WT/REG389 /1 
 
 
10 April 2018  
(18-2153) Page: 1/75 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
COMPREHENSIVE ECONOM IC AND TRADE AGREEME NT BETWEEN CANADA  AND 
THE EUROPEAN  UNION  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Comprehensive Economic and Trade 
Agreement  between Canada  and the European Union , has been drawn up by the WTO 
Secretariat on its own responsibility and in full consultation with the Parties. The 
factual p resentation reproduces as closely as possible the terminology used in the 
Agreement and in the comments provided and does not imply official endorsement or 
acceptance by the Secretariat of such terminology. The report has been drawn up in 
accordance with t he rules and procedures contained in the Decision for a 
Transparency Mechanism for Regional Trade Agreements (WT/L/671) and thus does 
not imply any value judgement by the Secretariat regarding the contents of the 
Agreement.  
Any technical questions arising from this report may be addressed to Jean-Daniel Rey  
(tel: +41 22 739 52 64 ). Any statistical questions arising from this report may be 
addressed to Thakur  Parajuli (tel: +41 22 739 54 73 ). 
 
 
  WT/REG389/1  
 
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  TABLE OF CONTENTS  
 
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 5 
1.2   Trade in services and investment  ................................ ................................ ..................  7 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ....................  10 
2.1   Background Information  ................................ ................................ .............................. 10 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  12 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 12 
3.1.1    General provisions  ................................ ................................ ................................ ...12 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 13 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 14 
3.1.3.1    Canada  ................................ ................................ ................................ ................ 14 
3.1.3.2    The European Union  ................................ ................................ .............................. 17 
3.2   Tariff rat e quotas  ................................ ................................ ................................ ........ 19 
3.3   Rules of origin  ................................ ................................ ................................ ............ 20 
3.4   Export duties and charges, and quantitative restrictions  ................................ .................. 22 
3.5   Regulatory provisions on trade in goods  ................................ ................................ ........ 23 
3.5.1    Standards  ................................ ................................ ................................ ............... 23 
3.5.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......23 
3.5.1.2    Technical barriers to trade  ................................ ................................ ..................... 24 
3.5.2    Safeguard mechanisms  ................................ ................................ ............................ 25 
3.5.2.1    Global safeguards  ................................ ................................ ................................ .26 
3.5.2.2    Bilateral safeguards  ................................ ................................ ............................... 26 
3.5.2.3    Special safeguards (Agriculture)  ................................ ................................ ............. 26 
3.5.2.4    Other Safeguard measures  ................................ ................................ ..................... 26 
3.5.3    Antidumping and countervailing measures  ................................ ................................ ..26 
3.5.4    Subsidies and State -aid ................................ ................................ ............................ 27 
3.5.5    Customs -related procedures ................................ ................................ ...................... 27 
3.6   Sector -specific provisions on trade in goods  ................................ ................................ ...28 
3.6.1    Pharmaceutical products  ................................ ................................ ........................... 28 
3.6.2    Motor vehicles  ................................ ................................ ................................ ......... 28 
4   PROVISIONS ON TRADE IN  SERVICES AND INVESTM ENT ................................ .........  28 
4.1   Scope and definitions  ................................ ................................ ................................ ..28 
4.2   Denial of benefits  ................................ ................................ ................................ .......29 
4.3   General provisions on trade in services and investment  ................................ ................... 30 
4.3.1    Market access  ................................ ................................ ................................ ......... 30 
4.3.2    National and MFN treatment  ................................ ................................ ...................... 30 
4.3.3    Commercial (local) presence  ................................ ................................ ..................... 31 
4.3.4    Performance requirements  ................................ ................................ ........................ 31 WT/REG389/1  
 
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  4.3.5    Senior Managers and Boards of Directors  ................................ ................................ ....32 
4.3.6    Movement of natural persons  ................................ ................................ .................... 32 
4.4   Liberalization commitments  ................................ ................................ ......................... 33 
4.4.1    Canada  ................................ ................................ ................................ ................... 33 
4.4.1.1    MFN and horizontal commitments  ................................ ................................ ........... 33 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 34 
4.4.2    The European Union  ................................ ................................ ................................ .38 
4.4.2.1    MFN and horizontal commitm ents ................................ ................................ ........... 38 
4.4.2.2    Sector specific commitments  ................................ ................................ .................. 39 
4.5   Regulatory provisions  ................................ ................................ ................................ ..43 
4.5.1    Domestic regulation  ................................ ................................ ................................ .43 
4.5.2    Recognition and temporary licensing  ................................ ................................ .......... 43 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 44 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 44 
4.5.5    Other  ................................ ................................ ................................ ..................... 44 
4.5.5.1    Investment  ................................ ................................ ................................ .......... 44 
4.5.6    Sector specific provisions on trade in services  ................................ ............................. 45 
4.5.6.1    Financial services  ................................ ................................ ................................ ..45 
4.5.6.2    International maritime  transport services  ................................ ................................ .47 
4.5.6.3    Telecommunication Services  ................................ ................................ ................... 47 
5   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  47 
5.1   Transparency  ................................ ................................ ................................ ............. 47 
5.2   Current payments and capital movements  ................................ ................................ .....48 
5.3   Exceptions  ................................ ................................ ................................ ................. 48 
5.3.1    General exceptions  ................................ ................................ ................................ ..48 
5.3.2    Security exceptions  ................................ ................................ ................................ ..48 
5.3.3    Taxation  ................................ ................................ ................................ ................. 48 
5.4   Accession and Withdrawal ................................ ................................ ............................ 48 
5.5   Institutional framework  ................................ ................................ ............................... 48 
5.6   Dispute settlement  ................................ ................................ ................................ .....50 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 52 
5.8   Government procurement  ................................ ................................ ............................ 54 
5.9   Intellectual property rights  ................................ ................................ .......................... 55 
5.10   Other  ................................ ................................ ................................ ...................... 57 
5.10.1    Water  ................................ ................................ ................................ ................... 57 
5.10.2    Small and Medium sized Enterprises (SMEs)  ................................ .............................. 57 
5.10.3    Electronic commerce  ................................ ................................ .............................. 58 
5.10.4    Competition policy, monopolies and state enterprises  ................................ ................. 58 
5.10.5    Labour, environment and sustainable development  ................................ .................... 59 
5.10.6    Regulatory cooperation  ................................ ................................ ........................... 60 WT/REG389/1  
 
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  ANNEX 1  ................................ ................................ ................................ ........................  62 
ANNEX 2  ................................ ................................ ................................ ........................  69 
ANNEX 3  ................................ ................................ ................................ ........................  72 
  WT/REG389/1  
 
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Key Facts  
 
Parties to the Agreement:   Canada and the European Union  
 
Date of Signature:    30 October 2016  
 
Date  of entry into force : 21 September 2017  
 (Provisional  application ) 
 
Date of Notification:    19 September 2017  
 
Full implementation :   1 January 2024  
 
 
 
1  TRADE ENVIRONMENT1 
1.1.  The Comprehensive Economic and Trade Agreement between  Canada  and the European 
Union and its member States2 (hereinafter referred to as "the Agreement" ) is one of Canada's 13 , 
and the EU's 42 RTAs.3  
1.2.  In 2016 , Canada's GDP was estimated at US$1, 529 billion, whi le that of the EU  was 
US$1 6,408 billion. Averaged over the period 2014 -2016, the Parties ' trade (goods and services) to 
GDP ratio4 was 32.3 for Canada and 16.8 for the EU . 
1.1  Merchandise trade  
1.3.  In 2016 , Canada's merchandise exports amounted to US$ 390 billion (2.45 % of global exports  
and 7th largest exporter to the world ) and imports amounted to US$ 416 billion ( 2.57% of global 
imports  and 6th largest importer from the world ). In the same year, the EU 's merchandise exports 
amounted to US$ 1,932  billion ( 15.44  % of global exports  and 2nd largest exporter to the world ) 
and imports amounted to US$ 1,889  billion ( 14.78 % of global imports  and 2nd largest importer 
from the world ). For both Parties manufactured products represent the main commodity group 
traded ( 51.1% and  77.1% respectively of Canada's exports and imports; and 80.6% and 65.8% 
respectively of the EU 's exports and imports).  
1.4.  Based on 2016  trade data5, the EU  was Canada's 3rd largest source for imports6 (representing 
11.4% of Canada's total imports) and 2nd largest destination for exports7 (representing 7.7% of 
Canada's total exports). Canada was the EU 's 12th largest source for imports8 and 11th largest 
destination for exports9 (representing 1.7% and 2% of t he EU's total imports and exports).  
1.5.  Chart 1.1 summa rizes the trends in global and bilateral trade of the Parties. The EU 
experienced a trade deficit with the world during the first part of the period (between 2000 and 
2012, with an exception in 2002), then reversed the trend since 2013. Canada's evolution of its 
global trade shows an almost opposite picture with a global trade surplus between 2000 and 2008, 
                                                
1 Source: WTO Trade Profiles (2016 data); situation in February 2018. Trade statistics exclude intra -EU 
trade. For the calculation of the Trade ratio, the period consider covers 2014 -2016 (annual average).  
2 Hereinafter referred to as "the EU".  
3 RTAs in goods and services counted as one and only agreements in force, notified to the WTO.  
4 The GDP ratio indicates the percentage of the GDP represented by trade. The value of trade 
corresponds to the total of tr ade in goods and services (exports plus imports), on a BOP basis.  
5 Source: UNSD Comtrade  database  and Eurostat.  
6 The five top sources of imports for Canada were: the US (52.2%); China (12.1%); the EU(28) 
(11.4%); Mexico (6.2%); and Japan (3%). (Source:  UNSD Comtrade, excluding intra -EU trade).  
7 The five top destination of exports from Canada were: the US (76.2%); the EU(28) (7.7%); China 
(4.1%); Japan (2.1%); and Mexico (1.5%). (Source: UNSD Comtrade, excluding intra -EU trade).  
8 The five top sources o f imports for the EU were: China (20.1%); the US (14.6%); Switzerland (7.1%); 
Russia (6.9%); and Turkey (3.9%). (Source: Eurostat).  
9 The five top destination of exports from the EU were: the US (20.8%); China (9.7%); Switzerland 
(8.1%); Turkey (4.5%); and  Russia (4.1%). (Source: Eurostat).  WT/REG389/1  
 
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  followed by a period of trade deficit  for most of the period between 2009 and 2016. While trade 
increased until the  drop consequent to the  2008-2009 fin ancial and economic crises, it recovered 
immediately after but showed signs of slowdown for both Parties  in the most recent few  years . In 
relation to trade between the Parties, UNSD Comtrade  statistics  used for Canada,  as well as  
Eurostat statistics , used for the EU , show a  positive balance in favour of the EU .10 
Chart 1.1 Canada - EU: Merchandise trade bilat erally and with world, 2000 -2016  
 
Note:  Data for 2001 -2003 is EU(15); 2004 -2006 is EU(25); 2007 -2012 is  EU(27); and 2013 onwards is 
EU(28).  
Source:  Eurostat and UNSD Comtrade database.  
 
1.6.  The commodity structure of trade between Canada and the EU , as well as both Parties'  global 
trade in the period 2014 -2016, are shown in Chart 1.2 on the basis of Harmonized System (HS) 
sections , using the same statistics as in the previous Chart .11 Precious stones, machinery, and 
minerals accounted  for more than half of the EU 's imports from Canada (respectively 
corresponding to 31.2%, 13.9 %, and 13%  of the EU 's imports from Canada). These three  
categories of commodities also corresponded to, respectively , 4%, 23.2% and 21.6% of the EU's 
global imports , and to, respectively , 4.4%, 10.5% and 22.7%  of Canada's exports to the world . 
The three  commodities most impo rted by Canada from the EU  were machinery; products of 
chemical or allied industries; and vehicles, including aircrafts and vessels , representing 
respectively 26%, 17%, and 16.5%  of Ca nada's imports from its partner . The same commodities  
corresponded to, respectively , 25.7%, 15.4%, and 16.3% of the EU's global exports , and to, 
respectively , 24.8%, 8.6%, and 18.4% of Cana da's total imports  from the world . 
                                                
10 The only discrepancy between UNSD Comtrade and Eurostat corresponds to the year 2011.  
11 The national statistics of the Parties may slightly differ from the, also official, sources systematically 
used in the preparation  of factual presentations.  
0102030405060708090100
02004006008001,0001,2001,4001,6001,8002,000
2000 2002 2004 2006 2008 2010 2012 2014 2016B. EU 2000 -2016
(€billions)
Imports from Canada (Right Axis)
Export to Canada (Right Axis)
Total Imports
Total Exports
0102030405060708090100
050100150200250300350400
2000 2002 2004 2006 2008 2010 2012 2014 2016A. Canada 2000 -2016 
(€billions)
Imports from EU (Right Axis)
Export to EU (Right Axis)
Total Imports
Total ExportsWT/REG389/1  
 
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  Chart 1.2 Canada - EU: product composition of merchandise trade, by HS Section  
(2014 -2016)  
 
Note:  Canada - Exchange rate EUR per USD are: 0.75 (2014), 0.90 (2015), 0.90 (2016).  
 The Category "vegetables" also includes fruits.  
Source:  Eurostat and UNSD Comtrade database.  
 
1.2  Trade in services and investment  
1.7.  In 2016 , Canada's shares of total commercial serv ices exports and imports were 1.66% and 
2.06% respectively, while the EU 's corresponding share s were 24.92 % of global  exports and 
21.1% of global  imports. With total commercial services exports of US$ 80 billion, and imports of 
US$96 billion, Canada was the  world's 10th largest exporter and 8th largest i mporter of commercial 
services, while t he EU  was the largest exporter (US$ 917 billion) and importer (US$ 771 billion).  
1.8.  Charts 1.3 and 1.4 below show global trade in commercial services for Canada and the EU  
(based on the period 2010 -2016), while Chart 1.5 shows EU's trade in commercial services with 
Canada . For Canada , the available data show an overall deficit in trade in commercial services with 
the world between 2010 and 2016. A n overall surplus in global  trade in services can be observed 
for the EU during the same period . The statistics (from Eurostat) also depict a trade surplus with 
respect to EU's trade in commercial services with Canada (2010 -2016).  
26
17
16666532229Canada's imports from EU (%)
25
18
997543333327Canada's global imports (%)
23
18
11 765444333227Canada's global exports (%)
31
14
13108653226EU's imports from Canada (%)
23
22
97664433338EU's global imports (%)
26
16
156654443229EU's global exports (%)Total: €41 billion Total: €364 billion
Total: €1,711 billionTotal: €1,746 billionTotal: €359 billion
Total: €28 billion
WT/REG389/1  
 
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  Chart 1.3 Canada: Global trade in commercial services, 2010 -2016  
 
Note:  Data for 2016 is WTO's estimate . 
 No data recorded under the category "Manufacturing services on physical inputs owned by others"  
Source:  WTO Statistics database based on BPM6.  
Chart 1.4 EU: Global trade in commercial services, 2010 -2016  
 
Source:  Eurostat databas e based on BMP6.  
020406080100
2010 2012 2014 2016A. Canada's imports from world
2010 -2016
(Euro Billion)
Personal, cultural, and recreational services Other business services
Telecommunications, computer, and information services Charges for the use of intellectual property n.i.e.
Financial services Insurance and pension services
Construction Travel
Transport Maintenance and repair services n.i.e.
Manufacturing services on physical inputs owned by others020406080100
2010 2012 2014 2016B. Canada's exports to world
2010 -2016
(Euro Billion)
02004006008001,000
2010 2012 2014 2016A. EU's imports from world
2010 -2016
(Euro Billion)
Personal, cultural, and recreational services Other business services
Telecommunications, computer, and information services Charges for the use of intellectual property n.i.e.
Financial services Insurance and pension services
Construction Travel
Transport Maintenance and repair services n.i.e.
Manufacturing services on physical inputs owned by others02004006008001,000
2010 2012 2014 2016B. EU's exports to world
2010 -2016
(Euro Billion)WT/REG389/1  
 
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  Chart 1.5 EU: T rade in  commercial services with Canada, 2010 -2016  
 
Source:  Eurostat database based on BMP6.  
1.9.  Chart 1 .6 below depict s the EU's  foreign direct investment stocks and flows with the world 
and with Canada during 2013 -2016, while Chart 1.7 shows Canada's FDI global stocks and flows.  
FDI stocks , both inward and outward,  have grown steadily for the EU . While data on FDI stocks for 
the E U with the world show a net deficit (for the period 2013 -2016), an opposite picture – with a 
net surplus – is showed with respect to the evolution of Canada's stocks with the world (during the 
period 2014 -2016).  The development of FDI flows has been  less l inear during the period . As of 
2014 Canada is a net foreign direct investor in the EU.  
05101520
2010 2012 2014 2016A. EU's imports from Canada
2010 -2016
(Euro Billion)
Personal, cultural, and recreational services Other business services
Telecommunications, computer, and information services Charges for the use of intellectual property n.i.e.
Financial services Insurance and pension services
Construction Travel
Transport Maintenance and repair services n.i.e.
Manufacturing services on physical inputs owned by others05101520
2010 2012 2014 2016B. EU's exports to Canada
2010 -2016
(Euro Billion)WT/REG389/1  
 
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  Chart 1.6 EU: FDI stock and flow with world  and Canada , 2013 -2016  
 
Note:  Based on BPM6 . 
Source:  Eurostat . 
Chart 1.7 Canada : FDI  stock and flow with world, 2014 -2016  
 
Note:  Based on BPM6; Values in Canadian dollar were converted into Euro.  
Source:  Data provided by Canada . 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The framework for the Agreement is referenced  in the Strategic Partnership Agreement 
(SPA), which has been provisionally applied since 1 April 2017. The Agreement itself (CETA) was 
050100150200250300350
2013 2014 2015 2016EU FDI stock with Canada
2013 -2016
(€Billion ) 
Outward Inward
-20-10010203040
2013 2014 2015 2016EU FDI flow with Canada
2013 -2016
(€Billion) 
Outward Inward01,0002,0003,0004,0005,0006,0007,0008,000
2013 2014 2015 2016EU FDI stock with world
2013 -2016
(€Billion ) 
Outward Inward
0100200300400500600700800
2013 2014 2015 2016EU FDI flow with world
2013 -2016
(€Billion ) 
Outward Inward
020406080100120140160180200
2014 2015 2016Canada FDI stock with EU 
2014 -2016
(€Billion ) 
Outward Inward
0246810121416
2014 2015 2016Canada FDI flow with EU 
2014 -2016
(€Billion) 
Outward Inward0100200300400500600700800
2014 2015 2016Canada FDI stock with world
2014 -2016
(€Billion ) 
Outward Inward
01020304050607080
2014 2015 2016Canada FDI flow with world
2014 -2016
(€Billion ) 
Outward InwardWT/REG389/1  
 
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  signed on 30 October 201612 and notified to the WTO on 19 September 2017  under 
Article  XXIV:7(a) of GATT 1994 and Article  V:7(a)  of the GATS (see document WT/REG389/N/1 - 
S/C/N/896 ).  
2.2.  Article 30.7 governs the entry into force of the Agreement  and foresees its provisional 
application . On 16 May 2017 Canada ratified the Agreement. The provisional application of most of 
the Agreement13 started on  21 September 2017. The Agreement will be  fully implemented once all 
EU Member States ratify the Agreement according to their respective constitutional requirements.  
2.3.  The text of the Agreement, together with its annexes, is avai lable on the Parties' official  
websites:  
Canada : English:  http://international.gc.ca/trade -commerce/trade -agreements -accords -
commerciaux/agr -acc/ceta -aecg/text -texte/toc -tdm.aspx?lang=eng  
 
French: http://international.gc .ca/trade -commerce/trade -agreements -accords -
commerciaux/agr -acc/ceta -aecg/text -texte/toc -tdm.aspx?lang=fra  
 
EU:   English: http://data.consilium.europa.eu/doc/document/S T-10973 -2016-INIT/en/pdf  
 
French: http://data.consilium.europa.eu/doc/document/ST -10973 -2016-INIT/fr/pdf  
 
Spanish: http://data.consilium.europa.eu/doc/document/ST -10973 -2016-INIT/es/pdf  
 
2.4.  The Agreement is composed of 30 Chapters. A number of Annexes, including the Parties' 
tariff elimin ation schedules and the lists of investment and services reservations (non -conforming 
measures) also form part of the Agreement. A series of Protocols on  specific issues as well as a 
Joint interpretative instrument complement the text of the Agreement. Box 2.1 below summarizes 
the structure of the Agreement.  
Box 2.1 Structure of the Agreement  
Titles, Chapters  Title/description  
Preamble   
Chapter 1  General definitions and initial provisions  
Chapter 2  National treatment and market access for goods  
Chapter  3 Trade remedies  
Chapter 4  Technical barriers to trade  
Chapter 5  Sanitary and phytosanitary measures  
Chapter 6  Customs and trade facilitation  
Chapter 7  Subsidies  
Chapter 8  Investment  
Chapter 9  Cross -border trade in services  
Chapter 10  Temporary entry and stay of natural persons for business purposes  
Chapter 11  Mutual recognition of professional qualifications  
Chapter 12  Domestic regulation  
Chapter 13  Financial services  
Chapter 14  International maritime transport services  
Chapter 15  Telecommunications  
                                                
12 At the time of the signature of the Agreement, the EU and its Members States and Canada made a 
Joint Interpretative Instrument. It contains a preamble, and specific statements on the right to regulate; 
regulatory cooperation; p ublic services; social security or insurance; investment protection; trade and 
sustainable development; labour protection; environmental protection; review and stakeholder consultation; 
water; government procurement; benefits for small and medium sized ent erprises; and preferences for 
Canada's aboriginal peoples.  
13 As a condition to the provisional application of the Agreement, only some provisions of Chapter 8 
(investment) are applied - Articles 8.1 to 8.8, 8.13, 8.15 (with an exception of paragraph 3) and  Article 8.16. 
Moreover, some provisions of Chapter 13 (financial services) in so far as they concern portfolio investment, the 
protection of investment or the resolution of investment disputes shall not be provisionally applied. The same 
applies with resp ect to some provisions of Chapters 20 (Intellectual Property); 27 (Transparency); and 
28 (Exceptions). Moreover, the provisional application of Chapters 22 (Trade and sustainable development); 
23 (Trade and labour); and 24 (Trade and environment) shall res pect the allocation of competences between 
the EU and the EU Member States. The provisions contained in these three chapters are provisionally applied 
by Canada to the same extent as they are applied by the EU. Certain other specific disciplines govern the  
provisional application of the Agreement.  WT/REG389/1  
 
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  Titles, Chapters  Title/description  
Chapter 16  Electronic commerce  
Chapter 17  Competition policy  
Chapter 18  State enterprises, monopolies, and enterprises granted special rights or privileges  
Chapter 19  Government procurement  
Chapter 20  Intellectual property  
Chapter 21 Regulatory cooperation  
Chapter 22  Trade and sustainable development  
Chapter 23  Trade and labour  
Chapter 24  Trade and environment  
Chapter 25  Bilateral dialogues and cooperation  
Chapter 26  Administrative and institutional provisions  
Chapter 27  Transparency  
Chapter 28  Exceptions  
Chapter 29  Dispute settlement  
Chapter 30  Final provisions  
  
Protocol  on rules of origin and origin procedures  
Protocol  On the mutual acceptance of the results of conformity assessment  
Protocol  On the mutual recognition of the compliance and enforcement programme regarding 
good manufacturing practices for pharmaceutical products  
CETA investment and services Annexes  
Joint Interpretative Instrument on the comprehensive economic and trade agreement (CETA)  
Source:  WTO Secretariat based on the Agreement.  
2.5.  Article 1.4  states  the Parties ' decision to  establish a free trade area in conformity with Article 
XXIV of the GATT 1994 and Article V of the GATS.  
2.6.  Article 30.6 clarifies the relationship between the Agreeme nt and private rights. In particular, 
the Agreement shall not confer any right no r impose any obligation on persons other than the 
rights and obligations created between the Parties under public international law. The Agreement 
shall not be directly invoke able in the domestic legal systems of any of the Parties. Moreover, a 
Party shall not provide for a right of action under its domestic law against the other Party on the 
ground that a measure of the other Party is inconsistent with the Agreement.   
3  PROVISIO NS ON TRADE IN GOODS  
3.1.  Chapters 2 -7 of the Agreement specifically cover trade in goods, while other Chapters contain 
horizontal provisions that are also applicable to trade in goods.  
3.2.  A Committee on Trade in Goods is established to address the promotion of t rade in goods 
between the Parties (Article 2.13 ).  
3.3.  A Committee on Wines and Spirits and a Joint Sectoral Group on Pharmaceuticals are also 
established under the authority of the Committee on Trade in Goods (Article 26.2).  A Committee 
on Agriculture is also established to provide a forum for the Parties to discuss issues related to 
agricultural goods covered by the Agreement .14 
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.4.  The Parties agree to accord  national treatment to each other's' goods in accordance with 
Article III of GATT 1994 and its interpretative notes, which are incorporated into and made part of 
the Agreement  (Article 2.3 ). Canada's national treatment commitment does not apply to its exci se 
duties on absolute alcohol15 used in manufacturing under provisions of the  "Excise Act , 2001 
(Statu tes of Canada  2002, c. 22).  
3.5.  Except as otherwise provided in the Agreement, n either Party shall adopt or maintain any 
prohibition or restriction on the impo rtation of any good of the other Party, except in accordance 
                                                
14 The Parties also note the cooperation and exchange of information on agriculture issues under the 
annual Canada -EU Agriculture Dialogue, as established in letters exchanged on 14 July 2008.  
15 As listed under t ariff item 2207.10.90 in Canada's WTO Schedule of Concessions (Schedule V).  WT/REG389/1  
 
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  with Article XI of GATT  1994, which is incorporated into and made part of the Agreement . 
Article  2.11 also governs the adoption or maintenance of prohibition s or restriction s on the 
importation of a good from a third -party. In this case, discussions between the Parties are 
foreseen with a view to avoiding undue interference with or distortion of pricing, marketing or 
distribution arrangements in one of the Parties. The obligations relating to prohibition s and 
restrictions on the import ation of goods  does not apply to:  
a. Canadian excise duties on absolute alcohol used in manufacturing under the provisions 
of the Excise Act , 2001 (S.C. 2002, c. 22); and  
b. The importation of used vehicles into Canada tha t do not conform to its safety and 
environmental requirements.  
3.6.  The Agreement also contains provisions on goods re -entered after repair or alteration 
(Article  2.10) . 
3.7.  According to Article 2.5, a Party shall not refund, defer or suspend a customs duty paid or  
payable on a non -originating good imported into its territory if the good, or an identical, equivalent 
or similar substitute, is used as a material in the production of another good that is subsequently 
exported to the territory of the other Party under p referential tariff treatment pursuant to the 
Agreement. This restriction however does not apply to a Party's regime of tariff reduction, 
suspension or remission if the restriction, suspension or remission is not expressly conditioned on 
the exportation of a good. Moreover, the restriction on duty drawback, duty deferral and duty 
suspension programs does not apply during the first three years of implementation of the 
Agreement . Based on Article 30.7.3(d), the “entry into force” of the Agreement occurs once i t is 
applied (i.e. Sept. 21, 2017) . As a consequence , the three year delay noted in the text started on 
September 21, 2017 and the  prohibition only takes effect on the third anniversary of the 
Agreement's entering into force / provisional application (i.e.  September 21, 2020).   
3.8.  Article 2.7 contains a standstill provision. Nevertheless, a Party may modify a tariff outside 
the Agreement on a good not covered by the tariff preference programme; following a unilateral 
tariff reduction (up to the level establish ed in the Parties' Schedule); or if authorized by the 
Agreement or under the WTO Agreement. Canada retains its WTO right to apply special safeguards 
pursuant to the WTO Agreement on Agriculture, though the use of the special safeguard is limited 
to imports  not subject to tariff preference s and, in the case of imports subject to a tariff rate 
quota, to imports over the access commitment.  
3.9.  Temporary suspension of preferential tariff treatment is governed by Article 2.8 and may 
occur in situations of systematic  breaches of customs legislation, and systematic and unjustifiable 
refusal to cooperate with respect to the investigation of breaches of customs legislation. Such 
suspension involves notification and consultation with a view to achiev ing a mutually accepta ble 
resolution.  
3.10.   Under Article 2.9, t he Parties agree not to adopt or maintain a fee or charge on, or in 
connection with , import s of a good of the other Party that is not commensurate with the cost of 
services rendered or that represents an indirect protect ion to domestic goods or a taxation of 
imports for fiscal purposes, in accordance with Article VIII of the GATT 1994.  Neither Party shall 
increase any existing customs duty, or adopt any new customs duty16, on an originating good.  
3.1.2   Liberalization of trade an d tariff lines  
3.11.   Each Party shall reduce or eliminate its customs duties on goods originating in the other  
Party in accordance with the tariff elimination schedules in Annex 2 -A to the Agreement 
(Article  2.4).  
3.12.   Upon request by a Party, consultation may take place to consider accelerating and 
broadening the scope of the elimination of customs duties (paragraph 4 of Article 2.4).  
                                                
16 A Party may , however , raise a customs duty to the level established in its Schedu le to Annex 2 -A 
following a temporary unilateral reduction.  A Party may also raise a customs duty  on goods for which no tariff 
preference is claimed under the Agreement, or as authorized by the WTO Dispute Settlement Body or any 
agreement under the WTO Agreement.  WT/REG389/1  
 
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  3.13.   For a period of 10 years after the entry into force of the Agreement, the Parties shall 
exchange quarterly figures at the tariff lin e level for HS Chapters 1 through 97, on imports of 
goods from the other Party that are subject to MFN  applied and preferential tariffs under the 
Agreement. Unless the Parties decide otherwise, this period will be renewed for five years and may 
be subsequently extended by them (Article 30.3).  
3.1.3   Liberalization schedule  
3.14.   Annex 2 -A to the Agreement states the staging categories applicable to th e Parties and 
applies to the Parties' Schedules that are attached to the Annex. Annex 2 -A also contains the 
Parties' tariff rate quota commitments .17 
3.15.   According to the Agreement, the Parties shall eliminate all customs duties on originating 
goods, of Chapter s 1 through 97 of the Harmonized System (HS) that provide for a most -
favoured -nation (MFN) rate of customs duty, imported from the other Party upon the date of entry 
into force of the Agreement , except as otherwise provided in the Annex . Annex 2 -A provides  for 
seven staging categories for which the following disciplines apply to the elimination of customs 
duties:  
 Customs duties for goods in category "A" , applying to some products imported into 
Canada and subject to TRQs,  were eliminated on the date of entry  into force of the 
Agreement;  
 
 Category "B" foresees the elimination of customs duties in four equal stages from the 
entry into force of the Agreement. Duty -free treatment shall be granted from 1  January 
2020 onward;  
 
 Category "C" foresees the elimination  of customs duties in six equal stages from the 
entry into force of the Agreement. Duty -free treatment shall be granted from 1  January 
2022 onward;  
 
 Category "D" foresees the elimination of customs duties in eight equal stages from the 
entry into force of  the Agreement. Duty -free treatment shall be granted from 1  January 
2024 onward;  
 
 Category "S" foresees the elimination of customs duties in three equal stages from the 
beginning of the fifth anniversary of the date of entry into force of the Agreement 
(21 September 2022). Duty -free treatment shal l be granted from 1  January 2024  
onward ;  
 
 With respect to products classified in Category "AV0+EP", ad valorem  component of the 
customs duties shall be eliminated upon the date of entry into force of the Agreemen t. 
The tariff elimination however only appl ies to the ad valorem  duty. The specific duty 
resulting from the entry price system applicable for these originating go ods shall 
however be maintained;   
 
 Customs duties for goods in category "E" are exempted from tariff elimination . 
 
3.16.   The base rates of customs duty set out in both Parties' Schedules reflect their MFN rates in 
effect on 9 June 2009.  
3.1.3.1   Canada  
3.17.   Canada's applied tariff in 2017  consisted of 7,304  lines at t he eight -digit level ( domestic 
nomenclature applied in accordance with HS 2017). 96% of the tariff rates were ad valorem  and 
258 lines had non -ad valorem  tariffs.18  
                                                
17 See section 3. 2 below.  
18 Seventy -eight lines with specific duties, 42 with compound dut ies, 133 with mixed duties, and 6 lines 
with no rate as they reflect country -specific TRQs resulting from FTAs with Peru and Honduras.  WT/REG389/1  
 
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  3.18.   Table 3.1 shows tariff elimination commitments by Can ada under the Agreement. In 2017 , 
5,232  lines were duty free  on an MFN basis, representing 71.6% of Canada's total tariff, 
corresponding to 75.8% of its imports from the EU  during 2014 -2016. Immediately following the 
entry into force of the Agreement, an additional 1,909  lines ( 26.1% of Canada's tariff) also 
became  duty-free for imports from the EU . This resulted in 97.7% of Canada's tariff becoming duty 
free, corresponding to 90% of Canada's total imports from the EU  during the period 2014 -2016. 
Further tariff lines will become duty free in 2020,  2021,  2022, and 20 24, which corresponds to 
Canada's full implementation of its tariff elimination programme. 106 tariff lines will remain 
dutiable  once the Agreement is implemented , representing 1.5% of Canada's tariff and 
corresponding to negligible imports from the EU  during 2014 -2016.  
Table 3.1 Canada  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Canada's 
tariff 
schedule  Value of Canada's 
imports from EU  
(2014 -2016) a 
Euro million  % of Canada's total 
imports from  
EU 
(2014 -2016)  
2017 (MFN)  5,232  71.6 30,326.6  75.8 
2017 1,909  26.1 5,667.9  14.2 
2020 20 0.3 267.7  0.7 
2021 2 0.0 5.8 0.0 
2022 20 0.3 40.4 0.1 
2024 15 0.2 3,723.5  9.3 
Remain dutiable  106b 1.5 1.4 0.0 
TOTAL  7,304  100.0  40,033.3  100.0  
a Import coverage is from HS chapters 1 -97. 
b 6 tariff lines ( 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70, 1702.90.81 ) which are 
only applicable for Canada -Peru/Honduras FTA are counted as dutiable. These tariff lines are not 
part of the EU -Canada FTA. These tariff lines are included in the calculation to count the total 
number of lines provided in Canada's tariff.   
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
100 tariff lines under the excluded category reflect the ir MFN 20 17 duties. This process is in 
accordance with the methodology applied by the Secretariat across all FPs where it aims to assess 
the margins of preference in reference to the MFN duties as of entry into force.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Canada.  
 
3.19.   Table 3.2 shows Canada's tariff elimination, by HS section. The 106 lines excluded from 
tariff elimination once implementation is completed are found in HS Sections I (live animals), III 
(animal or vegetable fats and oils) , IV (prepared food) , and VI (chemical products) . These Sections 
correspond to HS Chapters 1, 2, 4, 15 -19, 21 -23 and 35. Average tariffs on the lines remaining 
subject to duties range from 199.3% for HS 2 (meat and edible meat offal) to 256% for HS 22 
(beverages, spirits and vinegar)  and are equivalent to their corresponding MFN average duties  as 
depicted in Chart 3.1 .  
Table 3.2 Canada: Tariff elimination under the Agreement, by HS Section  
HS 
Section MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2017  Number of duty -free lines under the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  2020  2021  2022  2024  
I 34.4 451 308 73  1   69 227.7  
II 3.1 443 331 102 4 1 5    
III 7.0 61 33 26     2 218.0  
IV 16.3 547 193 319    2 33a 228.9  
V 0.4 158 150 8       WT/REG389/1  
 
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  HS 
Section MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2017  Number of duty -free lines under the 
Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  2020  2021  2022  2024  
VI 1.2 935 800 133     2 * 
VII 1.7 262 199 63       
VIII 3.1 98 67 31       
IX 2.0 157 102 55       
X 0.0 141 141        
XI 4.9 1,198  832 366       
XII 9.7 100 34 66       
XIII 2.4 176 109 67       
XIV 1.7 60 45 15       
XV 1.3 669 534 135       
XVI 0.7 1,056  926 130       
XVII 5.3 258 108 106 16  15 13   
XVIII 1.6 290 207 83       
XIX 3.8 29 7 22       
XX 4.5 206 99 107       
XXI 1.4 9 7 2       
Total 5.4 7,304  5,232  1,909  20 2 20 15 106 228.0  
* All the remaining dutiable lines corresponding to the HS section are having specific duties only.  
a 6 tariff lines ( 1701.91.10, 1701.99.10, 1702.90.21, 1702.90.61, 1702.90.70, 1702.90.81 ) which are 
only applicable for Canada -Peru/Honduras FTAs are also included here.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; For the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are incl uded.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Canada.  
Chart 3.1 Canada: Average of dutiable rates on excluded lines, by HS Chapter  
 
Note:  Based on the HS 2017 nomenclature  
 Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.   
Source:  WTO estimates based on data provided by Canada.  
050100150200250300
01 02 04 15 16 18 19 21 22 23 35Average Duty Rate
HS Chapters Preferential MFN
*
* Tariff lines subject to 'Specific ' duty rates only.WT/REG389/1  
 
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  3.1.3.2   The E uropean Union 
3.20.   The EU 's applied  tariff in 2017  consisted of 9,528  lines at t he HS eight -digit level (HS  2017). 
89% of the tariff rates were ad valorem  and 1,021  lines had non -ad valorem  tariffs.19  
3.21.   With respect to some products20 classified in Ca tegory D  (see above) , the progressive  duty 
elimination cannot result in a customs duty greater than the effective intervention price or a 
fraction of the support price as calculat ed and identified in paragraph 3.4  of Annex 2 -A to the 
Agreement . 
3.22.   Table 3.3 shows tariff elimination commitments by the EU under the Agreement. In 2017, 
2,467 lines were duty free on an MFN basis, representing 25.9% of the EU's total tariff, 
corresponding to 73.6% of its imports from Canada during 2014 -2016. Immediately following the 
entry into force of the Agreement, an additional 6,777 lines (71.1% of the EU's tariff) also became 
duty-free for imports from Canada. This resulted in 97% of the EU's tariff becoming duty free, 
corresponding to 96.1% of the EU's total import s from Canada during the period 2014 -2016. 
Further tariff lines will become duty free in 2020, 2022, and 2024, which corresponds to the EU's 
full implementation of its tariff elimination programme. At the end of implementation 127 tariff 
lines will remain dutiable, representing 1.3% of the EU's tariff and corresponding to a negligible 
part of the EU's total imports from Canada.  
Table 3.3 EU 
Tariff elimination commitments under the Agreement and corresponding a verage trade  
Duty phase -out 
period  Number 
of lines  % of total lines 
in EU's tariff 
schedule  Value of EU's imports 
from Canada  
(2014 -2016)a 
Euro million  % of EU's total 
imports from  
Canada  
(2014 -2016)  
2017 (MFN)  2,467  25.9 7,798.7  73.6 
2017 6,777  71.1 2,388.1  22.5 
2020 32 0.3 27.8 0.3 
2022 43 0.5 9.7 0.1 
2024 82 0.9 367.1  3.5 
Remain dutiable  127b 1.3 3.7 0.0 
Total  9,528  100.0  10,595.2  100.0  
a Import coverage is from HS chapters 1 -97. 
b 29 tariff lines subject to entry price (EP) regulations are counted as remaining dutiable ( 0702.00.00, 
0707.00.05, 0709.91.00, 0709.93.10, 0805.10.22, 0805.10.24, 0805.10.28, 0805.21.10, 
0805.21.90, 0805.22.00, 0805.29.00, 0805.50.10, 0806.10.10, 0808.10.80, 0808.30.90, 
0809.10.00, 0809.21.00, 0809.29.00, 0809.30.1 0, 0809.30.90, 0809.40.05, 2009.61.10, 
2009.69.19, 2009.69.51, 2009.69.59, 2204.30.92, 2204.30.94, 2204.30.96, 2204.30.98 ). 
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific rates are ex cluded and the ad valorem  parts of alternate rates are included.  
 100 tariff lines under the excluded category reflect the MFN 2017 duties. This process is in 
accordance with the methodology applied by the Secretariat across all FPs where it aims to assess  
the margins of preference in reference to the MFN duties as of entry into force.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by EU.  
 
3.23.   Table 3.4 shows the EU's tariff elimination, by HS section. The 127 lines excluded from tariff 
elimination once implementation is completed are found in HS Sections I (live animals), II 
(vegetables subject to the "entry price system" only ), and IV (prepared food) . These correspond to 
HS Chapters 1, 2, 4, 7, 8 , 20 and 22 , with final avera ge preferential and MFN tariffs at  5.1% for 
Chapter 20 (preparations of vegetables, fruit, nuts or other parts of plants) and 11.9%  for 
                                                
19 635 lines were composed of specific duties, 254 of compound duties, 100 of mixed duties, and 32 of 
other duties.  
20 The products falling under the following HS tariff lines: 1001.11.00; 1001.19.00; high quality 
common wheat of items ex 1001.99.00; 1002.10.00; and 1002.90.00.  WT/REG389/1  
 
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  Chapter  2 (meat and edible meat offal)  as depicted in Chart 3.2. Tariff lines in the other HS 
Chapters are subject to sp ecific entry prices.  
Table 3.4 EU: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2017  Number of duty -free lines under 
the Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  2020  2022  2024  
I 9.6 956 106 704 13 14 22 97 11.9 
II 5.5 554 150 367   16 21 * 
III 5.9 129 23 106      
IV 14.1 867 95 729  9 25 9 5.1 
V 0.8 234 170 64      
VI 4.3 1,220  315 905      
VII 4.6 301 64 237      
VIII 3.1 130 45 85      
IX 2.2 234 118 116      
X 0.0 195 195       
XI 8.0 1,147  40 1,107       
XII 8.2 106 2 104      
XIII 4.0 234 33 201      
XIV 0.6 56 45 11      
XV 1.8 953 499 454      
XVI 2.1 1,370  348 1,022       
XVII 5.2 286 31 197 19 20 19   
XVIII 2.1 313 120 193      
XIX 2.2 22 4 18      
XX 2.6 214 57 157      
XXI 0.0 7 7       
Total  5.0 9,528  2,467  6,777  32 43 82 127 11.6 
* Tariff lines subject to ' entry price (EP)' system.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by EU . WT/REG389/1  
 
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  Chart 3.2 EU: Average of dutiable rates on excluded lines, by HS Chapter  
 
Note:  Based on the HS 2017 nomenclature . 
 Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
Source:  WTO estimates based on data provided by EU.  
 
3.2  Tariff rate  quotas  
3.24.   Some of the Parties ' market access commitments take the form of tariff rate quotas (TRQs) 
identified in Annex 2 -A to the Agreement .  
3.25.   The TRQ commitments  of the EU cover processed shrimp; frozen cod; low and medium 
quality common wheat ( all subject to transitional TRQs  that will expire after 7 years f rom the entry 
into force of the Agreement ); and sweetcorn; bison; fresh or chilled beef and veal; frozen or other 
beef and veal; and pork . Commitments are also made by the EU with respect to high quality  fresh, 
chilled and frozen meat of bovine animals when such goods are exported from Canada through the 
EU's WTO TRQs. The TRQ commitments of Canada cover cheese and industrial cheese. Moreover 
part of Canada's  WTO TRQ commitments for cheese21 shall be reall ocated to the EU.  Annex 2 to 
the factual presentation summarizes the main features of the Parties' TRQ commitments under the 
Agreement.  
3.26.   For the administration in Year 1 of each TRQ established under the Agreement, the Parties 
shall calculate the quota volume by discounting the prorated volume corresponding to the period  
running  between January 1 and the date of entry into force of the Agreement. This calculated in -
quota quantity was made available on the date the Agreement enters into force.   
3.27.   For the EU TRQs, the quantities on year 1 were published in Regulations (EU) 2017/1585  
(beef and pork)22, 2017/1586 (wheat)23 and 2017/1772 (other TRQs) .24 For Canada, information 
                                                
21 Corresponding to 800 tonnes of Canada's 20,411,866 kilogram WTO TRQ for cheese.  
22 http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32017R1585&rid=1 . See also 
https://ec.europa.eu/agriculture/market -observatory/meat_en  
23 http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?ur i=uriserv:OJ.L_.2017.241.01.0012.01.ENG . 
See also https://ec.europa.eu/agriculture/markets_en  
24 http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=uriserv:OJ.L_.2017.251.01.0013.01.ENG . 
See also for bison and sweetcorn 
http://ec.europa.eu/taxat ion_customs/dds2/taric/quota_consultation.jsp?Lang=en . 
02468101214
01 02 04 07 08 20 22Average Duty Rate
HS Chapters Preferential MFN
**                        *                       **
* Tariff lines subject to EP only. WT/REG389/1  
 
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  related to the CETA Cheese TRQ25; the CETA Industrial Cheese  TRQ26; and the WTO Cheese TRQ27 
are available online.  The p ro-rated quantities for 2017 for agricultural TRQs are as follows: 
Common Wheat 27,778 tonnes, Fresh and chilled beef 2,584 tonnes, frozen beef 695 tonnes, pork 
5014 tonnes, bison 841 tonnes, sweetcorn 374 tonnes,  Canadian cheese  quota 745,299 kg and 
Canadian industrial  cheese quota 79,085 k .g.  
3.28.   Annex 2 -A to the Agreement  also contains a mechanism to address under -filling of EU TRQs 
for fresh and frozen beef, pork, and Canada's TRQ for industrial cheese and premium cheese as 
well as a review clause to assess , with a view to adjusting  the operation of the relevant TRQ 
administration system at the mid -term and at the end of the phase -in period of any of the se TRQs, 
or whenever it is deemed necessary. Such a review shall also include the allocation method 
allowing for new entrants, as well as the consequences of TRQ administration modalities agree d 
with third -parties for the same goods in other trade negotiations involving the Parties. Annex 2 -A 
to the Agreeme nt identifies conversion factors to be utilized to convert Product Weight to Carcass 
Weight Equivalent.  
3.29.   Annex 2 -B to the Agreement contains a Declaration by the Parties concerning TRQ 
administration. Its Section A concerns the EU's administration of beef, veal, and pork TRQs under 
the Agreement and covers the structure of the import licensing system (quarterly sub -periods with 
carryover between periods for unused TRQ quantities; application period for import licences; and 
validity of licences); eligibility criteria; and securities (securities tied to import licence applications; 
transfer of licence and corresponding security; return of licence and corresponding security; and 
release of security and release of full security when 95% of imports occur). Section  B concerns 
Canada's administration for cheese TRQs under the Agreement an d covers the structure of the 
import licensing system; eligibility criteria; and the use of import allocations and import permits.  
3.30.   In addition to the TRQ commitments by the Parties additional commitments are made in the 
form of ori gin quotas .28 
3.3  Rules of origin  
3.31.   The provisions on rules of origin are contained in a Protocol on Rules of Origin and O rigin 
Procedures. Section A of the Protocol contains general provisions, essentially defini tions, while 
Section B contains  the disciplines applicable for the determination of the origin for the Agreement's 
implementation purposes .29 Seven Annexes to the  Protocol form an integral part  of it. 
3.32.   A product qualifies as originating  when  it:  
a. is wholly obtained in a Party as defined in Article 4 of the Protocol ; 
b. is produced exclusively from originating materials; or  
c. has undergone sufficient production as defined in Article 5 of the Protocol and in Annex 
5 to the Protocol, which contains the pro duct-specific rules of origin.  
3.33.   Annex 5 to the Protocol contains product specific rules of origin and outlines the conditions 
that need to be fulfilled for products  that are not wholly obtained to be considered to have 
undergone sufficient production  (Artic le 5 of the Protocol) and to qualify as originating . In a limited 
number of cases, however, the only condition to be met in the context of the determination of the 
                                                
25 http://www.international.gc.ca/controls -controles/prod/agri/dairy -laitiers/no tices-
avis/904.aspx?lang=eng . 
26 http://www.international.gc.ca/controls -controles/prod/agri/dairy -laitiers/notices -
avis/905.aspx?lang=eng . 
27 http://www.international. gc.ca/controls -controles/prod/agri/dairy -laitiers/notices -
avis/906.aspx?lang=eng . 
28 See below, the section on rules of origin.  
29 Annex 4 to the Protocol clarifies the non -applicability of the Protocol and its impact on Ceuta and 
Melilla, while Annex 7 to t he Agreement contains joint declarations concerning the Principality of Andorra and 
the Republic of San Marino.  WT/REG389/1  
 
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  origin is to be wholly obtained in a Party .30 A product can nevertheless obtain originating s tatus 
provided that the value of non -originating materials used in the product’s production does not 
exceed a threshold. This threshold varies by product, but in most cases it is 50% of the 
transactional value (or ex -works price) of the product .31 The defin itions relevant to determining if a 
product satisfies a rule of origin with a value requirement are set out in Article 1 of Section A.  
Annex 5 sets out the product -specific rules of origin.  For some products  a specific manufacturing 
or processing operation  can confer  origin.32  
3.34.   A de minimis  tolerance rule of 10% of the transaction value or ex -works price of the product  
is applicable to non -originating materials used in the production of a product . As an exception to 
the general tolerance rule, tolerance for textile s and apparel products33 shall be determined in 
accordance with the special rules set out in Annex 1 to the Protocol.  
3.35.   Articles 7 through 15, and 17 of the Protocol  contains  disciplines on insufficient production; 
useable units of classification; pac kaging and packing materials and containers; accounting 
segregation of fungible materials or products; accessories, spare parts and tools; sets; neutral 
elements; transport through a third -party; returned originating products, and calculation of net 
costs. Specific calculation rules applicable to sugar  assist in the determination of products 
containing sugar  and are set out in Article 16 of the Protocol . 
3.36.   Section C o f the Protocol has specific disciplines on proof of origin34; obligations regarding 
exports; v alidity of the origin declaration; import obligations; proof-related to transport through a 
third-party; importation by instalments; exemptions from origin declarations; supporting 
documents; preservations of records; discrepancies and formal errors; coope ration, origin 
verification; review and appeal; penalties; confidentiality; and advance rulings relating to origin.  
3.37.   Accumulation of origin is applicable as governed by the provisions of Article 3 of the 
Protocol, complemented by Annex 3 to the Protocol. A product  that originates in a Party is 
considered originating in the other Party when used as a material in the production of a product in 
that other Party. An exporter may take into account production35 carried out on a non -originating 
material in the other  Party for the purposes of determining the originating status of a product . 
Moreover, the Agreement also includes a forward -looking provision under which the Parties can 
agree to allow for accumulation with third -parties under certain conditions . If each Party has a free 
trade agreement with the same third -party, a material of that third -party may be taken into 
consideration by the exporter when determining whether a product is originating under the 
Agreement (paragraph 8 of Article 3 of the Proto col). This specific provision shall apply only if 
equivalent provisions are in force between each Party and the third -party and upon agreement by 
the Parties on the applicable conditions. Furthermore, if each Party has a free trade agreement 
with the Unite d States, and upon agreement by both Parties on the applicable conditions, each 
Party shall apply the above -mentioned provision (paragraph 8) when determining whether some 
products36, specified in Article 3 of the Protocol, is originating under the Agreemen t. Accumulation 
                                                
30 This is particularly the case for goods classified under HS Chapters 1 and some goods classified under 
HS Chapters 2 -4, 6-8, 10, 11, 15, and 24. 
31 This is particularly the case for goods classified under HS Chapters 17 -18 (some sugar products); 
28-29, 31 -33, and 35 -39 (some chemical products, plastics and rubber); 50 -60, and 62 -63 (some textiles and 
textile products); 70 -71, 73, 76, and 82 -83 (some metals); and 84 -96 (machinery, vehicles, instruments and 
miscellaneous manufactured articles).  
32 This is the case particularly for chemical and textiles products.  
33 Applicable to textile and apparel products of HS Chapters 50 through 63.  
34 The differe nt linguistic versions of the text of the origin declaration are set out in Annex 2 to the 
Protocol.  
35 Provided it is not considered insufficient production.  
36 This provision is applicable when determining the origin of products falling under HS Chapter 2 (meat 
and edible meat offal); HS Chapter 11 (products of the milling industry; malt; starches; inulin; wheat gluten); 
HS heading 16.01 through 16.03 (some preparations of meat, or fish or of crustaceans, molluscs or other 
aquatic invertebrates); HS Chapter  19 (preparations of cereals, flour, starch or milk; pastrycooks' products); 
HS headings 20.02 or 20.03 (tomatoes prepared or preserved otherwise than by vinegar or acetic acid; or 
mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid); or HS subheading 
3505.10 (dextrins and other modified starches).  WT/REG389/1  
 
- 22 - 
 
  with the United States is also applicable under certain conditions37 in the specific context of the 
annual quota allocation for vehicles exported from Canada to the EU.  
3.38.   For specific categories of products, the Parties also agreed to establish a number of origin 
quotas to allow for limited quantities of some products to receive preferential tariff treatment . 
Under these provisions, certain products that do not satisfy the product -specific rules of origin 
under Annex 5 to the Protocol m ay nevertheless qualify as originating under alternative product -
specific rules of origin as specified in Annex 5 -A to the Protocol (origin quotas and alternatives to 
the product -specific rules of origin). The origin quota granted by the EU cover s high-sugar 
containing products; sugar confectionery and chocolate preparations; processed foods; dog and 
cat food; fish and seafood; textiles; apparel; and vehicles. The origin quota g ranted by Canada 
covers textiles  and apparel.  In order to receive preferential t reatment, the se products must meet 
the product description in Annex 5 -A to the Protocol, and must undergo sufficient production to 
satisfy the applicable product -specific rule of origin detailed for each origin quota (also in 
Annex  5-A). The main features of the Parties' origin quota commitments  are summarized in 
Annex  3 to the factual presentation.   
3.39.   With respect to rules of origin for textiles and apparel, Annex 6 to the Protocol contains a 
joint declaration by the Parties. It states the principle that tra de in textiles and apparel between 
the Parties is based on the principle that double transformation confers origin, (as reflected in 
Annex 5 to the Protocol on product -specific rules of origin).38  
3.40.   A Joint Customs Cooperation Committee (JCCC)  is established  under Article 34 of the 
Protocol . The JCCC shall endeavour to decide upon the uniform administration of the rules o f 
origin, including tariff classification and valuation matters relating to the Protocol; technical, 
interpretative, or administrative matte rs relating to the Protocol; or the priorities for origin 
verification and other matters arising from origin verification.  
3.4  Export duties and charges, and quantitative restrictions  
3.41.   Except as otherwise provided in the Agreement, n either Party shall adopt or maintain any 
prohibition or restriction on the export of any good destined to the other Party, except in 
accordance  with Art icle XI of GATT  1994, which is incorporated into and made part of the 
Agreement . Article 2.11 also gover ns the adoption or maintenance of prohibition s or restriction s on 
export s of a good to a third -party . In this case, discussions between the Parties are foreseen with 
a view to avoiding undue interference with or distortion of pricing, marketing or distribu tion 
arrangements in one of the Parties. The obligations relating to the prohibition s and restrictions on 
the exportation of goods do not apply to:  
a. The export of logs of all species; and  
b. The export of unprocessed fish pursuant to Newfoundland and Labrador' s applicable 
legislation (for a period of three years following the entry into force of the Agreement) .  
3.42.   A Party may not adopt or maintain duties, taxes, or other charges imposed on, or in 
connection with, the export of a good to the other Party , or any in ternal taxes or fees and charges 
on a good exported to the other Party, in excess of those that would be imposed on th e goods 
when destined for internal sale (Article 2.6 ). 
3.43.   The Parties agree not to adopt or maintain a fee or charge on or in connection with  
exportation of a good of the other Party that is not commensurate with the cost of services 
rendered or that represents an indirect protection to domestic goods or a taxation of exports for 
fiscal purposes, in accordance with Article VIII of the GATT 1994  (Article 2.9).  
                                                
37 See Note 1 of Section D (vehicles), in Annex 5 -A to the Protocol on rules of origin and origin 
procedures (origin quotas and alternatives to the product -specific rules of orig in in Annex 5).  
38 Nevertheless  for a number of reasons, including the absence of a negative cumulative effect on the 
producers of the EU, the Parties agree to derogate from the above -mentioned principle by providing for limited, 
reciprocal origin quotas fo r textiles and apparel. These origin quotas are expressed in terms of volumes 
classified by product category, and includes considering dyeing as equivalent to printing, for a limited and 
clearly identified range of product categories. The Parties further a ffirm that these origin quotas, which are 
exceptional, will be applied in strict adherence to the Protocol.  WT/REG389/1  
 
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  3.5  Regulatory provisions on trade in goods  
3.44.   The Agreement contains regulatory provisions on standards, trade remedies , subsidies and 
state aide, and customs procedures, which include regulatory disciplines. Chapter 21 covers 
regulatory cooperat ion, with commitments by the Parties that go beyond trade in goods .39 
Moreover a Joint Interpretative Instrument is also attached to the Agreement .40  
3.5.1   Standards  
3.45.   Chapters 4 and 5  cover technical barriers to trade (TBT) and sanitary and phytosanitary 
measures (SPS) , respectively . 
3.5.1.1   Sanitary and phytosanitary measures  
3.46.   The rules governing sanitary and phytosanitary m easures (SPS) are contained in C hapter 5 . 
One of the objectives is to further the implementation of the WTO SPS Agreement. In that context, 
the Parties affirm their rights and obligations under the WTO SPS Agreement (Article 5.4) . 
3.47.   Chapter 5 contains provisions on the adaptation to regional conditions  (Article 5.5)  with 
respect to animals and plants, and their product s, including the recognition  of the concept of 
zoning that the y have agreed to apply to the diseases listed in Annex 5 -B to the Agreement . 
Additionally, principles and guidelines to recogni ze regional conditions shall include those listed in 
Annex 5 -C to the Agreement . 
3.48.   Regarding equivalence of SPS measures (Article 5.6), the agreement sets out the areas for 
which the importing party recognises the SPS measure of the exporting Party as equivalent to its 
own, and sets out the associated special conditions, as  required  (Annex 5 -E). Section B of 
Annex  5-E allows Parties to agree at a later stage on the recognition of equivalence for 
phytosanitary measures. Annex 5 -D sets out guidelines to maintain equivalence and allows Parties 
to agree at a later stage for prin ciples and guidelines to determine and recognize the equivalence.  
3.49.   According to Article 5.7, the importing Party shall make available its general SPS import 
requirements for all commodities. However, if the Parties jointly identify a commodity as a priority , 
the importing Party shall establish specific SPS import requirements for that commodity, unless 
the Parties decide otherwise. Article 5.7 also sets out disciplines if a Party maintai ns a list of 
authorised establishments or facilities for the import of a commodity with conditions an d 
procedures which are set out in Annex 5 -F to the Agreement. Furthermore, this Article stipulates 
that a Party shall normally accept a consignment of a regu lated commodity without preclearance of 
the commodity on a consignment basis, unless the Parties decide otherwise. This article also 
contains a procedure on the specific import requirements for plant health which should be followed 
by the Parties as set ou t in Annex 5 -G. 
3.50.   Chapter 5 also contains provisions  on transparency  and on audit and verification  where a 
Party shall bear its own costs associated with the audit or verification. If the Parties decide on  
principles and guidelines to conduct an audit or ver ification , they shall be included in Annex 5 -H to 
the Agreement .41  
3.51.   The Parties agree on provisions with respect to export certification (Article 5.9). Annex 5 -I 
of the Agreement includes a model attestation for health certificates for animals and animal 
products, and sets out principles and guidelines for export certification, including electronic 
certification, withdrawal or replacement of certificates, language regimes and model attestations.  
3.52.   Chapter 5 also contains provisions on import checks and fees ( Article 5.10), which specify 
that a party may collect fees for the costs incurred to conduct frontier checks, which should not 
exceed the recovery of the costs.  Annex 5 -J to the Agreement sets out principles and guidelines 
                                                
39 See Section 5.10.6 below.  
40 Ibid. 
41 The principles and guidelines to conduct an audit or verification may be subject to further discussions 
by the  Joint Management Committee for Sanitary and Phytosanitary Measures and once agreed be listed in 
Annex 5 -H. WT/REG389/1  
 
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  for import checks and allows for Parties to set principles and guidelines for fees, specifically related 
to the frequencies of checks . 
3.53.   Provisions  on notification and information exchange are contained in Article 5.11 . 
Article  5.12 governs technical consultations between the Parties on significant concern s that may 
exist with respect to food safety, plant health, or animal health, or an SPS measure that the other 
Party has proposed or implemented.  
3.54.   When Parties take e mergency SPS measures  they are subject to the provisions contained in 
Article 5.13.  
3.55.   A Joint Management Committee for Sanitary and Phytosanitary Measures is established to 
monitor the implementation of Chapter 5 (Article 5.14 ). According to the obligations set out 
regarding the entry into force of the Agreement, Canada and th e EU have established contact 
points to coordinate the Joint Management Committee's agenda and to facilitate communication on 
SPS matters.   
3.5.1.2   Technical barriers to trade  
3.56.   The rules governing technical barriers to trade ( TBT) are contained in C hapter 4 . A Prot ocol 
on the Mutual Acceptance of the Results of C onformity Assessment also contains relevant 
TBT-related disciplines.  Chapter 4 builds on the provisions of the WTO TBT agreement.  
3.57.   Chapter 4  applies to the preparation, adoption, and application of technical regulations, 
standards, and conformity assessment procedures that may affect trade in goods between the 
Parties. Most disciplines contained in the WTO TBT agreement are incorporated into the 
Agreement .42 
3.58.   The strengthening of the Parties' cooperation in the areas of technical regulations, 
standards, metrology, conformity assessment procedures, market surveillance or monitoring and 
enforcement activities in order to facilitate trade between the Parties is covered by Article 4.3 but 
also refers to Chapter 21 (R egulatory Cooperation).  
3.59.   Cooperation on technical regulations is addressed in Article 4.4, including in the context of a 
request by a Party to have its technical regulation considered as equivalent  or similar in scope  by 
the other Party to its own regulatio n. However, the Agreement does not contain provisions on 
mandatory recognition of technical regulations.  
3.60.   The Parties shall, as foreseen in Article 4. 5, observe the Protocol on the Mutual Acceptance 
of the Results of Conformity A ssessment (attached to the Agree ment), and the Protocol on the 
Mutual Recognition of the Compliance and Enforcement P rogramme regardi ng good Manufacturing 
Practices for P harmaceutical products (also attached to the Agreement).  
3.61.   The Agreement does not require the harmonization, alignment, compatibility or 
approximation of standards, technical regulations and/or conformity assessment procedures 
between the Parties.  
3.62.   TBT-specific transparency provisions are contained in Article 4.6.   
3.63.   Annex 4 -A to the Agreement contains the Parties' commitments with respect to cooperation 
in the field of motor vehicle regulations . 
3.64.   A Protocol on the Mutual Acceptance of the Results of Conformity A ssessment is attached to 
the Agreement and forms an integral part of it.  It complements Chapter 4 on TBT.  The Protocol  
does not apply to, inter alia , SPS measures;  to purchasing specifications prepared by a 
governmental body for production or consum ption requirements of that body;  or to agricultural 
                                                
42 The following provisions of the WTO TBT agreements are incorporated: Articles 2 through 9. The 
incorporation of Article 6 does not limit a Party's  rights or obligations under the Protocol on the Mutual 
Acceptance of the Results of Conformity Assessment, and the Protocol on the Good Manufacturing Practices for 
Pharmaceutical Products. Annexes 1 and 3 to the WTO TBT agreement are also incorporated.  WT/REG389/1  
 
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  goods. While the Protocol creates a framework for both Parties ' businesses to facilitate bilateral 
trade in certain categories of products identified in Annex 1 to the Protocol43, it does not require 
the recognition or acceptance by a Party that the other Party's technical regulations are equivalent 
to its own.  Howeve r, when conformity assessment bodies esta blished in one Party are recogniz ed 
by the other Party, according to Article 3 of the  Protocol, the results of conformity assessment 
activities performed by th ese bodies must then be accepted by the Party (Article 9  of the Protocol).  
The Protocol does not limit the ability of a Party to prepare, adopt, apply or amend conformity 
assessment procedures in accordance with Article 5 of the WTO TBT Agreement. It nevertheless 
contains disciplines on recognition , accreditati on, and designation of conformity assessment 
bodies, as well as objections and challenges to such designations; withdrawals of conformity 
assessment bodies, acceptance of the results of conformity assessment  by recogniz ed conformity 
assessment  bodies , as w ell as by in -house bodies established in Canada ; market surveillance, 
enforcement and safeguards; recognition of accreditation bodies, challenges to, and cessation of 
such recognition; recognition of accreditation bodies in telecommunications and electroma gnetic 
compatibility; and communication through contact points on matters arising under the Protocol. 
The Parties further agree that a conformity assessment body which had been designated under the 
Mutual Recognition Agreement between the EU and Canada (do ne at London on 14 May 1 998) is 
automatically a recogniz ed conformity assessment body under the Protocol. The Committee on 
trade in goods, established under Article 26.2.1(a) is mandated to manage the implementation of 
the Protocol.   
3.65.   The Agreement a lso con tains a Protocol on the Mutual Recognition of the Compliance and 
Enforcement Programme regarding Good Manufacturing Practices (GMP) for Pharmaceutical 
Products. It replaces and updated the corresponding 1998 agreement between the Parties. The 
Protocol's objective is to strengthen the cooperation between the authorities of the Parties in 
ensuring that medicinal products and drugs meet appropriate quality s tandards through the 
mutual recognition of certificates of GMP compliance . The Protocol, which applies to medic inal 
products or drugs to which GMP requirements apply in both Parties44, contains provisions on 
recognition of regulatory authorities; mutual rec ognition of certificate s of GMP compliance; 
acceptance of batch certificates; on -site evaluations; safeguards; two -way alert programme s and 
information sharing; equivalence of new regulatory authorities; equivalence maintenance 
programme; confidentiality ; and fees. A Joint Sectoral Group is established to manage the 
Protocol. It shall conclude a GMP Administrative Arrangement to facilitate the effective 
implementation of the Protocol .45 The Parties' regulatory authorities are identified in Annex 2 to 
the Pro tocol.  
3.66.   The implementation of Chapter 4 shall be managed  by the Committee on Trade in Goods. 
Nevertheless, upon request by a Party, the CETA Joint Committee may establish an ad hoc 
technical working group to identify solutions to facilitate trade (Article 4 .7). 
3.5.2   Safeguard mechanisms  
3.67.   The rules governing trade remedies in Section B of C hapter 3 include disciplines on 
safeguard measures.  
 
 
                                                
43 Annex 1 identifies the following product categories: electrical and electronic equipment, including 
electrical installations and appliances, and related components; radio and telecommunications terminal 
equipment; electromagnetic compatibility; toys; const ruction products; machinery, including parts, 
components, including safety components, interchangeable equipment, and assemblies of machines; 
measuring instruments; hot -water boilers, including related appliances; equipment, machines, apparatus, 
devices, c ontrol components, protection systems, safety devices, controlling devices and regulating devices, 
and related instrumentation and prevention and detection systems for use in potentially explosive 
atmospheres; equipment for use outdoors and it related to n oise emission in the environment; and recreational 
craft, including their components. Annex 2 to the Protocol lists the priority categories of goods for 
consideration in the context of a consultation to take place within three years of the entry into force  of the 
Agreement with a view to broadening the scope of application of the Protocol.  
44 The scope of medicinal products or drugs covered by the Protocol is clarified in Annex 1 to the 
Protocol.  
45 The Parties are currently working on drafting the Administr ative Arrangement.  WT/REG389/1  
 
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  3.5.2.1   Global safeguards  
3.68.   The Parties reaffirm their rights and obligations concerning global safeguard measures 
under Article XIX o f GATT 1994 and the WTO Safeguard s Agreement (Article 3.4). In this context, 
the Agreement clarifies that the Protocol on rules of origin and origin procedures shall not apply to 
global safeguard measures.  
3.69.   Article 3.5 sets out d isciplines on transparency . At the request of the exporting Party, the 
Party initiating a safeguard investigation or intending to adopt provisional or definitive global 
safeguard measures shall immediately provide the information referred to in Article 12.2 of the 
Safeguards Agreemen t, the public version of the complaint filed by the domestic industry, where 
relevant, and a public report setting forth the findings and reasoned conclusions on all pertinent 
issues of fact and law considered in the safeguard investigation . The Agreement also provides for 
consultations between the importing and exporting Parties in order to review the information 
provided.  
3.70.   A Party adopting global safeguard measures shall endeavour to impose them in a way that 
least affects bilateral trade (Article 3.6).  In that context, the importing Party must offer to hold 
consultations  with the exporting Party in order to review the matter  and may not adopt the 
measures until 30 days have lapsed since the offer of consultations . 
3.71.   The dispute settlement mechanism under Chapter 29 is not applicable to global safeguard 
measures (Article 3.7).  
3.5.2.2   Bilateral safeguards  
3.72.   The Agreement does not contain any discipline s on a bilateral safeguard mechanism.  
3.5.2.3   Special safeguards  (Agriculture)  
3.73.   Canada is granted a qualified access to its WT O right to apply special safeguards pursuant 
to the WTO agreement on agriculture though its use  is limited to imports not subject to tariff 
preference s and, in the case of imports subject t o a tariff rate quota, to quantities imported  over 
the access commi tment. (Article 2.7).  
3.5.2.4   Other Safeguard measures  
3.74.   The possibility of imposing restrictive measures to trade in goods in order to safeguard a 
Party's balance -of-payments or external financial position is addressed in Article 28.5 of the 
Agreement . Such measure s shall be in accordance with the GATT 1994 and the WTO 
Understanding on the Balance -of-Payments Provisions of the GATT 1994.  
3.5.3   Antidumping and countervailing measures  
3.75.   The rules governing trade remedies, contained in Section A of Chapter 3, include disciplin es 
on antidumping and countervailing measures.  
3.76.   The Parties reaffirm their  rights and obligations under Article VI  of the GATT 1994, the WTO 
Antidumping Agreement and the WTO Subsidies and Countervailing Agreement (Article 3.1). In 
this context, the Agreeme nt clarifies that the Protocol on Rules of O rigin an d Origin P rocedures 
shall not apply to antidumping and countervailing measures.  
3.77.   The disciplines on transparency require a Party to ensure, after an imposition of provisional 
measures and, in any case, before a final determination are  made, full and meaningful disclosure 
of all essential facts under consideration to form the basis for the decision to apply final measures. 
Article 3.2  also indicates that, provided it does not unnecessarily delay the condu ct of the 
investigation, each interested P arty in an antidumping or countervailing investigation shall be 
granted a full opportunity to defend its interests.  
3.78.   The Parties' authorities shall consider information provided as to whether imposing and 
antidumpin g or countervailing duty would not be in the public interest. The Party’s authorities may WT/REG389/1  
 
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  consider whether the amount of the anti -dumping or countervailing duty to be imposed shall be 
the full margin of dumping or amount of subsidy or a lesser amount , in a ccordance with its laws 
(Article 3.3).  
3.79.   The Agreement -specific dispute settlement mechanism under Chapter 29 is not applicable to 
antidumping and countervailing measures (Article 3.7).  
3.5.4   Subsidies and State -aid 
3.80.   The rules governing subsidies are contained in C hapter 7 . Subsidies, fulfilling the conditions 
set out in Article 1.1 of the WTO Subsidies and Countervailing Measures (SCM) Agreement, are 
covered only if they are  specific within the meaning of Article 2 of the SCM Agreement.  Moreover, 
nothing in the Agr eement applies to subsidies or Governmen t support for audio visual services for 
the EU and cultural industries for Canada  (Article 7.7) . 
3.81.   Article 7.2  contains notification obligations. Chapter 7  also contains disciplines on 
consultations on subsidies and Government support to sectors other than agriculture and fisheries. 
With regard to consultations on subsidies for agricultural goods and fisheries products however, 
the Parties aim to  work jointly to reach an agreement to further enhance multilateral disciplines 
and rules on agricultural trade in the WTO, and to help develop a global, multilateral resolution to 
fisheries subsidies. Moreover, under Article 7.5, a Party shall not adopt o r maintain an export 
subsidy on an agricultural good that is exported, or incorporated in a product that is exported, to 
the territory of the other P arty after the other Party has f ully eliminated the tariff, immediately o r 
after the transitional period, o n that agricultural good in accordance with Annex 2 -A to the 
Agreement (tariff elimination Schedule).  
3.82.   The Parties reaffirm their rights and obligations under Article VI of GATT 1994, the SCM 
Agreement and the WTO Agreement on Agriculture (Article 7.8).  
3.83.   The dispute settlement mechanism under Chapter 29 is not applicable to the provisions of 
Chapter 7 related to consultations on subsidies and government support in industrial sectors 
(Article 7.3) and in agricultural goods and fisheries products (Article 7.4).  
3.5.5   Customs -related procedures  
3.84.   The rules governing customs and trade facilitation are contained in Chapter 6.  In particular, 
Articles 6.1 through 6.13  contain provisions on transparency in requirements for the import or 
export of goods; release of goods, in p articular simplified customs procedures, post -entry 
accounting and verification, expedited release of goods; cooperation and coordination to facilitate 
trade; classification of goods; the publication of fees and charges; the requirement to base 
shipment ex amination, release and post -entry verification procedures on risk assessment 
principles; the use of automation to expedite customs procedures and release of goods; the 
issuance of advance rulings on tariff classification; the review and appeal of administr ative action 
or official decisions taken for the import of goods; the imposition of penalties for breaches of 
customs laws; and the preservation of confidential information.  
3.85.   The WTO Agreement on Customs Valuation governs the customs valuation rules applie d by 
the Parties to thei r reciprocal trade (Article 6.4 ). 
3.86.   Cooperation  on customs matters, including in relation to the agreement between Canada 
and the EU on Customs cooperation and Mutual Assistance in Customs Matters (1997), is governed 
by Article 6.13.  
3.87.   The Joint Customs Cooperation Committee also ensure s the proper functioning of Chapter 6 
and the Protocol on Rules of Origin and Origin Procedures, as well as Article 20.43 (Scope of 
border measures) and Article 2.8 (Temporary suspension of preferential ta riff treatment).  
3.88.   Moreover, each Party, shall designate or maintain one or more contact points to address 
inquiries by interested persons concerning customs matters and make available on the internet 
information concerning the procedures for making such in quiries (Article 6.2) . WT/REG389/1  
 
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  3.6  Sector -specific provisions on trade in goods  
3.6.1    Pharmaceutical products  
3.89.   A Protocol on the Mutual Recognition of the Compliance and Enforcement Programme 
regarding Good Manufacturing Practices for P harmaceutical Products is attached to the Agreement  
(see Section 3.4.1.2 above) . 
3.6.2   Motor vehicles  
3.90.   As mentioned above, the Parties made  commitments with respect to cooperation in the field 
of motor vehicle regulations  in Annex 4 to the Agreement. The purpose of the Annex  is to 
strengthen cooperation and communication, including the exchange of information on motor 
vehicle safety and environmental performance research activities related to the development of 
new technical regulations or related standards, to promote the ap plication and recognition of 
Global Technical Regulations under the framework of the 1998 Global Agreement and possible 
future harmonization between the Parties concerning improvements and other developments in 
motor vehicle technical regulations or relate d standards. The Parties' commitments to increase 
cooperation involve identifying areas of cooperation; defining forms of cooperation; engaging in 
technical consultations with respect to selected UN regulations; and giving positive consideration 
to the oth er Party's technical regulations. Moreover, the y recognize their mutual interest to 
cooperate with the United States in the field of motor vehicle technical regulations. If the EU and 
the US conclude an agreement or an arrangement on the harmonization of t heir respective 
technical regulations related to motor vehicles, the Parties shall cooperate with a view to 
determining whether they should conclude a similar agreement or arrangement.  
4  PROVISIONS ON TRADE IN SERVICES  AND INVESTMENT  
4.1.  Chapter 8 con tains disc iplines on investment,  while Chapter 9 covers cross -border trade in 
services , Chapter 10 covers temporary entry and stay of natural persons for business purposes, 
Chapters 11 and 12 contains disciplines on mutual recognition of professional qualifications and on 
domestic regulations respectively, and Chapters 13, 14 and 15 cover financial services, 
international maritime transport services, and telecommunications  respectively . 
4.1  Scope and definitions  
4.2.  Chapter 8 applies to measures adopted or maintained by a Pa rty in its territory relating to 
investors of the other Party, covered investment, and any investment in its territory (with respect 
to Articles 8.5 on performance requirements).  Some sections of Chapter 8 do not apply to 
measures relating to activities ca rried out in the exercise of governmental authority and certain air 
services. In addition, certain sections of that chapter do not apply to measures with respect to 
(i) for the EU, audio -visual services and (ii) for Canada, cultural industries. The provisi ons on 
market access, national treatment and most -favoured -nation treatment do not apply to 
(i) procurement by a Party, under certain conditions; and (ii) subsidies, or government support 
relating to trade in services, provided by a Party. Chapter 8 also d oes not apply to measures to the 
extent that they apply to investors or to their investments covered by the Financial Services 
Chapter.  
4.3.  Chapter 9 applies to measures  adopted or maintained by a Party affecting cross -border trade 
in services46 by a service su pplier of the other Party. This includes a measure affecting the 
production, distribution, marketing, sale, and delivery of a service; the purchase of, use of, or 
payment for, a service; and the access to and use of, in connection with the supply of a serv ice, 
services which are required to be offered to the public generally.  Chapter 9 does not apply to 
measure s affecting: (i) services supplied in the exercise of governmental authority; (ii) 
procurement  by a Party , under certain conditions47; and (iii) a sub sidy or other governmental 
support relating to cross -border trade in services, provided by a Party . Chapter 9 does not apply to 
                                                
46 Under the Agreement, the term "cross -border trade in services or cross -border supply of services" 
means the supply of a service from the territory of a Party into the territory of the other Party (mode 1); or in 
the territory of a Part y to the service consumer of the other Party (mode 2), but does not include the supply of 
a service in the territory of a Party by a person of the other Party (mode 4).  
47 Chapter 19 contains specific disciplines applicable to government procurement. See section 5.8.  WT/REG389/1  
 
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  measures affecting (i)  for the EU, audiovisual services; (ii) for Canada, cultural industries48; (iii) 
financial services49; and (iv) certain air services .50 Moreover, the rights and obligations of the 
Parties under the Agreement on Air Transport between Canada and the EU (done at Brussels on 
17 December 2009 and Ottawa on 18 December 2009) remain unaffected by Chapter 9.  
4.4.  A "negative list" approach to scheduling commitments is used for investment and 
cross-border trade in services .51 With regard to cross -border trade in services, and the national 
treatment,  MFN, and market access obligations, Article 9.7 permits the maintenance of exist ing 
non-conforming measures listed in each Party's Schedule to Annex  I. For measures listed in 
Annex  I, standstill provisions precluding  amendments that decrease the conformity of a 
non-conforming measure, as it existed immediately before the amendment, an d ratchet 
mechanisms binding autonomous liberalization , are incorporated into the Agreem ent. Article 9.7 
also provides for the maintena nce or adopt ion of  new non -conforming measures in sectors, 
sub-sectors, or activities listed in each Party's Schedule to Annex II. With respect to investment, 
non-conforming measures are also listed by each Party in Annexes I and II to the Agreement in 
connection with the obligations on national and MFN treatment, market access, performance 
requirements, and senior managemen t and boards of directors, as provided for in Article 8.15. The 
reservations of each Party under Annexes I and II to the Agreement are without prejudice to the ir 
rights and obligations under the GATS. While Annexes I and II contain the EU's reservations fo r all 
covered services sectors, Canada's existing and po tential  future non -conforming measures with 
respect to financial services are contained in Annex III to the Agreement.  
4.5.  Through their Joint Interpretative Instrument52 the Parties, inter alia , affirm an d recogniz e 
the right of governments, at all levels, to provide and support the provision of services that they 
consider to be public services including in areas such as public health and education, social 
services and housing and the collection, purificat ion and distribution of water. They also affirm that 
the Agreement does not prevent governments from defining and regulating the provision of these 
services in the public interest. The Agreement will not require governments to privatise any service 
nor pre vent governments from expanding the range of services they supply to the public.  
4.2  Denial of benefits  
4.6.  Under Article s 8.16 (investment) and 9.8 (cross -border trade in services) , a Party may  
conditionally  deny the benefits of Chapters 8 and 9, respectively,  to an investor of the other Party 
(enterprise)  and to investments of that investor, or to a service supplier of the other Party 
(enterprise)  and to services of that service supplier, if the enterprise is owned or controlled by an 
investor or a service sup plier of a third -party.  
                                                
48 Under the Agreement, "c ultural industries" means persons engage d in: 1) the publication, distribution 
or sale of books, magazines, periodicals or newspapers in print or machine -readable form, except when 
printing or typesetting any of the foregoing is the only activity; 2) the production, distribution, sale or 
exhibition of film or video recordings; 3) the production, distribution, sale or exhibition of audio or video music 
recordings; 4) the publication, distribution or sale of music in print or machine -readable form; or 5) radio -
communications in which the transmissions are intended for direct reception by the general public, and all 
radio, television and cab le broadcasting undertakings and all satellite programming and broadcast network 
services (Chapter 1, Section A, Article 1.1).  
49 Under the Agreement, the term "financial services" means a service of a financial nature, including 
insurance and insurance -related services, banking and other financial services (excluding insurance), and 
services incidental or auxiliary to a service of a financial nature. Article 13.1 contains an indicative list of 
activities falling under the definition of "financial services".  Chapter 13 contains specific disciplines applicable to 
financial services. See section 4.5.7 below.  
50 The following are excluded from the coverage of Chapter 9: air services, related services in support of 
air services and other services supplied by means  of air transport, other than: (i) aircraft repair and 
maintenance services; (ii) the selling and marketing of air transport services; (iii) computer reservation system 
services; (iv) ground handling services; and (v) airport operation services. Unlike in other RTAs, ground 
handling services and airport operation services are covered under the Agreement.  
51 This is considering that for financial services, the coverage of the commitments regarding cross -
border trade in financial services (modes 1 and 2) is limited to the financial services specified in Annex 13 -A 
(which excludes some sub -sectors). Accordingly , one could consider that, with respect to financial services, the 
approach chosen is of a hybrid nature.  
52 Joint Interpretative Instrument on the Comprehensive Economic and Trade Agreement (CETA) 
between Canada and the European Union and its Member State s, made at the time of the signature of the 
Agreement.  WT/REG389/1  
 
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  4.3  General provisions on trade in services  and investment  
4.7.  Chapter 8 (investment) and 9 (Cross -border trade in services) contain general provisions that 
are summarized below but which should be also read in conjunction with Annexes I, II and III  to 
the Agreement, as set out in paragraph 4.4 .  
4.3.1   Market access  
4.8.  In relation to cross -border trade in services (Chapter 9), a Party shall not adopt or maintain, 
either on the basis of its entire territory or on the basis of the territory of a nation al, provincial, 
territorial, regional or local level of government , measures that impose the types of limitations 
covered by Paragraphs 2(a) to 2(c ) of Arti cle XVI of the GATS (Article 9.6 ). According to  
Annex  9-B to the Agreement  however , Article  9.6 is not applicable  to a measure relating to a new 
service that cannot be classified in the CPC 1991.  
4.9.  With regard to market access through establishment by an investor of a Party, the Parties 
commit  to not adopt or maintain measures limiting the number of enterprises  that may carry out a 
specific economic activity ,, the total value of transactions or assets, the  total number of operations 
or the total quantity of output, the participation of foreign capital, or the total number of natural 
persons that may b e employed  in a particular sector . Article 8.4 lists a series of measures  that are 
permitted , such as those  concerning zoning and planning regulations (use of land); measure s 
requiring th e separation of the ownership of infrastructure from the ownership of  the goods or 
services provided; measure s restricting the concentration of ownership to ensure fair competition; 
measure s seeking to protect  natural resources and the environment; measures limiting the 
number of authorisation granted because of technical o r physical constraints;  or certain 
requirements that a number of individuals involved in an enterprise be qualified or practice a given 
profession (such as lawyers or accountants ). 
4.10.   Most provisions on market access in Chapters 8 (investment53) and 9 (cross -border trade in 
services54) are also made applicable to financial institutions and investors of a Party and their 
investments in financial institutions  and the establishment of a financial institution by an investor 
(Article 13.6) .  
4.11.   As noted in p aragraph 4.4, in Annexes I and II the Parties list the non -conforming measures 
they are permitted to retain and the future non -conforming measures they are able to put in place 
and also indicate when they are inconsistent with the Agreement’s market access  obligations . 
4.3.2   National and MFN treatment  
4.12.   For cross -border  trade in services, Articles 9.3 and 9.5  contain national treatment and MFN 
clauses applicable to the Parties' service suppliers  and services . In Annex 9 -B to the Agreement , 
however, the Parties agree that Articles 9.3 and 9.5 do not apply to measure s relating to a new 
service that cannot be classified in the CPC 1991.  
4.13.   There are similar provisions on  investment in Articles 8.6 and 8.7  with respect to the 
Parties' investors and covered investments when they are related to the establishment; 
acquisition; expansion; conduct; operation;  management, maintenance, use, enjoyment and sale 
or disposal of  investments  in the territory of a Party .  
4.14.   National and MFN treatment is granted  by sub-federal authorit ies in Canada, with respect to 
the treatment accorded, in lik e situations, by that authority  to services, service suppliers , investors 
of Canada in its territory and to the investments of such investors. A similar approach is taken  for 
the treatment accorde d by a Government of or in an EU Member State to services, service 
suppliers , investors of the EU in its territory and to the investments of such investor s. Moreover, in 
Annex 9 -A to the Agreement , the Parties clarify their mutual understanding of the appl ication of 
the national treatment Obligation  to cross -border trade in services by a provincial or territorial 
Government in Canada, or by a Government of or in a Member State of the EU. In that context, 
inter alia , the treatment accorded pursuant to the Treaty on the Functioning of the EU (done in 
                                                
53 In particular Article 8.4, whose language is largely replicated in Article 13.6.  
54 In particular Article 9.6.  WT/REG389/1  
 
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  Lisbon on 13 December 2007) and the treatment granted pursuant to the Canadian Agreement on 
Internal Trade (between the Government of Canada and the governments of the pr ovinces and 
territories of Canada – AIT – dated 18 July 1994)  shall not be affected by the Parties' commitment 
to apply the national treatment Obligation .  
4.15.   Through Articles 13.3, 13.4, and 13.7, the provisions on national and MFN treatment in 
Chapters 8 (i nvestment55) and 9 (cross -border trade in services56) apply  to financial institutions , 
investors of a Party and their investments in financial institutions , and cross -border financial 
services suppliers .  
4.16.   With respect to the application of national and MFN treatment to the other Party's 
international maritime transport services suppliers , Article 14.2 clarifies that a Party shall not 
adopt or maintain a measure in respect of a vessel supplying an international maritime transport 
service and flying the flag of  the other Party, or an international maritime transport service 
supplier of the other Party. This appl ies in particular with regard to access to ports; the use of 
infrastructure and services of ports such as towage and pilotage; the use of maritime auxili ary 
services as well as the imposition of related fees and charges; access to customs facilities; or the 
assignment of berths and facilities for loading and unloading .57 The measures falling under the 
scope of the International Maritime Transport Services c hapter are also subject to the 
Cross -Border Trade in Services and Investment chapters . 
4.17.   The provisions on MFN and national treatment (and the Parties' related commitments ) are 
set out in Articles 8.6 and 8.7 for investment , and in Articles  9.3 and 9.5 for cross -border trade in 
services . As noted in paragraph 4.4, in Annexes I, II, and/or III  the Parties list the non -conforming 
measures they are permitted to retain and the future non -conforming measures they are able to 
put in place, and also indicate w hen they are inconsistent with MFN and/or national treatment . 
Moreover, a commitment to grant MFN treatment to investors of the other Party and covered 
investment s does not apply to treatment accorded by a Party providing for recognition, including 
through  an arrangement or agreement with a third that recogniz es the accreditation of testing and 
analysis services and service suppliers, the accreditation of repair and maintenance services and 
service suppliers, as well as the certification of the qualificatio ns of or the results of or work done 
by those accredited services and service suppliers.  
4.3.3   Commercial (local) presence58 
4.18.   With respect  to cross -border trade in services, the provisions on national treatment  does not 
prevent a Party from adopting or maintainin g measures  that prescribe formal requirements in 
connection with the supply of a service, provided that such requirements are not applied in a 
manner which would constitute a means of arbitrary or unjustifiable discrimination  (Article 9.4  on 
formal require ments ). Such measures include  requirements relating to : the obtaining of a licence, 
registration, certification, or authorisation in order to supply a service  (such as requiring  
mandatory membership in a professional organization or participation in collec tive compensation 
funds for members of professional organisations ); the requirement to have a local agent for 
service or a local address; the ability to speak a national language or hold ing a driver's licence; or 
that a service supplier post s financial sec urity, establishes or contributes to a trust account, 
maintains a particular type and amount of insurance , provides other similar guarantee s, or 
provides access to records.   
4.3.4   Performance requirements  
4.19.   With respect to investment, neither Party shall impose or  enforce performance 
requirements59 of the types listed in Article 8.5 .  
                                                
55 In particular Articles 8.6 and 8.7.  
56 In particular Articles 9.3 and 9.5.  
57 Not applica ble to vessels or international maritime transport service suppliers that are subject to the 
Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing 
(done in Rome on 22 November 2009).  
58 Canada clarifies  that there are no "local presence" commitments, per se, in C hapter 9 of the 
Agreement that covers cross -border trade in services . However, Article 9.4 contains disciplines on "formal 
requirements", which are described in this section of the factual presen tation.  WT/REG389/1  
 
- 32 - 
 
  4.20.   With respect to investment in financial institutions, the Parties commit to negotiate 
disciplines on performance requirements such as those in Article 8.5. If the Parties have not 
agreed to such disciplines after three years of entry into force of the Agreement, Article 8.5 shall 
be incorporated into and made a part of Chapter 13 and shall apply to investment in financial 
institutions. If and when performance requirement provisions are made applicable to investments 
in financial institutions , the Part ies may amend their Schedules as required and as detailed in 
Article 13.9.  
4.21.   Reservations are nevertheless made with respect to qualification requirements for a good or 
service with respect to  participation in export promotion and foreign aid programs. Moreover, 
Government procurement is excluded from the coverage of the commitments on performance 
requirements. The Parties' commitments on performance requirement s do not apply when a 
reservation  against those commitments has been taken with respect to the non -conforming 
measures and/or sectors which they list in Annexes I, II , and/or III  to the Agreement.  
4.3.5    Senior Managers and Boards of Directors  
4.22.   With respect to investment, a Party shall not requ ire that an enterprise of that Party, that is 
also a covered investment, appoint s to senior management or board of director positions, natural 
persons of any particular nationality (Article 8.8). Moreover, with respect to financial services, a 
Party shall not require that a financial institution of the other Party appoint to senior management 
or board of directors positions, natural persons of any particular nationality (Article 13.8).  
4.23.   The Parties commitments on Senior Manage ment and Boards of Directors do not apply when 
a reservation against those commitments has been taken with respect  to the non -conforming 
measures and/or services sectors which they list in Annexes I, II , and/or III  to the Agreement.  
4.3.6   Movement of natural persons  
4.24.   The rules governing tempor ary entry and stay of natural persons for business purposes are 
contained in Chapter 10.  While requirements and procedures for immigration formalities remain 
within the sphere of competence of each Party, the Agreement establishes some obligations  
regarding  the granting of temporary entry and stay into their territories of key personnel60, 
contractual services suppliers, independent professionals and short term business visitors of the 
other Party (Article 10.3); transparency of information on tempor ary entry information 
(Article  10.4); and the establishment of contact points61 to consider matters pertaining to 
Chapter  10 (Article 10.5).  
4.25.   The provisions on national treatment and market access of Chapter 9 (cross -border trade in 
services) are conditiona lly incorporated into and made part of Chapter 10 with respect to the 
treatment of natural persons for business purposes present in the territory of one Party under the 
categories of key personnel; and, for the sectors listed in Annex 10 -E62 to the Agreemen t, 
contractual service suppliers, and independent professionals. Similarly , in addition to those of 
Articles 9.3 and 9.6 , the provisions of Chapter 9 on MFN treatment (Article 9.5) are also 
conditionally incorporated into and made part of Chapter 10.  The r eservations of the Parties 
contained in Annexes I, II, and III to the Agreement may also apply, if relevant, to the ir 
commitments on  the movement of natural persons  for business purposes . 
                                                                                                                                                  
59 In connection with the establishment, acquisition, expansion, conduct, operation, and management of 
any investment in a Party's territory.  
60 Under the Agreement, "key personnel" means business visitors for investment purposes, investors, or 
intra-corporate transferees, as defined in Article 10.1. "Intra -corporate transferees" cover senior personnel; 
specialists; and graduate trainees.  
61 While the contact points for Canada and the EU are designated in Article 10.5, the contact points of 
the member States of the EU are listed in Annex 10 -A to the Agreement.  
62 Annex 10 -E contains sectoral commitments on contractual service suppliers and independent 
professionals.  WT/REG389/1  
 
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  4.26.   Chapter 10 specifies, in Articles 10.7 through 10.9, the Parties' co mmitments with respect 
to, respectively, key personnel63; contractual services suppliers and independent professionals64; 
and short term business visitors .65  
4.27.   Within 5 years following the entry into force of the Agreement, the Parties shall consider 
updating their respective commitments under Articles 10.7 through 10.9 (Article 10.10).   
4.4  Liberalization commitments  
4.28.    The sections below compare the Parties' liberali zation commitments under the Agreement 
and their GATS commitments. Each Party's GATS schedule is compared to Annexes I, II and III to 
the Agreement. Tables 4.1 and 4.2 summarize , sometimes in a rather broad manner,  specific 
commitments under the Agreement,  by sectors and sub -sectors and compare them with the GATS 
commitments. Improvements over existing GATS commitments include a reduction in market 
access and/or national treatment limitations, a relaxation of the form of establishment under 
mode  3, and/or a dditional commitments  and/or improved sectoral coverage . Horizontal limitations 
in the GATS Schedule of Specific Commitments and reservations covering all sectors are not 
included in the tables but are addressed separately. Mode 4 commitments and limitatio ns are, to a 
large extent, also excluded from the tables. The following sections are to be read in conjunction 
with the Parties' reservations . It should be noted that a Party’s reservations und the Agreement 
can be more specific than the general classifica tions used to schedule GATS sectors/subsectors.  
4.4.1   Canada  
4.4.1.1   MFN and horizontal commitments  
4.29.   In its GATS schedule, Canada has made commitments in a large number of  services sectors. 
In one of its reservations related to future measures  included in the Agreement , Canada reserves 
the right to adopt or maintain a measure for providing public law enforcement and correctional 
services, as well as certain services to the extent that they are social services established or 
maintained for a public purpose. The listed sect ors cover income security or insurance, social 
security or insurance, social welfare, public education, public training, health care and child care. 
Under the Agreement, all sectors are covered, though a number of non -conforming measures are 
listed in Anne xes I, II, and III to the Agreement.  Canada also introduces a general carve -out with 
respect to cultural industries66, a specific reservation for measures related to minority affairs and 
reiterates its reservations in social services established or maintain ed for a public purpose . 
Moreover, in the Joint Interpretative Instrument on the Agreement, Canada, as does the EU,  
affirms and recognised the right of governments, at all levels, to provide and support the provision 
of services that they consider to be public services, including in areas such as public health and 
education, social services and housing and the collection, purification and distribution of water.  
4.30.   Under the GATS, Canada scheduled MFN exemptions for audiovisual services; 
fishing -related services, some financial services, and some transport services (maritime and air 
services). Some services incidental to agricultural activities were also reserved, while acceptance 
                                                
63 Annex 10 -F addresses the Parties' respective commitments on the extension of the right to temporary 
entry and stay for spouses of the Parties' intra -corporate transferees.  
64 Article 10.8 contains conditions applicable for the temporary entry and stay of contractual services 
suppliers of the other Party, including the possession of a universi ty degree or a qualification demonstrating 
knowledge of an equivalent level, and professional qualifications. In that context, Annex 10 -C contains the 
Parties' understanding on equivalent qualifications for engineering technologists and scientific technolo gists.  
65 Annex 10 -B lists the reservations and exceptions applying in specific Member States of the EU for key 
personnel and short term business visitors. Annex 10 -D lists the activities for which, when carried out, 
temporary entry and stay of short term b usiness visitors. Applicable conditions and limitations are also 
provided under Article 10.9. Annex 10 -E is also relevant with respect to the application of Article 10.8.  
66 Under the Agreement, the terms "cultural industries" means persons engaged in: (i) the publication, 
distribution or sale of books, magazines, periodicals or newspapers in print or machine -readable form, except 
when printing or typesetting any of the foregoing is the only activity; (ii) the production, distribution, sale or 
exhibition of film or video recordings; (iii) the production, distribution, sale or exhibition of audio or video 
music recordings; (iv) the publication, distribution or sale of music in print or machine -readable form; or (v) 
radio-communications in which the transmissio ns are intended for direct reception by the general public, and 
all radio, television and cable broadcasting undertakings and all satellite programming and broadcast network 
services.  WT/REG389/1  
 
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  of compulsory arbitration of investor/State investment disputes w as subject to reciprocity 
requirements. Under the Agreement, MFN treatment commitments for investment are referred to 
in Article 8.7 , and, for  cross-border trade,  Article 9.5  governs the Parties' MFN treatment 
commitments, while applicable MFN exe mptions are  listed in Annexes I, and II . With respect to 
financial services, the MFN commitm ent is contained in Article  13.4 and non -conforming measures 
are listed in Annex III to the Agreement. Under the Agreement, as under the GATS, Canada has 
MFN non -conforming me asures that might be taken for fishing -related activities ; and air transport 
selling and marketing activities . It also registers other MFN exemptions for some existing 
measures (for example auditing, water transportation and services related to the treatme nt of 
uranium). Future non -confirming measures may, under the Agreement, be taken in favour of 
aboriginal groups; social services, as well as some air transport activities, or services related to 
water transportation. For some financial services (trade in securities  or pension -related services  for 
example), Canada also  makes MFN reservations. Unlike under the GATS, Canada does not have 
MFN exemptions for audiovisual services, though the above -mentioned carve out for "cultural 
industries " covers the sector . MFN reservations are also registered at a sub -federal level for 
gambling activities.   
4.31.   Under the GATS, Canada's horizontal limitations cover mainly national treatment for certain 
measures relating to the provision of services through modes 1 and 2 (reservat ions for tax 
measures and first consideration given in certain large projects  for local service suppliers in certain 
provinces). In relation to commercial presence (mode 3), Canada's GATS horizontal limitations 
cover the acquisition of control of a Canadia n business by a non -Canadian; subsidies related to 
research and development; federal and sub -central tax measures, including certain tax 
exemptions; national treatment limitations applicable to the supply of services required to be 
offered to the public ge nerally,  such as certain insurance, social welfare, public education, training, 
health, and child care; preferential treatment for aboriginal persons or organisations; restrictions 
on acquiring land; as well as nationality and/or residence requirements for  some senior dir ectors 
and boards of directors.  Under the Agreement, while some of the above -mentioned MFN 
reservations are horizontal and apply to all sectors (such as those for aboriginal affairs and the 
reservation for existing or future bilateral or mu ltilateral agreements concluded in certain sectors), 
Canada also reproduces most of its GATS  horizontal limitations, with respect to , for instance,  
investment and/or cross -border trade, related to, inter alia , the acquisition of Canadian 
businesses; dispos al of equity interests in a government entity; constraints on the issue, transfer 
and ownership of shares in a federally incorporated corporation; residency requirements with 
respect to senior management and boards of directors; real estate in certain area s; and a local 
presence requirement for the issuance of export and import permits.  
4.4.1.2   Sector specific commitments  
4.32.   The following section identifies some of the main differences, by sector, between Canada's 
GATS schedule and its sector -specific commitments und er the Agreement. It should also be read in 
conjunction with Annexes I, II, and III to the Agreement.  
4.33.   Canada's Schedule clarifies that its reservations contained in the Annexes are without 
prejudice to the rights and obligations of the Parties under the G ATS.  
Table 4.1 Canada: comparison between the GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  investment  
Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Full Partial  Full 
B. Computer  and Related  Services  Partial  Improved  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Real  Estate  Services  Partial  Improved  Partial  Full Full Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Full Full Full Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- New Partial  Full Partial  Full 
B. Courier  services  Partial  Improved  Partial  Full Full Full 
C. Telecommunication  services  Partial  Improved  Full Full Partial  Full WT/REG389/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  investment  
Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a Existing 
Measures  
(Annex I)a Reserved 
sectors  
(Annex II)a 
D. Audiovisual services  --- Similar  Excluded  Excluded  Excluded  Excluded  
E. Other  --- New Full Full Full Full 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Partial  Partial  Partial  Partial  
C. Installation  and assembly  work  Full Same  Full Full Full Full 
D. Building  completion  and finishing  work  Full Same  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
5. Education services a       
A. Primary education services  --- New Partial  Partial  Partial  Partial  
B. Secondary education services  --- New Partial  Partial  Partial  Partial  
C. Higher education services  --- New Partial  Partial  Partial  Partial  
D. Adult education  --- New Partial  Partial  Partial  Partial  
E. Other education services  --- New Partial  Partial  Partial  Partial  
6. Environmental services        
A. Sewage services  Full Same  Full Full Full Full 
B. Refuse disposal services  Full Same  Full Full Full Full 
C. Sanitation and similar services  Full Same  Full Full Full Full 
D. Other  Partial  Improved  Full Full Full Full 
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
8. Health related and social services        
A. Hospital services  --- Same  --- --- --- --- 
B. Other Human Health Services  --- Same  --- --- --- --- 
C. Social Services  --- Same  --- --- --- --- 
D. Other  --- Same  --- --- --- --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Full Partial  Full 
B. Travel  agencies  and tour operators   
services  Partial  Improved  Partial  Full Partial  Full 
C. Tourist  guides  services  --- New Partial  Full Partial  Full 
D. Other  --- New Full Full Full Full 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  --- New Full Full Full Full 
B. News agency services  --- New Full Full Full Full 
C. Libraries, archives, museums and other 
cultural services  --- New Partial  Full Partial  Full 
D. Sporting and other recreational 
services  --- New Partial  Partial  Partial  Partial  
E. Other  --- New Full Full Full Full 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  --- New Partial  Partial  Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  --- New Full Full Full Full 
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  --- New Partial  Partial  Partial  Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  --- New Partial  Partial  Partial  Partial  
12. Other services not included 
elsewhere  --- New Partial  Full Partial  Full 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  WT/REG389/1  
 
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  Partial:  Specific commitments subject to some limitation(s) under market access or national treatment, 
under any of the three modes.  
---: No specific commitment (under GATS), or full reservation (under the Agreement).  
New: New commitments  (full or partial, with or without limitations) which can, in most but not all cases, 
be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Same :  Identical  commitments . 
Similar:  Similar commitments; though possibly, in individual cases,  with limited improvements and/or limited 
additional reservations.  
Excluded: sector or subsector excluded from the coverage.  
a Also incorporates reference to non -conforming measures contained in Annex III .  
b With respect to the education sector (unbound under the GATS), public education remains 
completely excluded from any liberalization commitment .  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/CAN), prepared by the 
Secretariat (in 2003) and Canada's Schedules annexed to the Agreement.  
4.4.1.2.1   Business services  
4.34.   While, under the GATS, a number of sub -sectors were only partially covered, or with 
limitations, Canada broadens the coverage of its commitments under the Agreement. This is 
particularly the case for computer and related servi ces; research and development services  
(though with some limitations) ; real estate services  (also with limitations) ; and rental and leasing 
services  (largely covered under the GATS) . Some existing limitations , essentially at the sub -federal 
level,  are list ed as non -conforming measures, particularly for some legal services; auditing ; 
architectural services; veterinary services;  some services incidental to mining ; some investigation 
and security services; related scientific and technical consulting services; as well as convention 
services . Existing and future limitations are also registered with respect to  some services incidental 
to agricultural, hunting, mining, manufacturing, and energy distribution. While the overall 
coverage of Canada's commitments is inc reased through the use of the negative list approach, 
additional improvements are also made in market access for a relatively wide range of sub -
sectors, through the removal of a number of sub -federal limitations that are listed in Canada's 
commitments unde r the GATS. The exception  for cultural industries may apply  to some subsectors 
in the category "other business services".   
4.4.1.2.2   Communication services  
4.35.   As under the GATS, partial  commitments are made in the Agreement for courier services, 
and for postal services  (unbound under the GATS) . With respect to courier services, Annex 9 -C to 
the Agreement  clarifies the Parties' understanding that the treatment offered to courier services 
under Chapters 8 and 9 does not include the grant of air traffic rights for courier services 
suppliers .67  
4.4.1.2.3   Construction and related engineering services  
4.36.   Under the Agreement, this sector is fully covered with the exception of measures taken at 
the federal level with respect to some general construction work for civil engineering , while gene ral 
construction is subject to some limitations under the GATS. No limitations are registered at the 
provincial level.   
4.4.1.2.4   Distribution services  
4.37.   Sectoral coverage is expanded under the Agreement, as compared to the GATS. However 
the distribution, wholesale trade and retailing services for books, magazines, periodicals or 
newspapers, as well as for audio, music and video recordings is included in the scope of the 
carve -out for cultural industries . Some, essentially provincial , non-conforming measures are listed 
                                                
67 These rights are subject to the Agreement on Air Transport between the  Parties (done at Brussels on 
17 December 2009 and Ottawa on 18 December 2009).  WT/REG389/1  
 
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  under the Agreement . Multiple reservations are registered at the sub -federal level with respect to 
the distribution and sale of alcoholic beverages.  
4.4.1.2.5   Educational services  
4.38.   Education services (unbound under the GATS) are subject  to the broad carve -out in Annex 
ll-C-9 for current and future measures affecting public education . In addition, the reservations for 
social services not covered by Annex ll -C-9 (Annex ll -C-10 and l -C-8) apply to private education.   
4.4.1.2.6   Environmental services  
4.39.   As under the GATS, full commitments are made without limitations.  
4.4.1.2.7   Financial services  
4.40.   Canada builds upon its commitments under GATS. As compared to its GATS Schedule, it 
also removes some market access limitations under mode 3 for both banking and insuranc e 
services.  
4.4.1.2.8   Health related and social services  
4.41.   This sector (unbound under the GATS) as i s the case with public education, is subject to a 
broad reservation (Annex II -C-9) with respect to current and future measures. Th is reservation 
covers any health or social service that is maintained for a public purpose.  In addition, there are 
two reservations applicable to health and social services with a private purpose (Annex es ll-C-10 
and l-C-8).  
4.4.1.2.9   Tourism and travel related services  
4.42.   Only partially covered under the GATS, the entire sector is fully covered under the 
Agreement, without limitations fo r measures taken by the f ederal Government  while reservations 
are made with respect to existing measures taken at a sub -federal level . Tourist guides services 
(unbound under the GATS) are covered under the Agreement, though with some limitations.  
4.4.1.2.10   Recreational, cultural and sporting services  
4.43.   The exception for cultural industries may apply  partly to recreational, cultural and sporting 
services (unbound under the GATS). Moreover, m ultiple reservations are made at the sub -federal 
level with respect to gambling activities .  
4.4.1.2.11   Transport services  
4.44.   In transport services, partially covered in its GATS schedule, Canada expands its 
commitments, including for international maritime tran sport services. At the same time, it 
maintains a number of reservations for existing and future measures, particularly for domestic 
maritime transport services, as well as for some aspects of air transport services, cabotage applied 
to road transport, as w ell as some existing services auxiliary to all modes of transport. A broad 
reservation is made with respect to measures, at the federal level, related to the designation, 
establishment, expansion, or operation of monopolies or exclusive service suppliers i n the 
transportation sector.   
4.4.1.2.12   Other services not included elsewhere  
4.45.   A number of reservations are made by Canada to cover measures taken at the provincial 
level with respect to certain other services not included elsewhere, such as community and 
personal se rvices (funeral, cremation and undertaking services, religious organizations); and 
service s of membership organizations (legal documentation and certification).  WT/REG389/1  
 
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  4.4.2   The E uropean Union 
4.4.2.1   MFN and horizontal commitments  
4.46.   In its GATS sched ule, the EU  has scheduled extensive commitments in a large number of 
sectors, subject, in certain cases, to limitation s by all or some individual EU Member States. The 
EU did not make commitments, inter alia, for certain professional services related to medical and 
paramedical sub -sectors, postal and audio -visual services, some recreational and cultural and 
sporting services and some activities in transport services. Under the Agreement, all sectors are 
covered  through the use of a negative list approach. However, as under the GATS, audiovisual 
services are carved -out from the liberalization commitments. Moreover,  non-conforming measures  
adopted either at the EU level or at the level of some EU Member States,  are listed in Annexes I 
and II to the Agreement. A broad reservation  is also introduced with respect to services considered 
as public utilities68 at a national or at a local level. Furthermore , sectors generally considered as 
falling under the category of public services, such as health, education, and social services, also 
remain mainly reserved under the Agreement (as under the GATS). This is also confirmed  in the  
Joint Interpretative Instrument on the Agreement, where the EU  recalls , as does Canada,  the 
rights of governments, at all levels, to provide and support the provision of services that they 
consider to be public services, including in areas such as public health and education, social 
services and housing , and the coll ection, purification and distribution of water.  
4.47.   Under the GATS, t he EU  took a number of MFN exemptions in areas such as audiovisual 
services; a variety of transport services; news and press agency services and publishing; and 
financial services .69 A number  of MFN exemptions were also registered for all sectors and with 
respect to, inter alia , existing and future bilateral agreements either between certain EU Member 
States (Nordic countries for instance) or between certain EU Member States and third -parties.  
Under the Agreement, MFN treatment commitments for investment are referred to in Article 8 .7, 
and, for cross -border trade, in  Article 9.5, while applicable MFN exemptions are listed in Annexes I, 
and II, including with respect to financial services, for w hich the MFN commitments  are contained 
in Article  13.4. Under the Agreement , the EU list s only one existing  non-conforming measure 
applicable in all EU Member States, in support services for air transport. Several MFN exemptions 
are however registered by individual EU Member States not only  for support services for air 
transport but also the provision of certain business services (legal services, translation and 
interpreta tion, engineering, technical testing and analysis services, and real estate services) ; and  
with respect to veterinary services,  and some road transport services (freight and passengers). 
Reservations are also made with respect to existing measures applicab le to the acquisition of land. 
The EU also  has a number of  non-conforming measures that may be taken in future in all EU 
Member States in areas such as recreational, cultural and sporting services (covering activities 
related to the cultural industry, and gambling for instance); and fishing, aquaculture and support 
services, or some air transport services. In a number of cases, the reservation is related to 
preferential treatment that may be granted as a consequence of existing or future bilateral 
agreement s between the EU, or some of its Member States, and third -parties. More than two 
dozens of reservations are also registered by individual EU Member States in similar areas and in 
other areas such as transport (essentially maritime, including cabotage; road  and rail); health and 
social services, some rental or leasing of vessels with respect to chartering; and tourism and 
travel -related services.  
4.48.   Under the Agreement, as under the GATS, besides the above -mentioned limitations, the EU 
has, inter alia , a horizo ntal "public utilities carve -out"70, limitations on the form of certain legal 
entities, and possible preferential treatment for the right of establishment resulting from existing 
or future bilateral agreements.  Moreover, under the Agreement, the EU also  replicates  the 
horizontal reservations u nder the GATS by individual EU  Member States concerning other 
conditions for commercial presence (mode  3), acquisition of real estate , services performed in 
                                                
68 According to the EU's entry in Annex II to the Agreement, "public utilities" exist in sectors such as 
related scientific and technical consulting services, research and devel opment services on social sciences and 
humanities, technical testing and analysis services, environmental services, health services, transport services 
and services auxiliary to all modes of transport.  
69 Based on the EU(12) list of MFN exemptions  (in docum ent GATS/EL/31, dated 15 April 1994) . MFN 
exemptions ha ve also been scheduled by the 17  countries which acceded to the EU since 1995.  
70 The EU commitments are without prejudice to the existence of public monopolies or exclusive rights 
granted to private op erators. The reservation does not apply to telecommunications and to computer and 
related services under the Agreement.  WT/REG389/1  
 
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  connection with defence and national security, or cooperation initiatives between certain EU 
Member States and between certain EU Member States71 and third -parties .72 
4.4.2.2   Sector specific commitments  
4.49.   The following section identifies some of the main differences, by sector, between the EU 's 
GATS schedule and its sector -specific commitments under the Agreement. It should also be read in 
conjunction with Annexes I, and II of the Agreement. There is  also, as yet, no certified 
consolidated EU(28) list of Specific Commitments, to take into acco unt the latest EU enlargements.  
4.50.   The EU's Schedule , which is based on a negative list approach,  clarifies that its reservations 
are without prejudice to its rights and obligations under the GATS (GATS floor reservation). Its 
commitments  under the Agreement are improved as compared to its GATS commitments. 
Moreover, a number of GATS reservations, essentially those by  individual Member States, are 
withdrawn under the Agreement.  
Table 4.2 EU: comparison between GAT S and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  investment  
Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  Full 
D. Real  Estate  Services  Partial  Improved  Partial  Partial  Partial  Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Partial  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- New Partial  Full Partial  Full 
B. Courier  services  Partial  Improved  Partial  Full Partial  Full 
C. Telecommunication  services  Partial  Improved  Full Full Full Full 
D. Audiovisual services  --- Similar  Excluded  Excluded  Excluded  Excluded  
E. Other  --- New Full Full Full Full 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Full Partial  Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Partial  Partial  Partial  Full 
C. Installation  and assembly  work  Partial  Improved  Full Partial  Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Partial  Full Full 
E. Other  Partial  Improved  Full Partial  Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Full Full Full Full 
E. Other  --- Improved  Full Full Full Full 
5. Education services        
A. Primary education services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Secondary education services  Partial  Similar  Partial  Partial  Partial  Partial  
C. Higher education services  Partial  Similar  Partial  Partial  Partial  Partial  
D. Adult education  Partial  Similar  Partial  Partial  Partial  Partial  
E. Other education services  Partial  Similar  Full Partial  Partial  Partial  
6. Environmental services        
A. Sewage services  Partial  Improved  Full Partial  Full Partial  
B. Refuse disposal services  Partial  Improved  Partial  Partial  Full Partial  
C. Sanitation and similar services  Partial  Improved  Full Partial  Full Partia l 
D. Other  Partial  Improved  Partial  Partial  Full Partial  
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
                                                
71 For instance cooperation established between the Nordic countries.  
72 For instance cooperation between Portugal and Portuguese speaking third -parties.  WT/REG389/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  investment  
Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  Existing 
Measures  
(Annex I)  Reserved 
sectors  
(Annex II)  
8. Health related and social services        
A. Hospital services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Other Human Health Services  Partial  Similar  Partial  Partial  Partial  Partial  
C. Social Services  Partial  Similar  Partial  Partial  Partial  Partial  
D. Other  Partial  Similar  Full Full Partial  Partial  
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Full Partial  Full 
B. Travel  agencies  and tour operators   
services  Partial  Improved  Partial  Full Partial  Full 
C. Tourist  guides  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Other  Partial  Improved  Partial  Full Partial  Full 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  Partial  Improved  Full Partial  Full Partial  
B. News agency services  Partial  Improved  Full Partial  Full Partial  
C. Libraries, archives, museums and other 
cultural services  Partial  Improved  Full Partial  Full Partial  
D. Sporting and other recreational 
services  Partial  Improved  Partial  Partial  Partial  Partial  
E. Other  --- New Full Full Full Full 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  Partial  Improved  Partial  Partial  Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Full Partial  Full Partial  
D. Space  Transport  --- Similar  Full --- Full --- 
E. Rail Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  Partial  Improved  Partial  Partial  Partial  Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Improved  Partial  Full Partial  Full 
12. Other services not included 
elsewhere  Partial  Improved  Full Partial  Partial  Partial  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Full: Specific commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment , 
under any of the three modes.  
---: No specific commitment  (under GATS) , or full reservation ( under the Agreement ). 
New: New commitments (full or partial, with or without limitations) which can, in most but not all cases, 
be seen as "improved".  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:  Similar commitments; though possibly, in individual cases, with lim ited improvements and/or limited 
additional reservations.  
Excluded: sector or subsector excluded from the coverage.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/C/W/273/Suppl.1), communicated by 
the EU (in 2006), which does not cove r the result of the 2007 and  further EU enlargements . 
 
4.4.2.2.1   Business services  
4.51.   Coverage under the Agreement is broadened compared to the EU 's GATS commitments. 
While few reservations are made with respect to the EU as a whole, indivi dual EU Member States 
registe r several existing and  future non -conforming measures . With respect to some sub -sectors 
however, reservations are either lifted, or simplified and reduced. For instance, no reservations are 
made for computer and related services (to a large extent as under  the GATS); and a number of 
other business services, such as advertising services, market research and public opining polling 
services, management consulting services, maintenance and repair of equipment, building -WT/REG389/1  
 
- 41 - 
 
  cleaning services, photographic services, and packaging services. The broad "public utilities" 
carve -out may also apply to some sub -sectors in business services.   
4.4.2.2.2   Communication services  
4.52.   Commitments are made for postal and courier services, which are unbound under the GATS, 
though with a reservatio n for future measures . With respect to courier services, Annex 9 -C to the 
Agreement  clarifies the Parties' understanding that the treatment offered to courier services under 
Chapters 8 and 9 does not include the grant of air traffic rights for courier services suppliers .73 Full 
commitments are made in t elecommunication services (partly un bound and partly committed with 
some limitations under the GATS), without limitations under the Agreement. While audiovisual 
services are unbound under the GATS, the entire subsector is carved -out of Cross Border Trade in 
Services .  
4.4.2.2.3   Construction and relate d engineering services  
4.53.   While under the GATS, partial commitment s with  limitations  are made , under the 
Agreement a few reservations remain for a few EU Member States and essentially for existing 
measures, with the exception of general construction work for civil engineering for which the 
possibility to introduce new restriction s is reserved by 23 EU Member States.  
4.4.2.2.4   Distribution services  
4.54.   Though coverage under the Agreement is improved , as compared to the GATS , a number of 
existing and future non -conforming mea sures remain listed in most sub -sectors.  This is in 
particular the case for the distribution of alcoholic beverages, tobacco products, pharmaceutical 
goods and some energy products.   
4.4.2.2.5   Educational services  
4.55.   Similarly to the GATS , where only the privately fund ed education services are committed 
subject to reservations by Member States , under  the Agreement, the sector is also covered  only 
for privately funded education services excluding hence all publicly funded education services . 
There are however  a series of specific (essenti ally by EU Member States)  and general reservation s 
for future measures that may be taken with respect to pre -primary, primary, secondary , higher, 
and adult education services . In addition, there is a range of market access and national treatment 
reservations pertaining to current measures. The broad "public utilities" carve -out may also apply 
to education services .  
4.4.2.2.6   Environmental services  
4.56.   Similar to  the GATS, the EU  makes  commitments  for all environmental services sub -sectors. 
While removing some cross -border supply limitations, the EU keeps some  non-conforming 
measures  for the sector . Existing non -conforming measures are listed for certain services for 
processing and recycling of used material and waste, and for the protection o f ambient air and 
climate. Some EU Member States reserve their right s to take measures for waste management, 
including sewage, refuse disposal, and sanitation services. Activities with respect to soil 
management are also reserved.   
                                                
73 These rights are subject to the Agreement on Air Transport between the Parties (done at Brussels on 
17 December 2009 and Ottawa on 18 December 2009).  WT/REG389/1  
 
- 42 - 
 
  4.4.2.2.7   Financial services  
4.57.   Building upon its GATS commitments, the coverage of the EU 's commitments under the 
Agreement is enlarged while certain limitations  remain . In addition to the specific reservations of 
individual EU Member States, the EU as a whole reserves the right to adop t or maintain any 
measure requiring a financial institution, other than a branch, when  establishing in a Member Sta te 
of the EU to adopt a specific legal form, on a non -discriminatory basis . Moreover, the EU Council 
directive 85/611 of 20 December 1 985 on the coordination of laws, regulations and administrative 
provisions relating to undertakings for collective investment in transferable securities is applicable.   
4.4.2.2.8   Health related and social services  
4.58.   The sector is partially committed  under the GATS. Under the  Agreement, the EU  maintains a 
broad reservation to adopt or maintain any measure with respect to social services established or 
maintained for public purposes. The EU Schedule clarifies that only commitments made with 
respect to privately funded health se rvices may be covered under the Agreement . It also clarifies 
that the EU reserves the right to adopt or maintain any measure with regard to the supply of all 
health services which receive public funding or State support in any form, and are therefore not 
considered to be privately funded. It also reserves the right to adopt or maintain any measure 
regarding human health services.  Among the measures that remain applicable in some EU Member 
States, are certain nationality or residence requirements for providi ng certain health and social 
services.  The broad "public utilities" carve -out may also apply to some sub -sectors of health 
related and social services . Veterinary services, the activity of some paramedical personnel, 
restorer and physiotherapist services are also reserved by some EU Member States.  
4.4.2.2.9   Tourism and travel related services  
4.59.   The sector is largely covered under the GATS. Under the Agreement, the EU  improves its 
commitments,  while maintaining , in particular in some EU Member States, the Government s' 
ability to introduce, conditionally in a number of cases, restrictions.  
4.4.2.2.10   Recreational, cultural and sporting services  
4.60.   The sector  is partially covered with limitations  under the GATS ; these limitations are  
maintained  in the Agreement , essentially at the level of some EU Member States,  to cover both 
existing and possible future restrictive measures. A broad reservation is made with respect to the 
supply of library, archive, museum, and other cultural services.  The right of most EU Member 
States is also reserved, for instance, with respect to measures requiring establishment and 
restriction applicable to the cross -border supply of entertainment services, including theatre, live 
bands, circus and discotheque services. The "public utilitie s" carve -out may also apply to some 
sub-sectors in recreational, cultural and sporting services.  Reservations are made by most EU 
Member States for gambling. Foreign participation in existing companies publishing certain 
publications is also subject to lim itations by some EU Member States.   
4.4.2.2.11   Transport services  
4.61.   While only partial commitments are made in the GATS , in most sub -sectors except space 
transport  (unbound under GATS and kept similarly reserved under the Agreement through the full 
reservation listed i n Annex II to the Agreement) , the coverage i s improved under the Agreement. 
A large number of specific reservations (existing and future) are nevertheless listed for most sub -
sectors, while th e broad "public utilities" carve -out may also apply to some transport sub -sectors. 
The EU Schedule also clarifies that the commitment s do not apply to services that may be 
classified under  public  transport services.   WT/REG389/1  
 
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  4.4.2.2.12   Other services not included elsewhere  
4.62.   Some reservations are made by certain EU Member States to cover m easures with respect 
to certain other services not included elsewhere, such as funeral and cremation services.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.63.   The rules governing domestic regulation are in Chapter 12.  They apply  to measure s adopted 
or maintain ed by a Party relating to licensing requirements  and procedures, qualification 
requirements or procedures that affect the cross -border supply of services; the supply of a service 
or pursuit of any other economic activity, through commercial presence in the  territory of the other 
Party, including the establishment of commer cial presence; and the supply of a service through the 
presence of a natural person of the other Party in the ter ritory of the Party . The existing non -
conforming measures remain reserved. Also excluded from the coverage of Chapter 12 are, for 
Canada, cultural industries and, as set out in its Schedule to Annex II  to the Agreement , social 
services, aboriginal affairs, minority affairs, gambling and betting services; and the collection, 
purification, and distribution of water. With respect to the EU, audiovisual services are also outside 
the coverage of Chapter 12 , and, as set out in its Schedule to Annex II,  health, education, and 
social  services, and social services, gambling and betting services74, and the collection, 
purification, and distribution of water.  
4.64.   In Annex 9 -B to the Agreement,  the Parties agree that Chapter 12 (domestic regulation) 
does not apply to a measure relating to a n ew service that cannot be classified in the CPC 1991.  
Moreover, t hrough their Joint Interpretative Instrument75 the Parties, inter alia , recall that Canada 
has included exceptions and carve -outs to ensure its ability to adopt measures that preserve rights 
and preferences for Aboriginal peoples.  
4.5.2   Recognition and temporary licensing  
4.65.   The rules governing mutual recognition of professional qualifications are contained in 
Chapter 11.  They are  intended to establish a framework to facilitate a fair, transparent and 
consistent regime for the mutual recognition of professional qualifications by the Parties and to set 
out the general conditions for the negotiation of mutual recognition agreements (MRAs) between 
the Parties. The Chapter applies to professions which are r egulated in each Party, including in all or 
some Member States of the EU and in all or some provinces and territories of Canada. The MRAs 
adopted pursuant to Chapter 11 shall apply throughout the territories of the EU and Canada.  
4.66.   The Agreement establishe s a Joint Committee on Mutual Recognition of Professional 
Qualifications (the "MRA Committee").  The Parties agree to encourage their relevant authorities or 
professional bodies to develop and provide to the MRA Committee joint recommendations on 
proposed MRA s. The MRA Committee shall then review the recommendation with a view to 
ensuring its consistency with the requirements of Chapter 11. The necessary steps to negotiate 
shall be established and each Party shall inform its respective relevant authorities of these steps. 
The negotiating authorities shall thereafter pursue the negotiation and submit a draft to the MRA 
Committee to ensure consistency with the Agreement. To assist in process, n on-binding guidelines 
for the negotiation and conclusion of MRAs are contained in Annex 11 -A to the Agreement. At the 
conclusion of the process, the decision by the MRA Committee to adopt the MRA becomes binding 
on the Parties upon the notification of the fulfilment of internal requirements by each Party.  The 
recognition of professional qualifications provided by an MRA shall allow the service supplier to 
practice professional activities in the other Party, in accordance with the terms and conditions 
specified in the MRA. Recognition under an MRA, according  non-discriminatory treatment to a 
service supplier of a Party in the other Party, cannot be conditioned upon meeting a citizenship or 
a residency requirement; or education, experience or training having been acquired in the other 
Party (Article 11.4).  
                                                
74 With the exception o f Malta.  
75 Joint Interpretative Instrument on the Comprehensive Economic and Trade Agreement (CETA) 
between Canada and the European Union and its Member States, made at the time of the signature of the 
Agreement.  WT/REG389/1  
 
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  4.67.   Each Party shall establish one or more contact points for the administration of Chapter 11 
(Article 11.7).  
4.5.3   Subsidies  
4.68.   Most provisions of Chapter 8 (investment) and all of Chapter  9 (cross-border trade in 
services)  do not apply to a measure affecting a subsidy  or other government support relating to 
trade in services provided by a Party. Moreover, nothing in the Agreement applies to subsidies or 
government support with respect to audiovisual services for the EU and to cultural industries for 
Canada (Article 7.7 ). 
4.5.4   Safeguards  
4.69.   The possibility of imposing restrictive measures on trade in services in order to safeguard a 
Party's balance -of-payments or external financial position is foreseen by the Agreement 
(Article  28.5 – paragraph 4). Such measures shall be in acco rdance with the GATS.  
4.70.   Moreover, where in exceptional circumstances, capital movements and payments, including 
transfers, cause or threaten to cause serious difficulties for the operation of the economic and 
monetary union of the EU, the EU may impose safeg uard measures that are strictly necessary to 
address such difficulties for a period not to exceed 180 days. Such measures shall, nevertheless, 
not constitute a means of arbitrary or unjustifiable discrimination in respect of Canada or its 
investors compare d to a third -party or its investors (Article 28.4).  
4.5.5   Other  
4.5.5.1   Investment  
4.71.   Chapter 8  applies to measures adopted or maintained by a Party relating to investors of the 
other Party; covered investment76; and, with respect to provisions on performance requirement s, 
any investments in its territory . Exclude d from the coverage of Section B (Establishment of 
investments) and C (Non -discriminatory treatment)  of Chapter 8  are measures relating to some air 
transport services77 and activities carried out in the exercise of g overnmental authority. Moreover, 
for the EU, measures with respect to audiovisual services are not covered  by these sections , while, 
for Canada  they do not apply to measures in cultural industries. The disciplines contained in 
Chapter 8 are not applicable either to measures adopted or maintained by a Party to the extent 
that the measures apply to investors or to their investments covered by Chapter 13 (financial 
services). The Parties clarify,  in connection with Chapter 13 , that Chapter 8 applies to a measu res 
relating to an investor of a Party, and an investment of that investor, in a financial service supplier 
that is not a financial institution; and a measure, other than that relating to the supply of financial 
services, relating to an investor of a Party  or an investment of that investor in a financial 
institution.  
4.72.   The provisions of the Agreement applicable to investments78, contained in Chapter 8, 
address establishment of investments (Section B of Chapter 8);  non-discriminatory treatment 
(Section C); investment protection (Section D ); reservations and exceptions (Section E and 
                                                
76 Under the Agreement, "covered investment"  means, with respect to a Party, an investment (i) in its 
territory; (ii) made in accordance with the applicable law at the time the investment is made; (iii) directly or 
indirectly owned or controlled by an investor of the other Party; and (iv) existing o n the date of entry into force 
of the Agreement, or made or acquired thereafter.  
77 The following services are covered by Chapter 8: (i) aircraft repair and maintenance services; (i) the 
selling and marketing of air transport services; (iii) computer reserv ation system services; (iv) ground handling 
services; and (v) airport operation services. Chapter 8 does not affect either the rights and obligations of the 
Parties under the Agreement on Air Transport between Canada and the EU and its Members States (done  at 
Brussels on 17 Brussels on 17 December 2009 and Ottawa on 18 December 2009).  
78 Under the Agreement, "investment" means every kind of asset that an investor owns or controls, 
directly or indirectly, that has the characteristics of an investment, which i ncludes a certain duration and other 
characteristics such as the commitment of capital or other resources, the expectation of gain or profit, or the 
assumption of risk. The forms that an investment may take are identified in Article 8.1.  WT/REG389/1  
 
- 45 - 
 
  Annexes I and II to the Agreement); and resolution of investment disputes between investors and 
states79 (Section F and Annex 8 -B to the Agreement ).  
4.73.   With respect to investment pr otection, the Parties reaffirm their right to regulate within their 
territories to achieve legitimate policy objectives, such as the protection of public health, safety, 
the environment or public morals, social or consumer protection or the promotion and p rotection 
of cultural diversity. Specific rules apply to the granting of a subsidy (Article 8.9). The Parties shall 
accord to investors and covered investment s, in particular fair and equitable treatment and full 
protection and security (Article 8.10) . The Agreement also contains disciplines on compensation for 
losses (Article 8.11); expropriati on80 (Article 8.12 and Annex 8 -A to the Agreement ); transfer s 
(Article 8.13); and subrogation (Article 8.14).  
4.74.   With respect to the resolution of investment disputes be tween investors and States, an 
investor of a Party may submit to the tribunal constituted under Section F of Chapter 8 a claim 
that the other Party has breached an obligation under the disciplines on non -discriminatory 
treatment (Section C of Chapter 8) with respect to the expansion, conduct, operation, 
management, maintenance, use, enjoyment and sale or disposal of its covered investment,  or 
under the disciplines on investment protection (Section D of Chapter 8). The investment court 
system (ICS) establish ed by the Agreement is described  in section 5.6 below (dispute settlement).  
However, as clarified in Annex 8 -C to the Agreement, a decision by Canada following a review 
under the Investment Canada Act (R.S.C. 1985, c.28 (1st supplement) ) regarding whether or not 
to permit an investment that is subject to review, is not subject to the dispute settlement 
provisions under Section F  or to Chapter 29 (dispute settlement) .81  
4.75.   Through their Joint Interpretative Instrument82 the Parties, inter alia , confirm  their 
understanding about non-discriminatory treatment of domestic investors; compensation due to an 
investor in cases of loss; the application of investment protection standards; the non -applicability 
of benefits to shell or mailbox companies; the issuin g of binding notes of interpretation by the 
Parties .  
4.76.   The Agreement also contains, in Annex 8 -F to the Agreement , a Declaration by Canada on 
the Investment Canada Act and on its relationship with the provisions contained in Chapter 8.  
4.77.   The Agreement establi shes a Committee on services and investment to provide a forum for 
the Parties to consult on issues related to Chapter 8.  
4.5.6   Sector specific provisions on trade in services  
4.5.6.1    Financial services  
4.78.   Chapter 13 contains  rules governing financial services.  It applies  to the measures of a Party 
relating to financial institutions of the ot her Party; an investor of the other Party, and an 
investment by that investor, in a financial institution in the Party's territory; and cross -border 
trade in financial services.  Most a ctivities or services forming part of public retirement plans or 
statutory systems of social security, or activities and services conducted for the account of the 
Party, with the guarantee or using the financial resources of the Party, including its public  entities 
are excluded from the coverage of Chapter 13.  Chapter 13 also contains agreement -wide 
exceptions.   Under Article 13.16, the Agreement does not prevent a party from adopting or 
maintaining reasonable measures for prudential reasons, which include ensuring the integrity and 
                                                
79 The investor -state dispute settlement mechanism is summarized in Section 5.6 of this factual 
presentation.  
80 Annex 8 -D contains a Joint declaration by the Parties concerning Article 8.12.6. In particular, the 
Parties recall that the domestic courts of each Party are respo nsible for the determination of the existence and 
validity of intellectual property rights. The relationship between Chapter 8 and intellectual property rights is 
further addressed in the joint declaration.  
81 For greater certainty, this exclusion is withou t prejudice to the right of a Party to have recourse to 
Chapter 29 with respect to the consistency of a measure with a Party's reservations in Annexes I, II or III, as 
appropriate.  
82 Joint Interpretative Instrument on the Comprehensive Economic and Trade A greement (CETA) 
between Canada and the European Union and its Member States, made at the time of the signature of the 
Agreement.  WT/REG389/1  
 
- 46 - 
 
  stability of a Party’s financial system.  Under Article 13.17, the Agreement does not apply to 
measures taken by a public entity in pursuit of monetary or exchange rate policies.  
4.79.   With respect to investment, a  number of provisions from Chapter 8 are incorporated into 
the Chapter  on financial services .83 For example, Articles 8.10 through  8.14; 8.16, and 8.17 are 
made part of Chapter 13. In some cases, the incorporated provisions apply in certain  
circumstances and/or under certain conditions. The disciplines applicable to the resolution of 
investment disputes between investors and States ( in Section F of Cha pter 8) are also 
incorporated in to and made a part of Chapter 13. The use of the ICS is however restricted to 
claims that a Party has breached Article 13.3 (national treatment) or 13.4 ( MFN treatment) with 
respect to the expansion, condu ct, operation, management, maintenance, use, enjoyment and 
sale or disposal of a financial institution or an investment in a financial institution, or Article 8.10 
(treatment of investors and of covered investments), 8.11 (compensation for losses), 8.12 
(expropriation), 8.13 (transfers), or 8.16 (denial of benefits).  
4.80.   With respect to cross -border trade in services, some provisions from C hapter 9 are  also 
incorporated into and form a part of Chapter 13 and apply to treatment of cross -border financial 
service suppliers supplying the financial services specified in Annex 13 -A to the Agreement .84 This 
is the case with respect to disciplines on national and MFN treatment, formal requirements, and 
market access (Articles 9.3 , 9.4 and  9.6). Article 9.5 (MFN treatment ) is also incorporated into and 
made a part of Chapter 13.  The incorporated provisions apply subject to certain conditions as 
indicated in Article 13.7.  
4.81.   The provisions of Chapter 12 (domestic regulations) are also incorporated into and made a 
part of Chapt er 13. They, nevertheless, do not apply to licensing requirements  and procedures, 
qualification requirements or procedures pursuant to  a non -conforming measure maintained by 
Canada  as set out in its Schedule to Annex III -A to the Agreement ; a non -conforming measure 
maintained by the EU  as set out in its  Schedule to Annex I  to the Agreement , to the extent that 
such measure s relate to financial services ; and,  as set out in Article 12.2.2(b) (Scope), to the 
extent that such measure relates to fi nancial services. For Canada, that provision lists cultural 
industries and, as set out in its Schedule to Annex II, social services, aboriginal affairs, minority 
affairs, gambling and betting services, and the collection, purification, and distribution of water. 
For the EU, it lists  audiovisual services and, as set out in Annex II  to the Agreement , health, 
education, and social services, gambling and betting services, and the collection, purification, and 
distribution of water.  
4.82.   Chapter 13 also contains dis ciplines on transfer and processing  of information (Article 
13.15),.  It also covers the areas of effective and transparent regulation of financial services, self -
regulatory organisations , payment and clearing systems  and as well as new financial services 
(Articles 13.11 through 13.14).  
4.83.   Specific disciplines on consultations; dispute settlement, including for investment disputes  in 
financial services  are contained in Articles 13.19 through 13.21.   
4.84.   Through their Joint Interpretative Instrument85 the Parties, inter alia , confirm  that they may 
regulate the provision of public services , such as social security and insurance in the public 
interest. They confirm that compulsory social security and insurance schemes are excluded from 
the Agreement or are exempted from  liberalization obligations under the Agreement on the basis 
of the reservations they have taken on social and health services.  
4.85.   The Agreement establishes a Financial Services Committee in Article 13.18 to, inter alia , 
supervise the implementation of Chapte r 13.  Moreover, the dialogue on the regulation of the 
financial services sector within the Financial Services Committee shall be based on the principles 
and prudential standards agreed at the multilateral level (Annex 13 -C to the Agreement ). 
                                                
83 This is the case for the provisions covering treatment of investors and of covered investment; 
compensation for losses; expro priation; transfers; subrogation; denial of benefits; and formal requirements.  
84 Annex 13 -A clarifies the coverage Article 13.7. It also identifies, for the EU, some exceptions that 
apply only to some EU Member States.  
85 Joint Interpretative Instrument on the Comprehensive Economic and Trade Agreement (CETA) 
between Canada and the European Union and its Member States, made at the time of the signature of the 
Agreement.  WT/REG389/1  
 
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  4.5.6.2   International maritime transport services   
4.86.   The rules governing international maritime transport services are contained in Chapter 14.  
While Chapter 14 applies to measures of a Party relating to the supply of international maritime 
transport services, such measures are also subject to Chapter 8 (investment) and 9 (cross -border 
trade in services), as applicable. Chapter 14 does not apply to fishing vessels as defined under a 
Party's law.  
4.87.   Chapter 14 contains obligations applicable to international maritime transport services with 
respect to access to ports and port services on a non -discriminatory basis;  the re -positioning by a 
Party of ow ned or leased empt y containers that are carried on a non -revenue basis between the 
ports of a Party; the supply of feeder services between the ports of a Party; the prohibition of 
cargo -sharing arrangement s with a third country concerning any international  maritime transport 
services; the prohibition to require to transport all or part of any international cargo by vessels 
registered in a Party or owned or controlled by nationals of that Party; and the prohibition to adopt 
measures that prevent internationa l maritime transport service suppliers of a Party from directly 
contracting with other transport service suppliers for door -to-door or multimodal transport 
operations (Article  14.3). The obligations of Chapter 14 are subject to the non-conforming 
measures listed in Annex I to the agreement and to the reservations contained in Annex II to the 
Agreement  which are applicable to sectors, subsectors or activities falling under international 
maritime transport services .86 
4.5.6.3   Telecommunication Services87 
4.88.   The rules governing telecommunications are contained in Chapter 15 , which applies to a 
measure adopted or maintained by a Party relating to telecommunications networks or services, 
subject to a Party's right to restrict the supply of a service in accordance with its  reservations as 
set out in its Schedule to Annexes I or II  to the Agreement . Chapter 15 does not however apply to 
a measure by a Party affecting the transmission by any means of telecommunications, including 
broadcast and cable distribution, o f radio or t elevision programming intended for reception by the 
public.  
4.89.   Chapter 15  contains provisions on access to, and use of, public telecommunications 
transport networks or services;  competitive safeguards on major suppliers; access to essential 
facilities; inter connection; authorization to supply telecommunications services; universal service; 
scarce resources; number portability; regulatory authorities; resolution of telecommunication 
disputes , including recourse to regulatory authorities, and appeal and review of regulatory 
authority determinations or decisions; transparency; and forbearance (Articles 15.3 through 
15.14).  
4.90.   In case of inconsistency between Chapter 15 and another Chapter, Chapter 15 prevails to 
the extent of the consistency (Article 15.15).   
5  GENERA L PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  Rules governing general transparency disciplines are contained in Chapter 27.  Articles 27.1 
through 27.5 list requirements for publication, provision of information, administrative 
proceedings, review and appeal, and cooperation on promoting increased transparency.  
5.2.  In addition  to Chapter 27 , the Agreement also establishes specific transparency requirements 
in a number of other Chapters.  
                                                
86 Under the Agreement, "international maritime transp ort services" means the transport of passengers 
or cargo by a sea -going vessel between a port of one Party and a port of the other Party or of a third party, or 
between ports of EU Member States, as well as direct contracting with suppliers of other transp ort services to 
ensure door -to-door or multimodal transport operations, but not the supply of such other transport services.  
87 Under the Agreement, "telecommunications services" means all services consisting of the 
transmission and reception of signals by any electromagnetic means but does not include economic activity 
consisting of the provision of content through telecommunications.  WT/REG389/1  
 
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  5.2  Current payments and capital movements  
5.3.  The Parties shall authoriz e any payments  and transfers on the current account of the balance 
of payments between the Parties, in freely convertible currency and in accordance with the 
relevant IMF provisions (Article 30.4). The y agree to consult each other with a view to facilitating 
the movemen t of capital between them by continuing to implement policies to liberali ze the capital 
and financial account, and by supporting a stable and secure framework for long term investment 
(Article 30.5).  Moreover, each Party shall permit all transfers relating  to a covered investment to 
be made without restriction or delay in a freely convertible currency and at the market rate of 
exchange applicable on the date of transfer. This shall not prevent a Party from applying in an 
equitable and non -discriminatory man ner and not in a way that would constitute a disguised 
restriction on transfers, its laws against bankruptcy, insolvency or the protection of the rights of 
creditors; issuing, trading or dealing in securities; criminal or penal offences; financial reportin g or 
record keeping of transfers when necessary to assist law enforcement or financial regulatory 
authorities; and the satisfaction of judgements in adjudicatory proceedings (Article  8.13).  
5.3  Exceptions  
5.4.  The rules governing exceptions are contained in Chapter  28. General and security exceptions 
are contained in Articles 28.3 and 28.6. Article 28.7 contains a number of exceptions related to 
taxation measures, while Articles 28.8, 28.9,  and 28.10  refer, respectively, to exceptions to the 
disclosure of certain information; applicable to culture; and to WTO Waivers. In addition, Article s 
13.16  and 13.17 contain exceptions related to financial services, in particular measures maintained 
or introduced for prudential reasons ,.  
5.3.1   General exceptio ns 
5.5.  With respect to trade in goods  and Section B (Establishment of investment) and 
C (Non-discriminatory treatment) of Chapter 8 (Investment) , Article XX of GATT 1994, is 
incorporated into and made part of the Agreement (Article 28.3, first paragraph ). With  respect to 
trade in services and investment , (Section B and C of Chapter 8), language largely replicating that 
of Article XIV (a), (b) and (c) of GATS is used in the Agreement (Article 28.3 second paragraph ). 
Through Article 19.3, elements of the general exception are also made applicable to rules of 
Chapter 19 on Government procurement.  
5.3.2   Security exceptions  
5.6.  Article 28.6  largely replicates the provisions in Article XXI of GATT 1994 and in Article  XIVbis 
of the GATS for measures related to national security. As in the case of general exceptions, 
through Article 19.3, elements of the security exception are also made applicable to rules of 
Chapter 19 on Government procurement.  
5.3.3   Taxation  
5.7.  As a principle, the application of the Agreement shall  apply to tax ation measures . The 
Agreement does not affect the rights and obligations of either Party under any tax convention. In 
the event of any inconsistency between the Agreement and a tax convention,  the tax convention 
shall prevail to the extent of the inconsist ency (Article 28.7) . 
5.4  Accession and Withdrawal  
5.8.  Article 30.10 governs the  impact of accession of new EU Member States on the Agreement. 
The Agreement  does not contain any other accession provisions. Termination is  governed by 
Article 30.9  and takes place 180 days after the date of the written notice given by a Party .  
5.5  Institutional framework  
5.9.  Administrative and institutional provisions are contained in Chapter 26.  
5.10.   The CETA Joint Committee is established by Article 26.1 . It is responsible for all questions 
concerning trade and investment between the Parties and the implementation and application of WT/REG389/1  
 
- 49 - 
 
  this Agreement. It shall  supervise and facilitate the implementation and application of the 
Agreement  and further its general aims, supervise the work of all speciali sed committees and 
other bodies established under the Agreement, seek appropriate ways and methods of preventing 
problems that might arise or of resolving disputes, and consider any matter of interest relating to 
an area covered by the Agreement . Those dec isions are binding on the parties, subject to the 
completion of any necessary internal requirements and procedures . The CETA Joint Committee 
may also make recommendations (Article 26.3).   
5.11.   A number of specialized committees are also established by the Agree ment. They are 
identified in Article 26.2.  The institutional framework established by the Agreement is summarized 
by Chart 5.1 below .88 
Chart 5.1 Institutional Framework  
 
 
5.12.   CETA contact points are established to monitor the work of all institutional bodies 
established under the Agreement; to coordinate preparations for committee meetings; to follow up 
on any decisions made by the CETA Joint Committee, as appropriate; to receive a ll notifications 
and information provided pursuant to the Agreement; to respond to any information requests; and 
                                                
88 The Parties communicate that no meetings had yet taken place at the time the factual presentation 
was drafted. They also i ndicate that the formal meeti ngs of the CETA Joint Committee  are scheduled to start in 
September 2018 . They also clarify that, in the meantime, major  milestones  have been reached, such as  the 
sharing of the  lists of co -chairs for all committees , an ongoing  discussion s on the rules of procedure for the 
CETA Joint Committee and specialised Committee. The rollout of the governance structure is also scheduled to 
take place throughout 2018 . 
CETA Joint Committee  
(Art. 26.1)  
Committee on Trade in Goods (Art. 2.13)  
Committee on Agriculture (Art. 2.13 and 26.2)  
Committee on Wines and Spirits (Art. 26.2)  
Joint Sectoral Group on Pharmaceuticals (Art. 26.2)  
Committee on Services and Investment (Art. 8.44)  
Joint Committee on Mutual Recognition of Professional 
Qualifications (Art. 11.5)  
Joint Customs Cooperation Committee (Art. 6.14)  
Joint Management Committee for Sanitary and Phytosanitary 
Measures (Art. 5.14)  
Committee on Government Procurement (Art. 19.19)  
Financial Services Committee (Art. 13.8)  
Committee on Trade and Sustainable Development  
(Art. 22.4 and 26.2)  
Regulatory Cooperation Forum (Art. 21.6)  
CETA Committee on Geographical Indications  
(Art. 20.22 and 26.2)  
Source:  WTO Secretariat based on the Agreement.  
 WT/REG389/1  
 
- 50 - 
 
  to consider any other matter that may affect the operation of the Agreement as mandate d by the 
CETA Joint Committee (Article 26.5).  
5.13.   Chapter 25 contains disciplines with respect to bilateral dialogues and cooperation. In 
particular, building upon their well -established partnerships, the Parties agree to facilitate 
cooperation on issues of common interest  including biotechnology, trade in forest pr oducts, raw 
materials issues, and science, technology, research and innovation issues (Article 25.1) .  
5.14.   Cooperation and information exchange on issues in connection with biotechnology products 
shall take place in the bilateral d ialogue on agricultural b iotech market access issues, which was 
established by the Mutually Agreed Solution reached on 15 July 2009 between the Parties following 
the WTO dispute EU – Measures Affecting the Approval and Marketing of Biotech Products  
(WT/DS292). Article 25.2 identifies some of the issues of mutual interest to the Parties that may 
be part of the dialogue.  
5.15.   Bilateral dialogue, cooperation and exchange of information and views on the production, 
trade, and consumption of forest products shall be carried out in the Bilateral Dialogue on Forest 
Products. Article 25.3 identifies some of the issues of mutual interest to the Parties that may be 
part of the dialogue.  
5.16.   Cooperation should also be established and maintained on raw materials, including 
minerals, metals and agricultural products with an industrial use. A Bilateral Dialogue on R aw 
Materials is created for that purpose and Article 25.4 identifies some of the issues of mutual 
interest to the Parties that may be part of the dialogue.  
5.17.   Cooperation is also to be strengthened in the areas of science, technology, research and 
innovation. Cooperative activities in these areas shall be encouraged, developed and facilitated in 
support of, or supplementary to the Agreement for Scientific and Technological Cooperation 
between the EU and  Canada (done at Halifax on 17 June 1995). Article 25.5 identifies the 
principles on which these activities should be based . 
5.6  Dispute settlement  
5.18.   The rules governing dispute settlement are contained in Chapter 29  and in Annex 29  to the 
Agreement  containing r ules of procedure for arbitration (29 -A); a code of conduct for arbitrators 
and mediators (29 -B); and rules of procedure for mediation (29 -C). 
5.19.   The Agreement provides that recourse to the dispute settlement provisions of Chapter 29 is 
without prejudice to r ecourse to dispute settlement at the WTO or under another agreement to 
which the Parties are party . However, when a dispute has been initiated, either under the WTO  
Agreement , or under any other agreement to which the Parties are party,  or under the Agreem ent, 
the Party shall not bring a claim seeking redress for the breach of the substantially equivalent 
obligation under the other agreement, unless the forum selected fails for procedural or 
jurisdictional reasons to make findings (Article 29.3 ). Moreover, nothing in the Agreement shall 
preclude a Party from implementing the su spension of obligations authoriz ed by the WTO Dispute 
Settlement Body , and a Party may not invoke the WTO Agreement to preclude the other Party 
from suspending obligations pursuant to this Chapter . 
5.20.   Chapter 29 contains disciplines on consultations and mediation (Section B); dispute 
settlement procedures and compliance (Section C); as well as general provisions (Section D) 
covering rules of procedure, general rule of interpretation, rulin gs of the arbitration panel, and 
mutually agreed solutions (Articles 29.16 through 2 9.19). 
5.21.   The provisions under Section C set out  the applicable procedures, including the request for 
the establishment of an arbitration panel; the composition  of the panel ; the establishment of a list 
of arbitrators; the issuance of interim and final panel reports; as well as urgent proceedings, and 
disciplines on compliance with the final panel report, including the reasonable period of time for 
compliance , the temporary rem edies in case of non-compliance , and the review of measures taken 
to comply after the suspension of obligations.   WT/REG389/1  
 
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  5.22.   The rules in the Chapter  are largely inspired by those of the WTO dispute settlement 
mechanism at the panel stage. Chart 5.2 below summarizes the main steps of the dispute 
settlement mechanism established by the Chapter . 
Chart 5.2 State -to-State Dispute Settlement Mechanism established by the Agreement  
 
 
5.23.   In the event of a dispute  with respect to financial services , chapter 29 applies as modified 
by Article 13.20. In particular, the CETA Joint Committee may establish a list , under that article, of 
at least 15 individuals who are willing and able to serve as arbitrators. These individuals shall have 
expertise or experience in financial services law or regulation or in the practice thereof. They shall 
also comply with the Code  of Conduct in Annex 29 -B to the Agreement . 
5.24.   An investment court system (ICS) is established in Section F of Chapter 8  with a view to 
resolving investment disputes between investors and States .89 Under Article 8.18 (scope90), an 
investor of a Party may submit to the tribunal constituted under Section F of Chapter 8 a claim 
that the other Party has breached an obligation under Section C of Chapter 8  (non-discriminatory 
treatment ) with respect to the expansion, conduct, operation, management, maintenance, use, 
enjoyment, and sale or disposal of its covered investment  or under Section D of Chapter 8  
                                                
89 A decision by Canada following a review under the Investment Canada Ac t (R.S.C. 1985, c.28 
(1st supplement) regarding whether or not to permit an investment that is subject to review, is not subject to 
the ICS, or to Chapter 29 (Annex 8 -C to the Agreement).  
90 A claim with respect to restructuring of debt issued by a Party ma y only be submitted accordance with 
Annex 8 -B to the Agreement.  
Source:  WTO Secretariat based on the Agreement.  
 
Consultations (Art. 29.4)  
Establishment and 
composition of an arbitration 
panel  
(Art. 29.6, 29.7, 29.8)  
(Annexes 29 -B) 
Proceedings  
(Art. 29.9, 29.10, 29.11)  
(Annex 29 -A) 
Final Panel Report  
(Art. 29.10)  
(Temporary) suspension of 
obligations by requesting 
Party (Art. 29.14)  
Compliance review  
(Art. 29.15)  
Compliance with the Final 
Panel Report  
(Art. 29.12, 29.13)  
Mediation (Art. 29.5)  
(Annex 29 -C) 
Ruling by the arbitral panel on disagreement on 
compliance and/or on disagreement on equivalence 
(Art. 29.14)  
Non-compliance  
(Art. 29.14)  
(Temporary) compensation   
(Art. 29.14)  WT/REG389/1  
 
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  (investment protection ) where it claims to have suffered loss or damage as a result of the alleged 
breach . Articles 8.19 through 8.4 4 cover inter alia: consultations; mediation; determination of the 
respondent for dispute with the EU or its Member States; procedural and other requirements for 
the submission of a claim to the Tribunal; submission of a claim to the T ribunal; proceedings unde r 
another international agreement; consent to the settlement of the dispute by the Tribunal; third 
party funding, constitution of the Tribunal; the Appellate Tribunal; the establishment of a 
multilateral investment tribunal and appellate mechanism; ethics;  applicable law and 
interpretation; claims manifestly without legal merit ; claims unfounded as a matter of law;  interim 
measures of protection; discontinuance; transparency of proceedings; information sharing; 
non-disputing Party;  final award; indemnificat ion or other compensation; and enforcement of 
awards ; role of the Parties; consolidation; the Committee on Services and Investment. Section F of 
Chapter 8 applies to investment disputes in financial services as modified by Article 13.21  and 
Annex 13 -B91 and under the conditions set out in Article 13.21 ). It is nevertheless important to 
note that the ICS is currently not applied as part of the provisional application of the Agreement. It 
will be fully in force only once all EU member States have ratified the Agreement according to their 
respective constitutional requirements.   
5.7  Relationship with other agreements concluded by the Parties  
5.25.   In Article 1.5, t he Parties affirm their rights and obligations with respect to each other under 
the WTO Agreement and other agreements to which they are party . 
5.26.   Article 30.8 clarifies the relationship between pre -existing agreements between the Parties 
and the Agreement. I n some cases, the Agreement replaces and supersedes, from the date of its 
entry into force, these agreements ( investment treaties listed in Annex 30 -A to the Agreement) .92 
In other cases, some pre -existing agreements are incorporated into and made part of t he 
Agreement  (with certain amendments set out in Annex 30 -B). In the case of the  provisional 
application of certain parts of the Agreement, the relationship  with pre -existing agreement is also 
clarified in Article 30.8 . 
5.27.   Annex 30 -D to the Agreement contains  a joint declaration by the Parties on countries that 
have established a customs union with the EU. The EU recalls the obligations of the se countries to 
align their trade regime to that of the EU, and for some  of them, to conclude preferential 
agreements w ith countries that have preferential agreements with the EU. In this context, Canada 
shall endeavour to start negotiations with the countries that have established a customs union with 
the EU, and whose goods do not benefit from the tariff concessions unde r the Agreement.  
5.28.   Table 5. 1 below shows the Parties' RTAs  in force , notified and non -notified, other than the 
Agreement.  
Table 5.1 EU – Canada: Participation in other RTAs (notified and non -notified in force), 
as of 16 November 2017  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EUROPEAN UNION  
EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Ghana  15-Dec-16 Goods  2017 GATT Art. XXIV  
EU - SADC* 10-Oct-16 
(4-Feb-2018 
for 
Mozambique)  Goods  2017 GATT Art. XXIV  
EU - Côte d'Ivoire  03-Sept-16 Goods  2008 GATT Art. XXIV  
EU - Georgia  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
                                                
91 Annex 13 -B contains an understanding on the application of, inter alia , Article 13.21.  
92 A claim may nevertheless be submitted under an agreement listed in Annex 30 -A to the Agreement 
under  certain conditions indicated in Article 30.8.  WT/REG389/1  
 
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  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EU - Republic of Moldova  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU - Ukraine  23-Apr-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Central America** 01-Aug-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru and 
Ecuador  01-Mar-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Eastern and Southern Africa 
States Interim EPA  14-May-12 Goods  2012 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV  
GATS Art. V  
EU - Papua New Guinea / Fiji  20-Dec-09 Goods  2011 GATT Art. XXIV  
EU - CARIFORUM States EPA  01-Nov-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
EU - Bosnia and Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU - Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU - Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU - Egypt  01-Jun-04 Goods  2004 GATT Art. XXIV  
EU - Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU - Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - San Marino  01-Apr-02 Goods  2010 GATT Art. XXIV  
EU - The former Yugoslav Republic 
of Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU - Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU - Tunisia  01-Mar-98 Goods  1999 GATT Art. XXIV  
EU - Palestinian Authority  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU - Turkey  01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area (EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU - Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  
EU - Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU - Norway  01-Jul-73 Goods  1973 GATT Art. XXIV  
EU - Iceland  01-Apr-73 Goods  1972 GATT Art. XXIV  
EU - Switzerland - Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  
EU - Overseas Countries and 
Territories (OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU - Kosovo  01-Apr-16 Goods  Not notified  
CANADA  
Canada - Ukraine  01-Aug-17 Goods  2017 GATT Art. XXIV  
Canada - Republic of Korea  01-Jan-15 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Canada - Honduras  01-Oct-14 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Canada - Panama  01-Apr-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
Canada - Jordan  01-Oct-12 Goods  2013 GATT Art. XXIV & GATS Art. V  
Canada - Colombia  15-Aug-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
Canada - Peru 01-Aug-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
EFTA - Canada  01-Jul-09 Goods  2009 GATT Art. XXIV  
Canada - Costa Rica 01-Nov-02 Goods  2003 GATT Art. XXIV  WT/REG389/1  
 
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  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Canada - Chile 05-Jul-97 Goods & Services  1997 GATT Art. XXIV & GATS Art. V  
Canada - Israel  01-Jan-97 Goods  1997 GATT Art. XXIV  
North American Free Trade 
Agreement (NAFTA)  01-Jan-94 Goods & Services  1993 
1995 GATT Art. XXIV  
GATS Art. V  
* The procedure for Mozambique's ratification is still ongoing, thus the agreement is not yet applied.  
** The notifications made in February 2013 (see WT/REG332/N/1 and S/C/N/680) stated that: 
"Provisional application of the Agreement by all signatory parties is expected in the course of the 
second quarter 2013"; Further notifications to confirm the dates of entry into force between the EU 
and Central American countries are awaited.  
Source:  WTO Secretariat.  
 
5.8  Government procure ment  
5.29.   Chapter 19  of the Agreement contains procedural rules applicable to Government 
Procurement and  cover s goods , services  and construction services,  as specified in the annexes of 
each Party's market access Schedule for Chapter 19 . Chapter 19  includes general principles, such 
as non -discrimination, and transparency, applicable to the covered procurements.  
5.30.   Annex 19 to the Agreement contains the Parties' market access schedules with respect to 
disciplines applicable to government procurement. Annex 19 lists: the central government 
entities93; sub-central governmental entities94; other procuring entities95; the covered goods96; the 
covered services97; the covered construction services98; exclusions to the coverage99; the media 
used to publish laws, regulations, ju dicial decisions, administrative rulings, procedures notices and 
statistics and awards regarding procurement covered by Chapter 19 .100 
5.31.   Article 19.3  includes the security and general exception s to the procedural  rules of Chapter 
19. Moreover, each Party's mar ket access schedule (i .e. Annex 19 -A for Canada and Annex 19 -B 
for the EU) also contains specific exclusions.  
5.32.   Chapter 19 also contains rules on transparency of procurement information (Article 19.5). 
The Parties are required to publish, inter alia , laws, regulations, and procedures regarding covered 
procurement ; notices of intended procurement, summary notices ;, conditions for participation in a 
procurement; qualification of suppliers  and the final date for the submission of tenders.  Article 
19.11 permits a Party to  provide for  its procuring entities to conduct negotiations with suppliers if 
the entity has indicated its intent to conduct negotiations in the notice of intended procurement or 
if the evaluation shows that no tender is obviously the most advant ageous  in terms of the specific 
evaluation criteria set out in the notice of intended procurement or tender documentation . Limited 
tendering  is permitted under certain circumstances including if no tenders were submitted or if 
those submitted do not confor m to the essential requirements of the tender documentation, or the 
                                                
93 Annex 19 -1 to the Agreement , , indicating the applicable thresholds for goods (SDR 130,000), 
services (SDR 130,000), and construction services (SDR 5,000,000); covering, for Canada, the central 
(federal) gov ernment entities; and, for the EU, the EU entities and the central government contracting 
authorities of EU member States.  
94 Annex 19.2 to the Agreement , indicating the applicable thresholds for goods (SDR 200,000), services 
(SDR 200,000), and construction  services (SDR 5,000,000); covering, for Canada, provincial and territorial 
entities; and, for the EU, all regional and local contracting authorities (as defined by Regulation 1059/2003), 
and all contracting authorities which are bodies governed by public law as defined by EU procurement directive  
95 Annex 19 -3 to the Agreement , indicating the applicable thresholds for goods (SDR 355,000), services 
(SDR 355,000), and construction services (SDR 5,000,000); and listing the corresponding procuring federal 
and sub-federal entities, covering, for Canada, the federal crown corporations and sub -federal government 
enterprises; and, for the EU, the utilities. It also identifies specific thresholds for goods (SDR 400,000), 
services (SDR 400,000), and construction serv ices (SDR 5,000,000) applicable to specific activities identified in 
Section B of Annex  19-3. 
96 Annex 19 -4 to the Agreement . 
97 Annex 19 -5 to the Agreement . 
98 Annex 19 -6 to the Agreement . 
99 Annex 19 -7 to the Agreement  containing general notes.  
100 Annex 19 -8 to the Agreement . WT/REG389/1  
 
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  tenders submitted were collusive, or if the goods and services can only be supplied by a particular 
supplier  and no reasonable alternative or substitute goods or services exist for any of the specified 
reasons . Limited tendering may not be used to avoid competition among suppliers or to 
discriminate against suppliers from the other Party or protect domestic suppliers (Article 19.12).  
Articles 19.13 and 19.14 cover rules relating to electron ic auctions; and treatment of tenders and 
awarding of contra cts.  
5.33.    Article 19.17 requires the Parties to set up a timely, effective, transparent and non -
discriminatory administrative or judicial review procedure through which suppliers could challenge 
a breach of the Chapter or a failure to comply with a Party's measures implementing the Chapter. 
Chapter 19 also provide s for negotiations to take place between the Parties not later than 10 years 
after the entry into force of the Agreement, with a view to further develop the quality of remedies, 
including a possible commitme nt to introduce or maintain pre -contractual remedies . With respect 
to the coverage of Chapter 19, disciplines concerning modifications and rectifications of the market 
access schedules are contained in Article 19.18.  
5.34.   Both Parties' commitments under the Agr eement build upon those they have  under the 
1994 Government Procurement Agreement ( GPA) negotiated under the auspices of the GATT/WTO  
and the revised GPA,  to which both Parties are part y. While the corresponding thresholds are kept 
unchanged, as compared to the ir commitments under the revised GPA, the applicability of the 
procurement commitments at central and sub -central governmental level and with respect to other 
entities  is expanded under the Agreement . For Canada, with the expansion  of government 
procurement commitments to new central government entities101; to other entities (such as Crown 
Corporations); and to more entities at the sub -central government entities .102 The procedural rules 
applicable to Government Procurement  contained in Chapter 19 are lar gely based on the 
procedural rules of the revised GPA.   
5.35.   Through their Joint Interpretative Instrument103 the Parties, inter alia , indicate that the 
Agreement maintain s the ability of procuring entities within the Parties to use environmental, 
social and labo ur-related criteria, such as the obligation to comply with and adhere to collective 
agreement s, in procurement tenders , in a way that is not discriminatory and does not constitute 
an unnecessary obstacle to international trade . 
5.36.   The Agreement establishes a Committee on Government Procurement, which shall meet, 
inter alia , to consider issues regarding public procurement that are referred to it by a Party, 
exchange information, and discuss any matter related to the operation of Chap ter 19 , and consider 
the promotion of coordinated activities to facilitate access for suppliers to procurement 
opportunities  (Article 19.19). Each Party shall also submit statistics relevant to the procurement 
covered by Chapter 19.  
5.9  Intellectual property r ights  
5.37.   Chapter 20  covers intellectual property rights. It complements the rights and obligations 
between the Parties under the WTO TRIPS Agreement.  
                                                
101 For instance: Canada Emission Reduction Incentives Agency; Canadian Environmental Assessment 
Agency; Canadian Grain Commission; Canadian Human Rights Commission; Canadian Northern Economic 
Development Agency, Canadian Polar Commission; Canadian Space Agency; Military Police Complains 
Commission; National Film Board; Office of Infrastructure of Canada; Office of the Commissioner of Lobbying; 
Office of the Communications Security Establishment Commissioner; Office of the Correctional Inves tigator of 
Canada; Office of the Director of Public Prosecutions; etc. Canada highlights that, for the first time in an RTA 
concluded by Canada, it has includes the coverage of municipalities, school boards, publicly funded academic, 
health and social serv ice entities.  
102 In particular in the case of newly covered entities in New Brunswick (District education councils; 
Universities; Community Colleges; an Regional Solid Waste Commissions); and municipalities; municipal 
organisations; and/or school boards and  publicly -funded academic, health and social service entities (in the 
case of Newfoundland and Labrador; Northwest Territories; Nunavut; Ontario; Prince Edward Island; and 
Saskatchewan in particular). Sub -federal Crown corporations are also covered under t he Agreement. In the 
case of the EU, the coverage under the Agreement is broadly similar to the one under the WTO revised GPA, 
with some adjustment made to the list of covered entities.  
103 Joint Interpretative Instrument on the Comprehensive Economic and Tr ade Agreement (CETA) 
between Canada and the European Union and its Member States, made at the time of the signature of the 
Agreement.  WT/REG389/1  
 
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  5.38.   Section A of Chapter 20 contains general provisions on intellectual property rights (IPRs). It 
includes the P arties' recognition of the importance of the Doha Declaration on the TRIPS 
Agreement and Public Health (adopted on 14 November 2001) and their commitment to contribute 
to the implementation of the Decision of the WTO General Council of 30 August 2003 as we ll as 
the Protocol amending the TRIPS Agreement (done at Geneva on 6 December 2005). Chapter 20 
does not affect the freedom of the Parties to determine whether and under what conditions the 
exhaustion of IPRs applies.  Disclosure of information is governed by Article 20.5.  
5.39.   Section B of Chapter 20 contains  the standards concerning IPRs and, in sub-sections A 
through G, in particular copyright and related rights; trademarks; geographical indications (GIs); 
designs; patents; data protection; and plant varieties .  
5.40.   With respect to copyright and related rights, the Agreement refers to international 
agreements the Parties shall comply with104 (Article 20.7); and contains specific disciplines 
applicable to broadcasting and communication to the public of performances (A rticle 20.8); 
protection of technological measures (Article 20.9); protection of rights management information 
(Article 20.10); liability of intermediary service providers (Article 20.11); and procedures and 
penalties applicable to camcording (Article 20.1 2). 
5.41.   With respect to trademarks, the Agreement refers to international agreements the Parties 
shall make reasonable efforts to comply with  and to accede to105 (Article 20.13 ); and contains 
specific disciplines applicable to  registration procedure (Article 20. 14); and exceptions to the rights 
conferred by a trademark (Article 20.15).  
5.42.   With respect to geographical indications  (GIs), the Agreement contains specific disciplines 
applicable to GIs identifying products falling within one of the product classes listed in Annex 20 -C 
to the Agreement . Annex 20 -A to the Agreement lists the GIs identifying a product originating in 
the territory of the EU (Part A) or of Canada (Part B)106 or a region or locality in those territor ies. 
Sub-section  C of Section B of Chapter 20 go verns the protection of GIs listed in Annex 20 -A to the 
Agreement (Article 20.19 ); homonymous GIs (Article 20.20); exceptions (Article 20.21); 
Amendments to Annex 20 -A to the Agreement (Article 20.22); and other protection 
(Article  20.23).  
5.43.   With respect to designs, the Agreement refers to an international agreement the Parties 
shall make reasonable efforts to accede to107 (Article 20.24); and contains specific disciplines 
applicable to  the relationship to copyright (Article 20.25).  
5.44.   With respect  to patents, the Agreement refers to international agreements  the Parties shall 
make reasonable efforts to comply with108 (Article 20.24); and contains specific disciplines 
applicable to sui generis protection for pharmaceuticals (Article 20.27); and patent linkage 
mechanisms relating to pharmaceutical products (Article 20.28).  
5.45.   With respect to data protection, the Agreement contains specific disciplines applicable to 
protection of undisclosed data related to pharmaceutical products (Article 20.29); and protec tion 
of data related to plant protection products (Article 20.30).  
                                                
104 Articles 2 -20 of the Berne Convention for the Protection of Literary and Artistic Works (done at Paris 
on 24 July 1971);  Articles 1 -14 of the WIPO Copyright Treaty (done at Geneva on 20 December 1996); Articles 
1-23 of the WIPO Performances and Phonograms Treaty (done at Geneva on 20 December 1996); and Articles 
1-22 of the International Convention for the Protection of Per formers, Producers of Phonograms and 
Broadcasting Organisations (done at Rome on 26 October 1961).  
105 To comply with Articles 1 -22 of the Singapore Treaty on the Law of Trademarks (done at Singapore 
on 27 March 2006); and to accede to the Protocol Relating  to the Madrid Agreement Concerning the 
International Registration of Marks (done at Madrid on 27 June 1989).  
106 Canada clarifies that, p rior to 2017 and the provisional application of the Agreement , it had a system 
for the protection of GIs only for wines  and spirits products. Therefore, Canada did not have any GIs for 
agricultural and food products to include in Part B of Annex 20 -A to the Agreement . The Agreement 
nevertheless  allows for the addition of GIs to Part A and B of Annex 20 -A in the future, whi ch is why an empty 
Annex was included for Canada.  
107 The Geneva Act of the Hague Agreement Concerning the International Registration of Industrial 
Design (done at Geneva on 2 July 1999).  
108 Articles 1 -14 and Article 22 of the Patent Law Treaty (done at Gene va on 1 June 2000).  WT/REG389/1  
 
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  5.46.   With respect to plant varieties, the Agreement contains the Parties' commitments to 
cooperate to promo te and reinforce the protection o f plant varieties on the basis of the 1991 Act of 
the International Convention for the Protection of New Varieties of Plants (done at Paris on 2 
December 1961).  
5.47.   Section C of Chapter 20 covers enforcement of IPRs and, beyond general obligations (Article 
20.32), contains specific disciplines with respect to persons entitled to seek application of 
procedur es and remedies (Article 20.33),  evidence and measures for preserving evid ence (Articles 
20.34 and 20.35),  information in the context of the collecti on of evidence (Article 20.36),  
provisional and precautionary measures, and other reme dies (Articles 20.37 and 20.38),  
injunctions (Article 20.39) , damages (Article 20.4 0), payment  of legal costs (Article 20.41),  and 
the presumption of authorship or ownership (Article 20.42).  
5.48.   Section D addresses border measures and,  in Articles 20.43 through 20.49, provides for 
rules on the scope of border measures; application by the right holder; provision of information 
from the right holder; security or equivalent assurance; determination as to infringement; 
remedies; and specifi c cooperation in the area of border measures.  
5.49.   Section E contains the Parties' agreement to cooperat e with a view to supporting the 
implementation of the commitments and obligations undertaken under Chapter 20.   
5.10  Other  
5.10.1   Water  
5.50.   According to Article 1.9, only Ch apters 22 (Trade and sustainable development) and 24 
(trade and environment) apply to water in its natural state, including water in lakes, rivers, 
reservoirs, aquifers and water basins, which, under the Agreement, is identified as not being a 
good or a pr oduct . Each Party has the right to protect and preserve its natural water resources. 
Nothing in the Agreement obliges a Party to permit the commercial use of water for any purpose, 
including its withdrawal, extraction or diversion for export in bulk .109 
5.51.   Through their Joint Interpretative Instrument the Parties, inter alia , confirm that the 
Agreement does not oblige either Party to permit the commercial use of water if it does not wish to 
do so. The Parties also affirm that the Agreement will not prevent t he reversal of a decision to 
allow the commercial use of water.  
5.10.2   Small and Medium sized Enterprises (SMEs)  
5.52.   Chapter 8 (investment) provides for additional flexibilities with respect to disputes involving 
small and medium -sized enterprises, including the possibility to hold consultations through 
videoconference or other means where appropriate (Article 8.19); and to propose that a sole 
Member of the Tribunal hear the claim (Article 8.23), such request being made before the 
constitution of the division of t he Tribunal (Article 8.27) . 
5.53.   Moreover, t he CETA Joint Committee shall consider supplemental rules aimed at reducing 
the financial burden on claimants who are natural persons or small and medium -sized enterprises. 
Such supplemental rules may, in particular, take into account the financial resources of such 
claimants and the amount of compensation sought  (Article 8.39) . 
5.54.   Furthermore, Chapter 19 (Government Procurement) establishes a Committee on 
Government Procurement that shall meet to, inter alia , consider th e promotion of coordinated 
activities to facilitate access for suppliers to procurement opportunities in the territory of each 
Party. These activities may include information sessions and initiatives to facilitate access for small 
and medium -sized enterpri ses. 
                                                
109 If a Party permits the commercial use of a specific water source, it shall do so in a manner consistent 
with the Agreement.  WT/REG389/1  
 
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  5.55.   Finally, t hrough their Joint Interpretative Instrument the Parties, inter alia , affirm, that the 
Agreement provides benefits to small and medium sized enterprises (SME's) for whom trying to 
meet the cost requirements of customers is a constant challen ge.  
5.10.3   Electronic commerce  
5.56.   The rules governing electronic commerce110 are contained in Chapter 16.  
5.57.   The Parties agree to promote the development of electronic commerce between them. 
Nevertheless, the Agreement does not impose an obligation on a Party to allow d elivery 
transmitted by electronic means except in accordance wit h the Party's obligations under another 
provision of the Agreement.  
5.58.   The Parties shall not impose customs duties, fees, or charges on a delivery111 transmitted by 
electronic means but this does not prevent Parties from impos ing internal taxes on digital products  
or other internal charges on a delivery transmitted by electronic means, provided it is imposed in a 
manner consistent with the Agreement (Article 16.3) . 
5.59.   The Agreement provides that each Party should adopt or maintain laws, regulations or 
administrative measures for the protection of personal information of users engaged in electronic 
commerce and, when doing so, shall take into due consideration international standards of data 
protection of relevant international organisations of which both Parties are a member 
(Article  16.4).  
5.60.   Considering the potential of electronic commerce as a social and economic development 
tool, t he Parties recognize, inter alia , the importance of facilitating the use  of electronic commerce 
by small and medium sized enterprises  (Article 16.5). The Parties  also agree to maintain a 
dialogue on issues raised by electronic commerce  (Article 16.6).  
5.61.   In the event of an inconsistency between Chapter 16 and another Chapter of t he 
Agreement, the other Chapter prevails to the extent of the inconsistency  (Article 16.7).  
5.10.4   Competition policy, monopolies and state enterprises  
5.62.   Chapter 17  contains di sciplines on competition policy, and Chapter 18 contains disciplines 
on state enterprise s, monopolies, and enterprises granted special rights or privileges.  
5.63.   On competition policy,  the Parties agree t o take appropriate measures to proscribe anti -
competitive business conduct. They shall cooperate on these matters relating to the proscription of  
anti-competitive business conduct in the free trade area in accordance with the Agreement 
between them regarding the application of their Competition Laws (done at Bonn on 17 June 
1999). Under the Agreement, Canada clarifies the coverage and binding natur e of its Competition 
Act (R.S.C. 1985, c. C -34), while the EU clarifies the coverage and binding nature of its rules on 
competition with respect to state enterprises, monopolies, and enterprises granted special rights. 
According to Article 17.4, nothing in  Chapter 17 shall be subject to any form of dispute settlement 
pursuant to the Agreement.  
5.64.   In Chapter 18, o n monopolies , state enterprises, and enterprises granted special rights or 
privileges, the Parties confirm their rights and obligations under Articles  XVII:1 through XVII:3 of 
the GATT 1994 (state trading enterprises), the Understanding on the Interpretation of Article XVII 
of the GATT 1994, and Articles VIII:1 and VIII:2 of GATS , which are incorporated into and made 
part of the Agreement . Chapter 18, m oreover, provides that each Party shall ensure that in its 
territory a covered entity accords for non -discriminatory treatment to a covered investment, or a 
good of the other Party or a service supplier of the other Party in the purchase or sale of a good or 
a service. It also provides that each Party shall ensure that a covered entity112 in its territory acts 
                                                
110 Under the Agreement, "electronic commerce" means commerce conducted through 
telecommunications, alone or in  conjunction with other information and communication technologies.  
111 Under the Agreement, "delivery" means a computer program, text, video, image, sound recording or 
other delivery that is digitally encoded.  
112 Under the Agreement, "covered entity" means: (i) a monopoly; (ii) a supplier of a good or service, if 
it is one of a small number of goods or services suppliers authorised or established by a Party, formally or in WT/REG389/1  
 
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  in accordance with commercial considerations in the purchase or sale of goods or the purchase or 
supply of services, including when such goods or servi ces are supplied to or by an investment of 
an investor of the other Party. At certain conditions, t he lat ter commitment does not apply in the 
case of a monopoly, to the fulfilment of the purpose for which the monopoly has been created or 
for which special rights or privileges have been granted (such as a public serv ice obligation or 
regional development); or in the case of a state enterprise, to the fulfilment of its public mandate.  
The non -discriminatory treatment provision (Article 18.4) and the commercia l considerations 
disciplines (Article 18.5) do not apply to the sectors set out in Article 8.2 (investment – scope) and 
Article 9.2 ( cross-border trade in services  – scope)  or to a measure of a covered entity if a 
reservation of a Party taken against a nat ional treatment or MFN treatment obligation, as set out 
in Annex I, II or III, would be applicable if the same measure had been adopted or maintained by 
that Party . Also excluded from the coverage of Chapter 18  is procurement of a good or service for 
gover nmental purposes and not with a view to commercial resale or with a view to use in the 
supply of a good or service for commercial sale . 
5.10.5   Labour, e nvironment  and sustainable development  
5.65.   The rules governing trade and labour, and trade and environment are cont ained in 
Chapter s 23 and  24, while Chapter 22 contains disciplines on trade and sustainable development . 
5.66.   With respect to trade and sustainable development , Chapter 22  states the Parties' 
objectives to , inter alia , promote sustainable development; enhance e nforcement of their 
respective labour and environmental laws; promote the full use of instruments in the regulation of 
trade, labour and environmental issues; and promote public consultations and participation in the 
discussion of sustainable development i ssues. Chapter 22 contains disciplines and commitments on 
transparency, and on cooperation and promotion of trade that support s sustainable development.  
5.67.   With respect to trade and labour , Chapter 23 re cognises the right of each Party to set its 
labour prior ities and to establish its levels of labour protection. It also affirms the Parties ' 
commitment to respect, promote and realize a number of fundamental principles and rights at 
work. The Parties' obligations as members of the International Labour Organization (ILO) and 
commitments under various ILO Declarations are also recalled. The Chapter addresses 
commitments with respect to uphold ing the levels of protection afforded in their labour law s and 
standards (Article 23.4). It also contains disciplines with respect to enforcement procedures, 
administrative proceedings and review of administr ative actions with respect to their labour laws  
(Article 23.5) . Public  debate and the promotion of public awareness  are encouraged  (Article 23.6) 
and an indicative list of cooperative activities to promote the objectives of the Chapter is included 
(Article  23.7).  
5.68.   With r espect to trade and environment, the Parties agree to enhance cooperation to protect 
and conserve the environment. Chapter 24 recognize the Parties' right to regulate and establish 
their own levels of environmental protection. The Parties ne vertheless reaffirm their commitments 
to effectively implement in their respective laws and practices, and the multilateral environmental 
agreement s to which they are party. The Parties commit to uphold the levels of environmental 
protection afforded in their respective laws (Article 24.5). The Chapter  also contains the Parties' 
commitments to provide access to remedies and procedural guarantees in cases of alleged 
violations of environmental laws (Article 24.6). The Parties agree to encourage public debate  and 
promote public awareness of their environmental laws (Article 24.7). When preparing and 
implementing measures aimed at environmental protection that may affect trade or investment 
between the Parties, each Party shall take into account relevant scient ific and technical information 
and related international standards, guidelines, or recommendations (Article 24.8). The y will make 
efforts to facilitate the  promotion of trade and investment in environmental goods and services 
(Article 24.9) . Parties also a gree on the importance of enhanced cooperation  and commit to 
cooperate on trade -related environmental issues of common interest  (Article 24.12 ). 
                                                                                                                                                  
effect, and the Party substantially prevents competition among those suppliers in its t erritory; (iii) any entity to 
which a Party has granted, formally or in effect, special rights or privileges to supply a good or services, 
substantially affecting the ability of any other enterprise to supply the same good or service in the same 
geographic al areas under substantially equivalent conditions, and allowing the entity to escape, in whole or in 
part, competitive pressures or market constraints; or (iv) a state enterprise.  WT/REG389/1  
 
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  5.69.   The Agreement contains specific disciplines on trade in forest products (Article 24.10) , 
including an undertaki ng by the Parties to promote the effective use of the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora (done at Washington on 3 
March 1973), with regard to timber species considered at risk. Parties also undertake to encourag e 
trade in forest products from sustainably managed forests and cooperate on initiatives to promote 
sustainable forest management, including initiatives designed to combat illegal logging and related 
trade. Subjects related to trade in forest products shal l be discussed by the Parties in the 
Committee on Trade and Sustainable Development or in the Bilateral Dialogue on Forest 
Products .113  
5.70.   Trade in fisheries and aquaculture products  is also addressed specifically (Article 24.11). 
The Parties undertake to: (i)  adopt o r maintain effective monitoring, control and surveillance 
measures, aimed at the conservation of fish stocks and the prevention of overfishing;  (ii) adopt or 
maintain actions and cooperate to combat illegal, unreported and unregulated fishing; (iii ) 
cooperate with regional fisheries management organisations with the aim of achieving good 
governance; and (iv) promote the development of an environmentally responsible and 
economically competitive aquaculture industry.  
5.71.   For any dispute  that arises under  Chapters 23 and/or 24, the Parties shall only have 
recourse to the rules and procedures provided for in these specific Chapters under Article 23.9 , 
23.10  and 23.11 (in the case of trade and labour) and  under Article s 24.14 , 24.15 and 24.16 (in 
case of trade and environment).  
5.72.   The Agreement establishes the Committee on Trade and Sustainable Development, which 
oversees the implementation of Chap ters 22, 23 and 24 (Article 22.4). Each regular meeting or 
dedicated session may include a session with the public to discuss matters relating to the 
implementation of these Chapters , unless the Parties decide otherwise . Contacts points are also 
established for the implementation of Chapter 23 ( trade and labour , Article 23.8) and Chapt er 24 
(trade and environment matters , Article 24.13).  
5.73.   The Parties also agree to make use of existing or establish new consultative mechanisms to 
seek the views of civil society, with a balanced representation of employers, unions, labour and 
business orga nizations, and other stakeholders as appropriate, on issues relating to trade and 
labour and trade and environment.   
Through their Joint Interpretative Instrument the Parties, inter alia , confirm their common 
understanding of the provisions on trade and su stainable development, and labour and 
environmental protection. The Parties have committed to an early review of these provisions with 
a view to the effective enforceability of the labour and environment chapters. The JII also confirms  
that CETA creates a framework for the Parties to cooperate on trade -related labour issues of 
common interest and a sustained dialogue with civil society, to ensure that CETA encourages trade 
in a way that benefits workers and support s of labour protection measures.  
5.10.6   Regulatory  cooperation  
5.74.   The rules governing regulatory cooperation are contained in Chapter 21  and apply to the 
development, review and methodological aspects of regulatory measures that are covered by, 
among others,  the WTO TBT agreement, the WTO SPS agreement, the GATT 1994, the GATS, and 
Chapters 4, 5, 9, 22, 23, and 24 of the Agreement, covering respectively, TBT, SPS, cross -border 
trade in services, trade and sustainable development, trade and labour, and trade and 
environment  (Article 21.1) . Chapter 21 replaces the Framework on Regulatory Cooperation and 
Transparency between the Parties (done at Brussels on 21 December 2004). It therefore governs 
the activities previously undertaken in the context of that Framework.  
5.75.   The Parties reaffirm their rights and obligations with respect to regulatory measures under 
the WTO TBT agreement, the WTO SPS agreement, the GATT 1994, and the GATS.  
5.76.   The objectives of regulatory cooperation under the Chapter , which remains voluntary,  
include: (i) the contribution  to the protection of human life, health or safety, animal or plant life or 
                                                
113 See the provision on the Bilateral Dialogue on Forest Products in Article  25.3. WT/REG389/1  
 
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  health and the environment; (ii) the building of trust, and deepen ing of  mutual understanding of 
regulatory govern ance; (iii) the facilitation of  bilateral trade and investment and (iv) a contribution  
to the improvement of competitiveness and efficiency of industry  (Article 21.3) . Article 21.4 
identifies some possible regulatory cooperation activities. The Parties  shall, when appropriate,  
consider each other 's' regulatory measures or initiatives . They are not prevented under the 
Chapter  from adopting different regulatory measures or pursuing different initiatives (Article 21.5).  
5.77.   A Regulatory Cooperation Forum (RCF) is established under Article 21.6 to facili tate and 
promote regulatory cooperation between the Parties. The Parties agree to p eriodic ally exchange  
information of ongoing or planned regulatory projects in their areas of responsibility (Article 21.7). 
Consultations with private entities and the estab lishment of contact points for communication 
between the Parties on matters arising under Chapter 21 are also foreseen in the Agreement 
(Articles 21.8 and 21.9).  
5.78.   Through their Joint Interpretative Instrument, the Parties, inter alia , reaffirm , in the conte xt 
of their right to regulate, that the Agreement preserves their ability to adopt and apply their own 
laws and regulations that regulate economic activities in the public interest, to achieve legitimate 
public policy objectives such as the protection and promotion of public health, social services, 
public education, safety, the environment, public morals, social or consumer protection, privacy 
and data protection and the promotion and protection of cultural diversity. They also co nfirm that  
the Agreement provides a platform to facilitate voluntary cooperation between their  regulatory 
authorities.  
_______________  
 
 
 
 WT/REG389/1  
 
- 62 - 
 
  ANNEX 1  
INDICATORS OF TRADE LIBERALIZATION UNDER  THE AGREEMENT  
Canada  
1. Table A1.1 shows tariff liberalization by Canada in relation to imports from the EU  (by total, 
agricultural and non -agricultural products). In 2017 , Canada's average applied MFN rate was 5.4% 
overall ( 2.3% for non -agricultural products and 20.8% for agricultural products). 71.6% of 
Canada's tariff was duty free on an MFN basis; 75.1% of non -agricultural products and 55.2% of 
agricultural products were duty free. At the time of entry i nto force of the Agreement (2017 ), the 
EU's exporters enjoyed an absolute margin of preference of 2.4% vis-à-vis the prevailing MFN 
tariff; 2.2% for non -agricultural goods and 3.9% for agricultural products. The share of duty free 
lines applicable to imports from the EU  immediately at the entry into force of the Agre ement was 
97.8% (90.7% for agricultural products and 99.3% for non -agricultural products). This share of 
duty-free tariff lines will further increase to reach 98.5% in 2024  (100% for non -agricultural 
products and 91.7% for agricultural products), by which time Canada will have fully implemented 
its tariff elimination pr ogramme .  
Table A1.1 Canada: Indicators of MFN tariff rates and preferential rates for imports 
from  EU 
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-free 
tariff 
lines (%)  Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2017 5.4 19.6 71.6 20.8 50.9 55.2 2.3 9.4 75.1 
EU 2017 3.0 149.8  97.8 16.9 211.8  90.7 0.1 9.0 99.3 
2018 2.9 148.8  97.8 16.8 211.4  90.7 0.0 6.8 99.3 
2019 2.9 147.8  97.8 16.8 210.9  90.7 0.0 4.5 99.3 
2020 2.9 170.5  98.0 16.7 219.2  91.0 0.0 3.5 99.5 
2021 2.9 172.7  98.1 16.7 223.4  91.1 0.0 2.3 99.5 
2022 2.9 200.0  98.3 16.6 228.0  91.5 0.0 2.5 99.8 
2023 2.9 199.9  98.3 16.6 228.0  91.5 0.0 1.2 99.8 
2024 2.9 228.0  98.5 16.6 228.0  91.7 0.0 0.0 100.0  
a WTO Definition.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; For the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Canada.  
 WT/REG389/1  
 
- 63 - 
 
  2. Table A1.2 gives an indication of additional market access in Canada resulting from the 
entry into force of the Agreement for the EU 's top 25 global exports, which accounted for 25.4% of 
its global exports in 2 014-2016; these corresponded to 61 lines in Canada's tariff at the si x-digit 
level (using the HS  2017). In 2017 , prior to the entry into force of the Agreement, 37 of these 
tariff lines already had (MFN) duty free access to Canada's market. With the entry into  force of the 
Agreement, in 2017 , 16 of the 24 tariff lines, which were dutiable, became duty free for exports 
from the EU . Of the 8 remaining dutiable tariff lines, 2 will become duty -free in 2022 ; and the 
remaining 6 lines are to become duty free in 2024. At the end of the implementation period, none 
of the lines covering the EU 's top 25 global exports will be dutiable.  
Table A1.2 Canada: Market access opport unities under the agreement for EU's top 25 
exports to the world  
EU's top export products  
in 2014 – 2016  Access Conditions to Canada's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  
2017  
2022  
2024  
880240  Aeroplanes and other powered aircraft 
of an of an unladen weight > 15.000 
kg  2.5 0.0 0 1 0 0 0  
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel, n.e.s.  2.1 5.0 1 4 1 0 0  
870340  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with both spark -
ignition internal combustion 
reciprocating piston engine and electric 
motor as motors for propulsion  1.9 6.1 2 0 0 1 1  
870360  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with both spark -
ignition internal combustion 
reciprocating piston engine and electric 
motor as motors for propulsion, 
capable of being charged by plugging 
to external source of electric power  1.9 6.1 2 0 0 1 1  
300460  Medicaments containing any of the 
following antimalarial active principles: 
artemisinin "inn" for oral ingestion 
combined with other pharmaceutical 
active ingredients, or amodiaquine 
"inn"; artelinic acid or its salts; 
artenimol "inn"; artemotil "inn"; 
artemether "inn"; artesunate "inn"; 
chloroquine "inn"; dihydroartemisinin 
"inn"; lumefantrine "inn"; mefloquine 
"inn"; piperaquine "inn"; 
pyrimethamine "inn" or sulfadoxine 
"inn", put up in measured doses "incl. 
those for transdermal administration" 
or in for ms or packings for retail sale  1.8 0.0 0 1 0 0 0  
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes, put up in 
measured doses "incl. those for 
transdermal administration" or in 
forms or packings for retail sale  1.8 0.0 0 1 0 0 0  WT/REG389/1  
 
- 64 - 
 
  EU's top export products  
in 2014 – 2016  Access Conditions to Canada's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  
2017  
2022  
2024  
271012  Light oils and preparations, of 
petroleum or bituminous minerals 
which >= 90% by volume "incl. losses" 
distil at 210°c "astm d 86 method"  1.8 5.0 1 2 1 0 0  
710813  Gold, incl. gold plated with platinum, in 
semi-manufactured forms, for non -
monetary purposes  1.4 0.0 0 1 0 0 0  
870323  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with only spark -
ignition internal combustion 
reciprocating piston engine of a 
cylinder capacity > 1.500 cm³ but <= 
3.000 cm³  1.2 6.1 1 0 0 0 1  
841112  Turbojets of a thrust > 25 kn  0.7 0.0 0 1 0 0 0  
880330  Parts of aeroplanes or helicopters, 
n.e.s.  0.7 0.0 0 1 0 0 0  
841191  Parts of turbojets or turbopropellers, 
n.e.s.  0.7 0.0 0 1 0 0 0  
962000  Monopods, bipods, tripods and similar 
articles  0.6 6.0 5 4 5 0 0  
710231  Non-industrial diamonds unworked or 
simply sawn, cleaved or bruted  0.6 0.0 0 1 0 0 0  
711319  Articles of jewellery and parts thereof, 
of precious metal other than silver, 
whether or not plated or clad with 
precious metal  0.6 5.8 2 0 2 0 0  
870899  Parts and accessories, for tractors, 
motor vehicles for the transport of ten 
or more persons, motor cars and other 
motor vehicles principally designed for 
the transport of persons, motor 
vehicles for the transport of goods and 
special purpose motor vehicle s, n.e.s.  0.6 6.0 5 4 5 0 0  
848180  Appliances for pipes, boiler shells, 
tanks, vats or the like  0.5 0.0 0 1 0 0 0  
870840  Gear boxes and parts thereof, for 
tractors, motor vehicles for the 
transport of ten or more persons, 
motor cars and other motor vehicles 
principally designed for the transport 
of persons, motor vehicles for the 
transport of goods and special purpose 
motor vehicles, n.e.s.  0.5 6.0 2 2 2 0 0  
851762  Machines for the reception, conversion 
and transmission or regeneration of 
voice, images or other data, incl. 
switching and routing apparatus  0.5 0.0 0 1 0 0 0  
300220  Vaccines for human medicine  0.5 0.0 0 1 0 0 0  WT/REG389/1  
 
- 65 - 
 
  EU's top export products  
in 2014 – 2016  Access Conditions to Canada's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty 
free lines 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  
2017  
2022  
2024  
870350  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with both diesel 
engine and electric motor as motors 
for propulsion  0.5 6.1 1 0 0 0 1  
870370  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with both diesel 
engine and electric motor as motors 
for propulsion, capable of being 
charged by plugging to external source 
of electric power  0.5 6.1 1 0 0 0 1  
853710  Boards, cabinets and similar 
combinations of apparatus for electric 
control or the distribution of electricity, 
for a voltage <= 1.000 v  0.5 0.0 0 9 0 0 0  
854231  Electronic integrated circuits as 
processors and controllers, whether or 
not combined with memories, 
converters, logic circuits, amplifiers, 
clock and timing circuits, or other 
circuits  0.5 0.0 0 1 0 0 0  
870324  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with only spark -
ignition internal combustion 
reciprocating piston engine of a 
cylinder capacity > 3.000 cm³  0.5 6.1 1 0 0 0 1  
TOTALS  25.4 2.8 24 37 16 2 6 - 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Canada and UNSD, Comtrade database.  
 
The EU  
3. Table A1. 3 shows tariff liberalization by the EU  in relation to imports from Canada (by total, 
agricultural and non -agricultural products). In 2017 , the EU 's average applied MFN rate was 5% 
overall ( 4.3% for non -agricultural products and 8.7% for agricultural produ cts). 25.9% of the EU 's 
tariff was duty free on an MFN basis; 27.9% of non -agricultural products and 18.9% of agricultural 
products were duty free. At the time of entry i nto force of the Agreement (2017 ), Canada's 
exporters enjoyed an absolute margin of preference of 4.8% vis-à-vis the prevailing MFN tariff; 
4.1% for non -agricultural goods and 8.5% for agricultural products. The share of duty free lines 
applicable to imports from Canada immediately at th e entry into force of the Agreement was 97% 
(92% for agricultural products and 98.4% for non -agricultural products). During the following 
years, this share of duty -free tariff lines will further increase to reach 98.7% in 2024 (100% for 
non-agricultural pr oducts and 93.9% for  agricultural products).  WT/REG389/1  
 
- 66 - 
 
  Table A1.3 EU: Indicators of MFN tariff rates and preferential rates for imports from 
Canada  
Origin of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2017 5.0 6.9 25.9 8.7 12.2 18.9 4.3 6.0 27.9 
Canada  
 2017 0.2 11.3 97.0 0.2 10.5 92.0 0.2 11.5 98.4 
2018 0.2 9.6 97.0 0.2 9.8 92.0 0.1 9.6 98.4 
2019 0.1 7.9 97.0 0.2 9.0 92.0 0.1 7.6 98.4 
2020 0.1 7.5 97.4 0.2 10.7 92.5 0.1 6.5 98.7 
2021 0.1 5.7 97.4 0.1 10.4 92.5 0.1 4.3 98.7 
2022 0.1 6.0 97.8 0.1 10.1 92.5 0.0 3.8 99.3 
2023 0.0 4.7 97.8 0.1 9.8 92.5 0.0 1.9 99.3 
2024 0.0 11.6 98.7 0.1 11.6 93.9 0.0 0.0 100.0  
a WTO Definition.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by EU.  
 
4. Table A1.4 gives an indication of additional market access in the EU  resulting from the entry 
into force of the Agreement for Canada's top 25 global exports, which accounted for 44.6% of its 
global exports in 2014 -2016; these corre sponded to 81 lines in the EU 's tariff at the si x-digit level 
(using the HS  2017). In 2017 , prior to the entry into force of the Agreement, 35 of these tariff 
lines already had (MFN) duty free access to the EU 's market. With the entry into  force of the 
Agreement, in 2017 , 36 of the 46 tariff lines, which were dutiable, became duty free for exports 
from the EU . The 10 remaining dutiable tariff lin es will become duty -free in 2022  (2 lines); and 
2024 (8  lines). At the end of the implementation period, none of the lines covering Canada's top 
25 global exports will be dutiable.  
Table A1.4 EU: Market access opportunities under the agreement for Canada's top 25 
exports to the world  
Canada's top export products  
in 2014 - 2016  Access Conditions to EU's import markets  
HS number and description of the product  Share 
in 
global 
expor
ts 
(%) MFN 2017  No. of duty free 
lines under the 
agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  
2017  
2022  
2024  
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  13.7 0.0  2     
870340  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with both spark -ignition 
internal combustion reciprocating piston 
engine and electric motor as motors for 
propulsion  3.6 10.0 2   1 1  WT/REG389/1  
 
- 67 - 
 
  Canada's top export products  
in 2014 - 2016  Access Conditions to EU's import markets  
HS number and description of the product  Share 
in 
global 
expor
ts 
(%) MFN 2017  No. of duty free 
lines under the 
agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  
2017  
2022  
2024  
870360  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with both spark -ignition 
internal combustion reciprocating piston 
engine and electric motor as motors for 
propulsion, capable of being charged by 
plugging to external source of electric 
power  3.6 10.0 2   1 1  
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary purposes  3.1 0.0  1     
271121  Natural gas in gaseous state  2.2 0.0  1     
870324  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with only spark -ignition 
internal combustion reciprocating piston 
engine of a cylinder capacity > 3.000 
cm³  1.9 10.0 2    2  
870323  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with only spark -ignition 
internal combustion reciprocating piston 
engine of a cylinder capacity > 1.500 
cm³ but <= 3.000 cm³  1.7 10.0 3    3  
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel, n.e.s.  1.5 3.8 13 12 13    
271012  Light oils and preparations, of petroleum 
or bituminous minerals which >= 90% by 
volume "incl. losses" distil at 210°c "astm 
d 86 method"  1.1 4.7 10 2 10    
880240  Aeroplanes and other powered aircraft of 
an of an unladen weight > 15.000 kg  1.1 2.7 1  1    
310420  Potassium chloride for use as fertiliser  1.1 0.0  3     
100199  Wheat and meslin  1.0 0.0 1    1  
120510  Low erucic acid rape or colza seeds 
"yielding a fixed oil which has an erucic 
acid content of < 2% and yielding a solid 
component of glucosinolates of < 30 
micromoles/g"  1.0 0.0  2     
870829  Parts and accessories of bodies for 
tractors, motor vehicles for the transport 
of ten or more persons, motor cars and 
other motor vehicles principally designed 
for the transport of persons, motor 
vehicles for the transport of goods and 
special purpose motor vehicles  0.9 3.8 2  2    
470321  Semi-bleached or bleached coniferous 
chemical wood pulp, soda or sulphate  0.9 0.0  1     
270112  Bituminous coal, whether or not 
pulverised, non -agglomerated  0.8 0.0  2     
260300  Copper ores and concentrates  0.7 0.0  1     
760120  Unwrought aluminium alloys  0.6 6.0 2  2    
760110  Aluminium, not alloyed, unwrought  0.6 3.0 1  1    WT/REG389/1  
 
- 68 - 
 
  Canada's top export products  
in 2014 - 2016  Access Conditions to EU's import markets  
HS number and description of the product  Share 
in 
global 
expor
ts 
(%) MFN 2017  No. of duty free 
lines under the 
agreement  
Remain 
Dutiable  
Average 
MFN 
applied 
rate 
(%) No. of 
dutiable 
lines  No. 
of 
duty 
free 
lines  
2017  
2022  
2024  
840734  Spark -ignition reciprocating piston 
engine, of a kind used for vehicles of 
chapter 87, of a cylinder capacity > 
1.000 cm³  0.6 3.8 4  4    
480100  Newsprint as specified in note 4 to 
chapter 48, in rolls of a width > 28 cm or 
in square or rectangular sheets with one 
side > 28 cm and the other side > 15 cm 
in the unfolded state  0.6 0.0  1     
870899  Parts and accessories, for tractors, motor 
vehicles for the transport of ten or more 
persons, motor cars and other motor 
vehicles principally designed for the 
transport of persons, motor vehicles for 
the transport of goods and special 
purpose motor vehicle s, n.e.s.  0.6 3.7 3  3    
271600  Electrical energy  0.6 0.0  1     
440711  Pine "pinus spp." sawn or chipped 
lengthwise, sliced or peeled, whether or 
not planed, sanded or end -jointed, of a 
thickness of > 6 mm  0.6 0.0  3     
440712  Fir "abies  spp." and spruce "picea spp." 
sawn or chipped lengthwise, sliced or 
peeled, whether or not planed, sanded or 
end-jointed, of a thickness of > 6 mm  0.6 0.0  3     
TOTALS  44.6 2.9 46 35 36 2 8 - 
Note:   For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2017 nomenclature  
Source:  WTO estimates based on data provided by EU and UNSD, Comtrade database.  
 WT/REG389/1  
 
- 69 - 
 
  ANNEX 2  
SUMMARY OF THE PARTI ES' TARIFF RATE QUOT AS 
Access to the EU market  
1. The EU  offers duty -free tariff access under TRQ for the following originating goods :  
Table A2. 1 EU's commitments  
Product  Tariff lines  Year Aggregate Annual Quantity  
Processed shrimpa 16052900  
16052190  
Ex03061610  
Ex03061710  
Ex03062610  
Ex03062710  1 through to 7b 23,000c 
Frozen cod  03047190  
03047910  1 through to 7b 1,000c 
Common wheat of a 
quality, other than high 
quality  Ex 10019900  1 through to 7  100,000c,d 
Sweetcorn  07104000e 
20058000  1 1,333c 
 2 2,667c 
 3 4,000c 
 4 5,333c 
 5 6,667c 
 6 and each subsequent 
year 8,000c 
Bison  Ex02011000  
Ex02012020  
Ex02012030  
Ex02012050  
Ex02012090  
Ex02013000  
Ex02021000  
Ex02022010  
Ex02022030  
Ex02022050  
Ex02022090  
Ex02023010  
Ex02023050  
Ex02023090  
Ex02061095  
Ex02062991  
Ex02102010  
Ex02102090  
Ex02109951  
Ex02109959  1 and each subsequent 
year 3,000f 
Fresh or chilled beef and 
veal Ex02011000  
Ex02012020  
Ex02012030  
Ex02012050  
Ex02012090  
Ex02013000  
Ex02061095  1 5,140f,g 
 2 10,280f,g 
 3 15,420f,g 
 4 20,560f,g 
 5 25,700f,g 
 6 and each subsequent 
year 30,840f,g WT/REG389/1  
 
- 70 - 
 
  Product  Tariff lines  Year Aggregate Annual Quantity  
Frozen or other beef and 
veal Ex02021000  
Ex02022010  
Ex02022030  
Ex02022050  
Ex02022090  
Ex02023010  
Ex02023050  
Ex02023090  
Ex02062991  
Ex02102010  
Ex02102090  
Ex02109951  
Ex02109959  1 2,500f 
2 5,000f 
3 7,500f 
4 10,000f 
5 12,500f 
6 and each subsequent 
year 15,000f 
Pork 02031211  
02031219  
02031911  
02031915  
02031955  
02031959  
02032211  
02032219  
02032913  
02032915  
02032955  
02032959  
02101111  
02101119  
02101131  
02101139  1 12,500f,h 
 2 25,000f,h 
 3 37,500f,h 
 4 50,000f,h 
 5 62,500f,h 
 6 and each subsequent 
year 75,000f,h 
Note:  
a Prepared or preserved shrimps and prawns exported from Canada under Section B of Appendix 1 
(Origin Quotas) to Annex 5 of the Protocol on rules of origin shall not be imported in to the EU under 
this tariff rate quota.  
b  The duty -free quota ceases to apply at the end of year 7 , as the goods imported from Canada into 
the EU shall be duty free as from year 8 as per the EU's schedule . 
c  in Metric T onnes expressed in net weight . 
d The above aggregate duty -free quantities shall include, beginning in year 1, the 38,853 tonne 
allocation to Canada as set out in Commission Regulation (ED) No 1067/2008.  
e Only available during the time -period leading up to  the elimination of duties for products covered 
under HS 07104000, as per the staging category applicable to this item in the EU's Schedule under 
the Agreement) . 
f  in Metric Tonnes – carcass weight equivalent . 
g The aggregate annual duty -free quantities i n the table above shall be increased, beginning in year 1, 
by 3,200 metric tonnes product weight (4,160 metric tonnes carcass weight equivalent) resulting 
from the application of Council Regulation (ED) No 617/2009 of 13 July 2009 opening an 
autonomous tar iff quota for imports of high -quality beef.  
h The aggregate annual duty -free quantities in the table above shall be increased, beginning in year 1, 
by 4,624 metric tonnes product weight (5,549 metric tonnes carcass weight equivalent) pursuant to 
the volume  established in the EU's Canada -specific WTO tariff quota for pig -meat.  
Source:  WTO Secretariat based on Annex 2 -A to the Agreement.  
EU commitment with respect to its WTO Tariff Rate Quota for High Quality Fresh, Chilled 
and Frozen Meat of Bovine Animals  
2. Goods exported from Canada and imported into the EU through the EU's WTO quota for high 
quality meat of bovine animals of 11,500  tonnes shall be duty -free. WT/REG389/1  
 
- 71 - 
 
  Access to the Canadian market  
3. Canada offers duty -free tariff access under TRQ for the following originating goods;  
Table A2.2  Canada's commitments  
Product  Tariff lines  Year Aggregate Annual Quantitya  
Cheese  04061010  
04062011  
04062091  
04063010  
04064010  
04069011  
04069021  
04069031  
04069041  
04069051  
04069061  
04069071  
04069081  
04069091  
04069093  
04069095  
04069098  1 2,667 
 2 5,333  
 3 8,000  
 4 10,667  
 5 13,333  
 6 and each 
subsequent year  16,000  
Industrial cheese  Ex04061010  
Ex04062011  
Ex04062091  
Ex04063010  
Ex04064010  
Ex04069011  
Ex04069021  
Ex04069031  
Ex04069041  
Ex04069051  
Ex04069061  
Ex04069071  
Ex04069081  
Ex04069091  
Ex04069093  
Ex04069095  
Ex04069098  1 283 
 2 567 
 3 850 
 4 1,133  
 5 1,417  
 6 and each 
subsequent year  1,700  
a in Metric Tonnes expressed in net weight . 
Source:  WTO Secretariat based on Annex 2 -A to the Agreement.  
Canada's commitments with respect to its WTO Tariff Rate Quota for cheese to the EU  
4. Canada shall reallocate, beginning in year 1, 800 tonnes of its 20,411,866 kilogram WTO 
Tariff Rate Quota for cheese to the EU.  WT/REG389/1  
 
- 72 - 
 
  ANNEX 3  
SUMMARY OF THE PARTIES' ORIGIN QUOT AS 
Table A3.1 origin quota commitments by the EU  
Product  Tariff lines  Annual 
quota  Specific Modalities  
High-sugar 
containing 
products  Ex 130220  
Ex180610  
Ex180620  
Ex210112  
Ex210120  
Ex210690  30,000a 1) quota reviewed at the end of every 5 years for the first three 
consecutive 5 year period following entry into force of the 
Agreement (EIF).  
2) At the end of each 5 years for the first three consecutive 
5 year periods following EIF, the origin quota volume will be 
increased by 20% of the vol ume set in the previous period, 
provided that:  
in any one year during the first 5 years the fill -rate is at least 
60%;  in any one year in the second 5 year period the fill -rate is 
at least 70%; and  in any one year during the third 5 year 
period the fill -rate is at least 80%.  
3) Any increase in the quota volume will be implemented in the 
first quarter of the subsequent calendar year.  
4) This review will be conducted by the Committee on 
Agriculture. At the end of the review, if applicable, the Parties 
shall n otify each other in writing of an increase in the origin 
quota under (2) and the date of application u nder (3). The y 
shall ensure the increase in the origin quota and the date of 
application are publicly available.  
Sugar 
confectionery 
and 
chocolate 
preparations  1704 
180631  
180632  
180690  10,000a 1) The origin quota  will be reviewed at the end of every 5 years 
following EIF, provided that in any one year during the previous 
5 years, the quota fill -rate is at least 60%.  
2) The review will aim to increase the volume based on the 
examination of all relevant factors, in particular the fill rate, 
growth in Canadian global exports, and total EU imports, and 
other significant trends in trade of the products.  to which the 
origin quota applies.  
3) The rate of increase in the origin quota to be set for the 
subsequent 5 years, and will not exceed 10% of the volume in 
previous period.  
4) The review will be conducted by the Committee on 
Agriculture. Recommendation to increase the origin quota 
volume will be su bmitted to the CETA Joint Committee for a 
decision in accordance with Art. 30.2.2.  
Processed 
foods  1901 
Ex190211  
Ex190219  
Ex190220  
Ex190230  
190410  
190420  
190490  
1905 
200981  
Ex200989  
210390  
Ex210610  
Ex210690  35,000a 1) The origin quota reviewed at the end of every 5 year period 
following EIF, provided that in any one year during the previous 
5 years, the origin quota fill -rate is at least 60%.  
2) The review will aim to increase the volume based on the 
examination of all relevant fa ctors, in particular the fill rate, 
growth in Canadian global exports and total EU imports, and 
other significant trends in trade of the products concerned.  
3) The rate of increase in the origin quota will be set for the 
subsequent 5 years, and will not ex ceed 10% of the volume in 
previous period.  
4) The review  will be conducted  by the Committee on 
Agriculture. Recommendation to increase the origin quota 
volume shall be submitted to the CETA Joint Committee for a 
decision in accordance with Article 30.2.2.  
Dog and cat 
food 230910  
Ex230990  60,000a 1) The origin  quota reviewed at the end of every 5 years 
following EIF, provided that in any one year during the previous 
5 years, the quota fill -rate is at least 60%.  
2) The review will aim to increase the volume based on the 
examination of all relevant factors, in particular the fill rate, 
growth in Canadian global exports and total EU imports, and 
other significant trends in trade of the products concerned.  
3) The rate of increase in the origin quota will be set for the 
next 5 years, and will not exceed 10% of the volume in 
previous period.  WT/REG389/1  
 
- 73 - 
 
  Product  Tariff lines  Annual 
quota  Specific Modalities  
4) The review will be conducted by the Committee on 
Agriculture. Recommendation to increase the quota volume 
shall be submitted to the Joint Committee for a decision in 
accorda nce with Article 30.2.2.  
Fish and 
seafood  Ex030483  10a 1) For each product, if over 80% of the origin quota assigned is 
used in a calendar year, the origin quota allocation will be 
increased for the next calendar year by 10% of the quota in 
previous calen dar year. The growth provision will apply for the 
first time after the expiry of the first complete calendar year 
following EIF and will be applied for 4 consecutive years.  
2) Any increase in the origin quota volume will be implemented 
in the first quarter  of the subsequent calendar year. The EU 
shall notify Canada in writing if the condition in 1 is met, and if 
so, the increase in the origin quota and the date on which it 
applies. The parties will ensure the information will be made 
publicly available.  Ex030612  2,000  
160411  3,000  
160412  50 
Ex160413  200 
Ex160510  44 
160521 -
160529  5,000  
160530  240 
Textiles  510720  192,000b  
 
 
 
 
 
 
 
 
 
 
 
 
 
1) For each of the products, if more than 80% of an origin 
quota assigned to a product is used during a  calendar year, the 
origin quota allocation will be increased for the following year. 
The increase will be 3% of the origin quota assigned to the 
product in the previous calendar year. The growth provision will 
apply for the first tie after the expiry of t he first complete 
calendar year following the entry into force of the Agreement. 
The annual origin quota allocations may be increased during a 
period of up to ten years.  
2) Any increase in the origin quota volume will be implemented 
in the first quarter of  the subsequent calendar year. The 
importing Party shall notify the Party of export in writing if the 
condition in (1) (above) is met, and if so, the increase in the 
origin quota and the date on which the increase is applicable. 
The Parties shall ensure th at the increased origin quota and the 
date on which it becomes applicable are publicly available.  
3) At the request of a Party, the Parties shall meet to revise the 
product coverage quantities of the quota allocations based on 
developments in the relevant markets and sectors. The Parties 
may recommend revisions to the Committee on Trade in Goods.   520512  1,176,000  
 520859  60,000m2 
 520959  79,000m2 
 5402 4,002,000  
 540419  21,000  
 5407 4,838,000m2 
 550510  1,025,000  
 551311  6,259,000m2 
 5602 583,000  
 5603 621,000  
 5703 196,000m2 
 5806 169,000  
 581100  12,000m2 
 5903 1,754,000m2 
 590490  24,000m2 
 5906 450,000  
 590700  2,969,000m2 
 5911 173,000  
 6004 25,000  
 6005 16,000  
 6006 24,000  
 6306 124,000  
 6307 503,000  
Apparel  610130  10,000c 
 610230  17,000  
 6104 535,000  
 610620  44,000  
 610822  129,000  
 610892  39,000  
 610910  342,000  
 610990  181,000  
 6110 478,000  
 611241  73,000  
 6114 90,000 kgs  
 6115 98,000 kgs  
 6201 96,000  
 6202 99,000  
 6203 95,000  
 6204 506,000  
 6205 15,000  
 6206 64,000  
 621040  68,000kgs  
 621050  30,000 kgs  
 6211 52,000 kgs  
 621210  297,000  
 621220  32,000  
 621230  40,000  
 621290  16,000 kgs  WT/REG389/1  
 
- 74 - 
 
  Product  Tariff lines  Annual 
quota  Specific Modalities  
Vehicles  870321  100,000d 1) cumulation  with the US will be permitted provided there is a 
FTA in force between each Party and the US consistent with 
their WTO obligations and there is agreement on all applicable 
conditions, any material of HS 84, 85, 87 or 94 originating in 
the US used in the p roduction of a product of HS870321 -
870390 in Canada or the EU to be considered originating. 
Without prejudice to the outcome of the FTA negotiations 
between the EU and the US, discussions on applicable 
conditions will include consultations to ensure consis tency 
between the calculation method agreed between the EU and the 
US that in the Agreement for products of HS 87, if necessary. 
Accordingly, Table  D1 of Annex 5 -A to the Protocol on rules of 
origin  will cease to apply one year following the entry into 
application of such cumulation.  
2) cumulation is applicable with similar conditions for similar 
material used in the production of a product of HS 8702.  
3) The application of cumulation and deletion of Note 1 to 
Section D of Annex 5A  will be published in the  EU's Official 
Journal for information.  
4) If 7 years after EIF, cumulation with the US has not entered 
into force, upon request of a Party, both Parties shall meet to 
review provisions in Annex 5 to the Protocol on rules of origin.   870322  
 870323  
 870324  
 870331  
 870332  
 870333  
 870390  
a in Metric Tonnes expressed in net weight . 
b in kilograms net weight, unless otherwise specified . 
c  in units, unless otherwise specified . 
d in units . 
Source:  WTO Secretariat, based on Annex 5 -A to the Protocol on rules of origin.  
Table A3.2 origin quota commitments by Canada  
Product  Tariff lines  Annual quota  Specific Modalities  
Textiles  500720  83,000 m2   
 
 
 
 
 
 
 
1) For each product, if over 80% of the quota assigned is 
used in a calendar year, the quota allocation will be increased 
for the following year by 3% of the quota in the previous 
calendar year. The growth will apply for the first year after 
the expiry of the first complete calendar year following EIF. 
The annual quota allocations may be increased up to 
10 years.  
2) Any increase in the quota volume to be implemented in the 
first quarter of the next calendar year. Canada shall notify the 
EU in writing if the  condition in (1) is met, and if so, the 
increase in the quota and the date of application. The Parties 
shall ensure that the increased origin quota and the date on 
which it becomes applicable are publicly available.  
3) At the request of a Party, the Parti es shall meet to revise 
the product coverage quantities of the quota allocations 
based on developments in the relevant markets and sectors. 
The Parties may recommend revisions to the Committee on 
Trade in Goods.  
 
 
 
 
 
 
 
 
  511130  205,000 m2 
 5112 200,000  kg 
 520839  116,000 m2 
 540110  18,000 kg  
 540211  504,000 kg  
 5404 275,000 kg  
 5407 636,000 kg  
 5603 1,629,000 kg  
 560741  813,000 kg  
 560749  347,000 kg  
 570242  187,000 m2 
 570320  413,000 m2 
 570490  1,830,000 kg  
 5903 209,000 kg  
 590410  61,000 m2 
 591000  298,000 kg  
 5911 160,000 kg  
 630221  176,000 kg  
 630231  216,000 kg  
 630291  20,000 kg  
Apparel  610510  46,000a 
 6106 126,000  
 6109 722,000  
 6110 537,000  
 6114 58,000 kg  
 6115 1,691,000 pairs  
 620211  15,000  
 620293  16,000  
 620311  39,000  
 620312 -
620349  281,000  
 6204 537,000  
 620520  182,000  
 6210 19,000  WT/REG389/1  
 
- 75 - 
 
  Product  Tariff lines  Annual quota  Specific Modalities  
 6211 85,000 kg  
 6212 26,000 dozens  
a in units, unless otherwise specified . 
Source:  WTO Secretariat, based on Annex 5 -A to the Protocol on rules of origin.  
__________