint 
management of fisheries resources, including by sharing knowledge and best practic es, and by 
providing science advice through scientific peer -review processes, with international partners 
including the United Nations Food and Agriculture Organization (FAO) and the Organisation for 
Economic Co -operation and Development  (OECD), as well as  Regional Fisheries Management 
Organizations (RFMOs) such as the Northwest Atlantic Fisheries Organization (NAFO) and the Inter -
American Tropical Tuna Commission (IATTC).73 Most RFMOs have developed management strategies 
in their specific areas (e.g. the No rth Atlantic Ocean for the NAFO) to set TACs, technical measures, 
and monitoring/control obligations for high seas fisheries resources and highly migratory fish stocks.  
4.94.   Canada continues to cooperate with international partners to fight illegal, unreported, and 
unregulated (IUU) fishing worldwide. As noted in the previous Review, in November 2010, Canada 
signed the Port State Measures Agreement (PSMA), which is the first binding international agreement 
to specifically target IUU fishing.74 The PSMA  sets measures to prevent vessels engaged in IUU 
fishing from using ports and landing their catches. Canada has yet to ratify the PSMA and continues 
to work toward ratification. As part of the ratification process, and in order to meet its commitments 
under the PSMA, amendment to the Coastal Fisheries Protection Act (CFPA) and related regulations 
are currently being updated.75 Canada is also a contracting party to six RMFOs76, and actively 
engages in combating illegal fishing activities. The DFO is responsible for the administration of 
Canada 's Catch Certification Program77, which provides a catch certification for fish exports to the 
European Union, attesting that fish and fish products originate from legal fisheries. The Program 's 
scope was expanded  to include certification schemes for Chile, Japan, and Ukraine.78   
4.95.   Besides IUU fishing, on 3 October 2018, Canada and nine other countries79 signed an 
Agreement to Prevent Unregulated Commercial Fishing on the High Seas in the Central Arctic Ocean. 
This pr ohibits commercial fishing in the high seas of the Central Arctic Ocean for at least 16 years.80 
As part of the Agreement, there will be a joint scientific research and monitoring programme, 
including data sharing, to improve understanding of the area 's eco systems, and determine 
conservation and management measures for fish stocks. The Agreement will enter into force once 
all ten Parties have ratified it. Moreover, although they are non -binding agreements, Canada has 
signed several Memoranda of Understanding  (MOUs) with other countries, including China, Norway, 
                                                
70 Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -mpo.gc.ca/fm -
gp/initiatives/opportunities -fund-fonds -initiatives/index -eng.html .  
71 Fisheries and Oceans Canada online information on http://www.dfo -mpo.gc.ca/aquaculture/business -
entreprises/factap -patppa -eng.htm . 
72 The Government of Newfoundland and Labrador  online information. Viewed at:  
https://www.fin.gov.nl.ca/fin/tax_programs_incentives/business/gasolinetax.html . 
73 Other RMFOs include the International Commission for the Conservation of Atlantic  Tunas (ICCAT); 
the North Atlantic Salmon Conservation Organization (NASCO); the North Pacific Anadromous Fish Commission 
(NPAFC); and the Western and Central Pacific Fisheries Commission (WCPFC) . 
74 FAO Agreement on Port State Measures to Prevent, Deter an d Eliminate Illegal, Unreported a nd 
Unregulated Fishing , adopted in 2009.  
75 Fisheries and Oceans Canada online information. Viewed at: http://www.dfo -
mpo.gc.ca/international/isu -iuu-09a-eng.htm . 
76 Fisheries and Oceans Canada o nline information . Viewed at: http://www.dfo -
mpo.gc.ca/international/dip -rfmo-eng.htm .  
77 The programme was created in response to the E uropean Union's IUU fishing regulation implemented 
on 1 January 2010 . 
78 Fisheries and Oceans Canada o nline information . Viewed at:  http://www.dfo -mpo.gc.ca/fm -gp/ccp -
pcc/export/catch -country -pays-captures -eng.html . 
79 China, Denmark (in respect of Greenland and the Faroe Islands), the European Union, Iceland, Japan, 
the Russian Federation, Norway, Republic of Korea, and the United Stat es. 
80 Government of Canada. Viewed at: https://www.canada.ca/en/fis heries -
oceans/news/2018/10/canada -signs-international -agreement -to-prevent -unregulated -fishing -in-the-high-seas-
of-the-central -arctic -ocean.html . WT/TPR/S/389 • Canada  
 
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  Portugal, the Russian Federation, and Spain, as well as agreements for increased bilateral 
cooperation in the areas of fisheries management and science research conducive to better 
international fisher y and ocean governance.81  
4.96.   With respect to aquaculture, Canada has continuously cooperated with international 
organizations, such as the FAO and the OECD, as well as with partner countries, such as the 
United  States, to strengthen the existing mechanism to foster sustainable aquaculture development. 
Among several ongoing programmes with other partners, and as part of commitments under the 
Canada -United States Regulatory Cooperation Council Joint Forward Plan in August 201482, Canada 
and the United States esta blished a partnership to deepen their collaboration and advance regulatory 
cooperation for the aquaculture sector, through technical collaboration, the sharing of effective 
regulatory practices and standards, joint studies, and annual meetings.  
4.2  Mining and  Energy  
4.2.1   Overview  
4.97.   Canada accounts for a large share of the world 's proven oil and gas reserves, and significant 
mineral wealth; and the mining and energy sectors are particularly important to the economy. The 
minerals sector contributed approximately 19.5% to total goods exports in 2017. The energy sector 
contributed approximately 22.5% to total goods exports in the same year83, as well as to many 
(e.g. pipeline and environmental services) inputs into the sector and the mining value chain. 
Together, the two s ectors accounted for 42% of total exports.84  
4.98.   Sectoral policy is particularly complex, as it involves economic, environmental and social 
considerations. Indeed, m any resource development and extractive projects are located in – or near 
– Indigenous communit ies, with which the Government of Canada has a legal duty to consult when 
their rights may be affected by a proposed resource project. Canada is in the process of putting in 
place better rules for the governance of such projects and creating a modern energ y regulator. This 
new approach will provide investors and companies certainty that good projects can move forward, 
while also ensuring inclusive engagement in review processes and that the environment is protected. 
As a key element of this endeavour, in Ju ne 2018, Bill C -69 was passed in the House of Commons, 
with amendments following feedback from Indigenous peoples, industry stakeholders, and the 
broader public. Canada will continue this engagement as the proposed legislation makes its way 
through the Par liamentary process.  
4.99.   In Canada, about 80% of greenhouse gas emissions come from energy.85 As Canada is a Party 
to the United Nations Framework Convention on Climate Change, both the federal and provincial 
governments have set targets for GHG emissions reduct ions, and have implemented plans for the 
energy sector, and particularly for the oil and gas sector.86 Improvements are being broadly 
implemented across the sector. For example, oil sand emissions per barrel decreased 29% from 
2000 to 2016. In spring 2017, the Minister of Natural Resources launched the Generation Energy 
initiative, a national dialogue from which emerged that Canada 's energy future is one where energy 
efficiency is enhanced, innovation in clean power is fostered, renewables are adopted, oil a nd gas is 
cleaner, and communities, including those of Indigenous peoples, are supported. The Government 
of Canada is acting on this advice and is working with provinces and territories to enhance and 
                                                
81 Fisheries and Oceans Canada online information. Viewed: http://www.dfo -
mpo.gc.ca/international/dip -mou-eng.htm . 
82 Government of Canada. Viewed at: https://www.canada.ca/en/treasury -board -
secretariat/corporate/transparency/acts -regulations/canada -us-regulatory -cooperation -council/joint -forward -
plan-august -2014.htm l. 
83 Natural Resources Canada (NRcan) online information. Viewed at: 
https://www.nrcan.gc.ca/energy/facts/energy -economy/20062 . 
84 Energy exports were CAD 112.6 billion in 2017, and  minerals an d metals domestic exports were 
CAD 97.5 billion.  Viewe d at: 
https://www.ic.gc.ca/app/scr/tdst/tdo/crtr.html?timePeriod=5%7CComplete+Years&reportType=DE&searchTy
pe=All&productType=NAICS&currency=CDN&countryList=ALL&runReport=true&grouped=GROUPED&toFromCo
untry=CDN&naArea=9 999. 
85 Natural Resources Canada (NRcan) online information. Viewed at: 
https://www.nrcan.gc.ca/energy/facts/energy -ghgs/20063#L1 . 
86 IEA (2015), Energy Policies of IEA Countries - Report on Canada . Viewed at: 
http://www.iea.org/publications/freepublications/publication/EnergyPoliciesofIEACountriesCanada2015Revie w.
pdf. WT/TPR/S/389 • Canada  
 
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  develop clean growth strategies. For instance, a  recent  Environmental Performance Review of 
Canada in 2017 touches on mining in its analysis of energy efficiency and natural resource 
management.87 The mining industry has committed to practices and standards to ensure the safe 
and sustainable development of the mineral resources. Serious environmental incidents at operating 
mines are rare. The construction, operation, closure, and reclamation of mines are subject to strict 
provincial and territorial regulatory requirements, along with federal requirements, relate d to fish 
and fish habitat protection, wildlife and wildlife habitat protection, uranium mines, and the control 
of metal mine effluents. The Mining Association of Canada 's Towards Sustainable Mining initiative 
has been adopted by a number of countries arou nd the world.  
4.100.   Increased U.S. production of oil and gas from shale formations drove down prices, and 
reduced U.S. requirements for imports of natural gas. The authorities indicated that the consumption 
of Western Canadian natural gas by the Central Canadian  markets of Ontario and Quebec was 
displaced, to some extent, by cheaper U.S. imports from the nearby Marcellus shale gas basin. Lower 
natural gas prices were followed by the fall in world oil prices, reducing revenues and royalties in 
the upstream sector.  As a result, some greenfield projects were delayed or cancelled, and drilling 
activity declined since 2015.88 Despite these challenges, Canada saw significant positive activity in 
its oil and gas sector in 2018. For example, Canada received final investmen t decisions with LNG 
Canada, which will enable access to higher global natural gas prices. Imperial 's Aspen oil sands 
project was also secured. Further, low prices for natural gas and natural gas liquids (e.g. propane 
and ethane) created additional opportu nities for the export of natural gas liquids outside of North 
America, as well as for additional petrochemicals production in Canada.  
4.101.   Mining companies faced lower prices since a cyclical peak in 2011, largely due to oversupply 
in global markets. However, the authorities are confident that continued global economic growth will 
generate new investment opportunities. As at August 2018, 108 major mining -related projects 
(e.g. mine constructions, redevelopments, expansions, and processing facilities) were in 
construction or planned to begin construction in the next ten years, representing CAD 72 billion in 
potential investment.89  
4.2.2   Institutional and legal framework  
4.102.   Under the Constitution, the provinces have ownership over those natural resources 
(including electri city) that lie within their boundaries and, thus, regulatory oversight rests primarily 
within their jurisdiction, including with respect to the lease of mining rights for exploration, local 
distribution, storage, and royalty regimes. The Federal Government  has jurisdiction over: imports 
and exports; international and inter -provincial pipelines and electric power lines; uranium and 
nuclear power; and (with exceptions) ownership and administration of mineral and energy resources 
in northern territories and of fshore.  
4.103.   The main institutions that participate in the sector are:  
• Natural Resources Canada (NRCan), the federal ministry mandated to ensure the 
sustainable development and competitiveness of Canada 's natural resources, including 
pipelines, energy developm ent, and trade.90 The Major Projects Management Office 
(MPMO) functions within NRCan since 2007, and acts, inter alia, as a single window into 
the federal regulatory system for major resource projects91; 
                                                
87 OECD (2017), OECD Environmental Performance Reviews: Canada 2017 . Viewed at 
https://www.oecd -ilibrary.org/docserver/9789264279612 -
en.pdf?expires=1538384942&id=id&accname=ocid54015567&checksum=552BC1F21C2E5372A0AB7FB3C8829
433. 
88 Although it  is true that natural gas specific greenfield projects are being delayed , this is not 
necessaril y the case for all  natural gas drilling and production . For instance, drilling continues in specific liquid -
rich natural gas plays , to derive condensates. On the other hand, Petronas , a major natural g as reserve holder 
and producer, indicated that it is sh utting off a large portion of its natural gas wells be cause of poor market 
conditions. Viewed  at: https://energynow.ca/2018/12/lng -canada -partner -petronas -cuts-natural -gas-output -
due-to-plunging -prices/ . 
89 Natural Resources Canada (NRCan) online information. Viewed at: 
http://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/emmc/pdf/2018/en/major -projects -planned -or-Under -
Construction -2018-2028-eng.pdf . 
90 Natural Resources Canada (NRCan)  online information. Viewed  at: https://www.nrcan.gc.ca/home . 
91 MPMO online information. Viewed at: https://mpmo.gc.ca/home . WT/TPR/S/389 • Canada  
 
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  • the National Energy Board (NEB), an independent regula tory body created to oversee the 
international and inter -provincial aspects of the energy sector. The NEB conducts 
compliance activities, and may issue Administrative Monetary Penalties ranging from 
CAD 25,000 for individuals to a maximum of CAD 100,000 fo r companies, per day, per 
infraction92;  
• the Canadian  Environmental Assessment Agency;  
• Environment and Climate Change Canada;  
• the Canada -Newfoundland and Labrador Offshore Petroleum Board (C -NLOPB), which 
interprets and applies the provisions of the Atlant ic Accord and the Atlantic Accord 
Implementation Acts  to all activities of oil and gas operators in the Canada -Newfoundland 
and Labrador Offshore Area and oversees operator compliance with those statutory 
provisions.  
4.104.   The Government of Canada is proposing t o create the Canadian Energy Regulator (CER), a 
new federal energy regulator with the required independence and the proper accountability to 
oversee a strong, safe and sustainable Canadian energy sector in the 21st century. Legislation has 
been introduced in Parliament to this end (Bill C -69, An Act to enact the Impact Assessment Act and 
the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make 
consequential amendments to other Acts). The CER would be located in Calgary, and woul d replace 
the NEB. It is expected to introduce modern and effective governance; enhanced certainty and 
timelier decisions; strengthened safety and environmental protection; more inclusive engagement 
processes; and greater Indigenous participation.  
4.105.   Federal and provincial governments collaborate on energy and mining policy through fora 
such as the Energy and Mines Ministers process. Recently, they focused on energy efficiency, 
responsible oil and gas development, electricity reliability, energy access, and te chnology innovation. 
In July 2015, Canada 's Premiers adopted the Canadian Energy Strategy, updating the 2007 Shared 
Vision for Energy in Canada . The Strategy calls for this collaboration to address international climate 
change goals, and social and environ mental responsibility. Canada 's Mines Ministers announced the 
development of the Canadian Minerals and Metals Plan (CMMP) in March 2018. The CMMP aims to 
solidify Canada 's position as a global mining leader, and to lay the foundation for lasting success at  
home and abroad. In addition, on 7 December 2018, Canada 's First Ministers agreed to lead a 
discussion on the development of a framework for a clean electric future, including hydroelectricity, 
aimed at using clean, reliable and affordable electricity, an d to promote access to domestic and 
international markets. The specific content of this framework will be developed over the course of 
2019.93  
4.2.3   Trade policy developments  
4.106.   Trade policy for the mining and energy sectors remains largely unchanged since the prev ious 
TPR, excepting updated regulations to ban asbestos and products containing it which came into force 
on 30 December 2018.94 The Government of Canada is committed to market principles in both 
sectors, and intervenes mainly to achieve policy objectives it  considers the market will not meet on 
its own, such as energy efficiency, cleaner energy, health and safety, and science and technology. 
Both sectors are open to trade and to foreign investment, subject to the horizontal rules in the 
Investment Canada Act  (ICA) and other reservations, some of which are listed in Canada 's FTAs 
(Table 4.15). Several provincial reservations regarding investment remain in place. No new 
provisions on market access or national treatment regarding mining and energy have been agreed 
to within the CETA or the CPTPP.95 Chapter 25 of the CETA, Bilateral Dialogues and Cooperation, 
includes the establishment of the Bilateral Dialogue on Raw Materials, through which parties 
endeavour to establish and maintain effective cooperation on raw materials.  
                                                
92 NEB online information. Viewed at: https://www.neb -one.gc.ca/index -eng.html . 
93 IEA (2015). Energy Policies of IEA Countries – Canada 2015 . Viewed at: 
http://www.iea.org/publications/freepublications/publication/EnergyPoliciesofIEACountriesCanada2015Review .
pdf. 
94 WTO (2015). Trade Policy Review – Canada . Viewed at: 
https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/TPR/S314R1.pdf . 
95 Government of Canada online information. Viewed at: http://international.gc.ca/trade -
commerce/trade -agreements -accords -commerciaux/agr -acc/ceta -aecg/text -texte/toc -tdm.aspx?lang=eng . WT/TPR/S/389 • Canada  
 
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  4.107.   The CUSMA contains no new provisions related to mining and maintains obligations and 
provisions on trade in energy products and services, including in the areas of national treatment and 
market access, rules of origin, customs and trade fac ilitation, and cross -border trade in services and 
investment. However, it modernized the rules that govern North American energy trade. It contains 
an enforceable bilateral Canada -U.S. side letter on energy regulatory measures and regulatory 
transparency. The commitments of the letter will provide for enhanced regulatory transparency and 
cooperation in the North American energy sector and include disciplines with respect to access to 
electric transmission facilities and pipeline networks. The CUSMA also rem oves the "energy 
proportionality clause ", includes an annex on harmonizing energy -efficiency performance standards 
and test procedures, and resolves a technical issue related to diluents that had previously added 
unnecessary duties and other fees.  
Table 4.15 Reservations regarding energy and mining  
Specific sector  Provisions contained in trade agreements  
Electricity transmission  
SIC 4911 Electric power 
systems industry  The approval of the National Energy Bo ard (NEB) is required for the construction and operation 
of international electricity transmission lines.  
Oil and gas 
transportation  
SIC 461 Pipeline 
transport industry  The approval of the NEB is required for the construction and operation of all inter -provincial or 
international pipelines for the transmission of oil or gas. A public hearing must be held, and a 
certificate of public convenience and necessity issued where the pipeline in question is longer 
than 40km.  
Pipelines shorter than 40km may be aut horized by an order without a public hearing. All 
modifications to, and extensions of, pipelines must be approved by the NEB.  
All tolls for the transmission of oil and gas in NEB -regulated pipelines and all tariff matters must 
be filed with, or approved by , the NEB. A public hearing may be held to consider toll and tariff 
matters.  
Oil and gas  
SIC 071 Crude 
petroleum and natural 
gas industries; CPC 883 
Services incidental to 
mining*   Persons who hold oil and gas production licenses, or shares therein, for d iscoveries made after 
5 March 1982 must be Canadian citizens ordinarily resident in Canada, permanent residents or 
corporations incorporated in Canada.  
No production license may be issued for discoveries made after 5 March 1982 unless the 
Minister of Ener gy, Mines and Resources is satisfied that the Canadian ownership rate of the 
interest owner in relation to the production license on the date of issuance would not be less 
than 50%. "Interest -owner " is defined in the Canada Petroleum Resources Act to mean "the 
interest holder who owns an interest or the group of interest holders who hold all the shares of 
an interest ".  
The Canadian ownership requirements for oil and gas production licenses for discoveries made 
prior to 5 March 1982 are set out in the Canad a Oil and Gas Land Regulations.  
Oil and gas  
SIC 071 Crude 
petroleum and natural 
gas industries; CPC 883 
Services incidental to 
mining*   Under the Canada Oil and Gas Operations Act, the approval of the Minister of Energy, Mines and 
Resources of a "benefits  plan" is required to receive authorization to proceed with any oil and 
gas development project.  
A "benefits plan " is a plan for the employment of Canadians and for providing Canadian 
manufacturers, consultants, contractors and service companies with a ful l and fair opportunity 
to participate on a competitive basis in the supply of goods and services used in any proposed 
work or activity referred to in the benefits plan. The Act permits the Minister to impose an 
additional requirement on the applicant, as p art of the benefits plan, to ensure that 
disadvantaged individuals or groups have access to training and employment opportunities or 
can participate in the supply of goods and services used in any proposed work referred to in the 
benefits plan.  
The Canada -Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the 
Canada -Newfoundland Atlantic Accord Implementation Act have the same requirement for a 
benefits plan, but also require that the benefits plan ensure that:  
a. prior to carrying out any work or activity in the offshore area, the corporation or other body 
submitting the plan establish in the applicable province an office where appropriate levels of 
decision -making take place;  
b. expenditures be made for R&D to be carried out, and for e ducation and training to be 
provided, in the province; and  
c. first consideration be given to goods produced, or services provided from, within the 
province, where those goods or services are competitive in terms of fair market price, quality 
and delivery.  
d. The Boards administering the benefits plan under these Acts may also require that the plan 
include provisions to ensure that disadvantaged individuals or groups, or corporations owned, or 
cooperatives operated by them, participate in the supply of good s and services used in any 
proposed work or activity referred to in the plan.  
e. In addition, Canada may impose any requirement, or enforce any commitment or 
undertaking, for the transfer of technology, a production process or other proprietary 
knowledge t o a person of Canada in connection with the approval of development projects 
under the applicable Acts.  
f. Provisions similar to those set out above will be included in laws or regulations to implement 
the Yukon Oil and Gas Accord and Northwest Territories  Oil and Gas Accord which, for purposes 
of this reservation, shall be deemed, once concluded, to be existing measures.  WT/TPR/S/389 • Canada  
 
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  Specific sector  Provisions contained in trade agreements  
Oil and gas  
SIC 071 Crude 
petroleum and natural 
gas industries; CPC 883 
Services incidental to 
mining*   Investment: pursuant to the Hibe rnia Development Project Act, Canada and the "Hibernia 
Project Owners " may enter into agreements whereby the Project Owners undertake to perform 
certain work in Canada and Newfoundland, and to use their "best efforts " to achieve specific 
Canadian and Newfo undland "target levels " in relation to the provisions of any "benefit plan " 
required under the Canada -Newfoundland Atlantic Accord Implementation Act. "Benefits plans " 
are further described in the Schedule of Canada, Annex I, page I -C-20. In addition, Canada 
may impose, in connection with the Hibernia Project, any requirement, or enforce any 
commitment or undertaking, for the transfer of technology, a production process  or other 
proprietary knowledge to a national or enterprise in Canada.  
Uranium Industry 
classification  
SIC 0616 Uranium 
mines; CPC 883 
Services incidental to 
mining**   Ownership by "non-Canadians ", as defined in the ICA, of a uranium mining property is  limited 
to 49% at the stage of first production. Exceptions to this limit may be permitted if it can be 
established that the property is, in fact, "Canadian controlled ", as defined in the ICA. 
Exemptions from the policy are permitted, subject to approval of the Governor in Council, only 
in cases where Canadian participants in the ownership of the property cannot be found. No 
increase in non -Canadian ownership is permitted. In considering a request for an exemption 
from the policy, an investor from the Euro pean Union or a CPTPP -signatory country, Canada will 
not require that it be demonstrated that a Canadian partner cannot be found.  
Source:  Government of Canada online information. Viewed at: http://international.gc.ca/trade -
commerce/trade -agreements -accords -commerciaux/agr -acc/ceta -aecg/text -texte/A1 -
F.aspx?lang=eng . 
4.108.   In the GATS, Canada made commitments for services incidental to mining, including drilling 
and field services and rental of equipment with operator (CPC 883) and site preparation for mining 
(CPC 5115), tabling no market access and national treatment limitations for modes 1 -3, but leaving 
mode 4 unbound. N o horizontal national treatment limitations for modes 1 and 2 were included in 
the Schedule, other than: (a) tax measures that result in differences of treatment with respect to 
expenditures made on scientific research and experimental development services ; (b) Ontario: tax 
measures resulting in differences of treatment with respect to payments for management services 
made to affiliated non -residents. Also, foreign corporations carrying on business in Ontario must 
appoint an Ontario agent for service of leg al documents; (c) Alberta: first consideration may be 
given to service suppliers from within Alberta or Canada, where competitive in terms of price and 
quality, in the case of all large -scale energy projects needing Industrial Development, Forest 
Managemen t, Oil Sands, Power Plant or Gas Plant and Coal Development Permits; and 
(d) Newfoundland and Nova Scotia: regulations require that first consideration be given to services 
provided within the province to petroleum operations where they are competitive in terms of price, 
quality and delivery. No commitment was made with respect to electricity transmission or oil and 
gas transportation.  
4.109.   In general, according to an inventory by the OECD of export -restricting measures placed on 
66 metals and minerals by all ma jor exporters, Canada does not restrict exports of mining 
products.96 In particular, NAFTA prohibits the Federal Government from imposing any export volume 
restrictions, except for: the relief of a critical shortage of natural gas; domestic price stabilizat ion; 
the acquisition of products in short supply; and conservation measures in relation to restrictions on 
domestic production or consumption.  
4.110.   An MOU signed between Canada, the United States and Mexico in December 2014 provides 
for enhanced cooperation on energy data, including import and export data. It also provides for 
shared geospatial information related to energy infrastructure, and exchanges of information on 
projections of cross -border energy flows. It also aims at developing a cross -reference for t erminology 
commonly used in the energy sector, with a view to harmonizing terms, concepts and definitions for 
energy products and flows, and understanding their differences. In May 2015, the trilateral Climate 
Change and Energy Working Group was created, i nvolving the energy ministers of the United States, 
Canada and Mexico.  
4.111.   Government participation in the sector remains important. State -owned Crown corporations 
with international trade activity are prevalent, mainly in the provincial electricity markets. S everal 
provinces maintain price controls on fuel products. Local content policies (LCPs) are used in the 
sector. A recent case study of Canada by the OECD provides a comprehensive review of provincial 
and federal investment, employment, R&D, technological transfer, and other LCPs, including a 
discussion of the benefit evaluation embodied therein.97  
                                                
96 OECD, Database on export restrictions. Viewed at: http://www.compareyourcountry.org/trade -in-
raw-materials?cr=oecd&lg=en&page=0&visited=1# . 
97 OECD (2017 ), Local Content Policies in Minerals -Exporting Countries: The Case of Canada , Trade 
Policy Note. Viewed at: WT/TPR/S/389 • Canada  
 
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  4.112.   Since 2009, Canada has implemented a corporate social responsibility (CSR) strategy for 
extractive sector companies operating abroad. Updated in 2014 and to be r eviewed in 2019, it 
articulates the expectation that all Canadian firms operating abroad respect all applicable laws, 
operate transparently, consult with host governments, and implement internationally -recognized 
CSR best practices.98 These include the OECD  Guidelines for Multinational Enterprises, the UN 
Guiding Principles, the IFC 's Performance Standards on Social and Environmental Sustainability, and 
the voluntary principles on security and human rights.99 The four pillars of the strategy are: enabling 
the promotion of CSR guidelines; strengthening local capacity and training for responsible business 
and anti -corruption; fostering networks and partnerships to support responsible business; and 
voluntary mechanisms to help resolve disputes that may arise.  
4.113.   Since June 2015, the Extractive Sector Transparency Measures Act establishes mandatory 
reporting standards whereby extractive entities engaged in the commercial development of minerals, 
oil and natural gas, and either listed on a Canadian stock exchange or  having a place of business or 
assets in Canada, must report annually on payments of CAD 100,000 or more made to any 
government or government body in Canada or abroad.100 Voluntary dispute resolution mechanisms 
include Canada 's National Contact Point for the  OECD Guidelines for Multinational Enterprises (for 
all sectors), and the Canadian Ombudsperson for Responsible Enterprise position, announced in 
2018 (see below).101 
4.114.   On 17 January 2018, the Minister of International Trade announced two new initiatives to 
strengthen Canada 's approach to responsible business conduct for Canadian companies doing 
business and operating abroad. The first is the creation of an independent Canadian Ombudsperson 
for Responsible Enterprise (CORE) mandated to investigate allegations o f human rights abuses linked 
to Canadian corporate activity abroad. The CORE will seek to assist, wherever possible, in 
collaboratively resolving disputes or conflicts between impacted communities and Canadian 
companies. It will be empowered to independent ly investigate, report, recommend remedies, and 
monitor their implementation. The CORE 's scope will be multi -sectoral, initially focusing on the 
mining, oil and gas, and garment sectors, with the expectation to expand, within a year of the 
Ombudsperson tak ing office, to other business sectors. The second is the creation of a 
multi-stakeholder Advisory Body to advise the Government on responsible business conduct 
abroad.102 
4.2.4   Taxation  
4.115.   An overview of federal and provincial mining tax regimes in the sector is prov ided in the 
NRCan website. Mining operations are subject to federal, provincial and territorial income taxes, and 
to specific mining taxes. Since 2007, the federal corporate tax rate for income from mineral, gas, 
and oil production was lowered (16.5% for 2 011, and 15% for 2012 and thereafter). When combined 
with the provincial/territorial income tax rate, overall income taxation ranges from 25% to 31%.103 
Royalty and mining tax regimes vary by provinces and territories. While rates vary from 10% to 
22.9%, the y are generally profit -based.  
4.116.   Taxes have traditionally been calculated with reference to a number of tax credits or 
deductions, the most specific of which are broadly described on the NRCan website.104 Reforms are 
currently underway to phase out inefficient fossil fuel subsidies and reduce GHG emissions. In 
                                                
http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=TAD/TC/WP(2016)3/PART2/FINAL&do
cLanguage=En . 
98 Global Affairs Canada, Responsible Business Conduct Abroad . Viewed at 
https://www.international.gc.ca/trade -agreements -accords -commerciaux/topics -domaines/other -autre/csr -
rse.aspx?lang=eng . 
99 Natural Resources Canada online information. Viewed at:   https://www.nrcan.gc.ca/mining -
materials/mining/responsible -mineral -development/corporate -social -responsibility/18693 . 
100 NRCan online information. Viewed at: https://www.nrcan.gc.ca/mining -materials/estma/18180 . 
101 Global Affairs Canada, Responsible Business Conduct Abroad.  Viewed 
at  https://www.international.gc.ca/trade -agreements -accords -commerciaux/topics -domaines/other -autre/csr -
rse.aspx?lang=eng#RBCDispute  
102 https://www.canada.ca/en/global -
affairs/news/2018/01/advancing_canadasapproachonresponsiblebusinessconductabroad.html  
103 NRCan online  information, Tables on the Structure and Rates of Main Taxes . Viewed at: 
https://www.nrcan.gc.ca/mining -materials/taxation/mining -taxation -regime/8890 . 
104 NRCan online information, Mining -specific tax provisions . Viewed at: 
https://www.nrcan.gc.ca/mining -materials/taxation/mining -specific -tax-provisions/ 8892 WT/TPR/S/389 • Canada  
 
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  particular, accelerated capital cost allowances (ACCAs) for tangible assets and Canadian Exploration 
Expense (CEE) treatment for intangible assets were phased out in oilsands projects as of 2015 and 
2016, respectively, although allowances were introduced for other areas of the energy sector, such 
as for clean energy and LNG.  
4.117.   A distinct feature of the Canadian tax regime is the flow -through share (FTS) mechanism 
intended to assist companies in the energy and  mining industries to raise money for eligible 
exploration, development, and project start -up expenses. By issuing FTSs, a company can renounce, 
or 'flow through ' certain (unclaimed) expenses to the purchasers of such shares. These expenses 
are deemed to b e incurred by the investor and not the company: the investor (which can be an 
individual or another corporation) receives a 100% tax deduction for the amount invested in the 
shares, plus a 15% federal mineral exploration tax credit (Mineral Exploration Tax  Credit or METC) 
in the case of an eligible expense.105 The FTS mechanism has no sunset date. The METC was 
extended for five years until 31 March 2024, as per the 2018 Fall Economic Statement.  
4.2.5   Developments in subsectors  
4.2.5.1   Natural gas, petroleum and pipelines  
4.118.   Canada is one of the world 's largest producers and traders of natural gas (Table 4.16). Over 
half of Canada 's production is exported, all to the United States; imports of natural gas, also 
exclusively from the United States, are substantial, mostly into So uthern Ontario.  
Table 4.16 Overview of Canada 's natural gas industry, 2017  
Criteria  Amount  
Proven reserves  70 Tcf (17th in the world)  
Producer rank  4th largest world producer  
Gas exports as a share of total exports  1.9%  
Exports, export market  51% of production, 100% to the United States  
Source:  Natural Resources Canada online information. Viewed at: 
https://www.nrcan.gc.ca/energy/f acts/natural -gas/20067 . 
4.119.   The recent fall in export values reflects the large increase in U.S. shale gas production, 
combined with the growing amount of associated gas that is produced as a by -product of drilling for 
condensates, resulting in further oversupply of natural gas and downward pressure on prices 
(Chart  4.5). The natural gas sector is go verned by the Canada Oil and Gas Operations Act. According 
to the International Energy Agency (IEA), the Canadian natural gas market is fully liberalized, and 
appears to operate efficiently; natural gas prices are the lowest among IEA member States, and 
natural gas serves as an important feedstock to Canada 's energy -intensive industries. None of the 
federal/provincial/territorial governments have a stake in companies involved in the exploration, 
production or processing of natural gas in Canada.  
4.120.   Exports of  natural gas and natural gas liquids, including propane, butane and ethane, require 
authorization, either in the form of a short -term export order from the NEB (ethylene and propylene 
are exempt), or a long -term licence valid for up to 40 years.106 When cons idering long -term natural 
gas export licences, the NEB assesses whether the supply of natural gas is large enough to easily 
accommodate domestic needs, while having regard to the trends in the discovery of gas in Canada. 
Import licences are also granted by  the NEB, for a maximum of 25 years, "having regard to the 
equitable distribution of gas in Canada"; however, imports of propane, butane, ethane, ethylene and 
propylene are exempt, as these products have limited consumer implication, and are typically 
intermediary inputs in larger manufacturing supply chains. The diversification of LNG exports to 
markets beyond the United States, notably Asia and Europe, remains a policy priority, encouraged 
since 2015 by an accelerated capital cost allowance for assets use d in facilities that liquefy natural 
gas. The intent to build new LNG export facilities – 13 in British Columbia, 2 in Quebec and 3 in 
                                                
105 NRCan  online information, Mining specific tax provisions . Viewed at:  
https://www.nrcan.gc.ca/mining -materials/taxation/mining -specific -tax-provisions/8892 . 
106 Until the National Energy Board Act was amended in June 2015, the maximum term length of an 
export permit had been 25 years.  The duration of a licence begins on a date  to be fixed in the licence  and must 
not exceed 40 years in the case of a licence for the exportation of natural gas , and 25 years in any other case. 
Viewe d at: https://law s-lois.justice.gc.ca/eng/acts/N -7/page -27.html#h -86. WT/TPR/S/389 • Canada  
 
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  Nova Scotia – was publicly announced, with a total proposed export capacity of 29 billion cubic feet 
per day of natural g as. Since 2011, 24 LNG projects were issued with long -term export licences. In 
2018, LNG Canada announced that it will proceed with its proposed LNG export facility in Kitimat, 
BC. Canada has been importing small amounts of LNG since 2009 through its east coast Canaport 
LNG Facility.  
Chart 4.5 Gas production and trade, 2010 -17 
 
Source:  Statistics Canada. Tables 25 -10-0047-01 and 12 -10-0001-01. Viewed at: 
https://www150.statcan.gc.ca/n1//en/type/data?MM=1#tables  
4.121.   Canada is also one of the world 's largest crude petroleum producers (Table 4.17). The crude 
oil sector is an important contr ibutor to the Canadian economy, accounting for approximately 13% 
of the total value of merchandise exports. About two thirds of oil production is exported from Western 
Canada, almost entirely to U.S. refineries, which are closer to Western Canadian product ion than 
eastern Canadian refineries. Refineries in eastern provinces, with the exception of Quebec, rely 
mainly on non -U.S. imports.  
Table 4.17 Overview of Canada 's crude oil industry, 2017  
Criteria  Amount  
Proven reserves  166 billion barrels (3rd in the world)  
Producer rank  4th largest world producer  
Oil exports as a share of total merchandise exports  12.8%  
Exports, export market  77% of production, 99% to the United States  
Source:  NRCan online information. Viewed at: https://www.nrcan.gc.ca/energy/facts/crude -oil/20064 . 
4.122.   Many of the world 's largest oil companies have operations in Canada 's oil market, which is 
open to private, including foreign, investment. While there are several hundred companies with 
operations, the ten largest companies account for over half of total production. Most of the reserves 
are contained in oil sands, which account for nearly two thirds of total oil production. Export values 
fell substantially since their peak in 2014 (Chart 4.6), as global and regional prices decreased 
significantly.  
4.123.   Canadian oil imports are not regulated through a licensing regime. A short -term order from 
the NEB is re quired for exports of crude oil and refined petroleum products of one year or less 
(two years or less for heavy oil). NEB law and regulations also provide for long -term export licences 
for oil and petroleum products, of up to 25 years in duration. The simp lified export order process for 
crude oil and petroleum products is apparently favoured, due to the expeditious approval 
(two working days) and renewal process, and the unlimited nature of the quantities that can be 
exported under this type of authorizatio n.  
024681012141618
020406080100120140160
2010 2011 2012 2013 2014 2015 2016 2017Gas production Import volumes Export volumes Export valuesChart 4.[Can] Gas production and trade, 2010 -17
Statistics Canada. Tables 25 -10-0047-01 and 12 -10-0001-01. 
Viewed at: https://www150.statcan.gc.ca/n1//en/type/data?MM=1#tables [September 2018] . Source:Volume (billion m3) Value (CAD billion)WT/TPR/S/389 • Canada  
 
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  4.124.   The provinces have the jurisdiction to regulate petroleum product prices, and some 
provinces, such as Alberta, have the authority to license the export of oil to another province. Retail 
prices for fuel are regulated in some provinces, including Prince  Edward Island, Newfoundland and 
Labrador, Nova Scotia, New Brunswick, and Quebec. In Quebec, fuel retail dealers have legal 
recourse against competitors ' dealers selling below the minimum price level set by the Quebec 
Energy Board ( Régie de l 'Énergie ). In Nova Scotia, the Utility and Review Board fixes the wholesale 
price for petroleum products, a maximum retail price, and minimum and maximum retail mark -ups.  
Chart 4.6 Oil production and trade, 2010 -17 
 
Source:  Statistics Canada. Tables 25 -10-0014-01 and 12 -10-0001-01. Viewed at: 
https://www150.statcan.gc.ca/n1//en/type/data?MM=1#tables .  
4.125.   Most petroleum production falls under the provinces ' or shared jurisdictions. The Canada 
Development Investment Corporation (a Crown corporation) retains an 8.5% stake in the Hibernia 
offshore oil field, through its subsidiary, the Canada Hibernia Holding Corporation. However, as most 
of Canad a's oil production occurs on provincial lands or lands under shared jurisdictions, any work 
or activity related to the exploration or drilling for oil or gas, or the production, conservation, 
processing or transportation of oil or gas, requires an operatin g licence or an authorization from the 
province.  
4.126.   The following are the major laws regulating petroleum activities:  
• the Canada Petroleum Resources Act, which regulates interests in petroleum in relation to 
frontier lands that are not subject to a federal -provincial offshore shared management 
agreement;  
• the Canada -Newfoundland and Labrador Atlantic Accord Implementation Act on offshore 
petroleum resource management and revenue -sharing regulates exploration and 
development, which requires, inter alia , that p rojects give first consideration for training 
and employment to local residents in the province, and to goods manufactured in, and 
services provided from within, the province, as long as these are competitive in terms of 
market price, quality, and delivery107;  
• the Canada -Nova Scotia Offshore Petroleum Resources Accord Implementation Act, on 
offshore petroleum resource management and revenue -sharing, which also contains 
in-province domestic content provisions108; and  
                                                
107 Canada's Assembly online information. Viewed at:  
https://www.assembly.nl.ca/legislation/sr/statutes/c02.htm . 
108 Canada -Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act. Nova 
Scotia's legislature online information. Viewed at: 
https://nslegislature.ca/sites/default/files/legc/statutes/canada -ns%20offshore%20petroleum.pdf . 
020,00040,00060,00080,000100,000120,000
050100150200250
2010 2011 2012 2013 2014 2015 2016 2017Crude oil production Import volumes Export volumes Export valuesChart 4.[Can] Oil production and trade, 2010 -17
Statistics Canada. Tables 25 -10-0014-01and 12 -10-0001-01. 
Viewed at: https://www150.statcan.gc.ca/n1//en/type/data?MM=1#tables [September 2018] . Source:Volume (million m3) Value (CAD million)WT/TPR/S/389 • Canada  
 
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  • the Indian Oil and Gas Act and its associat ed Regulations, which cover oil and gas activity 
on First Nation reserve lands.  
4.127.   The development of new oil pipeline transport infrastructure for supplying both the domestic 
and export markets is a priority. The Pipeline Safety Act, 2015 strengthens Canada 's pipeline safety 
regime by building on the principles of incident prevention, preparedness and response, and liability 
and compensation. The Act enshrines the "polluter pays " principle and requires companies to have 
a sufficient financial capacity to res pond to leaks, spills and ruptures, and account for their 
abandoned pipelines.  
4.128.   All pipelines within Canada are privately -owned and -operated, with the exception of: the 
natural gas transmission systems in Saskatchewan; one transmission line between Saskat chewan 
and Manitoba, owned and operated by subsidiaries of the provincial Crown corporation Sask Energy; 
and the Trans Mountain Pipeline (see below). Transmission tolls and tariffs 
(inter -provincial/international) and any expansions of the pipeline network  require approval from 
the NEB, to ensure that open and non -discriminatory access exists for all shippers. Canada has not 
made any GATS commitments with respect to pipeline transport services.  
4.129.   In 2013, the pipeline company, Trans Mountain, submitted an ex pansion project to the NEB. 
The project included pipeline facilities that expand the existing 1,147 km Trans Mountain Pipeline 
system in Alberta and British Columbia, with about 981 km of new buried pipeline, new and modified 
facilities, and additional tan ker-loading facilities at the Westridge Marine Terminal in Burnaby. This 
would amount to a trebling of Trans Mountain 's oil shipping capacity from its current level of 
300,000  bbl/d. In 2016, the NEB recommended that the Governor in Council approve the pro ject, 
subject to 157 conditions; approval was granted in November 2016.109 In 2017, a number of 
First Nations, the cities of Vancouver and Burnaby, and two non -governmental organizations applied 
for judicial review, claiming that the Government of Canada had  failed to consult Indigenous peoples, 
and that the operation of project -related marine vessels was likely to result in significant adverse 
effects to the Southern resident killer whale. In May 2018, the Trans Mountain Pipeline and related 
infrastructure w as purchased by the Government of Canada. In August 2018, the Federal Court of 
Appeal quashed the Governor in Council 's Order in Council and the NEB certificate for the project.110 
A NEB reconsideration process and new Indigenous consultations process, initi ated by the 
Government of Canada, is underway.  
4.2.5.2   Electricity and renewable energy  
4.130.   Canada is the world 's sixth -largest producer of electric energy, two thirds of which generated 
by hydroelectricity (Table 4.18). The U.S. shale gas development brought down pri ces for natural 
gas, the main fuel in U.S. electricity generation; it therefore also brought down prices of wholesale 
electricity, and the revenues of Canada 's electricity exporters, all directed to U.S. markets.  
Table 4.18 Overview of Canada 's electricity industry, 2017  
Criteria  Amount  
Electricity generation (2016)  648.4 TWh  
Producer rank (2016)  6th largest  electricity generation, 2nd largest exporter of electricity, 2nd 
largest hydro generation, and 6th largest producer of nuclear electricity 
globally  
Trade balance  72 TWh exported; 10 TWh imported  
0.5% of total merchandise exports  
Exports, export market  11% of production, 100% to the United States  
Source:  NRCan online information. Viewed at: https://www.nrcan.gc.ca/energy/facts/electricity/20068 . 
4.131.   Public ownership of electricity utilities is the norm in Canada, with a single, 
vertically -integrated provincial Crown corporation regulating electricity generation, internal 
transmission and distribution. There are some exceptions: Alberta has an open electricity market, 
while Ontario has a hybrid market. The provinces have various legal frameworks for independent 
                                                
109 NEB online information. Viewed at: https://www.neb -
one.gc.ca/pplctnflng/mjrpp/trnsmntnxpnsn/smmrrcmmndtn -eng.html . 
110A summary of the case may be viewed at Canada's Federal Court of Appeal online information, at: 
http://cas -cdc-www02.cas -satj.gc.ca/fca -caf/pdf/Executive_Summary_Trans_Mountain_(English)_clean.pdf . WT/TPR/S/389 • Canada  
 
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  power producers (IP Ps), with whom they may enter into power purchase agreements. Electricity 
markets thus remain fragmented, with limited interconnection between provinces.  
4.132.   Canada is a net exporter of electricity, exclusively to the United States within the integrated 
North American electricity grid. There are 34 major transmission lines that connect the two countries 
and support major two -way power flows. The Federal Government has jurisdiction over matters of 
inter-provincial power lines and international trade, including t he construction and operation of 
international power lines, and export authorizations.  
4.133.   The NEB grants electricity export permits depending on a number of factors, including the 
effects of exports on adjacent provinces, the environment, and fair market acc ess for Canadians. 
Imports of electricity do not require authorization. Canadian utilities must provide reciprocal 
non-discriminatory open transmission access to U.S. utilities to be able to sell electricity directly to 
customers in the United States.  
4.134.   Electricity prices vary from province to province, depending, inter alia , on the type of 
electricity generation, the cost of transmission and local distribution, and whether prices are 
market -based or regulated. Overall, Canada 's retail electricity prices are  among the lowest of the 
International Energy Agency (IEA) members. With the exception of Alberta and Ontario, prices are 
regulated by a quasi -judicial board or commission. In Quebec, New Brunswick, Nova Scotia, Prince 
Edward Island, and Newfoundland and L abrador, retail electricity tariffs are regulated on a 
cost-of-service basis. In Alberta, wholesale and retail markets are deregulated, and prices are 
market -determined, although households and smaller commercial consumers have the option of 
subscribing to  a regulated tariff. Ontario has been moving towards regulated or contracted prices 
for energy.  
4.135.   The development, production and use of nuclear energy is regulated by the Canadian Nuclear 
Safety Commission (CNSC) under the Nuclear Safety and Control Act. T he operation of nuclear power 
plants and facilities is regulated by the CNSC through a licensing system. Canada 's existing nuclear 
power technology was designed by Atomic Energy Canada Ltd (AECL), a federal Crown corporation. 
In 2011, its commercial busine ss was sold to SNC Lavalin and, in 2015, the restructuring of AECL 's 
nuclear laboratories was completed with the establishment of a government -owned, 
contractor -operated model. Under the new model, AECL retains ownership of the lands, and other 
assets and liabilities of the nuclear laboratories, but it now delivers its remaining mandate through 
a long -term contract with the contractor, Canadian National Energy Alliance, which owns, and is 
responsible for the management and operations of, Canadian Nuclear La boratories.  
4.136.   After Ontario 's closure of all remaining coal -fired power plants in 2014, Canada implemented 
regulations on GHG emissions from coal -fired electricity plants, that effectively ban the construction 
of new coal -fired generation that does not utili ze capture and storage technology. In 2016, Canada 
proposed amendments to these regulations to accelerate its commitment to the phase -out of 
conventional coal -fired power plants by 2030. In October 2014, SaskPower commissioned the world 's 
first integrated carbon capture and storage facility at the Boundary Dam coal plant in 
Saskatchewan.111 Despite the fact that, according to the IEA, Canada is not currently on track to 
meet its 2020 GHG emissions reduction goals, there are several positive trends, notably a marked 
decrease in emissions from electricity generation, and programmes at federal and provincial levels 
to deploy renewables.  
4.137.   Federal and provincial governments manage several programmes to encourage R&D in all 
sectors, including innovation in renewable energy, such as hydro, wind and solar energy, and 
biofuels.112 Federal assistance encompasses grants, subsidized funding and other financial 
incentives, tax incentives, pricing (regulatory) subsidies, and support for R&D.113 According to the 
authorities, parti cipation in these programmes by foreign enterprises established in Canada is not 
restricted.  
4.138.   The ecoENERGY for Renewable Power Program provides a 1 cent per kWh incentive for 
qualifying renewable energy projects commissioned by 31 March 2011. Projects are  eligible to 
                                                
111 IEAGHG (2015), Integrated Carbon Capture and Storage Project at SaskPower 's Boundary Dam 
Power Station , 2015/06, A ugust 2015. Viewed at: https://ieaghg.org/docs/General_Docs/Reports/2015 -06.pdf . 
112 NRCan online i nformation . Viewed at:  https://www.nrcan.gc.ca/energy/renewable -electricity/7295 . 
113 NRCan online information . Viewed at:  https://www.nrcan.gc.ca/energy/funding/21146 . WT/TPR/S/389 • Canada  
 
- 176 - 
 
  receive the incentive for electricity produced for up to ten years. The programme will end on 
31 March 2021.  
4.139.   In Quebec, Hydro Québec has been using minimum regional -content requirements in its 
wind energy requests for proposals since 2004, no tably to foster social and economic development 
of Indigenous communities.114  
4.140.   The Canadian Environmental Protection Act, 1999 and the Renewable Fuels Regulations, 
2010 define a commitment to expand the production and use of biofuels, such as ethanol and 
biodiesel, under Canada 's Renewable Fuels Strategy to reduce GHG emissions; these federal 
measures created substantial additional demand for ethanol and biodiesel. The four key elements of 
the strategy include:115 
• a requirement for fuel producers and importers to comply with a renewable fuel content 
of 5% of average annual gasoline production or imports (and 2% of the diesel pool);  
• support for biofuels production, led by the AAFC;  
• support for next -generation technologies; and  
• the Federal ecoEnergy for the Biofu els Program of 2007, which was completed in March 
2018. Over its duration, this Program provided CAD 1.5 billion to support the production 
of renewable biofuel alternatives to gasoline and diesel. In April 2018, an evaluation of 
the Program was published.116  
4.141.   Five provinces have renewable fuels mandates equal to, or higher than, the current federal 
requirements to further emissions reductions and support their renewable fuels industry. In Ontario, 
fuel suppliers have been required to meet a 5% annual average ethanol content in gasoline since 
January 2007, changing to 10% beginning in 2020, and a 4% annual renewable content in diesel 
since January 2017. Fuel suppliers in Manitoba have been subject to an 8.5% ethanol content 
requirement in gasoline since 2008, a nd a 2% biodiesel content requirement (which includes 
renewable diesel) in diesel fuel since 1 November 2009. In Saskatchewan, a 7.5% ethanol content 
in gasoline applies, and 2% renewable content in diesel. In Alberta, a 5% ethanol content in gasoline 
applies, and a 2% renewable content in diesel. In British Columbia, a 5% ethanol content in gasoline 
applies, and a 4% renewable content in diesel. Quebec is also planning to put in place a 5% ethanol 
content in gasoline, and a 2% renewable content in diesel.117 
4.2.5.3   Minerals  
4.142.   Canada is also a leader in the extraction and trade of minerals, mining over 60 commodities. 
It is the world 's leader in the production (by volume) of potash, used in various types of fertilizers, 
and ranks among the top global producers of alumi nium, cobalt, diamonds, gemstones, gold, nickel, 
platinum group metals, salt, titanium concentrates, and uranium. The commodities with the highest 
production values are presented in Chart 4.7. Total mineral production in 2017 was valued at 
CAD 43.9 billion , a 4% increase from 2014. Over the review period, the share of gold and coal in 
the total value of production increased significantly, as oversupply was progressively reduced on 
world coal markets, whilst the production of gold continued to increase in Ca nada, sustained by 
                                                
114 Hydro Québec online information. Viewed at: http://news.hydroquebec.com/en/press -
releases/486/hydro -quebec -distribution -issues -a-call-for-tenders -for-450-mw-of-wind-power/ . 
115 NRCan online information. Viewed at:  https://www.nrcan.gc.ca/energy/alternative -
fuels/programs/12358 . 
116 NRCan online information , EcoEnergy for Bi ofules program: Lessons Learnt Assessment . Viewed at: 
https://www.nrcan.gc.ca/21100 . 
117 Online information, viewed at: for Ontario: https://www.ontari o.ca/page/ethanol -gasoline , 
https://www.ontario.ca/laws/regulation/050535 , https://www.ontario.ca/page/greener -diesel -regulation  (4% 
bio-based diesel content since 2017); for Manitoba: https://www.gov.mb.ca/jec/energy/biofuels/index.html ; 
for Saskatchewan: http://www.qp.gov.sk.ca/documents/english/Regulations/Regulations/e11 -1r1.pdf , 
http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/R19 -001.pdf ; for Alberta: 
https://www.alberta.ca/renewable -fuels-standard -resources.aspx  (Alberta refers to ethano l as "renewable 
alcohol in gasoline"); for British Columbia: https://www2.gov.bc.ca/gov/content/industry/electr icity-
alternative -energy/transportation -energies/renewable -low-carbon -fuels; and for Quebec: 
https://politiqueenergetique.gouv.qc.ca/mise -en-oeuvre/ plan-daction/objectif/?orientation=2 . WT/TPR/S/389 • Canada  
 
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  strong world prices.118 Trade in minerals is also important, with domestic exports of minerals and 
metal products valued at CAD 97.4 billion, and imports at CAD 81.6 billion, suggesting intensive 
intra-industry trade in ores, concentrates,  and semi - and final -processed mineral products, thanks 
to generally zero or low tariffs on mineral products.  
Chart 4.7 Mineral production by value, 2017  
 
Note:  Preliminary data.  
Source:  WTO Secretariat, based on Natural Resources Canada (NRCAN) online information. Viewed at: 
http://sead.nrcan.gc.ca/prod -prod/ann -ann-eng.aspx . 
4.143.   While mining activities fall under provincial jurisdiction, mining projects are subject to both 
provincial and federal Environmental Assessments. The federal Canadian Environmental Assessment 
Agency and Environment and Climate Change Canada have an important role in the Environmental 
Assessments of al most all major mining projects, as well as serving as the Crown 's consultation 
coordinator for many major resource projects. Canada is currently working to modernize its federal 
environmental assessment and regulatory processes. The proposed changes, inclu ding a new impact 
assessment process, aim to support jobs and economic opportunities through a more timely, 
predictable, and transparent assessment process that strengthens investor confidence, restores 
public trust, advances Indigenous reconciliation, and  enhances environmental performance.  
4.144.   Canada 's Mines Ministers announced the development of the Canadian Minerals and Metals 
Plan (CMMP) in March 2018. The Plan focuses on six Strategic Directions that are organized by 
thematic priorities, for supporting a  competitive and sustainable sector, including Economic 
Development and Competitiveness; Advancing the Participation of Indigenous Peoples; the 
Environment; Science, Technology and Innovation; Community; and Global Leadership. A series of 
Action Plans will  operationalize this Plan.  
4.145.   NRCan is responsible  at the federal level for implementing Canada 's international 
commitments, including under the Kimberly Process Certification Scheme (KPCS) for trade in rough 
diamonds, through its 2002 Federal Export and Imp ort of Rough Diamonds Act and associated 
Regulations.119 Thus, certificates must accompany imports and exports of rough diamonds, and 
shipments must be sealed to ensure that the requirements are met under the KPCS.  
4.146.   The following downstream restrictions rega rding the processing of minerals within the 
province or the country were scheduled under the CETA:  
• in Ontario, the Mining Act requires that all minerals extracted in Ontario be processed 
within Canada to produce "metal useful in the arts without further tr eatment ", though it 
is possible to obtain an exemption from this provision from the Ontario government;  
                                                
118 NRCan online information. Viewed at: https://www.nrcan.gc.ca/mining -materials/publications/17722 . 
119 Kimberly Process online information. Vie wed at: https://www.kimberleyprocess.com/ . 
Gold
19.8%
Coal
14.2%
Copper
10.6%
Potash
10.4%Iron ore
8.7%Nickel
6.1%Diamonds
6.0%Sand and gravel
5.8%Other
18.4%Chart 4.[Can] Canada's mineral production by value, 2017
Total mineral production: CAD 43,904 million
WTO Secretariat, based on Natural Resources Canada (NRCAN) online information . Viewed at: 
http://sead.nrcan.gc.ca/prod -prod/ann -ann-eng.aspx [September 2018].Source:  Preliminary data. Note:WT/TPR/S/389 • Canada  
 
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  • in New Brunswick, the Mining Act indicates that, if required to do so by the Minister at the 
time a mining lease is granted or at any time thereafter, a lessee shall process, or further 
process, in the province any minerals mined in the province under the mining lease; and  
• in Nova Scotia, the Mineral Resources Act indicates that, except for testing, no person 
shall remove from the province to a place out side of Canada for processing an output from 
a mine in the province without first obtaining the consent of the Minister.  
4.147.   Canada is the world 's leading potash producer and exporter, possessing the world 's largest 
reserves.120 Approximately 95% of Canadian pot ash production is exported. Two of the 
three  producers export their products to offshore markets exclusively through Canpotex Limited, a 
marketing, distribution company handling all potash exports to overseas markets. In 2013, a number 
of anti -trust lawsui ts involving the Canpotex company were settled in the United States, after 
consumers filed suit for price -fixing cartel activities.121 In January 2018, a merger between the 
Potash Corporation of Saskatchewan and Agrium was officially announced, under the nam e 
Nutrien.122 Canpotex, at mid -2018, was wholly -owned by Nutrien and the other largest 
Saskatchewan potash producer, Mosaic , each shareholder having equal ownership in the company. 
The Bethune mine opened in June 2017 , and is owned by K+S AG, which is not a participant in 
Canpotex.  
4.148.   Canada is the world 's second -largest uranium producer after Kazakhstan, mining 
13.1 kilotonnes in 2017, and accounting for about 22% of world production and 21% of world 
exports.123 Canada exp orts around 88% of its production. The regulation of uranium mining is mainly 
a federal responsibility. At the federal level, uranium mining, refining, processing, fuel fabrication, 
and nuclear reactor operation are regulated by the Canadian Nuclear Safety  Commission (CNSC). 
Under the Non -Resident Ownership Policy in the Uranium Mining Sector, foreign ownership of 
uranium mining property is limited to 49%. Ownership levels of more than 49% are permitted on a 
project -by-project basis if it can be clearly est ablished that the project is, in fact, 
Canadian -controlled. Exemptions may also be granted in cases where it can be demonstrated that 
Canadian partners cannot be found.  
4.3  Manufacturing  
4.3.1   Overview  
4.149.   Manufacturing is one of the cornerstones of the economy. It repr esents more than 10% of 
the total of GDP, accounting for approximately CAD 198 billion in 2017.124 The sector covers 
21 industry groups that produce goods for both industrial and consumer use.  Manufacturing is also 
one of Canada 's most important economic sec tors in terms of employment, engaging 
1.7 million  people in a wide range of industries across the country.  
4.150.   Canadian manufacturers are increasingly linked with foreign markets, through participation 
in global value chains. They export more than CAD 360 bil lion each year, representing 67% of all 
merchandise exports. In 2017, close to half of what manufacturers sold was exported. Notably, over 
three quarters of exports were destined for the United States.  
4.151.   Acknowledging a highly competitive global environment , the Government promotes fair 
competition for Canadian firms abroad, and seeks to ensure that the Canadian market remains open 
and competitive. In this context, Canada actively participates in trade negotiations to open markets 
with the purpose of reducin g or eliminating tariffs on manufacturing inputs, machinery and 
equipment, as well as reducing non -tariff measures.  
                                                
120 Natural Resources Canada online information. Viewed at: http://www.n rcan.gc.ca/mining -
materials/markets/commodity -reviews/2012/15358 . 
121 Competition Policy International, US/Canada: Potash giants offer millions in cartel settlement with 
farmers . Viewed at : https://www.competitionpolicyinternational.com/us -canada -potash -giants -offer-millions -
in-cartel -settlement -with-farmers/ . 
122 NUTRIEN information online. Viewed at: https://www.nutrien.com/ . 
123 Natural Resources Canada online information. Preliminary figures for 2017. Viewed at:  
https://www.nrcan.gc.ca/energy/facts/uranium/20070 . 
124 Government of Canada,  Canadian manufacturing sector gateway . Viewed at: 
https://www.ic.gc.ca/eic/site/mfg -fab.nsf/eng/home . WT/TPR/S/389 • Canada  
 
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  4.152.   Table 4.19 presents a snapshot of Canada 's applied MFN tariffs covering some of the most 
important groups that represent the Canadian manuf acturing sector. They include aerospace and 
automotive, and iron and steel industries. Among them, imports of the iron and steel industry have 
the largest share of duty -free lines (99.1%), while for vehicles about 4 1.5% of tariff lines are 
duty-free, and f or products of the aerospace industry, some 83.3%.  
Table 4.19 Applied MFN tariffs on selected manufactured products, 2019  
Groups  No. of tariff lines 
at the 8 -digit 
level  Simple average 
(%) Range (%)  Share of duty-
free lines (%)  
Aerospace a 18 1.6  0-15.5  83.3 
Iron and steel b 211 0.1  0-6.5  99.1 
Vehicles c 159 3.6  0-9.5  41.5 
a        HS 88.  
b        HS 72 excluding HS 7204; and HS 7301, HS 7302, HS7303, HS 7304, HS 7305, HS 7306, and 
HS 7307.  
c        HS 840731, HS 840732, HS 840733, HS 840734, HS 840820, HS 8511, HS 8512, HS 8609; and 
HS 87 excluding HS 8709, HS 8710, HS 8711, HS 8712, HS 8713, HS 8714, and HS 8715.  
Source:   WTO Secretariat calculations, based on CBSA online information. Viewed at: https://www.cbsa -
asfc.gc.ca/trade -commerce/tariff -tarif/2019/menu -eng.html ; and WTO IDB.  
4.153.   Manufacturing in Canada vies to be a cutting -edge, innovative and strongly div erse sector, 
relying on information technologies, additive manufacturing, automation systems, nanotechnology 
and biotechnology. In this sense, in 2018, the Canadian manufacturing sector was responsible for 
35% (CAD 6.3 billion) of all business enterprise R &D investments.125 
4.3.2   Automotive industry  
4.154.   The automotive industry  plays a key role in Canada 's economy. With a CAD 18 billion 
contribution to GDP, it is one of Canada 's largest manufacturing sub-sectors. The industry directly 
employs more than 130,000 people, w ith an additional 400,000 people in aftermarket services and 
dealership networks.126 Canada produces passenger vehicles, trucks and buses, auto parts and 
systems, truck bodies and trailers, tyres, and machines -tools-dies-moulds (MTDMs). Furthermore, 
it is on e of the global leaders in emerging automotive technologies, such as lightweight materials, 
advanced safety systems, software and cybersecurity, connected/autonomous vehicles, artificial 
intelligence (AI), alternative powertrains (electric vehicles and fue l cells), and vehicle safety and 
testing.  
4.155.   Canada is the world 's 11th producer of light vehicles. Chrysler and General Motors are 
Canada 's leading automobile manufacturers; others include Toyota, Ford and Honda. Five Original 
Equipment Manufacturers (OEM) assemble light vehicles at Canada 's eight auto assembly plants. 
Automotive manufacturing is highly concentrated in Ontario which accounts for 100% of Canada 's 
light vehicle production, 400 parts manufacturers and 94% of industry shipments; however, there 
are also important manufacturing clusters in Quebec, Manitoba and British Columbia.127  
4.156.   Canada is part of the fully integrated North American market with an annual production of 
almost 2.24 million vehicles, of which 85% are exported. Canada 's automotive indu stry benefits 
from Canada 's FTAs, which include the NAFTA, the CETA, the Canada -Korea FTA, and the CPTPP. 
These trade agreements allow automotive investors in Canada to benefit from integrated global 
supply chains.128 As per Table 4.20 below, Canada 's main t rading partners for automotive products, 
for both export and imports, are the United States, Mexico and the EU. Japan, the Republic of Korea, 
and China are also important trading partners.  
                                                
125 Government of Canada, Canadian Manufacturing Sector Gateway . Viewed at: 
https://www.ic.gc.ca/eic/site/mfg -fab.nsf/eng/home . 
126 Government of Canada, Canada Automotive Industry . Viewed at: https://www.ic.gc.ca/eic/site/auto -
auto.nsf/eng/home . 
127 Government of Canada, Canada Automotive Industry .Viewed at: https://www.ic.gc.ca/eic/site/auto -
auto.nsf/eng/home . 
128 Invest in Canada online information. Viewed at: https://www.investcanada.ca/industries/automotive . WT/TPR/S/389 • Canada  
 
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  Table 4.20 Main indi cators of the automotive industry, 2013 -18 
  2013  2014  2015  2016  2017  2018  
GDP at basic prices 
(CAD  million)a 15,440  16,763  16,524  16,943  16,511  16,344  
% of total manufacturing  8.5%  8.9%  8.7%  8.9%  8.4%  8.1%  
Motor vehicle manufacturing  6,905  7,222  6,808  6,910  6,549  6,148  
Motor vehicle body and trailer 
manufacturing  953 1078 1123 1037 1133 1,185  
Motor vehicle parts manufacturing  7,582  8,463  8,593  8,996  8,829  9,011  
Exports (CAD million)  60,041  65,574  74,950  81,717  76,585  73,730  
% of total domestic exports  13.5%  13.3%  15.6%  17.4%  15.3%  13.7%  
Motor vehicle manufacturing  46,910  50,055  57,144  63,638  59,392  55,012  
Motor vehicle body and trailer 
manufacturing  951  1,084  1,353  1,449  1,501  1,952  
Motor vehicle parts manufacturing  12,181  14,435  16,453  16,631  15,692  16,766  
   Major destinations (% of total)   
     United States  97.1%  97.0%  96.8%  95.7%  96.7%  95.3%  
     Mexico  1.3%  1.3%  1.7%  2.2%  1.8%  1.9%  
     EU 0.3%  0.3%  0.3%  0.3%  0.5%  0.9%  
Imports (CAD million)  79,381  85,419  95,392  101,467  107,075  107,502  
% of total imports  16.7%  16.7%  17.8%  19.0%  19.1%  18.1%  
Motor vehicle manufacturing  41,218  45,524  50,870  53,535  59,251  59,986  
Motor vehicle body and trailer 
manufacturing  3,822  3,959  3,605  3,347  3,731  4,554  
Motor vehicle parts manufacturing  34,341  35,937  40,917  44,585  44,093  42,962  
   Major suppliers (% of total)   
     United States  66.1%  66.5%  65.5%  65.7%  64.4%  63.6%  
     Mexico  11.9%  13.0%  13.4%  13.3%  14.2%  14.1%  
     EU 7.1%  7.3%  7.5%  7.9%  8.0%  8.3%  
     Japan  7.0%  5.3%  5.5%  5.4%  5.6%  5.8%  
     Korea, Rep. of  3.5%  3.4%  3.3%  3.3%  3.2%  3.2%  
     China  2.6%  2.5%  2.6%  2.4%  2.6%  2.7%  
a Based on seasonally adjusted GDP at basic prices, in chained 2012 dollars.  
Note:  Based on North American Industry Classification System (NAICS) codes 3361, 3362, and 3363.  
Source:  Information provided by the authorities; and Government of Canada, Statistics Canada and Trade 
Data Online.  
4.157.   Canada implemented a number of programmes aimed  at stimulating R&D in the automotive 
industry. In 2008, the Federal Government introduced the Automotive Innovation Fund (AIF), 
providing CAD 250 million over five years to back strategic, large -scale R&D projects in the 
automotive sector that support inn ovative, greener and more fuel -efficient vehicles.  
4.158.   In July 2017, the AIF was consolidated into the Strategic Innovation Fund (SIF). The SIF 
supports innovation activities across all industrial sectors, including the automotive sector 
(Section  3.3.1).  
4.159.   Canada's motor vehicle safety standards are developed by Transport Canada under the 
authority of the Motor Vehicle Safety Act. Since the last TPR, the Government amended Schedule IV 
of the Motor Vehicle Safety Regulations, by revising three Canada motor vehic le safety standards, 
thereby allowing motor vehicle manufacturers to meet either United States or Canadian 
requirements. These standards were identified as being suitable for harmonization during the CETA 
negotiations between Canada and the European Union.  
4.3.3   Aircraft  
4.160.   Canada is home to more than 700 aerospace companies, employing over 
85,000  professionals. Although GDP stemming from aerospace products and parts manufacturing 
totalled CAD 7.6 billion in 2017, the direct economic impact from enterprises for whic h aerospace is WT/TPR/S/389 • Canada  
 
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  the main activity reached CAD 12.6 billion to GDP.129 This included companies engaging in 
maintenance, repair, and overhaul (MRO) activities. Between 2012 and 2017, MRO activities grew 
by over 25%, while manufacturing activity saw a slight con traction.130 Most aerospace manufacturing 
activity takes place in Central Canada, with Quebec and Ontario capturing 52% and 28%, 
respectively, of the employment share. Western and Atlantic Canada capture close to 60% of MRO 
activities. The share of STEM131 employment in aerospace manufacturing in 2017 was almost 
three  times the manufacturing average. Women made up close to a quarter of those employed in 
STEM occupations.132  
4.161.   In 2017, Canadian aerospace industry sales were made up of: commercial aerospace (86%), 
defence aerospace (12%), and space systems (2%).  Canada 's aircraft industry exports about 75% 
of its output to customers worldwide.133 The industry is highly integrated, with over 60% of exported 
products supply -chain related. Overall, during the 2013 -17 per iod, the share of supply -chain exports 
increased by almost 50%.  The main destination of Canadian aerospace products and parts is the 
United States, with a share of over 50% of the total in 2017 (Table 4.21). It is noticeable, however, 
that the share of Can adian exports to the United States gradually declined during the period covered 
by this Report. The EU and Switzerland are the next largest importers of Canadian aerospace 
industry products and parts; they increased their share during the 2013 -17 period, a ccounting for 
21.1% and 6.6% of the total, respectively, in 2017. The major exporters of aerospace products and 
parts to Canadian markets are the United States, the EU, Mexico and China, with the United States 
capturing the largest share (close to 58%) of total Canadian imports.  
Table 4.21 Aerospace products and parts manufacturing, 2013 -17 
  2013  2014  2015  2016  2017  
GDP at basic prices (CAD million)a   7,970    8,685    8,204    7,929    7,625  
     % of total manufacturing  4.4%  4.6%  4.3%  4.2%  3.9%  
Domestic exports (CAD million)   11,262   14,501   16,541   14,387   14,179  
   % of total domestic exports  2.5%  2.9%  3.4%  3.1%  2.8%  
   Major destinations (% of total)       
     United States  61.4%  62.4%  64.6%  60.2%  56.0%  
     EU-28 17.2%  18.3%  17.9%  23.8%  20.7%  
     Switzerland  1.1%  0.6%  0.5%  2.7%  6.6%  
Imports (CAD million)   10,531   12,822   16,427   14,150   14,790  
   % of total imports  2.2%  2.5%  3.1%  2.7%  2.6%  
   Major suppliers (% of total)       
     United States  51.2%  57.5%  56.8%  58.7%  57.9%  
     EU-28 30.6%  26.2%  28.0%  25.0%  24.0%  
     Mexico  3.3%  3.1%  2.7%  2.6%  2.7%  
     China  1.4%  1.5%  1.7%  2.1%  2.4%  
Note:  Based on North American Industry Classification System (NAICS) code 3364.  
a Based on seasonally -adjusted GDP at basic prices, in chained 2012 dollars.  
Source:  Government of Canada, Statistics Canada and Trade Data Online.  
4.162.   The aerospace industry is the top R&D stakeholder among all Canadi an manufacturing 
industries, with investments totalling CAD 1.7 billion in 2017. The aerospace manufacturing industry 
contributed close to a quarter of total manufacturing R&D in Canada, and was over seven times as 
R&D intensive as the manufacturing averag e.134 Firms capturing more than 70% of the aerospace 
                                                
129 Innovation, Science and Economic Deve lopment Canada (2018), State of Canada 's Aerospace 
Industry 2018 Report . Viewed at: https://aiac.ca/wp -content/uploads/2018/06/State -of-Canadas -Aerospace -
Industry -2018-Report.pdf . 
130 Industry Canada online information.  Viewed at: https://www.ic.gc.ca/eic/site/ad -
ad.nsf/eng/h_ad03964.html . 
131 Science, technology, engineering and mathematics.  
132 Innovation, Science and Economic Development Canada (2018), State of Canada 's Aerospace 
Industry 2018 Report . Viewed at: https://aiac.ca/wp -content/uploads/2018/06/State -of-Canadas -Aerospace -
Industry -2018-Report.pdf . 
133 Industry Canada online information.  Viewed at: https://w ww.ic.gc.ca/eic/site/ad -
ad.nsf/eng/ad03909.html . 
134 Innovation, Science and Economic Development Canada (2018), State of Canada 's Aerospace 
Industry 2018 Report . Viewed at: https://www .ic.gc.ca/eic/site/ad -ad.nsf/eng/ad03909.html . WT/TPR/S/389 • Canada  
 
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  industry 's activity collaborated on R&D with academia, government, and suppliers.135 A relatively 
large number of small and medium -sized businesses participate in the aerospace business, 
particularly in the area of composites, precision machining, coatings, and component system design. 
Transport Canada maintains an aviation certification system to ensure that Canadian aerospace 
products meet the highest standards in safety and reliability. These certification standards are 
recognized by the U.S. Federal Aviation Administration (FAA) and other regulatory bodies.136 
4.3.4   Steel  
4.163.   Canada 's steel indust ry represented 2.1% of total manufacturing production in 2018. It is 
an important contributor in the provision of jobs and key inputs for other major industries, including 
energy, advanced manufacturing, construction, and auto production. In 2018, the industry employed 
more than 23,000 people, and contributed CAD 4.2 billion to GDP.137  
4.164.   In 2017, Canada was the world 's 16th largest steel importer, and its imports represented 
about 2% of all steel imported globally. In value terms, it represented 2.3% of the to tal goods 
imported in 2018 (Table 4.22).138 Canada was the world 's 19th largest steel exporter in 2017, 
representing 1% of all steel exported globally. In value terms, it represented 1.7% of the total goods 
Canada exported in 2018.139 
4.165.   Canada imports steel from  over 100 countries and territories. The ten major steel exporters 
to Canada include the United States, Mexico, China, Brazil, Romania, Germany, Turkey, the Republic 
of Korea, Japan, and Chinese Taipei. Combined, these countries accounted for 86% of Canada 's steel 
imports in 2017, with the United States accounting for the largest share of Canada's steel imports. 
In 2017, about USD 14 billion -worth of steel was traded between Canada and the United States.140 
Notably, while Canada's top source countries have sh ifted from year to year, the United States has 
ranked as its top import source for steel products for more than 20 years. On the export side, 88% 
of Canada's steel exports were to the United States, and 6% to Mexico, in 2018. The United States 
and Mexico h ave ranked first and second as top export markets for Canada's shipments of steel for 
more than 20 years.  
Table 4.22 Steel industry, 2013 -18 
  2013  2014  2015  2016  2017  2018  
GDP at basic prices (CAD million)a 3,629  3,916  3,709  3,727  4,134  4,288  
% of total manufacturing  2.0%  2.1%  2.0%  2.0%  2.1%  2.1%  
Iron and steel mills and ferro -alloy 
manufacturing  2,418  2,520  2,363  2,417  2,435  2,601  
Steel product manufacturing from purchased 
steel 1,211  1,396  1,346  1,310  1,699  1,687  
Exports (CAD million)  6,757  7,899  7,671  6,983  8,393  9,065  
% of total domestic exports  1.5%  1.6%  1.6%  1.5%  1.7%  1.7%  
Iron and steel mills and ferro -alloy 
manufacturing  4,712  5,627  5,414  5,265  6,165  6,701  
Steel product manufacturing from purchased 
steel 2,045  2,272  2,257  1,718  2,228  2,364  
   Major destinations (% of total)        
     United States  86.2%  88.1%  86.6%  85.4%  91.0%  88.1%  
     Mexico  4.9%  5.3%  6.7%  7.2%  6.0%  5.7%  
     EU-28 3.4%  2.4%  2.8%  3.1%  2.1%  2.1%  
                                                
135 Innovation, Science and Economic Development Canada (2018), State of Canada 's Aerospace 
Industry 2018 Report . Viewed at: https://aiac.ca/wp -content/uploads/2018/06/State -of-Canadas -Aerospace -
Industry -2018-Report.pdf . 
136 Industry Canada, Aerospace and Defence in Canada . Viewed at: https://www.ic.gc.ca/eic/site/ad -
ad.nsf/eng/ad03909.html . 
137 Government of Canada, Steel and aluminum . Viewed at: http://international.gc.ca/tr ade-
commerce/controls -controles/steel_alum -acier_alum.aspx?lang=eng  
138 Global Steel Trade Monitor.  Viewed at: https://www.trade.gov/steel/countries/pdfs/imports -
Canada.pdf . 
139 Global Steel Trade Monitor.  Viewed at: https://www.trade.gov/steel/countries/pdfs/exports -
Canada.pdf . 
140 Government of Canada, Steel and aluminum . Viewed at: http://international.gc.ca/trade -
commerce/controls -controles/steel_alum -acier_alum.aspx?lang=eng . WT/TPR/S/389 • Canada  
 
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    2013  2014  2015  2016  2017  2018  
Imports (CAD million)  10,897  13,056  11,069  9,934  12,334  13,697  
% of total imports  2.3%  2.5%  2.1%  1.9%  2.2%  2.3%  
Iron and steel mills and ferro -alloy 
manufacturing    8,984   11,087    9,476    8,683   10,587  11,775  
Steel product manufacturing from purchased 
steel  1,913    1,969    1,593    1,252    1,747  1,922  
   Major suppliers (% of total)       
  
     United States  65.2%  57.7%  57.8%  60.1%  55.7%  45.5%  
     EU-28 9.9%  11.2%  12.9%  11.0%  11.2%  12.4%  
     China  6.5%  9.0%  9.1%  7.9%  9.2%  8.5%  
     Korea, Rep. of  3.0%  3.6%  3.6%  4.3%  3.8%  5.5%  
     Mexico  2.4%  2.4%  1.7%  1.9%  3.0%  3.6%  
     Japan  3.0%  3.0%  3.9%  3.2%  2.9%  2.6%  
a Based on seasonally adjusted GDP at basic prices, in chained 2012 dollars.  
Note:  Based on North American Industry Classification System (NAICS) codes: 3311 and 3312  
Source:  Information provided by the authorities; and Government of Canada, Statistics Canada and Trade 
Data Online.  
4.166.   Resulting from a Section 232 of the U.S. Trade Expansion Act of 1962 investigation, on 
31 May 2018, the United  States announced the imposition of tariffs of 25% on imports of steel from 
Canada and other countries, to take effect on 1 June 2018. In response to the imposition of these 
tariffs, on 31 May 2018, Canada announced its intention to impose, on 1 July 2018,  surtaxes or 
similar trade -restrictive countermeasures on up to CAD 16.6 billion in imports of steel, aluminium 
and other products from the United States, equivalent to the value of the 2017 Canadian exports 
affected by the U.S. measures.  
4.167.   On 29 June 2018,  the Canadian Government announced that it would make available up to 
CAD 2 billion to defend and protect the interests of Canadian workers and businesses in the steel, 
alumin ium and manufacturing industries. Included in a suite of measures is support of u p to 
CAD 250 million through the Strategic Innovation Fund (SIF), to help bolster the competitiveness of 
Canadian manufacturers and better integrate the Canadian supply chain of steel and alumin ium. 
This support programme enables steel and alumin ium producers to enhance their production 
capabilities, to better meet the product demand from end -users within Canada. As at 
31 January  2019, funding for two steel producers had been announced under the SIF, for a total 
contribution of CAD 79.9 million.  
4.168.   The a uthorities are of the view that restrictions on global steel trade raise the risk of  
substantial trade diversion of foreign steel products into Canada. On 25 October 2018, the 
Government of Canada imposed provisional safeguard measures on seven categories of steel 
products, in response to an increase in imports that caused, or threatened to cause, serious injury 
to domestic producers. The provisional safeguards are in the form of TRQs whereby a 25% surtax 
applies to imports of subject goods that exceed a sp ecified quantity threshold based on historical 
import volumes. The provisional safeguards will be  in place for 200 days, pending an inquiry by the 
CITT into whether longer -lasting safeguards are necessary .141 
4.4  Services  
4.4.1   Financial services  
4.4.1.1   Overview  
4.169.   Canada has o ne of the soundest financial services industries in the world, ranking 7th out of 
137 economies in terms of financial market development, according to the World Economic Forum 's 
(WEF) 2017-18 Global Competitiveness Report.142 The sector is a major contributo r to the economy, 
accounting for over 6% of GDP in 2017. It is relatively concentrated, with a few large institutions 
                                                
141 WTO documents G/SG/N/6/CAN/4, G/SG/N/7/CAN/1, G/SG/N/11/CAN/1, 15 October 2018 and 
G/SG/N/7/CAN/1/Suppl.1, 5 February 2019.  
142 World Economic Forum (2017), The Global Competitiveness Report, 2017 -18, Geneva. Viewed at: 
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf .  WT/TPR/S/389 • Canada  
 
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  accounting for the bulk of total assets. In the deposit -taking industry, the top six federally -regulated 
banks (plus provincially -regulate d Desjardins Group, an organization of caisses populaires  and credit 
unions) account for 94% of total deposit -taking institution assets. Similarly, about 90% of the assets 
of federally -regulated life and health insurance companies are held by the three lar gest domestic 
firms. Canada 's deposit -taking system is well capitalized (Table 4.23).  
Table 4.23 Selected financial soundness indicators, deposit -taking institutions 2013 -18 
(%, unless otherwise indicated)  
  2013  2014  2015  2016  2017  2018  
Q2 
Total assets (CAD billion)  3,854  4,179  4,666  5,014  5,277  5,408  
Total assets (% of GDP)  203 210 234 246 246 247 
Total capital ratio  14.3 14.2 14.2 14.8 14.8 15.2 
Tier 1 ratio  11.7 11.9 12.1 12.5 12.9 13.2 
Capital to assets ratio  5.0 4.9 5.1 5.2 5.2 5.2 
Ratio of non -performing loans to gross loans  0.57 0.52 0.51 0.59 0.48 0.41 
Return on assets (net income/end -period assets)  1.1 1.1 1.0 1.0 1.1 1.2 
Return on equity  22.3 22.5 20.7 19.9 21.4 22.4 
Liquid assets as share of total assets  11.3 11.0 11.5 10.9 10.7 10.7 
Foreign exchange loans as share of total loans  27.7 30.1 33.4 34.3 35.6 36.3 
Source:  IMF Financial Stability Indicators Database (2019) and information provided by the Canadian 
authorities.  
4.170.   The financial sector 's legal and institutional framework remained broadly unchanged since 
the last Review. The main federal financial institutions statutes are: The Bank Act, the Insurance 
Companies Act, and the Trust and Loan Companies Act. These statutes contain sunset provisions 
that require their renewal by Parliament every five years. These provisions encourage the periodic 
review of the federal financial section framework, to ensure it remains robust and technically sound.  
4.171.   Over 2016 and 2017, as part o f its regular review of the federal framework, Finance Canada 
undertook a broad consultations process with stakeholders. Overall, stakeholders indicated that the 
federal framework is functioning well, but recommended targeted amendments to ensure that it 
remains up to date with trends and emerging issues, including technological innovation and changes 
in the business models of financial institutions.  
4.172.   The first two phases of measures from the review of the federal framework were announced 
in Budget 2018 and introduced in the Budget Implementation Act, 2018, No.1 and in the Budget 
Implementation Act, 2018, No.2. The first phase of measures reset the sunset date in the financial 
institution statutes and brought forward priority items from the review. These incl uded:  
• adapting the federal framework to the emergence of financial technology;  
• introducing a new infrastructure investment authority for life and health insurance 
companies; and  
• providing flexibility for regulated non -bank deposit -taking institutions to us e bank 
terminology to describe their products and services.  
 
4.173.   A second phase of measures introduced a number of targeted amendments in response to 
specific issues identified during the consultation process. This included establishing thresholds below 
which financial institutions can acquire a substantial investment of certain entities without having to 
seek approval by the Superintendent of Financial Institutions. This reduces administrative burdens 
on financial institutions, while allowing the Office of the  Superintendent of Financial Institutions 
(OSFI) to focus resources on approvals of transactions entailing material risks.  
4.174.   Other federal financial sector statutes, such as the Canadian Payments Act, 2001, the 
Payment Clearing and Settlement Act, and the Pension Benefits Standards Act, are not subject to 
automatic review. In 2015, the Canadian Payments Act  was amended to enhanc e the independent 
decision -making of Payments Canada 's board, and make Payments Canada more accountable to the 
Government and to the public.  Amendments to the Payment Clearing and Settlement Act, to 
implement a resolution framework for Canada 's systemicall y important financial market 
infrastructures, received Royal Assent on 21 June 2018.  WT/TPR/S/389 • Canada  
 
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  4.175.   The regulation and oversight of financial institutions is shared among federal, provincial, and 
territorial authorities. At the federal level, the Minister of Finance is responsible for the overall 
stability of the sector. The prudential oversight function is carried out by the OSFI, an independent 
agency, which reports to Parliament through the Minister of Finance. The OSFI 's functions include 
advancing a regulatory frame work to control and manage risks; regulating and supervising 
federally -regulated financial institutions and pension plans to determine whether they are in sound 
financial condition and meeting their legislative requirements; monitoring and evaluating 
system-wide or sectoral developments that may have a negative impact on the financial condition 
of federally -regulated financial institutions; and providing input into developing and interpreting 
legislation and regulations. The OSFI also issues guidelines and provides regulatory approvals for 
certain types of transactions. The Bank of Canada is responsible for promoting the stability and 
efficiency of the financial system, in addition to its mandate of implementing monetary policy. It 
carries out this mandate b y, inter alia , providing liquidity to the financial system, overseeing critical 
clearing and payment systems, and identifying systemic risks to the financial system. The Financial 
Consumer Agency of Canada (FCAC) is the federal government agency responsibl e for protecting 
consumers of financial services and products. The Canada Deposit Insurance Corporation (CDIC), a 
federal Crown corporation, provides insurance on certain deposits placed with its member 
institutions, and is the resolution authority for its  members. All these federal institutions collaborate 
through the Financial Institutions Supervisory Committee (FISC).  
4.176.   Clearing and settlement systems (also known as Financial Market Infrastructures or FMIs) 
are a critical component of Canada 's financial s ystem, as they process about CAD 200 billion worth 
of transactions daily.143 Although they operate freely, those that have the potential to pose systemic 
risk or payments system risk are subject to a closer oversight by the Bank of Canada 's Payment 
Clearing and Settlement Act. They are required to observe applicable risk -management standards 
and provide the Bank of Canada with advance notice of any significant change to their operations, 
rules, or procedures. While the Bank of Canada is permitted to charge fe es for oversight services, it 
presently does not. The following systems were designated as systemically important FMIs144: The 
Large Value Transfer Systems (LVTS) owned and operated by Payments Canada145; CDSX, a clearing 
system for debt and securities, operat ed by the Canadian Depository for Securities Limited; and the 
Canadian Derivatives Clearing Service, operated by the Canadian Derivatives Clearing Corporation. 
The Automated Clearing Settlement System (ACSS) is also owned and operated by Payments Canada 
and has been designated as a Prominent Payment System.  
4.177.   In 2018, the Payment Clearing and Settlement Act was amended to introduce a resolution 
framework for the designated FMIs. The legislative amendments received Royal Assent and will be 
brought into force o nce related regulations have been developed to fully implement the FMI 
Resolution Framework. A payment modernization project is also underway. Payments Canada has 
embarked on a multi -year initiative to modernize the core clearing and settlement systems in 
Canada. Launched in 1999, the LVTS will be replaced with a safer, more flexible and resilient 
high-value payment system (Lynx). The ACSS, launched in 1984, will be gradually replaced with a 
more efficient retail system. Payments Canada is also developing a  new real -time retail payment 
system (Real -Time Rail) as a third core payment system to better serve the needs of consumers and 
merchants, and to provide a platform for innovation in the Canadian payments ecosystem. Access 
to the Real -Time Rail, as with al l core payment systems, will be open and risk -based, consistent with 
international standards.146 
4.178.   Financial services companies operating in Canada can benefit from various incentives 
available at the federal level and in some provinces and territories. At the  federal level, financial 
                                                
143 Department of Finance Canada online information. Viewed at: 
https://www.fin.gc.ca/activty/consult/rcpa -elcp-eng.asp . The CAD 200 billion  figure is for the co re payment 
systems value only. A verage daily values and volumes for all the designated sys tems, including derivatives 
reaches  CAD 13.2 trillion daily; without derivatives, it is CAD 1.1 trillion daily.  
144 Bank of Canada (2018), Financial System Review , June 2018 . Woodman, E., Chung, L., and Chande, 
N., Establishing a Resolution Regime for Canada 's Financial Market Infrastructures . Viewed at: 
https://www.bankofcanada.ca/wp -content/uploads/2018/06/fsr -june2018.pdf . 
145 Payments Canada is a not -for-profit organizat ion, created under the Canadian Payments Act, 2001. 
Its membership includes the Bank of Canada, all deposit -taking institutions, authorized foreign banks, life 
insurance companies, securities dealers, and money market mutual funds.  
146 In December 2018, Paym ents Canada published an update on the current status of the 
modernization program me. This update may be viewed at : http://www.payments.ca/about -
us/news/payments -canada -publishes -modernization -delivery -roadmap -2018-update . WT/TPR/S/389 • Canada  
 
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  services companies have access to tax credits on eligible R&D -related expenditures, under the 
Scientific Research and Experimental Development (SR&ED) Program. They are also eligible for the 
various commercial financing options fa cilitated by Export Development Canada or provided by the 
Business Development Bank of Canada.  
4.179.   Some provincial authorities provide incentives that are geared mainly towards attracting 
companies engaged in international financial activities. Under Quebec 's International Financial 
Center (IFC) Montréal, companies establishing a new project in Montréal can receive, for one year, 
a tax credit equivalent to 24% of the salary of local employees (up to CAD 18,000 per employee). 
In addition, foreign specialists can  claim deductions on their taxable income at rates ranging from 
100% for the first year to 37.5% for the fifth year. British Columbia 's Advantage BC - International 
Business Activity Program is similar, and targets companies and individuals engaged in inte rnational 
activities. These companies can claim a refund of up to 100% of the provincial corporate tax paid 
on income derived from their international activities. Similarly, international business specialists can 
claim a refund of the provincial tax paid o n income derived from their international activities, at 
rates ranging from 100% for the first two years to 25% for the fifth year.  
4.180.   The OSFI participates actively in the development of international rules in the financial 
sector. It is a member of the Fina ncial Stability Board, the Basel Committee on Banking Supervision, 
and the International Association of Insurance Supervisors. The OSFI also participates in 
information -sharing agreements with foreign supervisory authorities that regulate significant 
opera tions of Canadian banks and insurers. To date, the OSFI has concluded about 40 information -
sharing agreements. Some of the more recent information sharing agreements and memoranda of 
understanding include those signed with the China Insurance and Banking R egulatory Commission, 
the Monetary Authority of Singapore, and the Superintendencia Financiera  de Colombia . 
4.4.1.2   Banking services  
4.4.1.2.1   Commercial banks  
4.181.   Canada 's banking industry is considered as one of the soundest in the world, according to 
WEF's Global Competitive ness Report.147 As at end -2018, the federally -regulated banking sector 
comprised 35 domestic banks, 21 foreign -bank subsidiaries, 28 full service foreign -bank branches, 
4 foreign -bank lending branches, and 23 foreign -bank representative offices. Foreign bank s are 
particularly active in corporate lending, trade finance, and capital markets. Federally -regulated 
banks account for the majority (91%) of total deposit -taking institution assets. Financial 
cooperatives (credit unions and caisses populaires  – discusse d in the following section) account for 
9%. The industry remains highly concentrated, with the six largest domestic banks holding about 
90% of the total assets of federally -regulated deposit -taking institutions. During the TPR period, 
Canadian banks contin ued to expand their international operations, particularly in retail banking, 
capital markets, and wealth management. Their international assets increased by 43% between 
2010 and 2015, to reach CAD 1.3 trillion.148 Canada 's banking system is sound, and the n on-
performing loan ratio remained below 1% over the past few years (Table 4.23).  
4.182.   In Canada, banks can only incorporate at the federal level under the Bank Act. A foreign 
bank may operate through a subsidiary, a branch, or a representative office. The proc esses for 
incorporating a bank, or a subsidiary of a foreign bank, or establishing a foreign bank branch are 
similar. They involve filing an application with the OSFI, with extensive information about the 
applicants and their plans for future conduct and t he development of the business of the bank. 
Incorporation is subject to the approval of the Minister of Finance, and the issuance of an Order to 
Commence and Carry on Business by the OSFI.  
4.183.   Upon receipt of the Order to Commence and Carry on Business, domest ic banks and trust 
companies, and subsidiaries of foreign banks automatically become members of the Canada Deposit 
                                                
147 According to the Global Competitiveness Report, 2017 -18, Canada ranks 2nd in terms of the 
soundness of its banks, which is a component of the GCI's  Financial Market Development pillar. See: World 
Economic Forum (2017), The Global Competitiveness Report, 2017 -18. World Economic Forum, Geneva. 
Viewed at: http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf .  
148 Department of Finance Canada (2016), Supporting a Strong and Growing Economy: Positioning 
Canada 's Financial Sector for t he Future,  Ottawa, August.  WT/TPR/S/389 • Canada  
 
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  Insurance Corporation (CDIC). The CDIC insures deposits such as those in savings accounts, 
chequing accounts, term deposits with original ter ms to maturity of less than five years, and money 
orders, up to a maximum of CAD 100,000 per depositor per insured category. Entities that solely 
take wholesale deposits (i.e. deposits above CAD 150,000) may opt out from CDIC membership. 
Provincially -regulated deposit -taking institutions that conduct business substantially similar to the 
business of a company to which the Trust and Loan Companies Act applies (see Section 4.4.1.2.2) 
may, upon successful application, become members of the CDIC. Given that the y are prohibited 
from accepting retail deposits, foreign banks that operate in Canada on a branch basis cannot 
become members of the CDIC. All CDIC members are assessed annual CDIC premiums, pursuant to 
a differential Premiums Framework that is set out in the CDIC Act and CDIC By -laws. The Framework 
categorizes each member into one of four premium categories, according to a number of quantitative 
and qualitative criteria. CDIC By -laws set out the premium rate that accompanies each premium 
category, and the maximum premium rate is contained in the CDIC Act. The premium rate is 
multiplied by the volume of insured deposits of that member as at a specified date. All banks, except 
foreign lending branches, are required to be members of Payments Canada (formerly t he Canadian 
Payments Association).  
4.184.   Canadian banks are generally prohibited from engaging in any business other than the 
business  of banking. Various Bank Act restrictions result in a separation between the banking, 
commercial (non -financial) services, insu rance, auto leasing, and securities dealing sectors of the 
economy. The business of banking includes providing financial services, acting as a financial agent, 
providing investment counselling services and portfolio management services, and issuing and 
operating payment, credit or charge cards. One of the key issues noted in the most recent review of 
the federal framework is the involvement of financial institutions (including banks) in the financial 
technology (FinTech) industry. While the framework has ev olved over time to reflect the increased 
use of technology in the provision of financial services, it still restrict s financial institutions from 
undertaking commercial services, or investing in firms offering commercial services, through 
technology. Stake holders noted that such limitations prevent activities and investments in FinTech, 
which frequently blend financial service activities with commercial service activities. Stemming from 
this stakeholder input, Parliament passed legislation that provides gre ater flexibility for 
federally -regulated financial institutions (including banks) to undertake in -house commercial 
activities related to the provision of financial services and invest in firms that blend financial and 
commercial services.149 These activities  will be subject to terms and conditions prescribed in enabling 
regulations, which are forthcoming.  
4.185.   Subsidiaries of foreign banks are incorporated under the Bank Act and are subject to the 
same regulatory and prudential requirements as domestic banks. Full -service and lending branches 
of foreign banks are subject to lighter regulatory and prudential requirements but are subject to 
commensurate restrictions on the type of operations they can carry out. They are not permitted to 
accept any retail deposits in Canada. Full -service branches may collect wholesale deposits and are 
required to maintain assets on deposits equivalent to at least 5% of their liabilities (with a minimum 
of CAD 5 million). Lending branches are prohibited from borrowing or accepting depos its, except 
from other financial institutions. They are required to maintain assets on deposits equal to 
CAD 100,000.  
4.186.   Foreign banks may conduct business with Canadians without being required to obtain a 
licence, provided that they do not "carry on busines s in Canada ", or maintain an office in Canada. 
They can also access the domestic capital markets, as long as they do not "carry on business in 
Canada " (through an agent or otherwise), or maintain an office in Canada, in connection with those 
activities. Foreign banks can also obtain a licence to establish their presence in Canada through a 
representative office, but such an office is not allowed to prov ide any financial services. It can only 
promote the services of the foreign bank, and act as a liaison between the foreign bank and its 
Canadian clients.  
4.187.   The acquisition of control of, or significant interest in, banks is subject to controls and 
restrictio ns that apply equally to domestic and foreign acquirers. The Minister of Finance 's approval 
is required for any acquisition of a significant interest (over 10%) of voting or non -voting shares in 
any bank. Some restrictions depend on whether the bank is cat egorized as small (i.e. with an equity 
capitalization of less than CAD 2 billion), medium (i.e. with a capitalization between CAD 2 billion 
and CAD 12 billion), or large (i.e. with a capitalization of CAD 12 billion or more). Small banks can 
                                                
149 Bill C-74, Budget Implementation Act, 2018, No. 1.  WT/TPR/S/389 • Canada  
 
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  be wholly priv ately-owned. Unless exempted by the Minister, medium banks are required to list at 
least 35% of their voting shares on a stock exchange in Canada, and those shares must be 
widely -held. Large -bank ownership must be widely held; no single investor may own mo re than 20% 
of any class of voting shares or 30% of non -voting shares. Canada 's six major banks (Bank of 
Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, 
Royal Bank of Canada, and Toronto -Dominion Bank) are curren tly the only ones classified as "large" 
by their capitalization . Although Laurentian Bank of Canada and Canadian Western Bank each have 
a capitalization of less than CAD  12 billion, the Bank Act deems them to be "large" (although the 
Minister has the discr etion to categorize each of them as a small or medium bank, as the case may 
be). 
4.188.   The prudential regulation of banks is the responsibility of the OSFI. In line with Basel 
Committee 's Basel III framework, banks are subject to minimum capital requirements. In  practice, 
Canadian banks ' capital ratios are well above the minimum requirements of 4.5% for the Common 
Equity Tier 1 (CET1), 6% for the Tier 1 capital, and 8% for the total capital (Table 4.23). Banks are 
also required to retain liquidity covering 100% o f their liquidity needs for 30 calendar days.150  
4.189.   Domestic systemically important banks (D -SIBs) are subject to heightened regulatory 
requirements, including a 1% surcharge on their CET1. The list of D -SIBs did not change during the 
review period, and includ es: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of 
Commerce, National Bank of Canada, Royal Bank of Canada, and Toronto -Dominion Bank. In 
November 2018, Royal Bank of Canada was designated by the Financial Stability Board as a global 
systemically important bank (G -SIB). It is the only designated Canadian G -SIB. At the provincial 
level, Desjardins Group Central 1 Credit Union, SaskCentral, Conexus Credit Union, and Affinity 
Credit Union were designated respectively by their provincial regul ators as domestic systemically 
important financial institutions.  
4.190.   D-SIBs are also required to hold a capital conservation buffer equivalent to 2.5% of their 
risk-weighted assets, in order to minimize risks of breach to minimum capital requirements.151 
Canadi an D-SIBs are also subject to a domestic stability buffer (DSB). The DSB is reviewed on a 
semi-annual basis, in June and December, is currently set at 1.75%, and must be met with Common 
Equity Tier 1 (CET1) capital only.152 D-SIBs are also expected to mainta in a countercyclical buffer 
(CCyB), as per Section 1.6 of the Capital Adequacy Requirements (CAR) Guideline. The OSFI decided 
not to activate the CcyB, given that the DSB already captures some of the same risks. Although t he 
CCyB has not been activated in Canada, Canadian banks are subject to the reciprocity arrangements 
applicable to countercyclical buffers (CcyBs) activated by Basel Committee member jurisdictions.  
4.191.   In September 2018, Canada 's Bank Recapitalization (Bail -in) Regime came into effect, 
strengt hening the bank resolution framework for D -SIBs. The purpose of the Regime is to provide 
an alternative to taxpayer -funded bail -outs. Canada 's Bail -in Regime allows authorities to quickly 
convert some of a failing D -SIB's debt into common shares, in order to recapitalize the bank and 
help restore it to viability. The legislative framework for the Regime received Royal Assent in 
June 2016. The Bail-in regulations, which came into force in September 2018, set out key features 
of the regime, including that the  rules only apply to debt issued by D -SIBs that is unsecured, 
tradable, transferable, and has an original term to maturity of at least 400 days. Such debt is held 
predominantly by foreign and domestic institutional investors, such as asset and fund manager s, 
typically as a small portion of these investors ' overall portfolios. The Bail -in regulations do not apply 
                                                
150 OSFI (2018), Capital Adequacy Requirements (CAR) Chapter 1 – Overview . Viewed at: 
http://www.osfi -bsif.gc. ca/Eng/Docs/CAR18_chpt1.pdf . 
151 OSFI (2018), Capital Adequacy Requirements (CAR) Chapter 1 – Overview . Viewed at:  
http://www.osfi -bsif.gc.ca/Eng/Docs/CAR18_chpt1.pdf . 
152 The Domestic Stabili ty Buffer applies only to D -SIBs and is intended to cover a range of systemic 
vulnerabilities that, in OSFI's supervisory judgement, are not adequately captured in the Pillar 1 capital 
requirements described in OSFI's CAR Guideline. Decisions on the calibr ation of the buffer are based on 
supervisory judgement, informed by analytical work on a range of vulnerabilities, and are made in consultation 
with the Financial Institutions Supervisory Committee. The level of the buffer ranges between 0 and 2.5% of a 
bank's total risk -weighted assets (RWA), calculated under the CAR Guideline. The level is the same for all 
D-SIBs and must be met with Common Equity Tier 1 (CET1) capital only. The specific vulnerabilities covered by 
the buffer are expected to evolve over ti me, and must have a system -wide impact that could materialize in the 
foreseeable future. The set of vulnerabilities currently addressed by the buffer include: (i) Canadian consumer 
indebtedness; (ii) asset imbalances in the Canadian market; and (iii) Canad ian institutional indebtedness. OSFI 
online information. Viewed at: http://www.osfi -bsif.gc.ca/Eng/Docs/dsb.pdf . WT/TPR/S/389 • Canada  
 
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  to deposits, including chequing accounts, savings accounts and term deposits such as Guaranteed 
Investment Certificates, which will continue to ben efit from the CDIC framework. As such, deposits 
are not convertible under the Regime. In addition to the scope of liabilities that are subject to the 
Regime, the Bail -in regulations set out: (a) the process and considerations to be followed when 
carrying o ut a conversion; (b) the disclosure requirements applicable to bank -issued instruments 
subject to conversion; and (c) the process to compensate investors who are made worse off as a 
result of a conversion, and accompanying resolution actions, relative to t he liquidation of the bank.  
4.4.1.2.2   Other deposit -taking institutions  
4.192.   Trust and loan companies, and financial cooperatives are an important feature of Canada 's 
financial system. The federal financial institutions statutes set out rules for federally -regulated 
deposit-taking institutions, which, in addition to banks, also include federal credit unions and trust 
and loan companies. Credit unions, caisses populaires,  and provincially -incorporated trust and loans 
companies are deposit -taking institutions regulated by t he provinces.  
4.193.   As at end -2018, there were 62 federally -regulated trust and loan companies (of which 
around 20 were bank -owned) holding assets worth CAD 358 billion. There were also around 
525 financial cooperatives (credit unions and caisses populaires ), serving over 10 million members 
and managing total assets of over CAD 400 billion in the third quarter of 2018.153  
4.194.   Trust and loan companies may incorporate either at the provincial level, and operate only 
within the jurisdiction of that province, or at the fe deral level, and operate in all provinces and 
territories. In practice, most of them incorporate at the federal level. Some provinces and territories, 
for example the Northwest Territories and Ontario, do not provide for the provincial incorporation of 
trust and loan corporations. Some provinces, however, still require federally -comparted trust and 
loan companies to register with provincial or territorial authorities, for example in the case of Ontario. 
Federally -incorporated trust and loan companies are re gulated by the OSFI under the Trust and Loan 
Companies Act. Like banks, they may accept deposits from the public, and lend or invest them. They 
are subject to the same regulatory requirements as banks, although there is no requirement for 
"large institutio ns", i.e. those with equity over CAD 12 billion to be widely held. Unless exempted by 
the Minister of Finance, companies with equity over CAD 2 billion are required to list at least 35 % of 
their voting shares on a recognized stock exchange in Canada, and t hose shares must be 
widely -held. 
4.195.   Financial cooperatives can incorporate either under provincial or territorial laws, or under 
the federal Bank Act (either as a new institution, or by transitioning from the provincial to the federal 
framework). Currently, most of them are regulated provinc ially. They are typically affiliated through 
credit union centrals, which provide liquidity and payment services to their corporate members. The 
Canadian Credit Union Association (formerly the Credit Union Central of Canada) is the national 
trade associati on representing financial cooperatives (except those from Quebec).  
4.196.   In 2012, the Bank Act was amended to allow provincial financial cooperatives to migrate to 
federal jurisdiction, as federal credit unions. Such a move would enable them to operate across t he 
country while subjecting their members ' eligible deposits to the CDIC protection regime rather than 
to a provincial deposit insurance regime. In 2016, the Government amended the Bank Act to address 
the unique transitional risks that credit unions enteri ng the federal framework may face, due to 
differences between federal and provincial regimes. These relate to technical procedural 
requirements and provide authority to offer a transitional loan guarantee. In 2016, the UNI Financial 
Cooperation (an amalgam ation of 15 caisses populaires  from New Brunswick) became the first 
federal credit union. In 2018, the Coast Capital Savings Federal Credit Union transitioned from the 
British Columbian framework to the federal one. However, the majority of financial coope ratives 
continue to operate at the provincial level.  
4.197.   Under the current review of the financial sector legislation, the sunset date in the 
Cooperative Credit Associations Act was not renewed, which means that no associations will be 
authorized to carry on b usiness under the Act after 29 March 2019. The Act governs retail 
associations. These associations are organized and operated on cooperative principles and are 
                                                
153 Canadian Credit Unit Association (CCUA), National Sector Results, Third Quarter 2018. Viewed at: 
https://www.ccua.com/~/media/CCUA/About/facts_and_figures/documents/Quarterly%20 National%20System
%20Results/3Q18SystemResults -29-Nov%20 -18.pdf . WT/TPR/S/389 • Canada  
 
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  permitted to act as deposit -taking institutions, subject to the same restrictions and safeguards  as 
other deposit -taking institutions. They may provide services to, and take deposits from, 
non-members. There are no active institutions currently subject to the Act.  
4.4.1.2.3   Insurance services  
4.198.   As at end -2018, there were 68 federally -incorporated life insurers, with assets totalling 
around CAD  1.5 trillion. The 29 foreign life insurer branches accounted for about 2% of the industry 's 
total assets. The life insurance industry also comprises eight Canadian and five foreign fraternal 
benefit societies, incorporated at the federal level. There is also one Ontario fraternal benefit society. 
As in the banking sector, the industry is highly concentrated, with the three largest 
federally -regulated life and health insurers accounting for about 90% of the assets and net inc ome 
of the federally -regulated sector.154  
4.199.   The property and casualty segment of the industry is served by 152 federally -incorporated 
insurance companies and a number of companies incorporated at provincial/territorial levels. There 
are 70 federally -regulated  foreign companies and 3 mortgage insurers: the Canada Mortgage and 
Housing Corporation (CMHC), a Crown corporation with over 60% of the insured mortgage market, 
and two private companies: Canada Guaranty Mortgage Insurance Company and Genworth Financial 
Mortgage Insurance Company Canada.  
4.200.   The prudential regulation of federally -regulated insurers is conducted by the OSFI, while 
provincial and territorial regulators address market conduct activities and the prudential supervision 
of insurers incorporated at t he provincial and territorial level. In most cases, insurance 
intermediaries are also overseen at the provincial level by self -regulatory organizations (SROs). 
SROs oversee insurance agents, brokers, and adjusters in Alberta, British Columbia, Manitoba, an d 
Saskatchewan, while regulatory authorities perform this function in New Brunswick, Newfoundland 
and Labrador, Yukon, and Prince Edward Island. In Ontario and Quebec, regulatory authorities 
exercise the function, with a complementary role for SROs in cert ain areas (i.e. insurance broker 
regulation in Ontario, and ethical and professional standards in the property and casualty (P&C) 
industry in Quebec). The Canadian Council of Insurance Regulators (CCIR) is an umbrella 
organization for provincial regulators . Similarly, the Canadian Insurance Services Regulatory 
Organization is the forum for regulators of insurance intermediaries. The insurance industry is also 
represented by market -segment -specific associations, such as the Canadian Life and Health 
Insurance  Association, for the life insurance sub -industry; and the Insurance Bureau of Canada, for 
the property and casualty sub -industry.  
4.201.   The Insurance Companies Act is the main statute governing insurers in Canada. Insurers 
may be incorporated as a Canadian insu rance company, with foreign insurers having the option of 
establishing a branch in Canada. Insurance companies can incorporate either federally or 
provincially. Approvals to establish a Canadian insurance company or a branch in Canada are subject 
to a revi ew by the OSFI and the approval of the Finance Minister. Once established at the federal 
level, insurers must be licensed in each provincial jurisdiction in which they intend to carry on 
business. The overall process generally takes between 12 and 18 month s, from the initial application 
to completion. Insurance companies are subject to minimum capital requirements (Table 4.24). The 
two private mortgage insurers are designated as approved mortgage insurers under the Protection 
of Residential Mortgage or Hypo thecary Insurance Act.  
4.202.   The licensing requirement for a foreign company depends on whether the company is 
deemed to be "insuring a risk in Canada" or not. The OSFI's "Advisory"155 sets out criteria for 
determining whether a foreign company's activity qualifie s as insuring a risk in Canada or not. These 
criteria typically do not focus on the location of the risk, but rather on the extent to which the 
insurance business activity occurs within Canada.  
4.203.   Insurers may also carry on their business by incorporating pr ovincially.  However, some 
provincial regulators are encouraging companies to establish or move under the federal regime. 
Ontario passed legislative amendments which have not yet been proclaimed that, if proclaimed, 
would prohibit the incorporation of new O ntario insurance companies except under extremely limited 
circumstances.  
                                                
154 These are: Great -West Life Assurance Company, Manulife Financial Corporation, and Sun Life 
Financial Inc.  
155 OSFI Advisory 2007 -01— Insurance in Canada of Risks , last revised in 2009.  WT/TPR/S/389 • Canada  
 
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  Table 4.24 Main requirements for establishing an insurance business  
 Incorporation of a 
Canadian insurance 
company  Establishment of a C anadian 
branch of a foreign company  Establishment of a 
provincial insurance 
company  
Application 
steps  Letters Patent (from the 
Finance Minister).  
Issuance of the Order to 
Commence and Carry on 
Business (by the OSFI).  
Application for and 
obtention of licence from 
provincial jurisdictions in 
which to operate, as 
necessary.  Order approving the insuring in 
Canada of risks by a foreign 
entity (by the OSFI, with the 
approval of the Finance 
Minister).  Incorporate as per the 
requirements of the 
province in wh ich 
incorporating and apply 
to provincial regulator 
for licence.  
Apply for and obtain 
licence from additional 
provincial jurisdictions 
in which to operate, as 
necessary.  
Fees OSFI service fees: 
CAD 32,000.  
Provincial licence fees.  OSFI service fees: CAD 32,000.  
Provincial licence fees.  Provincial licence fees, 
where applicable.  
Minimum 
capital/asset 
standards  Paid-in capital: minimum of 
CAD 5 million.  
Solvency ratio of 300% for 
non-life insurers and 150% 
for life insurers for the first 
three years of  operation.  Assets vested in Canada: 
minimum of CAD 5 million.  
Solvency ratio of 300% for non -
life insurers and 150% for life 
insurers for the first three years 
of operation.  
Consolidated assets of 
CAD 1 billion for life insurers 
and CAD 200 million for no n-life 
insurers.  As required by the 
incorporating province.  
Source:  Information provided by Canadian authorities.   
4.204.   Canada 's federal insurance legislation prohibits the establishment of "composite " companies. 
Insurers must obtain licences for the classes of insurance they intend to underwrite. However, some 
provinces, e.g. Ontario, permit the establishment of composite insurance companies, although none 
are currently licensed, and recent amendments to its legislation, if proclaimed, would not allow this 
in the future.  
4.205.   The Insurance Companies Act provides broad flexibility for federally -incorporated insurance 
companies to engage in financial services activities, either in -house or through investments  in other 
entities but, for prudential and policy reasons, generally restricts their ability to engage in 
non-financial commercial activities. Over time, targeted flexibility has been provided to insurance 
companies to engage in certain non -commercial acti vities. For instance, amendments to the 
Insurance Companies Act were introduced through the Budget Implementation Act, 2018, No.  2, to 
provide flexibility for insurance companies to invest in public infrastructure; as at February 2019, 
these amendments had  not yet been brought into force, and the regulations required to fully 
implement the amendments to the Act were being developed. In the context of the federal financial 
framework review,  the Insurance Companies Act was further amended to provide federally -regulated 
insurance companies greater flexibility to undertake, invest, and refer to FinTech services. There are 
also some restrictions at the provincial level. For instance, Alberta -incorporated insurers, including 
life insurers, are limited from holding  a substantial interest (greater than 10%) in an unincorporated 
body or a corporate body, unless it is a prescribed entity (currently, there are no prescribed entities).  
4.206.   The licensing of insurance intermediaries is governed by provincial laws, with the lic ensing 
requirement applying to both individuals and firms employing them. In the Yukon, entities are not 
currently required to be licensed. In other provinces, licensing is required. For example, Ontario 
requires insurance intermediaries to be licensed; in  Manitoba intermediaries (agents/brokers) are 
required to be licenced by the Insurance Council of Manitoba (ICM); in Prince Edward Island, 
licensing of individuals is required under the Insurance Act; and in New Brunswick, the Financial and 
Consumer Servic es Commission New Brunswick (FCNB) is responsible for the licensing of 
intermediaries - currently, only individuals and not agencies, brokerages or adjusting firms may be 
licensed.  WT/TPR/S/389 • Canada  
 
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  4.207.   The acquisition of control or ownership of any insurance company with equi ty of CAD 2 billion 
or more is subject to restrictions. Unless exempted by the Minister of Finance, such companies are 
required to have 35% of their voting shares listed on a recognized stock exchange in Canada, and 
those shares must be widely held. Furthe rmore, insurance companies that have demutualized, 
whose "capitalization " was CAD 5 billion or more immediately before demutualization, must be widely 
held or must be held by an upstream insurance company that is, itself, widely held: no single investor 
may own more than 20% of any class of voting shares or 30% of non -voting shares.156 This is the 
case for the Sun Life Assurance Company of Canada and the Manufacturers Life Insurance Company.   
4.208.   In general, insurance companies are subject to the same general tax  regimes as other 
businesses. Some taxes are collected at rates that are specific to the industry. A federal capital tax 
on financial institutions is levied on life insurance companies, at the rate of 1.25% on their taxable 
capital employed in Canada (subj ect to a capital deduction of CAD 1 billion). A 10% excise tax is 
collected on certain premiums paid to insurers who are not located in Canada and not licensed to 
sell insurance in Canada.  
4.209.   Since January 2018, federally -regulated life insurers have been su bject to the OSFI 's new 
capital guidelines, the Life Insurance Capital Adequacy Test (LICAT).157 Under the LICAT, the CAR 
may vary depending on a number of factors, including changes in the business and economic 
environment. Compared to its predecessor (the Minimum Continuing Capital Surplus Requirement 
or MCCSR test), the LICAT relies on more advanced and risk -based techniques, and on more current 
and granular data to measure credit, market and insurance risks. It also has an explicit measure for 
operational  risk. Life expectancy or the effects of a low interest rate environment may impact 
insurers ' LICAT ratios, and the degree of the impact may vary based on, for example, an insurer 's 
types of products, the risks assumed, and business strategies and operatio ns. The aggregate LICAT 
ratio of the major life insurance companies for the first three quarters in 2018 was approximately 
130%, which is above the OSFI 's target requirement of 100%.  
4.210.   Certain coverages, for example, for marine, mortgage, aviation, nuclear, and environmental 
surety insurance, can be compulsory, based on federal rules and regulations in some sectors . Other 
compulsory insurance requirements, including automobile insurance, vary from jurisdiction to 
jurisdiction. In British Columbia, Saskatchewa n, and Manitoba, the compulsory minimum civil liability 
automobile insurance is provided by a monopoly government insurer. In some provinces, minimum 
coverage may also be compulsory. For instance, the Prince Edward Island Insurance Act sets 
compulsory mini mum third -party liability automobile insurance coverage of CAD 200,000.  
4.211.   Insurance companies set their premiums freely. Premium rates for automobile insurances 
are monitored by some provincial administrative tribunals, utility boards, and insurance regulato rs. 
There is no federal tax on insurance premiums; taxes are collected at the provincial level.  Provinces 
and territories levy their own taxes on insurance premiums.  
4.4.1.3   Securities  
4.212.   The exchange market in Canada is segmented, and includes the Toronto Stock Exch ange, 
which provides the main market for senior equity securities, and the Aequitas Neo Exchange, the 
other senior recognized exchange. Other exchanges include the TSX Venture Exchange, an exchange 
for the securities of early -stage businesses, the Canadian  Securities Exchange for emerging issuers, 
and the Montreal Exchange Inc./ Bourse de Montréal , which facilitates the trade of derivative 
products. There are also a number of alternative trading systems in place in Canada, which bring 
together buyers and sel lers of securities. Canada hosts some major global financial centres.  Toronto 
was ranked the 7th largest global financial centre, according to the most recent Global Financial 
Centres Index  ranking, published by Z/Yen Group.158 Montréal and Vancouver ranked 24th and 15th, 
respectively, according to the same ranking. The World Federation of Exchanges ranked the Toronto 
Stock Exchange 9th in October 2018.  
                                                
156 Demut ualization is the process by which a customer -owned mutual organization or cooperative 
changes legal form to a joint stock company.  
157 The Life Insurance Capital Adequacy Test (LICAT) replaces the Minimum Continuing Capital and 
Surplus Requirement (MCCSR) r atio. 
158 Z/Yen Group (2018), The Global Financial Centres Index 23 , March 2018. Viewed at: 
https://www.longfinance.net/media/documents/GFCI23.pdf .  WT/TPR/S/389 • Canada  
 
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  4.213.   Securities markets are regulated by the 13 provincial and territorial securities regulators.159 
The Canadian Securities Administrators (CSA) is an umbrella organization of provincial and territorial 
securities regulators, whose objective is to improve, coordinate, and harmonize the regulation of the 
Canadian capital markets. Two self -regulatory organizations also  operate across multiple 
jurisdictions: The Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual 
Fund Dealers Association of Canada (MFDA). The IIROC 's functions include setting and enforcing 
rules and standards regarding investment  dealer firms and their employees and regulating trading 
activities on debt and equity marketplaces in Canada.  As at end -2018, there were 171 investment 
dealers registered with the IIROC, down slightly from 2014.160 The Mutual Fund Dealers Association 
of Can ada (MFDA) provides oversight to dealers that distribute mutual funds and exempt 
fixed-income products.  
4.214.   There are three main categories of registration under provincial securities legislation for 
firms: dealers, advisers, and investment fund managers.161 All of them are required to register with 
the securities regulatory authority in each province or territory where they do business. To facilitate 
the registration process, regulators have created a common registration regime, under the National 
Instrument 31 -103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. 
Once registered, dealer firms are generally required to become members of the IIROC or the MFDA, 
as applicable. Some provinces delegated some registration activities to the IIROC . For instance, i n 
Alberta, British Columbia, Saskatchewan, New Brunswick, and Newfoundland and Labrador, dealer 
firms can register directly with the IIROC. Likewise, Ontario and Quebec delegated to the IIROC 
their registration powers with respect to indiv iduals who are carrying out certain functions with 
investment dealers.  
4.215.   All provincial regulators, except Ontario, participate in the "passport system ", which, for the 
matters covered by the passport, gives market participants approval in all passport jurisdictions by 
obtaining a decision from its principal regulator and meeting the requirements of specific harmonized 
laws. Although Ontario does not participate in the system, the passport regulators accept the Ontario 
Securities Commission 's decisions u nder passport. Non -Ontario market participants can obtain 
access to the market in Ontario through an interface system, in which the Ontario Securities 
Commission makes its own decision but generally relies on the review by the principal regulator.  
4.216.   The Can adian Investor Protection Fund (CIPF) and the MFDA Investor Protection Corporation 
are compensation or contingency funds of the IIROC and the MFDA, respectively, which protect 
investors in the event of insolvency or bankruptcy of one of their respective me mbers. The coverage 
is paid for by members. Coverage for clients is generally available in the amount of up to 
CAD 1 million.162 
4.217.   The governments of Canada, British Columbia, Saskatchewan, Prince Edward Island, 
New Brunswick, Ontario, and Yukon continue to wo rk towards establishing a Cooperative Capital 
Markets Regulatory System. The initiative would result in the establishment of a single regulator, 
the Capital Markets Regulatory Authority, responsible for administering uniform provincial securities 
law in pa rticipating provinces and territories, and complementary federal legislation addressing 
capital markets -related systemic risk, data collection and criminal offences on a national basis.  
4.218.   Canadian securities administrators also participate in international and regional 
organizations, such as the International Organization of Securities Commissions, the Council of 
Securities Regulators of the Americas, and the North American Securities Administrators Association. 
There are no federal taxes specific to the sec urities industry.  
                                                
159 These are: the Alberta Securities Co mmission; the British Columbia Securities Commission; the 
Manitoba Securities Commission; the Financial and Consumer Services Commission (New Brunswick); the 
Office of the Superintendent of Securities Service (Newfoundland and Labrador); the Office of the 
Superintendent of Securities Northwest Territories; the Nova Scotia Securities Commission; the Nunavut 
Securities Office; the Ontario Securities Commission; the Office of the Superintendent Securities Consumer 
(Prince Edward Island); the Autorité des March és Financiers  (Quebec); the Financial and Consumer Affairs 
Authority of Saskatchewan; and the Office of the Yukon Superintendent of Securities.  
160 IIROC online information. Viewed at: http://www.iiroc.ca/industry/Documents/PeerGroupList_en.pdf .  
161 There are three main categories  of registration, but each such category is sub -divided into different 
categories depen ding on the registrant's characteristics, for a total of eight categories for market 
intermediaries.  
162 More information may be found at: f or CIPF : 
http://cipf.ca/Public/CIPFCo verage/WhatAretheCoverageLimits.aspx ; for MFDA IPC: http://mfda.ca/mfda -
investor -protection -corporation/mfda -ipc-coverage/ . WT/TPR/S/389 • Canada  
 
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  4.4.2   Telecommunications  
4.219.   The communications sector in Canada is comprised of two subsectors: telecommunications 
and broadcasting, with the latter including radio, TV, broadcasting distribution (i.e. cable, Internet 
Protocol TV, and satellite di rect-to-home broadcasting) and on -demand services. Each subsector is 
subject to separate laws and regulations. In 2017, the sector had CAD 67.6 billion in revenues, with 
the telecommunications subsector accounting for about 74% and the broadcasting sector for 26%.163 
The Canadian Radio -television and Telecommunications Commission (CRTC) regulates both 
telecommunications and broadcasting but does not regulate online broadcasting.164  
4.220.   Canada 's telecommunications sub -sector continued to expand  over the review peri od, with 
growth in revenues up 3.2% in 2017 compared to the previous year.165 However, this growth was 
uneven, as gains were seen in the fixed Internet and mobile sectors, while there were declines in 
the traditional sectors of local and long -distance commun ications, data, and private lines 
(Table  4.25). While the subsector has been growing, it faced criticism for high wireless prices and 
low consumption rates.166 The industry  retains a number of restrictions on foreign investment, as 
outlined in Section 2.4.3,  and remains heavily concentrated, as it is dominated by a small number 
of large ownership groups. In 2017, revenues from the top five ownership groups accounted for 
approximately 85% of total communication revenues.  
4.221.   Recent developments in the telecommuni cations subsector include preparation for the 
gradual deployment of the 5G standard across Canada. The Ministry of Innovation, Science and 
Economic Development (ISED) released a spectrum road map in June 2018 for the release of 
spectrums over the next five  years. Steps were also taken to review the main communications 
legislation, with a view to modernizing it but, as at December 2018, the consultation process was 
still in progress.  
Table 4.25 Industry overview , 2014 -17 
 2014  2015  2016  2017  
Communications services 
subscriptions (% of households)      
Landline  75.5 71.9 66.8 63 
Mobile  85.6 86.1 87.9 89.5 
Internet  84.9 86.9 87.4 89 
TV distribution  79.6 77.8 74.8 72.3 
Communications service industry 
revenues (CAD billion)      
Telecommunications  45.9 47.8 48.7 50.3 
  Wireline voice  10.1 9.7 9.0 8.6 
  Internet  8.9 9.8 10.8 11.5 
  Data and private line  4.8 4.6 4.5 4.5 
  Wireless  22.0 23.6 24.4 25.8 
Broadcasting  18.2 18.0 17.9 17.3 
  Radio  1.9 1.9 1.8 1.8 
  TV 7.4 7.2 7.3 6.9 
  BDU (Cable, Satellite and Fibre TV)  8.9 8.9 8.7 8.5 
Source:  CRTC online information. Viewed at: https://crtc.gc.ca/pubs/cmr2018 -en.pdf  and 
https://crtc.gc.ca/eng/publications/reports/policymonitoring/2017/cmr2017.pdf ; and Statistics 
Canada online information. Viewed at: 
https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1110022801 . 
                                                
163 CRTC online information. Viewed at : 
https://crtc.gc.ca/eng/publications/reports/PolicyMonitoring/2018/index.htm#4.0  and information provided by 
the authorities.  
164 In 2012, the CRTC issued the Digita l Media Exemption Order (DMEO) exempting digital media 
broadcasting undertakings from regulation.  
165 CRTC online information. Viewed at: 
https://crtc.gc.ca/ eng/publications/reports/PolicyMonitoring/2018/index.htm#4.0 .  
166 Financial Post online information. Viewed at  : https://business.financialpost.com/telecom/tight -reins-
leaves -our-telecom -sector -open-to-criticism -but-sadly-not-competition .  WT/TPR/S/389 • Canada  
 
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  4.4.2.1   Framework  
4.222.   The legal framework for the sector has remained relatively unchanged during the review 
period as most of the laws have been in plac e for many years, although there have been some 
amendments (Table 4.26). However, there have been new regulations issued on Simultaneous 
Programming Service Deletion and Substitution and Discretionary Services in 2015 and 2017, 
respectively. The main acts remain the Telecommunications Act, 1993 and the Broadcasting Act, 
1991. The Telecommunications Act contains provisions on eligibility criterion; rates, facilities, and 
services; administration; telecom apparatus; and investigation and enforcement.167 The 
Telecommunications Act was last amended in 2014 to provide the CRTC with the authority to impose 
certain conditions concerning the provision of service on providers of telecommunications services 
that are not telecommunication carriers, to give the CRTC the a uthority to impose administrative 
monetary penalties, and to provide the Minister of ISED the authority to establish a registration 
system and update other processes relating to telecommunication apparatus in order to assess 
conformity with technical requi rements. The Broadcasting Act provides the legislative framework for 
broadcasting in Canada under which the CRTC issues broadcasting licenses and formulates 
regulations. Regulations issued under the Broadcasting Act regulating Simultaneous Programming 
Service Deletion and Substitution and Discretionary Services were amended in 2015. In 2017, the 
CRTC merged the Pay Television Regulations, 1991 and the Specialty Services Regulations, 1990 
into the Discretionary Service Regulations.  
Table 4.26 Main communications laws and regulations, 2018  
Title Reference  
Acts  
Canada 's Anti -spam Legislation  S.C. 2010, c. 23  
Canadian Radio -television and Telecommunications Commission Act  R.S.C., 1985, c. C -22 
Bell Canada Act  S.C. 1987, c. 19  
Broadcasting Telecommunications Act  S.C. 1991, c. 11  
Telecommunications Act  S.C. 1993, c. 38  
Canada Elections Act (Voter Contact Registry)  S.C. 2014, c. 12  
Telecommunications Regulations   
Canadian Telecommunications Common Carrier Ownership and Control Regulations  SOR-94-667 
CRTC Tariff Regulations  SOR-79-144 
Telecommunications Fees Regulations  SOR-2010-65 
Broadcasting Regulations   
Broadcasting Information Regulations  SOR-93-420 
Broadcasting Licence Fee Regulations  SOR-97-144 
Broadcasting Distribution Regulations  SOR-97-555 
Conversion from Analog to Digital Television Regulations  SOR-2011-65 
Discretionary Services Regulations  SOR-2017-159 
Radio Regulations  SOR-86-982 
Television Broadcasting Regulations  SOR-87-49 
Simultaneous Programming Service Deletion and Substitution Regulations  SOR-2015-240 
Source:  CRCT online information. Viewed at: https://crtc.gc.ca/eng/statutes -lois.htm . 
4.223.   The Ministers of Innovation, Science (ISED) and Economic Development and Canadian 
Heritage jointly established an independent Panel to review the Telecommunication Act, 
Broadcasting Act, and the Radiocommunication Act in June 2018. The Review Panel launched its 
consultatio n process in September 2018.168 In particular they recognised the digital revolution and 
its impact on the telecom sector. The review is designed to address four particular themes: reducing 
barriers to access by all Canadians to advanced telecommunications n etworks; supporting creation, 
production and discoverability of Canadian content; improving the rights of the digital consumer; 
and renewing the institutional framework for the communications sector.169 As of December 2018, 
the review process was ongoing and  written submissions to the Panel 's consultation paper were due 
on 11 January 2019. As per its mandate, the Review Panel will issue a "What We Heard Report " by 
June 2019 and provide its final recommendations to the Government by January 2020.  
                                                
167 Justice Laws online information. Viewed at: https://laws -lois.justice.gc.ca/eng/acts/T -3.4/.  
168 Government of Canada online information. Viewed at: 
https://www.ic.gc.ca/eic/site/110.nsf/eng/home .  
169 Government of Canada online information. Viewed at: 
https://www.ic.gc.ca/eic/site/110.nsf/eng/00003.html .  WT/TPR/S/389 • Canada  
 
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  4.224.   In 2017, the  Government also launched a review of its Anti -Spam Act.170 Between 
26 September and 12 December 2017, the House of Commons Standing Committee on Industry, 
Science and Technology (INDU) undertook a statutory review of Canada 's Anti -Spam Legislation 
(CASL). T he final INDU committee report on CASL presented 13 recommendations including 
clarification of certain legislative provisions of CASL. In June 2018, the Minister of ISED launched 
national consultations on data and digital transformation. It is expected tha t the results of these 
consultations will guide legislative changes related to privacy as well as other marketplace 
framework policy such as CASL.  
4.225.   The CASL provides for a private right of action, which was scheduled to come into force in 
July 2017. Under this provision, individuals and organizations would have been able to bring a private 
right of action in court against individuals or organizations that they allege have violated the law. 
Some Canadian industry representatives had raised concerns over the scope of the private right of 
action under the CASL. The coming -into-force date of the provision was suspended on 2 June 2017, 
pending a review of the CASL.   
4.226.   The CRTC is an administrative tribunal that regulates and supervises Canadian broadcasting 
and tel ecommunications in the public interest. In the broadcasting subsector, the CRTC 's 
responsibilities include approving mergers, acquisitions and changes of ownership of broadcasting 
undertakings; issuing, renewing, and amending licences for broadcasting dist ribution and 
programming undertakings; and resolving competitive disputes.171 The Commissioner for 
Complaints for Telecommunications Services Inc. (CCTS), under the authority of the CRTC, handles 
telecommunications complaints that fall within the parameters of the Wireless Code and the Deposit 
and Disconnect Code. In 2017 -18, the CCTS handled over 14,000 consumer complaints, mostly 
involving billing errors and contract disputes in the wireless, Internet and home phone sectors. In 
September 2017, the CCTS expa nded its mandate to accept complaints regarding television issues 
under the Television Service Provider Code.  
4.227.   Canada 's wireless sector received increased attention from the ISED and the CRTC in recent 
years, due to its growth and potential, in particular to reach underserved areas. In remote regions 
of the country, wireless broadband is being deployed for high -speed Internet use due to the 
geography and topography of Canada. Canada regulates access to its wireless frequency spectrum 
through licences under the authority of the ISED. The ISED uses different approaches to make 
spectrum available, including auctions, low -cost license exempt spectrum, and All Come All Served 
spectrum licenses. Auctions are typically used when demand exceeds supply. However, the Office of 
the Auditor General found that small Internet service providers struggled to acquire high -quality 
spectrum in rural and remote areas.172 Recognizing the importance of wireless services for Canadians 
in all regions, the ISED committed to continue to  develop through consultation policies that 
encourage service into rural areas. For example, the ISED has recently launched a consultation173 
on a new set of smaller service areas for spectrum licensing. These areas could potentially reduce 
the cost of acqui ring spectrum for smaller wireless providers interested in serving rural and remote 
areas.   
4.228.   Canada also has in place seven Mutual Recognition Agreements (MRAs) for the 
telecommunications sector.174 These arrangements allow for the mutual acceptance of confor mity 
assessment results of telecommunications equipment.  
                                                
170 House of Commons online information. Viewed at: 
http://www.ourcommons.ca/Content/Committee/421/INDU/Brief/BR9155285/br -
external/RogersCommunicationsInc -e.pdf.  
171 CRTC online information. Viewed at: 
https://crtc.gc.ca/eng/publications/reports/dp2018/dp2018.htm . 
172 Office of the Auditor General online information. Viewed at: http://www.oag -
bvg.gc.ca/internet/English/parl_oag_201811_01_e_43199.html . 
173 Government of Canada online information. Viewed at: https://www.ic.gc.ca/eic/site/smt -
gst.nsf/eng/sf1144 6.html . 
174 Asia-Pacific Economic Cooperation (APEC); Inter -American (CITEL); European Free Trade Association 
(EFTA); European Community; Switzerland; Mexico; and Israel. Government of Canada online information. 
Viewed at: https://www.ic.gc.ca/eic/site/mra -arm.nsf/eng/h_nj00026.html .  WT/TPR/S/389 • Canada  
 
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  4.4.3   Transport  
4.4.3.1   Air transport and airports  
4.4.3.1.1   Air transport  
4.229.   Air transport is an important component of Canada 's overall transportation mix, with local, 
regional, national and international airlines flying passengers and cargo to destinations across the 
country and around the world. Canada has the third -largest air transport market in the world, and 
has 18 million km2 of airspace, managed by the second -largest air navigation service provider in the 
world, NA V CANADA.175 
4.230.   Air transport is the second -largest commercial transport subsector, after truck 
transportation. As Table 4.27 below indicates, in 2018, air transport contributed 0.5% to GDP. The 
total number of enplaned and deplaned air passengers reached  149.6  million in 2017, an increase 
of 8.7% compared with the previous year. This marked the eighth consecutive annual increase in 
air passenger traffic following the economic slowdown of 2009. 176 In 2017, the combined flight hours 
of Canadian airlines were over 2.1 million hours. Loaded and unloaded air cargo volume stood at 
1.31 million metric tons in the same year, making up 11.8% of Canada 's international trade.177  
Table 4.27 Main indicators of air transportation, 2013 -18 
   2013   2014   2015   2016   2017  2018  
GDP at basic prices (CAD million)a   6,293   7,315    7,661    8,421    9,279    9,924  
% of GDP at basic prices  0.4%  0.4%  0.4%  0.5%  0.5%  0.5%  
% of transportation and warehousing     8.7%    9.5%     9.7%  10.4%  10.9%  11.3%  
Memo (% of total transportation and 
warehousing):       
  
   Truck transportation  26.0%  26.1%  25.3%  25.2%  25.2%  24.8%  
   Rail transportation  9.7%  10.0%  10.0%  9.4%  9.6%  9.6%  
   Water transportation  2.4%  2.3%  2.2%  2.1%  2.1%  2.0%  
Air passenger traffic (millions)       
  
Total passengers enplaned and deplaned  124 130 133 141 150 .. 
   Domestic sector  75 78 80 84 88 .. 
   Transborder sector  25 26 26 27 29 .. 
   Other International sector  24 26 27 30 33 .. 
Air cargo traffic (1,000 tonnes)       
  
Total, cargo loaded and unloaded  1,073  1,102  1,173  1,223  1,313  .. 
   Domestic sector  470 483 529 554 577 .. 
   Transborder sector  233 229 236 227 234 .. 
   Other International sector  370 390 408 442 502 .. 
Cargo flights (Number, 1,000)  112 114 106 84 84 .. 
Operating revenue and expenses for total 
Canadian air carriers (CAD million)        
Net income b 513 651 997 1,375  .. .. 
Operating income, net  1,284  1,643  2,473  2,484  .. .. 
   Revenue  20,816  22,309  22,833  23,048  .. .. 
   Expense  19,532  20,666  20,360  20,564  .. .. 
.. Not available.  
a  Based on seasonally adjusted GDP at basic prices, in chained 2012 dollars.  
b  After provision for income taxes and non-operating income.  
Note:  Based on North American Industry Classification System (NAICS) codes: 481, 482, 483, and 484.  
Source:  Statistics Canada. Tables: 23 -10-0253-01, 23 -10-0254-01, and 23 -10-0034-01. 
4.231.   Transport Canada has primary responsibility for transportation policy in federally -regulated 
sectors, including the economic, legislative and policy framework related to air transport. 
Two principle pieces of legislation govern aviation sector: The Aeronautics Act, and the Canada 
Transportation Act.  
                                                
175 Government of Canada online information, Transportation in Canada 2017 . Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html#toc3 . 
176 Statistics Canada online information. Viewed at: https://www150.statcan.gc .ca/n1/daily -
quotidien/180802/dq180802b -eng.htm . 
177 Statistics Canada online information.  Viewed at: https://www144.statcan.gc.ca/tdih -cdit/index -
eng.htm . WT/TPR/S/389 • Canada  
 
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  4.232.   The Canadian Transportation Agency regulates the economic aspects of various modes of 
transportation, including air transport, regulated at the federal level. The Agency is an independent, 
quasi -judicial, federal administrative tribunal whose authorities and  mandate are set out in the 
Canada Transportation Act. It administers the air transport licensing regime that requires domestic 
air services operators to be majority -owned and controlled by Canadians and have proper liability 
insurance, in addition to havi ng an operating certificate issued by Transport Canada. The Canadian 
Transportation Agency also verifies the financial viability of applicants starting operations, oversees 
the licensing of international scheduled and non -scheduled services to and from Can ada and 
administers the permit system for international charter operations. The Agency is also responsible 
for resolving disputes by facilitation, mediation, arbitration and adjudication.  
4.233.   The Canadian Air Transport Security Authority (CATSA) is responsible  for security screening 
at designated Canadian airports and operates under the provisions in the Aeronautics Act. The CATSA 
is a Canadian Crown corporation created in 2002 under the Canadian Air Transport Security Authority 
Act and reports to the Governmen t of Canada through the Minister of Transport. The Transport 
Canada Civil Aviation Directorate (TCCA) regulates and oversees the safety of the country 's air 
transportation system.  
4.234.   In 2012, the Government of Canada and the aviation industry released Canada 's Action Plan 
to Reduce Greenhouse Gas Emissions from Aviation.178 This voluntary Action Plan sets a target for 
an average annual improvement in aviation fuel efficiency of at least 1.5% until 2020 from a 2008 
baseline179. Furthermore, the Action Plan identifi es a series of supporting measures that are expected 
to have the greatest impact in reducing greenhouse gas emissions over time (e.g. fleet renewals 
and upgrades, improved capabilities in air traffic management, and alternative fuels). During the 
review pe riod, the air transport sector continued to implement these supporting measures, which 
has resulted in roughly a 6% improvement in fuel efficiency between 2015 and 2017 . 
4.235.   Air transportation is comprised of local, regional, national and international airlines, which 
transport passengers and cargo to destinations both domestically and globally. In 2018, there were 
600 air carriers with licences in Canada. Some of the major domestic airlines include Air Canada, 
WestJet, Porter Airlines, and Air Transat.  
4.236.   In 2017, among Canadian airlines, Air Canada had the largest share of the Canadian 
domestic (54%), U.S. transborder (48%), and international (41%) markets. The Air Canada network 
has three hubs (Toronto, Montréal and Vancouver) and, in 2017, provided sched uled passenger 
services to 64 Canadian destinations, 57 U.S. destinations, and 96 other foreign destinations on 
six continents.180 It undertook a new Cost Transformation Program to secure an additional 
CAD 250 million in savings by the end of 2019.181 
4.237.   In 2017,  WestJet and WestJet Encore together accounted for 37% of available seat -
kilometres in the domestic air market. They operated, on average, 675 scheduled flights per day.182 
They provided scheduled passenger services to 39 Canadian destinations, 28 U.S. destinations, and 
34 destinations in the Caribbean and Mexico183.  
4.238.   Porter Airlines, a regional carrier based at Toronto 's Billy Bishop Airport, used a fleet of 
29 turboprop aircraft to provide direct, non -stop scheduled passenger services to 24 destinations in 
Canada and 9 in the United States, in 2017. Air Transat was the largest leisure carrier in 2017, with 
a fleet of up to 40 aircraft, depending on the season, serving 65 international destinations in 
26 countries.  
                                                
178 Government of Canada online inf ormation. Viewed  at: http://www.tc.gc.ca/eng/policy/aviation -
emissions -3005.htm . 
179 Government of Canada online information. Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html#toc3 . 
180 Government of Canada online information. Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html#toc3 . 
181 Travelweek online information. Viewed at: http://www.travelweek.ca/news/air -canada -announces -
strong -2017-results -annual -report/ . 
182 Government of Canada online information. Viewed at: 
https://www.tc.gc.ca/eng/pol icy/transportation -canada -2017.html#toc3 . 
183 Westjet online information. Viewed at: https://www.westjet.com/assets/wj -
web/docu ments/en/investorMedia/180329 -2017-annual -information -form-acessible.pdf . WT/TPR/S/389 • Canada  
 
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  4.239.   In 2017, foreign operators offered 12.8 milli on scheduled seats from Canada on an average 
of 273 flights per day. This was up from the 12.7 million seats offered in 2016.184 
4.240.   Under the Canada Transportation Act, only Canadians are eligible for a licence to provide 
domestic flights. However, the Transpor tation Modernization Act (Bill C -49), which came into force 
on 23 May 2018, amended the former to introduce new measures related to air transportation. In 
particular, it increased the maximum percentage of foreign voting interests in Canadian air carriers 
from 25% to 49%, subject to restrictions.185 Nevertheless, no single non -Canadian may own or 
control, directly or indirectly, more than 25% of the voting interests in that corporation. In addition, 
no more than 25% of the voting interest in a Canadian air ca rrier may be owned by foreign air 
carriers. The Canadian Transportation Agency is expected to continue to ensure that all Canadian 
air carriers comply with the requirement that air service licensees be owned and controlled by 
Canadians.  
4.4.3.1.2   Airports  
4.241.   Airports i n Canada were owned and operated by the Government of Canada prior to 1994. 
The National Airport Policy was introduced to change the Government 's role regarding airports, from 
owner and operator to that of regulator and, in the case of National Airport Sys tem (NAS)  airports 
run by airport authorities, landlord , with the purpose of reducing the administrative and financial 
burden related to the management, operation and development of the national airport network.  
4.242.   In 2018, Canada had 26 principal airports, forming the National Airport System (NAS.186 The 
commercial management and operation of 22 of the 26 NAS airports is entrusted to private, 
not-for-profit, non -share capital corporations called airport authorities (AAs), that must ensure their 
financial viabi lity as well as the provision of services. The airports to which this arrangement applies 
are leased to the AAs under 60 -year emphyteutic leases, with an option to renew for 20 years. As a 
result, the Government retains ownership of the NAS airports withou t having to assume formal 
responsibility for debts incurred by the AAs. There were no changes to the operational and 
management responsibilities of AAs during the review period. The four remaining NAS airports are 
owned and operated by three territorial go vernments, and operated by the City of Kelowna, 
British  Columbia, respectively. There are also a number of Regional and Local Airports, serving 
commercial traffic, and Small Airports, which do not serve commercial traffic, most of which are 
owned and manag ed by municipality governments. Under the Policy, all territorial airports were 
classed as "arctic ". 
4.243.   Government funding exists for Canada 's Small, Regional and Local Airports, and for related 
infrastructure projects, via the Airports Capital Assistance Pro gram, launched in 1995 to provide 
safety -related support as these airports were transferred to local management. The funding was 
aimed at helping such airports face the challenges associated with having enough resources to 
finance their airport operations and infrastructure needs. As at 2018, the Government had invested 
more than CAD 785.9 million for 904 projects at 182 airports.187  
4.244.   Considerable growth in passenger traffic was observed in 2017, particularly in the largest 
airports. Major increases were observed at Toronto/Lester B. Pearson International (+5.9%), 
Vancouver International (+8.8%), and Montréal/Pierre Elliott Trudeau International (+9.6%). All 
sectors experienced growth in  2017, as the domestic sector expanded  5.4% (+4.5  million 
passengers),  other (non -trans-border) international traffic was up  9.6% (+2.9  million) and 
trans-border traffic (between Canada and the United States) increased  4.9% (+1.3  million). These 
three airports accounted for  88.5% of the  32.8 million passengers who enplaned a nd deplaned 
international flights in Canada.188 In 2017, the top 20 Canadian busiest airports moved 134.5 million 
passengers.189  
                                                
184 Government of Canada online information. Viewed at: 
https://www.tc.gc.ca/eng/policy/transport ation-canada -2017.html#toc3 . 
185 Canadian Transportation Agency online information. Viewed at: https://otc -
cta.gc.ca/eng/implementation -recent -amendments -canada -transportation -act. 
186 Government of Canada online information. Viewed at: https://www.tc.gc.ca/eng/programs/air ports-
policy -nas-1129.htm . 
187 Government of Canada online information. Viewed at: https://www.tc.gc.ca/en/programs -
policies/programs/airports -capital -assistance -program.html . 
188 Statistics Canada online information. Viewed at: https://www150.statcan.gc.ca/n1/daily -
quotidien/180802/dq180802b -eng.htm . 
189 Government of Canada, Transportation in Canada 2017 . Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html#toc3 . WT/TPR/S/389 • Canada  
 
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  4.4.3.1.3   Air services agreements  
4.245.   As at December 2018, Canada had air transport agreements or arrangements with over 
100 bilateral partners.  During review period, Canada concluded expanded agreements with several 
markets, including Algeria, Australia, The Bahamas, Ethiopia, Israel, Ivory Coast, Mexico, Morocco, 
Qatar, the United Arab Emirates, Egypt, Thailand, and South Africa. First -time agre ements were also 
concluded with: Antigua and Barbuda, Belize, Benin, Cameroon, Guinea, Mauritius, Mongolia, the 
Seychelles, Sri Lanka, St. Lucia, St. Vincent and the Grenadines, and Tanzania.  
4.246.   Transport agreements can also be signed by Transport Canada Civi l Aviation (TCCA) with a 
foreign authority, to enable the performance of maintenance in each other 's territory based on the 
acceptance of each authority 's regulatory framework. The TCCA also has the ability to approve 
individual maintenance organizations i n countries where it has no agreements in place, to allow them 
to perform maintenance on Canadian aeronautical products. When the TCCA approves individual 
maintenance organizations outside of Canada, it refers to them as Foreign Approved Maintenance 
Organi zations (FAMOs). FAMOs are required to meet Canadian Aviation Regulation (CAR) 573.13, 
which has strict public interest criteria. Currently, the TCCA has only issued FAMO approvals to three 
organizations but has developed international maintenance agreemen ts with nine different 
countries.190 The TCCA performs direct oversight of its three FAMO approvals to ensure compliance 
with Canadian regulations. The nine maintenance agreements rely on the oversight of the applicable 
domestic authorities to ensure complia nce of their organizations with the applicable regulatory 
requirements.  
4.247.   In 2017, U.S. Customs and Border Protection pre -cleared approximately 
13 million  U.S.-bound passengers at Canada 's eight pre -clearance airports under the current 
bilateral Agreement on Air Transport Preclearance. The enabling legislation for the pending new 
Agreement on Land, Rail, Marine and Air Transport Preclearance between the Government of Canada 
and the Government of the United States191, the Preclearance Act, 2016, received Royal  Assent on 
12 December 2017. This brought both countries closer to implementing the new comprehensive 
pre-clearance Agreement.192 Once this Agreement, signed in 2015, comes into force and is 
implemented for each mode of transportation, it will replace the ex isting air pre -clearance 
agreement, and enable the expansion of pre -clearance to the land, rail and marine modes and to 
new locations in the air mode.193 Expanding pre -clearance will facilitate faster travel between Canada 
and the United States, provide acce ss to more destinations in both countries, bolster trade, better 
protect Canada 's rights, and increase border security. Canada allows the sale of international air 
transportation services by foreign air carriers in Canada, subject to bilateral transport ag reements. 
The sale of such services can be executed directly by service providers or their agents. Furthermore, 
a foreign air carrier may establish a sales presence in Canada under the terms of provincial laws and 
regulations.  
4.248.   In order to provide maintena nce and repair operations on Canada -registered aircrafts, the 
providers are obliged to gain prior approval from Transport Canada, in accordance with Canadian 
Aviation Regulations, or with the regulations of the foreign State party to an agreement or techni cal 
arrangement with Canada. This is necessary, as the requirements of Transport Canada for 
maintenance personnel exceed the International Civil Aviation Organization (ICAO) standards. 
Alternatively, maintenance can be performed by a Canadian aircraft main tenance organization 
(AMO) located outside of Canada, but only if the Canadian AMO provides the necessary oversight to 
ensure compliance with Canadian safety requirements. To date, Transport Canada has approved 
869 AMOs.  
4.4.3.2   Maritime transport  
4.249.   Canada 's territ orial waters are a significant part of its area, comprising about 70% of its land 
                                                
190 These agreements may be consulted at the TCCA w ebsite: 
https://www.tc.gc.ca/eng/civilaviation/standards/int -ta-menu -3674.htm . 
191 Newswire online information. Viewed at: https://www.newswire.ca/news -releases/canada -is-one-
step-closer -to-expanding -preclearance -operations -with-the-us-663928013.html . 
192 Newswire online information. V iewed at: https://www.newswire.ca/news -releases/canada -is-one-
step-closer -to-expanding -preclearance -operations -with-the-us-663928013.html . 
193 Government of Canada, Transportation in Canada 2017 . Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html#toc3 -2. WT/TPR/S/389 • Canada  
 
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  mass or about 7.1 million km2.194 The Ocean Act, 1997 delineates Canada 's maritime area where it 
has sovereignty or imposes control, i.e. over its internal waters, territorial sea, contiguous zone, 
exclusive economic zone, and continental shelf.195 In addition to providing traditional resources such 
as fish, the oceans and waterways are essential parts of the transportation system. The shipping 
sector provides an important service  for the transportation of both domestic and foreign goods and 
has been keen to align itself with international maritime law and agreements. In 2017, water 
transportation accounted for 0.09% of GDP .196 
4.250.   Approximately 20% of the total value of Canada 's interna tional trade (including with the 
United States) was shipped by maritime transport in 2017.197 Excluding the United States, marine 
transport shipped approximately 47% of the total value of Canada 's trade.198 Most of this is bulk 
cargo, such as petroleum product s, agricultural products, crude oil, iron ore, and fuel oil, but also 
includes machinery and manufactured products.199 Canada 's non -U.S. maritime trade is highly 
reliant on foreign flagged vessels and the services of the international market. In 2017, Canada  
ranked 31st in ownership of the world fleet (owning 369 vessels, 149 of which were national and 
220 of which were foreign -registered).200 Few national carriers provide international marine 
transportation services, accounting for only 0.1% of trade in terms of volume.201 In contrast, 
Canadian vessels dominate domestic trade, carrying approximately 98% of domestic tonnage, as 
per the protection s of the Coasting Trade Act.202 However, there has been some liberalization of 
targeted domestic maritime services under the Act, to implement the CETA and the Transportation 
Modernization Act.  
4.251.   According to Transport Canada 's Vessel Registry Query System, a s at December 2018, there 
were almost 39,000 vessels on the Large Vessel Register and about 14,000 on the Small Vessel 
Register.203 Of the nearly 39,000 vessels on the Large Vessel Register, about 27,000 were 
Canadian -built, i.e. 70%.204  
4.252.   All ships205 in operati on in Canada are subject to certain fees to the Canadian Coast Guard. 
These vary by region, size of the vessel, and if the vessel carries a Canadian or foreign flag. Typically, 
there is an annual or monthly fee, plus additional fees based on weight, or per -entry.206 
                                                
194 Fisheries and Oceans Canada online information. Viewed at : http://www.dfo -
mpo.gc.ca/oceans/publications/cos -soc/index -eng.html .  
195 The Ocean Act. Justice Laws online infor mation. Viewed at: https://laws -
lois.justice.gc.ca/eng/acts/o -2.4/.  
196 At basic prices. Addendum to the 2017 Transportation in Canada Annual Report, Chapter 1. 
Transportation and the Economy, Table EC1. Economic Indicators, 2017. Government of Canada online 
information. Viewed at: https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html . 
197 Table EC5: Modal Sh ares in Canada 's International Trade, 2008 –2017. "Transportation in Canada 
2017 Annual Report ." Government of Canada online information. Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html .  
198 Table EC07: Modal Shares in Canada -Other Countries Trade, 2008 –2017. "2017 Transportation in 
Canada 2017 Annual Report . Government of Canada online information. Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html .  
199 Table M19: Main Commodities Shipped in Canada's International Marine Trade. "2017 Transport 
Canada Annual Report " Government  of Canada online information. Viewed at: 
https://www.tc.gc.ca/eng/policy/transportation -canada -2017.html .  
200 "Review of Maritime Transport 2018 ", Table 2.3. UNCTAD online info rmation. Viewed at: 
https://unctad.org/en/pages/PublicationWebflyer.aspx?publictionid=2245 .  
201 Clearseas Organization online information. Viewed at: https://clearseas.org/wp -
content/uploads/2017/05/ValueMarineShipping_fullreport_EN.pdf . 
202 Clearseas Organization online information. Viewed at: https://clearseas.org/wp -
content/uploads/2017/05/ValueMarineShipping_fullreport_EN.pdf . 
203 Small vessels are those less than or equal to 15 gross tonnage while large vessels are those  more 
than 15 gross tonnage. Transport Canada online inform ation. Viewed at: http://wwwapps.tc.gc.ca/Saf -Sec-
Sur/4/vrqs -srib/eng/vessel -registrations/a dvanced -search .  
204 These figures do not include vessels currently suspended; meaning the Chief Registrar's office does 
not have a valid address for the vessel owner or the vessel has been sold and the new owner has not come 
forward yet to register the vess el. Including suspended vessels, as of December 2018 there were 47,176 
vessels in the Large Vessel Register (34,707 Canadian -built) and 23,420 vessels in the Small Vessel Registry.  
205 There are exclusions for fishing vessels, government ships, and pleasure craft. 
206 Canadian Coast Guard online information. Viewed at: http://www.ccg -gcc.gc.ca/marine -services -
fees.  WT/TPR/S/389 • Canada  
 
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  4.4.3.2.1   Legal framework and developments  
4.253.   The Canada Shipping Act, 2001 (CSA, 2001) is Canada 's principal maritime legislation, and 
along with its over 50 regulations, requires that all commercial vessels be registered, and that all 
non-commercial vessels be either licensed or registered, with few exceptions.207 The Act also has 
provisions on personnel; safety; navigation services; incidents, accidents, and casualties; wrecks; 
pollution prevention; and enforcement. Registration of vessels requires one to be a  Canadian citizen, 
permanent resident, Canadian corporation, or foreign corporation with a Canadian authorized 
representative. Further, Canadian flagged ships must be manned by persons holding a Canadian 
Certificate of Competency, which is only issued to C anadian citizens or permanent residents.208 
4.254.   The Coasting Trade Act provides the rules for vessels operating in Canada 's coastal waters 
conducting commercial marine activities. Those operating above the continental shelf must be 
participating in activities re lated to the transport, exploration or exploitation of the minerals and 
non-living natural resources of the continental shelf. The Act prioritizes Canadian vessels over foreign 
vessels, by requiring that Canadian non -duty-paid vessels and foreign vessels o btain a licence. 
Canadian duty -paid vessels do not require such a licence.209 Canadian non -duty paid vessels and 
foreign vessels will only be granted such licences when no Canadian vessel is suitable or available 
for such services. Further, these vessels mus t have import duties and taxes paid on the vessel for 
its temporary use in Canada.210 According to the Canadian Transportation Agency, between 75 and 
88 licences were issued per year between 2015 and 2018.211 There are also procedures or permits 
to be obtained  for the use of foreign workers as crew on coastal trade vessels.  
4.255.   The Navigation Protection Act (NPA) is the primary federal legislation that can authorize 
interferences to navigation. Its primary purpose is to ensure the public right to navigate is protec ted, 
in the context of economic development projects (e.g. bridges and dams) in navigable waters. The 
NPA also prohibits the depositing or throwing of materials that risk impacting navigation in navigable 
waters, and the dewatering of navigable waters. The  NPA will be renamed the Canadian Navigable 
Waters Act if proposed legislation (Bill C -69) is enacted.  
4.256.   The Canada Transportation Act  establishes the national transportation objectives, including 
a declaration that the transportation system advances the we ll-being of Canadians and enables 
competitiveness and economic growth throughout Canada.212 
4.257.   During the review period, the Transportation Modernization Act, 2018 made important 
changes in the maritime sector, so as to improve supply -chain efficiency and the c ompetitiveness of 
Canadian ports as gateways to North America. With respect to coasting trade, effective 
10 December  2018, pursuant to the Coasting Trade Act213, all ships (regardless of flag or ownership) 
are now allowed to reposition their owned or leased empty containers between locations in Canada 
on a non -revenue basis without a coasting trade licence. This is expected to reduce trade costs and 
address the current shortage of available containers for export.  
4.258.   The Marine Liability Act was amended in Decemb er 2018 to modernize the Ship -source Oil 
Pollution Fund, Canada 's domestic oil pollution damage compensation fund. Among other things, the 
amendments provide for unlimited compensation, emergency funding for a significant incident, and 
modernization of the  Fund's levy so that it can be replenished. The remaining acts in the maritime 
sector are laws that have been in place for many years, and which were not significantly amended 
                                                
207 Commercial vessels under 15 gross tons are not required to be registered. Transport  Canada online 
information. Viewed at: http://www.tc.gc.ca/eng/marinesafety/oep -vesselreg -menu -728.htm .  
208 Transport Canada online information. Viewed at: https://www.tc.gc.ca/eng/marinesafety/mpsp -
training -examination -certification -faq-1052.htm .  
209 Government of Canada online information. Viewed at: https://www.tc.gc.ca/eng/policy/acf -acfs-
menu -2215.htm .  
210 Temporary import of vessels are generally subject to a 25% customs duty. However, many vessels 
are currently exempt or subject to reduced duties due to the regulation on Vessel Duties Reduction or Removal 
Regulations (SOR/90 -304). Justice Laws online information. Viewed at: https://laws -
lois.justice.gc.c a/eng/regulations/SOR -90-304/page -1.html#docCont .  
211 In 2015 there were 75; in 2016, 85; in 2017, 79; and in 2018, 88. Canadian Transportation Agency 
online information. Viewed at: https://www.otc -cta.gc.ca/eng .  
212 Canada Transportation Act  (S.C. 1996, c. 10)  Justice Laws online information. Viewed at: 
https://laws -lois.justice.gc.ca/eng/acts/C -10.4/index.html .  
213 Justice Laws online info rmation. Viewed at: https://laws -
lois.justice.gc.ca/eng/AnnualStatutes/2018_10/page -10.html#h -7.  WT/TPR/S/389 • Canada  
 
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  during the review period (Table 4.28). The Canada Marine Act (CMA), 1998 contain s the main rules 
on port activities, and the Canada Shipping Act  is the main shipping law governing vessels in 
Canada 's jurisdictional waters.  
4.259.   The Government of Canada launched an independent review of the Pilotage Act in May 2017 
as part of the wider Oce ans Protection Plan initiative. The goal of the review was to inform the 
Government's efforts to modernize the legislative framework for pilotage, while preserving safety 
and supporting the delivery of safe and efficient marine pilotage services into the f uture. The review 
provided 38 recommendations for improvements, organized under five themes: safety, governance, 
labour, tariffs and fees, and technical amendments.214 The Government intends to introduce 
legislation at the earliest opportunity to enable impr ovements in the effectiveness, efficiency and 
accountability of Canada's pilotage system.  
4.260.   Canada is also in the process of enacting the Wrecked, Abandoned or Hazardous Vessels 
Act, that would give certain protections to the environment, public, etc., by st rengthening vessel 
owner liability and enhancing federal powers to address abandoned, hazardous or wrecked vessels. 
The Act would implement the International Convention on the Removal of Wrecks, 2007, also known 
as the Nairobi Convention. This Convention w ill enter into force in Canada three months from the 
date that the Instrument of Accession is deposited with the International Maritime Organization 
(IMO). The legislation (Bill C -64) was given Royal Assent on 28 February 2019 and is expected to 
enter into  force during the course of 2019.  
Table 4.28 Main maritime Acts, 2018  
Title Reference  
Transportation Modernization Act  S.C. 2018, c. 10  
Canada Marine Act  S.C. 1998, c. 10  
Canada Transportation Act  S.C. 1996, c. 10  
Coasting Trade Act  S.C. 1992, c. 31  
Canada Shipping Act, 2001  S.C. 2001, c. 26  
Marine Transportation Security Act  S.C. 1994, c. 40  
Marine Liability Act  S.C. 2001, c. 6  
Navigation Protection Act  R.S.C. 1985, c. N -22 
Pilotage Act  R.S.C. 1985, c. P -14 
Shipping Conferences Exemption Act, 1987  R.S.C. 1985, c. 17 (3rd Supp.)  
Source:  Transport Canada online information. Viewed at: https://www.tc.gc.ca/eng/acts -
regulations/ac ts.htm ; and Justice Laws online information. Viewed at: https://laws -lois.justice.gc.ca . 
4.261.   Another review and legislative process was initiated in 2016 on the Navigation Protection 
Act, whereby concerns were ra ised over the 2012 amendments. In February 2018, the Government 
introduced proposed legislation (Bill C -69) which would amend the Act and rename it the Canadian 
Navigable Waters Act. The main function of this legislation is the regulation of works (e.g. cu lverts, 
bridges, and dams) that may interfere with the public right of navigation. The Act is currently going 
through the parliamentary process and  has been referred to the Standing Senate Committee on 
Energy, the Environment and Natural Resources for revi ew. If enacted, the Act would restore and 
better protect the public right to navigate on navigable waters.215  
4.262.   As a result of the CETA being provisionally applied in September 2017, eligible EU and 
Canadian entities are allowed to provide targeted domestic m aritime services, such as the 
repositioning of empty containers owned or leased by eligible entities between locations in Canada 
on a non -revenue basis, feeder services between Montréal and Halifax under certain conditions, and 
privately -procured dredging services.  
4.4.3.2.2   Ports  
4.263.   The National Marine Policy (1995) laid out a comprehensive framework for major elements 
of Canada 's marine transportation system, including the port system, which consists of Canada Port 
Authorities (CPAs), public ports (which may be owned by Transport Canada or by other entities), 
                                                
214 "The Pilotage Act Review 's Final Report ", Transport Canada online information. Viewed at: 
https://www.tc.gc.ca/en/reviews/pilotage -act-review -final-report -april-2018.html . 
215 Government of Canada onl ine information. Viewed at: 
https://www.canada.ca/en/services/environment/conservation/assessments/environment al-
reviews/navigation -protection/guidebook.html .  WT/TPR/S/389 • Canada  
 
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  and private ports. In all cases, the Minister of Transport has the authority to establish the regulatory 
framework regarding marine safety, security, and environmental protection; and monitor compliance 
with regul atory requirements. The CMA provides the legislative framework for CPAs, public ports, 
and the St. Lawrence Seaway. It was amended in 2017, in order to provide CPAs, or their 
wholly -owned subsidiaries, access to additional financing arrangements from the C anada 
Infrastructure Bank. There are 18 CPAs; these ports are deemed by the CMA as being vital to 
Canada 's domestic and international trade. In 2017, ports and marine shipping carried over CAD 
200 billion worth of Canadian imports and exports, and CPAs alo ne handled approximately 60% of 
Canada 's marine commercial cargo tonnage. Transport Canada is also responsible for some smaller 
ports in Canada such as regional and remote ports.  
4.264.   In March 2018, the Minister of Transport launched a review of CPAs with a vie w to optimizing 
their role in the transportation system. The review is focused on four key themes: innovation and 
trade logistics (including safety and security components), partnering with Indigenous peoples, 
sustainability and port communities, and port governance. As part of the review, Transport Canada 
launched three studies, to be completed by summer 2019, which will examine economic and 
commercial forecasts; the financial and operational capacity of CPAs; and CPA governance. Findings 
of the review are  expected in 2019, and will guide the consideration of potential policy, legislative 
and regulatory responses.  
4.4.4   Tourism  
4.4.4.1   Overview and developments  
4.265.   The tourism industry in Canada is an important sector in the overall services mix. The travel 
and tourism sect or provides a vital stimulus to Canada 's commercial growth through the visitor 
economy. This is especially true because of the amount of economic activity which the sector draws 
into the country. In 2017, its direct contribution to GDP was CAD 41.3 billion , that is 2% of total 
GDP. The sector has an important impact on employment as well. In 2017, it directly supported 
739,000 jobs (4% of total employment). Furthermore, one in 10 jobs – more than 1.8 million – 
depends  on the tourist economy.216 Travel and tou rism investment in 2017 was CAD 17.5 billion, 
which is 3.6% of total investment.217  
4.266.   In 2018, Canada welcomed its highest ever number of international overnight visitors, an 
estimated 21.1 million people from around the world.218 This increase over the last few years is 
underpinned by growing aviation capacity, currency advantages, a strong country brand, and 
increased federal marketing investments.  
4.267.   Canada experienced notable growth from key markets in 2017, including Mexico, whic h 
generated nearly 50% growth in arrivals to Canada. This is largely attributed to the elimination of 
the visa requirement for Mexican travellers at the end of 2016. Substantial increases in air capacity 
(+70%) also contributed greatly to this lift. Growth  from India was also high, at over 18%, and 
stems predominantly from a two -fold increase in direct air capacity. While overall growth from the 
U.S. market increased modestly, at 3%, visitors arriving by air rose by an estimated 7% 
year-on-year.219 
4.4.4.2   Legal and regulatory framework  
4.268.   Tourism in Canada is promoted at the federal, provincial and territorial, and municipal levels, 
with the involvement of the private sector. At the level of the federal government, the department 
of Innovation, Science and Economic Deve lopment Canada oversees Canada 's tourism policy, in an 
effort to increase international visitation.  Other federal departments and agencies are involved in 
tourism activities and services.  
                                                
216 Canada 's Tourism Vision . Viewed at: https://www.ic.gc.ca/eic/site/095.nsf/eng/00002.html . 
217 World Travel and Tourism Council (2018), Travel & Tourism Economic Impact 2018: Canada . Viewed 
at: https://hi -tek.io/assets/tourism -statistics/Canada2018.pdf  
218 Information provided by the authorities.  
219 Destination Canada (2 018), 2017 Annual Report . Viewed at: 
https://www.destinatio ncanada.com/sites/default/files/archive/710 -
Destination%20Canada%20Annual%20Report%20 -%202017/2017%20Annual%20Report%20 -
%20FINAL%20online%20version%20%28E%29.pdf . WT/TPR/S/389 • Canada  
 
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  4.269.   Destination Canada, legally the Canadian Tourism Commission, is an i mportant player in the 
services sector. It was created in 1995 to promote tourism in general, and Canada as an international 
destination in particular. It is a Crown corporation, wholly owned by the Government of Canada, 
which reports to the Minister of To urism, Official Languages and La Francophonie. As Canada 's 
national tourism marketer, Destination Canada markets Canada abroad to leisure and business 
travellers, to increase arrivals and grow Canada 's tourism economy. It uses data -driven marketing 
strateg ies to stimulate international demand and tourism export revenue for Canada in 10 countries: 
Australia, China, France, Germany, India, Japan, Mexico, the Republic of Korea, the United Kingdom, 
and the United States. The campaigns of Destination Canada are targeted to reflect individual market 
conditions and traveller interests. In collaboration with its tourism industry partners, Canada is being 
promoted as a premier four -season tourism destination.220 
4.270.   The Indigenous Tourism Association of Canada (ITAC) has a  main goal of supporting the 
growth of Indigenous tourism in Canada and addressing the demand for the development and 
marketing of authentic Indigenous experiences. It focuses on creating partnerships between 
associations, organizations, government departm ents and industry leaders from across Canada. The 
ITAC has an established membership process that enables Indigenous tourism industry partners to 
engage with, and show support for, Indigenous tourism.221  
4.271.   Provincial and territorial governments also play an a ctive role in the development and 
promotion of tourism at the sub -national level in every part of the country. Ministers responsible for 
tourism from each jurisdiction meet as the Canadian Council of Tourism Ministers, on an annual 
basis, to discuss trends  and issues of concern to the tourism sector and work together to seek 
solutions. The provinces and territories have their own regulations and laws for the tourism sector.   
4.4.4.3   Policy actions  
4.272.   In 2017, the Government of Canada launched the Tourism Vision. This includes a 
whole -of-government, 20 -point action plan, focused on supporting enhanced marketing of Canada 
internationally, improving access for tourists who come to, and travel through, Canada, and 
enhancing the tourist product offerings. Canada 's Tourism V ision sets out ambitious targets for 
growth: (i) positioning Canada to compete to be a top -ten tourist destination in the world by 2025; 
(ii) increasing the number of international overnight visitors to Canada by 30% by 2021; and 
(iii) doubling the number of tourists visiting Canada from China by 2021.  
4.273.   In May 2018, the Government of Canada released the annual report on the Vision, outlining 
key results obtained so far, including that 2017 saw the highest number of tourists arriving in Canada 
to date. In Jul y 2018, the Prime Minister provided the Minister of Tourism, Official Languages and 
La Francophonie with the mandate to promote tourism in Canada, and to harness the full economic 
potential of this key sector. As part of this, the new federal Tourism Strat egy will help expand tourism 
opportunities and help attract new visitors while creating good middle -class jobs in every region. On 
12 November 2018, the Minister announced the creation of the Advisory Council on Jobs and the 
Visitor Economy. The Council wi ll identify important issues facing the tourism sector in Canada. It 
will also recommend new ways to increase tourism opportunities and competitiveness globally, in 
order to support the development of the new Federal Tourism Strategy.  
4.274.   Canada made improved  market access commitments in the tourism sector in recent 
preferential trade agreements (e.g. through CETA and CPTPP).  
4.4.5   E-commerce  
4.275.   E-commerce is a shared jurisdiction matter between the Federal Government and the 
provinces/territories. Regulation affecting  it includes, among other things, protection of personal 
information, legal equivalence of electronic documents and signatures, consumer protection, 
advertising, and the protection of intellectual property (IP).  
                                                
220 Destination Canada online information. Viewed at: https://www.destinationcanada.com/en/about -us. 
221 Indigenous Tourism Association of Canada. Viewed at: https://indigenoustourism.ca/corporate/ . WT/TPR/S/389 • Canada  
 
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  4.276.   Retail e -commerce sales, from both store an d non -store retailers, rose 14.7% from 2017 to 
CAD 18.0 billion in 2018.222 The e -commerce market is, however, likely much larger, as this figure 
does not include the on -line purchases made by consumers from retailers located outside of Canada. 
On-line purch ases of goods by consumers from foreign -located retailers are embedded in Statistics 
Canada 's goods import data series. In 2015, the value of all postal imports, which includes imports 
of on-line purchases, was estimated to be CAD 1.8 billion.223 Findings fr om a 2016 survey by Canada 
Post showed that half of Canadians (53%) made at least one cross -border purchase, with the 
majority purchasing from the United States followed by the Asia -Pacific region, and Europe.224  
4.277.   A number of federal statutes and regulations  provide a general framework for commerce, 
including electronic commerce. In general, all existing laws that apply to traditional commerce apply 
to business conducted via the Internet. Laws governing business incorporation, business name 
registration, taxa tion, consumer protection, advertising, importing or exporting, product safety, and 
product standards apply to e -business. This marketplace framework also consists of laws covering 
areas such as corporate and insolvency law, foreign investment, privacy, e -protection, competition, 
copyright, trade -marks and industrial design, and patents. Taken together, these policies, laws and 
regulations provide the foundation for the digital marketplace, including activities that are core to 
enhancing electronic commerce , such as regulating the use of personal data, IP, and competition.  
4.278.   Canada 's federal data privacy laws include the Privacy Act and the Personal Information 
Protection and Electronic Documents Act (PIPEDA). Canada 's provinces and territories also have 
privacy laws. The Privacy Act is the law that governs the personal information -handling practices of 
federal government institutions. The Act applies to all personal information the federal institutions 
collect, use and disclose. The Act also gives individuals the right to access, and request correction 
of, personal information held by these federal government institutions. The PIPEDA applies to 
businesses/organizations and provides that there must be a consent to collect, use or disclose 
personal information. C anada recently strengthened protections related to data privacy and security, 
through amendments to the PIPEDA, and the accompanying Breach of Security Safeguards 
Regulations. As at 1 November 2018, private sector organizations that experience a breach of data 
security safeguard involving personal information are required to notify individuals as soon as is 
feasible of any breach that poses a real risk of significant harm. They must also report the data 
breach to the Privacy Commissioner of Canada.  
4.279.   Provincial/territorial e -commerce legislation is modelled on the Uniform Electronic Commerce 
Act (UECA).225 The UECAs was adopted in 1999 by the Uniform Law Conference of Canada and is 
based on the 1996 UNCITRAL Model Law on Electronic Commerce.226 Thus, the provinces/territories 
each have their own electronic commerce legislation similar to the UNCITRAL Model La w, with the 
exception of Quebec, which has legislation that is not based on the UECA but is nonetheless 
influenced by the principles of the UNCITRAL Model Law. The main elements of the 
provincial/territorial laws are the legal recognition of electronic inf ormation and a "media neutral " 
approach given to electronic documents. Thus, electronic documents and signatures are given the 
same acceptance and enforceability as their paper counterparts. 
                                                
222 Statistics Canada o nline information . Viewed at: https://www150.statcan.gc.ca/n1/daily -
quotidien/190222/dq190222a -eng.htm .  
223 Statistics Canada  online information . Viewed at: https://www150.statcan.gc.ca/n1/pub/11 -621-
m/11 -621-m2016101 -eng.htm .  
224 Canada Post  online information . Viewed at: 
https://www.canadapost.ca/web/assets/pdf/blogs/canada -post-growing -e-commerce -in-canada -2016_en.pdf .  
225 Uniform Law Conference of Canada online information. Viewed at: https://www.ulcc.ca/en/uniform -
acts-new-order/older -uniform -acts/703 -electronic -commerce/1793 -uniform -electronic -commerce -act-consol -
2011. 
226 United Nations online information. Viewed at: 
http://www.un.or.at/uncitral/english/texts/electcom/ml -ec.htm .  WT/TPR/S/389 • Canada  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports including re -exports by group of products, 2014 -18 
HS Section/HS Chapters/subheadings  2014  2015  2016  2017  2018  
Total (CAD billion)  526.8  524.1  516.8  546.2  583.0   
(% of total)  
01 Live animals and products  2.6 2.7 2.9 2.8 2.7 
02 Vegetable products  4.9 5.3 5.2 5.1 4.8 
     12 Oil seeds and oleaginous fruits  1.6 1.7 1.8 1.9 1.7 
     10 Cereals  1.8 1.8 1.4 1.5 1.6 
03 Fats and oils  0.6 0.6 0.7 0.8 0.7 
04 Prepared food, beverages and tobacco  2.6 3.0 3.3 3.2 3.2 
05 Mineral products  29.1 20.9 17.8 22.1 24.0 
     27 Mineral fuels and oils  27.0 18.9 16.0 20.1 22.0 
2709 Petroleum oils and oils obtained from 
bituminous minerals, crude  18.5 12.2 10.1 12.8 14.9 
06 Chemicals and products thereof  6.0 6.8 6.6 5.8 6.3 
07 Plastics and rubber  3.6 3.8 3.9 3.7 3.8 
08 Raw hides and skins; leather, fur skins and articles 
thereof  0.3 0.3 0.2 0.2 0.2 
09 Wood, cork, straw  2.7 2.9 3.4 3.4 3.2 
10 Pulp of wood; paper and paperboard  3.4 3.7 3.5 3.4 3.6 
11 Textiles and textile articles  0.7 0.8 0.8 0.7 0.7 
12 Footwear, headgear, etc.  0.1 0.1 0.1 0.1 0.1 
13 Articles of stone, plaster, cement  0.4 0.4 0.5 0.5 0.4 
14 Precious stones and metals, pearls  4.6 4.7 4.9 4.5 4.0 
15 Base metals and articles thereof  7.1 7.3 7.1 7.7 7.8 
     76 Aluminium and articles thereof  1.9 2.0 2.1 2.3 2.2 
16 Machinery, electrical equipment  9.7 10.8 10.9 10.7 10.7 
     84 Machinery and mechanical appliances  6.9 7.6 7.7 7.7 7.7 
8411 Turbo -jets, turbo -propellers and other 
gas turbines  1.0 1.2 1.3 1.4 1.5 
85 Electrical machinery and equipment and parts 
thereof  2.9 3.2 3.2 3.1 3.0 
17 Transport equipment  15.4 17.9 19.3 17.3 15.9 
     87 Vehicles  12.6 14.7 16.5 14.8 13.4 
8703 Motor cars and other motor vehicles 
principally designed for the transport of people  9.4 10.9 12.5 11.0 9.1 
18 Precision instruments  1.3 1.5 1.6 1.6 1.6 
19 Arms and ammunition  0.1 0.1 0.1 0.1 0.1 
20 Miscellaneous manufactured articles  1.4 1.8 1.9 1.8 1.7 
21 Works of art, collectors' pieces and antiques   0.1   0.1   0.1   0.1   0.1  
Other (HS 98 and HS 99)   3.6   4.5   5.2   4.6   4.5  
Source:   WTO Secretariat calculations, based on Government, Statistics Canada, and Canada International 
Merchandise Trade Database data; and Trade Data Online.  
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  Table A1. 2 Merchandise imports by group of products, 2014 -18 
HS Section/HS Chapters/subheadings  2014  2015  2016  2017  2018  
Total (CAD billion)  512.2  536.2  533.3  561.4  594.7   
(% of total)  
01 Live animals and products   1.2   1.2   1.3   1.2   1.2  
02 Vegetable products   2.5   2.7   2.8   2.8   2.7  
03 Fats and oils   0.2   0.2   0.2   0.2   0.2  
04 Prepared food, beverages and tobacco   4.1   4.3   4.5   4.3   4.2  
05 Mineral products   11.3   8.0   7.2   7.8   8.8  
     27 Mineral fuels and oils   10.3   7.1   6.3   6.9   7.9  
06 Chemicals and products thereof   8.4   8.7   8.7   8.6   8.8  
07 Plastics and rubber   4.9   5.0   5.1   5.1   5.1  
08 Raw hides and skins; leather, furskins and articles thereof   0.5   0.5   0.5   0.5   0.5  
09 Wood, cork, straw   0.7   0.7   0.7   0.7   0.7  
10 Pulp of wood; paper and paperboard   1.9   2.0   1.9   1.9   1.8  
11 Textiles and textile articles   3.0   3.2   3.3   3.2   3.1  
12 Footwear, headgear, etc.   0.6   0.7   0.7   0.7   0.7  
13 Articles of stone, plaster, cement   1.2   1.3   1.3   1.2   1.2  
14 Precious stones and metals, pearls   2.8   2.6   2.6   2.3   1.9  
15 Base metals and articles thereof   7.0   6.6   6.1   6.6   6.9  
16 Machinery, electrical equipment   24.1   25.0   25.2   24.6   24.8  
     84 Machinery and mechanical appliances   14.6   15.1   15.3   14.7   15.0  
8471 Automatic data processing machines and units 
thereof   1.9   1.9   1.9   2.0   2.0  
     85 Electrical machinery   9.5   9.8   9.8   9.9   9.8  
           8517 Telephone sets   2.0   2.3   2.2   2.4   2.4  
17 Transport equipment   17.4   18.6   19.0   19.6   18.9  
     87 Vehicles   15.2   15.9   16.7   17.2   16.4  
8703 Motor cars and other motor vehicles principally 
designed for the transport of people   5.8   6.3   6.6   6.6   6.5  
8708 Parts and accessories of the motor vehicles   4.4   4.7   5.1   4.7   4.4  
8704 Motor vehicles  for the transport of goods   2.8   2.8   3.2   3.7   3.1  
18 Precision instruments   2.9   3.1   3.1   3.0   2.9  
19 Arms and ammunition   0.1   0.1   0.1   0.1   0.1  
20 Miscellaneous manufactured articles   3.2   3.4   3.5   3.4   3.3  
21 Works of art, collectors' pieces and antiques   0.1   0.1   0.1   0.0   0.1  
Other (HS 98 and HS 99)   1.9   2.0   2.0   2.0   2.1  
Source:  WTO Secretariat calculations, based on Government, Statistics Canada, and Canada International 
Merchandise Trade Database data; and Trade Data Online.  
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  Table A1. 3 Merchandise exports including re -exports by destination, 2014 -18 
  2014  2015  2016  2017  2018  
Total exports (CAD billion)  526.8  524.1  516.8  546.2  583.0   
% of total  
Americas  79.6 79.6 79.2 78.6 77.9 
  United States  76.8 76.7 76.3 75.9 75.1 
  Other America  2.7 2.8 2.9 2.8 2.8 
          Mexico  1.1 1.3 1.5 1.4 1.4 
          Brazil  0.4 0.4 0.4 0.3 0.4 
Europe  8.3 8.0 8.5 8.6 8.6 
  EU-28 7.4 7.2 7.7 7.6 7.6 
          United Kingdom  2.9 3.0 3.3 3.2 2.8 
          Germany  0.6 0.7 0.8 0.8 0.8 
          Netherlands  0.7 0.7 0.5 0.6 0.8 
          Belgium  0.7 0.6 0.6 0.6 0.6 
          France  0.6 0.6 0.7 0.6 0.6 
          Italy 0.8 0.4 0.5 0.4 0.5 
          Spain  0.2 0.2 0.3 0.3 0.4 
  EFTA 0.7 0.6 0.6 0.8 0.8 
          Norway  0.4 0.4 0.3 0.4 0.4 
          Switzerland  0.3 0.2 0.3 0.4 0.3 
  Other Europe  0.2 0.2 0.2 0.2 0.2 
          Turkey  0.2 0.2 0.2 0.2 0.2 
Commonwealth of independent states (CIS)  0.3 0.2 0.2 0.2 0.2 
Africa  0.9 0.9 0.7 0.7 0.7 
Middle  East 0.9 0.9 0.9 0.8 0.9 
          Saudi Arabia, Kingdom of  0.2 0.2 0.2 0.3 0.3 
          United Arab Emirates  0.3 0.4 0.3 0.3 0.2 
Asia 10.1 10.4 10.5 11.0 11.7 
  China  3.7 3.9 4.1 4.3 4.7 
  Japan  2.0 1.9 2.1 2.2 2.2 
  Other Asia  4.4 4.7 4.4 4.5 4.7 
          Korea, Republic of  0.8 0.8 0.8 1.0 1.0 
          India 0.6 0.8 0.8 0.8 0.7 
          Hong Kong, China  0.9 0.7 0.5 0.4 0.7 
          Indonesia  0.4 0.3 0.3 0.3 0.4 
          Australia  0.3 0.4 0.4 0.4 0.3 
          Chinese Taipei  0.3 0.3 0.3 0.3 0.3 
Other  0.0 0.0 0.0 0.0 0.0 
Source:   WTO Secretariat calculations, based on Government, Statistics Canada, and Canada International 
Merchandise Trade Database data; and Trade Data Online.        
 
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  Table A1. 4 Merchandise imports by origin, 2014 -18 
  2014  2015  2016  2017  2018  
Total imports (CAD billion)  512.2  536.2  533.2  561.4  594.7   
(% of total)   
Americas  64.1 62.9 62.1 61.4 60.8 
  United States  54.4 53.2 52.2 51.4 51.1 
  Other America  9.7 9.7 9.9 10.0 9.7 
          Mexico  5.6 5.8 6.2 6.3 6.2 
          Brazil  0.7 0.7 0.7 0.8 0.9 
Europe  12.8 12.9 12.8 13.3 14.0 
  EU-28 11.3 11.5 11.4 11.8 12.4 
          Germany  3.1 3.2 3.2 3.2 3.2 
          United Kingdom  1.8 1.7 1.5 1.6 1.5 
          Italy 1.3 1.4 1.4 1.5 1.5 
          France  1.2 1.3 1.1 1.1 1.2 
          Netherlands  0.7 0.6 0.7 0.7 0.8 
          Belgium  0.4 0.4 0.4 0.6 0.7 
          Ireland  0.3 0.3 0.4 0.4 0.5 
          Spain  0.4 0.4 0.4 0.5 0.5 
          Sweden  0.4 0.3 0.4 0.4 0.4 
  EFTA 1.2 1.2 1.2 1.2 1.2 
          Switzerland  0.8 0.8 0.8 0.8 0.8 
  Other Europe  0.3 0.3 0.3 0.3 0.4 
Commonwealth of independent states (CIS)  0.4 0.4 0.4 0.6 0.5 
Africa  1.2 1.1 1.3 1.0 0.7 
Middle East  1.2 0.7 0.6 0.8 1.0 
          Saudi Arabia, Kingdom of  0.5 0.4 0.3 0.5 0.6 
Asia 20.3 22.0 22.7 23.0 23.0 
  China  11.5 12.2 12.1 12.6 12.7 
  Japan  2.6 2.8 3.0 3.1 2.8 
  Other Asia  6.3 7.0 7.7 7.2 7.4 
          Korea, Republic of  1.4 1.5 2.0 1.5 1.6 
          Chinese Taipei  0.9 1.0 1.0 1.0 1.0 
          Viet Nam  0.6 0.8 0.9 0.9 0.9 
          India 0.6 0.7 0.8 0.7 0.9 
          Thailand  0.6 0.6 0.6 0.6 0.6 
          Malaysia  0.5 0.5 0.5 0.5 0.5 
Other  0.0 0.0 0.0 0.0 0.0 
 
Source:   WTO Secretariat calculations, based on Government, Statistics Canada, and Canada International 
Merchandise Trade Database data; and Trade Data Online.        
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  Table A2. 1 Involvement in dispute settlement cases, 1 January 2015 -31 January 2019  
Subject  Respondent/ 
complainant/  
appellant  Request for 
consultation 
received  Status (as at  
31 January 2019)  WTO 
document 
series  
Requests for consultations  
Canada - Measures Governing 
the Sale of Wine in Grocery 
Stores  Canada/United States  18 January 2017  Consultations  WT/DS520  
United States - Certain 
Systemic Trade Remedies 
Measures  United States/Canada  20 December 
2017 Consultations  WT/DS535  
Panels  
Canada as complainant:  
China — Anti-dumping 
Measures on Imports of 
Cellulose Pulp from Canada  China/United States  15 October 2014  Implementation 
notified by respondent 
on 11 January 2018  WT/DS483  
United States - Countervailing 
Measures on Supercalendered 
Paper from Canada  United States/Canada  
 30 March 2016  Panel report under 
appeal  WT/DS505  
United States - Countervailing 
Measures on Softwood 
Lumber from Canada  United States/Canada  28 November 
2017 Panel composed  WT/DS533  
United States - Anti-dumping 
Measures Applying Differential 
Pricing Methodology to 
Softwood Lumber from 
Canada  United States/Canada  28 November 
2017 Panel composed  WT/DS534  
United States - Certain 
Measures on Steel and 
Aluminium Products  United States/Canada  1 June 2018  Panel composed  WT/DS550  
Canada as a respondent :     
Canada — Anti-dumping 
Measures on Imports  of 
Certain Carbon Steel Welded 
Pipe from the Separate 
Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu  Canada/Chinese Taipei  25 June 2014  Report adopted  WT/DS482  
Canada - Measures 
Concerning Trade in 
Commercial Aircraft  Canada/Brazil  8 February 2017  Panel composed  WT/DS522  
Canada - Measures Governing 
the Sale of Wine in Grocery 
Stores (second complaint)  Canada/United States  28 September 
2017 Panel established, but 
not yet composed  WT/DS531  
Canada - Measures Governing 
the Sale of Wine  Canada/Australia  12 January 2018  Panel established, but 
not yet composed  WT/DS537  
Canada - Additional Duties on 
Certain Products from the 
United States  Canada/United States  16 July 2018  Panel composed  WT/DS557  
Compliance Panel under Article 21.5  
United States – Certain 
Country of Origin Labelling 
(COOL) Requirements  United States: 
Appellant/Appellee  
Canada: Other 
Appellant/Appellee   Appellate Body 
Report circulated on 
18 May 2015 and 
adopted on 29 May 
2015  WT/DS384  
Arbitration under Article 22.6  
United States – Certain 
Country of Origin Labelling 
(COOL) Requirements  United States/Canada   Report circulated on 
7 December 2015  WT/S384  
 
Source:  WTO Secretariat.  
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  Table A2. 2 Selected notifications to the WTO, 1 January 2015 -31 December 2018  
WTO agreement  Description  Document symbol  Date  
Agreement on Agriculture  
Articles 10 and 18.2 
(ES:1, ES:2, and ES:3)  Export subsidies commitments: 
budgetary outlays and quantity 
reduction  commitments  G/AG/N/CAN/118  
G/AG/N/CAN/109  
G/AG/N/CAN/108  22/03/2018  
29/04/2016  
01/07/2015  
Article 16.2  
NF:1 (1) -(4) Net-food Importing Developing Country 
(NFIDC) Decision: food and other 
assistance  G/AG/N/CAN/115  
  28/10/2016  
  
Article 18.2 (DS:1)  Domestic support  G/AG/N/CAN/122  
G/AG/N/CAN/113/Rev.1, 
G/AG/N/CAN/113 G/AG/N/CAN/104  30/05/2018  
29/09/2017  
27/10/2016  
26/02/2015  
Article 18.2 (MA:1)  Administration of tariff and other quota 
commitments  G/AG/N/CAN/116  
  14/03/2018  
  
Article 18.2 (MA:2)  Tariff quotas  G/AG/N/CAN/120  
G/AG/N/CAN/112  
G/AG/N/CAN/111  
G/AG/N/CAN/107  16/03/2018  
08/07/2016  
15/06/2016  
28/04/2015  
Article 18.3 (DS:2)  New or modified exempt domestic 
support measures  G/AG/N/CAN/121  
G/AG/N/CAN/114  
G/AG/N/CAN/105  29/05/2018  
27/10/2016  
26/02/2015  
Articles 5.7 and 18.2 
(MA:5)  Special safeguard provisions  G/AG/N/CAN/119  
G/AG/N/CAN/117  
G/AG/N/CAN/110  
G/AG/N/CAN/106  16/03/2018  
14/03/2018  
26/05/2016  
28/04/2015  
General Agreement on Trade in Services  
Article III:4 or IV:2  Contact and enquiry  points  S/ENQ/78/Rev.15  04/02/2015  
Article V:7(a)(3)  Economic integration agreements: 
CETA, Canada and Honduras, Canada 
and the Republic of Korea, CTPPP  S/C/N/920  
S/C/N/896  
S/C/N/791  
S/C/N/789  20/12/2018  
21/09/2017  
05/02/2015  
20/01/2015  
WT/L/847  Services  LDC waiver  S/C/N/792/Rev.1  
S/C/N/792  16/12/2015  
09/03/2015  
Agreement on the Implementation of Article VI of the GATT 1994 (Anti -dumping Agreement)  
Article 16.4 – ad hoc Anti-dumping actions (preliminary and 
final)  G/ADP/N/320  
G/ADP/N/319  
G/ADP/N/318  
G/ADP/N/316  
G/ADP/N/313  
G/ADP/N/310  
G/ADP/N/307  
G/ADP/N/306  
G/ADP/N/305  
G/ADP/N/304  
G/ADP/N/303  
G/ADP/N/299  
G/ADP/N/298  
G/ADP/N/297  
G/ADP/N/296  
G/ADP/N/295  
G/ADP/N/291  
G/ADP/N/288  
G/ADP/N/285  
G/ADP/N/283  
G/ADP/N/282  
G/ADP/N/277  
G/ADP/N/274  
G/ADP/N/271  
G/AD P/N/270  
G/ADP/N/268  29/11/2018  
18/10/2018  
24/09/2018  
27/07/2018  
30/05/2018  
22/02/2018  
20/12/2017  
14/12/2017  
19/10/2017  
20/09/2017  
30/08/2017  
31/05/2017  
20/04/2017  
23/03/2017  
24/02/2017  
30/01/2017  
18/10/2016  
28/07/2016  
31/05/2016  
24/03/2016  
23/02/2016  
15/10/2015  
24/07/2015  
29/05/2015  
16/04/2015  
20/02/2015  
Article 16.4 – semi-
annual  Anti-dumping actions (taken within the 
preceding six months)  G/ADP/N/314/CAN  
G/ADP/N/308/CAN  
G/ADP/N/300/CAN  
G/ADP/N/294/CAN  
G/ADP/N/286/CAN  
G/ADP/N/280/CAN  
G/ADP/N/272/CAN  
G/ADP/N/265/CAN  14/09/2018  
14/03/2018  
15/09/2017  
21/03/2017  
22/09/2016  
01/03/2016  
07/09/2015  
17/03/2015  
Article 18.5  Notification of laws and regulations 
under Article 18.5  G/ADP/N/1/CAN/4/Suppl.2  
G/ADP/N/1/CAN/4/Suppl.1  19/06/2018  
23/08/2016  
GATT 1994  
Article XXIV:7(a) of 
GATT 1994  Free-trade areas: CETA, CUFTA, Canada 
and Honduras, Canada and the Republic 
of Korea, CTPPP  WT/REG395/N/1  
WT/REG389/N/1  
WT/REG388/N/1/Rev.1  
WT/REG388/N/1  
WT/REG364/N/1  
WT/REG362/N/1  20/12/2018  
21/09/2017  
15/09/2017  
14/09/2017  
05/02/2015  
20/01/2015  WT/TPR/S/389 • Canada  
 
- 213 - 
 
  WTO agreement  Description  Document symbol  Date  
Article XVII:4(a)  
and Paragraph  1 of the 
Understanding on  
the Interpretation of 
Article XVII  State trading activities  
  G/STR/N/17/CAN  
G/STR/N/16/CAN  
  13/07/2018  
22/07/2016  
  
Article XXVIII:5  Invocation of paragraph 5 of Article 
XXVIII  G/MA/347  17/11/2017  
Agreement on Government Procurement 1994  
Article XIX:5  Statistics reported under Article XIX:5  GPA/123/Add.6  
GPA/119/Add.4  
GPA/114/Add.6  
GPA/108/Add.8  12/02/2016  
19/10/2015  
19/10/2015  
19/10/2015  
Agreement on Government Procurement 2012  
Article XVI:4  Statistics reported under Article XVI:4 of 
the revised GPA  GPA/130/Add.7/Rev.1  
GPA/130/Add.7  12/04/2017  
06/02/2017  
Article XXII:5  Notification of domestic legislation 
relevant to the GPA  GPA/136  
GPA/128  31/03/2016  
05/05/2015  
Article XXII:8  Work Programme on the Collection and 
Reporting of Statistical Data  GPA/WPS/STAT/27  
GPA/WPS/STAT/2  19/04/2018  
27/05/2015  
Article XXII:8  Exchanges Among the Parties on 
Responses to SME Questionnaire 
Pursuant to Paragraph 3.2(c) of  the 
Committee 's Decision on a Work 
Programme on SMEs  GPA/WPS/SME/29  
GPA/WPS/SME/28  
GPA/WPS/SME/17  
GPA/WPS/SME/13  
GPA/WPS/SME/1  05/09/2016  
05/09/2016  
27/05/2016  
09/12/2015  
18/05/2015  
Procurement thresholds  Thresholds in Appendix I of the 
Agreement, as expressed in national 
currencies  GPA/THR/CAN/1  
GPA/W/336/Add.5  15/01/2018  
19/01/2016  
Agreement on Import Licensing  
Articles 5.1 -5.4 Notification under Articles 5.1 -5.4 of the 
Agreement  G/LIC/N/2/CAN/1  14/09/2018  
Article 7.3  Replies to the questionnaire  G/LIC/N/3/CAN/17  
G/LIC/N/3/CAN/16  
G/LIC/N/3/CAN/15  
G/LIC/N/3/CAN/14  
G/LIC/N/3/CAN/13  01/10/2018  
29/11/2017  
06/10/2016  
25/02/2016  
25/02/2015  
Trade Facilitation Agreement  
Article 22  Notification based on Article 22 of the 
TFA G/TFA/N/CAN/3  
G/TFA/N/CAN/2  
G/TFA/N/CAN/1  15/08/2018  
03/07/2017  
03/07/2017  
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  Notification of QRs  G/MA/QR/N/CAN/3  17/10/2016  
Agreement on Rules of Origin  
Paragraph 4 of Annex II  Preferential rules of origin  G/RO/N/169  
G/RO/N/168  
G/RO/N/134  
G/RO/N/133  24/05/2018  
25/05/2018  
02/10/2015  
02/10/2015  
WT/L/917/Add.1 
(Paragraph 4.3 of the 
2015 Ministerial 
Decision)  Notification of preferential rules of origin 
for LDCs  G/RO/LDC/N/CAN/2  
G/RO/LDC/N/CAN/1  10/10/2017  
13/06/2017  
  
Agreement on Subsidies and Countervailing Measures  
Article 25.1 and GATT 
1994 Article XVI:1  Subsidies  G/SCM/N/315/CAN  
G/SCM/N/284/CAN  12/07/2017  
09/07/2015  
Article 25.11 – ad hoc  Countervailing duty actions (preliminary 
and final)  G/SCM/N/339  
G/SCM/N/338  
G/SCM/N/336  
G/SCM/N/333  
G/SCM/N/330  
G/SCM/N/327  
G/SCM/N/326  
G/SCM/N/324  
G/SCM/N/323  
G/SCM/N/319  
G/SCM/N/318  
G/SCM/N/317  
G/SCM/N/307  
G/SCM/N/304  
G/SCM/N/302  
G/SCM/N/301  
G/SCM/N/295  
G/SCM/N/292  
G/SCM/N/288  
G/SCM/N/287  
G/SCM/N/285  16/10/2018  
17/09/2018  
24/07/2018  
25/05/2018  
22/02/2018  
15/12/2017  
09/11/2017  
14/09/2017  
04/08/2017  
12/05/2017  
13/04/2017  
14/03/2017  
14/07/2016  
24/05/2016  
16/03/2016  
25/02/2016  
09/10/2015  
23/07/2015  
29/05/2015  
16/04/2015  
23/02/2015  
Article 25.11 - semi 
annual  Countervailing duty actions (taken 
within the preceding six months)  G/SCM/N/334/CAN  
G/SCM/N/328/CAN  
G/SCM/N/321/CAN  
G/SCM/N/313/CAN  
G/SCM/N/305/CAN  19/09/2018  
26/03/2018  
21/09/2017  
21/03/2017  
27/09/2016  WT/TPR/S/389 • Canada  
 
- 214 - 
 
  WTO agreement  Description  Document symbol  Date  
G/SCM/N/298/CAN  
G/SCM/N/289/CAN  
G/SCM/N/281/CAN  16/03/2016  
18/09/2015  
20/03/2015  
Article 32.6  Notification of laws and regulations 
under Article 32.6  G/SCM/N/1/CAN/4/Suppl.2  
G/SCM/N/1/CAN/4/Suppl.1  19/06/2018  
23/08/2016  
Agreement on Safeguards  
Article 12.1 (A), Article 
12.4 and Article 9  
 
 
 
Article 12.6  WTO Agreement on Safeguards, upon 
initiating an investigation and imposing 
a provisional measure on imports of 
certain steel products  
 
Notification of Laws, Regulations and 
Administrative Procedures Relating to 
Safeguard Measures  G/SG/N/6/CAN/4  G/SG/N/7/CAN/1  
G/SG/N/11/CAN/1  
 
 
G/SG/N/1/CAN/3/Suppl.1  15/10/2018  
 
 
 
 
19/06/2018  
  
Agreement on Sanitary and Phytosanitary Measures  
Article 7 Annex  B Sanitary and phytosanitary regulations  614 notifications received. Viewed 
at: http://spsims.wto.org/    
Agreement on Technical Barriers to Trade  
Article 2.10  TBT Notification  G/TBT/N/CAN/562  
G/TBT/N/CAN/531 
G/TBT/N/CAN/531/Corr.1  
G/TBT/N/CAN/525  
G/TBT/N/CAN/525/Add.1  
G/TBT/N/CAN/496  
G/TBT/N/CAN/496/Corr.1  09/08/2018  
25/08/2017  
01/09/2017  
08/05/2017  
18/07/2017  
12/09/2016  
20/09/2016  
Article 2.9  Technical regulations  103 notifications received Viewed at: 
http://tbtims.wto.org/    
Articles 2.9 and 5.6  Technical regulations and conformity  
assessment procedures  47 notifications received. Viewed at: 
http://tbtims.wto.org/    
Article 5.6  TBT Notification  G/TBT/N/CAN/534  06/11/2017  
Article unspecified  Notification  G/TBT/N/CAN/506   12/12/2016  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article 63.2  Laws/regulations; amendment of a 
law/regulation  IP/N/1/CAN/20  
IP/N/1/CAN/T/5  
IP/N/1/CAN/18  
IP/N/1/CAN/P/13  
IP/N/1/CAN/19  
IP/N/1/CAN/G/1  
IP/N/1/CAN/11/Rev.1  
IP/N/1/CAN/O/2/Rev.1  
IP/N/1/CAN/17  
IP/N/1/CAN/C/7  
IP/N/1/CAN/16  
IP/N/1/CAN/P/12  
IP/N/1/CAN/15  
IP/N/1/CAN/C/6  
IP/N/1/CAN/14  
IP/N/1/CAN/P/11  
IP/N/1/CAN/13  
IP/N/1/CAN/O/3  
IP/N/1/CAN/12  
IP/N/1/CAN/T/4  
IP/N/1/CAN/C/5  
IP/N/1/CAN/11  
IP/N/1/CAN/O/2  
IP/N/1/CAN/10  
IP/N/1/CAN/P/10  
IP/N/1/CAN/9  
IP/N/1/CAN/D/3  
IP/N/1/CAN/8  
IP/N/1/CAN/C/4  
IP/N/1/CAN/7  
IP/N/1/CAN/T/3   14/06/2018  
14/06/2018  
11/06/2018  
11/06/2018  
11/06/2018  
11/06/2018  
10/05/2017  
10/05/2017  
10/11/2016  
10/11/2016  
08/06/2016  
08/06/2016  
07/06/2016  
07/06/2016  
07/06/2016  
07/06/2016  
23/04/2015  
23/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
22/04/2015  
Source:     WTO Secretariat.  WT/TPR/S/389 • Canada  
 
- 215 - 
 
  Table A3. 1 Definitive Anti -Dumping Measures in Force, as of 31 December 2018  
Country/  
Customs 
Territory  Product,  
investigation ID 
number  Measure(s)  Date of original 
imposition; 
publication reference  Date(s) of extension; 
publication 
reference(s)  
Belarus  Certain concrete 
reinforcing bar  Duties  03.05.17   
Brazil  Certain hot -rolled steel 
sheet (previously 
hot-rolled carbon steel 
sheet)  Duties  17.08.01  16.08.06  
15.08.11  
12.08.16  
Certain copper tube  Duties  18.12.13   
Certain steel plate  Duties  20.05.14   
Bulgaria  Certain hot -rolled steel 
plate (previously 
hot-rolled carbon steel 
plate)  Duties  09.01.04  08.01.09  
07.01.14  
China  Certain hot -rolled steel 
plate (previously 
hot-rolled carbon steel 
plate)  Duties  27.10.97  10.01.03  
09.01.08  
08.01.13  
Certain hot -rolled steel 
sheet (previously 
hot-rolled carbon steel 
sheet)  Duties  17.08.01  16.08.06  
15.08.11  
12.08.16  
Certain steel fasteners  Duties  07.01.05  06.01.10  
05.01.15  
Certain copper pipe 
fittings  Duties  19.02.07  17.02.12  
28.11.16  
Certain seamless steel 
casing  Duties  10.03.08  11.03.13  
Certain carbon steel 
welded pipe  Duties  20.08.08  19.08.13  
Certain thermoelectric 
coolers and warmers  Duties  11.12.08  09.12.13  
Certain aluminium 
extrusions  Duties  17.03.09  17.03.14  
Certain oil country tubular 
goods  Duties  23.03.10  02.03.15  
Certain steel grating  Duties  19.04.11  18.04.16  
Certain pup joints  Duties  10.04.12  07.04.17  
Certain stainless -steel 
sinks Duties  24.05.12   
Certain steel piling pipe  Duties  30.11.12   
Certain unitized wall 
modules  Duties  12.11.13   
Certain silicon metal  Duties  19.11.13   
Certain copper tube  Duties  18.12.13   
Certain concrete 
reinforcing bar  Duties  09.01.15   
Certain photovoltaic 
modules and laminates  Duties  03.07.15   
Certain carbon and alloy 
steel line pipe  Duties  29.03.16   
Certain large diameter 
carbon and alloy steel line 
pipe Duties  20.10.16   
Certain fabricated 
industrial steel 
components  Duties  25.05.17   
 Sucker rods  Duties  14.12.18   
 Cold roll steel  Duties  21.12.18   
Czech 
Republic  Certain hot -rolled steel 
plate (previously 
hot-rolled carbon steel 
plate)  Duties  09.01.04  08.01.09  
07.01.14  
Denmark  Certain refined sugar  Duties  06.11.95  03.11.00  
02.11.05  
01.11.10a 
30.10.15  
Certain steel plate  Duties  20.05.14   
     WT/TPR/S/389 • Canada  
 
- 216 - 
 
  Country/  
Customs 
Territory  Product,  
investigation ID 
number  Measure(s)  Date of original 
imposition; 
publication reference  Date(s) of extension; 
publication 
reference(s)  
Germany  Certain refined sugar  Duties  06.11.95  03.11.00  
02.11.05  
01.11.10b 
30.10.15  
Greece  Certain copper tube  Duties  18.12.13   
Hong Kong, 
China  Certain concrete 
reinforcing bar  Duties  03.05.17   
India Certain carbon steel 
welded pipe  Duties  11.12.12   
Certain oil country tubular 
goods  Duties  02.04.15   
     
Indonesia  Certain steel plate  Duties  20.05.14   
Certain oil country tubular  
goods  Duties  02.04.15   
     
Italy Certain steel plate  Duties  20.05.14   
Japan  Certain concrete 
reinforcing bar  Duties  03.05.17   
Certain steel plate  Duties  20.05.14   
Certain large diameter 
carbon and alloy steel line 
pipe Duties  20.10.16   
Korea, 
Rep. of Certain hollow structural 
sections  Duties  23.12.03  22.12.08  
20.12.13  
Certain copper pipe 
fittings  Duties  19.02.07  17.02.12  
28.11.16  
Certain liquid dielectric 
transformers  Duties  20.11.12   
Certain carbon steel 
welded pipe  Duties  11.12.12   
Certain copper tube  Duties  18.12.13   
Certain steel plate  Duties  20.05.14   
Certain concrete 
reinforcing bar  Duties  09.01.15   
Certain oil country tubular 
goods  Duties  02.04.15   
Certain fabricated 
industrial steel 
components  Duties  25.05.17   
 Certain carbon and alloy 
steel line pipe 2 Duties  04.01.18   
 Cold roll steel  Duties  21.12.18   
Mexico  Certain copper tube  Duties  18.12.13   
Netherlands  Certain refined sugar  Duties  06.11.95  03.11.00  
02.11.05  
01.11.10c 
30.10.15  
Oman  Certain carbon steel 
welded pipe  Duties  11.12.12   
Philippines  Certain oil country tubular 
goods  Duties  02.04.15   
Portugal  Certain concrete 
reinforcing bar  Duties  03.05.17   
Romania  Certain hot -rolled steel 
plate (previously 
hot-rolled carbon steel 
plate)  Duties  09.01.04  08.01.09  
07.01.14  
Spain  Certain concrete 
reinforcing bar  Duties  03.05.17   
Certain fabricated 
industrial steel 
components  Duties  25.05.17   
     
Chinese 
Taipei  Certain steel fasteners  Duties  07.01.05  06.01.10  
05.01.15  
Certain carbon steel 
welded pipe  Duties  11.12.12   WT/TPR/S/389 • Canada  
 
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  Country/  
Customs 
Territory  Product,  
investigation ID 
number  Measure(s)  Date of original 
imposition; 
publication reference  Date(s) of extension; 
publication 
reference(s)  
Certain oil country tubular 
goods  Duties  02.04.15   
Certain concrete 
reinforcing bar  Duties  03.05.17   
     
Thailand  Certain carbon steel 
welded pipe  Duties  11.12.12   
Certain oil country tubular 
goods  Duties  02.04.15   
     
Turkey  Certain hollow structural 
sections  Duties  23.12.03  22.12.08  
20.12.13  
Certain concrete 
reinforcing bar  Duties  09.01.15   
Certain oil country tubular 
goods  Duties  02.04.15   
Dry wheat pasta  Duties  26.07.18   
Ukraine  Certain hot -rolled steel 
sheet (previously 
hot-rolled carbon steel 
sheet)  Duties  17.08.01  16.08.06  
15.08.11  
12.08.16  
Certain steel plate  Duties  02.02.10  30.01.15  
Certain oil country tubular 
goods  Duties  02.04.15   
United Arab 
Emirates  Certain carbon steel 
welded pipe  Duties  11.12.12   
United 
Kingdom  Certain refined sugar  Duties  06.11.95  03.11.00  
02.11.05  
01.11.10d 
30.10.15  
United States  Certain whole potatoese Duties  04.06.84  
18.04.86  14.09.90  
14.09.95  
13.09.00  
12.09.05  
10.09.10  
09.09.15  
Certain refined sugar  Duties  06.11.95  03.11.00  
02.11.05  
01.11.10  
30.10.15  
Certain copper pipe 
fittings  Duties  19.02.07  17.02.12  
28.11.16  
Certain gypsum board  Duties  04.01.17   
     
Viet Nam  Certain oil country tubular 
goods  Duties  02.04.15   
Copper pipe fittings  Duties  25.05.18   
 Cold roll steel  Duties  21.12.18   
a The finding against Denmark was originally rescinded but this decision was reversed on appeal and 
duties were reinstated in accordance with the Tribunal's decision of 28 September 2012.  
b  The finding against Germany was originally rescinded but this decision was reversed on appeal and 
duties were reinstated in accordance with the Tribunal's decision of 28 September 2012.  
c  The finding against the Netherlands was originally rescinded but this decision was reversed on 
appeal and duties were reinstated in accordance with the Tribunal's decision of 28 September 2012.  
d The finding against the United Kingdom was originally rescinded but this decision was reversed on 
appeal and duties were reinstated in accordance with the Tribunal's decision of 28 September 2012.  
e This case was originally two separate dumping investigations concerning whole potatoes: one with 
respect to non -size A russets potatoes from the state of Washington (date of original imposition: 
4 June 1984) and another with regard to whole potatoes from the United States, excluding those 
potatoes covered by the previous finding (date of original imposition: 18 April 1986). Those 
two investigations merged before the first expiry review in 1990.  
Source:  WTO docume nts G/ADP/N/308/CAN, 14 March 2018, G/ADP/N/314/CAN, 14 September 2018, and 
G/ADP/N/322/CAN  (to be issued) , and CBSA online information, at: https://www.cbsa -asfc.gc.ca/sima -
lmsi/hist -eng.html . 
  WT/TPR/S/389 • Canada  
 
- 218 - 
 
  Table A3. 2 Selected federal incentives programmes, 2018  
Programme  Form of assistance  Disbursements  
Industrial programmes  
Aboriginal 
Entrepreneurship 
Program (AEP)  Repayable or non -repayable contributions for a range of 
activities including business planning, start -up, 
expansion and/or marketing, of up to CAD 99,999 for a 
single project or CAD 250,000 for community -owned 
businesses.  23 projects, totalling 
CAD 6,327, 025 in 2016 -17. 
 
26 projects totalling 
CAD 6,747,981 in 2017 -18. 
 
15 projects totalling 
CAD 4,928,377 in 2018 -19. 
ACOA Business 
Development 
Program (BDP)  Grants and contributions are provided to not -for-profit 
organizations and businesses to improve the growth and 
competitiveness of Atlantic Canadian SMEs; provide for 
dynamic and sustainable communities in Atlantic 
Canada; and provide for initiatives that strengthen the 
Atlantic economy. Contributions are repayable (normally 
within 10  years), conditionall y repayable or non -
repayable.  CAD 133,490,945 in FY 2015/16; 
CAD 157,475,355 in FY 2016/17; 
CAD 175,416,579 in FY 2017/18; 
and CAD  162,477,131 (estimate) 
in FY 2018/19 . 
Advanced 
Manufacturing Fund 
(AMF)  Repayable contributions to for -profit organizations, and 
non-repayable contributions to not -for-profit 
organizations. Eligible recipients include established for -
profit businesses in Ontario that are incorporated in 
Canada, and not -for-profit organizations  located in 
Ontario.  CAD 32.6 million in FY 2015/16; 
CAD 42.8 million in FY 2016/17; 
CAD 53.3 million in FY 2017/18; 
and CAD  41.4 million (estimate) in 
FY 2018/19. Existing funding will 
end on 31 March 2019 . 
Atlantic Innovation 
Fund (AIF)  The objective i s to increase the capacity for, and the 
commercialization of, R&D in the region. Contributions 
to commercial clients are either conditionally or 
unconditionally repayable, and contributions to not -for-
profit organizations are non -repayable.  CAD 37,241,005 in FY 2015/16; 
CAD 30,653,122 in FY 2016/17; 
CAD 36,274,360 in FY 2017/18; 
and CAD  40,000,000 (estimate) in 
FY 2018/19.  
Automotive 
Innovation Fund 
(AIF) Fully repayable contribution. Sharing ratios range up to 
15% of eligible costs. The objectives are to build 
automotive R&D capacity in Canada and secure 
knowledge -based jobs. Eligible recipients are 
corporations incorporated pursuant to the laws of 
Canada carrying on business in Canada, with investment 
proposals in Canada of more than CAD 75  million for 
vehicle or powertrain assembly operations associated 
with innovation and R&D.  CAD 59 million in FY 2015/2016; 
and CAD 144.2 million in FY 
2016/2017. CAD  60,069,858 in 
FY 2014/15 and CAD 92,266,600 
in FY 2015/2016.  
Automotive Supplier 
Innovation Program 
(ASIP) Non-repayable contributions to support technology 
demonstration and prototyping activities of Canadian -
based suppliers developing innovative products and/or 
processes in the automotive sector.  Eligible recipients 
must be for -profit companies, incorporated pursuant to 
the laws of Canada, carrying on business in Canada. 
Priority for funding is given to SMEs (with either fewer 
than 500 employees globally, or global revenues of less 
than CAD 1  billion). Larger firms are eligible, but must 
partner w ith at least one Canadian -based SME. Each 
company is eligible to receive up to CAD 10  million over 
the term of the ASIP. The ASIP funds up to 50% of the 
total eligible costs of a project.  CAD 14.3 million in FY 2015/16; 
and CAD 21.9 million in 
FY 2016/17 . 
Canada Small 
Business Financing 
Program (CSBFP).  Lenders can register a loan made to an eligible small 
business up to a maximum of CAD 1 million, of which a 
maximum of CAD  350,000 can be used to finance the 
purchase or improvement of equipment or the purc hase 
of leasehold improvements. The maximum loan term is 
15 years for real property loans, and 10 years for other 
loan classes. The Government reimburses lenders for 
85% of eligible loan losses. Eligible recipients are small 
business enterprises, with gros s revenue not exceeding 
CAD 10 million.  (Disbursements less revenues 
received)  
CAD 6,581,110 in FY 2015/16;  
CAD 6,306,984 in FY 2016/17; 
and 
CAD 10,924,447 in FY 2017/18.  
Community Futures 
Program (CF).  
Atlantic Provinces  The objective is to support rural  communities in 
diversifying their economies. Non -repayable 
contributions provided to support the network of 41 not -
for-profit Community Business Development 
Corporations (CBDCs), their four associations and the 
Atlantic association enabling CBDCs to provi de small 
businesses with loans of up to CAD  150,000 on 
commercial -lending terms.  CAD 12,604,443 in FY 2015/16; 
CAD 12,627,869 in FY 2016/17; 
CAD 12,641,998 in FY 2017/18; 
and CAD  12,642,000 (estimate) in 
FY 2018/19 . WT/TPR/S/389 • Canada  
 
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  Programme  Form of assistance  Disbursements  
Community Futures 
Program – Northern 
Ontario  The objectives are to assist communities in pursuing 
economic stability, growth, and job creation. Eligible 
applicants include the 24 Community Futures 
Development Corporations (CFDCs) located throughout 
Northe rn Ontario, as well as two regional and one 
provincial associations. Non -repayable contributions are 
provided to CFDCs to cover operating costs for the 
delivery of the Program within their service area. As part 
of this delivery, CFDCs provide small busines s loans of 
up to CAD 150,000 on commercial -lending terms from 
their locally -owned and -controlled investment funds.  CAD 8,360,008 in FY 2014/15; 
CAD 8,360,008 in FY 2015/16; 
CAD 8,360,008 in FY 2016/17; 
and CAD 8,360,008 in FY 2017/18 . 
Community Futures 
Program – Quebec   The objectives include fostering economic stability, 
growth and job creation; supporting local rural 
economies; and helping to build economically 
sustainable communities. The Program supports 57 
CFDCs and 10 Business Dev elopment Centres in Quebec . 
Non-repayable contributions provided to the CFDCs to 
establish capital funds with which to provide small 
businesses with loans of up to CAD 150,000 on 
commercial -lending terms.  CAD 28,400,000 in FY 2014/15; 
CAD 28,600,000 for FY  2015/16; 
CAD 29,607,493 in FY 2016/17; 
and CAD  28,683,673 in FY 
2017/18 .   
Community Futures 
Program - Southern 
Ontario  Eligible applicants include the 37 CFDCs located under 
the Federal Economic Development Agency for Southern 
Ontario 's mandate. Non -repayable contributions are 
provided to CFDCs to cover operating costs for the 
delivery of the Program within their service area. As part 
of this delivery, CFDCs provide small business loans of 
up to CAD 150,000 on commercial -lending terms from 
their locally owned and -controlled investment funds.  CAD 11.3 million in FY 2014/15; 
CAD 11.2 million in FY 2015/16; 
CAD 11.3 million in FY 2016/17; 
CAD 11.3 million in FY 2017/18; 
and CAD 11.3 million (estimate) in 
FY 2018/19 . 
Community Futures 
Program – Western 
Canada Either non -repayable or conditionally -repayable 
contributions to Community Futures organizations (CFs). 
Non-repayable contributions are provided to four 
provincial associations and 90 independent, locally -run, 
not-for-profit CFDCs across Western Canada to support 
the operating costs of their administrative and business 
service activities. The CFDCs provide small businesses 
with loans of up to CAD 150,000 on commercial terms.  CAD 29,790,691 in FY 2015/16; 
CAD 28,228,125 in FY 2016/17; 
CAD 26,365,978 in FY  2017/18; 
and CAD  28,156,322 (estimate) in 
FY 2018/19 . 
Eastern Ontario 
Development 
Program (EODP)  The EODP promotes the growth of new and existing 
businesses in rural communities. Financial assistance is 
provided in the form of non -repayable contributions . 
Eligible applicants include the 15 CFDCs located in 
Eastern Ontario and the Eastern Ontario CFDC Network. 
Non-profit organizations, commercial enterprises, and 
Aboriginal organizations, can apply to the CFDCs for 
funding. Funding to commercial enterprise s is up to CAD 
100,000.  CAD 9.6 million in FY 2015/16; 
CAD 9.6 million in FY 2016/17; 
CAD 9.6 million in FY 2017/18; 
and CAD 9.6 million (estimate) in 
2018/19. Existing funding will end 
on 31 March 2019 . 
Economic 
Development 
Initiative (EDI) - 
Northern On tario The objective is to support business and economic 
development activities that develop new expertise in 
innovation, economic diversification and business growth 
in Northern Ontario 's francophone communities and 
capitalize on economic opportunities mad e possible 
through linguistic duality. Financial assistance is 
provided in the form of non -repayable contributions. 
Eligible recipients include francophone or other 
organizations located in Northern Ontario undertaking 
projects in both official languages, providing 
programmes or services in French.  CAD 364,600 in FY 2014/15; 
CAD 1,335,400 in FY 2015/16;  
CAD 1,171,274 in FY 2016/17; 
and CAD 876,338 in FY 2017/18 . 
Economic 
Development 
Initiative (EDI) - 
Southern Ontario  The EDI supports projects that strengthen innovation, 
entrepreneurship, partnerships, and diversification of 
economic activities. Financial assistance is provided as 
non-repayable contributions. Eligible recipients are 
francophone or bilingual organizations located in 
southern Ontario p roviding programmes or services in 
French to the francophone community.  CAD 1 million in FY 2015/16; 
CAD 1 million in FY 2016/17; 
CAD 1 million in FY 2017/18; and 
CAD 0.8 million in FY 2018/19 .  
Futurpreneur Canada  Provides loans and support to young ent repreneurs. The 
initial recipient is Futurpreneur Canada, which in turn 
provides loans and mentoring resources to aspiring 
young entrepreneurs who are between the ages of 18 
and 39. Assistance is provided in the form of a 
contribution.  CAD 9 million in FY 2014/15; 
CAD 7 million in FY 2015/16; 
CAD 7 million in FY 2016/17; 
CAD 7 million in FY 2017/18; and 
CAD 7 million (estimate) in 
FY 2018/19. Funding is provided 
until 31  March 2019 . WT/TPR/S/389 • Canada  
 
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  Programme  Form of assistance  Disbursements  
The Innovative 
Communities Fund 
(ICF) The objective is to support strategi c initiatives that 
respond to the economic development needs of Atlantic 
Canada. Assistance is in the form of non -repayable 
contributions. The ICF provides assistance to non -
commercial/not -for-profit organizations to support 
strategic economic development initiatives.  CAD 40,951,127 in FY 2015/16; 
CAD 47,669,438 in FY 2016/17; 
CAD 41,687,697 in FY 2017/18; 
and CAD  37,157,762 (estimate) in 
FY 2018/19 . 
National Research 
Council Industrial 
Research Assistance 
Program (NRC -IRAP)  The objectives are to provide support to SMEs in the 
development of technologies, up to their 
commercialization. Assistance is through cost -shared 
non-repayable contributions. Contributions to firms do 
not exceed 75% of the total eligible costs of the project. 
Eligible recipients are f irms with fewer than 500 
employees operating in Canada. The NRC -IRAP Youth 
Employment Program provides non -repayable funding 
for SMEs to hire, for up to one -year, post -secondary 
graduates in science, engineering, technology, business 
and the liberal arts.  CAD 209,838,256 in FY 2014/15; 
and CAD  235,148,939 in FY 
2015/16 . 
Northern Aboriginal 
Economic 
Opportunities 
Program (NAEOP)  The NAEOP supports greater participation by northern 
Aboriginal communities and businesses in the Canadian 
economy and  comprises two programme streams: 
Community Readiness and Operations Planning (CROP) 
and Entrepreneurship and Business Development (EBD). 
Assistance under CROP is provided to First Nations and 
Inuit communities and organizations, according to 
specific fund ing agreements between the Government 
and the recipient. Assistance under EBD is provided to 
Aboriginal entrepreneurs, businesses and organizations 
in the pursuit of economic opportunities for the benefit 
of Aboriginal people and  includes support for activ ities 
that facilitate the establishment or expansion of 
Aboriginal businesses. The maximum amount payable to 
an eligible recipient for a project may not exceed 100% 
of the eligible project costs or CAD 3 million per annum.  CAD 10.8 million in FY 2015/16; 
CAD 10.8 million in FY 2016/17; 
and CAD 10.8 million in 2017/18 . 
Northern Ontario 
Development 
Program (NODP)  The NODP invests in projects that support community 
economic development, business growth and 
competitiveness, and innovation, to encourage economi c 
growth, diversification, job creation and self -reliant 
communities in Northern Ontario. Financial assistance 
includes repayable and non -repayable contributions. 
Assistance is provided to municipalities, SMEs, not -for-
profit organizations, and other commu nity groups.  CAD 35,500,400 in FY 2014/15; 
CAD 35,279,600 in FY 2015/16; 
CAD 31,540,000 in FY 2016/17; 
and CAD  30,640,000 in FY 
2017/18 . 
Quebec Economic 
Development 
Program (QEDP)  The QEDP helps promote the long -term economic 
development of the regions of  Quebec. Financial 
assistance takes the form of contributions (repayable or 
not) and grants. Eligible costs include all costs directly 
related to the project. Assistance is provided to SMEs, 
SME groups and associations, non -profit organizations, 
and instit utions dedicated to the promotion and 
dissemination of knowledge.  CAD 183,700,000 in FY 2014/15; 
CAD 189,900,000 in FY 2015/16; 
CAD 244,818,183 in FY 2016/17; 
and CAD  238,142,111 in FY 
2017/18 . 
Southern Ontario 
Prosperity Initiatives 
(SOPI) of the 
Souther n Ontario 
Prosperity Program 
(SOPP)  The SOPP promotes economic diversification, job 
creation and self -reliant communities in southern 
Ontario. Within it, the SOPI provides financial assistance 
through repayable contributions to for -profit 
organizations and  non-repayable contributions to not -
for-profit organizations. This Program is directed at not -
for-profit organizations, new businesses, and SMEs.  CAD 105.5 million in FY 2015/16; 
CAD 100.8 million in FY 2016/17; 
CAD 97.8 million in FY 2017/18; 
and CAD  95.8 million (estimate) in 
2018/19 .   
Strategic Aerospace 
and Defence 
Initiative (SADI)  The objective of SADI is to contribute strategically to 
R&D in the A&D industries. Assistance is provided in the 
form of repayable contributions that do not exceed 40% 
of eligible costs, except under exceptional circumstances 
and with Ministerial approval. No pre -defined maximum 
amount is established. Eligible recipients for funding are 
corporations incorporated under Canadian law, that are 
prepared to conduct strategic R&D  activities in A&D 
industries. At least 1% of total eligible project costs 
must be allocated to post -secondary education 
institutions in Canada.  CAD 2.7 million FY 2015/16; 
CAD 270 million FY 2016/17; 
CAD 3.4 million FY 2017/18; and 
CAD 7.6 million April 2 018-
31 December 2018 . WT/TPR/S/389 • Canada  
 
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  Programme  Form of assistance  Disbursements  
Strategic Innovation 
Fund (SIF)  The objective of the SIF is to support innovative projects 
that produce high economic, innovation and public 
benefits for Canadians. It is open to firms of all sizes 
across all of Canada 's industrial a nd technology sectors. 
It provides repayable and non -repayable contributions to 
support four distinct Streams of activities.  For Streams 
1-3, applicants must be a for -profit corporation,  
incorporated pursuant to the laws of Canada and 
proposing to carry on  business in Canada. For Stream 4, 
lead applicants must either be a network or a 
consortium. The 2018 federal budget announced that 
the SIF will now focus its support on projects requesting 
at least CAD 10  million in contributions.  Authorized assistance fo r 
28 announced projects (not 
including 3 legacy projects 
announced after amalgamation 
under the SIF): CAD  192 million 
FY 2017/18 (July 2017 -
31 March  2018); and 
CAD 543 million April 2018 -
31 December 2018 . 
Strategic 
Investments in 
Northern Economic 
Develop ment 
(SINED) Program  The objective of the SINED is to promote economic 
development for the North, focusing on four priorities: 
innovation, economic growth and diversification, 
capacity development, and economic infrastructure. 
Assistance is provided to bus iness associations, 
economic development organizations, territorial and 
municipal governments, and SMEs, on a project -by-
project basis. Contributions to a project may not exceed 
75% of total project costs, except for government or 
not-for-profit recipients , or for government assistance to 
a project of CAD 100,000 or less, where the limit is 
100% and may not exceed CAD 3 million per annum.  CAD 18.2 million in 2015/16;  
CAD 18.2 million in 2016/17;  
CAD 18.2 million in 2017/18 . 
Technology 
Demonstration 
Program  (TDP)  The objective is to foster the growth of a competitive, 
knowledge -based economy through the implementation 
of large -scale technology demonstration projects. 
Assistance is provided as a non -repayable contribution 
that may not exceed 50% of total elig ible costs. 
Treasury Board (TB) approval is required for 
contributions over CAD 10 million. Eligible recipients of 
the TDP are corporations incorporated pursuant to the 
laws of Canada that carry on business in Canada and 
propose to conduct industrial resea rch and technology 
demonstration activities with A&D applications, as well 
as Canadian universities or colleges and Canadian 
research institutes. Projects must include at least one 
small or medium -sized Canadian corporation and one 
Academic Institution.  CAD 54 million FY 2015/16; 
CAD 54 million FY 2016/17; and 
CAD 49.5 million April 2018 -
31 Dec 2018 . 
The Western 
Diversification (WD) 
Program  Financial assistance is provided through non -repayable 
contributions to not -for-profit organizations, and 
repayable contributions to for -profit organizations, to 
enhance economic activity in Western Canada. The WD 
helps western -based SMEs bring innovative technology -
based products, processes and services to the market.  CAD 82,739,434 in FY 2015/16; 
CAD 84,983,794 in FY 2016/17; 
CAD 101,189,959 in FY 2017/18; 
and CAD  77,716,678 (estimate) in 
FY 2018/19. Established in 
December 1987, and ongoing . 
Women 's Enterprise 
Initiative (WEI)  The purpose is to encourage the establishment and 
growth of women -owned and -controlled bus inesses, 
and to promote economic equality between men and 
women in Western Canada. Financial assistance is 
provided in either non -repayable or conditionally -
repayable contributions to Women 's Enterprise Centres 
(WECs), which are non -profit organizations. N on-
repayable contributions are provided to 4 provincial 
WECs in British Columbia, Alberta, Saskatchewan and 
Manitoba, to support the operating costs of their 
administrative and business service activities. In 
addition, the WECs provide women -owned small 
businesses with loans of up to CAD 150,000 on 
commercial terms.  CAD 3,802,500 in FY 2015/16; 
CAD 4,105,575 in FY 2016/17; 
CAD 3,573,917 in FY 2017/18; 
and CAD 3,900,000 (estimate) in 
FY 2018/19 . 
Fisheries    
Aboriginal Fisheries 
Strategy Allocation 
Transfer  Program 
(ATP)  Facilitates the voluntary retirement of commercial 
licences and the issuance of licences to eligible 
Aboriginal groups.  CAD 4,180,900 in FY 2014/15; 
CAD 4,409,416 in FY 2015/16 ; 
CAD 2,911,033 in FY 2016/17 and 
CAD 2,582,330 in FY 2017/2018.  
Atlantic Integrated 
Commercial Fisheries 
Initiative (AICFI)  The objective of the AICFI is to assist Mi 'kmaq and 
Maliseet First Nations (MMFNs) in Nova Scotia, New 
Brunswick, Prince Edward Island and the Gaspé Region 
of Quebec , in the development of sound fisheries 
management and governance practices for their 
commercial fishing enterprises. Assistance is provided in 
the form of training and other skills development 
activities.  CAD 10,318,670 in FY 2014/15; 
and CAD 7,856,777 in FY 
2015/16 ; CAD 8,580,553 in  FY 
2016/17 and CAD 10,441,648 in 
FY 2017/18.  WT/TPR/S/389 • Canada  
 
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  Programme  Form of assistance  Disbursements  
Pacific Integrated 
Commercial Fisheries 
Initiative (PICFI)  
 The objective is to achieve a fair, sustainable, integrated 
commercial fishery on Canada 's west coast. Assistance 
is provided to Aboriginal fishing e nterprises in the form 
of commercial fishing access, acquired through voluntary 
retirement, vessels and gear, and providing training and 
other skills development activities.  CAD 22,045,931 in FY 2014/15; 
and CAD 22,049,852 in FY 
2015/16 ; CAD 15,408,409 in  
FY 2016/17 and CAD 16,410,223 
in FY 2017/18.  
 
Atlantic Fisheries 
Fund To support innovation to encourage new products and 
technologies; infrastructure to encourage capital 
investments in new products, processes or technologies; 
and science partnerships between industry, academia, 
and other research institutions.  Nil in FY 2016/17 and CAD 
202,493 in FY 2017/18 . 
The programme began in 
August  2017 and ends in 
March  2024.  
Canadian Fish and 
Seafood 
Opportunities Fund  To advance a national approach to key cross-cutting 
market access issues and branding opportunities to 
maximise the value of the fish and seafood sector.  The programme began in 
December 2018, and no 
disbursement has been made.  
Fisheries and 
Aquaculture Clean 
Technology Adoption 
Program  To enc ourage the use of clean technologies to improve 
environmental performance and increase the global 
competitiveness of Canadian fish and seafood products.  Nil in FY 2016/17 and CAD 
878,043 in FY 2017/18.  
The programme began in 2017 
and ends in March 2021.  
Natural resources    
ecoENERGY for 
Renewable Power 
Program  
 The objective is to encourage the deployment of low -
impact renewable power by providing a financial 
incentive for electricity generated from qualifying 
projects. The incentive is provided in the fo rm of a 1 
cent per kWh on the production of electricity from 
qualifying renewable energy projects, such as wind, 
solar, biomass, and low -impact hydroelectricity. Eligible 
recipients are typically independent power producers or 
utilities; however, a few pro jects use the electricity 
generated for their own consumption.  The total amount budgeted for 
FY 2019/20 is CAD  76.61 million. 
Qualifying projects are eligible to 
receive the incentive for 10 years 
from the date of project 
commissioning, until 
31 March  2021, when the Program 
will end.  
Forest Innovation 
Program (FIP)  
 The FIP was established to support research, 
development and technology transfer activities in the 
forest sector, through a combination of support for 
external and internal R&D, and engagem ent with 
industry, academia, and other stakeholders.  The budget was CAD 31 million in 
FY 2014/15 and CAD  30 million in 
FY 2015/16. The Program was 
extended for another three years 
(CAD 23 million in FY 2017/18, 
CAD 20 million in FY 2018/19, and 
CAD 20 million in 2019/20) . 
Investments in 
Forest Industry 
Transformation 
Program (IFIT)  The IFIT Program provides targeted investments for 
projects that implement new technologies and 
innovative processes leading to non -traditional high -
value forest products, i ncluding bioenergy, biomaterials, 
bio-chemicals and next -generation building products. It 
provides funding through non -repayable contributions. 
Eligible recipients are companies that either produce 
forest products in an existing forest product 
manufacturin g facility located in Canada or that are, or 
will be, new entrants in the forest sector for the 
purposes of the proposed project. The maximum amount 
that can be paid to any project over the course of the 
Program is CAD 20 million.  The budget was CAD  7.7 mi llion in 
FY 2014/15; and CAD 22.8 million 
in FY 2015/16 . 
The IFIT was extended in 2014 for 
four more years, to 31  March 
2018, with an additional 
CAD 90.4 million funding. In 2017, 
an additional CAD 55 million was 
allocated over a 3 -year period 
(CAD 10 million in 2017/18, 
CAD 12 million in 2018/2019, and 
CAD 33 million in 2019/2020) . 
Expanding Market 
Opportunities 
Program (EMO)  Support to the sector to enhance market opportunities  in 
the forestry sector.  The budget is CAD 45 million for 
3 years from 2017 . 
Indigenous Forestry 
Initiative (IFI)  Support to the sector to promote Indigenous forestry.  The budget is CAD 10 million for 
3 years from 2017 . 
Green Construction 
through Wood 
(GCWood)  Support to the forestry sector.  The budget is CAD 39.8 million for 
4 years from 2018 . 
Smart Grid Program  The CAD 100 -million Program provides support for 
utility -led investments in the deployment of smart grid 
integrated systems or the demonstration of next -
generation smart grid technologies. Reimbursement of 
eligible expenses for up to 25% of total costs for 
deployment programmes or 50% of total costs for 
demonstration projects.  The budget for FY 2019/20 is 
CAD 25 million . 
Clean Energy in 
Rural and Remote 
Communities 
(CERRC) Program  The CAD 220 -million Program provide s support for the 
demonstration and deployment of renewable energy 
projects, energy efficient solutions, and increased skills 
and capacity in rural and remote communities.  The budget for FY 2019/20 is 
CAD 26 million . WT/TPR/S/389 • Canada  
 
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  Programme  Form of assistance  Disbursements  
Emerging Renewable 
Power (ERP) 
Program  The CAD 200 -million Program provides support for the 
deployment of renewable energy technologies that are 
well established abroad but have yet to be deployed in 
Canada, or that have been successfully demonstrated in 
Canada but not yet commercially deploye d. The ERP 
provides reimbursement of expenses incurred in 
deploying an eligible renewable energy programme up 
to a maximum according to technology type.  The budget for FY 2019/20 is 
CAD 50 million . 
Lower Churchill Loan 
Guarantee  Provides a loan guarantee for the construction of Lower 
Churchill projects, which are being built to meet 
electricity demand in Newfoundland and Labrador, and 
Nova Scotia. Assistance was provided in the form of loan 
guarantees. The total amount of project debt 
guaranteed is CAD 9.2  billion. No further loans for these 
projects had been guaranteed as at January 2019.  The total amount of project debt 
guaranteed is CAD  9.2 billion. The 
Canada -guaranteed bonds for 
these projects have maturity dates 
varying from 1  December 2020 to 
1 June  2057. 
Source:  WTO document G/SCM/N/315/CAN, 12 July 2017; and information provided by the authorities.   WT/TPR/S/389 • Canada  
 
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  Table A3. 3 Canadian participation in conformity assessment agreements, 2018  
Signatories  Instrument type  Coverage  
Canada and other APEC members  MRA Product certification procedures and 
results for terminal equipment, radio 
equipment, electromagnetic compatibility 
(EMC) and electrical safety.  
Canada and EEA EFTA members (Iceland, 
Liechtenstein, and Norway)  MRAa Telecoms, EMC , recreational craft, medical 
devices (not implemented), electrical 
safety (not implemented), and GMP -
Pharma (good manufacturing practices for 
pharmaceuticals).  
Canada and the European Union  CETA Telecoms, EMC, recreational craft, medical 
devices (not imp lemented), electrical 
safety (not implemented), and GMP -
Pharma.  
Canada and Switzerland  MRAa Telecoms, EMC, medical devices (not 
implemented), electrical safety (not 
implemented), and GMP -Pharma.  
Canada and other members of the 
Inter-American Telecommunication 
Commission (CITEL)  MRA Product certification procedures and 
results for terminal equipment, radio 
equipment, EMC and electrical safety.  
Canada -Mexico  MRA Terminal equipment, radio equipment and 
EMC 
Canada -Israel  MRA Terminal equipment, radio equipment and 
EMC 
SCC and other International Accreditation 
Forum (IAF) bodies  MRA  Recognition of quality management 
systems, environmental management 
systems, and product certification body 
accreditations.  
SCC and other ILAC bodies  MRA  Recognition of laboratory accreditations.  
SCC and other Asia Pacific Accreditation 
Cooperation (APAC) bodies  b MRA – 2019  Facilitates the acceptance of conformity 
assessment results across the region and 
with other regions around the world. 
Conformity a ssessment results that are 
produced by conformity assessment bodies 
(CABs) that have been accredited by one 
APAC MRA signatory are accepted by all 
the other APAC MRA signatories.  
SCC and other Inter -American Accreditation 
Co-operation (IAAC) bodies  Multilateral 
Recognition 
Agreement (MLA) – 
2002/08  Mutual recognition of quality management 
systems, product certification, testing 
laboratories, environmental management 
systems, calibration laboratories, and 
medical laboratories.  
SCC and the European co-operation for 
Accreditation (EA)  Bilateral 
Cooperation 
Arrangement 
(BCA) – 2016  Implementation of the CETA 's Protocol on 
the mutual acceptance of the results of 
conformity assessment.  
National Research Council (Canada), Centro 
Nacional de Metrología ( Mexico), and National 
Institute of Standards and Technology (all 
three as part of the North American Metrology 
Co-operation – NORAMET)  MRA – 1999 Technical cooperation on the 
methodologies and application of 
metrological activities.  
a Legally binding.  
b established on 1 January 2019 by the amalgamation of two former regional accreditation cooperation 
entities: the Asia Pacific Laboratory Accreditation Cooperation (APLAC) and the Pacific Accreditation 
Cooperation (PAC).  
Source:  Information provided by the authorities.  
  WT/TPR/S/389 • Canada  
 
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  Table A3. 4 Federal Crown corporations, 2018  
Crown corporation  
and sector  Mandate  Assets  
(Q2, 2018)  
CAD million  
Agriculture  
Canadian Dairy 
Commission  To provide efficient producers of milk and cream with the opportunity of 
obtaining a fair return for their labour and investment, and to provide 
consumers of dairy products with a continuous and adequate supply of 
dairy products of high quality.  129.6  
Farm Credit Canada  To enhance rural Canada by providing speci alized and personalized business 
and financial services and products to farming operations, including family 
farms, and businesses in rural Canada, including small and medium -sized 
businesses, that are related to farming. The primary focus of the activitie s 
of the corporation are on farming operations, including family farms.  34,611.3  
Citizenship, multiculturism   
Canadian Race Relations 
Foundation  To facilitate throughout Canada the development, sharing, and application of 
knowledge and expertise to contribute to the elimination of racism and all 
other forms of racial discrimination in Canadian society.  29.7 
Employment and social development  
Canada Mortgage and 
Housing Corporation 
(CMHC)  As set out in the National Housing Act (NHA), the CMHC 's mandate is to 
promote the construction of new houses, the repair and modernization of 
existing houses, and the improvement of housing and living conditi ons.  
In relation to financing for housing, the NHA 's purpose is to promote 
housing affordability and choice; to facilitate access to, and competition and 
efficiency in, the provision of housing finance; to protect the availability of 
adequate funding for housing; and to contribute to the well -being of the 
housing sector.  
Additional objects in the NHA relate to its housing finance activities. These 
are: a) to promote the efficient functioning and competitiveness of the 
housing finance market; b) to promote  and contribute to the stability of the 
financial system, including the housing market; and c) to have due regard 
to exposure to loss.  264,713.0 
Finance   
Bank of Canada  The Bank of Canada is the nation 's central bank. Its mandate, as defined in 
the Bank of Canada Act, is "to promote the economic and financial welfare 
of Canada ". Its core responsibilities include monetary policy, to preserve 
the value of money by keeping inflation low, stable and predicta ble; 
promote safe, sound and efficient financial systems, within Canada and 
internationally; provide funds -management services for the Government, 
where it acts as fiscal agent for the Government 's public debt and foreign 
exchange reserves; and ensure a co nsistent supply of quality bank notes 
that are readily accepted and secure against counterfeiting. The Bank has 
the sole right to issue bank notes.  109,931.8 
Canada Deposit 
Insurance Corporation  To provide insurance against the loss of part or all of deposits, to promote 
and otherwise contribute to the stability of the financial system in Canada, 
and to pursue the foregoing for the benefit of persons having deposits with 
member institutions and in such a manner as will minimize the exposure of 
the Corp oration to loss.  4,144.7  
Canada Development 
Investment Corporation  To assist in the creation or development of businesses, resources, 
properties and industries of Canada; to expand, widen and develop 
opportunities for Canadians to participate in the econo mic development of 
Canada through the application of their skills and capital in any activities 
carried on by the Corporation; to invest in the shares or securities of any 
corporation owning property or carrying on business related to the 
economic interest s of Canada; to invest in ventures or enterprises, 
including the acquisition of property, likely to benefit Canada; and to carry 
out all activities in the best interests of Canada, operating in a commercial 
manner.  647.0 
Canada Pension Plan 
Investment Board  To assist the Canada Pension Plan in meeting its obligations to contributors 
and beneficiaries under the Canada Pension Plan; to manage any amounts 
transferred to it under the Plan, and its right, title or interest in any 
designated securities, in th e best interests of the contributors and 
beneficiaries under that Act; and to invest its assets with a view to 
achieving a maximum rate of return, without undue risk of loss, having 
regard to the factors that may affect the funding of the Plan and the abil ity 
of the Plan to meet its financial obligations on any given business day.  394,166.0 
Royal Canadian Mint  To mint coins in anticipation of profit and to carry out other related 
activities.  415.7 
Fisheries  
Freshwater Fish 
Marketing Corporation  To purchase all fish lawfully fished and offered for sale, to create an orderly 
market, to promote international markets, to increase the fish trade, and to 
increase returns to fishers.  61.5 WT/TPR/S/389 • Canada  
 
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  Crown corporation  
and sector  Mandate  Assets  
(Q2, 2018)  
CAD million  
Foreign affairs, trade, development  
Canadian Commercial 
Corporation  To assist in the development of trade between Canada and other nations, 
and to assist persons in Canada to obtain goods and commodities from 
outside Canada and to dispose of goods and commodities that are available 
for export from Canada.  6.761 .6 
Export Development 
Canada (EDC)  To support and develop, directly or indirectly, Canada 's export trade and 
Canadian capacity to engage in that trade, as well as respond to 
international business opportunities.  60,831.0  
International 
Development Research 
Centre (IDRC)  To help developing countries find solutions to problems. The IDRC 
encourages, supports, and conducts research in the world 's developing 
regions, and on developing world and global challenges more broadly. In 
doing so, it seeks to app ly new knowledge towards the economic and social 
improvement of developing regions. The IDRC 's programmes promote 
innovation to increase food security, stimulate economic growth, secure the 
future of children and youth, notably by improving health, ensure stability 
and security, and advance democracy.  89.5 
Innovation, science and economic development  
Business Development 
Bank of Canada  The BDC is mandated to support Canadian entrepreneurship by providing 
financing, investment capital and advisory services  to SMEs operating in all 
industries and located across Canada. It is financially self -sustaining, 
meaning that it does not receive appropriations from Government, and 
provides financing on commercial terms.  29,410.7  
(as at 
30/09/2018)  
Canadian Tourism 
Commission (Destination 
Canada)  To sustain a vibrant and profitable tourism industry in Canada; to market it 
as a desirable tourist destination; to support a cooperative relationship 
between the private sector and the governments of Canada, the provinces, 
and the territories with respect to Canadian tourism; and to provide 
information about Canadian tourism to the private sector and to the federal, 
provincial, and territorial governments.  54.5 
Standards Council of 
Canada  To oversee Canada 's standardization  system by promoting efficient and 
effective voluntary standardization, when standardization is not expressly 
provided for by law, in order to advance the national economy, support 
sustainable development, benefit the health, safety, and welfare of workers  
and the public, assist and protect consumers, facilitate domestic and 
international trade, and further international cooperation in relation to 
standardization.  7.7 
Infrastructure  
The Jacques -Carter and 
Champlain Bridges Inc.  To ensure safe passage for users through the management, maintenance, 
and rehabilitation of infrastructure by optimizing traffic flow and respecting 
the environment.  662.9  
Canada Infrastructure 
Bank To provide provincial, territorial, municipal and Indigenous government 
partners access to innovative financing for revenue -generating 
infrastructure projects.  n.a. 
The Windsor -Detroit 
Bridge Authority (WDBA)  To enable the construction and operation of a new international crossing 
between Windsor, Ontario and Detroit, Michigan. The pr oject includes four 
components: a six -lane high -level bridge; a Canadian port of entry (POE) 
with border inspection and toll facilities; a U.S. POE with border inspection; 
and an interchange with the Interstate 75.  604.9  
Natural resources   
Atomic Energy  of Canada 
Limited (AECL)  Three key aspects of AECL 's Value Proposition have a national impact:  
•  as an advisor to, and agent of, the Government or public policy 
purposes;  
• as an enabler of business innovation and technology transfer; and  
•  as a generat or of highly qualified people.  1,193.2  
Public Services and Procurement Canada  
Canada Lands Company 
Limited  Through its subsidiaries, to ensure the commercially -oriented, orderly 
disposition of selected surplus federal real properties, with optimal value to 
the taxpayer, and the holding of certain properties.  1,190.8  
Canada Post Corporation  To establish and operate a postal service for the collection, transmission 
and delivery of messages, information, funds and goods, both within 
Canada and between Canad a and abroad, and to conduct its operations on 
a self -sustaining financial basis while providing a standard of service that 
will meet the needs of the people and that is similar with respect to 
communities of the same size.  8,218.0  
Defence Construction 
(1951) Limited  To deliver and maintain infrastructure and environmental projects and 
services and provide full lifecycle support for infrastructure and 
environmental assets, required for the defence of Canada.  50.5 WT/TPR/S/389 • Canada  
 
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  Crown corporation  
and sector  Mandate  Assets  
(Q2, 2018)  
CAD million  
Transport  
Pilotage Authorities  
- Atlantic  
- Great Lakes  
- Laurentian  
- Pacific  To establish, operate, maintain, and administer, in the interest of safety, an 
efficient pilotage service within the designated waters set out in respect of 
each Authority.  18.6 
(Atlantic)  
4.8 (Great 
Lakes)  
40.8 
(Laurentian)  
24.8 (Pacific)  
Canadian Air Transport 
Security Authority 
(CATSA)  To deliver effective and efficient screening of persons who access aircraft or 
restricted areas through screening points, the property in their possession or 
control, and the belongings or baggage that they give to an air carrier for 
transport.  566.5  
Federal Bridge Corporation 
Limited  To provide users with safe and effective infrastructures through its two 
wholly -owned subsidiaries, the Seaways International Bridge Corporation , 
Ltd., and St. Mary 's River Bridge Company, as well as the Canadian facilities 
of the Thousand Islands International Bridge.  447.1  
Marine Atlantic Inc.  To provide a safe, environmentally responsible, and quality ferry service 
between the Island of Newfoundland and the Province of Nova Scotia, in a 
reliable, courteous, and cost -effective manner.  572.5  
Ridley Terminals Inc.  To provide continuous, high -quality, and high -performance rail car 
unloading, product storage, and loading services as a marine terminal, and 
to operate in a commercial manner.  314.4  
VIA Rail Canada Inc  To offer a national passenger rail transportation service that is safe, secure, 
efficient, reliable, and environmentally sustainable, and that meets the 
needs of travellers.  1,346.3  
Treasury Board  
Public Sector Pension 
Investment Board  To manage the amounts transferred under the Canadian Forces 
Superannuation Act, the Public Service Superannuation Act, and the Royal 
Canadian Mounted Police Superannuation Act (the "Acts") in the best 
interests of the contributors and beneficiaries under those Acts, and to 
invest the assets with a view to achieving a maximum rate of return, without 
undue risk of loss, having regard to the funding, policies and requirements 
of the pension plans established under the Acts and the ability of those 
pension plans to meet their financial obligations.  n.a. 
Canadian Heritage  
Canada Council for the 
Arts To foster and promote the study, enjoyment, and production of works in 
the arts.  453.6  
Canadian Broadcasting 
Corporation  To inform, enlighten, and entertain; to contribute to the development of a 
shared national consciousness and identity; to reflect the regional and 
cultural diversity of Canada; and to contribute to the development of 
Canadian talen t and culture.  1,967.5  
Canadian Museum for 
Human Rights  To explore the subject of human rights, with special but not exclusive 
reference to Canada, in order to enhance public understanding of human 
rights, to promote respect for others, and to encourage reflection and 
dialogue.  323.1  
Canadian Museum of 
History  To enhance Canadians ' knowledge, understanding and appreciation of 
events, experiences, people and objects that reflect, and have shaped, 
Canada 's history and identity, and also to enhance their aw areness of 
world history and cultures.  321.6  
Canadian Museum of 
Immigration at Pier 21   To explore the theme of immigration to Canada, in order to enhance public 
understanding of the experiences of immigrants as they arrived in Canada, 
of the vital role immigration has played in the building of Canada, and of 
the contributions of immigrants to Canada 's culture, economy and way of 
life. 29.5 
Canadian Museum of 
Nature  To increase, throughout Canada and internationally, interest in, knowledge 
of, and apprec iation and respect for the natural world, by establishing, 
maintaining, and developing for research and posterity a collection of 
natural history objects, with special but not exclusive reference to Canada, 
and by demonstrating the natural world, the knowl edge derived from it, 
and the understanding it represents.  201.3  
National Arts Centre 
Corporation  To operate and maintain the Centre, to develop the performing arts in the 
National Capital Region, and to assist the Canada Council for the Arts in 
the development of the performing arts elsewhere in Canada.  285.6  
National Gallery of Canada  To develop, maintain, and make known, throughout Canada and 
internationally, a collection of works of art, both historic and 
contemporary, with special but not exclusive reference to Canada, and to 
further knowledge, understanding, and enjoyment of art in general among 
all Canadians.  97.1 WT/TPR/S/389 • Canada  
 
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  Crown corporation  
and sector  Mandate  Assets  
(Q2, 2018)  
CAD million  
Canada Science and 
Technology Museums 
Corporation  To foster scientific and technological literacy throughout Canada by 
establ ishing, maintaining, and developing a collection of scientific and 
technological objects, with special but not exclusive reference to Canada, 
and by demonstrating the products and processes of science and 
technology, as well as their economic, social, and cultural relationships 
with society.  261.1  
Telefilm Canada  To foster and promote the development of the audio -visual industry in 
Canada.  82.7 
n.a.  Not applicable.  
Source:  Treasury Board. Viewed at: https://www.canada.ca/en/treasur y-board -secretariat/services/reporting -
government -spending/inventory -government -organizations/consolidated -financial -information -crown -
corporations -second -quarter -2017-2018.html . 
  WT/TPR/S/389 • Canada  
 
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  Table A3. 5 Exceptions to the scope of the CFTA 's Procurement Chapter  
Schedule of Canada  
Procurement exceptions  
For Canada, the following is not covered by the Chapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
Canadian Security Intelligence Service;  Communications Security Establishment; Financial Transactions and Reports 
Analysis Centre of Canada;  Bank of Canada; Canada Pension Plan Investment Board and its subsidiaries;  
Public Sector Pension Investment Board and its subsidiaries; Senate; House of Commons; Library of Parliament;  
Office of the Senate Ethics Officer; Office of the Conflict of Interest and Ethics Commissioner; and Parliamentary 
Protective Service.   
B. Exceptions and notes  
1. The Chapter does not apply to procurement:  
a) by a shared -governance corporation, joint enterprise, mixed enterprise, international organization, and any entity 
that is not wholly -owned by the Government. For greater certainty, a shared -governance corporation includes any 
entity where appointments to the b oard of directors are not made exclusively by the Government;  
b) by commissions under the Inquiries Act, RSC 1985, c I -11, as amended;  
c) by a corporation incorporated or acquired by or on behalf of the Royal Canadian Mounted Police for the purpose of 
performi ng its functions under the laws of Canada, and any corporations that are wholly -owned by such a 
corporation;  
d) by a corporation incorporated or acquired by or on behalf of any service established by an Act of Parliament to 
collect information and intelligen ce respecting the security of Canada, and any corporations that are wholly owned 
by such a corporation;  
e) in respect of the intervention activities of the Canada Deposit Insurance Corporation or its subsidiaries, or 
procurement by any subsidiary created in respect of such intervention activities;  
f) by the Canada Lands Company Limited or its subsidiaries, for the development of real property for commercial 
sale or resale;  
g) by any successor entity to an entity whose procurement is not covered under the Chapter;  
h) in respect of shipbuilding and repair, including related architectural and engineering services, by any Crown 
corporation for which the Minister of Transport is specified, or was specified on the effective date, as the 
appropriate Minister in respect of that corporation;  
i) in relation to an international crossing between Canada and another country;  
j) of transportation services, leasing, and rental of transportation equipment, or transportation services incidental to 
a procurement contract by Marine Atlantic  Inc., Canada Post Corporation, or pilotage authorities established 
pursuant to the Pilotage Act, RSC 1985, c P -14, as amended;  
k) by the Canadian Air Transport Security Authority for security screening, including services and goods that are 
related, or inci dental, to security screening;  
l) of financial management consulting services of a confidential nature;  
m) related to space projects for the Canadian Space Agency;  
n) related to services provided by veterinarians;  
o) related to advisory and other services provided  to Export Development Canada or its affiliates, in connection with 
the provision of services to their customers;  
p) of services related to cadastral surveys on Canada lands, pursuant to the Canada Lands Surveys Act, RSC 1985, 
c L-6, as amended;  
q) of public relations services; and  
r) conducted for the specific purpose of providing international assistance, including development aid.  
2. The Chapter does not apply to:  
a) industrial and technological benefits applied under the Industrial and Technological Benefits Policy, or any 
successor policy having similar objectives, to a procurement that exceeds CAD 20 million, provided that the 
evaluation of regional benefits in the tendering process is carried out in a non -discriminatory manner with respect 
to regions;  
b) industrial and regional benefits applied under the Industrial and Regional Benefits Policy, to a procurement that 
exceeds CAD 2 million, provided that the evaluation  of regional benefits in the tendering process is carried out in 
a non -discriminatory manner with respect to regions.  
3. The Government reserves the right to exclude any newly -created entity from coverage under the Chapter in instances in 
which the disclosure of that entity 's procurement would put the safety of Canadians at risk.  
Schedule of Ontario  
For Ontario, the following is not covered by the Chapter:  
Procurement exceptions  
A. Excluded entities  
The following entities are not covered by the Chapter:  
1. Offices of the Legislative Assembly  
B. Exceptions and notes  
1. Articles 507.1 and 509.1 do not apply to procurement that targets poverty reduction for disadvantaged natural 
persons, if the value of the procurement is below CAD 200,000.  
2. The Chapter does not cover procurement relating to a jointly -owned international crossing between Ontario and 
another country, or a sub -central jurisdiction of that country, including the design, construction, operation, or 
maintenance of the crossing, as well  as any related infrastructure. This exception does not apply to procurement 
conducted solely by Ontario.  
Schedule of Quebec  
Procurement exceptions  
For Qu ebec, the following is not covered by the Chapter:  
A. Excluded entities  
1. National Assembly of Q uebec and its Officers  
B. Exceptions and notes  
1. The Chapter does not cover procurement:  
a) of the following goods by Hydro -Québec (identified in accordance with the HS Codes: HS 7308.20; HS 8406; HS 
8410; HS 8426; HS 8504; HS 8535; HS 8536; HS 8537; HS 8544; HS 8705.10; HS 8705.20; HS 8705.90; HS 
8707; HS 8708; HS 8716.39; and HS 8716.40)  WT/TPR/S/389 • Canada  
 
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  Schedule of Canada  
b) of the following services by Hydro -Québec (identified in accordance with the United Nations Provisional Central 
Products Classification (CPC)): 84 – Computer and relat ed services; 86724 – Engineering design services for the 
construction of civil engineering works; and 86729 – Other engineering services.  
c) of goods purchased for representational or promotional purposes, or for services or construction services 
purchased f or representational or promotional purposes outside the province;  
d) of services contracts, excluding construction services contracts, which grant to a supplier the right to provide and 
exploit a service to the public as complete or partial consideration for  the delivery of a service under a 
procurement contract;  
e) of the following services: (i) transportation services provided by local -owned trucks for hauling aggregate on 
highway construction projects; (ii) integrated engineering services for transportation infrastructure turnkey 
projects; or (iii) advertising and public relations services.  
2. Quebec  may require that final assembly takes place in Canada when purchasing mass transit vehicles.  
3. Quebec  reserves the right to adopt or maintain any measure favouring local outsourcing in the case of construction 
services contracts awarded by Hydro -Québec. Such a measure would not be a condition for participation or qualification of 
suppliers.  
Schedule of Nova Scotia  
Procurement exceptions  
For the government of Nova Scotia, the following is not covered by the Chapter:  
A. Excluded entities  
None 
B. Exceptions and notes  
For the government of Nova Scotia, the Chapter does not cover the following procureme nt: 
1. Goods purchased for representational or promotional purposes; or services or construction purchased for 
representational or promotional purposes outside Nova Scotia.  
2. Any of the government of Nova Scotia 's covered procuring entities may derogate from the Government Procurement 
Chapter in order to promote regional economic development, subject to the following conditions:  
a) any procurement qualifying for a derogation pursuant to this paragraph shall:  
(i) be undertaken to support small firms or employment op portunities in a non -urban area; and (ii) have an 
overall value of no more than CAD 1 million, or if the overall total value exceeds CAD 1 million, the value of 
the part of the contract that would be excluded will not exceed CAD 1 million;  
b) the derogation will only be utilized up to a maximum of 10 times per calendar year;  
c) any procurement being funded by the Government may not be excluded; and  
d) when the government of Nova Scotia intends to rely on this derogation to exclude all or part of a procurement, at  
least 30 days prior to the signing of the relevant procurement agreement, the government of Nova Scotia will 
notify the other Parties of its intention to utilize this derogation. Such notifications must include certain 
information as set out in Nova Scoti a's Schedule to Annex 520.1.  
3. Ground ambulance -related and telecommunications procurement for emergency health care purposes.  
Schedule of New Brunswick  
Procurement exceptions  
For New Brunswick, the following is not covered by the Chapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
New Brunswick Power Corporation and all of its existing future subsidiaries and affiliates; Municipal energy utilities;  
Provincial Holdings Limited; Atlantic Lottery Corporation; and Wastew ater Commissions (exception below).  
(Note: the thresholds for currently -covered entities will remain the same as they are in their current AIT Annexes.)  
The following entities are only covered by this Chapter above the CETA thresholds, and are only cover ed for goods, services 
and construction that are covered by the CETA:  
Forest Protection Limited; New Brunswick Research and Productivity Council; Wastewater Commissions are excluded 
except for the Fredericton Area Pollution Control Commission and the Grea ter Moncton Sewerage Commission; Regional 
Solid Waste Commissions listed as listed in the CETA; New Brunswick Arts Board; New Brunswick Credit Union Deposit 
Insurance Corporation; Farm Products Commission; and New Brunswick Museum   
B. Exceptions and notes  
1. For New Brunswick, the Chapter does not cover procurement of:  
(a) services that may, under the applicable laws of the Party issuing the tender, only be provided by the following 
licensed professionals, regardless of value: veterinarians, land surveyors, engineers, architects, and accountants 
below the CETA threshold. Engineers, architects and accountants are not covered, regardless of value, for those 
entities that are not covered by the CETA;  
(b) transportation services provided by locally -owned trucks for hauling aggregate on highway construction projects 
covered above the CETA threshold for those entities covered by the CETA;  
(c) advertising and public relation services;  
(d) marketing management consulting services below the CETA threshold. Marketing management consulting 
services are not covered, regardless of value, for those entities that are not covered by the CETA;  
(e) if construction materials are to be purchased and it can be demonstrated that transportation costs or technical 
considerations impose geographic  limits on the available supply base, specifically in the case of sand, stone, 
gravel, asphalt compound and pre -mixed concrete for use in the construction or repair of roads covered above 
the CETA threshold for entities covered by the CETA;  
(f) goods purchase d for representational or promotional purposes or services, or construction purchased for 
representational or promotional purposes outside the territory of a Party covered above the CETA threshold for 
those entities covered by the CETA;  
(g) procurement of any  goods, the interprovincial movement of which is restricted by laws not inconsistent with the 
CFTA, covered above the CETA threshold for those entities covered by the CETA; and  
(h) local food.  
2. Any of New Brunswick 's covered procuring entities may derogate  from the Chapter in order to promote regional economic 
development.  
(a) Any procurement being excluded under this paragraph must:  
i. be undertaken to support small firms or employment opportunities in a non -urban area; and  
ii. have an overall value of no more than CAD 1 million, but if the overall value of the procurement exceeds 
CAD 1 million, up to CAD 1 million of that overall procurement may be excluded;  
(b) the exclusion will only be utilized by New Brunswick up to a maximum of 10 times per calendar year;  WT/TPR/S/389 • Canada  
 
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  Schedule of Canada  
(c) any procurement funded by the Government may not be excluded; and  
(d) in each case where New Brunswick intends to rely on this exclusion to exclude all or part of a procurement, at 
least 30 days prior to its execution of the applicable procurement agreement, i t will notify the Parties of its 
intention to utilize this exclusion. Such notifications must include certain information as set out in New 
Brunswick 's Schedule to Annex 520.1.  
Conditions:  
3. New Brunswick submits the "hybrid negative list " procurement o ffer without prejudice, and reserves the right to make 
changes to the procurement offer based on the following:  
the formal approval by Cabinet of a negative list has been conditioned by a "modified ratchet ", allowing for the possibility 
that newly -created  entities must be consulted and approve of their coverage under this Agreement. If they do not agree 
they will be placed on the modified negative list.  
Schedule of Manitoba  
Procurement exceptions  
For Manitoba, the following is not covered by the Chapter:  
A. Excluded entities  
None 
B. Exceptions and notes  
The Chapter does not cover procurement of any goods purchased for representation purposes, or of services or construction 
purchased for representation purposes outside of Manitoba below CETA th resholds.  
Schedule of British Columbia  
Procurement exceptions  
Reciprocity is applied with respect to exceptions scheduled by other Parties to the CFTA, as set out in British Columbia 's 
Schedule to Annex 520.1.  
Schedule of Prince Edward Island  
Procurement exceptions  
For Prince Edward Island, the following is not covered by the Chapter:  
A. Excluded entities  
None 
B. Exceptions and notes  
1. architects below the CETA threshold, regardless of the value for those entities not covered by the CETA;  
2. engineers below the CETA threshold, regardless of the value for those entities not covered by the CETA;  
3. construction materials that are used for highway construction and maintenance;  
4. goods purchased for representational or promotional purposes, and servi ces and construction purchased for 
representational or promotional purposes outside the territory of a Party;  
5. local food;  
6. Articles 507.1 and 509.1 do not apply to procurement that targets poverty reduction for disadvantaged natural 
persons if the value o f the procurement is below CAD 200,000; and  
7. any of Prince Edward Island's covered procuring entities may derogate from the Chapter in order to promote 
regional economic development:  
(a) any procurement qualifying for a derogation shall: (i) be undertaken to s upport small firms or employment 
opportunities in a non -urban area; and (ii) have an overall value of no more than CAD 1 million, but if the overall 
value of the procurement exceeds CAD 1 million, up to CAD 1 million of that overall procurement may be 
excluded;  
(b) the exclusion will only be utilized by Prince Edward Island up to a maximum of 10 times per calendar year;  
(c) any procurement being funded by the Government may not be excluded; and  
(d) in each case where Prince Edward Island intends to rely on this exclus ion to exclude all or part of a procurement, 
at least 30 days prior to its execution of the applicable procurement agreement, it will notify the Parties of its 
intention to utilize this exclusion. Such notifications must include certain information, as set  out in Prince Edward 
Island's Schedule to Annex 520.1.  
Schedule of Saskatchewan  
Procurement exceptions  
For Saskatchewan, the following is not covered by the Chapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
1. SaskPower  
B. Exceptions and notes  
The Chapter does not apply to:  
The procurement of goods for representational or promotional purposes, and the procurement of services or construction 
for representational or promotional purposes outside the territory of  a Party  
Schedule of Alberta  
Procurement exceptions  
For Alberta, the following is not covered by the Chapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
The Legislative Assembly, the Legislative Assembly Office and the Legislative Offices; Alberta Innovates; Alberta Energy 
Regulator; Alberta Electric System Operator; and  Alberta Utilities Commission.  
B. Exceptions and notes  
1. The Chapter does not cover the procurement:  
(a) of goods purchased for representational or promotional purposes, and services and construction purchased for 
representational or promotional purposes outside the territory of a Party;  
(b) of local food as defined in Bill 202, 2015 the Albert a Local Food Act or any successor;  
(c) for the production, transmission and distribution of renewable energy, other than hydro -electricity; and  
(d) of waste water treatment facilities.  
2. For a period not to exceed four years after the effective date of the CFT A, Alberta reserves the right to accord a 
preference in infrastructure procurements to bids that provide benefits to the province. The selection criterion of benefits to 
the province in the evaluation of tenders shall not exceed 20% of the total points. Ec onomic benefit plans shall not take 
account of the origin of workers involved in the delivery of the benefits. For the purposes of this provision, the four Atlan tic 
provinces shall be treated the same as the provinces that are party to the New West Partner ship Trade Agreement.  WT/TPR/S/389 • Canada  
 
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  Schedule of Canada  
3. Alberta reserves the right to exclude procurements under exceptional circumstances for regional economic development 
purposes if the conditions set out in Alberta 's Schedule to Annex 520.1 are met.  
4. Alberta gives notice of its intention to create a Crown corporation which will be responsible for all infrastructure 
procurement by the provincial government, and which will be subject to the Crown corporation procurement thresholds.  
Schedule of Newfoundland and Labrador  
Procurement exceptions  
For Newfoundland and Labrador, the following is not covered by the Chapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
1. The Research and Development Corporation of Newfoundland and Labrador, and  any subsidiary thereof  
B. Exceptions and notes  
1. The Chapter does not cover procurement by a covered entity of any goods purchased for representation or 
promotional purposes, or of services or construction purchased for representational or promotional pu rposes 
outside of Newfoundland and Labrador;  
2. Subject to otherwise applicable exceptions, the Chapter covers procurements undertaken by Nalcor Energy and 
any of its existing or future subsidiaries or affiliates, as follows:  
(a) all procurements undertaken by Newfoundland and Labrador Hydro above the applicable monetary 
thresholds;  
(b) all procurements undertaken by any other Nalcor entity above the applicable monetary thresholds, except for: 
(i) any procurements that relate  to the oil and gas sector; (ii) any construction -related procurements where work 
on the applicable construction project has commenced prior to the effective date; and (iii) with regard to 
construction projects where work on the project commences after the  effective date, Nalcor reserves the right to 
derogate from the Chapter for up to 30% of construction -related procurement on the project, based on the total 
value of all construction -related procurement undertaken on the project; and  
3. Any of Newfoundland a nd Labrador 's covered entities may derogate from the Chapter in order to promote 
regional economic development, subject to the following conditions:  
(a) Any procurement qualifying for derogation pursuant to this paragraph shall:  
i. be of a total value estimated at CAD 1 million, or less; and  
ii. support small firms or employment opportunities in non -urban areas.  
(b) If the procurement meets the requirement of sub -paragraph (a)(ii) but its total value exceeds CAD 1 million, the 
value of that part of the contract that would be affected by the derogation will not exceed CAD 1 million.  
(c) Newfoundland and Labrador 's covered entities may not derogate pursuant to this paragraph more than 10 times 
in total per calendar year.  
(d) A procurement will not qualify for a derogation pur suant to this paragraph if it is funded by the Government.  
(e) Newfoundland and Labrador will notify the other Parties of any derogation taken pursuant to this paragraph at 
least 30 days prior to the signing of the relevant procurement contract. Such notifications must include certain 
information as set out in Newfoundland and Labrador 's Schedule to Annex 520.1.  
Schedule of Yukon  
Procurement exceptions  
For Yukon, the following is not covered by the Chapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
1. Regional, local, district or other forms of municipal government;  
2. Francophone School Board and publicly -funded academic, health and social service entities;  
3. Legislative Assembly;  
4. Elections Yukon;  
5. Yukon Information and Privacy Commissioner;  
6. Yukon Conflict of Interest Commissioner;  
7. Yukon Ombudsman; and  
8. Yukon Child and Youth Advocate.  
B. Exceptions and notes  
1. The Chapter does not include procurement subject to the Yukon Business Incentive  Policy or any successor policy 
having similar objectives. For goods and services, the Policy seeks to maximize the employment opportunities for 
Yukon residents resulting from the purchase of goods and services by the government; to encourage the use of 
Yukon materials and manufactured products in goods and services supplied to the government; and to encourage 
growth in the manufacturing sector, resulting in the availability of more products Yukon goods and services to the 
general public. For construction s ervices, the purposes of this Policy are: to maximize the employment 
opportunities for Yukon residents; maximize the use of Yukon materials and manufactured products in 
government construction projects; encourage the use of Yukon apprentices in government construction projects; 
and encourage the employment of Yukon youth in government construction projects.  
2. Article 518.9 does not apply to Yukon procurements that are below the thresholds prescribed in the CETA. For 
greater certainty, paragraph 9(b) does not  apply to Yukon in respect of Yukon 's exception under paragraph 9(a).  
3. Yukon may derogate from the Chapter in order to promote regional economic development, without providing 
undue support to monopolistic activities.  
(a) Any procurement qualifying for a der ogation shall:  
i. be of a total value estimated at CAD 1 million dollars, or less; and  
ii. support small enterprises or employment opportunities.  
(b) If a procurement meets the requirement in subparagraph (a)(ii) but its total value exceeds CAD 1 million, the 
value of the part of the contract that would be affected by the derogation may not exceed CAD 1 million.  
(c) Yukon may not derogate from the procurement provisions of the Chapter more than 10 times per year.  
(d) A procurement qualifying for a derogation shall be  notified at least 30 days prior to the signing of the 
procurement contract, accompanied by:  
i. the details of the circumstances justifying a derogation, pursuant to the Note in Yukon 's Schedule to Annex 
520.1;  
ii. the information regarding the name of the enter prise(s) and/or area(s) to which the procurement is expected 
to provide regional economic benefits; and  
iii. an explanation of reasons for the conformity of the procurement with the requirements of this exception.  WT/TPR/S/389 • Canada  
 
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  Schedule of Canada  
C. Transitional Measures Annex  
The following provisions of the Agreement do not apply to Yukon for a period of two years after the effective date: Articles 
506 and 516.  
Schedule of the Northwest Territories  
Procurement exceptions  
For the Northwest Territories, the following is not covered by the C hapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
1. the Legislative Assembly;  
2. all other procuring entities as described under Article 504.3 are covered, at the following revised thresholds (and subjec t 
to Article 50 4.4):  
(a) for the procuring entities described under Article 504.3(a), the thresholds at Article 504.3(a) are amended to (i) 
CAD 150,000 or greater for goods or services, if the largest portion of the procurement is for goods or services; or (ii) 
CAD 500,000 or greater for construction;  
(b) for the procuring entities described under Article 504.3(b), the thresholds at Article 504.3(b) are amended to (i) 
CAD 300,000 or greater for goods or services, excluding construction; or (ii) CAD 7.5 million or greater  for construction; 
and 
(c) for the procuring entities described under Article 504.3(c), the thresholds at Article 504.3(c) are amended to (i) 
CAD 500,000 or greater for goods or services, excluding construction; or (ii) CAD 7.5 million or greater for const ruction.   
For greater certainty, if a procuring entity falls under the description at Article 504.3(a) and Article 504.3(b), the applic able 
thresholds are those set out in (b) above. If a procuring entity falls under the description at Article 504.3(a) an d Article 
504.3(c), the applicable thresholds are those set out in (c) above.  
B. Exceptions and notes  
1. The Agreement does not cover procurement subject to the Northwest Territories Business Incentive Policy 
(including the Northwest Territories Manufacture d Products Policy and other directly related programmes) or 
successor programmes having similar objectives.  
2. Article 518.9 shall only apply to the government entities described at Article 504.3(a) if the procurement value is 
(i) CAD 300,000 or greater for goods or services, if the largest portion of the procurement is for goods or 
services; or (ii) CAD 7.5 million or greater for construction.  
3. Procuring entities may derogate from the Chapter in order to promote regional economic development by 
supporting sm all enterprises or employment opportunities, without providing undue support to monopolistic 
activities. Notice of such procurements shall be made publicly available and include information with regard to the 
procurement and the successful supplier.   
For procurements of goods or services in excess of CAD 300,000 and construction in excess of CAD 7.5million, 
the following additional restrictions shall apply to a derogation from the Chapter for the purposes of regional 
economic development: (a) (i) if the to tal value of the procurement of goods or services exceeds CAD 1 million or 
the total value of the procurement of construction exceeds CAD 7.5 million, then the value of the part of the 
contract that would be affected by the derogation must not exceed CAD 1  million; or (ii) if the procurement of 
goods or services is valued at CAD 1 million or less, then the entire value of the contract may be affected by the 
derogation;  
(b) this derogation may not be used more than 10 times per year; and  
(c) a procurement s hall not qualify for a derogation if it is funded by the Government.  
Schedule of Nunavut  
For Nunavut, the following is not covered by the Chapter:  
A. Excluded entities  
The following entities are not covered by the Chapter:  
1. the Legislative Assembly;  
2. all other procuring entities as described under Article 504.3 are covered, at the following revised thresholds (and subjec t 
to Article 504.4): (a) for the procuring entities described under Article 504.3(a), the thresholds under Article 504.3(a) are  
amended to (i) CAD 150,000 or greater for goods or services, if the largest portion of the procurement is for goods or 
services; or (ii) CAD 500,000 or greater for construction;  
(b) for the procuring entities described under Article 504.3(b), the thresholds at Article 504.3(b) are amended to (i) 
CAD 300,000 or greater for goods or services, excluding construction; or (ii) CAD 7.5 million or greater for construction; 
and 
(c) for the procuring entities described under Article 504.3(c), the thresholds at Article  504.3(c) are amended to (i) 
CAD 500,000 or greater for goods or services, excluding construction; or (ii) CAD 7.5 million or greater for construction.  
For greater certainty, if a procuring entity falls under Article 504.3(a) and Article 504.3(b), the app licable thresholds are 
those set out in (b) above. If a procuring entity falls under Article 504.3(a) and Article 504.3(c), the applicable threshold s 
are those set out in (c) above.  
B. Exceptions and notes  
1. The Agreement does not cover procurement subj ect to the Nunavut Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) 
or successor programmes having similar objectives, and contracts within the terms of Article 24 of the Nunavut Land Claims 
Agreement.  
2. Procuring entities may derogate from this Chapter in order to promote regional economic development by supporting 
small enterprises or employment opportunities, without providing undue support to monopolistic activities. Notice of such 
procurement shall be made publicly available and include information w ith regard to the procurement and successful 
supplier.  
For procurements of goods or services in excess of CAD 300,000 and construction in excess of CAD 7.5 million, the 
following additional restrictions shall apply to a derogation from the Chapter for the  purposes of regional economic 
development:  
(a) (i) if the total value of the procurement of goods or services exceeds CAD 1 million or the total value of the procuremen t 
of construction exceeds CAD 7.5 million, then the value of the part of the contract that would be affected by the derogation 
must not exceed CAD 1 million; or (ii) if the procurement of goods or services is valued at CAD 1 million or less, then the 
entire value of the contract may be affected by the derogation;  
(b) this derogation may not be used more than ten times per year; and  
(c) a procurement shall not qualify for a derogation if it is funded by the Government.  WT/TPR/S/389 • Canada  
 
- 234 - 
 
  Schedule of Canada  
3. Only Article 502.2 applies to procurement targeting poverty reduction for disadvantaged people for which the value is 
below CAD 300,000.   
4. Article 518.9 shall only apply to the government entities described in Article 504.3(a) where the procurement value is (i) 
CAD 300,000 or greater for goods or services; or (ii) CAD 7.5 million or greater for construction.  
Source:  CFTA, Consolidated Version . Viewed at: https://www.cfta -alec.ca/wp -content/uploads/2017/06/CFTA -
Consolidated -Text-Final-Print-Text-English.pdf ; and information provided by the auth orities.   WT/TPR/S/389 • Canada  
 
- 235 - 
 
  Table A3. 6 National IP legislation and international agreements, December 2018  
Legislation  Scope, term of protection, and selected limitations  
Patents   
Patent Act, 1985 (amended); Patent 
Rules, 1996 (amended).  
The Patent Act was last amended by 
Bill C-86 (Budget Implementation Act, 
2018, No. 2).  
Additionally, the Patent Act was 
amended by Bill C -30 (An Act to 
implement the Comprehensive 
Economic and Trade Agreement 
between Canada and the European 
Union and its Membe r States and 
provide for certain other measures, 
provisionally applied since 21 
September 2017, and by Bill C -59 
(Economic Action Plan 2015 Act, 
No. 1) Coverage: new and useful invention, or new and useful improvement of 
existing invention; inventions are defined to include: art, process, machine, 
manufacture, and composition of matter. Higher life forms may not be 
patented.  
Protection: up to 20  years from filing.  
Part 4, Division 7, Subdivision A of Bill C -86 amended the Patent Act to 
advance the Governme nt's IP Strategy, including to clarify acceptable practices 
and prevent misuses of IPRs.  
Bill C-30 amended the Patent Act, Sections 104 to 134, to make available a 
Certificate of Supplementary Protection (CSP) for eligible new medicinal 
ingredients or new combinations of medicinal ingredients that are contained in 
human and veterinary drugs, following expiry of an eligible patent. The rights of 
a CSP match those of the patent as they apply to a medicinal ingredient or 
combination in a drug, with a few excep tions. The CSP can last for up to 
two years, thereby providing significant additional protection to pharmaceutical 
manufactures.  
Bill C-30 also amends Section 55.2 (4) of the Patent Act to allow the Governor 
in Council to make regulations that will ensure that disputes brought under the 
Patented Medicines (Notice of Compliance) Regulations, which constitute 
Canada 's pharmaceutical patent linkage regime, provide litigants with an 
equivalent and effective right to appeal.  
Bill C-59 amended the Patent Act to p rotect communications between patent or 
trade -mark agents and their clients in the same way as communications that 
are subject to the solicitor -client privilege. These amendments came into force 
in June 2016.  
Patented Medicines (Notices of 
Compliance) Reg ulations  Provides for effective patent enforcement over new and innovative drugs and 
the timely market entry of competing generic products.  
Trade secrets and data protection   
Trade secrets are protected by 
common law and, in Quebec, by the 
Civil Code  Criminalizes trade secret theft sponsored by, for the benefit of, or in association 
with foreign entities.  
Criminalizes fraud generally and may, in some cases, render trade secret 
misappropriation a criminal offence.  
Data Protection provisions in the Food  
and Drug Regulations  
 
 
 
Pest Control Products Data Protection 
Regulations  New pharmaceutical products containing medicinal ingredients not previously 
approved in Canada i.e. new chemical entities.  
Protection: 8 years of data protection; can be extended for an additional 
6 months with the filing of the results of a paediatric study.  
 
10 years ' exclusive -use protection (plus up to 5 additional years if minor uses 
are registered). Exclusive -use protection for data supporting the registration of 
a new product, which contains a new active ingredient. Other data supporting 
the registration are assig ned a 12 -year compensable status (e.g. where a new 
use is registered following mutual registration).  
Industrial designs   
Industrial Design Act, 1985 (amended)  
Industrial Designs Regulations, 1999 
(amended).  
The Industrial Design Act was 
amended in 2014 t o enable Canada to 
accede to the Hague Agreement, and 
to modernize its industrial design 
regime  Protection: up to 15  years.  
Applies to novel industrial designs defined as features of shape, configuration, 
pattern or ornament, and any combination of those features that, in a finished 
article, appeal to, and are judged solely by, the eye.  
Protection is not extended to: features applied to a useful article dictated solely 
by a utilitarian function of the article; or any method or principle of 
manufacture or c onstruction.  
The Hague Agreement  Notable amendments to the legislation include the following:  
- the maximum term of exclusive right is increased from 10 years to 
15 years;  
- clarifies that a certified copy of an entry in the Register of Industrial 
Designs is admissible evidence in any court;  
- provides that any error made in the Register of Industrial Designs may be 
corrected within six months of the entry if the error is obvious from 
documents that are in the Minister 's possession. Previously, corrections 
were limited to clerical errors; and  
- codifies the "novelty test ", that is, the Supreme Court 's test for 
"originality " of a design and uses the term "novelty " to describe a design, 
which is aligned with international terminology.  WT/TPR/S/389 • Canada  
 
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  Legislation  Scope, term of protection, and selected limitations  
New Industrial Design Regulations, 
2018 
 The new Regulations facilitate Canada 's accession to the Hague System, carry 
out the amendments that were made to the Act, and further modernize the 
domestic industrial design regime. Some of the main changes include:  
- electronic communic ations is deemed received 24/7, regardless of whether 
the office is open or closed to the public;  
- filing date requirements have been simplified to align with international 
standards;  
- applications are now made available to the public at registration or 
30 months from the earliest priority date, whichever comes first;  
- application requirements have been simplified: the prescribed application 
form is no longer required; the description is now optional and the 
application is deemed to relate to all four features of the design (shape, 
configuration, ornamentation and pattern); designs no longer need to be 
shown applied to a finished article; applications are no longer limited to a 
single environmental view; and a divisional application may be filed for any  
design disclosed in a previously -filed application, including in environmental 
views;  
- an applicant no longer needs to provide signed authorization to appoint an 
agent and  
- the Regulations contain specific provisions that apply only to international 
registr ations that designate Canada and that are received from WIPO. 
Transitional provisions outline how the office will process an application 
received before the coming into force.  
Trademarks   
Trade -marks Act, 1985 (amended).  
Trademarks Regulations, 1996 
(amended).  
The Trade -Marks Act was last 
amended by Bill C -86 (Budget 
Implementation Act, 2018, No. 2).  
 Trademarks include: a mark used by a person for the purpose of distinguishing, 
or so as to distinguish, wares or services manufactured, sold, leased, hired or 
performed by him from those manufactured, sold, leased, hired or performed 
by others; a certification mark; a distinguishing guise; or a proposed 
trademark. Prohibited marks are listed in the Trademarks Act (Articles 9 -11); 
criteria for registrable trad emarks in Articles 12 -15. 
Part 4, Division 7, Subdivision B of Bill C -86 amended the Trade -marks Act to 
advance the Government 's IP Strategy, including to clarify acceptable practices 
and prevent misuses of the trademark regime.  
Trademark protection: 15  years, renewable for further 15 -year terms on 
payment of renewal fees.  
Geographical indications (GIs)   
Trade -marks Act, 1985 (amended).  
Trademarks Regulations, 1996 
(amended).  
The Trade -marks Act was amended by 
Bill C-30 (An Act to implement the 
Comprehen sive Economic and Trade 
Agreement between Canada and the 
European Union and its Member States 
and provide for certain other 
measures) (21 September 2017)  Once protected, there is no term of protection for GIs for wines and spirits and 
certain agricultural products and food products. The Trade -marks Act prohibits 
the adoption and use, as a trademark or otherwise, of protected GIs for wines 
and spirits and certain agricultural products and foods which do not originate in 
the territory indicated by the GI or d o not originate from that territory but have 
not been manufactured in accordance with the relevant regulations.  The 
Trade -marks Act provides for the protection of GIs for goods other than wines 
and spirits and certain agriculture and food products through certification marks 
(Articles 23 -25), which have the same scope of protection as trademarks, 
except that the owner cannot be involved in the manufacture, sale, lease, etc. 
of the goods indicated by the GI (Article 23).  
Bill C-30 amended the Trade -marks Act  to protect certain agricultural products 
and food products as GIs, including associated rights, exceptions, and product 
categories denoting the scope of rights. The Registrar of Trade -marks continues 
to be responsible for maintaining a list of protected G Is. Any person may 
request to have an Indication entered on the list of protected GIs, provided it 
meets the definition of a GI. A third party can object to the application on 
various grounds, which include: the proposed Indication does not function as a 
GI; the proposed Indication is not protected under the law of the country of 
origin; the proposed Indication is identical to a common name for the goods; 
and, for Indications related to agricultural products and foods, the proposed 
Indication is confusing w ith a registered trademark, a previously -used 
trademark, or an earlier and co -pending trademark application. Bill C -30 
provides a mechanism for an interested party to apply to the Federal Court to 
remove a GI from the protected list. The grounds for which a GI may be 
removed are similar to the grounds for which a GI may be objected to.  
Copyright   
Copyright Act, 1985 (amended)  
Copyright Regulations, 1997 
(amended)  
. 
 
The Canadian Copyright Act was last 
amended by Bill C -86 (13 December 
2018), the Government 's Budget 
Implementation Act, 2018, No. 2.  Applies to original literary, dramatic, musical, and artistic works; performers ' 
performances; communication signals; and sound recordings.  
Protection is provided to countries with whom Canada has a trea ty or other 
agreement; exceptions to copyright infringement are outlined in 
Articles  29-32.2 of the Act. They relate, inter alia, to fair dealing; 
non-commercial user -generated content, private copying, time -shifting of 
broadcasts, educational institutions , libraries, archives and museums; 
interoperability of computer programs; ephemeral copies and recordings; and 
persons with perceptual disabilities.  
Bill C-86 amended sections of the Copyright Act, pertaining primarily to the 
Copyright Board and Collective  Administration of Copyright (i.e. Parts VII and 
VIII), as well as the sections in the Act that concern the notice and notice 
regime (i.e. Sections 41.25 -41.27).  
The amendments aimed at ensuring more predictability and clarity of 
decision -making processes;  establishing streamlined time -lines; and increasing WT/TPR/S/389 • Canada  
 
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  Legislation  Scope, term of protection, and selected limitations  
efficiency by allowing more parties to establish royalty rates outside of the 
Board 's oversight.  
Protection: generally, 50 years from the last author 's death; other specific 
terms of protection, includi ng 70 years from publications for sound recordings.  
Integrated circuits   
Integrated Circuit Topography Act, 
1990 
(amended)  
Integrated Circuit Topography 
Regulations, 1993 (amended)  Protection: up to 10  years, beginning on the filing date or the date of first 
commercial exploitation, whichever is earlier. The term ends on 31 December 
of the 10th year. Protection is for the three -dimensional configuration of the 
materials that form integrated circuits, whether it has been embodied in an 
integrated circuit product or not. Topographies that define only part of the 
structure needed to perform an electronic function may be registered. 
Protection is extended to nationals of non -WTO Members on a reciprocal basis.  
The exclusive right in a registered topography co nsists of the exclusive right to:  
(a) reproduce the topography or any substantial part thereof;  
(b) manufacture an integrated circuit product incorporating the topography or 
any substantial part thereof; and  
(c) import or commercially exploit the topography or any substantial part 
thereof, or an integrated circuit product that incorporates the topography or 
any substantial part thereof.  
Exceptions to exclusive rights include: exhaustion of rights applying to 
integrated circuit products legitimately  put on the market anywhere in the 
world with the authorization of the owner of the rights; unauthorized copying of 
a protected topography for the sole purpose of either analysis or evaluation, or 
of research or teaching with respect to topographies; and r everse engineering.  
Plant variety protection   
Plant Breeders ' Rights Act, 1990 
(amended) (PBR Act)  
Plant Breeders ' Rights Regulations, 
1991 (amended)  
 
The Act was last amended Bill C -18 
(27 February 2015)  Allows for the protection of new varieties of plants; varieties must be new, 
distinct, uniform and stable. All plant species are eligible for protection. Algae, 
bacteria and fungi are not protected. Applicants may only be citizens of, 
residents of, or have a resident office in Canada or a UPOV member State.  
Restrictions to the holders ' rights include: protected varieties may be used for 
breeding and developing new plant varieties; and farmers may save and use 
the harvested seed of a protected variety for replanting on their own land 
without infringing on the holder 's rights (farmers ' privilege). Protection is up to 
18 years, effective from the date of issue of the rights certificate. The PBR Act 
extended the protection period from 18 years to 25 years (for trees, vines or 
any specified categories) and 2 0 years for all other crops, unless the breeder 
terminates them earlier.  
 Bill C-18 amended the PBR Act to strengthen the rights of breeders, and 
improve accessibility to protection by:  
- extending plant breeders ' rights to include reproduction, import, exp ort, 
conditioning (cleaning, treating), and stocking for the commercial purposes 
of propagating, in addition to the current system that already allows for sale 
of propagating material and the production of propagating material intended 
for sale;  
- allowing plant breeders to sell a variety in Canada for up to one year before 
applying for PBR protection, in order to test the market, advertise, or to 
increase stock; and  
- providing automatic provisional protection for a new plant variety from the 
date of filing, which allow applicants to exercise their rights while 
applications are pending "grant of rights " (no legal action may be initiated 
until after the rights are granted).  
Source:  WTO Secretariat.  
  
  WT/TPR/S/389 • Canada  
 
- 238 - Table A4. 1 Indicators for selected agricultural commodities, 2009 -17 
  2009  2010  2011  2012  2013  2014  2015  2016  2017  
Canolaa          
Production ( '000 tonnes)  12,898.1  12,788.6  14,608.1  13,868.5  18,551.0  16,410.1  18,376.5  19,599.2  21,328.0  
Imports ( '000 tonnes)  127.9  223.7  96.6 127.6  66.1 76.6 105.0  94.5 107.5  
Exports ( '000 tonnes)  7,162.5  7,104.6  8,699.0  7,301.9  9,095.6  9,163.3  10,299.0  11,016.4  10,723.1  
Average price (CAD/tonne)  426 568 601 650 503 489 509 529 539 
Producer SCT (CAD million)  71.1 112.1  102.3  215.3  32.6 72.8 98.0 49.3 271.7  
Percentage SCT (%)  1.4 1.7 1.3 2.5 0.4 1.0 1.1 0.5 2.5 
Wheat (including  durum)a          
Production ( '000 tonnes)  26,949.9  23,299.6  25,288.0  27,246.0  37,589.1  29,442.1  27,647.4  32,139.9  29,984.2  
Imports ( '000 tonnes)  117.4  68.0 78.4 73.8 55.0 88.2 108.6  109.6  82.1 
Exports ( '000 tonnes)  18,481.3  16,183.8  17,499.7  19,578.1  23,496.4  23,956.8  21,704.9  20,155.3  21,866.6  
Average price (CAD/tonne), durum  203 300 345 290 220 310 290 275 265 
Average price (CAD/tonne), wheat  218 318 290 285 205 210 225 235 240 
Producer SCT (CAD million)  102.4  87.0 69.2 42.5 50.3 103.7  108.1  156.3  192.2  
Percentage SCT (%)  2.4 1.7 1.3 0.6 0.6 1.4 1.7 2.2 2.9 
Soybeansb          
Production ( '000 tonnes)  3,581.6  4,444.6  4,466.5  5,086.4  5,355.9  6,044.8  6,456.3  6,596.5  7,716.6  
Imports ( '000 tonnes)  371.7  266.3  232.5  257.6  343.1  331.2  319.0  482.4  487.2  
Exports ( '000 tonnes)  2,111.3  2,753.6  2,741.4  3,331.6  3,427.3  3,804.4  4,190.6  4,419.8  4,998.2  
Average price (CAD/tonne)  359.0  447.0  478.0  532.0  530.0  418.0  440.0  454.0  434.0  
Producer SCT (CAD million)  15.5 5.1 14.9 9.8 15.0 34.2 27.1 30.7 78.5 
Percentage SCT (%)  1.1 0.3 0.7 0.4 0.6 1.3 1.0 1.0 2.2 
Barleya          
Production ( '000 tonnes)  9,528.2  7,627.2  7,891.5  8,012.3  10,281.6  7,116.8  8,256.6  8,839.4  7,891.3  
Imports ( '000 tonnes)  42.4 42.7 13.5 19.0 9.0 136.1  160.9  63.6 58.7 
Exports ( '000 tonnes)  2,149.2  2,016.7  2,058.6  2,184.3  2,390.9  2,463.0  1,992.3  2,322.7  2,824.6  
Average price (CAD/tonne)  153 188 225 279 188 201 209 169 227 
Producer SCT (CAD million)  47.3 39.7 36.9 46.0 13.4 19.7 21.3 16.0 38.0 
Percentage SCT (%)  5.5 3.1 2.8 2.7 0.8 2.1 1.8 1.8 3.4 
Lentilsa          
Production ( '000 tonnes)  1,530.2  2,004.8  1,573.5  1,537.9  2,261.7  1,987.0  2,540.5  3,193.8  2,558.5  
Imports ( '000 tonnes)  8.2 28.5 11.4 8.7 9.4 13.4 16.3 98.0 34.7 
Exports ( '000 tonnes)  1,386.8  1,105.0  1,147.7  1,638.2  1,752.7  2,179.3  2,144.5  2,454.8  1,537.0  
Average price (CAD/tonne)  645 440 470 440 445 585 965 575 475 
Producer SCT (CAD million)  4.3 55.2 15.7 10.1 1.4 25.5 21.5 172.2  40.7 
Percentage SCT (%)  0.4 5.9 2.1 1.5 0.1 2.1 0.9 8.4 3.2 
a Crop year runs from August to July, i.e. 2009 is 2009 -10. 
b Crop year runs from September to August, i.e. 2009 is 2009 -10. 
Note:  SCT refers to Single Commodity Transfers: the sum of transfers to producers granted for a single commodity. The % SCT is expr essed as a share of gr oss farm receipts 
for the specific commodity.  
Source:  Agriculture and Agri -Food Canada. Viewed at: http://www.agr.gc.ca/eng/ industry -markets -and-trade/canadian -agri-food-sector -intelligence/crops/?id=1361290484419 ; 
and OECD, Producer and Consumer Support Estimates database. Viewed at: http://www.oecd.org/tad/agricultural -
policies/producerandconsumersupportestimatesdatabase.htm#country . 
__________