RESTRICTED
WT/TPR/S/314
27 April 2015
(15-2221)  Page: 1/181
Trade Policy Review Body  
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
CANADA  
This report, prepared for the tenth Trade Policy Review of Canada, has been drawn up by the 
WTO Secretariat on its own responsibility. The Se cretariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Canada on its trade policies 
and practices.  Any technical questions arising from this report may be addressed to Angelo Silvy 
(tel: 022/739 5249), Denby Probst (tel: 022/739 5847), and Nelnan Koumtingue 
(tel: 022/739 6252).  
Document WT/TPR/G/314 contains the policy statement submitted by Canada. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Revi ew Body on Canada. This report was drafted in 
English. WT/TPR/S/314 • Canada 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 8 
1   ECONOMIC ENVIRONMENT ........................................................................................ 12  
1.1   Real Sector an d structural  reform ............................................................................... 12 
1.2   Fisca l Policy ........................................................................................................... .. 17 
1.3   Monetary and Ex change Rate  Policy ............................................................................ 19 
1.4   Balance of Payments ................................................................................................. 20 
1.5   Developments in Trade .............................................................................................. 22 
1.5.1   Merchandise Trade ................................................................................................. 22 
1.5.1.1   Composition of Trade ........................................................................................... 22 
1.5.1.2   Direct ion of trade ................................................................................................ 24 
1.5.2   Trade in Services ................................................................................................... 26 
1.6   Foreign Dire ct Invest ment ......................................................................................... 29 
1.7   Outlook ................................................................................................................... 30 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 32  
2.1   Genera l Framework .................................................................................................. 32 
2.1.1   New Developments ................................................................................................ 33 
2.2   Trade Poli cy Objectives ............................................................................................. 34 
2.3   Trade Agreements and Arrangements .......................................................................... 37 
2.3.1   Participat ion in the WTO ......................................................................................... 37 
2.3.2   Regional and pr eferential agreements ....................................................................... 37 
2.3.2.1   Reciprocal trade agreements ................................................................................. 38 
2.3.2.2   Unilateral pr eferential regimes .............................................................................. 40 
2.3.3   Other agreements and arrangements ........................................................................ 41 
2.3.3.1   Trade with Australia and New Zealand .................................................................... 41 
2.3.3.2   Anti-counterfeiting Trade Agreement ..................................................................... 41 
2.4   Investme nt Regime .................................................................................................. 41 
2.4.1   Investment Fram ework and Agreements ................................................................... 41 
2.4.2   Investme nt Canada  Act .......................................................................................... 41 
2.4.3   Other Invest ment Restri ctions ................................................................................. 43 
2.4.4   Investme nt Promotion ............................................................................................ 44 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 46  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 46 
3.1.1   Customs procedur es and requirements ..................................................................... 46 
3.1.2   Custom s valuation ................................................................................................. 49 
3.1.3   Rules of origin .......................................................................................................  50 
3.1.4   Tariffs ............................................................................................................... ... 51 
3.1.4.1   Applied MFN rate ................................................................................................ 51 
3.1.4.2   WT O bindings ..................................................................................................... 55 
3.1.4.3   Preferential tariffs ............................................................................................... 55 WT/TPR/S/314 • Canada 
 
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  3.1.4.4   Tariff remission ................................................................................................... 57 
3.1.5   Other charge s affecting imports ............................................................................... 58 
3.1.5.1   The GST/HST and provincial sales taxes ................................................................. 58 
3.1.5.2   Excise taxes and duties ........................................................................................ 59 
3.1.5.3   Other provincial taxes .......................................................................................... 60 
3.1.6   Import prohibitions, restrictions, an d licensing ........................................................... 61 
3.1.7   Anti-dumping, countervai ling, and safegu ard measures ............................................... 63 
3.1.7.1   Anti-dumping and countervailing measures ............................................................. 63 
3.1.7.2   Safeguards ........................................................................................................ 68 
3.1.8   Standards and othe r technical requirements .............................................................. 69 
3.1.9   Sanitary and phyt osanitary requ irements .................................................................. 71 
3.2   Measures Directly Affecting Exports ............................................................................. 73 
3.2.1   Export procedur es and requirements ........................................................................ 73 
3.2.2   Export taxes, charges, an d levies ............................................................................. 74 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 75 
3.2.4   Export suppo rt and pr omotion ................................................................................. 76 
3.2.5   Export finance, insurance, gu arantees ...................................................................... 77 
3.3   Measures Affectin g Production and Trade ..................................................................... 79 
3.3.1   Business framew ork and Ince ntives .......................................................................... 79 
3.3.1.1   Busi ness fram ework ............................................................................................ 79 
3.3.2   Incentives and subsidies ......................................................................................... 80 
3.3.3   Competition policy and price controls ........................................................................ 82 
3.3.3.1   Main regulatory and institutional framework ............................................................ 82 
3.3.3.2   International Cooperation ..................................................................................... 84 
3.3.3.3   Price Controls ..................................................................................................... 85 
3.3.4   State trading, state-owned enterprises, and privatization ............................................. 86 
3.3.4.1   Stated tr ading enterprises .................................................................................... 86 
3.3.4.2   Federal Crown Corporations .................................................................................. 87 
3.3.4.3   Other entities that operate with federal government participation ............................... 91 
3.3.4.4   Provincial Crown corporat ions and governme nt enterp rises ....................................... 91 
3.3.5   Governme nt procurement ....................................................................................... 92 
3.3.5.1   Overview ........................................................................................................... 92 
3.3.5.2   Developments .................................................................................................... 93 
3.3.5.3   Legal framework and process ................................................................................ 94 
3.3.5.4   WTO GPA an d other agr eements ........................................................................... 96 
3.3.6   Intellectual property rights ...................................................................................... 96 
3.3.6.1   Overview ........................................................................................................... 96 
3.3.6.2   Economic  Policy Context ...................................................................................... 97 
3.3.6.3   Use of the IP System ........................................................................................... 99 
3.3.6.4   International Initia tives and WTO pa rticipation ...................................................... 100  WT/TPR/S/314 • Canada 
 
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  3.3.6.5   The Patent System ............................................................................................ 103  
3.3.6.6   Copyright ......................................................................................................... 104  
3.3.6.7   The Trad emark System ...................................................................................... 106  
3.3.6.8   Geographic al Indications .................................................................................... 106  
3.3.6.9   IP Enforcement ................................................................................................. 107  
4   TRADE POLICIES BY SECTOR ................................................................................... 109  
4.1   Agriculture and fisheries .......................................................................................... 109  
4.1.1   Overview ............................................................................................................ 1 09 
4.1.2   Border  measures ................................................................................................. 110  
4.1.3   Domestic programmes .......................................................................................... 111  
4.1.3.1   Business Risk Mana gement (BRM) programmes ..................................................... 113  
4.1.3.2   Other programmes ............................................................................................ 115  
4.1.4   Export  measures ................................................................................................. 116  
4.1.5   Evolution of su pport and prot ection ........................................................................ 116  
4.1.6   Selected sub-sectors ............................................................................................ 118  
4.1.6.1   Wheat and barley .............................................................................................. 118  
4.1.6.2   Milk and dairy products ...................................................................................... 119  
4.1.6.3   Red meat and livestock industry .......................................................................... 121  
4.1.7   Fisheries ............................................................................................................. 122  
4.2   Mining and Energy .................................................................................................. 125  
4.2.1   Policy developments ............................................................................................. 125  
4.2.2   Energy ............................................................................................................... 127 
4.2.2.1   Crude Petroleum ............................................................................................... 127  
4.2.2.2   Natural Gas ...................................................................................................... 129  
4.2.2.3   Electricity ......................................................................................................... 130  
4.2.3   Minerals and Mining ............................................................................................. 131  
4.2.3.1   Overview ......................................................................................................... 13 1 
4.2.3.2   Trade .............................................................................................................. 131 
4.2.3.3   Policy ..............................................................................................................  132 
4.2.3.4   Sub-sectors ...................................................................................................... 133  
4.3   Services ................................................................................................................  134 
4.3.1   Financial services ................................................................................................. 134  
4.3.1.1   Overview ......................................................................................................... 13 4 
4.3.1.2   Regulato ry framew ork ....................................................................................... 136  
4.3.1.3   Banking services ............................................................................................... 137  
4.3.1.3.1   Comme rcial ba nks .......................................................................................... 137  
4.3.1.3.2   Cooperative fi nancial institutions ...................................................................... 139  
4.3.1.4   Insura nce services ............................................................................................ 140  
4.3.1.5   Securities ........................................................................................................ 1 42 
4.3.2   Postal and courier serv ices .................................................................................... 144  WT/TPR/S/314 • Canada 
 
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  4.3.3   Tourism .............................................................................................................. 145  
4.3.3.1   Overview and developments ............................................................................... 145  
4.3.3.2   Legal and Regulatory Framework ......................................................................... 147  
4.3.3.3   Polic y actions ................................................................................................... 14 9 
4.3.3.4   GATS and FTA commitments ............................................................................... 150  
4.3.4   Environmental services ......................................................................................... 150  
4.3.4.1   Regulatory Aspects ............................................................................................ 151  
4.3.4.2   Industry Structure ............................................................................................. 152  
4.3.4.3   Sustainable Technologies ................................................................................... 154  
REFERENC ES ................................................................................................................ 156  
5   APPENDIX TABLES .................................................................................................. 160  
 
CHARTS 
 
Chart 1.1 Contribution to percen t change in real  GDP, 2009-14  .............................................. 13 
Chart 1.2 Canadian dollar exchange rate an d effective exchange rate (CERI) , 2009-14 .............. 20 
Chart 1.3 Canada current account and net financial flows, 2007-14  ......................................... 21 
Chart 1.4 Merchandise trade by ma in HS sections, 2011 and 2014 .......................................... 24 
Chart 1.5 Merchandise trade by main origin and destinat ion, 2011 an d 2014 ............................ 26 
Chart 2.1 Imports by type of import re gime, 2013 ................................................................ 37 
Chart 3.1 Frequency distribution  of MFN tariff  rates,  2014...................................................... 53 
Chart 3.2 Remission of taxes and du ties, 2004-13 ................................................................ 58 
Chart 3.3 GST/HST and provincial sales tax rates, December 2014 ......................................... 59 
Chart 3.4 Anti-dumping investigatio ns initiated by region, 2011-14  ......................................... 65 
Chart 3.5 Countervailing duty investigations initiated by region, 2011-14 ................................. 65 
Chart 3.6 Trade in technology-intensive services, 2009-13 ..................................................... 98 
Chart 3.7 Charges for the use of inte llectual property  rights, 2005-13  ..................................... 99 
Chart 4.1 Agriculture and agri-food system's  contribution to GDP and employment, 2009 
and 2012 ...................................................................................................................... 109  
Chart 4.2 Trade of fish an d fish produc ts, 2011- 14 ............................................................. 123  
Chart 4.3 Oil production  and trade, 2010-14 ...................................................................... 129  
Chart 4.4 Gas production and trade, 2010-14  .................................................................... 130  
Chart 4.5 Canada's mineral pr oduction by va lue, 2014  ........................................................ 131  
 
TABLES 
 Table 1.1 Main econom ic indicato rs, 2010- 14 ....................................................................... 13
 
Table 1.2 Canada's Bala nce of Paym ents, 2011-14 ............................................................... 21 
Table 1.3 Canada's international transa ctions in services  by sect or, 2011- 14 ............................ 27 
Table 1.4 Canada's international transactions  in services by ma in partners , 2010-13  ................. 28 
Table 1.5 International investment  position by co untry, 2009-13  ............................................ 29 WT/TPR/S/314 • Canada 
 
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  Table 1.6 International investment position by sector (North American Industry 
Classification System (NAICS)), 2009-13 ............................................................................. 30 
Table 2.1 Government juri sdiction in  Canada ....................................................................... 32 
Table 2.2 Overview of Cana da's FTAs, Ja nuary 2015 ............................................................. 38 
Table 2.3 Overview of  new FTAs , 2011-15  ........................................................................... 39 
Table 2.4 Investment Ca nada Act, 2011-14 ......................................................................... 42 
Table 2.5 Investment Canada Act Statistics, 2011-14 ............................................................ 43 
Table 2.6 Foreign Investme nt Restrict ions, 2014 .................................................................. 44 
Table 3.1 Timeframes for submission of pre arrival information by mode .................................. 46 
Table 3.2 CBSA trade facilitation and border securi ty prog rammes .......................................... 47 
Table 3.3 Overview of preferential  rules of origin  criter ia, 2014............................................... 50 
Table 3.4 Structure of the MFN tariff schedule, selected yearsa ............................................... 51 
Table 3.5 Summary analys is of MFN tariff, 2014 ................................................................... 53 
Table 3.6 Tariff lines where applied rates exceed bound rates, 2014 ........................................ 55 
Table 3.7 Canada's preferenti al tariffs, 2007 and 20 14 .......................................................... 56 
Table 3.8 Excise duty rates, December 2014 ........................................................................ 60 
Table 3.9 Overview of some selected provin cial taxes and mark ups, December 2014 ................ 61 
Table 3.10 Main import restrictions and licensing requirements, 2014 ...................................... 62 
Table 3.11 Main export prohibitions, restrictions and licensing,  2014 ....................................... 75 
Table 3.12 Main TCS funding programmes and amount disbursed, 2010-14 .............................. 76 
Table 3.13 EDC finance, insurance, and guarantee programmes (as of 30 September 2014) ....... 78 
Table 3.14 Overview of corporations in Canada by type of  control,  2009-12  ............................. 79 
Table 3.15 Government Financing Programmes Listed by Canada Business Network, 
December 2014 ............................................................................................................... 80 
Table 3.16 Activities of the Business Deve lopment Bank of Canada, by net income, 
2011-1 4 ....................................................................................................................... .. 81 
Table 3.17 Overview of subsidies notified to the WTO, 2013 ................................................... 82 
Table 3.18 Overview of the Co mpetition Act provisions .......................................................... 83 
Table 3.19 Competition statistics,  2010/1 4 .......................................................................... 83 
Table 3.20 International Agreements and Arrangements, December 2014 ................................ 85 
Table 3.21 State-tradin g enterprise s, 2014  .......................................................................... 86 
Table 3.22 Crown Co rporatio ns, 2014 ................................................................................. 87 
Table 3.23 Ten largest provincial crown corporations, 2012 Report .......................................... 92 
Table 3.24 Federal and provincial gove rnment business ente rprises, 2009-12  ........................... 92 
Table 3.25 Overview of proc urement by ty pe, 2010 -13.......................................................... 93 
Table 3.26 Changes to procurement framework and no tices, 2011-14  ..................................... 94 
Table 3.27 Procurement by type of procedur e, all contracts abov e Can$25,000,  2010-13 ........... 95 
Table 3.28 National IP legislation and in ternational agreements, December 2014 .................... 101  
Table 4.1 Tariff rate quota levels  and fill rates,  2008 and 2012 ............................................. 110  
Table 4.2 Export subsidies: commitment levels and annual outlays, 2009-13 .......................... 116  
Table 4.3 Canada's dome stic support , 2009-1 1 .................................................................. 117  WT/TPR/S/314 • Canada 
 
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  Table 4.4 Evolution of support  and protecti on, 2008-13  ....................................................... 117  
Table 4.5 Indicators for selected agricultural commo dities, 2000- 14 ...................................... 118  
Table 4.6 Selected indicators of the Canadian dairy sector, 2008-13 ...................................... 119  
Table 4.7 Overview of Canada's  Crude Oil Indu stry, 2013  .................................................... 128  
Table 4.8 Overview of Canada's Natural Gas Industry, 2013 ................................................. 129  
Table 4.9 Overview of Canada's  Electricity In dustry, 2013.................................................... 130 
Table 4.10 Trade of minerals and mineral pr oducts, by selected countries, 2011-14 ................ 132  
Table 4.11 Financial institutions operating in Canada, 2010 and 2014 .................................... 135  
Table 4.12 Main regulatory bodi es of the bank ing sector ...................................................... 136  
Table 4.13 Requirements upon incorporation or establishment of a branch or 
representative office ....................................................................................................... 137  
Table 4.14 Provincial taxes on insurance premium, 2014 ..................................................... 142  
Table 4.15 Provincial and territo rial securities  regulators...................................................... 143  
Table 4.16 Tourism in dicators, 2011-13 ............................................................................ 146  
Table 4.17 Selected Tourism Related Legislation of the Provinces and Territoriesa .................... 148  
Table 4.18 Market structure of environmental se rvices, 2014 ............................................... 151  
Table 4.19 Overview of Sustaina ble Technology Sub-sectors ................................................ 154  
 
BOXES 
 Box 2.1 Priority trade se ctors ............................................................................................ 35
 
 
APPENDIX TABLES 
 
Table A1. 1 Canada's Balance of Payments, 2011-14 ........................................................... 160  
Table A1. 2 Merchandise exports and re-exports by HS sections, 2011-14 .............................. 161  
Table A1. 3 Merchandise imports by HS sections , 2011-14  ................................................... 162  
Table A1. 4 Merchandise exports and re-e xports by trading partner, 2011-14 ......................... 163  
Table A1. 5 Merchandise imports by trading part ner, 2011- 14 .............................................. 165  
 
Table A2. 1 Canada's Involvement in Dispute Settlement Cases, 
1 January 2011-1 January 2015 ....................................................................................... 167  
Table A2. 2 Selected Notifications to the WTO, 1 January 2011-1 January  2015 ...................... 169  
Table A2. 3 List of beneficiaries of Canada's  unilateral preference programmes as provided 
by Canada .................................................................................................................... 173 
 
Table A3. 1 Canadian participation in co nformity assessment ag reements, 2014 ..................... 176  
 
Table A4. 1 Main federal ag ricultural pr ogrammes............................................................... 178  
Table A4. 2 Information sharing agreements concluded by OSFI with foreign supervisors 
(as of Janua ry 2015)  ...................................................................................................... 180  WT/TPR/S/314 • Canada 
 
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  SUMMARY 
1. Canada has recovered well from the financial crisis and GDP growth has averaged 2.4% 
annually during the review period, 2011-14. Growth proceeded at a rate of 3% in 2011 but slowed to 2% and less during 2012-14, mainly due to weaker export growth and investment. Although 
growth during the period has not been comparable to pre-crisis levels, and is still below its 
potential rate, Canada's economy has generally shown resilience to external shocks. Growth in employment has lagged GDP growth, and the unemplo yment rate remains higher than pre-crisis 
levels, at approximately 6.9%. This also reflects an improvement in labour productivity, which in 
the past has lagged behind. While rich in natural resources, the Canadian economy is diversified with services and manufacturing also being significant contributors. The mining and energy sectors declined the most in the post-crisis period but gradually rebounded and showed strong growth, 
particularly since 2013. 
2. Canada has been implementing Economic Ac tion Plans (EAP) since 2009. These plans 
identify policy actions to be undertaken to overcome possible shortcomings, and aim to help spur 
the economy and create jobs, and promote pros perity. The 2014 EAP focused on balancing the 
budget, supporting jobs and growth, developing resources responsibly and supporting families and communities.  
3. As a result of a prudent fiscal policy, Canada posted federal operational surpluses until the 
global financial crisis. During the crisis, Canada implemented a temporary stimulus plan aimed at fostering growth. After the stimulus was no longer necessary, efforts have been made to rebalance and eliminate the deficit by 2015-16. The main points of the rebalacing strategy have been: to 
control program spending, introduce measures to enhance the fairness of the tax systems, and set 
the right conditions to allow for economic growth. The gross operating balance deficit declined as a 
share of GDP to around 0.2% of GDP in 2013. 
4. Canada has traditionally maintained a surplus in the current account of the balance of 
payments. However, since the financial crisis, the surplus has turned into a deficit, which has remained at around 3% of GDP during the review period. The contribution of net exports of goods 
and services to GDP growth was negative in 2011 and 2012, as imports expanded more rapidly 
than exports. This was reversed in 2013 and 2014,  when import growth weakened, which led to a 
narrowing of the current account deficit in 2014. 
5. During the review period, Canada's trade performance was marked by steady increases in 
imports and exports, both goods and services, with  a significant increase in merchandise exports 
in 2014, turning the merchandise trade balance positive after it remained negative during the previous two years. Canada's merchandise trade is ab out five times the size of services trade, both 
for imports and exports. Canada has certain vulnerabilities with respect to trade, as it is heavily 
reliant on the United States as its major market and has a narrow export product base, mainly energy and mineral products, and transportation and vehicles. Despite attempts to diversify 
exports away from the United States, the share of  exports actually increased during the period 
under review from 74% to 77% of total merchand ise exports, and the share of imports from the 
United States also increased from 50% to 54% of total imports. 
6. Canada's economy has long relied on its natural resource and mineral wealth. The mining 
and energy sectors are not only important to  the Canadian economy in terms of GDP and 
employment, but also contribute significantly to ex ports and have a positive impact on its balance 
of payments. During the review period, the natural resource sector had a significant impact on 
trade and the economy mainly due to fluctuations in energy prices. The production and export of 
energy products generally rose steadily during th e period, partially compensating for lower prices, 
but export volumes of natural gas declined slightly reflecting market situations in the United 
States, its sole export destination. In order to diversify exports of gas, Canada has launched 
several proposals, pending regulatory approval, fo r the development of LNG export facilities. Policy 
developments in the sector during the period include increased intergovernmental collaboration, enhanced efforts to consult with Aboriginal communities, and new legislation on transparency and 
reporting requirements. 
7. Building upon the success of its 2007 Global Commerce Strategy, Canada launched its 
Global Markets Action Plan (GMAP) in 2013 as a strategic plan to prioritize markets and support WT/TPR/S/314 • Canada 
 
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  commercial success in trade. In particular, the GMAP sets priorities and objectives for trade 
initiatives and trade promotion activities, and contains a pro-trade and investment plan. Further, it prioritizes 22 sectors where Canada has a strong competitive advantage and plans to develop strategies to help these sectors grow. 
8. In the trade area, Canada has focused its policies on expanding markets for its businesses 
mainly through the negotiation of reciprocal free trade agreements, including prioritising FTAs with a major economic impact and modernising existing FTAs. During the review period, five new FTAs 
have entered into force; with the Republic of  Korea, Colombia, Honduras, Jordan, and Panama. 
Another agreement, with the EU, was completed in mid-2014 but has not entered into force yet. Most of Canada's trade is conducted under a preferential scheme: approximately 61% of Canada's annual imports receive preferential treatment purs uant to a free trade agreement. NAFTA partners 
account for the vast majority of FTA imports, with the other 10 agreements together accounting 
for less than 2% of FTA imports. 
9. Canada's framework for foreign direct investment has remained broadly unchanged during 
the review period and its 1985 Investment Canada Act is still the main legislation governing 
investment. The Act requires notification or review of foreign investments to assess if they bring benefits to Canada and are not likely to injure national security. Changes to the Act introduced 
during the period under review fo cused on provisions related to state-owned enterprises (SOEs), in 
particular a definition for SOEs and guidelines on how SOEs are assessed under the Act. Certain investment restrictions remain in place in some sectors, including fishing, mining, oil sands, air transport, publishing, broadcasting, film distribu tion, and telecommunications. During the review 
period some of these restrictions were relaxed. For instance amendments to the 
Telecommunications Act partially liberalized foreign investment restrictions for telecom companies with a market share of 10% or less. Through GMAP, Canada has placed emphasis on pursuing 
more foreign investment promotion and protection agreements where there is potential for 
economic growth and interest to Canadian invest ors. Despite efforts to improve the framework to 
encourage more direct investment, FDI inflows grew but remained modest, and were outpaced by 
FDI outflows during the review period. 
10. In terms of customs procedures, the laws and th e system in place for the clearance of goods 
has not undergone any major changes since 2011 except with respect to some provisions on the seizure of goods and the further development of the Advance Commercial Information (ACI) 
program. Canada has, however, taken steps to furt her facilitate trade through its Release Prior to 
Payment program for a quicker release of goods, and through other programs that allow qualified importers to benefit from more efficient border proc esses, such as the Partners in Protection (PIP), 
the Customs Self-Assessment (CSA), and the Free and Secure Trade (FAST) programs. 
11. Canada's import tariff regime remained nearly unchanged since the last review, as the 
average applied tariff for agriculture products stayed at 22.5% during the period, while the 
average tariff for non-agricultural products declined slightly from 2.5% to 2.4%. Over two-thirds of 
Canadian tariff lines have zero duties; the application of non-zero rates is concentrated in a few areas, including agriculture, in particular dairy products, as well as clothing, and footwear. During the review period, Canada has undergone a tariff simplification process, harmonizing many duties 
within three ranges of tariffs, including the el imination of nuisance tariffs of less than 5%. 
Furthermore, a number of autonomous liberalization initiatives were undertaken in certain sectors such as machinery and equipment, baby clothes, sports equipment, and offshore drilling units. 
12. Canada continued to use anti-dumping and countervailing duty measures at an accelerated 
pace during the review period, as there were 43 initiations of anti-dumping investigations during the period, with a peak of 17 in 2013, and 21 initiations of countervailing duty investigations, 
during the period, with a peak of 12 in 2014. The majority of investigations involved countries 
from Asia. During the period under review, there have been no major changes to Canadian legislation for anti-dumping or contingency measures' investigations. While Canada maintains safeguard legislation, there were no changes to its legal framework and no investigations launched 
during the review period. 
13. There have been several key changes in the ar ea of sanitary and phytosanitary measures 
(SPS) including amendments to the Food and Drugs Act  (FDA) and the new Safe Food for 
Canadians Act (SFCA). FDA amendments give authorizations for the use of specific substances in 
foods (e.g. food additives) and health/nutrition cl aims for foods under certain conditions, and also WT/TPR/S/314 • Canada 
 
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  provide for an expanded authority to incorporate technical and non-technical standards, methods, 
guidelines or other documents, into marketing authorizations or into the Food and Drug Regulations. The 2012 Safe Food for Canadians Act (SFCA)  aims at stronger food safety rules and 
more consistent and effective inspection, and provides for increased penalties for non-compliance. 
It consolidates and replaces existing food legislation, except the FDA; its full entry into force 
remains pending pursuant to the issuance of implementing regulations. 
14. Canada's government procurement includes federal and provincial procurement, with 
provincial purchases slightly larger than fede ral purchases at approximately Can$20 billion per 
year compared to Can$15 billion per year for the federal government. There have been a few changes to Canada's federal government procurement framework during the review period, including new contracting limits for certain federal agencies, new reporting measures, and updates 
to threshold limits pursuant to FTA provisions. In April 2014, the revised GPA came into force for 
Canada. At the federal level, there have been no substantial changes in Canada's schedule, however significant changes occurred at the sub-federal level whereby all provinces and territories 
and 10 federal crown corporations are now included. 
15. Canada has a well-developed intellectual property  protection (IP) regime. During the review 
period, a number of IP developments have occurred in its domestic legislative activity as well as in 
its international trade policy. Since 2011, Canada has ratified two, and initiated accession to five 
international IP treaties, and has adopted or introduced a number of legislative changes to its IP regime, in particular the Copyright Modernization Act in 2012. In addition, there were a number of court cases related to IP matters, including a num ber of Supreme Court of Canada decisions on 
copyright. Use of the Canadian IP system by nati onals and foreigners has remained stable over the 
review period. 
16. Canada maintains an overall open economy but does provide support in the form of subsides 
and incentives at the federal, provincial and local levels. Some 755 support programs provide 
assistance to businesses in the form of grants, lo an guarantees, tax refunds and credits, and wage 
subsidies. Special financing programs are offered by the Business Development Bank of Canada 
and by Industry Canada for certain sectors incl uding aerospace and defence and small businesses. 
Canada has notified 58 subsidy programs in its latest subsidy notification to the WTO. The State is also involved in SOEs in Canada, known as Crown corporations, owned by federal or provincial governments; their operations are significant, with federal crown corporations accounting for 
approximately 0.7% of GDP and provincial crown corporations accounting for 2.7% of GDP. 
Furthermore, Canada maintains 3 federal and 13 provincial state trading enterprises. 
17. Canada maintains export duties on softwood lumber and unstamped 
domestically-manufactured tobacco products, as well as export controls or licensing on a specific 
list of controlled goods, mostly military and stra tegic goods. In addition, certain products exported 
to certain markets may be restricted or require a licence, such as certain forestry products in 
unprocessed form are limited to promote further processing in Canada. 
18. Canada's agriculture and agri-food sector remains a key sector of the economy, and 
accounted for 6.2% of GDP in 2012. Canada's large agricultural production exceeds domestic demand, thus international trade is critical and Canada is an important trader of agricultural 
products, in particular field crops such as wheat, barley, and oilseeds. Canada continues to use 
tariff rate quotas on 22 product groups, mainly in  the dairy, grains, and meat sub-sectors. The use 
and administration of TRQs has been relatively constant during the review period. Domestic policy 
and programmes are guided by the current policy framework, Growing Forward Framework 
Agreement  2 covering 2013-18, including a Can$3 billion investment by federal, provincial, and 
territorial governments with an emphasis on programs that promote innovation, competitiveness, 
and market developments. Canada's WTO export subsidy reduction commitments apply to 
11 product groups and for the marketing year running from August 2011 to July 2012 they declined by 2.3% to Can$88.3 million, representing  approximately 0.14% of agricultural exports. 
19. Canada's financial sector remains strong and has been credited with helping Canada emerge 
rapidly from the global economic crisis. The banking industry is relatively concentrated with the 
six largest banks accounting for approximately 90% of total assets among Canada's federally-regulated institutions. Foreign financial services providers must establish a commercial 
presence in Canada in order to carry out business. Canada revised its Capital Adequacy 
Requirements Guidelines in 2012 to implement the Basel III framework, and as of early 2014 it WT/TPR/S/314 • Canada 
 
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  fully implemented the Basel III capital rules on an accelerated basis and implemented the leverage 
ratio in advance of international timelines. Further, Canadian banks remain above the supervisory target capital ratios. 
20. Services in general remain the backbone of  the Canadian economy accounting for 70% of 
GDP during the period 2011-14. The tourism industry is an important services sector, accounting 
for approximately 2% of GDP and 1.4% of total investment in Canada; it also contributes 
significantly to employment, especially for small and medium sized enterprises. Tourism is also 
Canada's most important services export with tourism revenue from foreign travellers amounting to Can$16.4 billion in 2013. In 2011, Canada crea ted a Federal Tourism Strategy to provide a 
government-wide approach for the tourism sect or, positioning it for long-term growth and 
competitiveness. Environmental services is another important services sector for Canada with 
2012 sales of environmental services amounting to Can$2.3 billion of which environmental 
consulting services was the largest. Canada has recognised the importance of the environmental and sustainable technologies sector, having priori tized it under GMAP, and also seeking to further 
liberalize trade in this area pursuant to negotiations on environmental goods. 
 WT/TPR/S/314 • Canada 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Real Sector and structural reform  1.1.  Canada emerged rapidly from the global economic crisis in part due to timely macroeconomic 
policies, including monetary and fiscal stimulus, and its strong banking sector.
1 Since emerging 
from the global economic crisis, the Canadian ec onomy has fared relatively well, with positive 
economic growth, and growing imports and exports. Canada was the world's 11th largest economy 
in 2013.2 In 2014, nominal GDP reached Can$1.98 trillion and real GDP growth rates averaged 
2.4% during the review period, 2011-14. Growth has not been comparable to pre-crisis levels, Canada's performance has outpaced many other developed countries post crisis, and the economy has been resilient to external shocks. Canada ranks as the world's 13th largest merchandise 
exporter and the 11
th largest importer. Trade has increased post-crisis, but it remains subdued, in 
part due to weaknesses in Canada's main export markets. 
1.2.  Rich in natural resources, the Canadian economy is diversified with services, manufacturing, 
and the extraction3 industries being dominant. In terms of trade, Canada's exports, both in terms 
of destination and products, are heavily concentrat ed on one market, the United States, and a few 
products, mainly oil and gas, automotive products, and agriculture.  
1.3.  The growth of the Canadian economy du ring 2011-14 has been positive in each year, 
fluctuating between 1.9% and 3%, as a result of the varying performance of in its main contributors over the period (Chart 1.1 and Tabl e 1.1). There has been uneven growth in some 
GDP components, exports and business investment in particular. Business investment growth was 
strong in the early part of the review period (2011-12), expanding at annual rates above 7% in 
both years, but it has tapered off since 2013, to growth rates below 1%. Private consumption growth was slower than GDP growth in 2011 and 2012, but accelerated in 2013 and 2014, when it 
was the main supporter of growth; however, this has led to an increase in household debt. The 
contribution of net exports of goods and servic es to growth was negative in 2011 and 2012, as 
imports expanded more rapidly than exports. This, however, was reversed in 2013 and 2014, 
when import growth weakened, particularly on account of a decline in imports of services. 
1.4.  With respect to the growth performance of the different economic sectors, the share of GDP 
of the different sectors has remained relatively stable over the period. The main exceptions to this have been the manufacturing and mining sectors.  Manufacturing lost some share of GDP between 
2011 and 2013, but has picked up slightly in 2014. The mining, oil, and gas sectors declined the 
most in the post-crisis period but gradually rebounded and showed strong growth, particularly since 2013 (Table 1.1).  
                                               
1 OECD (2012).  
2 World Bank, Gross Domestic Product ranking 2013, online information. Viewed at: 
http://databank.worldbank.org/data/download/GDP.pdf. 
3 Mining, quarrying, oil and gas extraction. WT/TPR/S/314 • Canada 
 
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  Chart 1.1 Contribution to percent change in real GDP, 2009-14 
(Percentage point) 
-10-8-6-4-20246810
2009 2010 2011 2012 2013 2014Household  final consumption expenditure Government consumption and GFCF
Exports of goods & services Imports of goods & services
Business gross fixed capital formation
Total GDP growthOther
 
Source: WTO Secretariat, based on Statistics Canada, CANSIM Table 380-0100.  
1.5.  Growth in employment has lagged GDP gr owth, and the unemployment rate remains higher 
than pre-crisis levels, at approximately 6.9% (Table 1.1). This level is however, 1.1 percentage 
points lower than in 2010. This also reflects an  improvement in labor productivity, which in the 
past has lagged behind the productivity of other advanced economies, mainly due to Canada's insufficient capital deepening and relatively lower expenditure on research and development 
compared to other advanced economies. Th e Canadian economy has added approximately 
1.2 million jobs since the financial crisis and th e annual average employment growth rate has been 
about 1.2% during 2011-13, but has slowed in 2014, especially among core-age workers.
4 During 
the 2011-14 period most employment growth has b een in the private sector and involved full-time 
jobs.  
Table 1.1 Main economic indicators, 2010-14 
 2010 2011 2012 2013 2014
GDP at market prices (Can$ billion, current 
prices)a 1,663 1,770 1,831 1,894 1,976 
GDP per capita (Can$, current market prices) 48,912 51,603 52,615 53,807 55,662 
Real GDP (Can$ billion, chained 2007 dolllar, 
seasonally adjusted) 1,593 1,641 1,672 1,706 1,749 
Real GDP (annual % change) 3.4 3.0 1.9 2.0 2.5 
Employment (thousands, year average) 16,970 17,224 17,444 17,686 17,796 
Unemployment rate (share of labour force, year 
average) 8.0 7.5 7.3 7.1 6.9 
Business sector labour productivityb 101.4 102.9 102.9 104.0 106.7 
Population (millions)c 34.0 34.3 34.8 35.2 35.5 
Sectoral distribution of GDPd (%)      
Agriculture, forestry, fishing, and hunting 1.6 1.6 1.6 1.8 1.6 
Mining, quarrying, and oil and gas extraction 7.9 8.1 8.0 8.1 8.4 
   of which: oil and gas extraction 5.7 5.7 5.8 5.9 6.1 
                                               
4 Economic Action Plan 2013. Viewed at: http://actionplan.gc.ca/en/page/economic-action-plan-2013 
and Statistics Canada.  WT/TPR/S/314 • Canada 
 
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   2010 2011 2012 2013 2014
Utilities 2.5 2.5 2.4 2.5 2.4 
Construction 7.0 7.0 7.3 7.3 7.2 
Manufacturing 10.8 10.8 10.8 10.5 10.6 
Services 70.3 70.0 69.9 69.8 69.8 
   Wholesale and retail trade 10.7 10.9 10.8 10.9 11.0 
   Transport and warehousing 4.2 4.2 4.1 4.1 4.2 
   Finance and insurance 6.6 6.6 6.6 6.7 6.8 
   Real estate, renting and leasing and 
management of companies 12.3 12.4 12.4 12.5 12.6 
   Health care and social assistance 6.9 6.9 6.8 6.8 6.8 
   Public administration 7.2 7.1 7.0 6.8 6.7 
   Other services 22.4 21.9 22.2 22.0 21.7 
Federal Government operations 
(Can$ million)       
Gross operating balance -30,752 -22,352 -8,124 -3,203 -708e 
Revenue 231,913 244,185 253,912 263,206 202,881e 
   Taxes 196,396 207,122 214,701 221,683 169,628e 
      Taxes on income, profits and capital gains 150,684 160,165 166,388 171,601 130,299e 
      Taxes on goods and services 42,285 43,274 44,425 46,016 36,003e 
      Taxes on international trade and 
transactions 3,427 3,683 3,888 4,066 3,326e 
   Social contributions 17,366 18,619 20,142 21,674 19,234e 
   Grants, revenue 1,069 1,210 1,279 1,300 956e 
   Other revenue 17,082 17,234 17,790 18,549 13,063e 
Expense 270,961 275,323 271,303 275,886 210,824e 
   Compensation of employees 37,705 39,618 39,064 40,429 29,557e 
   Use of goods and services 21,789 21,853 21,431 21,278 16,206e 
   Interest expense 27,572 28,225 26,547 25,601 18,213e 
   Subsidies 5,563 5,621 5,100 4,750 3,234e 
   Grants, expense 84,088 84,709 81,186 84,328 66,772e 
   Social benefits 71,012 71,924 74,204 75,625 58,174e 
   Other expense 14,936 14,587 14,504 14,398 11,433e 
GDP by expenditures (% change)       
Final consumption expenditure 3.2 1.9 1.7 1.9 2.0 
   Household final consumption expenditure 3.5 2.2 1.9 2.5 2.8 
      Goods 3.1 1.5 1.4 2.8 3.4 
      Services 3.7 2.8 2.3 2.3 2.2 
   Non-profit institutions serving households' 
final consumption expenditure -0.8 6.5 2.3 1.6 1.3 
   General governments final consumption 
expenditure 2.7 0.8 1.2 0.4 0.3 
Gross fixed capital formation 11.5 4.8 4.8 0.4 0.4 
   Business gross fixed capital formation 11.7 7.9 7.0 0.8 0.9 
   Non-profit institutions serving households' 
gross fixed capital formation 6.9 0.2 4.8 0.4 0.2 
   General governments gross fixed capital 
formation 10.5 -7.1 -4.8 -1.6 -2.3 
Investment in inventories 91.1 2,513.9 -31.8 66.3 -39.9 
   Of which: business investment in inventories 91.1 2,513.9 -31.8 66.4 -39.9 
Exports of goods and services 6.9 4.6 2.6 2.0 5.4 
   Exports of goods 8.4 5.0 2.3 2.1 6.0 
   Exports of services -0.3 2.8 4.6 1.7 2.3 
Less: imports of goods and services 13.6 5.7 3.7 1.3 1.7 
   Imports of goods 14.0 5.9 3.1 1.9 2.4 
   Imports of services 12.1 4.7 6.2 -1.3 -1.3 
Statistical discrepancy 120.5 -58.4 93.7 -131.4 -117.3 
Gross domestic produc t at market prices 3.4 3.0 1.9 2.0 2.5 WT/TPR/S/314 • Canada 
 
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   2010 2011 2012 2013 2014
Monetary aggregatesf (Average % change)       
M1+ 11.2 7.7 9.7 8.1 7.5 
M1++ 13.3 8.7 9.7 8.4 7.4 
Prices and interest rates       
CPI (average % change) 1.8 2.9 1.5 0.9 1.9 
Core CPI (average % change)g 1.7 1.7 1.7 1.2 1.8 
Overnight rate (policy instrument) (%) 0.6 1.0 1.0 1.0 1.0 
90-day commercial paper (%) 0.8 1.2 1.2 1.2 1.2 
Canadian dollar effective exchange rate index 
(CERI)h 116.9 120.3 120.0 117.2 109.8 
Real effective exchange rate (consumer prices, 
2010=100) 100.0 102.0 101.7 98.4 92.1 
Real effective exchange rate (unit labor cost, 
2010=100) 100.0 102.5 101.3 98.5 92.8 
Can$ per US$ (period average) 1.0299 0.9891 0.9996 1.0299 1.097 a 
Current account balance (percentage of GDP) -3.5 -2.7 -3.3 -3.0 -2.2 
Trade in goods and services (percentage of 
GDP) 60.0 62.3 62.3 62.0 64.0 
a Seasonally adjusted at annual rates. 
b Labour productivity is a measure of real gross domestic product (GDP) per hour worked. 
c Population estimate for the whole year 2014. d According to the North American Industry Classification System (NAICS), 2002; the shares are 
based on seasonally adjusted GDP at basic prices, in chained 2007 dollars. 
e January - September 2014. f Gross M1 is currency outside banks plus personal checking accounts plus current accounts plus some 
adjustments to M1; M1++ is M1+ plus non-chequable notice deposits held at chartered banks, trust and mortgage loan companies, and credit unions/caisses populaires less interbank non-chequable notice deposits plus continuity adjustments. 
g Excludes eight most volatile  items and indirect taxes. 
h The Canadian-dollar effective exchange rate index (CERI) is a weighted average of bilateral 
exchange rates for the Canadian dollar against the U.S. dollar, the European Union euro, the 
Japanese yen, the U.K. pound, the Chinese yuan, and the Mexican peso. 
Source: Statistics Canada, CANSIM Tables 380-0064, 282-0087, 383-0008, 051-0001, 379-0031, 385-0032; 
IMF, World Economic Outlook (WEO) October 201 0; Bank of Canada, Banking and Financial 
Statistics, December 2010, and other online information. Viewed at: http://www.bankof canada.ca/en/graphs/a1-table.htm and http ://www.bank-banque-canada.ca/pdf/wfs.pdf. 
Department of Finance (2006), Fiscal Referenc e Tables. Viewed at: http://www.fin.gc.ca/frt-
trf/2010/frt-trf-10-eng.asp. 
1.6.  Canada has been implementing Economic Ac tion Plans (EAP) since the global recession in 
2009. The authorities consider that the implementation  of these plans, which identify policy actions 
to be undertaken to make up for possible shortcomings, has allowed Canada to achieve a solid job creation record, strong income growth, and a good economic performance.
5 During the review 
period, Canada continued to adopt EAP in order to help spur the economy, create jobs, and 
promote prosperity. In 2012, the Plan focused on  strengthening the immigration system to fill 
gaps in the labor market and improve needed skills. The 2013 EAP focused on creating a new 
infrastructure plan, investing in research and innovation, helping manufacturers and businesses 
succeed in the global economy, and connecting Canadians with available jobs. The particular 
subcomponents that have important trade and economic aspects include tax relief and cuts, the permanent elimination of tariffs on machinery and equipment and on industrial manufacturing 
inputs
6, support to the forestry sector, enhancement of the Free Trade Zone policies and 
                                               
5 Canada's Economic Action Plan online information. Viewed at: 
http://actionplan.gc.ca/en/blog/economic-action-plan-2014. 
6 Most of these tariffs were eliminated immediately in 2010, with the rest subject to a phase-out by 
2015. The Government has continued to work with Cana dians to identify additional such machinery and 
equipment and industrial inputs, with  an additional package of 70 tariffs eliminated in 2011, and several 
additional tariffs in 2012 and 2014. House of Commons (2009 and 2010). Canada Gazette online information. 
Viewed at: http://www.gazette.gc.ca/rp-pr/p2/2011/2011-12-07/html/sor-dors260-eng.htmlf, 2011-3; and 
http://www.gazette.gc.ca/rp-pr/p2/2012/2012-10-10/html/sor-dors197-eng.html, 
http://www.gazette.gc.ca/rp-pr/p2/2013/2013-03-27/html/sor-dors43-eng.html; and http://www.gazette.gc.ca/rp-pr/p2/2014/2014-07-02/html/sor-dors156-eng.php. WT/TPR/S/314 • Canada 
 
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  programs, modernizing Canada's General Preferential Tariff regime7, and expansion of Export 
Development Canada's role in the credit market. 
1.7.  The 2014 Economic Action Plan focused on: (i) balancing the budget (see below); 
(ii) supporting jobs and growth; (iii) developing resources responsibly, conserving Canada's 
natural heritage and investing in infrastructure and transportation by supporting the mining, 
forestry and agriculture sectors; investing in national parks and conservation initiatives; expanding tax support for clean energy; and making strategic investments in public infrastructure and 
transportation services; and (iv) supporting families and communities. With respect to the goal of 
promoting employment, the EAP suggests different policies to achieve this, including connecting Canadians with available jobs and helping them to  acquire the skills needed to get them hired or 
help them get better jobs; ensuring tr aining reflects labor market needs
8; launching new Labor 
Market Agreements for Persons With Disabilities9; fostering innovation, job creation and trade, and 
improving productivity10; measures to improve competitiveness including through training and 
monitoring of enterprises.11 Regarding the objective of developing resources responsibly, and 
investing in infrastructure and transportation by  supporting the mining, forestry and agriculture 
sectors, the Government committed to: provide Can$28 million over two years to the National Energy Board for comprehensive reviews of project applications and to support the Participant 
Funding Program; eliminate tariffs on mobile offshore drilling units used in offshore oil and gas 
exploration and development; provide Can$66.1 m illion over two years to renew the Atlantic 
Integrated Commercial Fisheries Initiative and the Pacific Integrated Commercial Fisheries Initiative; support mineral exploration by j unior companies by extending the 15% Mineral 
Exploration Tax Credit for flow-through share investors for an additional year; provide 
Can$90.4 million over four years to continue to support the Investments in Forest Industry Transformation program; provide Can$18 million over  four years for early intervention to prevent 
the spread of spruce budworm in Atlantic Canada and Quebec; and expand the types of farming 
livestock that qualify for tax deferral on sale by farmers dealing with extreme weather conditions.
12 
1.8.  With respect to the goal of investing in infrastructure and transportation, the EAP 2014 
committed: Can$165 million over two years on a cash basis to advance the construction of a new bridge for the St. Lawrence; Can$378 million over two years on a cash basis to advance the repair and maintenance of federal bridges in the Greater Montreal Area; Can$58 million over two years to 
support the continued operation of the Digby, Nova Scotia–Saint John, New Brunswick, Wood 
Islands, Prince Edward Island–Caribou, Nova Scotia, and Îles de la Madeleine, Quebec–Souris, Prince Edward Island ferry services; Can$40 million over two years on a cash basis to accelerate 
repair and maintenance work at small craft harbours across Canada; and Can$33 million over 
two years to support the divestiture of regional ports.
13 
                                               
7 The General Preferential Tariff (GPT) changes anno unced in Economic Action Plan 2013 went into 
effect on 1 January 2015. 
8 To this end, it was decided to launch the Canada  Job Grant, to be implemented between the federal 
Government of Canada and the provinces and territorie s. The Government also decided to renegotiate the 
Can$1.95-billion-per year Labor Market Development Agre ements to reorient training toward labor market 
demand. See. Economic Action Plan 2014 online information. Viewed at: http://actionplan.gc.ca/en/blog/economic-action-plan-2014. 
9 As announced in EAP 2013, the Government wi ll provide, as of 2014 Can$222 million annually, 
matched by the provinces and territories , over the next four years, through a new generation of Labour Market 
Agreements for Persons with Disabili ties. The new agreements will engage employers and disability community 
organizations to better meet the needs of persons with disabili ties and employers. 
10 To this end, the Government announced and implemented a number of targeted measures that 
support advanced research and inno vation, reduce red tape and help Canadian businesses become more 
competitive. These include: creating the new Canada Fi rst Research Excellence Fund with Can$1.5 billion in 
new funding over the next decade to help Canadian post-secondary institutions excel globally in research areas that create long-term economic advantages for Canada ; providing an additional Can$500 million over two 
years to the Automotive Innovation Fund, to support significant new strategic research and development projects and long-term investments in the Canadian au tomotive sector; and continuing to reduce the tax 
compliance and regulatory burden for small and medium-sized businesses  and other tax filers. 
11 Budget Canada online information. Viewed at: http://www.budget.gc.ca/2014/docs/bb/brief-bref-
eng.html. 
12 Budget Canada online information. Viewed at: http://www.budget.gc.ca/2014/docs/bb/pdf/brief-bref-
eng.pdf. 
13 Budget Canada online information. Viewed at: http://www.budget.gc.ca/20 14/docs/bb/pdf/brief-bref-
eng.pdf. WT/TPR/S/314 • Canada 
 
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  1.9.  Regarding the goal of supporting families and communities, some of the measures 
contemplated in the EAP 2014 include taking action to support and protect Canadian consumers by reducing taxes and tariffs, ensuring marketplace fairness, promoting competition in a number of industries (including financial services, telecommunications and air services), and improving 
product and food safety. With respect to measures to improve competition in the 
telecommunications market, EAP 2014 proposes capping wholesale domestic wireless roaming rates; providing telecommunications regulators with the power to impose administrative monetary 
penalties on companies that violate rules such as the Wireless Code; improving access to 
broadband in Rural and Northern Communities; investing Can$305 million over five years to extend and enhance broadband Internet service in rural and Northern communities; and legislating against unjustified cross-border price discrimination. Regarding the goal of strengthening food 
safety, EAP 2014 invests Can$390 million to this end. With respect to financial products and 
services, EAP 2014 advances the Government’s commitment to protect consumers by: engaging on developing a comprehensive financial consumer code that will better protect consumers; 
ensuring banks offer low-cost basic banking services that meet consumers’ banking needs; helping 
lower the costs that merchants pay to accept credit cards, while encouraging merchants to lower prices for consumers. 
1.10.  Furthermore, EAP 2014 announced the permanen t elimination of tariffs on Mobile Offshore 
Drilling Units (MODUs).
14 The Government enacted a moratorium on customs duties on temporarily 
imported MODUs, a moratorium that was extended in 2009.  
1.11.  In 2014, significant reforms to the Temporary Foreign Worker Program, and the Canada Job 
Bank supported the Government's work to connect Canadians with available jobs and strengthen 
the labor market. 
1.2  Fiscal Policy 
1.12.  As a result of a prudent fiscal policy, Canada posted federal operational surpluses until the 
global financial crisis. After the onset of the global economic and financial crisis, Canada implemented a temporary stimulus plan with a medium term plan aimed at eliminating the federal 
deficit as the economy recovered, by 2015-16.
15 The gross operating balance posted a deficit of 
1.8% of GDP in 2010; this deficit has been declin ing as a share of GDP in each of the following 
years, to some 0.17% of GDP in 2013. The medium-run strategy relies on controlling government spending, including federal wage costs, and not raising taxes. As of 2014, the path towards 
reaching a balanced budget was underway and on target, thus no further changes in fiscal policy 
were envisioned.
16  
1.13.  The main points of the strategy have been: controlling program spending; introducing 
measure to enhance the fairness of the tax systems, and setting the right conditions to allow for 
growth. Since EAP 2010, the Government has controlled direct program spending through targeted savings actions and broad-based reviews focused on reducing spending without compromising the 
delivery of priority services to Canadians. Taking into account the new measures in EAP 2014, 
direct program spending is projected to remain broadly in line with the 2010–11 level through to 2018–19. The authorities note that, in fact, direct program spending has declined for three consecutive years, a trend that had not been observed in decades.
17 The exception to this are 
federal transfers to individuals that provide income support, and transfers to other levels of 
government, including those for social programs and health care, which are expected to continue to grow through to 2018–19. 
1.14.  The Government of Canada expects to return to balanced budgets in 2015-16. The 
authorities estimate a surplus of Can$6.4 billion in 2015–16, after taking into account a Can$3.0 billion annual adjustment for risk. Economic Action Plan 2014 announced a number of 
measures to further reduce spending and make adjustment to tax collection. These include: a 
transition from the current situation where the Government pays 75% of benefit costs to equal 
                                               
14 House of Commons (2014a); and House of Commons (2014b). 
15 IMF (2011). 
16 IMF (2013) and Economic Action Plan 2013.  Viewed at: http://actionplan.gc.ca/en/page/economic-
action-plan-2013 and Statistics Canada.  
17 Budget Canada online information. Viewed at: http://www.budget.gc.ca/20 14/docs/bb/pdf/brief-bref-
eng.pdf. WT/TPR/S/314 • Canada 
 
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  cost sharing for retired federal employees who choose to participate in the Public Service Health 
Care Plan, as well as an increase in the minimum years of service required to be eligible for the plan; and entering into negotiations with collective bargaining agents to reform the disability and sick leave management system. It was expected that these savings measures, together with the 
adjustment of National Defence funding for major capital procurements would result in direct 
program spending in EAP 2014 remaining broadly in line with its 2010–11 level through 2018-19. In contrast, federal transfers to individuals that provide important income support and major 
transfers to other levels of government for social programs and health care would continue to grow 
over that horizon. These savings build on the previous actions taken to return to budgetary balance. The authorities have noted that, in total and since Budget 2010, the Government has announced savings that will reduce the deficit by more than Can$19 billion in 2015-16 and 
beyond, for a total of more than Can$117 billion in savings over the 2010–11 to 2018–19 period.
18  
1.15.  The Government has also undertaken a num ber of measures to improve the fairness and 
integrity of the tax system. In this respect, since 2006, and including measures proposed in EAP 
2014, the Government has introduced more than 85 measures to improve the integrity of the tax 
system. Measures taken in the framework of EA P 2014 to address international aggressive tax 
avoidance, improve tax integrity, strengthen tax compliance and enhance the fairness of the tax 
system are estimated to provide annual savings rising to Can$454 million in 2018–19, for a total 
of Can$1.8 billion from 2013–14 to 2018–19 .19 
1.16.  The Government has undertaken a number of studies and considered how tariffs affect 
consumers, and as of 1 April 2013 through its budget legislation, permanently eliminated MFN applied customs duties on baby clothing and certain sports and athletic equipment.
20 This 
represented Can$79 million in annual tariff relief, with the expectation that these savings would be 
passed on to consumers in the form of lowe r retail prices. Similar 2011 budget legislation 
introduced new tariff items to facilitate the processing of low value non-commercial imports arriving by post or courier, and simplified and consolidated the customs tariff to reduce customs 
processing burdens for importers.
21 
1.17.  The federal debt-to-GDP (gross domestic product) ratio increased during the global financial 
crisis, from 28.2% of GDP in 2008/2009 to 33.2% in 2011-12, before starting to decline. In 
2014/15, it is estimated at some 32% of GDP. The ratio is expected to continue declining in the 
next few years, to reach 27.0% in 2017–18, below its pre-recession low, putting the Government on its way towards achieving its target of 25% of GDP by 2021. 
1.18.  The authorities consider that balancing th e budget and reducing debt are not an end to 
themselves, but a means to increase Canada's economic potential, to improve employment 
opportunities and increase the standard of living  of Canadians. The authorities deem that the 
G o v e r n m e n t ’ s  p l a n  t o  r e t u r n  t o  b a l a n c e d  b u d g e t s  e n s u r e s  t h a t  t a x  r e v e n u e  i s  u s e d  t o  s u p p o r t  
important social services rather than paying interest costs, preserves Canada’s low-tax plan and 
allows for further tax reductions, fostering growth and the creation of jobs. It also helps to keep interest rates low, and strengthens Canada's ability to respond to longer-term challenges, such as 
population aging and global economic shocks.
22 
1.19.  As at March 2015, the 2015 Budget had not yet been approved. Its approval was delayed to 
April, at the earliest. The Government seems intent  on delivering a balanced budget, even with the 
recent decline in crude oil prices. However, some of the projections made in EAP 2014, considering 
higher oil prices, could need to be revised. 
                                               
18 Budget Canada online information. Viewed at: http://www.budget.gc.ca/2014/docs/bb/pdf/brief-bref-
eng.pdf. 
19 Budget Canada online information. Viewed at: http://www.budget.gc.ca/20 14/docs/bb/pdf/brief-bref-
eng.pdf. 
20 House of Commons (2013c).  
21 House of Commons (2011). 
22 Ministry of Finance (2014), The Road to Balance: Creating Jobs and Opportunities. Economic Action 
Plan 2014, the Budget in Brief, 11 February 2014. Viewed at: http://www.budget.gc.ca/2014/docs/bb/pdf/brief-bref-eng.pdf . WT/TPR/S/314 • Canada 
 
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  1.3  Monetary and Exchange Rate Policy 
1.20.  Canada's monetary policy is aimed at keeping a low and stable inflation rate. To this end, 
and to increase public accountability, the Federal Government and the Bank of Canada jointly announce an inflation-control target range. The inflation target is 2%, as measured by the 
consumer price index with a control range of 1% to 3% around this target. Inflation targeting has 
been in place in Canada since 1991. The Bank cons iders that by focusing on inflation the output 
gap between the potential and actual performance of the economy is kept as narrow as possible. 
The Bank of Canada carries out monetary policy by influencing short-term interest rates. It does 
this by raising and lowering the target for the overnight rate, which is the policy rate.
23  
1.21.  Since the crisis, and following its mand ate, the Bank of Canada has maintained an 
accommodative monetary policy. To this end, the Bank of Canada kept the policy interest rate 
stable at 1% throughout 2011-2014. In January 2015, the Bank of Canada lowered the target for 
the overnight rate to 0.75%.  
1.22.  Inflation remained low during  the period, within the inflation target of 1-3% set by the Bank 
of Canada. Although there were concerns about in flation, it remained near the lower end of the 
control range during most of the period due to excess supply in the economy and competitiveness 
pressures in the retail sector.24  
1.23.  Canada maintains a freely floating exchange rate system with no restrictions on currency 
conversion and transfers for current international transactions. During the review period the Canadian dollar initially appreciated during 2010-12 as a consequence of strong demand for resource commodities, in particular energy commodities, and then continued to generally decline 
since 2013 as a result of that demand moderati ng and prices softening or even declining 
(Table A1.1 and Chart 1.2). According to the auth orities, the Canadian dollar is expected to 
appreciate slightly in the medium term. 
                                               
23 The overnight rate is th e interest rate at which major financia l institutions borrow and lend one-day 
(or "overnight") funds among themselv es; the Bank sets a target level fo r that rate. This target for the 
overnight rate is often referred to as the Bank's key interest rate  or key policy rate . Changes in the target for 
the overnight rate influence other interest rates, such  as those for consumer loan s and mortgages. They can 
also affect the exchange rate of the Canadian dollar.  Bank of Canada's online information. Viewed at: 
http://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/. 
24 Bank of Canada, Annual Report 2013.  WT/TPR/S/314 • Canada 
 
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  Chart 1.2 Canadian dollar exchange rate an d effective exchange rate (CERI), 2009-14 
8090100110120130140
0.81.01.21.41.6
Jan. 09 Jan. 10 Jan. 11 Jan. 12 Jan. 13 Jan. 14Exchange noon spot rate average CERICan$ / US$ Index (1992=100)
 
Source: WTO Secretariat, based on Statistics Canada, CANSIM Table 176-0064. 
1.4  Balance of Payments 
1.24.  Canada has traditionally maintained a surplus in the current account of the balance of 
payments. However, since the financial crisis, the surplus has turned into a deficit, which has 
remained at around 3% of GDP during the revi ew period. While exports and imports have both 
grown, import growth has slightly outpaced export  growth, contributing to the negative balance. 
The capital account and the trade balance has generally remained steady or unchanged. but the 
increased merchandise trade deficit , particularly related to consumer goods, as well as a slight increase in the services' trade deficit contributed to the deterioration of the current account in the early part of the period, which then improved at the end of the period when the merchandise trade 
balance turned positive in 2014 (Chart 1.3 and Table 1.2). WT/TPR/S/314 • Canada 
 
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  Chart 1.3 Canada current account and net financial flows, 2007-14 
(Can$ billion) 
-70-60-50-40-30-20-1001020304050
2007 2008 2009 2010 2011 2012 2013 2014Balance on current account Balance on goods Balance on services
Balance on primary income Balance on capital account
 
Source: WTO Secretariat, based on Statistics Canada. 
1.25.  Canada's current account remained in deficit in 2014, despite the improvement in the 
merchandise trade balance. Non-energy exports have led the rebound, benefiting from the U.S. recovery and a weaker Canadian dollar.
25 
Table 1.2 Canada's Balanc e of Payments, 2011-14 
(Can$ billion) 
Current account and capital account 2011 2012 2013 2014
Current account balance -47.2 -59.9 -56.3 -43.5
   Goods and services balance -21.2 -33.8 -30.2 -17.9 
      Exports of goods 456.6 463.1 479.3 528.6 
      Exports of services 84.4 90.0 92.5 95.2 
         Travel 16.6 17.4 18.2 19.3 
         Transportation 13.6 14.0 14.2 14.7 
         Other servicesa 54.1 58.6 60.1 61.2 
      Imports of goods 456.0 474.3 486.5 523.7 
      Imports of services 106.2 112.7 115.5 117.9 
         Travel 33.0 35.0 36.2 37.2 
         Transportation 23.7 23.7 24.0 24.7 
         Other servicesa 49.5 53.9 55.3 56.0 
   Primary income balance -23.1 -22.8 -24.2 -24.2 
      Primary income credit 69.3 73.6 75.2 81.4 
         Compensation of employees 1.2 1.2 1.2 1.3 
         Investment income 68.2 72.4 74.0 80.1 
      Primary income debit 92.4 96.4 99.4 105.7 
         Compensation of employees 3.1 3.2 3.3 3.4 
         Investment income 89.3 93.2 96.1 102.3 
   Secondary income balance -2.9 -3.3 -1.9 -1.4 
      Credits 9.8 9.7 11.5 11.9 
         Private transfersb 3.3 2.8 3.6 4.2 
         Government transfers 6.5 6.8 7.9 7.7 
                                               
25 IMF (2014a). WT/TPR/S/314 • Canada 
 
- 22 - 
 
  Current account and capital account 2011 2012 2013 2014
      Debits 12.7 13.0 13.4 13.3 
         Private transfersb 7.2 7.5 7.7 8.1 
         Government transfers 5.5 5.4 5.7 5.3 
Balance on capital account 0.0 -0.1 -0.1 0.0
   Credit 0.3 0.3 0.3 0.3 
   Debit 0.3 0.4 0.4 0.3 
Net lending / net borrowing, from  current and capital accounts -47.2 -60.1 -56.3 -43.5 
Financial account balancec 54.0 59.2 55.7 36.6
Net acquisition of financial assets 109.2 122.1 76.8 135.6 
   Canadian direct investment abroad 51.6 53.9 52.0 58.2 
   Canadian portfolio investment 18.3 35.1 29.3 56.4 
   Official international reserves 8.1 1.7 4.9 5.9 
   Other Canadian investment 31.2 31.3 -9.4 15.1 
Net incurrence of liabilities 163.2 181.2 132.5 172.2 
   Foreign direct in vestment in Canada 39.3 39.2 72.7 59.6 
   Foreign portfolio investment 100.5 83.5 43.1 59.8 
   Other foreign investment 23.4 58.5 16.8 52.8 
Net lending / net borrowing, from financial accountd -54.0 -59.2 -55.7 -36.6 
Net errors and omissions -6.8 0.9 0.6 6.9
a Other services include both commerci al services and go vernment services. 
b Private transfers and other priv ate transfers include the counterpart of adjustments for insurance 
claims volatility made in the insurance services. 
c In the financial account, a plus sign denotes an increase in investment and a minus sign denotes a 
decrease in investment. 
d A net lending is shown as a plus sign whereas a net borrowing is shown as a minus sign. 
Source: Statistics Canada, Cansim Tables 376-0101 and 376-0102. 
1.5  Developments in Trade  
1.26.  Canada has long relied on exports as a driving force of its economy. Reportedly, one in five 
jobs are either directly or indirectly dependent on exports.26 Canada is also heavily reliant on 
one major market and a narrow product base for its exports. Other vulnerabilities include 
fluctuations of world commodity prices, in particular the energy sector, whereby low crude oil 
prices in recent years have had a significant impact on the Canadian economy.27 
1.27.  According to the IMF, Canada has recognized the need to diversify exports away from the 
U.S. market. As such, Canada was encouraged to enter into new free trade agreements with a 
view to creating new market access opportunities to diversify exports.28 
1.5.1  Merchandise Trade 1.5.1.1  Composition of Trade 
1.28.  During the period 2011-14, Canadian exports grew an average of 7% per year, with the 
largest gain of 12% in 2011, and significant growth  of 11% in 2014. Export growth was relatively 
flat in 2012 and 2013 due to weak global trade and weak energy prices; in 2012, the value of 
energy exports actually declined slightly. The major exported products are mineral products 
(mainly energy), constituting 29% of exports in 2014, followed by vehicles and transport 
equipment (mainly automotive) with 15%, agri culture, 11%, and machinery and mechanical 
appliances, 10% (Chart 1.4 and Table A1.1). Mineral products, vehicles and transport equipment, 
and agricultural exports had gradual increases over the period, while machinery and mechanical appliance exports declined slightly. Regarding agricultural products, vegetable based food 
commodity products dominate, in particular whea t and rape seeds and oil, followed by animal 
                                               
26 Global Markets Action Plan.  Viewed at: http://www.international.gc.ca/global-markets-marches-
mondiaux/index.aspx?lang=eng. 
27 Economic Action Plan 2013.  Viewed at: http://actionplan.gc.ca/en/page/economic-action-plan-2013 
and Statistics Canada. 
28 IMF (2013).  WT/TPR/S/314 • Canada 
 
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  products and prepared foodstuffs. Most product categories exhibited small gains over the period 
2011-14, in parallel with the overall export growth.  
1.29.  The performance of Canadian imports, with an overall growth of 15% during 2011-14, 
slightly under paced export growth thus contributi ng to a small narrowing of the trade deficit, in 
particular due to trade developments in 2014. Init ially import growth outpaced export growth in 
the early part of the period 2011-14 which was however reversed in 2014. Imports are generally more concentrated than exports with four main HS categories dominating, in particular, machinery 
and mechanical appliances, and vehicles and transport equipment with 24% and 17% respectively, 
followed by mineral products (mainly energy), 11%, and chemicals, 8%. Despite being a major 
exporter of oil and gas, Canada's geography contri butes to it being a significant importer as well. 
Production is concentrated in the western provinces of Alberta and Saskatchewan, which is nearly 
all exported to the United States. However, east coast domestic demand is generally met by 
imports. Vehicle and transport equipment is concentrated in the trade of automotive products. Agricultural imports are also significant, growin g to over 8% of imports in 2014 (Chart 1.4 and 
Table A1.2). WT/TPR/S/314 • Canada 
 
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  Chart 1.4 Merchandise trade by main HS sections, 2011 and 2014 
2011 2014
(a)    Exports and re-exports
Total: Can$ 446,707 millions
(b)    Imports
Total: Can$ 446,666 millions Total: Can$ 511,409 millionsTotal: Can$ 524,495 millionsPrecious 
metals
5.9%Base 
metals
8.2%Transport 
equipment
14.0%Other
18.7%Vegetable 
products
4.4%
Chemical 
products
6.7%
Plastics
3.6%Machinery
10.4%
Plastics
4.8%Mineral 
products
28.0%
Mineral 
products
12.9%
Chemical 
products
8.4%
Base metals
6.8%
Machinery
24.3%Other
26.7%Mineral 
products
11.2%
Chemical 
products
8.4%
Plastics
4.9%
Base metals
7.0%
Machinery
24.1%Other
27.0%Vegetable 
products
4.9%
Mineral 
products
29.2%
Chemical 
products
6.0%
Plastics
3.6% Precious 
metals
4.6%Base 
metals
7.1%Machinery
9.7%Transport 
equipment
15.4%Other
19.5%
Transport 
equipment
16.1%Transport 
equipment
17.4%
 
Source: WTO Secretariat estimates, based on data from Statistics Canada. 
1.5.1.2  Direction of trade 
1.30.  Despite attempts to diversify exports away from its major market, the United States, the 
share of exports to the United States actually increased during the period from 74% to 77% of 
total merchandise exports (Chart 1.5 and Table A1.3). The next largest markets are China (4%), WT/TPR/S/314 • Canada 
 
- 25 - 
 
  the United Kingdom (3%), and Japan (2%). Since 2011, exports to developed economies, notably 
Europe, declined, whereas exports to non-OECD countries have accelerated.29 
1.31.  As with exports, Canada's import trade is  dominated by the United States, which increased 
its share from 50% of total imports in 2011 to  54% of total imports in 2014 (Chart 1.5 and 
Table A1.4). Other significant import sources are China (12%), Mexico (6%), and Germany (3%). 
Imports from most regions declined slightly (Europe, CIS, Africa, Middle East) while slight gains were achieved from the Americas, due to the United States, and Asia (Chart 1.5 and Table A1.4). 
                                               
29 OECD (2012).  WT/TPR/S/314 • Canada 
 
- 26 - 
 
  Chart 1.5 Merchandise trade by main origin and destination, 2011 and 2014 
2011 2014
(a)    Ex ports and re-ex ports
Total: Can$446,707 million
(b)    Im ports
Total: Can$446,666 million Total: Can$511,409 millionChina
3.8%
Total: Can$524,495 millionMexico
1.2%Others
2.1%
United States
73.6%Mexico
1.0%Other 
America
1.9%Other 
Asia
4.8%
America
79.5%
United States
76.8%Other America
1.6%EU(28)
7.4%Other Europe
0.9%Other 
Asia
4.4%Others
2.1%
America
76.8%
United 
States
49.6%
Other 
America
4.1%EU(28)
11.7%Other 
Europe
2.0%Japan
2.9%
China
10.8%Other Asia
6.5%Others
6.9%
United 
States
54.3%
Other 
America
3.4%EU(28)
11.3%Other 
Europe
1.5%Japan
2.6%
China
11.5%Other Asia
6.4%Others
3.5%
America
59.2% America
63.3%EU(28)
9.0%China
3.7%
Mexico
5.5%Mexico
5.6%Europe
8.3%Europe
10.2%
Europe
13.6%Asia
20.2%Asia
20.4%
Europe
12.8%Other Europe
1.2%Japan
2.4%
Asia
10.9%Asia
10.1%Japan
2.0%
 
Source: WTO Secretariat estimates, based on data from Statistics Canada. 
1.5.2  Trade in Services 
1.32.  The services sector is the largest contributor to Canada's economy, accounting for 70% of 
GDP during the period 2011-14. However, Canada's services trade is relatively small, about 
one-fifth the size of its merchandise trade. Canada remains a net services importer and the services trade deficit slightly increased during the review period from Can$22 billion to Can$23 billion. WT/TPR/S/314 • Canada 
 
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  1.33.  In terms of trade of services sectors, travel, transportation, and charges for the use of 
intellectual property are the main transactions for imports; travel, transportation, and professional and management consulting services are the principal sectors for exports (Table 1.3). 
Table 1.3 Canada's international transa ctions in services by sector, 2011-14 
(Can$ billion) 
 2011 2012 2013 2014
Services exports 84.4 90.0 92.5 95.2
Travel 16.6 17.4 18.2 19.3 
  Business travel 2.9 2.9 3.0 3.1 
  Personal travel 13.8 14.5 15.2 16.2 
Transportation 13.6 14.0 14.2 14.7 
  Water transport 2.7 3.0 2.9 3.1 
  Air transporta 6.3 6.3 6.5 6.6 
  Land and other transportb 4.6 4.7 4.8 5.0 
Maintenance and repair services 1.4 1.5 1.4 1.7 
Construction services 0.5 0.7 0.6 0.5 
Insurance services 2.2 1.9 1.9 1.8 
Financial services 7.0 7.5 7.9 8.3 
Telecommunications, computer, and information servicesc 9.9 10.4 10.4 10.2 
Charges for the use of intellectual property 3.3 4.0 4.2 4.5 
Professional and management consulting servicesd 11.4 12.0 12.6 13.2 
Research and deve lopment services 4.3 4.3 4.5 4.7 
Technical, trade-related and other business servicese 10.2 12.0 12.2 12.2 
Audio-Visual services 2.1 2.4 2.5 .. 
Other personal, cultural, and recreational servicesf 0.3 0.5 0.5 .. 
Government services 1.6 1.5 1.5 1.5 
     
Services imports 106.2 112.7 115.5 117.9
Travel 33.0 35.0 36.2 37.2 
  Business travel 4.1 4.3 4.4 4.5 
  Personal travel 28.9 30.8 31.8 32.7 
Transportation 23.7 23.7 24.0 24.7 
  Water transport 10.1 10.2 10.4 11.2 
  Air transporta 10.2 10.3 10.4 10.2 
  Land and other transportb 3.4 3.3 3.3 3.3 
Maintenance and repair services 0.3 0.6 0.7 0.9 
Construction services 0.4 0.3 0.3 0.3 
Insurance services 4.7 5.7 5.5 5.1 
Financial services 5.3 5.0 5.0 5.2 
Telecommunications, computer, and information servicesc 5.4 5.9 6.0 6.5 
Charges for the use of intellectual property 10.3 10.9 11.2 11.3 
Professional and management consulting servicesd 10.1 10.6 11.0 10.9 
Research and development services 1.1 1.4 1.5 1.5 
Technical, trade-related and other business servicese 8.3 9.7 10.2 10.4 
Audio-Visual services 2.1 2.3 2.4 .. 
Other personal, cultural, and recreational servicesf 0.2 0.3 0.3 .. 
Government services 1.3 1.3 1.2 1.2 
.. Not available. 
a International passenger fares by wate r are included under air transport. 
b From 2004, postal and courier services are included under land and other transport. 
c Includes telecommunications services, and computer and information services. 
d Includes management services an d advertising and related services. 
e Includes architecture, engineering and other technical services, non-financial commissions, and 
equipment rentals. 
f The coverage of this category is limited to data on international activity of trade unions. 
Source: WTO Secretariat, based on Statis tics Canada, CANSIM Tables 376-0108 and 376-0033. WT/TPR/S/314 • Canada 
 
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  1.34.  As with merchandise trade, services trade is heavily concentrated on one market, the 
United States, which accounted for 57% of services imports and 56% of services exports in 2013. The next largest import sources are the United Kingdom (5%) and Hong Kong, China (3%), and for exports, the United Kingdom (5%) and China (3%). Canada's services trade takes place 
principally with North America, Europe, and Central and East Asia, accounting for over 85% of 
Canada's services trade (Table 1.4). 
Table 1.4 Canada's international transactions  in services by main partners, 2010-13 
(Can$ billion) 
 2010 2011 2012 2013a
Services exports 79.2 84.4 90.0 92.5
United States 43.1 46.0 50.5 51.5 
United Kingdom 4.6 5.0 4.7 4.7 
China 1.5 1.7 2.1 2.3 
France 2.3 2.4 2.2 2.3 
Germany 2.0 2.0 2.0 2.0 
Switzerland 1.4 1.7 1.6 1.7 
Hong Kong, China 1.2 1.2 1.6 1.7 
Bermuda 1.9 1.5 1.5 1.6 
Australia 1.2 1.3 1.5 1.5 
Japan 1.2 1.3 1.4 1.4 
Mexico 0.8 0.8 1.0 1.0 
Netherlands 1.0 1.2 1.0 1.0 
Singapore 0.6 0.7 0.8 0.9 
Ireland 0.6 0.7 0.9 0.8 
Republic of Korea 0.8 0.7 0.8 0.8 
     
Services imports 101.1 106.2 112.7 115.5
United States 57.8 60.9 64.2 66.4 
United Kingdom 5.5 5.5 5.8 5.6 
Hong Kong, China 3.1 3.2 3.3 3.4 
France 2.3 2.6 2.7 2.8 
Mexico 2.1 2.1 2.3 2.4 
Germany 2.1 2.3 2.1 2.2 
China 1.8 2.0 2.1 2.1 
Japan 1.6 1.5 1.8 1.7 
Netherlands 1.3 1.3 1.6 1.7 
Singapore 1.6 1.6 1.7 1.7 
Switzerland 2.1 1.6 1.6 1.6 
Barbados 1.1 1.1 1.6 1.5 
Bermuda 1.2 1.0 1.4 1.4 
Ireland 0.9 1.1 1.3 1.3 
Australia 0.7 0.8 1.0 1.0 
a Preliminary. 
Source: Statistics Canada , CANSIM Table 376-0036. 
1.35.  The Government of Canada has been actively promoting trade in services in the WTO and 
through a number of trade policy tools such as free trade agreements, including the negotiation of 
a Trade in Services Agreement, foreign investme nt promotion and protection agreements, double 
taxation agreements, and air transport agreements. Furthermore in Canada's Global Markets 
Action Plan, services sectors are an important component, for which comprehensive strategies are 
being developed to strengthen Canada's trade and investment in priority markets. These include the launch of an international education strategy to attract international students to Canada and the development of an extractive sector strategy. WT/TPR/S/314 • Canada 
 
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  1.6  Foreign Direct Investment 
1.36.  In addition to its relatively open trade policy, Canada also promotes open foreign 
investment as it recognizes the importance of foreign direct investment to foster growth and efficiency in its economy.
30 I n  t e r m s  o f  F D I  i n f l o w s ,  C a n a d a  r a n k e d  7th in the world in 2014 
according to UNCTAD; up from 10th in 2012.31 
1.37.  During the review period, growth rates of  inward FDI to Canada were modest, reflecting 
world trends of less FDI flows to developed countri es and increased flows to emerging economies. 
However, while inward FDI growth was slow at th e beginning of the period, it picked up in 2013 
due in part to a significant increase in intra-company loans to foreign affiliates in Canada.32 
According to UNCTAD, FDI inflows declined in 2014 as a result of a significant fall in intra-company loans.
33 
1.38.  While foreign direct investment into Canada increased during the period from Can$604 
billion in 2011 to Can$686 billion in 2013, Canadian direct investment abroad increased more, from Can$675 billion to Can$779 billion. As with trade, the investment linkages to the United 
States dominate and account for about half of all inward and outward investment; the investment 
position in the United States increased by Can$28 billion to Can$318 billion at the end of the year. 
Europe is also a significant source of Canadian FDI, accounting for 32% of inflows in 2013 
(Table 1.5), with the United Kingdom accounting for the majority, as it remained the second top 
investment destination after the United States. 
1.39.  The stock of Canadian direct investment abroad grew by 9.4% in 2013, reflecting both 
increased investment activity as well as the upward revaluation effects of a weaker Canadian 
dollar. Aside from investment, generally stronger foreign currencies relative to the Canadian dollar also supported the growth of Canadian direct investment assets abroad during the year. This resulted in an upward revaluation of th ese foreign currency-denominated assets.  
Table 1.5 International investment  position by country, 2009-13 
(Can$ billion) 
 2009 2010 2011 2012 2013
Canadian direct investment abroad     
Total 630.8 637.3 675.0 712.6 779.3
North America 368.9 362.4 403.8 431.6 464.9 
South and Central America 34.6 36.2 34.0 41.8 44.6 
Europe 178.1 176.3 174.9 178.3 208.0 
Africa 3.2 4.2 4.3 1.3 2.2 
Asia/Oceania 46.1 58.1 57.9 59.5 59.6 
      
Foreign direct investment in Canada     
Total 573.9 592.4 603.5 626.8 686.3
North America 304.5 323.4 313.9 324.4 356.5 
South and Central America 13.3 17.4 17.6 16.8 18.4 
Europe 186.1 181.5 197.2 205.8 219.0 
Africa 2.4 2.9 2.2 2.4 2.3 
Asia/Oceania 67.6 67.2 72.5 77.5 90.0 
Source: Statistics Canada , CANSIM Table 376-0051. 
1.40.  In Canada, FDI is concentrated in manufacturing; mining, oil, and gas extraction; and 
management of companies and enterprises. Togeth er, these accounted for over two-thirds of all 
Canadian FDI in 2013 (Table 1.6). Following several years of little or no growth, Canadian direct 
investment abroad in the manufacturing sector picked up in 2013, rising by 18% to 
Can$72.8 billion since 2011. The share of Canadian investment abroad going into the 
                                               
30 Economic Action Plan 2013. Viewed at: http://actionplan.gc.ca/en/page/economic-action-plan-2013 
and Statistics Canada. 
31 UNCTAD (2015 and 2014). 
32 UNCTAD (2014). 
33 UNCTAD (2015). WT/TPR/S/314 • Canada 
 
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  manufacturing sector has fallen from a peak of 31.9% in 2000 to 9.3% in 2013. Some 44% of the 
increase in the stock of Canadian direct investment abroad was channeled into the finance and insurance sector, up by Can$48.3 billion to Can$312.9 billion during 2011-13. The sector 
maintained its position as the primary destination for investment with a 40% share of overall 
Canadian direct investment abroad. 
Table 1.6 International investment position  by sector (North American Industry 
Classification System (NAICS)), 2009-13 
(Can$ billion) 
 2009 2010 2011 2012 2013
Canadian direct investment abroad      
Total, all industries 630.8 637.3 675.0 712.6 779.3
Agriculture, forestry, fishing and hunting 3.8 6.0 4.1 3.6 3.5 
Mining and oil and gas extraction 107.0 122.0 129.7 139.4 138.5 
Utilities 15.8 16.1 13.5 16.7 18.8 
Construction 1.9 1.8 0.6 0.5 0.6 
Manufacturing 96.2 64.6 67.0 61.9 72.8 
Wholesale trade 7.0 9.1 10.6 9.3 11.1 
Retail trade 6.1 7.2 6.8 5.3 7.8 
Transportation and warehousing 22.2 20.8 25.9 22.2 27.6 
Information and cultural industries 23.0 27.7 28.9 34.1 37.2 
Finance and insurance 231.7 236.4 264.6 283.5 312.9 
Real estate and rental and leasing 8.5 13.2 20.3 23.0 25.2 
Professional, scientific and technical services 7.1 7.7 7.5 8.6 10.2 
Management of companies and enterprises 92.5 96.7 87.5 93.1 101.5 
Accommodation and food services 2.6 2.7 2.8 2.0 1.9 
All other industries 5.2 5.4 5.4 9.4 9.9 
      
Foreign direct investment in Canada      
Total, all industries 573.9 592.4 603.5 626.8 686.3
Agriculture, forestry, fishing and hunting 1.4 1.3 n.d. 0.3 0.3 
Mining and oil and gas extraction 93.6 112.0 118.2 121.3 139.4 
Utilities 5.1 5.4 n.d. 5.1 5.7 
Construction 4.1 3.4 5.0 2.3 2.4 
Manufacturing 185.5 176.8 173.0 186.2 209.3 
Wholesale trade 45.9 39.6 42.8 49.1 49.9 
Retail trade 15.5 18.7 29.3 29.2 31.7 
Transportation and warehousing 4.0 3.5 7.2 6.2 7.7 
Information and cultural industries 9.7 8.7 1.7 3.1 4.1 
Finance and insurance 82.6 78.1 79.3 88.6 94.5 
Real estate and rental and leasing 5.7 5.0 4.7 4.6 4.6 
Professional, scientific and technical services 9.4 11.0 8.7 8.7 9.3 
Management of companies and enterprises 99.3 117.9 117.3 111.4 116.1 
Accommodation and food services 4.5 4.2 4.3 3.9 4.1 
All other industries 7.4 6.9 6.9 6.8 7.1 
Source: Statistics Canada , CANSIM Table 376-0052. 
1.7  Outlook 
1.41.  In its 2014 Article IV assessment of Canada's economy, the IMF noted that solid growth is 
envisaged to continue while becoming more balanced, yet some imbalances remain. In particular, the rebalancing of growth remains incomplete with weak business non-residential investment 
slowing in recent years after a strong rebound post crisis and the rebalancing towards exports and 
investment remains incomplete. Growth is expect ed to be supported by stronger exports and 
business investment, spurred by the U.S. recovery . Rising long-term interest rates and weaker 
terms-of-trade mostly due to lower energy prices are expected to moderate private consumption 
and residential investment. The main risks to grow would stem from a faster-than-expected WT/TPR/S/314 • Canada 
 
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  tightening of global financial conditions, household balance sheet vulnerabilities and a further 
decline in global energy prices, while it is expect ed that continued U.S. growth and a depreciating 
Canadian dollar would help dampen the adverse impact of these shocks.34 According to the IMF, 
real GDP growth is expected to accelerate to 2.3% in 2015 and then slow to 2.1% in 2016 while 
inflation is expected to remain at around the Bank of Canada's target rate of 2%.35 
                                               
34 IMF (2014b). 
35 IMF (2015). WT/TPR/S/314 • Canada 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  General Framework 2.1.  As noted in the previous Report
1, Canada's framework for trade and investment policy has 
shared competences between the federal government and the provinces as outlined in Part VI of 
the Constitution Act, 1867, as amended (Table 2. 1). The federal government has jurisdiction on 
trade, but some matters like agriculture, fishing, labour, public works and the environment have shared jurisdiction with the provinces. As part of the Government of Canada's Northern Strategy
2, 
devolving province-like powers to the Northern Territories has been key to political and economic 
development of the North. Territorial land and re source responsibilities were devolved to the 
Government of the Yukon on 1 April 2003, to the Government of the Northwest Territories on 1 April 2014, and a similar agreement is being negotiated with the Government of Nunavut. 
Table 2.1 Government jurisdiction in Canada 
Federal jurisdiction Provincial jurisdiction Shared jurisdiction 
Trade and international relations Public lands and forests Agriculture 
Taxes Health system Companies and economic development 
Postal service Municipal institutions Prisons and justice 
Defense Property and civil rights Fishing 
Fiscal and monetary policy Educatio n Public works (health and safety) 
Aboriginal affairs Business licenses Transportation and communication 
Criminal law Resource ownership and 
management Immigration 
Residual powers  Environmental protection 
Right of disallowance over the 
provinces  Energy, mining, forest management 
Science and technology   
Source: The Constitution of Canada and inform ation provided by the Canadian authorities. 
2.2.  The Agreement on Internal Trade (AIT) is an intergovernmental trade agreement for 
domestic trade to reduce or eliminate barriers to the free movement of persons, goods, services, and investment within Canada. It has six general rules such as non-discrimination and 
transparency, and it focuses on reducing trade ba rriers in eleven specific sectors. During the 
review period, the AIT was amended two times. Th e changes included revisions to procurement, 
labour mobility, and dispute resolution sections.
3 
2.3.  At the federal level, the Department of Foreign Affairs, Trade and Development Canada 
(DFATD) is responsible for international trade and investment policies. As part of its mandate to encourage the country's international trade, it has specific provisions to strengthen rules-based trading arrangements and achieve fair market access at bilateral, regional, and global levels.
4  
2.4.  In terms of public-private sector cons ultation processes, DFATD maintains a number of 
consultative bodies that engage the private sector which contribute to government policy and, more specifically, operations of the Trade Commissioner Service, the international trade promotion 
arm of the federal government. The Small and Me dium-sized Enterprises Advisory Board (SMEAB) 
is comprised of 18 private sector leaders from small and medium-sized enterprises; it meets biannually. DFATD also maintains a limited number of sector-oriented consultation bodies that 
annually bring together government and industry representatives. Collectively, these consultation 
bodies provide the Minister of International Trade with advice on emerging opportunities, 
challenges and threats in the industry and on international marketplace issues as well as to make recommendations on the commerce-related priorities, policies, and programmes of the 
Department. DFATD also chairs the Tariff Quot a Advisory Committees (TQACs) that serve as 
consultation bodies to specifically discuss Canada's trade control regime. 
                                               
1 WTO document WT/TPR/S/246/Rev.1, 26 July 2011. 
2 Viewed at: http://www.northernstrategy.gc.ca/index-eng.asp. 
3 For further information: http ://www.ait-aci.ca /index_en.htm. 
4 Foreign Affairs, Trade and Development Canada, online information. Viewed at: 
http://www.international.gc.ca/departm ent-ministere/inde x.aspx?lang=eng. WT/TPR/S/314 • Canada 
 
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  2.5.  The Global Markets Action Plan Advisory Council, announced as part of the Global Markets 
Action Plan launch in November 2013, is another mechanism through which the private sector is consulted on trade. The Advisory Council will comp rise business and industry leaders, experts in 
international business, and key representatives from the SME community to bring together the 
voices of all businesses, large and small, and pr ovides strategic insight, advice, and real-world 
perspectives. As of January 2015, the Advisory Council was in the process of being established. 
2.6.  In the context of Canada's FTA negotiations, the Government of Canada is committed to 
engaging in broad-based consultations with the pr ivate sector, civil society groups, and individual 
Canadians to help inform Canada's negotiating objectives and priorities. Among the consultation mechanisms used to afford Canadians the opportunity to shape the trade agenda, the Government of Canada publishes a notice in the Canada Gazette soliciting comments from Canadians prior to 
Canada's participation in negotiations. Throughout the negotiating process, the Government of 
Canada also undertakes a variety of targeted consultations with relevant stakeholders, including through in-person meetings, conference calls, information briefings (including webinars) and 
stakeholder events. Information is also shared on  the Department of Foreign Affairs, Trade and 
Development website, and interested Canadians are invited to share their views via dedicated consultation mailboxes.  
2.1.1  New Developments 
2.7.  In 2011, the United States and Canada join tly launched the Beyond the Border Action Plan to 
improve and speed up legitimate trade and travel between the two countries. The Plan is being implemented in phases and includes improvements to infrastructure at the border, implementing 
the single window, enhancing benefits of the trusted trade and traveller programmes
5, improving 
cargo security, sharing immigration information, and supporting cross-border law enforcement activities.  
2.8.  Three years after being launched, significant achievements have been realized across all 
areas of the Beyond the Border Action Plan. Canada and the Unites States have moved towards a common approach to screening travellers thro ugh the ongoing implementation of automated 
sharing of biographic visa, immigration and biometric asylum information on third country 
nationals, as well as the first two phases of an En try/Exit system for all foreign nationals; and, in 
Canada, work has progressed on a pre-departure screening system for visa-exempt travellers 
flying to Canada from abroad. Investments in border infrastructure are also underway, new 
benefits have been introduced to the trusted traveller (NEXUS) programme, and trusted trader 
programmes have been further harmonized and e nhanced. The participants are committed to the 
ongoing implementation of remaining Action Plan initiatives, and are considering ways to build 
upon the Beyond the Border successes, includin g seeking the views of stakeholders on their 
priorities. 
2.9.  In 2011 Canada passed the Freezing Assets of Corrupt Foreign Officials Act to allow Canada 
to freeze assets of former foreign leaders that have been placed in Canada in order to fight 
corruption and misappropriation. This law would mainly impact financial assets and services, allowing Canada to take possessi on and repatriate the funds.  
2.10.  In November 2014, Foreign Affairs, Trade, and Development Canada announced a new 
enhanced Corporate Social Responsibility (CSR) Strategy in Canada's extractive sector abroad.
6 As 
a leading player in the world mining industry, Ca nada expects the companies to promote Canadian 
values and operate with high ethical standards abroad. Further, Canada continues to promote CSR 
by incorporating the provisions of CSR in all its Foreign Investment Promotion and Protection 
Agreements and Free Trade Agreements since 2010.7 The CSR Strategy is part of an overarching 
Canadian Extractive Sector Strategy, also a nnounced in November 2014, which sets out a 
framework to ensure greater coherence and more effective implementation of efforts to advance 
the interests and opportunities for Canada's extractive sector abroad. The four pillars of the 
                                               
5 For the movement of goods and persons. 
6 The Strategy is voluntary but do es make reference to two mandatory policies, namely the Corruption 
of Foreign Public Officials Act and the Extractive Sect or Transparency Measures Act, and the provision of 
economic diplomatic services are related to participation. 
7 Foreign Affairs, Trade and Development Canada online information. Viewed at: 
http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domain. WT/TPR/S/314 • Canada 
 
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  Strategy are: securing and preserving access to international markets for Canadian business; 
transforming business opportunities into business successes; sustaining the business environment and local communities and; producing economic benefits for Canadians.  
2.2  Trade Policy Objectives 
2.11.  Building upon the success of the 2007 Global Commerce Strategy, Canada launched its 
Global Markets Action Plan (GMAP) in 2013 as a strategic plan to prioritize markets and support 
commercial success in trade. In particular it sets priorities and objectives for trade initiatives and 
trade promotion activities. Canada's trade agenda is currently focused on achieving new free trade 
agreements. 
2.12.  The Global Markets Action Plan contains  a pro-trade and investment plan to pursue 
ambitious growth in trade, job creation, and economic growth. It plans to use many vehicles, 
including the WTO, FTAs, investment, and other agreements as the tools to achieving its goals. In 
particular, the following specific goals have been identified: 
• "advance and conclude FTAs with major economic impact; 
• modernize existing FTAs to maximize the benefits to Canadian workers, exporters, 
businesses and investors; 
• improve "international connectivity" for Canadians (that is, the ability to reach international 
destinations from various points in Canada) and enhance market access for passenger and 
cargo services through targeted, higher-quality air transport agreements; 
• pursue foreign investment promotion and protection agreements (FIPAs) in markets where 
Canadian investors have economic interest; where there is a strong potential for economic 
growth; and where there is likelihood of reaching a high standard agreement; 
• reinforce the multilateral system through various next-generation agreements (within  and 
outside the WTO), including the Trade in Serv ices Agreement; and modernize and expand 
product coverage under the Information Technology Agreement; 
• address barriers to trade and investment through targeted advocacy, troubleshooting  and 
dispute settlement, especially in established markets and priority emerging markets; 
• connect Canadian businesses with the extensive international networks in Canadian 
embassies and offices abroad to help address market access issues and concerns; and 
• leverage development programming to advance Canada's trade interests."
8 
2.13.  In addition to prioritizing certain markets depending upon Canadian interests and 
advantages, the Global Markets Action Plan prioritises sectors where it has a strong competitive 
advantage and plans to develop strategies to help these sectors flourish (Box 2.1). 
                                               
8 Global Markets Action Plan. Viewed at: http://www.international.gc.ca/global-markets-marches-
mondiaux/index.aspx?lang=eng.  WT/TPR/S/314 • Canada 
 
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  Box 2.1 Priority trade sectors 
Aerospace 
Agriculture and processed foods 
Automotive 
Chemicals 
Consumer products 
Defence and security 
Education 
Financial services 
Fish and seafood 
Forestry and wood products 
Industrial machinery 
Information and communications technologies 
Infrastructure 
Life sciences 
Mining 
Ocean technologies 
Oil and gas 
Professional services 
Sustainable technologies 
Tourism 
Transportation 
Wine, beer and spirits 
Source: Global Markets Action Plan. 
2.14.  The GMAP sets out to promote further improvements in trade promotion and support 
services, promote its foreign trade zone advantage, support its innovation advantage, and set 
goals for increasing exports by SMEs.  
2.15.  The following priorities and achievements have been reached under the GMAP as of 
January 2015: 
• Trade Missions to several countries, including Burkina Faso, Madagascar, South Africa, 
Tanzania, Ukraine, Australia, the Philippines, Colombia, Peru, Laos, Burma, United Kingdom, 
India and China. 
• "Go Global" workshops for Canadian companies have been held in cities such as 
Richmond (BC), Montreal (QC), Mi ssissauga (ON) and Halifax (NS). 
• Launch of the International Education Strategy, the Defence Procurement Strategy and 
associated Export Strategy, and the Strategy for the Extractive Sector. 
 
o International Education Strategy: The comprehensive plan sets targets to attract 
more international researchers and students to Canada, deepen the research links 
between Canadian and foreign educational institutions, and establish a pan-Canadian partnership with provinces and territories and all key education 
stakeholders, including the private sector.  
o Defence Procurement Strategy: The three key objectives of the Defence 
Procurement Strategy are to deliver the right equipment to the Canadian Armed 
Forces (CAF) and the Canadian Coast Guard in a timely manner; leverage 
purchases of defence equipment to create jobs and economic growth in Canada; 
and streamline defence procurement processes.  
o Strategy for the Extractive Sector: Building on Canada's plan for Responsible 
Resource Development, the Strategy ensure s that mining and energy will continue 
to represent an engine of economic growth and prosperity for Canadians.
9 
 
• Launch of a pilot Canadian Technology Accelerator in India to facilitate business between 
high potential technology-based Canadian and Indian start-ups. 
                                               
9 The Extractive Sector Strategy su pports the export of both equipment and services in the extractive 
sectors. WT/TPR/S/314 • Canada 
 
- 36 - 
 
  • Establishment of more than 20 partnerships between the TCS and private sector 
associations to embed a Trade Commissioner within the association, generating increased cooperation and mutual benefit in the interest of Canadian companies. 
• Announcement of the opening of four new trade offices in China. 
• Announcement of the organizations chosen to advance in the selection process for the 
Canadian Accelerator and Incubator Program (CAIP), which is designed to help outstanding Canadian SMEs to grow, prosper and create jobs. 
• Opening of applications for the Foreign Trade Zone (FTZ) - Marketing Program, designed to 
market Canada's FTZ advantage and attract foreign direct investment. 
• Announcement of the ecoENERGY innovation initiative, to invest in new clean technologies 
that will create jobs, opportunities and help protect the environment, including a 
Can$268 million investment over five years to support the research, development and 
demonstration of innovative clean technologies. 
• The following SME export goal was announced: "Grow Canada's SME export presence in 
emerging markets from 29 percent to 50 percent by 2018. This would grow Canada's SME 
footprint in emerging markets from 11,000 to 21,000 companies. This growth would create 
more than 40,000 net new jobs." 
2.16.  Canada's Department of Trade, as part of Foreign Affairs, Trade and Development Canada, 
also sets priorities for its work. For 2014-15, the priorities are as follows: 
• "Contribute to economic prosperity with an  emphasis on expanding and diversifying 
commercial relationships with emerging and high-growth markets; 
• Expand Canada's engagement in the hemisphere and reinforce the 
Canada-U.S. relationship;  
• Increase Canada's economic and political engagement in Asia; 
• Promote democracy and respect for human rights and contribute to effective international 
security and global governance; and 
• Lead Canada's international efforts to reduce global poverty and provide humanitarian 
assistance."
10 
2.17.  Canada also places an emphasis on the development aspects of trade as trade and 
investment are considered as key drivers of job creation and prosperity in Canada and play essential roles in promoting economic growth and poverty reduction in partner countries in 
development. Canada recognises that many developing countries cannot effectively participate in 
trade, often because they lack necessary human, institutional and infrastructural capacities to implement the necessary legal, regulatory and structural reforms to facilitate trade.  
2.18.  To help developing country partners access the economic benefits that contribute to growth, 
sustainable development and employment generation , Canada has focused its existing multilateral 
and bilateral development programme to address these challenges. This approach reaffirms 
Canada's commitment to the Doha Development Agenda and is fully aligned with the GMAP's 
strategy to leverage development programming to advance Canada's trade interest while adhering 
to the principles of development effectiveness and Canada's priorities for development assistance. 
2.19.  Bilaterally, Canada works with developing country governments to help them create a 
domestic environment conducive to trade and in vestment. The Canadian Trade and Development 
Facility (CTDF) is an example of a Canadian tr ade-related assistance tool designed to support 
developing countries or groups of developing countri es with which Canada is or will be negotiating 
Free Trade Agreements (FTA) or Foreign Investment Promotion and Protection Agreements 
(FIPAs). The CTDF assists negotiating partners to effectively negotiate, implement, adapt to and take advantage of concluded agre ements. DFATD continues to identify innovative ways to deploy 
resources and new programming opportunities in support of its international assistance and trade 
priorities. 
                                               
10 Foreign Affairs, Trade and Development Canada online information. Viewed at: 
http://www.international.gc.ca/department-mi nistere/priorities-priorites.aspx?lang=eng. WT/TPR/S/314 • Canada 
 
- 37 - 
 
  2.3  Trade Agreements and Arrangements 
2.3.1  Participation in the WTO 2.20.  Canada is an active Member of the WTO.  In terms of the day-to-day work of the WTO, 
Canada is particularly active in the work of Committees, the monitoring exercise, accessions, 
dispute settlement, and plurilateral initiatives. In terms of trade dispute settlement, Canada has 
participated in a number of DSU processes du ring the period under review; Canada was a 
respondent in 2 disputes, a third-party to 12 disputes, and was involved in one compliance panel 
(Table A2.1). 
2.21.  In the on-going Doha Round, Canada has submitted five proposals during the review period 
on Rules, Trade Facilitation, and Intellectual Property.  
2.22.  Canada has also been active in a number of plurilateral initiatives both under the auspices 
of the WTO and outside; these include the expanded ITA initiative,, and plurilateral initiatives 
leading to an Environmental Goods Agreemen t and Trade in Services Agreement (TISA). 
2.23.  Canada maintains a strong notification record  to the WTO, as notifications during the period 
have been numerous and cover a wide range of WTO and GATT instruments (Table A2.2). 
However, some notifications are outstanding, for example in the area of regional agreements, where the Canada – Honduras FTA has not been notified as of January 2015. 
2.3.2  Regional and preferential agreements 
2.24.  Imports entering under free-trade agreements and unilateral preferences account for a 
significant share of Canadian imports, in large pa rt due to NAFTA trade. These figures would be in 
fact larger, but are mitigated due to substantia l amount of imports that enters MFN duty-free 
(62.4%), even though the tariff lines may also be covered under the FTA or preferential 
programme (Chart 2.1). As Canada continues to negotiate and pursue further free trade agreements with more trading partners, the share of two-way preferential trade is expected to 
further increase in the future. On the other hand, unilateral preferential trade is expected to 
decline as many of the higher income countries have graduated from Canada's main preference programme in 2015. In 2013, unilateral preferences accounted for 3.8% of imports. Thus, the 
majority (90.7%) of Canadian imports enter with zero  or preferential rates of  duty, with only 9.3% 
being subject to MFN rates of duty. 
Chart 2.1 Imports by type of import regime, 2013 
Reciprocal trade 
agreementsa
24.4%
Unilateral 
preferences
3.8%
MFN dutiable
9.3%MFN duty freea
62.4%
 
Note: Trade with Australia and New Zealand under Agreements on  Trade or Trade and Economic 
Co-operation are not shown in the chart, as they st atistically round to zero, although it amounts to 
Can$42 millions for Australia and Can $29 millions for New Zealand in 2013. 
a "Reciprocal trade agreements" cover trade benefitt ing from an RTA, and "MFN duty-free" covers all 
trade entering at MFN duty-free rates, because the RTA may provide concessions at zero that are already MFN duty-free. 
Source: WTO Secretariat, based on informatio n provided by the Canadian authorities. WT/TPR/S/314 • Canada 
 
- 38 - 
 
  2.3.2.1  Reciprocal trade agreements 
2.25.  In order to improve its market access opportunities, Canada has pursued bilateral and 
regional Free Trade Agreements (FTAs) as an impo rtant part of its trade policy and has gradually 
increased the number of FTAs in recent years. As of January 2015 there were 11 agreements in 
force covering trade with 15 countries (Table 2.2). Canada's trade under FTAs is significant, 
accounting for approximately 61% of Canadian imports in 2013.11 FTA partners are also important 
to Canadian exports, as 78% of Canadian 2013 exports were to countries where an FTA was in 
place.12 Canada retained a negative trade balance with 7 of its 11 FTA partners (Table 2.2). But 
due to the significant trade surplus generated with  NAFTA partners, there is an overall positive 
trade balance for Canada with FTA partners. 
2.26.  Since the last review, five new FTAs have entered into force; these are with the Republic of 
Korea, Colombia, Honduras, Jordan, and Panama (Table 2.3). The agreements with Colombia, 
Honduras, Panama and the Republic of Korea cove r goods and services, while the one with Jordan 
covers only goods. With the exception of the Republic of Korea, merchandise trade between 
Canada and these new FTA partners is small, as they ranked 45th, 75th, 103rd, and 89th, 
respectively, among Canada's import partners in 2013.13 Canada continues to pursue bilateral 
FTAs as part of its trade policy and has one other agreement concluded with the EU, but not yet 
entered into force, and ten others that are under negotiation. 
2.27.  On 1 January 2015, the Canada-Korea Free Trade Agreement (CKFTA) entered into force. 
The Republic of Korea represents Canada's 7th-largest trading partner, and 3rd-largest in Asia. 
Overall, the Agreement is projected to boost Ca nada's economy by Can$1.7 billion and increase 
Canadian exports to the Republic of Korea by 32%. The CKFTA is an ambitious and comprehensive 
agreement, covering trade in goods and services , investment, government procurement, non-tariff 
barriers, environment and labour cooperation, and other areas of economic activity. 
2.28.  Canada and the European Union (EU) announced on 5 August 2014 that negotiations on the 
Canada-EU Comprehensive Economic and Trade Agreement (CETA) had been completed, and on 26 September 2014 the parties formally recogniz ed the end of CETA negotiations with the 
publishing of the final negotiated text.
14 A joint Canada-EU study that supported the launch of 
negotiations  estimated that the Agreement would increase bilateral trade by 20%, raising 
Canada's GDP by Can$12 billion and the EU 's collective GDP by €11.6 billion annually . Pending a 
legal review and translation, final ratification of the Agreement is expected to take place in 
approximately two years. 
Table 2.2 Overview of Ca nada's FTAs, January 2015 
(Can$ million) 
FTA 
partner Entry into 
force FTA imports 
2013 Total 
imports 
2013 FTA 
imports 
(%) Total 
exports 
2013 Trade 
Balance 
Republic 
of Korea 1 January 2015 n.a. 7,337.7 n.a. 3,500.6 -3,837.1 
Honduras 1 October 2014 n.a. 234.9 n.a. 43.7 -191.2 
Panama 1 April 2013 0.099 73.6 0.1 94.7 21.1 
Jordan 1 October 2012 23.7 46.1 51.4 65.8 19.6 
Colombia 15 August 2011 107.5 691.4 15.5 711.5 20.1 
Peru 1 August 2009 70.9 3,075.8 2.3 606.1 -2,469.7 
EFTA 1 July 2009 546.3 7,802.5 7.0 3,861.2 -3,941.3 
                                               
11 This figure is somewhat overestimated as it take s into account total imports from FTA partners, as it 
was not possible to identify trade benefitting from the FTA exclusively. It excludes trade with the Republic of Korea and Honduras, as the agreements were not in force in 2013. 
12 The share excludes trade with the Republic of Korea and Honduras, as the agreements were not in 
force in 2013. 
13 Viewed at: http://www.international.gc.ca/economist-economiste/assets/pdfs/Data/facts-
fiches/PFACT_Annual_Merchandis e_Trade_by_Country-ENG.pdf. 
14 Viewed at: www.international.gc.ca/CETA. WT/TPR/S/314 • Canada 
 
- 39 - 
 
  FTA 
partner Entry into 
force FTA imports 
2013 Total 
imports 
2013 FTA 
imports 
(%) Total 
exports 
2013 Trade 
Balance 
Costa 
Rica 1 November 
2002 18.8 590.8 3.2 114.6 -476.2 
Chile 5 July 1997 193.3 1,752.7 11.0 799.8 -952.9 
Israel 1 January 1997 254.2 1,058.9 24.0 379.8 -679.1 
NAFTA 1 January 1994 114,766.0 274,527.3 41.8 363,452.9 88,925.6 
n.a. Not applicable because the Agreement was not in force in 2013. 
Source: Statistics Canada, Canadian International Merc handise Trade Database, and information provided by 
the Canadian authorities. 
Table 2.3 Overview of new FTAs, 2011-15 
Trade Agreement Details 
Republic of Korea Date of signature/Entry into force: Transition to full implementation:    Main products/sectors excl uded from liberalization: 
    Merchandise trade 2013:  Exports  Imports  Of which is preferential:  Of which is MFN duty-free: Commercial services trade:  Exports  Imports 
WTO document series   
22 September 2013/1 January 2015 Tariffs to be phased out by 2032 by the Republic of Korea, with a limited number of products subject to permanent TRQs. Tariffs to be phased out by 2025 by Canada. Certain agricultural products will retain tariff protection 
for both Canada and the Republic of Korea; 40 services reservations for Canada and 84 for the Republic of Korea.   Can$3.5 billion Can$7.3 billion (not entered into force in 2013) Can$4.0 billion  Can$797.0 million Can$353.0 million 
WT/REG362 
Colombia 
Date of signature/Entry into force: 
Transition to full implementation: 
 
Main products/sectors excl uded from liberalization: 
 
 
 
Other measures: 
Merchandise trade 2013: 
 Exports 
 Imports 
 Of which is preferential: 
 Of which is MFN duty-free: 
Commercial services trade: 
 Exports 
 Imports 
WTO document series  
21 November 2008/15 August 2011 
Tariffs to be phased out by 2027 for Canada and 2032 
for Colombia; TRQs by 2023 
Certain agricultural products will retain tariff protection 
for both Canada and Colombia; 26 services 
reservations for Canada and 21 for Colombia 
 
Mutual recognition of services, labour  
 
Can$711.5 million  
Can$691.4 million  
Can$107.5 million 
Can$538.2 million 
 
Can$196 million  
Can$98 million  
WT/REG301 
Jordan 
Date of signature/Entry into force: Transition to full implementation: Main products/sectors excl uded from liberalization: 
 
Merchandise trade 2013:  Exports  Imports  Of which is preferential:  Of which is MFN duty-free: WTO document series  
28 June 2009/1 October 2012 Tariffs to be phased out by 2016 for Jordan Certain agricultural products will retain tariff protection 
for both Canada and Jordan 
 Can$65.8 million  Can$46.1 million  Can$23.7 million Can$2.8 million WT/REG335 WT/TPR/S/314 • Canada 
 
- 40 - 
 
  Trade Agreement Details 
Panama 
Date of signature/Entry into force: 
Transition to full implementation: 
 
Main products/sectors excl uded from liberalization: 
 
 
 
Other measures: 
Merchandise trade 2013: 
 Exports 
 Imports 
 Of which is preferential: 
 Of which is MFN duty-free: 
Commercial services trade: 
 Exports 
 Imports 
WTO document series  
14 May 2010/1 April 2013 
Tariffs to be phased out by 2027 for Canada and 2031 
for Panama; TRQs by 2031 
Certain agricultural products will retain tariff protection 
for both Canada and Panama; 44 services reservations 
for Canada and 47 for Panama 
 
Competition, Labour 
 
Can$94.7 million  
Can$73.6 million  
Can$99.2 thousand 
Can$72.2 million 
 
.. 
.. 
WT/REG334 
Honduras 
Date of signature/Entry into force: Transition to full implementation: Main products/sectors excl uded from liberalization: 
  Other measures: Merchandise trade 2013:  Exports  Imports  Of which is preferential:  Of which is MFN duty-free: Commercial services trade:  Exports  Imports WTO document series  
5 November 2013/1 October 2014 Tariffs and TRQs to be phased out by 2028 Certain agricultural products will retain tariff protection 
for both Canada and Honduras; 41 services reservations for Canada and 62 for Honduras Competition, Labour  Can$43.7 million  Can$234.9 million  (not entered into force in 2013) ..  Can$23 million  Can$11 million  No notification received to date  
.. Not available. 
Source: WTO Secretariat based on St atistics Canada, Canadian International Merchandise Trade Database, 
and information provided by  Canadian authorities. 
2.3.2.2  Unilateral preferential regimes 
2.29.  Canada has three unilateral preference regimes, providing duty-free or preferential 
treatment to many products from developing and/or least-developed countries. These are the 
General Preferential Tariff (GPT) modelled on UNCTAD's Generalized System of Preferences 
scheme, a Least Developed Country Tariff, an d a Commonwealth Caribbean Country Tariff. 
Eligibility criteria differ by programme, thus some countries may benefit from more than one 
scheme (Table A2.3). 
2.30.  As part of its 2013 Economic Action Plan, Canada has committed to modernizing its 
GPT regime for developing countries. After a comp rehensive review and consultations undertaken 
during 2012-13, Canada launched the process of modernizing the programme by graduating 
72 higher-income, trade-competitive countries as of 1 January 2015, and renewing the programme for another 10-year period. Furthermore, beneficiar ies will be reviewed every two years based on 
objective criteria to determine whether they remain eligible for the programme.
15 
2.31.  As part of the 2013 Economic Action Plan's GPT Review, the Least Developed Country Tariff 
scheme also graduated two trade-competitive countries as of 1 January 2015, Equatorial Guinea and the Maldives.
16 The Commonwealth Caribbean Country Tariff schemes are part of the Customs 
Tariff and have not undergone any changes during the review period.  
                                               
15 Economic Action Plan 2013. Viewed at: http://actionplan.gc.ca/en/page/economic-action-plan-2013. 
16 Canada Border Service Agency online information. Viewed at: http://www.cbsa-
asfc.gc.ca/publications/cn-ad/cn14-020-eng.html. WT/TPR/S/314 • Canada 
 
- 41 - 
 
  2.3.3  Other agreements and arrangements 
2.3.3.1  Trade with Australia and New Zealand 2.32.  Pursuant to long-standing Agreements on Trade or Trade and Economic Cooperation, 
Canada has special trading relations with Australia and New Zealand. The agreement with Australia 
gives preferential tariff treatment to a specified list of products in the annex for both countries; 
whereas the agreement with New Zealand contains tariff and non-tariff measures provisions. With respect to New Zealand, special tariffs were gi ven through exchanges of letters, and a special 
status of preferred supplier was granted between the parties for agricultural, horticultural, and 
fisheries products. Canada implements these prefer ential tariffs through the Customs Tariff. There 
is no waiver or other instrument in place under the WTO for these Agreements. 
2.3.3.2  Anti-counterfeiting Trade Agreement 
2.33.  Canada is a signatory to the Anti-Counterfeiting Trade Agreement (ACTA) that is a 
plurilateral agreement negotiated among eleven trading partners.
17 The ACTA aims to combat 
infringement of intellectual property rights, in pa rticular piracy and counterfeiting. It provides for 
enhanced international cooperation, promotion of enforcement practices, and a legal framework 
for IPR enforcement. Although the Agreement was finalised in 2011, it has not yet entered into force.  
2.4  Investment Regime  
2.4.1  Investment Framework and Agreements 2.34.  Canada has a number of policy instruments for its investment regime. In addition to its 
main law on investment, the Investment Canada Ac t, Canada has bilateral investment agreements 
and investment chapters or provisions in FTAs to facilitate and promote investment. In order to 
protect or facilitate investment, Canada promotes the principles of transparency, national and MFN treatment, and fair and equitable treatment for investments. 
2.35.  Canada has 28 bilateral agreements on investment, known as Foreign Investment 
Promotion and Protection Agreements (FIPAs), whose purpose is to protect and promote foreign investments through legally-binding rights and obligations. During the review period Canada has 
been actively negotiating new FIPAs, and 8 new FIPAs entered into force. FIPAs are negotiated 
based on a model which includes key principles  such as a broad definition of investment, 
obligations for national treatment and MFN both pre- and post-establishment, protection against 
expropriation, free transfers of funds, disciplines  against performance requirements, and access to 
arbritration or dispute settlement mechanisms. Furthermore, nearly all of its 11 FTAs have some 
provision on investment, which are modelled after the NAFTA investment chapter.  
2.36.  The Settlement of International Disputes Act (SIDA) was passed in 2008 and came into 
force on 1 November 2013, thus Canada became a party to the United Nations Convention on the 
Settlement of Investment Disputes (ICSID). Canadi an investors, and foreign investors in Canada, 
now have benefits under the Convention as well as access to dispute settlement. 
2.4.2  Investment Canada Act 
2.37.  Canada's 1985 Investment Canada Act (ICA) provides the main legal framework for 
reviewing foreign investment in Canada. The review of foreign investment has two main purposes: to assess if they are likely to benefit Canada and to see if they are likely to injure national security. 
All foreign investment to establish a new Canadian business and to acquire control of a Canadian 
business, must be notified unless the investment is reviewable (see below), in accordance with the ICA (Art. 11). The ICA provides for a review of foreign investments to acquire a Canadian business 
if the asset value of the Canadian business is above a certain threshold (see Table 2.4); in this 
case an application for review must be filed. For investments below this threshold a notification 
                                               
17 Signatories include Australia, Canada, the Repu blic of Korea, Japan, New Zealand, Morocco, 
Singapore, and the United States. Other parties to the negotiations include the European Union, Mexico, and Switzerland. WT/TPR/S/314 • Canada 
 
- 42 - 
 
  must be presented.18 Indirect acquisitions by WTO member investors are not reviewable, but are 
nonetheless subject to notification. Lower review thresholds apply for acquisitions of cultural businesses. The thresholds for review for cultural transactions are Can$5 million and Can$50 million for direct and indirect acquisitions respectively and are based on total assets. 
A number of legal amendments and other changes to  the ICA were introduced during the review 
period (Table 2.4). 
2.38.  New provisions in the ICA were introduced  in 2009, through amendment, to provide for the 
review of investments on national security gr ounds. Accompanying regulations, known as the 
National Security Review of Investments Regulations, prescribe periods of time and investigative 
bodies for the reviews. The Governor in Council (GIC) can order a national security review of new businesses, investments below the net benefi t threshold, and minority investments. The 
Minister of Industry makes a recommendation following consultation with the Minister of Public 
Safety, who in turn consults the domestic security & intelligence (S&I) community. The decision to permit, block, or allow with conditions, rests with the GIC. Investments are considered on a 
case-by-case basis. In 2013, the first rejection of a foreign investment on national security 
grounds was taken.
19  
Table 2.4 Investment Canada Act, 2011-14 
Major developments 
Thresholds 
The amount was Can$354 million for 2014, Can$344 million for 2013, Can$330 million for 2012, and 
Can$312 million for 2011, for WTO member investors. 
Legal amendments 
2012 Jobs, Growth and Long-term  Prosperity Act 
These amendments gave the Minister: greater ability to publicly communicate in formation on the review 
process while preserving commercial confidences; author ity to accept security, when  offered by an investor, 
for payment of any penalties ordered by a court fo r a contravention of the Act, promoting investor 
compliance with undertakings; the ability to publicly disclose the fact that he has sent a preliminary notice to 
an investor stating that he is not satisfied that the investment is likely to be of net benefit to Canada; and 
the ability to explain publicly his reasons for sending th e notice as long as it would not cause harm to the 
Canadian business or the investor. 
2013: Economic Action Plan 2013 Act, No. 1 
These amendments included the following: introducing a definition for "state-owned enterprise"; creating a 
distinct net benefit threshold for private sector WT O Member investors based on enterprise value while 
maintaining the asset value based threshold for SOE investors; permitting the extension of timelines for national security reviews; and permitti ng the Minister of Indust ry to determine or declare that an entity is 
controlled in fact by an SOE.  
2014: Budget Implementation Act  
The Act requires foreign investors to  file a notification whenever they acquire a Canadian business through 
the realization of security for a loan or other financial assistance, unless the transaction is subject to 
approval under another statute. 
2014: Budget Implementation Act  
The Act provides the Minister with discretion to disclo se certain information relate d to notices sent to the 
parties at each stage of national secu rity review, including a notice of a Governor In Council order allowing or 
disallowing the investment. 
Regulation changes 
2012: The threshold for net benefit reviews was raised to Can$1 billion over a four-year period; established the methodology for calculating the enterprise value of a Canadian business; re moved references to the 
transportation, financial services and uranium producti on sectors because lower thresholds for these sectors 
have been eliminated; and formalized the process for collecting additional information relevant to the net 
benefit and national security processes. 
                                               
18 Investment Canada Act  (R.S.C. 1985, c. 28 (1st Supp.)), current version of 11 November 2014. 
Viewed at: http://laws-lois.justice.gc.ca/PDF/I-21.8.pdf. 
19Viewed at: http://www.mondaq.com/canada/x/270072/Inward+Foreign+Investment/Canadas+first+ 
rejection+of+an+investment+on+national+security+gr ounds+See+more+at+httpww wmcmillancaCanadasfirst
rejectionofaninvestmentonnationalse curitygroundssthashE62R7bz8dpuf. WT/TPR/S/314 • Canada 
 
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  Major developments 
Review process changes 
2012: The Government revised the guidelines for foreign SOEs; clarified how proposed investments by SOEs 
are assessed under the Act; and announced it would proceed with legislative amendments to exclude SOE investors from the Can$1 billion enterprise value net benefit threshold increase and to give the Minister the flexibility to extend the timelines for na tional security reviews, as necessary. 
Guideline changes 
2012: A new guideline was issued to make formal mediation procedures available under the Act. The 
guideline, establishing an alternative to potentially costly and time-consuming litigation that may be initiated under the Act, provides a voluntary means of resolving disputes when the Minister believes an investor has 
failed to comply with an undertaking. 
Source: Viewed at: http://www.ic.gc.ca/eic/site/ica -lic.nsf/eng/home and information provided by the 
Canadian authorities. 
2.39.  Investments under the Investment Act are highly concentrated and originate mainly in the 
major developed countries, with the United States, averaging 52% of all investments during 
2011-13, followed by the EU with 29%. The sect ors receiving the most investments, by asset 
value, are natural resources, followed by manuf acturing, and wholesale and retail trade. Direct 
acquisitions are the main source of investments, followed by new businesses (Table 2.5). 
Table 2.5 Investment Canada  Act Statistics, 2011-14 
 2011 2012 2013 2014 
 No. Amount 
(Can$1,000) No. Amount 
(Can$1,000) No. Amount 
(Can$1,000) No. Amount 
(Can$1,000) 
Acquisitions 470 30,350 525 55,998 471 49,776 554 45,371
 Direct 390 24,434 460 50,945 406 27,353 467 38,257
 Indirect 80 5,916 65 5,053 65 22,423 87 7,115
New 
Businesses 179 1,536 195 351 178 1,666 186 2,032
Total 649 31,886 720 56,349 649 51,441 740 47,403
Source: Viewed at: http://www.ic.gc.ca/eic/site/ica-lic.nsf/eng/h_lk00015.html. 
2.4.3  Other Investment Restrictions 
2.40.  Canada's objective is to attract FDI in order to promote economic growth and competition. 
However, through the Investment Canada Act or other statutes, there are provisions that restrict 
or otherwise prohibit investment in certain sectors (Table 2.6). Provincial and territorial Acts and 
statutes may also contain provisions that restrict or prohibit investment in some sectors. 
2.41.  In 2013, pursuant to the Jobs, Growth and Long-term Prosperity Act, changes to the 
Telecommunications Act were introduced to liberalise foreign investment in the 
telecommunications industry. In particular, foreign investment restrictions were lifted in June 2012 
for telecom companies with a market share of 10% or less, as measured by revenue.20 Companies 
that grow their market shares in excess of 10% ot her than by way of merger or acquisitions will 
continue to be exempt from the restrictions. The Telecommunications Act requires that carriers 
with more than a 10% market share must be Canadian owned and controlled. Pursuant to section 16 of the Act, Canadian carriers with more than a 10% market share must have at least 80% of 
their voting shares owned by Canadians, and not less than 80% of the members of their board of 
directors must be Canadian. In addition, the carri er must not be otherwise controlled by persons 
that are not Canadians. Further, the Canadian Telecommunications Common Carrier Ownership and Control Regulations establish that investors or holding companies of Canadian carriers will be 
treated as Canadians if at least 66.66% of their voting shares are held by Canadians. Resellers are 
not subject to Canadian ownership and control requirements, nor do they apply to satellites, satellite earth stations and international submarine cables.  
                                               
20 Jobs, Growth and Long-term Prosperity Act, B ill C-38, Part 4, Division 41 and WTO document 
S/C/N/679, 26 February 2013. WT/TPR/S/314 • Canada 
 
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  Table 2.6 Foreign Investment Restrictions, 2014 
Industry sector Provision Reference 
Fishing Only Canadians or Canadian-controlled 
corporations are permitted to obtain fishing licenses. However the regulations specify that the Minister may issue a license to a foreign fishing vessel for certain purposes. Coastal Fisheries Protection Act 
Mining Foreign ownership of uranium mining 
properties is limited to 49% with the 
possibility of being ex empted from the Policy. Non-Resident Ownership Policy 
in the Uranium Mining Sector 
Air transport Foreign ownership of airlines is limited to 
25%. Notwithstanding the 25% limit on foreign voting interests in Canadian air carriers, many Canadian airlines have adopted variable voting shares. These enable foreign equity investment  in an air enterprise 
beyond the 25% limit, but ensure that at 
least 75% of the voting interests rest with Canadians. This has allowed these companies to access a larger pool of investors. "Best practice" as adopted by 
Canadian carriers to the extent it does not violate the Canada Transportation Act or other legislation 
Oil sands Minister of Industry will  find the acquisition or 
control of a Canadian oil sands business by a 
foreign State-Owned Enterprise to be of net 
benefit to Canada on an exceptional basis 
only. Investment Canada Act 
Book publishing and 
distribution Foreign investment in new businesses is 
limited to Canadian-controlled joint ventures, and foreign acquisition of existing businesses is allowed under certain conditions. Investment Canada Act 
Periodical publishing Foreign acquisitions of Canadian-owned and 
Canadian-controlled pe riodical publishing 
businesses are not permitted. Foreign 
investment in the periodical publishing sector 
is allowed under certain conditions. Investment Canada Act 
Broadcasting Foreign ownership of broadcasting 
programming and distribution is limited to 20% of the voting shares. Broadcasting Act 
Film distribution Foreign acquisition of a Canadian-controlled 
distributor is not allowed. Foreign investment 
in new distribution businesses is allowed 
under certain conditions. Investment Canada Act 
Telecommunications Restricts fore ign ownership to 20% shares of 
a telecommunication carrier. Telecommunication Act 
Source: WTO Secretariat, based on informatio n provided by the Canadian authorities. 
2.4.4  Investment Promotion 
2.42.  The Canadian Trade Commission Service (TCS) under the Department of Foreign Affairs, 
Trade and Development Canada is responsible for fo reign direct investment promotion activities on 
behalf of the government. In fulfilling this role, the TCS promotes Canada's competitive 
advantages in foreign markets or companies that have a higher propensity to invest in high value 
sectors, and where Canada offers clear advantages. Trade Commissioners in Canada and abroad serve as advocates and provide advice to potential investors in areas such as establishing a business in Canada, on the various strengths and assets of particular sectors, and on the overall 
business environment in Canada (e.g., corporate tax rates, business costs, fiscal strength, etc). 
Trade Commissioners also facilitate introductions to provincial and municipal investment promotion agencies, and direct investors to various mechanisms available from all orders of government to 
help facilitate the investment. DFATD manages two key funding programmes designed to support 
Canadian communities in their foreign investment attraction efforts. The Invest Canada-Community Initiatives (ICCI) program provides funding and financial support to 
communities seeking to improve their capacity to a ttract, retain and expand FDI in order to create 
jobs and growth in their jurisdictions. ICCI distributes over Can$3 million annually among 85-90 communities. The Foreign Trade Zones – Mark eting Program (FTZ-MP) is a five year pilot 
programme, with a Can$1 million annual budget, de signed to provide funding to regional or 
community organizations in order to promote investment in Canada's Foreign Trade Zones. No 
funds have been disbursed as of January 2015.  WT/TPR/S/314 • Canada 
 
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  2.43.  There are five basic funding programme s applicable to all business sectors; these 
programmes offer incentives such as tax credits, lower taxes, direct funding, and financing support.
21 The details of the five programmes are as follows: 
• The Scientific Research and Experimental Development (SR&ED) program gives claimants 
benefits in the form of a refundable investment tax credit, a reduction of taxes payable, or 
both for their expenditures on eligible research and development (R&D) work done in Canada.  
• The Advanced Manufacturing Fund (AMF) promot es continued growth of Ontario's advanced 
manufacturing sector by supporting efforts to develop cutting-edge technologies and large-scale activities that will improve processes and increase productivity, establish clusters or global supply chains and collaborate with pr ivate sector, and research and post-secondary 
institutions. The programme was launched in December 2013, with a budget of 
Can$200 million that is being administered by the Federal Economic Development Agency of Southern Ontario over five years, starting in 2014-15. 
• The Industrial Research Assistance Program (IRAP) assists firms to develop, adopt and 
adapt technologies and incorporate them into competitive products and services to be commercialized in the global marketplace. IRAP  provides advisory services and funding to 
help SMEs undertake innovation projects. The programme was launched in 2013, with a 
budget of Can$20 million that is being admi nistered over three years by the National 
Research Council. 
• Export Development Canada (EDC) provides flexible inbound foreign direct investment 
financing programmes to support greenfield and brownfield direct investments in Canada. In 
addition to providing financing support for an investor's initial investment in Canada, EDC also offers highly flexible support to foreign direct investors once they are operating and 
exporting from Canada through loans, guarantees and lines of credit. 
• Business Development Bank of Canada (BDC) offers financing solutions for foreign direct 
investors specifically tailored to protect cash flow and promote growth. BDC provides 
financing terms between 4 and 30 years to support investments in land and buildings, 
equipment or working capital. BDC is also a leader in subordinate financing to help finance fast-growing companies. 
                                               
21 The Canadian Trade Commissioner Service onli ne information. Viewed at: http://www.trade 
commissioner.gc.ca/eng/funding/home.jsp. WT/TPR/S/314 • Canada 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports 3.1.1  Customs procedures and requirements 3.1.  Customs services and other border services (border enforcement, immigration and food 
safety services) are under the responsibility of  the Canadian Border Service Agency (CBSA).
1 The 
Customs Act2 and its implementing regulations are the main legislation governing customs 
procedures and requirements in Canada. They have not undergone any major change since 2011, 
except an amendment in 2014 with regards to, inter alia , some provisions concerning the seizure 
of goods or conveyance, and other provisions for the legal support for the further development of the Advance Commercial Information (ACI) programme. The latter provisions were to be implemented in 2015. 
3.2.  The objective of the ACI programme is to provide CBSA officers with electronic pre-arrival 
information, in order to allow them to undertake risk assessments in advance of the arrival of commercial imports into Canada. During the period under review, the CBSA has pursued the 
implementation of the ACI programme  with the rolling out, in 2011, of eManifest , its third and last 
phase. Under the first two phases, air and marine carriers were required to submit cargo and conveyance information electronically before their arrival. The eManifest  programme extended this 
requirement to carriers for all highway and rail shipments. In addition, freight forwarders and 
importers are required to submit advance second ary data. The deployment of electronic systems 
was completed in 2011 for highway carriers and in May 2012 for rail carriers. The eManifest  
programme is expected to become fully operational in 2016. Timeframes for pre-arrival 
information are as set out in Table 3.1. 
Table 3.1 Timeframes for submission of pre arrival information by mode 
Client/type of 
information Marine Air Rail Highway 
Carriers:  electronic 
cargo, conveyance and crew/passenger information Cargo: 24 hours prior to loading 
or arrival depending on type and origin of goods.  Crew/conveyance: 24 or 96 hours prior to arrival 4 hours prior to 
arrival or at time of departure 2 hours 
prior to arrival 1 hour prior 
to arrival 
Freight forwarders:  
secondary information 24 hours prior to loading or 
arrival depending on type and 
origin of goods 4 hours prior to 
arrival or at time 
of departure if 
flight is less than 
4 hours in length 2 hours 
prior to 
arrival 1 hour prior 
to arrival 
(not yet 
mandatory) 
Importers/brokers:  
advance electronic trade data 24 hours prior to loading or 
arrival depending on type and origin of goods 4 hours prior to 
arrival or at time of departure if flight is less than 4 hours in length 2 hours 
prior to arrival not 
required 
Source: WTO Secretariat, based on informatio n provided by the Canadian authorities. 
3.3.  CBSA's risk management approach relies on  the National Targeting Center (NTC) and its 
regional targeting units. At the earliest point in the importation process, the NTC identifies suspected high-risk people, goods and conveyances in order to alert the appropriate CBSA officers 
of an impending suspected risk or threat to nation al security and/or public safety priorities. CBSA 
queries ACI data against an automated risk assessment tool using risk rules for commercial goods. Cargo identified as being high risk is then reviewed by NTC Targeting Officers using various 
methods such as checks in law enforcement databases to confirm or negate the risk. Goods that 
are more systematically subject to inspection include food, plant and animal products; goods 
suspected of contraband; and, goods that may not be in compliance with commercial regulations. 
                                               
1 Canada Border Services Agency Act , last amended on 10 February 2007. Viewed at: http://laws-
lois.justice.gc.ca/eng/acts/c-1.4/. 
2 Customs Act , last amended on 1 January 2015. Viewed at: http://laws-lois.justice.gc.ca/eng/acts/C-
52.6/. WT/TPR/S/314 • Canada 
 
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  According to the authorities, between 0.75% an d 2% of shipments are subject to physical 
examination. 
3.4.  All importers of commercial goods are requir ed to obtain a business number by creating an 
import/export account with the Canada Revenue Agency (CRA). The business number is generally 
issued within minutes. Import documentation requirements are broadly the same as at the time of 
Canada's previous review. These include copies of the cargo control document, the invoice, a Customs Coding Form (Form B3)
3, and any other relevant documentation (permit, health 
certificate, certificate of origin or statement of origin when necessary). The documents can be 
presented in paper copies, or for authorized users, transmitted using the G7 Electronic Data Interchange (EDI) application. Canada does not have any law or regulation relating to pre-shipment inspection.
4 
3.5.  Importers may use the services of an au thorized agent (including customs brokers) to 
transact with the CBSA. However, they remain responsible for the accuracy and completeness of 
their transactions. Under the Customs Act, only the owner of a shipment (or a licensed customs 
broker) can account for goods and pay duties. In particular, separately incorporated divisions of a 
single company may not transact business on behalf of one another. Customs brokers are licensed by the CBSA.
5 Most importers and custom brokers have registered with the CBSA for the Release 
Prior to Payment (RPP) privilege, and therefore, can obtain the release of their goods prior to the 
payment of duties and taxes. To be granted this  privilege, they have to post a security, the 
amount of which is based on the average monthly duties and taxes owing (including the goods and services taxes in the case of brokers and non-resident importers), and up to a maximum of 
Can$10 million.
6 About 72% of commercial goods are released using the RPP privilege. 
3.6.  In addition to the RPP, CBSA is running a number of programmes aiming at facilitating trade 
and enhancing border security (Table 3.2). Through its Trusted Traders Strategy, qualified 
companies can benefit from streamlined and more efficient border processes. The Strategy 
includes the Partners in Protection (PIP), the Customs Self-Assessment (CSA), and the Free and 
Secure Trade (FAST) programmes.  
Table 3.2 CBSA trade facilitation and border security programmes 
Programme Description/benefits Eligibility Membership  
(as of 1 April 2014) 
Commercial Driver 
Registration Program (CDRP) Provides commercial drivers 
with access to an expedited border crossing and an extended participation in other programmes. Citizen or permanent 
residents of Canada or the United States .. 
Release Prior to 
Payment (RPP) 
Privilege Allows importers or 
customs brokers to obtain 
release of goods before 
duties and taxes are paid.  Any importer or customs 
broker.  
All goods are eligible 
(including controlled and 
regulated goods). .. 
Customs 
Self-Assessment (CSA) Expedited customs 
clearance and streamlined accounting and payment process for imported commercial goods from the United States and Mexico by pre-approved importers, carriers and registered 
drivers. Goods must be 
shipped directly from the United States or Mexico. Importers and carriers 
must undergo a risk-assessment and upgrade their systems to the programme requirements. The programme is available to CDRP-registered drivers only. 
Prohibited, controlled or 
regulated imports are not eligible. 96 importers and 901 
carriers  
                                               
3 Two copies of form B3 are required if these do cuments are presented at a non-automated CBSA office. 
4 WTO document G/PSI/N/1/Rev.2, 9 October 2014. 
5 A list of licensed brokers is available on the CBSA website. Viewed at: http://www.cbsa-asfc.gc.ca/ 
services/cb-cd/cb-cd-eng.html. 
6 Canada Border Services Agency, Release Prio r to Payment Privilege, Memorandum D17-1-8, 
11 July 2014. Viewed at: http://www.cbsa-asfc.gc.ca/publications/dm-md/d17/d17-1-8-eng.pdf. WT/TPR/S/314 • Canada 
 
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  Programme Description/benefits Eligibility Membership  
(as of 1 April 2014) 
CSA-Platinum 
(formerly Partners 
in Compliance) Enhanced business 
certainty and reduced 
government intrusion 
through reduced exposure 
to CBSA trade verifications: 
participants are not 
automatically subject to 
routine, cyclical post-
release verifications.  
Decreased exposure to 
trade-related penalties. In 
cases of non-compliance 
with trade programme 
requirements, the CBSA 
may not rely on the 
assessment of 
Administrative Monetary 
Penalties as a first 
response. Approved CSA importers in 
good standing. Once 
approved, participants 
receive enhanced benefits 
that extend beyond their 
CSA membership benefits. 7 importers  
Partners in 
Protection (PIP) Streamlined border 
processes for low-risk, pre-approved businesses (importers or exporters, carriers, warehouse operators and freight forwarders). The CBSA has signed mutual recognition 
arrangements with the 
United States, Japan, the Republic of Korea, and Singapore. Good record of compliance 
with the CBSA; facilities must be directly involved in the cross-border movement of commercial goods.  1 532 (of which 711 are 
CSA members)  
Free and Secure 
Trade Program 
(FAST)  
(joint programme 
with the U.S. 
border authorities) Allows an expedited border 
clearance for imports by 
approved companies and 
transported by approved 
carriers using registered 
drivers. Prohibited, 
controlled or regulated 
imports are not eligible. 
Goods must be shipped 
directly from the 
continental United States or 
Mexico. Importers and carriers 
must be members of the 
CSA and PIP programmes. 
Drivers must be registered 
under the CDRP or FAST 
driver registration 
programmes.  
Advance Commercial Information (ACI) programme Requires carriers to 
transmit pre-arrival information in order to allow the authorities to effectively identify threats to health, safety, and 
security prior to the arrival 
of goods. Mandatory for all carriers, 
freight forwarders and importers (only in air and marine modes).
a  
.. Not available. 
a At the time of writing this report , this requirement is mandatory only  in the air and marine modes. It 
will become mandatory for highway,  rail and freight forwarders upon  the coming into force of the 
updated Reporting of Imported Goods Regulations, in early 2015 (it will not be mandatory for importers at that time).  
Source: CBSA online information. Viewed at: http://www.cbsa-asfc.gc .ca/menu-eng.html. 
3.7.  The CBSA is also running a number of bilateral programmes with Canada's key trading 
partners, mainly the United States. In 2011, au thorities from the two countries launched the 
Beyond the Border Action Plan7, a joint initiative through which they made commitments in a 
number of areas with the goal of ensuring a mo re efficient and predictable border clearance 
process. The Plan comprises 32 initiatives related to issues such as: the expansion of trusted 
                                               
7 Government of Canada (2011).  WT/TPR/S/314 • Canada 
 
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  trader and traveller programmes; coordinated investments in infrastructure and technology; the 
simplification of business reporting requiremen ts; the enhancement of travellers and cargo 
screening; better information sharing; and the elimination of the duplication of inspections. These initiatives are to be implemented by 2016.  
3.8.  The authorities noted that progress has been  achieved in areas such as the implementation 
of a common approach to screening travellers  through the ongoing implementation of automated 
sharing of biographic visa, immigration and biometric asylum information on third country 
nationals, and work on a pre-departure screening  system for visa-exempt travellers flying to 
Canada (largely mirroring existing U.S. systems). Investments in border infrastructure are underway, new benefits have been introduced to  the trusted traveller (NEXUS) programme, and 
trusted trader programmes have been further ha rmonized and enhanced. CBSA is expected to 
launch its single window in 2015 with seven of the nine participating departments, with the 
window becoming fully integrated by mid-2016.  
3.9.  The Administrative Monetary Penalty System (AMPS) grants the CBSA the mandate to impose 
monetary penalties to commercial clients, for non-compliance with customs legislation and related 
regulations. The penalty structure is generally graduated, with higher penalties being assessed for repetition of same infractions. However, the penalty for a single contravention cannot exceed 
Can$25,000. In assessing penalties, the CBSA takes into consideration factors such as the type, 
the frequency and the severity of the infraction, and the compliance history of the client. Upon receipt of the CBSA's notice of penalty assessment, the client has 90 days to request a correction or a review (appeal). In such case, the payment of the penalty is deferred until a decision is 
rendered. A recourse programme is in place to provide clients with a fair and impartial review of 
decisions and actions taken by CBSA. In January 2011, an Enhanced Complaint Mechanism (ECM) was added to the programme to track and report on complaints, compliments, comments or 
suggestions from clients. Clients that are unsatisfi ed with the decision may appeal to the Federal 
Court. There has been no major review to the AMPS since 2011.  
3.1.2  Customs valuation 
3.10.  The main pieces of legislation governing customs valuation are provided for in the 
Customs Act (Part III), the Valuation for Duty Regulations
8, and the D-13 series memoranda.9  
3.11.  For all imported goods, importers are required to declare a value in local currency at the 
Bank of Canada's exchange rate prevailing on the date of direct shipment of the goods.10 Customs 
duties are assessed on an f.o.b. basis using prim arily the transaction value. Where this method 
cannot be used, other methods are resorted to , in the order of hierarchy set out in the 
WTO Customs Valuation Agreement. CBSA's valuation officers review the declared value, generally 
through a risk-based post-importation verification and based on the client's records. The CBSA 
may re-determine or further re-determine the origin, tariff classification, and/or value for duty on its own initiative or in response to a se lf-adjustment. Re-determinations (or further 
redeterminations) must be made within four years after the date of the initial determination.
11 
Customs officers must notify importers of their decisions and the rationale for them. In most cases, importers may request a re-determination or a further re-determination (as an administrative appeal), of the customs value within 90 days of the notification of a decision by the 
CBSA.  
3.12.  Importers may appeal the CBSA's decisions to the Canadian International Trade Tribunal 
(CITT) within 90 days. CITT decisions may be appealed to the Federal Court of Appeal and, beyond 
that, the Supreme Court of Canada. The most frequent court challenges on valuation issues have 
been cases relating to: post-importation payments, distribution fees, sales for export,  and the 
application of Article 5 of the WTO Customs Va luation Agreement. Between 2011 and 2014, nine 
                                               
8 Valuation for Duty Regulations, SOR/86-792. 
9 The series of D-13 Memoranda contain regulations,  policies and procedures used by the borders 
agency in the valuation of goods. Viewed at: ht tp://www.cbsa-asfc.gc.ca/publ ications/dm-md/d13/d13-1-3-
eng.html. 
10 Exchange Rate for the Calculation of the Value for Duty Under the Custom s Act. Memorandum D13-2-
3. 
11 Canada Border Services Agency, Memorandum D11-6-6, 12 April 2013. Viewed at: http://www.cbsa-
asfc.gc.ca/publications/dm -md/d11/d11-6-6-eng.pdf. WT/TPR/S/314 • Canada 
 
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  appeals related to valuation issues have been filed at the CITT. Of the decisions rendered by CITT, 
two were further appealed at the Federal Court of Appeal. All appeals but three dealt with the 
application of the transaction value method. No ap peals have been filed at the Supreme Court of 
Canada in regards to valuation issues. 
3.1.3  Rules of origin 
3.13.  Canada's non-preferential rules of origin are in place to, inter alia , distinguish MFN imports 
from those under the General Tariff. There have been no changes in the MFN rules of origin since 
the previous review. For goods to qualify for MFN tariff treatment, at least 50% of their production 
cost must be incurred by the industry of one or more MFN beneficiaries (including Canada). In addition, goods must be finished in a country receiving MFN treatment in the form in which they are to be imported in Canada.
12 Preferential rules of origin va ry across preferential agreements 
(Table 3.3). FTA rules of origin are largely base d on a tariff-shift methodology. In some cases, 
they contain a process, value, weight or volume requirement.  
Table 3.3 Overview of preferential  rules of origin criteria, 2014 
Preferential programme or 
partner Brief overview 
General Preferential Tariff 
(GPT) The value of non-originating materials must not exceed 40% of the 
ex-factory price (SOR/2013-165). 
Least Developed Country 
Tariff (LDCT) The value of non-originating materials must not exceed 60% of the 
ex-factory price (75% threshold fo r some apparel and made-up textile 
articles) (SOR/2013-165). 
Commonwealth Caribbean 
Countries Tariff (CCCT) The value of non-originating materials must not exceed 40% of the 
ex-factory price (SOR/98-36). 
Australia Tariff (AUT) and 
New Zealand Tariff (NZT) No less than 50% of the cost of production of the goods must be incurred 
by domestic indust ries (SOR/98-35). 
NAFTA 
Product-specific rules of origin based on tariff shift, and in some cases 
contain a process, value, weight or volume requirement. Chile 
Colombia 
Costa Rica 
Panama 
Peru 
Israel 
EFTA (Iceland, Liechtenstein, 
Norway and Switzerland) 
Jordan 
Honduras 
Republic of Korea 
Source: Based on DFAIT online information. Viewed at: http://www.international.gc.ca/apec/tariffs-
tarifs.aspx?lang=eng. 
3.14.  Goods eligible for MFN treatment, the Australia tariff or the New Zealand tariff are not 
required to present a certificate of origin. Their importation is not subject to any particular 
requirement besides indicating the beneficiary country on the invoice or on any documentation submitted for the clearance of the goods. Imports under the other agreements require certificates 
of origin. These certificates are agreement-specific  and must be provided by the importer in the 
case of free trade agreements. A statement of origin from the exporter or producer may be 
acceptable for low value shipments. For most FT As, shipments with a value of Can$1,600 or less 
are considered as low value shipments. The thresholds for NAFTA and Republic of Korea are 
respectively Can$2,500 and US$1,000 (or an equivalent value in domestic currency). For other 
                                               
12 The official version of the MFN tariff rules of orig in Regulations may be found on the Department of 
Justice website. Viewed at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-98-33/page-1.html.  WT/TPR/S/314 • Canada 
 
- 51 - 
 
  tariff treatment (GPT, CCCT, and LDCT), the certificat e of origin (or a statement of origin) must be 
issued by the exporter. There is no requirement to have the certificate of origin stamped or signed 
by an authority in the country of origin. 
3.1.4  Tariffs 
3.15.  Customs import duties accounted for less than 2% of Canada's total tax revenues.13 Canada 
regularly submits its customs tariff and trade data to the WTO Integrated Data Base.14 
3.16.  The customs tariff comprises the General Tariff, the MFN tariff, and several preferential tariff 
treatments granted under bilateral or plurilateral agreements, or unilateral concession schemes. 
The General Tariff has a flat rate of 35% (or the MFN rate, whichever is higher), and is in principle, applicable to non-WTO Members. In practice, Canada grants at least the MFN tariff treatment to all its trading partners, except the Democratic Republic of Korea, so this country would be the only 
one subject to the General Tariff. 
3.1.4.1  Applied MFN rate 3.17.  Canada's 2014 tariff is based on the 2012 Edition of the Harmonized System nomenclature 
(HS 2012). The eight-digit level tariff has 7,251 lines,  941 lines less than the tariff at the time of 
the previous review, which was based on HS 2007 (Table 3.4).  
Table 3.4 Structure of the MFN tariff schedule, selected years
a 
(%) 
  2006 2010 2014 
1. Total number of tariff lines 8,455 8,192 7,251 
2. Non-ad valorem  tariffs (% of all tariff lines) 3.8 3.4 3.9 
3. Non- ad valorem  with no AVEs (% of all tariff lines) 0.5 2.1 0.9 
4. Lines subject to tariff quotas (% of all tariff lines) 2.1 2.2 2.6 
5. Duty free tariff lines (% of all tariff lines) 52.7 68.6 67.0 
6. Dutiable lines tariff average rate (%) 13.7 17.5 18.3 
7. Simple average tariff (%) 6.5 5.4 6.0 
8.  WTO agriculture 22.4 22.5 22.5 
9.  WTO non-agriculture (including petroleum) 3.8 2.5 2.4 
10.  Agriculture, hunting, fore stry and fishing (ISIC 1) 7.4 7.1 7.9 
11.  Mining and quarrying (ISIC 2) 0.7 0.2 0.2 
12.  Manufacturing (ISIC 3) 6.5 5.4 6.0 
13.  First stage of processing 4.8 4.5 5.4 
14.  Semi-processed products 3.2 1.2 0.8 
15.  Fully processed products 8.7 8.3 9.0 
16. Domestic tariff "peaks" (% of all tariff lines)b 1.8 5.7 2.2 
17. International tariff "peaks" (% of all tariff lines)c 6.5 6.4 7.1 
18. Overall standard deviation 25.3 25.7 28.6 
19. Nuisance applied rates (% of tariff lines)d 1.0 0.6 4.0 
20. Bound tariff lines (% of all tariff lines) 99.7 99.5 99.7 
a The tariff is provided at the eight-digit level. Aver ages exclude in-quota rates and lines. Calculations 
include ad valorem  equivalents (AVEs) for non- ad valorem  duties where it was possible to estimate 
them. 
b Domestic tariff peaks are defined as whose exce eding three times the overall average applied rate. 
c International tariff peaks are defined as those exceeding 15%. 
d Nuisance rates are greater than 0% but inferior or equal to 2%. 
Source: WTO Secretariat calculations, based on data provided by the Canadian authorities. 
3.18.  The lower number of tariff lines in HS 2012 was the result of a tariff simplification process 
undertaken by Canada in 2012 as part of an effort to streamline Canadian import processes, and coincided with the introduction of new tariff items for non-commercial courier and postal imports 
valued at Can$500 or less, effective 1 January 2012. The grouping of products into these new 
                                               
13 Department of Finance (2014). 
14 WTO document G/MA/IDB/2/Rev.40, 16 October 2014. WT/TPR/S/314 • Canada 
 
- 52 - 
 
  generic tariff items (tariff codes 9825.10, 9825.20, and 98.2530) responded to the desire to ease 
the duty calculation and administrative processe s of importing goods by Canada-based consumers 
from foreign mail-order and e-commerce retailers. The rules for the application are detailed in Chapter 98 of the 2012 Customs Tariff. The use of these codes is optional.
15 Thousands of 
HS codes were simplified under these three generi c tariff items and tariffs of 5% or less were 
eliminated: 
a. Goods classified under Chapters 1 to 97 which were assessed customs duty under the 
MFN rate within 5 percentage points above or below 20%, are now subject to a generic 
MFN rate of 20%. Goods that fall into this category include bedding, clothing, and footwear. 
b. Goods classified under Chapters 1 to 97 which were assessed customs duty under the 
MFN rate within 5 percentage points above or below 8%, are subject to a generic 
MFN rate of 8%. Goods that fall into this category include automotive parts, beauty products, foodstuffs, jewelry, musical instru ments, sporting equipment, and tableware. 
c. Goods classified under Chapters 1 to 97 which were assessed customs duty under the 
MFN rate within 5 percentage points more or less of 5%, are subject to a generic MFN rate of 0%. Goods that fall into this category include automotive engine 
components and bicycle parts.  
3.19.  In general, the rate of customs duty applie d under this tariff initiative cannot be less than or 
greater than 5 percentage points than the rate pr ovided under the provisions of Chapters 1 - 97 of 
the Customs Tariff, although some exceptions are allowed where the rule cannot apply (i.e. a tariff 
rate of 14% would drop to 8%). The generic classifications parallel existing generic classifications 
under heading 98.26 used for goods imported by travellers. Alcoholic beverages, tobacco products and other goods subjected to additional customs du ty and taxes are not eligible for the new tariff 
initiative, nor are goods that are restricted, controlled or regulated. 
3.20.  The process of tariff simplification adds to previous unilateral liberalization efforts. As a 
result of the 2009 Budget and its implementing legi slation, MFN duty rates were reduced to zero 
on 214 tariff lines relating to machinery and equipment. In the 2010 Budget, the Federal 
Government announced that an additional 1,541 tariff lines relating to manufacturing inputs and machinery and equipment would be set equal to zero: 1,160 of these were reduced to zero in March 2010, and the remaining 381 were fully liberalized as of January 2015. 
 
                                               
15 Chapter 98 of the Customs Tariff is a Special Classi fication Provision used only for non-commercial 
goods; it is a relief provision and it is optional. WT/TPR/S/314 • Canada 
 
- 53 - 
 
  Chart 3.1 Frequency distribution of MFN tariff rates, 2014 
(67.0%)
(8.7%)(13.9%)
(3.1%)(5.1%)
(0.3%)(1.7%)(0.1%) (0.1%)
0102030405060708090100
01,0002,0003,0004,0005,0006,000
Duty free >0 - 5 >5 - 10 >10 - 15 >15 - 20 >20 - 25 >25 Specific duty
with no AVENo rateNumber of tariff linesaPer cent
Cumulative %
Number of lines (% of total)
 
a The total number of lines is 7,251 with 6,968 ad valorem  lines, 283 non- ad valorem  lines, and 
6 empty lines applying to pref erential quota from Peru only. 
Source: WTO Secretariat calculations, based on data provided by the Canadian authorities. 
3.21.  The 2014 applied MFN tariff (including AVEs) has rates ranging from 0 to 532.2%16, with a 
simple average tariff rate estimated at 6% (Table 3.5).17 The average applied tariff for agricultural 
products (WTO definition) stood at 22.5%. 
Table 3.5 Summary analysis of MFN tariff, 2014 
Description MFNa Final 
bounda 
No. of 
lines Average
(%) Range 
(%) Coefficient 
of 
variation Average 
(%) 
Total 7,251 6.0 0 - 532.2 4.8 8.1 
HS 01-24 1,482 19.3 0 - 391.6 3.0 22.3 
HS 25-97 5,769 2.6 0 - 532.2 3.6 5.6 
By WTO category      
WTO Agriculture 1,302 22.5 0 - 532.2 2.9 23.7 
 - Animals and products thereof 178 47.0 0 - 391.6 1.9 52.9 
 - Dairy products 38 238.7 0.8 - 313.5 0.3 237.4 
 - Fruit, vegetables and plants 368 4.3 0 - 19 1.2 4.7 
 - Coffee and tea 31 18.5 0 - 265 3.5 19.6 
 - Cereals and preparations 223 28.2 0 - 388.3 2.3 31.4 
 - Oil seeds, fats and oils and their 
 products 102 6.0 0 - 218 3.8 7.4 
 - Sugars and confectionary 48 4.1 0 - 12.5 0.9 5.4 
 - Beverages, spirits and tobacco 140 5.1 0 - 256 4.3 7.7 
 - Cotton 5 0.0 0 - 0 n.a. 1.3 
 - Other agricultural products n.e.s. 169 9.8 0 - 532.2 5.3 8.2 
WTO Non-agriculture (including 
petroleum) 5,949 2.4 0 - 25 2.0 5.4 
                                               
16 The highest rate of 532.2% is the AVE of the over access commitment duty rate of Can$6.12/kg, 
applicable to dried egg albumin (3202.11.20). Within access commitment rate of duty is 8.5% ( ad valorem ). 
17 Ad valorem  equivalents (AVEs) of non-ad valorem  tariffs have been esti mated using 2013 import 
price data when available. However, it was not possible to estimate the ad valorem  equivalents of 64 tariff 
lines due to the absence of imports. WT/TPR/S/314 • Canada 
 
- 54 - 
 
  Description MFNa Final 
bounda 
No. of 
lines Average
(%) Range 
(%) Coefficient 
of 
variation Average 
(%) 
 - WTO Non-agriculture (excluding 
 petroleum) 5,936 2.4 0 - 25 2.0 5.4 
 - - Fish and fishery products 256 1.2 0 - 11 1.9 1.5 
 - - Minerals and metals 1,040 1.2 0 - 15.5 2.2 2.8 
 - - Chemicals and photographic 
supplies 965 1.0 0 - 15.5 2.3 4.7 
 - - Wood, pulp, paper and furniture 291 1.2 0 - 15.5 2.3 1.9 
 - - Textiles 1,028 2.4 0 - 18 2.1 10.7 
 - - Clothing 260 15.9 0 - 18 0.3 16.8 
 - - Leather, rubber, footwear and 
 travel goods 255 4.6 0 - 20 1.5 7.3 
 - - Non-electric machinery 644 0.6 0 - 9 3.2 3.6 
 - - Electric machinery 403 1.3 0 - 9 2.0 4.7 
 - - Transport equipment 222 5.6 0 - 25 1.2 5.8 
 - - Non-agriculture articles n.e.s. 572 2.9 0 - 18 1.4 4.4 
 - Petroleum 13 1.2 0 - 5 1.8 6.8 
By ISIC sectorb      
Agriculture and fisheries 498 7.9 0 - 292.5 4.3 7.2 
Mining 98 0.2 0 - 12.5 6.5 1.6 
Manufacturing 6,654 6.0 0 - 532.2 4.8 8.3 
By HS section      
 01 Live animals & products 408 39.8 0 - 391.6 2.2 55.0 
 02 Vegetable products 467 5.8 0 - 388.3 3.7 6.0 
 03 Fats & oils 68 8.9 0 - 218 3.0 10.4 
 04 Prepared food etc. 539 16.6 0 - 281.1 3.1 19.6 
 05 Minerals 158 0.4 0 - 12.5 4.8 2.2 
 06 Chemical products 876 2.1 0 - 532.2 10.0 4.9 
 07 Plastics and rubber 302 1.6 0 - 15.5 1.9 6.1 
 08 Hides and skins 98 3.1 0 - 15.5 1.5 5.5 
 09 Wood and articles 133 2.2 0 - 11 1.4 4.0 
 10 Pulp, paper etc. 141 0.0 0 - 0 .. 0.0 
 11 Textile and articles 1,246 5.0 0 - 18 1.5 11.9 
 12 Footwear, headgear 100 9.7 0 - 20 0.8 12.1 
 13 Articles of stone 168 2.1 0 - 15.5 1.5 4.3 
 14 Precious stones, etc. 60 1.7 0 - 8.5 1.8 3.2 
 15 Base metals and products 669 1.3 0 - 11 2.1 2.9 
 16 Machinery 1,056 0.8 0 - 9 2.6 4.0 
 17 Transport equipment 238 5.4 0 - 25 1.2 5.6 
 18 Precision equipment 289 1.7 0 - 14 1.8 3.2 
 19 Arms and ammunition 29 3.8 0 - 7.5 0.7 4.9 
 20 Miscellaneous manufactures 197 4.4 0 - 18 1.1 6.6 
 21 Works of art, etc. 9 1.4 0 - 7 1.9 1.6 
By stage of processing      
First stage of processing 883 5.4 0 - 292.5 5.5 5.3 
Semi-processed products 2,221 0.8 0 - 270 8.7 5.4 
Fully-processed products 4,147 9.0 0 - 532.2 3.9 10.2 
n.a. Not applicable. 
a Bound rates are provided in HS07 classification an d applied rates in HS2012; therefore there may be 
a difference between the number of lines included in the calculation. 
b ISIC (Rev.2) classification, excluding electricity (1 line). 
Source: WTO Secretariat estimates, based on da ta provided by the Canadian authorities. WT/TPR/S/314 • Canada 
 
- 55 - 
 
  3.1.4.2  WTO bindings 
3.22.  Following the Uruguay Round, Canada bound all tariff lines in HS Chapters 1-97, except 
24 tariff lines.18 Transposed to the 2014 tariff schedule, the average bound rate is 8.1% 
(Table 3.5). For one tariff line where the bound rate is specific, the applied MFN rate appears to 
exceed the bound rate once the AVE of the bound rate is calculated (Table 3.6).19 There are also 
five further tariff lines for which applied rates ar e marginally higher than bound rates, due to 
rounding. 
Table 3.6 Tariff lines where applie d rates exceed bound rates, 2014 
HS code MFN description MFN duty MFN 
AVE MFN 
quotaBound duty Bound 
AVE 
A. Apparently above binding (AVE calculation) 
16023991 Other prepared or preserved 
meat, meat offal or blood. - Of 
poultry of heading 01.05: - Other 
- Other: - Of ducks, geese or 
guinea fowls, in cans or glass 
jars 9.5   8% but not 
<7.05¢/kg 
or 
>14.11¢/kg 3.8 
B. Apparently due to rounding  
02071422 (Spent fowl) Livers: Over access 
commitment 238% but not 
less than 
Can$6.45/kg 391.6 O 238.3% but 
not 
<644.7¢/kg 391.4 
02071493 (Spent fowl) Other: Over access 
commitment, boneless 249% but not 
less than Can$6.74/kg 346.9 O 249.0% but 
not <673.5¢/kg 346.7 
04081920 (Hatching for broilers) Over 
access commitment Can$1.52/kg 53.7 O 151.7¢/kg 53.6 
04089920 (Hatching for broilers) Over 
access commitment Can$1.52/kg 47.7 O 151.7¢/kg 47.6 
35021920 Over access commitment Can$1.52/kg 168.9 O 151.7¢/kg 168.6 
O Out-of-quota. 
Source:  WTO Secretariat estimates, based on data provided by the Canadian authorities. 
3.1.4.3  Preferential tariffs 
3.23.  About two-thirds of Canada's MFN lines are duty free. With some exceptions, Canada's FTAs 
generally led to a substantial liberalization of its tariff regime with duty free treatment covering 
above 90% of tariff lines in most cases (Table 3.7). Exceptions to this are the agreements with Australia and New Zealand, where about 68.7% of tariff lines covered are granted duty free treatment. The simple average tariff rate for preferential tariff partners range from 3.1% 
(United States) to 5.7% (Australia and New Zealan d). If the average preferential tariff remains 
relatively high on agricultural products (WTO definition), it is close to zero for non-agricultural products, except in the trade agreements with Australia and New Zealand . 
                                               
18 The unbound lines cover mineral oils  and fuels and electrical energy (12 lines); cruise ships, tankers, 
tugs, and drilling and platform ships (11 lines); and postage stamps. 
19 At the time of the previous Review, MFN rates appeared to exceed bound rates for the following 
products (HS07 codes in brackets): canner pack of turkeys (0207.2512); other egg yolks (0408.1920); other 
eggs (0408.9920); other prepared meals (1602.3214); reconstituted apple juice (2009.7110); and other egg albumin (3502.1920). Source: WTO (2011). WT/TPR/S/314 • Canada 
 
- 56 - 
 
  Table 3.7 Canada's prefer ential tariffs, 2007 and 2014 
  Average tariff (%) 
Preferential regime  Duty free 
tariff 
lines (in 
% of totalTotal  WTO 
agriculture  WTO 
non-agriculture  
Year  2014  2007  2014  2007  2014  2007  2014  
NAFTA         
- United States 98.5 2.6 3.1 17.7 17.6 0.0 0.0 
- Mexico 97.9 2.6 3.2 17.9 17.7 0.0 0.0 
Other reciprocal treatments         
- Chile 98.5 2.6 3.1 17.5 17.4 0.0 0.0 
- Israel 91.6 3.2 3.9 21.3 21.5 0.0 0.0 
- Costa Rica 96.4 2.9 3.3 18.0 17.7 0.3 0.2 
- Australia 68.7 5.2 5.7 22.3 22.3 2.2 2.1 
- New Zealand 68.8 5.2 5.7 22.2 22.3 2.2 2.1 
- Iceland 95.3 3.0 3.7 20.1 20.4 0.0 0.0 
- Norway 92.3 3.2 3.9 21.7 21.7 0.0 0.0 
- Switzerland and Liechtenstein 92.1 3.2 3.9 21.8 21.8 0.0 0.0 
- Peru 97.9 2.7 3.2 17.9 17.8 0.1 0.0 
- Colombia 97.3 n.a. 3.3 n.a. 17.9 n.a. 0.1 
- Jordan 98.5 n.a. 3.2 n.a. 17.7 n.a. 0.0 
- Panama 97.7 n.a. 3.2 n.a. 18.1 n.a. 0.0 
Non-reciprocal treatments         
- GPT 73.7 4.8 5.3 21.7 21.7 1.8 1.7 
- LDCT 98.6 2.6 3.1 17.7 17.6 0.0 0.0 
- Commonwealth Caribbean 
countries 89.1 4.0 4.4 19.0 19.3 1.3 1.2 
MFN average (memorandum 
item) 67.0 5.4 6.0 22. 5 22.5 2.5 2.4 
Source: WTO Secretariat estimates, based on da ta provided by the Canadian authorities. 
3.24.  Between 2011 and 2014, free trade agreemen ts with Colombia, Jordan and Panama came 
into force. Upon entry into force of the FTA with Colombia in April 2011, Canada extended its 
duty-free treatment to an additi onal 28.8% of its tariff lines.20 C o m b i n e d  w i t h  M F N - b a s e d  
liberalization, whereby 67% of lines are duty-free,  97.3% of imports from Colombia benefited from 
duty free treatment in 2011. Most of the remaining tariff elimination is to take place until 2017. 
Upon full implementation of the agreement by Ca nada in 2027, it is expected that only 117 tariff 
lines (mostly supply-managed products) will remain dutiable. 
3.25.  Under the Canada-Jordan FTA, Canada provided duty-free treatment to all imports from 
Jordan, except products that are subject to WTO tariff rate quotas.21 As of 2014, 98.5% of tariff 
lines were subject to a duty-free treatment by Ca nada. Similarly, 97.7% of Canada's tariff lines 
are duty free under the FTA with Panama. 
3.26.  Non-reciprocal tariff preferences are grante d under the General Preferential Tariff (GPT), the 
Commonwealth Caribbean Country Tariff (CARIBCA N), and the Least-Developed Country Tariff 
(LDCT). Canada has completed a review of its GPT regime in 201322, leading to the withdrawal of 
the GPT treatment from 72 trading partners considered as higher income or trade-competitive 
countries.23 Equatorial Guinea and the Maldives, which are respectively classified as high and 
                                               
20 WTO document WT/REG301/1, 26 June 2012. 
21 WTO document WT/REG335/1/Rev.1, 22 April 2014. 
22 General Preferential Tariff Withdrawal Order (2013 GPT Review),  SOR/2013-161. Viewed at: 
http://laws-lois.justice.gc.ca/PDF/SOR-2013-161.pdf. 
23 For the purpose of GPT benefits, hi gher income countries are those that have been classified for two 
consecutive years as high income or upper-middle income economies according to the latest World Bank WT/TPR/S/314 • Canada 
 
- 57 - 
 
  upper-middle income countries by the World Bank, were removed from the LDCT because of their 
graduation from the LDC status.24 Starting in 2015, 104 countries are eligible to the GPT, of which 
48 are eligible to the LDCT. 
3.1.4.4  Tariff remission 
3.27.  Two pieces of legislation provide for the remission of customs duties: the Customs Tariff and 
the Financial Administration Act (FAA). Remissions can also be granted on the basis of administrative circumstances, for instance, when incorrect information has been supplied by a 
CBSA official to a client. Tariff remissions are generally proposed in situations where it is not 
appropriate to provide relief by other means, su ch as statutory tariff amendments or through 
another Order. 
3.28.  Requests for tariff remission are generally  handled on a case-by-case basis. However, a 
sectorial approach has been taken recently in the case of some imported cargo vessels, tankers 
and ferries.
25 Applications based on administrative circumstances are handled by the CBSA's Tariff 
Policy Division while applications based on the provisions of the Customs Tariff or the FAA are to 
be submitted to the Department of Finance. For the fiscal year 2012-13, the total value of tariff 
remissions granted under the FAA increased by 72.8%  to Can$681 million (Chart 3.2). This surge 
reflects remission provided for the repair abroad of  aircraft, aircraft engines and flight simulators.26 
Tariff remissions granted under the Customs Ta riff declined for two consecutive years to 
Can$58 million in 2012-13. 
3.29.  Under the Duty Deferral Program (DDP), the CBSA runs a subset of programmes that offer 
businesses relief from the payment of most import duties  and taxes on goods that are ultimately 
exported. Canada's DDP includes: the Duties Relief Program; the Duty Drawback Program; and the 
Customs Bonded Warehouse Program. Canada's Duties Relief Program covers a wide range of processing functions, including full-fledged manufacturing. The Duty Drawback Program is 
restricted to products re-exported either in the same state or after a limited manufacturing 
process. Through the Customs Bonded Warehouse Program, importers may qualify for a complete 
deferral of customs, anti-dumping and countervailin g duties and excise duties and taxes, including 
the goods and services tax and the harmonized sales tax. While the goods are in the warehouse, 
they may undergo certain minor manipulations such as marking, labelling, testing, inspection, packaging, display, dilution, normal servicing and maintenance, grading, shorting, trimming, 
slitting or cutting and repackaging.
27 Non-residents can apply to operate a bonded warehouse in 
Canada. Under these programmes, the export operation generally has to take place within four 
years from the date the goods enter Canada. 
 
                                                                                                                                               
income classifications. Trade-competitive countries are th ose that account for 1% or more of world exports for 
two consecutive years according to the latest WTO statistics.  
24 Least Developed Country Tariff Withdrawal Order (2013 GPT Review),  SOR/2013-162. Viewed at: 
http://laws-lois.justice.gc.ca/PDF/SOR-2013-162.pdf. 
25 Prior to 2010, duty remission requests on imported vessels were considered on a case-by-case basis. 
In 2010, the Federal Government issued the Ferry-Boats, Tankers and Cargo Vessels Remission Order , 
systematically granting remission of the 25% import duties  to any cargo vessel, tanker, and ferry of a length of 
129 meters or more. 
26 Repair Abroad of Canadian Civil Aircraft, Canadian  Aircraft Engines and Flig ht Simulators Remission 
Order.  SI/82-131. Viewed at: http://laws-lois.justice .gc.ca/eng/regulations/SI-82-131/FullText.html. 
27 CBSA online information. Viewed at: http:// www.cbsa-asfc.gc.ca/import/ddr-red/tab8-eng.html. WT/TPR/S/314 • Canada 
 
- 58 - 
 
  Chart 3.2 Remission of taxes and duties, 2004-13 
(Can$ million) 
201450 436
352499
405 406 394681
232132 158
13532
89145
9158
0100200300400500600700800
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13under the Financial Administration Act (Section 23) under the Customs Tariff (Section 115)
 
Source: Public Accounts of Canada  online information. Viewed at: http://tpsgc-pwgsc.gc.ca/recgen/cpc-
pac/index-eng.html. 
3.1.5  Other charges affecting imports 
3.1.5.1  The GST/HST and provincial sales taxes 
3.30.  The Goods and Services Tax (GST) is Canada's largest indirect tax by revenue. It generated 
nearly Can$31 billion during the 2013/14 fiscal year, representing about two-thirds of indirect tax 
revenue and 14.1% of total tax revenues.28 The GST is a value-added tax levied on most goods 
and services at a rate of 5%.29 For imported goods, the tax is calculated on the same basis as 
imports duties, and is generally levied at the time of importation. GST relief is granted for some 
imported goods such as prescription drugs, me dical and assistive devices, basic groceries, 
agriculture, and fishing goods.30 
3.31.  Some provinces and territories levy a sales tax in addition to the GST, at rates that vary 
between 5% and 10% (Chart 3.3). Some provinces have consolidated their sales tax with the GST 
into a Harmonized Sales Tax (HST) that generally shares the same tax base as the GST.31 The 
resulting HST comprises the 5% GST and a prov incial component. Most imported commercial 
goods are relieved of the provincial component of the HST. Different exemption regimes apply 
under each of the provincial sales tax regimes. There is no provincial sales tax in Alberta, the 
Northwest Territories, Nunavut, and Yukon. 
                                               
28 Department of Finance (2014), Fiscal Reference Tables, October. Viewed at: http://www.fin.gc.ca/frt-
trf/2014/frt-trf-14-eng.asp. 
29 The GST also applies to supplies of real property and intangible property such as trademarks, rights 
to use a patent, and Internet downloads.  
30 A detailed list of exempted goods is provided under the Schedules VI and VII of the Excise Tax Act . 
31 These are: New Brunswick, Newfoundland and Labr ador, Nova Scotia, Ontario, and Prince Edward 
Island (since April 2013). British Columbia adopted the HST in 2010, but returned to the GST in April 2013. WT/TPR/S/314 • Canada 
 
- 59 - 
 
  Chart 3.3 GST/HST and provincial sales tax rates, December 2014 
8%8%10%8%9%
7%8%9.975%5%
0% 2% 4% 6% 8% 10% 12% 14% 16%AlbertaBritish ColumbiaManitobaNew BrunswickNewfoundland and LabradorNorthwest TerritoriesNova ScotiaNunavutOntarioPrince Edward IslandQuebecSaskatchewanYukon
GST Provincial component (if HST) Provincial Sales Tax
 
Source: Canada Revenue Agency online  information. Viewed at: http://w ww.cra-arc.gc.ca/tx/bsnss/tpcs/gst-
tps/rts-eng.html. 
3.32.  Some provinces have increased their sales taxes over the past three years. In Quebec, 
the tax was raised by one percentage point in 2012 to 9.5%, and then to 9.975% effective 
January 2013. Manitoba also increased its sales taxes by 1 percentage point to 8% as of 1
st July 2013. 
3.33.  GST/HST exemption is available to some  businesses, under a number of programmes such 
as the Export Distribution Centre Program (EDCP) or the Exporters of Processing Services Program 
(EOPS). Both programmes are provided for under the Excise Tax Act , and administered by the 
Canada Revenue Agency (CRA).  
3.34.  Under the EDCP, authorized businesses may use their authorization number to obtain relief 
from the GST/HST on their imports and their do mestic purchases of goods (worth Can$1,000 or 
more), provided that they process them to add "limited value" and export them. The processing 
should not substantially alter the goods; it may encompass activities such as distributing, 
disassembling, reassembling, displaying, inspecting, labelling, packing, storing, testing, cleaning, 
diluting, maintaining and servicing, preserving, sorting, grading, trimming, filing, slitting or 
cutting. The value added through these services should generally not exceed 20% of the final 
value of the goods. The programme is restricted to businesses operating substantially in commercial activities that derive at least 90% of their revenues from export sales. 
3.35.  Under the EOPS programme authorized operators may use their EOPS authorization number 
to obtain relief from the payment of the GST/ HST on non-residents' goods imported for the 
purpose of supplying a range of services to a fore ign customer. Eligible services include storage, 
distribution, processing, manufacturing or production. The goods must remain the property of a 
non-resident, and be exported within four years of their entry into Canada. Contrary to the EDCP, 
the EOPS programme does not impose any requirement in terms of export sales or value-added. Applications for both programmes are reviewed by the CRA. Authorizations must be renewed every 
three years. 
3.1.5.2  Excise taxes and duties 3.36.  The Excise Act, 2001 provides for the impo sition of an excise duty on domestic and 
imported spirits, wine, beer, and tobacco products (Table 3.8). Reduced rates (or exemptions) WT/TPR/S/314 • Canada 
 
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  may apply to beer made by domestic brewers, and wine wholly composed of Canadian-grown 
agricultural products. Part III of the Excise Tax Act imposes an excise tax on other products, including automobile air conditioners (Can$100 per unit); fuel-inefficient passenger vehicles (from Can$1,000 to Can$4,000 depending on the fuel consumption rates); and petroleum products (from 
Can$0.04 to Can$0.11 per litre).
32 
Table 3.8 Excise duty rates, December 2014 
Product Unit Rate (Can$) Effective 
Spirits 
- containing more than 7% of absolute ethyl 
alcohol by volume Per litre of absolute ethyl 
alcohol 11.696 01-07-2006 
- containing not more than 7% of absolute 
ethyl alcohol by volume Per litre of spirits 0.295 01-07-2006 
- imported by a licensed user Per litre of absolute ethyl 
alcohol 0.12a  
Beerb 
- more than 0.5% but not more than 1.2% Per hectolitre 2.591 01-01-1991
- more than 1.2% but not more than 2.5% Per hectolitre  15.61 01-07-2006
- more than 2.5%  Per hectolitre  31.22 01-07-2006
Wineb,c 
- not more than 1.2% Per litre 0.0205 01-01-1991 
- more than 1.2% but not more than 7% Per litre 0.295 01-07-2006 
- more than 7% Per litre 0.62 01-07-2006 
Tobaccod 
- cigarettes Per five 0.52575 12-02-2014 
a Special duty rate. 
b Reduced rates may apply for domestic products. 
c Excise duty is exempt for Canadian wine made from 100% Canadian-grown agricultural products. d Cigars, either dome stically manufactured or imported are subj ect to an additional duty of 82% of 
their sales price (domestic goods) or the duty paid value (imports).
33 
Source: Excise Duty Memorandum: Rates of Excise  Duty, September 2014. Viewed at: http://www.cra-
arc.gc.ca/E/pub/em/edm 1-5-1/edm1-5-1-e.pdf. 
3.37.  Since April 2011, a new tobacco stamping regime is in place, replacing the tear-tape or 
paper stamps. Unstamped tobacco (e.g., imports for duty free shops, traveler's tobacco) is subject 
to a special duty at the rate of Can$0.10515 pe r cigarette or stick of tobacco, or Can$131.4376 
per kilogram for other tobacco products. Special duti es also apply to imported spirits destined to a 
licensed user at a rate of Can$0.12 per litre of absolute ethyl alcohol contained in the spirits. 
3.1.5.3  Other provincial taxes 3.38.  Some provinces levy additional taxes on products such as tobacco, fuel and alcoholic 
beverages (Table 3.9). All these duties are consumption taxes and are generally applied equally to 
imports and domestic production, with the exception of reduced rates for certain domestic products in select provinces. With respect to the application of fuel taxes, various commercial 
operators benefit from fuel tax exemptions or re bates, including manufacturers, miners, farmers, 
fishermen, and persons involved in forestry. 
                                               
32 Canada Revenue Agency, online information. View ed at: http://www.cra-arc.gc.ca/E/pub/et/currate/ 
currate-e.pdf. 
33 The duty rate per cigar is the greater of Can$0.08226 or 82% of the sale or duty paid value. 
According to the authorities, the 82% rate is likely to be the greater in practice.  WT/TPR/S/314 • Canada 
 
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  Table 3.9 Overview of some selected provin cial taxes and mark ups, December 2014 
(Can$) 
 Cigarette 
(Can$/ 
unit) Cigars 
(rate) Other 
tobacco 
(Can$/ 
gram) Fuel 
tax Carbon 
tax Spirits Wine Sparkling 
wine Beer 
Alberta 0.20 103% 0.20-0.30 0.09 0.09 15¢/oz 10¢/oz 15¢/oz 1¢/oz
British 
Columbia 0.24 ( ↑) 90.5% 
(↑) 0.24 ( ↑) 0.21 0.23 150%, of 
value for 
GST; 
mark up: 
$13.19/l to 
$40.00/l 85% of 
value for 
GST; 
mark up: 
$2.44/l to 
$17/l  85% of 
value for 
GST; 
mark up: 
$2.44/l to 
$17/l  55% of 
value 
for GST, 
min. 
mark up 
$1.13/l 
Manitoba 0.29 ( ↑) 75% 0.28 ( ↑) 0.14 
(↑) 0.14 ( ↑) 124% of 
value for 
GST and 
$1.12/l  66% of 
value for 
GST and 
$1.12/l 72% of 
value for 
GST and 
$1.12/l 50¢/l
New 
Brunswick 0.19 ( ↑) 75% 
(↑) 0.19 ( ↑) 0.14 
(↑) 0.19 ( ↑)137% of 
value for 
HST 70% of 
value for 
HST 70% of 
value for 
HST 82% of 
value 
for HST 
Newfound-
land 0.24 ( ↑) 125% 0.38 ( ↑) 0.17 0.17 15¢/oz 10¢/oz 15¢/oz 1¢/oz
Nova 
Scotia 0.24 ( ↑) 56% 0.15-0.22 
(↑) 0.16 0.15 15¢/oz 10¢/oz 15¢/oz 1¢/oz
Ontario 0.14 ( ↑) 56.6% 0.14 ( ↑) 0.15-
0.18 0.14 59.9% of 
value for 
HST 39.6% of 
value for 
HST 39.6% of 
value for 
HST 67.6¢/l
Prince 
Edward 
Island 0.23 ( ↑) 71.6% 0.18 ( ↑) 0.13 0.20 15¢/oz 10¢/oz 15¢/oz 1¢/oz
Quebec 0.15 ( ↑) 80% 0.15-0.23 
(↑) 0.19a 
(↑) 0.20a (↑) 124% of 
value for GST and $1.40/l 66% of 
value for GST and $1.40/l 72% of 
value for GST and  $1.40/l 63¢/l
Note: Amounts have been rounded to the nearest cent. Ta xes on spirits are in excess of the provincial duty 
free limit. In the Northwest Territo ries and Nunavut, all liquor import ations larger than the duty-free 
entitlement will be referred to territorial authorities. 
.. Not available. 
a Regular rates. The actual rate depend s on the type of fuel and the region. 
↑ Denotes an increase in the tax rate between 2011 and 2014. 
Source: Various Canadian websites.  
3.39.  The provinces of Quebec and Prince Edward Is land also levy a specific duty on new tyres. In 
Quebec, the tax rate of Can$3 per tyre has remain ed unchanged since the previous review. Prince 
Edward Island levies the environment tax at th e rate of Can$4 per new tyre. However, since 
April 2012, the tax rate on tyres with a rim size greater than 43.18 centimetres (17 inches) has 
been raised to Can$11.25 per tyre.34  
3.40.  Various ad-valorem  and flat-rate  mark-ups/levies apply at the provincial level to 
non-commercial imports of tobacco products and intoxicating liquors.35 
3.1.6  Import prohibitions, restrictions, and licensing 
3.41.  Import prohibitions in Canada are imposed on: obscene material; hate propaganda and 
materials of a treasonable or seditious character36; base or counterfeit coins; prison labor goods; 
certain copyrighted works; certain used or second-hand motor vehicles and aircraft; certain used 
and second-hand mattresses; white phosphorus matches; and, certain endangered species or those that could pose a threat to the environment. The CBSA's D9 Memoranda series provide 
                                               
34 Environment tax notice, revised April 2012. Viewed at: 
http://www.gov.pe.ca/photos/original/pt_etn101.pdf.  
35 Memorandum D2-3-6 Non-Commercial Provincial Tax Collection Programs. 
36 These include books, printed paper, drawings, pain tings, prints, photographs or representations of 
any kind that constitute hate propag anda or are of a treasonable or seditious character within the meaning of 
the Canadian criminal code. WT/TPR/S/314 • Canada 
 
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  further clarifications on these measures.37 The system has remained broadly the same since the 
previous TPR. 
3.42.  Canada regularly notifies its import licensing regime to the WTO. Import licences are in 
place for various reasons, including the administra tion of tariff quotas (Section 4.1.2), trade 
remedies, or international commitments (Table 3.10). Import licences are also used on grounds of 
public interest or for monitoring purposes. Th e regime has remained largely unchanged since 
2011. Imports controls are prescribed for a number of products under various legislative 
instruments. The Export and Import Permits Act  provides for the establishment by regulation of a 
list, called the Import Control List  (ICL), of goods that are subject to import controls.  
Table 3.10 Main import restrictions  and licensing requirements, 2014 
Product Main legal basis/Rationale 
Food of animal and plant origin Food and Drugs Act and other statutes/to ensure  that the imported food 
meets Canadian standards for safety, quality, and labelling 
Regulated animals, animal 
products and by-products, 
germplasm Health of Animals Act/to protect against the introduction and spread of 
diseases in Canada 
Plant pests, plants and plant products Plant Protection Act/to protect against the introduction and spread of 
pests injurious to plants in Canada 
Cheese Canadian Agricultural Products Ac t/to ensure that imported cheese 
meets Canadian standards for safety, quality, composition, packaging, 
and labelling 
Fresh fruit and vegetables Canada Agricultural Prod ucts Act/to ensu re that imported  products meet 
Canadian standards for safety, qu ality, packaging, and labelling 
Fish and fish products (for 
human consumption) Fish Inspection Act/to provide re asonable assurance that imported 
products meet Canadian standards for safety, qualit y, composition, 
packaging, and labelling 
Unregistered pest-control 
products for the purpose of 
manufacturing, own use or research Pest Control Products Act/to ensure that the importation of the 
unregistered pest-control product is us ed for the specific purpose and to 
ensure that it does not pose any unacceptable health or environmental 
risks. 
Controlled substances, 
industrial hemp and precursor 
chemicals (Schedules I to VI to 
the Controlled Drugs and 
Substances Act). Controlled Drugs and Substances Act (UN Drug Control Conventions) 
Explosives Explosives Act 
Chemicals controlled under the 
Chemical Weapons 
Convention, Munitions Items 
(weapons, ammunition and 
war supplies) Export and Import Permits Act/to restrict their im portation and/or 
implement an intergovernmental arrangement or commitment 
Prescribed nuclear equipment 
and information, radiation devices, and nuclear substances Nuclear Safety and Control Act/to ensure that products subject to 
regulatory control are destined to authorized persons or organizations 
and that their use will not pose undue risk to health, safety, security, and the environment (implements international obligations). 
Carbon steel products and 
specialty steel products Export and Import Permits Act/to mo nitor the volume and the origin of 
carbon and specialty steel products 
                                               
37 CBSA, Memoranda Series D9, Prohibited Importations. Viewed at: http://www.cbsa-
asfc.gc.ca/publications/dm-md/d9-eng.html. WT/TPR/S/314 • Canada 
 
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  Product Main legal basis/Rationale 
Species regulated under the 
Convention on International Trade in Endangered Species of Wild Fauna and Flora Wild Animal and Plant Protection an d Regulation of International and 
Interprovincial Trade Act (WAPPRIITA)/to allow the importation of certain species and their by-products in inte rnationally agreed circumstances. 
For species in Schedule II, to ensure  that there are sufficient safeguards 
and security to prevent escapes to the wild. 
Health products  Food and Drugs Act/to ensure that  imported natural health products 
meet Canadian requirements fo r safety, efficacy, and quality 
Rough diamonds Export and Import of Rough Diamond Act 
Textile and clothing products Export and Import Permits Act/to im plement FTAs with the U.S., Mexico, 
Chile, Costa Rica and Honduras. 
Natural gas National Energy Board Act 
Firearms, prohibited weapons, 
prohibited devices Customs Act, Firearms Act, and EIPA 
Hazardous waste and 
hazardous recyclable material Canadian Environmental Protection Act/to implement international and 
bilateral obligations  
Ozone-depleting substances Canadian Environmental Protection  Act/to implement international 
obligations  
Source: WTO documents G/LIC/N/3/CAN/12, 4 April 2014. 
3.43.  Canada maintains some permit requirements with regards to textiles and clothing products 
that are eligible for tariff preferences. This applies to products imported under the NAFTA and 
under the FTAs with Costa Rica, Chile, and Hondur as. Permits are not required for imports that do 
not seek any of these tariff preferences. Permits are granted on a first-come-first-served basis.  
3.44.  Fees for import permits depend on the na ture of goods, and increase with the value of 
goods. Permits under the EIPA are issued by the DFATD. Fees are provided in the Export and 
Import Permits and Certificates Fees Order.38 Permits to import explosives are issued by Natural 
Resources Canada's Explosives Regulatory Divisi on. There is a fee of Can$160 for a single use 
permit or an annual permit. Holders of annual permits face an additional fee of Can$20 for each 
tonne of Net Explosive Quantity imported, with a maximum fee of Can$1,300. For controlled drugs 
and substances, there is no fee associated with the application for an import or export permit. 
However, licensed dealers must pay an annual fee to obtain a licence from Health Canada. 
3.1.7  Anti-dumping, counterva iling, and safeguard measures 
3.1.7.1  Anti-dumping and countervailing measures 3.45.  The Special Import Measures Act
39 and related regulations set out the rules and procedures 
for the imposition of trade remedies in Canada. There have been no major changes to the 
legislation during the period under review.40 
3.46.  Although the CBSA can self-initiate anti-dumping and countervailing investigations, it 
generally initiates those following complaints from the domestic industry. The process is 
two thronged, and conducted by the CBSA and the CITT. Upon a complaint, the CBSA determines 
whether there is sufficient evidence of injury for initiation purposes. The CITT initiates its preliminary injury inquiry after the CBSA's initiation of investigation. The preliminary injury inquiry 
investigates into whether the dumping and/or subsidizing have caused or threatened to cause 
material injury to a domestic industry, or have caused material retardation of the establishment of a domestic industry. In the preliminary inquiry phase, the CITT determines whether the evidence 
                                               
38 Export and Import Permits and Certificates Fees Order (SOR/95-245). Viewed at: http://laws-
lois.justice.gc.ca/eng/regulations/SOR-95-245/page-1.html. 
39 Import Measures Act (R.S.C., 1985, c. S-15), latest amendment in 2010.  
40 The Special Import Measures Regulations has been  amended in 2013 to remove the expiration date 
on the status of China and Viet Nam as "prescribed countries". WT/TPR/S/314 • Canada 
 
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  discloses a reasonable indication of injury or retardation, or threat of injury. The CITT makes its 
preliminary injury determination 60 days after initiation of the preliminary injury inquiry. If the CITT finds that there is no reasonable indication, it issues a motivated decision to that effect, and the proceedings, including the CBSA's investigation,  are terminated. If the CITT finds that there is 
a reasonable indication of injury, retardation, or threat of injury, it issues a motivated decision to 
that effect. The CBSA then determines the dumping margin or the amount of subsidy. The CITT initiates its final injury inquiry the day after the CBSA's positive preliminary dumping and/or 
subsidizing determination. Within 90 days of the commencement of the CITT's final injury inquiry, 
the CBSA must complete its dumping and/or subsidizing investigation and make its final determination. If it finds no dumping and no subsidizing, the proceedings are terminated, including the CITT's injury inquiry. Otherwise, the CITT's final injury inquiry continues. Provisional duties 
may be levied in the meantime and until the issuance of a final injury determination by the CITT. 
They are refunded if the CITT determines that th ere was no injury (or threat of injury) to the 
domestic industry.  
3.47.  The CITT is to make its final determination of injury within 120 days of the initiation of the 
final injury inquiry. Definitive anti-dumping or  countervailing duties are imposed only after the 
CITT has issued an injury or threat of injury finding. Under the SIMA, a finding of injury or threat 
of injury or an order continuing a finding of inju ry or threat of injury and the associated special 
protection in the form of anti-dumping or counterva iling duties expire five years from the date of 
the finding or the order, unless an expiry review ha s been initiated. In practice, expiry reviews are 
completed before the expiry date of the finding or order duty.  
3.48.  Between 2011 and 2014, the CBSA initiated 43 anti-dumping (AD) investigations, with a 
peak of 17 investigations in 2013 (Chart 3.4). In 2014, 13 new investigations were initiated. In general, there has been a steep increase in the number of AD investigations in 2012-14, as 
compared with the previous three years. The number of measures adopted was respectively 10 in 
2012, 7 in 2013, and 6 in 2014. CBSA initiated 21 countervailing duties (CVD) investigations between 2011 and 2014 (Chart 3.5)  WT/TPR/S/314 • Canada 
 
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  Chart 3.4 Anti-dumping investigations initiated by region, 2011-14 
(Number of investigations) 
289103
14
3
21
05101520
2011 2012 2013 2014Asia Europe Americas Middle East
 
Source: WTO Secretariat, based on informatio n provided by the Canadian authorities. 
Chart 3.5 Countervailing duty investigat ions initiated by region, 2011-14 
(Number of investigations) 
24
393
2
051015
2011 2012 2013 2014Asia Europe Middle East
 
Source: WTO Secretariat, based on informatio n provided by the Canadian authorities. 
3.49.  Most Canadian investigations in the peri od under review involve several countries' exports 
of the same products. Frequently, they are accompanied by countervailing measure investigations on the same products and countries. Of the 43 AD investigations initiated over the period 2011-14, 
40 led to the imposition of preliminary duties  and 24 to the imposition of final duties. 
Investigations were terminated at various stages for five of these AD investigations: Potassium WT/TPR/S/314 • Canada 
 
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  Silicate Solids from Pakistan case (initiated in 2012, terminated by CBSA at preliminary 
determination); Carbon Steel Welded Pipe from Tu rkey (initiated in 2012, terminated by CBSA at 
final determination); Unitized Wall Modules from China (initiated in 2012, terminated by CITT at preliminary injury inquiry); Galvanized steel wire from China, Israel, and Spain (initiated in 2013, 
terminated by CITT at final inquiry); and Certai n hot-rolled carbon steel plate and high-strength 
low alloy steel plate from Chinese Taipei (initiated in 2013, terminated by CBSA at final determination). There were also some terminations with respect to CVD investigations.  
3.50.  In 2014, AD and CVD investigations were initiated on three products: Certain Concrete 
Reinforcing Bar; Certain Oil Country Tubular Goods; and Certain Photovoltaic Modules and Laminates. The first of these grouped investigations was initiated by the CBSA in June 2014, for products originating in or exported from China, the Republic of Korea, and Turkey.
41 The second 
group of investigations was initiated in July 2014, with respect to the alleged injurious dumping of 
certain oil country tubular goods originating in or exported from Chinese Taipei, India, Indonesia, the Philippines, the Republic of Korea, Thailand , Turkey, Ukraine and Viet Nam, and the alleged 
injurious subsidizing of certain oil country tubular goods originating in or exported from India, 
Indonesia, the Philippines, the Republic of Korea, Thailand, Turkey, Ukraine and Viet Nam.
42 The 
third investigation was initiated in December 2014 with respect to the alleged injurious dumping 
and subsidizing of certain photovoltaic modules and laminates originating in or exported from 
China.43 As of 31 December 2014, these three investigations were underway. 
3.51.  As at December 2014, there were 53 definitive antidumping measures in place. Some 
60% of the measures were applied on steel prod ucts; another 20% were on other metal products; 
around 10% of the measures were on agricultural products, and the remaining on miscellaneous 
manufactured products.44 The measures were applied on 23 WTO Members: Brazil (3); Bulgaria, 
China (16), Czech Republic, Denmark (2), Germany (1 ), Greece, India (2), In donesia, Italy, Japan, 
Republic of Korea (6), Mexico, the Netherlands (2 ), Oman, Romania, Chinese Taipei (3), Thailand, 
Turkey, Ukraine (2), United Arab Emirates, United  Kingdom, and United States (3). The average 
duration of the AD measures in place in December 2014 was seven years. The longest lasting 
measure, on potatoes from the United States, has been in place for over 30 years (since 
mid-1984).  
3.52.  Also as at December 2014, there were 17 CVD measures in place: 14 of them on steel and 
metal products from China, one on imports of refined sugar from the EU, and two on steel 
products from India.45 The longest lasting CVD measure is applied on refined sugar from the EU: it 
has been in place since 1995. The average length of CVD measures as at end 2014 was of 5 years and 8 months. 
3.53.  The CITT is required by legislation to issue a notice of expiry of a finding or an order at least 
10 months prior to its expiry. It receives submissions and decide whether an expiry review is warranted. If the CITT finds that an expiry review is not warranted, it issues a decision to that 
effect with reasons for its decision, and the finding or order expires five years from the date it was 
issued. If the CITT finds that an expiry review is warranted, it issues a notice of expiry review. Upon receipt of a notice of expiry review, th e CBSA commences an investigation to determine 
                                               
41 SIMA - Final Determinations Respecting Certain Concrete Reinforcing Bar, 10 December 2014. Viewed 
at: http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/ad1403/ad1403-i14-nf-eng.html. 
42 The goods in question are classified under the tari ff items related to tubes, pipes and hollow profiles, 
of iron or steel (7304 and 7306). Viewed at: CBSA Trade and Anti-Dumping Programs Directorate, Notice of 
Initiation of Investigations - Certain Oil Country Tubular Goods, 21 July 2014. Viewed at: http://www.cbsa-
asfc.gc.ca/sima-lmsi/i-e/ad1404/ad1404-i14-ni-eng.html. 
43 The goods in question are classified under HS heading 8541.40.00.22. See: CBSA Trade and 
Anti-Dumping Programs Directorate, Notice of Initiation  of Investigations - Certain photovoltaic modules and 
laminates, 5 December 2014. Viewed at: http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/ad1405/ad1405-i14-ni-eng.html. 
44 The products subject to AD duties were: certain ho t rolled steel sheet (5); certain copper tube (5); 
certain steel plate (7); certain hot rolled steel plate (4); certain steel fasteners (2); certain copper pipe fittings (3); certain seamless steel casing; certain carbon steel welded pipe (7); certain thermoelectric coolers and warmers; certain aluminium extrusions; certain oil coun try tubular goods; certain steel grating; certain pup 
joints; certain stainless steel sinks; certain steel piling pipe; certain unitized wall modules; certain silicon metal; refined sugar (5); hollow struct ural sections (2); certain liquid di electric transformers; greenhouse bell 
peppers; whole potatoes. WTO document G/ADP/N/259/CAN, 22 August 2014, and CBSA online information. 
Viewed at: http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/menu-eng.html. 
45 WTO document G/SCM/N/274/CAN, 29 August 2014. WT/TPR/S/314 • Canada 
 
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  whether the expiry of the finding or order is likely to result in the continuation or resumption of 
dumping and/or subsidizing. If the CBSA determines that the expiry of the finding or order is likely to result in the continuation or resumption of dumping and/or subsidizing, the CITT then determines whether the expiry of the finding or order is likely to result in injury to the domestic 
industry or retardation of the establishment of a domestic industry. The expiry review, which is 
usually completed in 250 days, involves two distinct steps: the CBSA's investigation which is conducted in the first 120 days; and the CITT's ex piry review, which is conducted in the final 
130 days. This second step is contingent on CBSA finding that the removal of the measure is likely 
to lead to the continuation or resumption of dumping or subsidizing. 
3.54.  During the 2011-14 period, there were 12 expiry (sunset) review initiations: 1 in 2011, 4 in 
each 2012 and 2013, and 3 in 2014. In 2014 the CITT initiated expiry review investigations in 
respect of fasteners (dumping from China and Ch inese Taipei and subsidizing from China), plate 
(dumping from Ukraine) and oil-country tubular goods (dumping from China and subsidizing from China). In the first two months of 2015, three expiry investigations were initiated on: 
a. Refined sugar: dumping (United States, Denmark, Germany, Netherlands, 
United Kingdom) and countervailing (European Union);  
b. Greenhouse bell peppers: dumping (Netherlands); and,  
c. Whole potatoes: dumping (United States).  
3.55.  As at end-2014, 10 of the reviews had been concluded and in all cases the AD duties were 
continued, albeit in some cases the measures were rescinded in respect of those countries where the CITT found no likelihood of injury, or the CBSA found no likelihood of continuation of 
dumping/subsidizing. Six of these reviews involved also CVDs; in all six cases they were 
continued. In the two reviews initiated in 2014 where the CITT pronouncement had not yet been 
made, there was a CBSA finding that the removal of the measure was likely to result in the 
continuation or resumption of dumping.
46 During 2011-14, two AD measures were allowed to 
expire without a review. 
3.56.  Also during 2011-14, there were 10 inte rim review requests to modify the results of 
investigations. In all but one case (except the one initiated in 2014, which was still pending when 
drafting this report), the findings were upheld or the cases rejected as not needing a review.47 In 
one case, the CITT rescinded its order.  
3.57.  Importers can contest the CBSA's duty assessment determinations and request a 
re-determination. The SIMA Act allows 90 days following a CBSA officer's decision or a designated 
officer's decision for an importer to request a re-determination. A request may be made only when all duties owing on the goods have been paid. Requests for re-determinations of anti-dumping 
duties can be made on three grounds: a) normal value of the imported goods; b) export price of 
the imported goods; c) whether the imported goods are goods of the same description as goods to which the order or finding applies. Memorandum D14-1-3 contains the detailed procedures to 
conduct the process of re-determination. If a re-determination results in a demand for additional 
duty, the amount of additional duty must be paid  by the importer in Canada within 30 days after 
the day the re-determination was made. Failure to pay the additional duty within this deadline will result in the payment, in addition to the amount, of interest for the period beginning on the first 
day after the day the person became liable to pay the amount and ending on the day the amount 
has been paid in full. On the other hand, if a re-determination results in a refund, the CBSA returns the excess duty paid. The refund will include, in addition to the excess amount, interest at 
the prescribed rate for the period beginning on the first day after the day the amount was paid and 
ending on the day the decision. 
3.58.  Anti-dumping measures are prohibited under Canada's FTA with Chile. 
                                               
46 CBSA online information. Viewed at: http://www .cbsa-asfc.gc.ca/sima-lm si/er-rre/me nu-eng.html. 
47 CITT online information. Viewed at: http:// www.citt.gc.ca/en/dumping-and-subsidizing/interim-
reviews-section-7601. WT/TPR/S/314 • Canada 
 
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  3.1.7.2  Safeguards 
3.59.  There have been no changes to Canada's legislation on safeguards during the review period. 
The CITT may conduct global safeguard inquiries, exclusion inquiries, mid-term reviews and extension inquiries pursuant to the CITT Act, the CITT Regulations, and the CITT Rules. The 
Government may apply safeguard measures in the form of an import surtax pursuant to the 
Customs Tariff or in the form of a restriction (import quota or tariff-rate quota) pursuant to the Export and Import Permits Act. Safeguard inquiries may be initiated by the CITT following a 
complaint from a domestic business, or at the request of the Governor in Council. The CITT then 
conducts a safeguard inquiry to determine if increased imports of goods into Canada are causing or are threatening to cause serious injury to domestic producers of like or directly competitive goods. The CITT has 180 days to conduct a standard safeguard inquiry. However, that statutory 
deadline can be extended to 270 days in complex cases where the scope of the safeguard inquiry 
is much larger than usual. At the end of this period, the CITT submits a report to the Government setting out its determination. The Federal Governme nt retains the ultimate power to make the final 
decision on the application of a safeguard measure. 
3.60.  There is no statutory deadline for the application of safeguard measures in Canadian 
legislation. However, under the WTO Agreement on Safeguards, global safeguard measures may 
be applied for an initial period of up to four years, and are to be progressively liberalized during 
their period of application. They can be extend ed, if the CITT determines that they are still 
necessary to remedy serious injury or threat ther eof, and that there is evidence that domestic 
producers are adjusting to the import competition. In line with WTO rules, their maximum period 
of application is eight years. 
3.61.  In a global safeguard inquiry, if the CITT determines that increased imports are causing or 
are threatening to cause serious injury, it must also determine if imports from a FTA partner are 
substantial and contributing to the serious injury. A global safeguard measure will apply to goods 
imported from a FTA only if the Government is  satisfied that the quantity of those goods 
represents a substantial share of total imports of goods of the same kind
48, and the quantity of 
these goods contributes importantly to serious injury (Customs Tariff Act, Section 59). In 
exceptional circumstances, imports from NAFTA countries may be considered jointly for the purpose of determining whether they contribute to serious injury.
49 
3.62.  The CITT Act also contains provisions relating to bilateral safeguard inquiries, that is, 
safeguard inquiries under various bilateral free trade agreements to which Canada is a signatory. 
In a bilateral safeguard inquiry, the CITT must determine whether, as a result of the tariff reductions provided for in the bilateral FTA, imports from the partners are in such increased 
quantities and under such conditions as to cause or threaten to cause serious injury to domestic 
producers of like or directly competitive goods. In a bilateral safeguard inquiry, safeguard measures, if applied, are limited to the temporary suspension of tariff reductions or restoration of 
the MFN tariff rates. Measures may be applied for up  to three years, followed, in some cases, by a 
one-year phasing-out period. Any person directly affected by the CITT's report in a safeguard inquiry may seek judicial review in the Federal Court. For measures that are to remain in effect for more than three years, the CITT is required to conduct a mid-term review to determine if they 
should remain in force, be revoked or amended. The CITT may also conduct extension inquiries for 
measures that are due to expire.  
3.63.  The CITT will not consider initiating a safeguard inquiry if it is of the opinion that the injury 
to domestic producers is caused by the dumping an d/or subsidizing of imports. In such a case, the 
CITT suspends its proceedings and refers the matter to the CBSA.  
3.64.  During the period under review, Canada did not apply any safeguard measure, nor did it 
start any investigation. Canada's latest safeguard inquiry dates from 2005. 
                                               
48 Typically, the trading partner must be among the to p five suppliers, as measur ed in terms of import 
share during the most re cent three-year period. 
49 Article 802 of the NAFTA (Global Actions) provides for the exclusion of one party's goods from another 
party's global safeguard actions unless imports from that party account for a substantial share of total imports 
and contribute importantly to the se rious injury (or threat thereof). WT/TPR/S/314 • Canada 
 
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  3.1.8  Standards and other technical requirements 
3.65.  Canada's standardization system is  composed of over 350 organizations and 
15,000 members involved in standards development, product or service certification, testing and management systems registration. Established under the Standards Council of Canada Act, the 
Standard Council of Canada is a federal Crown corporation with the mandate to promote an 
efficient and effective standardization in Canada. It assumes its mandate by prescribing policies and procedures for the development of national voluntary standards, coordinating Canada's 
participation in the international standards system, and accrediting the various bodies of the 
system.
50 The Technical Barriers and Regulations Division of the DFATD is Canada's SPS and 
TBT notification authority and enquiry point. Th ere has been no major change to the Canadian 
standardization system since the last Review. 
3.66.  Standards development is carried out by Standards Development Organizations (SDOs), 
accredited by the SCC. There are currently eight SDOs: the Canadian Standards Association (CSA); the Underwriters' Laboratories of Canada (ULC); the Canadian General Standards Board 
(CGSB); the Bureau de normalisation du Québ ec; Air-Conditioning, Heating & Refrigeration 
Institute; ASTM International; NSF International; and ULC Standards. Although these institutions may develop standards in any area, they generally operate in agreed areas of specialty reflecting 
the expertise of their technical committees. Once a SDO makes the decision to develop a standard, 
it establishes a technical committee that generally includes consumer representatives, general interest group representatives, government o fficials and producers. The committee typically 
reviews existing (international) standards first for possible adoption or adjustment. Standards are 
developed through a consensus-based decision making process. Once a draft standard is 
developed, the public is invited for review an d comments. A minimum time-frame of 60 days is 
prescribed for the submission of comments by interested parties (including those outside Canada) 
before the publication of the standard. 
 
3.67.  A standard may be further submitted to the SCC for consideration as a National Standard of 
Canada. Key criteria in the SCC's decision include: the composition of the committee and the 
degree of consensus in the development of the st andard; the consistency of the standard with 
existing international or relevant foreign standards; and, the extent to which the standard does not act as a barrier to trade. National standards are to be reviewed and updated every five years. They can be further submitted to international organisations for consideration and adoption as 
international standards. Over the past four years, the number of active standards has declined, 
from 3,482 in 2010-11 to 2,901 by mid-2014. As of  mid-2013, there were 141 national standards 
and 98 adoptions of international standards.
 
3.68.  The SCC also has the mandate to grant accreditation to organizations delivering services such as testing, certification, and management systems registration. Certification bodies are accredited on a fee-for-service basis. As of 2014, there were 37 certification bodies (including 
U.S.-based bodies), more than 350 testing organizations, and 27 management systems registrars 
accredited by the SCC. 
3.69.  Canada's participation in international standardization activities is generally governed by 
ISO/IEC statutes, rules of procedures and directiv es. Mutual recognition agreements are generally 
negotiated by the SCC. The SCC has agreements  with a number of foreign standards bodies, 
including the American National Standards Institute (ANSI), the Korean Agency for Standards and Technology (KATS), the Mongolian Agency fo r Standardization and Metrology (MASM), The 
Standardization Administration of China (SAC), the European Committee for Standardization 
(CEN), and the European Committee for Electro-Tec hnical Standardization (CENELEC). In addition, 
SCC is a signatory to a number of voluntary accreditation agreements, including the International 
Accreditation Forum (IAF), the Asia-Pacific Laboratory Accreditation Cooperation (APLAC), and the 
Inter-American Accreditation Cooperation (IAAC). 
3.70.  The process of preparing technical regulations is decentralized. Various federal and 
provincial authorities develop regulations, including technical regulations. When developing 
technical regulations, federal authorities must carry out consultations with interested parties as 
early as possible, and, in general, it is expected that the extent of the consultations be 
                                               
50 More information may be obtained at the SCC's website. Viewed at: 
https://www.scc.ca/en/stan dards/committees/get-inv olved-standardization. WT/TPR/S/314 • Canada 
 
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  proportional to the regulation's impact. Federal authorities must publish proposals in the 
Canada Gazette Part I , to allow for a public comment period (pre-publication stage). In some 
cases, this requirement is explicitly specified in the enabling legislation. For all other regulations that do not have a fixed statutory comment period, the Treasury Board, which is the Cabinet 
Committee in charge of reviewing and approving regulations, may, upon request by a federal 
authority, waive the pre-publication requirement or shorten the comment period. However, the authorities have indicated that this is rare and may occur only in circumstances where the 
expected value from pre-publication is limited (for instance, proposals that are straightforward 
harmonization with international standards). In fact, in most instances of harmonization with international technical standards, pre-publicatio n has been pursued to ensure that affected 
stakeholders are notified of the implementati on timelines and requirements. The period for 
comments is typically 30 days. In accordance with Canada's obligations of notification under 
various trade agreements, a longer period for comments (at least 75 days) is observed for technical regulations that affect trade. 
3.71.  Draft regulations must be accompanied by a "regulatory impact analysis statement" 
describing their estimated benefits and costs, the results of the consultations with stakeholders, and the proposed regulations' monitoring and en forcement instruments. Upon approval by the 
Treasury Board, the Governor General signs th e regulation, and the Registrar of Statutory 
Instruments registers it. Regulations enter into force immediately after registration or on a day specifically stipulated. The Regulation can only be enforced once published in the Canada Gazette 
Part II . Such publication must occur within 23 days of registration. 
3.72.  The development of technical regulations must follow, to the extent possible, the Cabinet 
Directive on Regulatory Management , which applies to all federal departments, agencies, and 
entities over which the Cabinet has either general authority or a specific authority relating to 
regulation making.
51 Under the Directive , federal authorities are expected to make use of all or 
parts of relevant international standards, guidelines, and recommendations when seeking to fulfil the intended policy objectives sought by the co untry. The development of technical regulations 
(and other regulations) must be preceded by an identification of policy issues, their assessment 
and the determination of the need for government intervention. Once the public policy issues are 
identified, responsible departments and agencies must: set measurable objectives that address the public policy issue and its causes; establish linkages to enabling legislation and government 
priorities to ensure relevance and consistency; and develop and use performance indicators on an 
ongoing basis to monitor and report on progress against performance expectations, with a particular emphasis on high impact proposals. Departments and agencies are also responsible for 
assessing the benefits and costs of regulatory and non-regulatory measures, including government 
inaction.
 
3.73.  To ensure compliance with international commitments, the Directive encourages agencies 
and departments preparing the technical regulations to seek the advice of the DFATD concerning 
the compatibility of the proposed regulations with Canada's trade obligations. Departments and agencies are to take advantage of opportunities for cooperation, either bilaterally or through 
multilateral fora, by reviewing and influencing international best practices, sharing knowledge, 
adopting or contributing to the development and updating of international standards and 
conformity assessment procedures, and developing and pursuing compatible approaches with international counterparts. Agencies are also instructed to limit the number of specific Canadian 
regulatory requirements or approaches to instance s when they are warranted by specific Canadian 
circumstances and when they result over time in the greatest overall benefit to Canadians, and to 
minimize regulatory differences with key trading partners (e.g., the United States) including 
through regulatory alignment, mutual recognition, and the development of compatible approaches. 
3.74.  Canada does not maintain a catalogue of technical regulations. However, Canada Gazette's  
Consolidated Index of Federal Statutory Instruments includes (but does not specifically categorize 
or indicate) technical regulations.  
                                               
51 The Directive, which came into effect in December 2012, updated and replaced the Cabinet Directive 
on Streamlining Regulation (dated 1 April 2007) and the Government of Canada Regulatory Policy  (dated 
November 1999). Treasury Board of Canada Secretariat online information. Viewed at: http://www.tbs-sct.gc.ca/rtrap-parfa/cdrm- dcgr/cdrm-dcgr01-eng.asp. WT/TPR/S/314 • Canada 
 
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  3.75.  Canada relies on a variety of tools to ensure compliance with technical regulations, 
depending on a number of factors, including risks and the particular characteristics of the sector. 
Conformity assessment procedures are generally specified in Canadian technical regulations. In sectors subject to third-party conformity assessment,  most Canadian regulatory authorities rely on 
conformity assessment bodies accredited by th e SCC, whose criteria are based on ISO/IEC 
standards and include additional requirements to fulfil the needs of Canadian regulatory 
authorities. Third-party conformity assessment is used in a number of sectors, including electrical 
safety, some medical devices, and construction products. Canada uses suppliers' declaration of 
conformity for motor vehicles, electromagnetic compatibility, and some telecommunications products. Regulatory authorities are directly responsible for conformity assessment for certain products (pharmaceutical products and medical devices for instance). 
3.76.  Between 2011 and 2014, Canada raised 26 specific trade concerns (STC) in the 
TBT Committee.
52 The concerns were related to measures  maintained by a variety of partners, 
including Ecuador (5 STCs), China (3 STCs), Euro pean Union (3 STCs), and Viet Nam (3 STCs). 
The most frequent issues were related to discrimination and requests for clarification or further 
information. 
3.77.  Canada has regularly notified its draft te chnical regulations, ordinances, and conformity 
assessment procedures to the TBT Committee. During the 2011-14 period, Canada submitted 
115 new technical regulation notifications (excluding corrections and appendices).53 Canada 
participates in a number of conformity assessment agreements (Table A3.1).  
3.1.9  Sanitary and phytosanitary requirements 
3.78.  The Food and Drugs Act (FDA) and regulations remain the main federal statute applying to 
the safety of food sold in Canada (including those that are marketed exclusively within the provinces). The legislation is supplemented by the Fish Inspection Act , the Canada Agricultural 
Products Act , the Meat Inspection Act , and the food provisions of the Consumer Packaging and 
Labelling Act .  
3.79.  Health Canada and the Canadian Food Inspection Agency (CFIA) are the main regulators for 
food safety, animal health and plant health. In  October 2013, the Federal Government announced 
the transfer of the reporting relationship of the CF IA from the Minister of Agriculture and Agri-Food 
to the Minister of Health, bringing under the same department the main federal food safety authorities. The Minister of Agriculture and Agri-Food  retains its responsibility over non-food safety 
agricultural activities, including economic and trade issues, as well as animal health and plant 
protection work. 
3.80.  Health Canada is responsible for establishing standards and policies governing the safety 
and nutritional quality of all food sold in Canada.
54 Its mandate also includes conducting 
food-related health risk assessment, approving an d regulating pest control products and setting 
maximum residue limits (MRLs) for pesticides that may remain in or on food; and, evaluating the 
safety of veterinary drugs used in food-produci ng animals and establishing corresponding MRLs.  
3.81.  The enforcement of food safety-related st andards and policies is within the purview of the 
CFIA. The CFIA is responsible for enforcing all federally mandated inspection, compliance, and quarantine requirements related to food, animal he alth and plant health. The CFIA is also the lead 
agency for risk assessments related to animal health and plant health.
55 The CFIA is responsible 
for administering a number of acts and their re gulations. These include: the Agriculture and 
Agri-Food Administrative Monetary Penalties Act,  the Canada Agricultural Products Act, the 
Canadian Food Inspection Agency Act, the Feeds Ac t, the Fertilizers Act, the Fish Inspection Act, 
the Food and Drugs Act (as it relates to food), the Health of Animals Act, the Meat Inspection Act, 
the Plant Breeders' Rights Act, the Plant Protection  Act, the Safe Food for Canadians Act, and the 
Seeds Act. 
                                               
52 WTO TBT Information Management System. Viewed at: 
http://tbtims.wto.org/web/pages/search/stc/Search.aspx. 
53 WTO documents G/TBT/N/CAN/326, 7 January 2011 to G/TBT/N/CAN/435, 11 December 2014. 
54 Health Canada online information. Viewed  at: http://www.hc-sc.gc.ca/index-eng.php. 
55 More information on the CFIA's  activities can be found at: ht tp://www.inspection.g c.ca/about-the-
cfia/eng/1299008020759/1299008778654. WT/TPR/S/314 • Canada 
 
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  3.82.  SPS-related requirements for imports into Canada are the responsibility of the Federal 
Government given its constitutional jurisdiction over international trade. Provinces and territories have jurisdiction within their respective borders and have legislation for some food safety issues, including for food manufactured and sold within their borders. 
3.83.  In 2012, the Food and Drugs Act  (FDA) was amended to include two new tools: Marketing 
Authorizations  (MA) and Incorporation by Reference . The MA framework gives the Minister of 
Health the authority to issue authorizations for the use of specific substances in foods (e.g. food 
additives) and health/nutrition representations/claims for foods under certain conditions. The 
amendments also provided an expanded author ity to incorporate by reference technical and 
non-technical standards, methods, guidelines or an y other documents, into MAs, or directly into 
the Food and Drug Regulations. These amendments were intended to allow the Minister to act 
rapidly on certain science and safety decisions, an d to improve efficiency in the food regulatory 
system, ultimately making it more responsive to emerging health and safety issues. 
3.84.  Canada is in the midst of importan t changes to its food safety system. On 
22 November 2012, the Safe Food for Canadians Act (SFCA)  received Royal Assent. The SFCA 
aims at stronger food safety rules and more consistent and effective inspection, and provides for increased penalties for non-compliance. The Act will consolidate and replace existing food 
legislation, other than the FDA
56, and enhance inspection powers. It applies to all food 
commodities that are traded inter-provincially and internationally, but not to natural health products. The new legislative framework prohibits food tampering, deceptive practices and hoaxes. 
Parties may still have recourse to a judicial review by the Federal Court if they are unsatisfied with 
the appeal mechanism.  
3.85.  The SFCA will be brought into force throug h implementing regulations. Consultations on the 
proposed regulations were under way as of Febr uary 2015. The proposed regulations would apply 
international standards for preventive controls (such as the Hazard Analysis and Critical Control 
Points and Good Manufacturing Practices) to al l food traded inter-provincially, exported and 
imported. New traceability requirements would allow for more timely removal of unsafe food from 
the supply chain. Like domestic manufacturers, food importers would need to be licensed and have 
preventive control plans that demonstrate that imported products meet Canadian requirements. 
The authorities indicated that the CFIA will be working with small and medium enterprises to explore approaches tailored to their operational need s and to assist them in achieving compliance.  
3.86.  In the transition period before the SFCA comes into force, the CFIA implemented some 
changes using existing authorities and administrative guidelines. For instance, in the quest of a more effective inspection, the CFIA embarked in a process to design a new and Improved Food 
Inspection Model to modernize its regulatory oversight under existing legislation. A final round of 
consultations on the Integrated Agency Inspection Model (iAIM) was concluded in August 2014
57 
with a multi-year implementation underway.58  
3.87.  The iAIM is serving as the policy basis for the proposed regulatory framework under the 
SFCA, including requirements for licensing and prev entive control plans. The Model also calls for a 
consistent and risk-based approach to inspection that will focus its activities on food commodities and establishments that pose the greatest risk for consumers. It has also established Inspection 
Verification Teams to oversee food inspection performance. The iAIM does not cover foreign 
facilities, but applies to them through domestic importers. It calls for extending licensing requirements to all businesses and individuals involved in the importation or preparation of food 
for export or interprovincial trade. The iAIM also  proposes requirements for businesses to develop, 
implement and maintain preventive control plans based on the Codex Alimentarius, IPPC and OIE 
principles and standards. 
 
                                               
56 These include: the Fish Inspection Act, the Canada Agricultural Products Act, the Meat Inspection Act, 
and the food provisions of the Cons umer Packaging and Labelling Act. 
57 Comments were solicited from WTO Members on various occasions. See WTO document 
G/SPS/N/CAN/613, 13 June 2012; and subsequent revisions.  
58 CFIA (2014 ), Integrated Agency Inspection Model. Viewed at: http://www.inspection.gc.ca/about-the-
cfia/accountability/inspection -modernization/integrated-agency-inspection-model/iaim-
consultation/eng/1390935174455/1390935603829. WT/TPR/S/314 • Canada 
 
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  3.88.  Other SPS-related changes include the full implementation, by April 2013, of the aquatic 
animal health import programme. Under the programme, import permits are required for "susceptible species" of finfish, molluscs, and crustaceans.
59 Import permits contain specific 
requirements based on the disease risks associated  with the animal, the origin, and other relevant 
health information. A health certification from the country of origin may be required. 
3.89.  CFIA's has developed an automated import system to assist importers and Customs in the 
management of their imported agriculture, fish, health and food products. The system consists of 
several modules including the Automated Import Reference System (AIRS) and a database of 
import requirements. 
3.90.  Between 2011 and 2014, Canada submi tted 394 notifications under the SPS Agreement 
(excluding addenda and corrections).60 This comprises 58 regular notifications of new or changed 
SPS regulations and five emergency notifications (compared to 208 regular and five emergency 
notifications over the 2007-10 period). Two STCs were raised about measures by Canada. In October 2012, Argentina expressed concerns regarding Canada's delay in opening its market to 
poultry and bovine meat from Argentina despite favourable risk assessments. Canada indicated 
that the delay was due to budgetary and staffing restrictions, but reaffirmed its intention to audit Argentina's beef and poultry meat inspection  systems. In 2013, China raised, during a 
TBT Committee meeting, a STC regarding Canada's proposed food inspection model.
61 The 
representative of China requested the Canadian au thorities to base any changes in their measures 
on relevant international standards, such as Codex standards. Canada indicated that it has provided Members the opportunity to comment on  its proposed food inspection model on two 
occasions.
62 Furthermore, on 2 April 2013, Canada invited WTO Members to another round of 
consultation on the proposed draft.63  
3.91.  During the same period, Canada raised a STC about Mexico's imposition of bovine 
spongiform encephalopathy (BSE)-related restrictions on Canada's export of beef from cows, 
despite Canada being recognized by the OIE as a "controlled" BSE-risk country. The concern was supported by the European Union. Mexico expresse d its willingness to work on the issue bilaterally 
with Canada. 
3.2  Measures Directly Affecting Exports 3.2.1  Export procedures and requirements 3.92.  Businesses and individuals are required to create an export or an import/export Business 
Number account with the Canada Revenue Agency before exporting commercial goods. The use of 
the services of a customs broker or freight forwarder is not mandatory. 
3.93.  In accordance with the Customs Act (Part V), exporters, carriers and customs service 
providers are, in general, required to report goods being exported from Canada. The main 
objectives of such reporting are statistical purposes and to control the export of strategic, dangerous, and other controlled and regulate d goods. The minimum timeframe for export 
reporting depends on the mode of transportation and the nature of the goods to be exported. In 
general, the timeframe is two hours prior to loading for goods to be exported by air, rail or through the post office, and 48 hours for goods to  be loaded onto a vessel in the marine mode. 
Goods exported through highways and time-sensitive goods may be reported immediately before 
they are exported. A variety of exemptions to the reporting requirement are in place and cover 
transactions such as exports to the United States, or transactions related to goods having a value of less than Can$2,000 (provided that they ar e non-restricted exports). There is a general 
exemption for items such as: personal and hous ehold effects; goods exported for repair or 
                                               
59 A list of susceptible species of aquatic animals may be viewed at: http://inspection.gc.ca/animals/ 
aquatic-animals/diseases/susceptible-species/eng/1327162574928/ 1327162766981.  
60 WTO - SPS Information Management System (SPS IMS). Viewed at: http://spsims.wto.org/.  
61 WTO document G/TBT/M/59, 8 May 2013. 
62 In June 2012, Canada sought comments from Members on a document called "The Case for Change" 
- which outlined the proposed core components of  an improved inspection  model (WTO Document 
G/TBT/N/CAN/365, 18 June 2012). The second opportunity was in August 2012, when Canada sought feedback 
on its draft improved food inspection model (WTO  document G/TBT/N/CAN/365/Rev.1, 24 August 2012). 
63  WTO Document G/SPS/N/CAN/613/Rev.1/Add.2, 3 April 2013. WT/TPR/S/314 • Canada 
 
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  warranty repair; goods exported by diplomatic embassies; goods in transit; and goods removed 
from a bonded warehouse or sufferance warehouse. 
3.94.  Exporters may file their declaration manually using the B13A form, or electronically using 
either the Canadian Automated Export Declaration (CAED) or the G7 Electronic Data Interchange 
(EDI) Export Reporting systems. Registration is requ ired prior to the use of the electronic reporting 
systems. There is no fee related to the CAED sy stem. Over the past three years, CBSA has been 
taking steps to eliminate the manual reporting process and replace it with mandatory electronic 
reporting. Through the Export Summary Program, qualified businesses may be allowed to report 
their exportations on a monthly basis, provided that the goods are bulk and homogenous. 
3.95.  Goods reported in accordance with the Customs Act may be subject to physical inspection in 
order to ensure compliance with the legislation. In the case of goods that are not reported under 
the provisions of the legislation, CBSA must have reasonable grounds that a regulation is being 
contravened in order to target them for any physic al examination. The inspection is free of charge, 
but the exporter is responsible for the costs related to the unloading and reloading of the cargo, 
and charged by third-parties. The exporter may be required to produce a proof of exports in some 
circumstances. It is the case for instance for goods imported temporarily and subsequently exported.
64 Penalties for non-compliance are assesse d through the AMPS (Section 3.1.1). 
3.2.2  Export taxes, charges, and levies 
3.96.  The Export Act and Import Permits Act provid es for the imposition of export duties by the 
Governor in Council on certain ores and metals, under certain circumstances.65 The Governor may 
also impose export duties on a number of logs an d pulpwood products (pine, Douglas fir, spruce, 
fir balsam, cedar and hemlock logs and pulpwood) de stined to trading partners that charge duties 
on their imports of timber, lumber or wood products from Canada. However, to date no export taxes, charges or levies are being collected under the Export Act. 
3.97.  Duties on softwood lumber are collected in accordance with the 2006 Canada-United States 
Softwood Lumber Agreement . In 2013, the Agreement was extended from its original seven years 
period up to October 2015. The measures apply to exports from the following Canadian provinces: 
Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and British Columbia.
66 Under the Agreement, 
these provinces may opt either for an export charge without any volume restraints or a combination of a lower export charge and a restriction on the export volume.
67 Currently, Alberta 
and the British Columbia have opted for an export charge without volume restraints while the four 
other provinces have opted for the other option. Duties are levied when a trigger price is reached, 
that is, when the reference price of lumber reaches or falls below US$355 per thousand board feet. The revenues from the duty are redistributed to th e provinces based on the origin of the softwood, 
but must not flow back to the industry. Between 2011 and 2013, an additional charge of 0.1% and 
2.6% was imposed on exports from the provinces of Ontario and Quebec respectively. 
3.98.  A special duty applies to the exportatio n of unstamped domestically-manufactured tobacco 
products, with the objective of reducing the incentives to smuggle these products back into 
Canada. The duty rates depend on the manufacture r's production in the preceding calendar year. 
For export quantities of up to 1.5% of total prod uction, the special duty is levied at the rate of: 
Can$21.03 per carton of 200 cigarettes; Can$21.03 per 200 tobacco sticks; and Can$26.25 per 
200 grams for other tobacco products. Quantities ov er the 1.5% threshold must be stamped, and 
therefore, are subject to the domestic rates that  apply to stamped tobacco. In addition, they are 
subject to a special duty of Can$19.1448 per cart on of 200 cigarettes or per 200 sticks of tobacco, 
                                               
64 Memorandum D20-1-4, December 2008. Viewed at: http://www.cbsa.gc.ca/publications/dm-
md/d20/d20-1-4-eng.html.  
65 Export Act, R.S.C., 1985, c. E-18. 
66 British Columbia Coast and British Columbia interior as defined in the British Columbia Forest Regions 
and Districts Regulations. 
67 The export charge for Option A provinces varies wi th the price as follows: 15% if the reference price 
is US$315 or less; 10% if the price is between US$316 and US$335; 5% if the price is above US$336 but less 
than US$355. The combination of export charge and volume restraint (in share of U.S. consumption) for Option B provinces is as follows: a charge of 5% and a regi onal share limit of 30% of U.S. consumption if the 
reference price is US$315 or less; a charge of 3% and a regional share limit of 32% if the price is between 
US$316 and US$335; and a charge of 2.5% and a regional share limit of 34% if the price is between US$336 and US$355. WT/TPR/S/314 • Canada 
 
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  and Can$23.931 per 200 grams of other tobacco products.68 A refund of the special duty may be 
provided if it is demonstrated that the products have entered into a foreign market for consumption and foreign duties have been paid. The refund is provided only for the quantity up to the 1.5% threshold. 
3.2.3  Export prohibitions, restrictions, and licensing 
3.99.  Canada's export controls are mainly governed by the Export and Import Permits Act 
(EIPA) .
69 The Export Control List70 (ECL), a regulation made und er the authority of the EIPA, 
establishes a listing of controlled goods an d technologies. The ECL is supplemented by A Guide to 
Canada's Export Controls  (Guide) providing greater detail on the goods and technologies controlled 
for export.71 Since Canada's previous review, the ECL and the Guide  have been amended to 
incorporate updated controls from a number of multilateral regimes such as: the Wassenaar 
Arrangement, the Nuclear Suppliers Group, th e Missile Technology Control Regime, and the 
Australia Group. Most items on the list are mili tary and strategic goods or technology, including 
dual-use goods.72 Canada also issues Certificates of Eligibility to ensure orderly marketing of 
certain textiles and apparel exports to the U.S. under the NAFTA. These products are not listed on 
the ECL, as they are subject to certificates of eligibility, rather than export permits. 
3.100.  In general, an export permit is required  for the export of items included on the ECL, 
irrespective of the destination, with some exceptions for exports to the United States.73 The 
issuance of export permits and certificates is under the authority of the DFATD. Exporters can 
submit their application by mail, fax, or online through Export Controls Online (EXCOL)74 or the 
Export Import Control System (EICS). Fees are set out in the Export and Import Permits and 
Certificates Fees Order .75 Enforcement is under the responsi bility of the CBSA and the Royal 
Canadian Mounted Police. Canada's main export prohibitions, restrictions and licensing are listed in Table 3.11. 
Table 3.11 Main export prohibitio ns, restrictions and licensing, 2014  
Products/destinations Rationale 
Military and strategic goods and 
technology Implementation of intergovernmental arrangements or 
commitments and/or national security 
Agricultural and food products  
 - Peanut butter U.S. quota regime 
 - sugar-containing products U.S. quota regime 
 - sugars, syrups and mola sses U.S. quota regime 
Forest products:  
 - Logs Promote the further processing 
 - Pulpwood Promote the furt her processing 
 - red cedars Promote the further processing 
 - Softwood lumber products Softwood Lumber Agreement 
Textiles and apparel 
 Implementation of intergovernmental arrangements or 
commitments.  
Source: EIPA (Section 3(1)(a) and (d)), and info rmation provided by the Canadian authorities. 
                                               
68 For more details regarding the le gislation governing this tax, see Excise Act, 2001 , sections 50 and 56 
and Schedule 3. 
69 Export and Import Permits Act. Viewed at: http://laws-lois.justice.gc.ca/eng/acts/e-19/. 
70 Export Control List. Viewed at: http://laws-lois.justice.gc.ca/eng/regulations/SOR-89-202/index.html. 
71 As of January 2015 the current version of the Guid e is "A Guide to Canada's Export Controls – 
December 2013". Viewed at: http://www.international.g c.ca/controls-controles/about-a_propos/expor/guide-
2013.aspx?lang=eng. 
72 DFATD (2013). 
73 Export permits are not required fo r most controlled goods or technolo gy destined to a final consignee 
in the United States. Items that do require an export pe rmit to the United States are defined in "A Guide to 
Canada's Export Controls" via a statement th at the control applies to All Destinations. 
74 The Export Controls On-Line (EXCOL). Vi ewed at: https://www.excol-ceed.gc.ca/Main-
Principal/Home_Accueil.aspx?lang=eng. 
75 Export and Import Permits an d Certificates Fees Order  (SOR/95-245). Viewed at: http://laws-
lois.justice.gc.ca/eng/regulations/SOR-95-245/page-1.html. WT/TPR/S/314 • Canada 
 
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  3.101.  Permit requirements may also depend on the origin or destination of the goods to be 
exported. An individual export permit is required for U.S.-origin goods if the goods are to be exported to destinations such as Iran, Cuba, Syri a or the Democratic People's Republic of Korea. 
The export of any item to countries on the Area Control List
76 also requires a permit. 
3.2.4  Export support and promotion 
3.102.  Canada's commercial promotion activities are undertaken by a network of agencies and 
organisations, the Trade Commissioner Service (TCS) being the most prominent one.77 Through its 
extensive network of 161 offices around the wo rld (up from 150 at the time of the previous 
Review), five regional hub offices, and a network of trade commissioner satellites co-located with public and private sector partners across the coun try, the TCS offers a wide range of services 
aimed at helping businesses prepare for international markets, assess their market potential, find 
qualified contacts, and resolve business-related problems. Since the last review, new offices have 
been opened in countries such as China, India and Brazil. 
3.103.  The TCS is under the responsibility of the DFATD from which it receives its funding. Its 
services are free of charge, and available to  companies and organizations deemed having 
meaningful economic ties in Canada, a demonstrated capacity for internationalization, and contributing to Canada's economic growth.
78 During the fiscal year 2012-13, the actual level of 
spending by the DFATD under the International Commerce Business line amounted to 
Can$160.6  million, a slight decline compared to the previous fiscal year. Most of these resources 
(78%) are spent under the International Business Development.79 It is estimated that the TCS has 
helped businesses to conclude about 950 commercial agreements and facilitated 147 FDI projects 
worth Can$2.7 billion of investment. Between 201 0 and 2014, TCS disbursed an estimated amount 
of Can$53.2 million under its various programmes (Table 3.12). 
Table 3.12 Main TCS funding programme s and amount disbursed, 2010-14 
(Can$ million) 
Program Description of the service provided Amount disbursed 
2010-14 
Global Opportunities for 
Associations (GOA) Non-repayable support to as sociations starting or 
expanding international business development activities 6,8 
Going Global Innovation 
(GGI) Matching funds of up to 75% of eligible expenses 
incurred in pursuing international collaborative 
R&D opportunities, with  a minimum request of 
Can$5,000. The programme is currently on hold 2,3 
Invest Canada-Community 
Initiatives (ICCI) Non-repayable support to communities seeking to 
attract FDI 12,6 
Foreign Trade Zones – 
Marketing Program 
(FTZ-MP) Non-repayable contributions to organizations for 
the promotion of Canada's Foreign Trade Zone n.a. 
International Science and 
Technology Partnership Program (ISTPP) Support to R&D collaboration programmes with 
Brazil, China, India and Israel. Programme is currently undergoing renewal 15.0
a 
                                               
76 These are Belarus and the Democratic People's Repub lic of Korea. The Area Control List regulation is 
made under section 4 of the Export and Im port Permits Act. Viewed at: http://laws-
lois.justice.gc.ca/eng/regulations/SOR-81-543/FullText.html. 
77 Other agencies include: Agri-Food Trade Servic e (AAFC), Export Development Canada, Business 
Service Centers (Industry Canada), and industry organisations such as the Canada Pork International. 
78 Meaningful economic ties include maintaining estab lished offices, a subsidiary , a plant, a research and 
development establishment, or a joint venture in Canada . A capacity for internationalization is reflected in 
having researched foreign markets, dedicated human and financial resources, and having a business plan. 
Contribution to Canada's economic growth is measured  as increased exports of Canadian-made products or 
services, technology transfer, new jo b creation, increased research and development activity or increased 
production in Canada. TCS online information. View ed at: http://www.tradecommissioner.gc.ca/eng/how-tcs-
can-help.jsp.  
79 FDI in Canada and International Innovation, Science and Technology, the two other sub-components 
of this business line, accounted respectively for Can$22.5 and Can$12.8 million. WT/TPR/S/314 • Canada 
 
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  Program Description of the service provided Amount disbursed 
2010-14 
Investment Cooperation 
Program (INC) Support to businesses engaged in 
developmentally beneficial investment in 
developing countries 16.5b 
n.a. Not applicable. No application has been received at the time of writing this report (the programme 
was created in 2013-14). 
a The figure is a combination of funding under ISTPP 1 (2006-13) and ISTPP 2 (2010-15). Unlike the 
ISTPP 1 funds which were available to all R&D instit utions, ISTPP 2 funds are restricted to industry. 
b Fiscal year amounts (1 April 2010 to 31 March 2014). 
Source: Department of Foreign Affairs and International Trade (DFAIT). 
3.104.  TCS generally delivers its services to its clients in response to specific requests. Some of 
its activities (for instance, business-to-busine ss events, trade missions, workshops, etc.) are 
however pro-actively planned, in line with priority sectors and priority markets identified by the 
authorities. TCS clients are predominantly SMEs, as they account for the essential of businesses 
engaged in exports.80 An empirical study of the support provided by the TCS between 1999 and 
2006 reached a conclusive evidence of the impact of  TCS assistance in terms of boosting exports 
and helping firms diversify into new markets.81 The study found that businesses who received 
TCS assistance exported, on average, 18% more than comparable exporters who did not receive 
the support. Furthermore, TCS clients exported on average to 36% more markets than non-TCS clients. Building on the success of the 2007 Global Commerce Strategy, the Federal 
Government announced, in 2013, a new trade plan: the Global Markets Action Plan (GMAP). Under 
the GMAP, the federal government aims at concentrating its efforts on sectors and markets that are deemed to hold the greatest potential for Canadians businesses.
82 Foreign markets are 
classified depending on their potential for Canada's commercial interests. The Plan identified 
50 priority markets further classified into three groups: 20 classified as emerging markets with the potential for broad commercial interests; 24 markets classified as emerging markets with specific opportunities; and 6 classified as established markets (counting the EU and EFTA as single 
markets). Specific targets include raising Canada's SME export presence in emerging markets from 
29% to 50% by 2018, and their number, from 11,000 to 21,000 companies.  
3.105.  The Economic Action Plan 2013  announced a package of measures to reduce red tape, cut 
costs, improve access to existing programmes and promote Canada's foreign trade zone 
advantage. The measures include: the elimination of the annual registration fee for the Customs Bonded Warehouse Program (into effect on 22 March 2013); the simplification of the application 
process to access FTZ programmes; the streamlining of the audit process for duties relief 
programmes; and the launch of the Foreign Trade Zones - Marketing Program (FTZ-MP), a five-year Can$5 million programme designed to  market FTZ advantage and attract foreign 
investment. The FTZ-MP is designed to support Canadian regional organizations and non-profit 
organizations in their promotion of local FTZ-type benefits linked to strategic locations across 
Canada. It provides non-repayable contributions ranging from Can$10,000 to Can$150,000 for activities spanning a 12 month period. FTZ-MP provides matching funds of up to 50% of eligible 
expenses. 
3.106.  Through Canada Business Network, a programme managed by Industry Canada, 
businesses also have access to a wide range of information on government services, programmes 
and regulatory requirements.  
3.2.5  Export finance, insurance, guarantees 3.107.  Export Development Canada (EDC) is a Crown corporation with the mandate to support 
and develop export trade and help businesses respond to international business opportunities.
83 It 
provides insurance products, financing and bonding solutions to companies engaged in 
export-related activities, as well as to their foreign customers (Table 3.13). EDC is financially 
                                               
80 According to the TCS, 95% of bu sinesses engaged in goods exports are SMEs. In 2012, SMEs exports 
of goods were worth Can$144 billion, that is nearly one-third of total merchandise exports. 
81 Van Biesebroeck, Yu, and Chen (2010). 
82 Government of Canada (2014b). 
83 Export Development Act, R.S.C., 1985, c. E-20. Last amended on 11 March 2014. WT/TPR/S/314 • Canada 
 
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  self-sustained. Its revenue is generated primary from fees charged on its services, and interest 
collected on its loans. The corporation may borrow money on capital markets or, if ever required, request loans from the Ministry of Finance. 
Table 3.13 EDC finance, insurance,  and guarantee programmes (as of 
30 September 2014) 
Products Purpose Businesses 
financed in 2014 
(Can$ billion) 
Insurance  55.1 
Accounts Receivable 
Insurance Covers up to 90% of losses resulting from risk such as: 
insolvency, default, refusal to accept goods, hostilities in the 
market, cancellation of permit s, cancellation  of contract. 40.8 
Single Buyer 
Insurance Covers up to 90% of losses  resulting from insolvency, 
default, hostilities in the mark et, cancellation of permits. 0.02 
Contract Frustration 
Insurance Covers up to 90% of losses resulting from: insolvency, 
default, refusal to accept good s, hostilities in the market, 
cancellation of permits, breach  of contract, moratorium on 
debt. 0.04 
Performance 
Security Insurance Covers up to 95% of losses resulting from wrongful calls on 
guarantees for ex port contracts. 0.08 
Political Risk 
Insurance Covers up to 90% of losses resulting from political risks such 
as: hostilities in the market, cancellation of permits, breach 
of contract (public sector en tities), morato rium on debt, 
expropriation, political violence, non-payment by 
Government, damage to goods,  seizure, re-possession. 2.2 
Financing  8.2 
Export Guarantee 
Program Provides up to 100% guarantee on loans used by businesses 
to increase their working capital, purchase new equipment or 
support foreign investments. 0.5 
Foreign Buyer 
Financing  Provides loans, lines of credit or guarantees to foreign buyers 
of capital goods and services from domestic suppliers. 2.5 
Foreign Investment 
Financing Provides loans to mid-sized companies to help them grow 
their international sales or make investment in foreign 
operations. 3.6 
Supplier Financing Buys promissory notes issued by foreign buyers of Canadian 
goods and services. 0.2 
Structured and 
Project Finance Provides financing solutions to companies engaged in large-
scale global projects. 1.9 
Bonding and 
guarantees  3.2 
Account 
Performance 
Security Guarantee Helps businesses issue international transactions-related 
bonds by offering collateral solutions (100% guarantee), 
protection against wrongful calls (up to 95% of the losses), 
and reinsurance (up to 85% of the value of the bonds). 2.6 
Foreign Exchange 
Facility Guarantee Helps businesses engage in foreign exchange contracts by 
replacing the collateral that may be required by financial institutions. 0.09 
Surety Bond 
Insurance Protects surety companies from losses resulting from bonds 
issued on behalf of businesses. 0.3 
Source: Information provided by the Canadian authorities, and EDC online information. Viewed at: 
http://www.edc. ca/EN/Our-Solutions/Pages/default.aspx. 
3.108.  In 2013, EDC facilitated a total of approximately Can$95.4 billion in exports, investment 
and domestic support. Preliminary data indicate d a value of approximately Can$70 billion of 
business facilitated as of 30 September 2014 (Table 3.13). Approximately 60% of these resources went to businesses related to infrastructure and equipment, natural resources and the extractive 
industries.  WT/TPR/S/314 • Canada 
 
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  3.109.  EDC may also fund non-export related tran sactions, subject to ministerial approval. At the 
time of the financial crisis in 2009, the Export Development Act was amended to include domestic financing, guarantee and insurance solutions in EDC's mandate. The amendment also provided for 
an increase in the limits of the corporation's paid-in capital, outstanding commitments, and 
contingent liabilities. These measures were extended until March 2014. Between 2009 and 
March 2014, EDC used these temporary powers to provide approximately Can$11 billion in domestic support, of which Can$7.8 billion was provided in direct domestic lending, and 
Can$2.7 billion in domestic contract insurance and bonding.
84 In 2014, the Export Development 
Act was amended to, inter alia , refocus the EDC on its initial mandate of supporting exports. The 
Amendment re-established a 50% export transaction and/or foreign market business volume threshold for businesses to  be financed by EDC. 
3.3  Measures Affecting Production and Trade 
3.3.1  Business framework and Incentives 3.3.1.1  Business framework 
3.110.  The regulation of businesses, including licences and permits, takes place mainly at the 
provincial level. However, there is involvement at the municipal and federal level for certain sectors or activities. Depending on the type of business and the sector it will operate, a number of 
forms and permissions are needed from the province and/or the municipal government. If the 
business is a Canadian entity, it will generally take the form of a sole proprietorship, partnership, or corporation. Foreign businesses may also operate in Canada as a branch of the foreign entity. The corporate structure is the most common legal entity used in Canada. 
3.111.  The main federal law governing corporate statute is the Canada Business Corporations Act 
(CBCA) from 1985. Businesses may also choose to incorporate under provincial corporate laws, which are often modelled after the CBCA but ofte n with certain differenc es. Under the CBCA, 25% 
of the corporation's directors must be Canadian residents. Approximately 235,000 companies are 
incorporated under the CBCA. In late 2014, Industry Canada was holding consultations to review the CBCA.
85 
3.112.  Pursuant to Canada's Corporation's Return Act, corporations in Canada must report 
annually financial and other data to Statistics Canada. The purpose of the reporting requirement under this Act is to determine the level of foreign control in the Canadian economy. Some provinces also have similar reporting requirements. According to the latest data, the percentage of 
foreign controlled corporations in Canada has declined slightly over the period and now accounts 
for approximately 18%
86 of all enterprises (Table 3.14). The industry sector with the highest 
foreign control is manufacturing (50%), while the one with the highest Canadian control is 
agriculture, forestry and fishing (99%). In terms of foreign country involvement, the United States 
is the main investor accounting for approximately half of the foreign interests, followed by the United Kingdom, and the Netherlands. Government  business enterprises account for approximately 
8% of corporations (see Section 3.3.4.4).
87 
Table 3.14 Overview of corporations in  Canada by type of control, 2009-12  
(Can$ million) 
 2009 2010 2011 2012 
Under Canadian Control  
Assets 5,891,299 6,417,794 7,284,596 7,738,349 
Revenues 2,149,253 2,271,519 2,459,788 2,534,509 
Operating profits 186,304 232,608 265,229 277,726 
Under Foreign Control  
Assets 1,447,677 1,524,120 1,694,591 1,748,662 
Revenues 867,944 933,284 1,003,394 1,053,328 
Operating profits 47,276 66,621 78,875 71,892 
                                               
84 The other components are: Can$651 million in do mestic credit insurance and re-insurance, and 
Can$105 million in domestic loan guarantees. 
85 Industry Canada online information. Viewed at: http://www.ic.gc.ca/eic/site/cilp-
pdci.nsf/eng/h_cl00022.html. 
86 This percentage is in terms of assets. 
87 This share incudes both fe deral and provincial data. WT/TPR/S/314 • Canada 
 
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   2009 2010 2011 2012 
Government Business Enterprises  
Assets 541,440 744,670 765,268 807,659 
Revenues 112,637 118,307 118,886 120,195 
Operating profits 31,298 40,898 36,760 36,082 
Source: Statistics Canada , CANSIM Table 179-004. 
3.113.  In 2012, the Government launched its initiative to reduce the burden of regulations after 
consultations with businesses. Its "Red Tape Reduction Action Plan" objectives are to reduce the 
burden on businesses, make it easier to do business with regulators, and improve service and 
predictability.88 The regulatory reform initiative is one of the most ambitious and will streamline 
regulatory approval processes, reduce repo rting requirements, and improve compliance and 
enforcement.  
3.3.2  Incentives and subsidies 
3.114.  There is no overarching legal framework go verning incentives and subsidies in Canada. The 
government generally aims to create a competitive investment climate through its broad economic policies (e.g. sound fiscal policy, stable financial sector, low corporate tax rates). There are a number of incentives offered to businesses, includ ing government grants and financing, tax credits 
and incentives, and wage subsidies by federal or provincial governments. According to a study by 
the Fraser Institute, and based on data from Statistics Canada spanning from 1981 to 2009 (fiscal years), federal, provincial, and municipal subsidies to private sector business, government 
business enterprises, and consumers amounted to  1.5% of GDP in 2009, with a cost to each 
taxpayer who filed and paid taxes of Can$1,507. The Fraser Institute also looked at a second data set from the federal department of Industry Ca nada and noted that between 1961 and 2013, this 
department disbursed Can$22.4 billion to private sector business and the top 10 recipients 
(e.g. Pratt & Whitney Canada, Bombardier, CAE In c., and General Motors of Canada) received 
Can$8.5 billion, or 38% of all money disbursed.
89 
3.115.  According to Canada Business Network, a government information service for business, 
there are some 755 support programmes providing a ssistance to businesses in the form of grants, 
loan guarantees, tax refunds and credits, and wage subsidies. Many are at the provincial level and 
thus, restricted to recipients established in the province. Others are sector specific, such as 
agriculture and cultural industries. An overview of the programmes listed indicates that most are 
specifically targeted to a particular sector or lo cation and that many programmes offered were with 
respect to grants or contributions. It was not possible to determine the total amount of aid 
provided under each programme or category (Table 3.15).90  
Table 3.15 Government Financing Programmes  Listed by Canada Business Network, 
December 2014  
Financing type Number of programmes 
Grants, contributions, and financial assistance 238 
Loans and cash advances 114 
Loan guarantees 27 
Tax refunds and credits 71 
Wage subsidies 76 
Equity investments 24 
Financing for innovation 159 
Source: Viewed at: http://www.canadabusiness.ca/eng/page/2848/. 
3.116.  Industry Canada maintains three special financing programmes: two for the Aerospace and 
Defence industry, known as the Strategic Aero space and Defence Initiative (SADI) and the 
Technology Demonstration Program (TPD); and another one for small businesses, known as the Canada Small Business Financing Program (CSBFP). The SADI sets out to enhance the 
competitiveness of the Aerospace and Defence indu stry by providing repayable contributions to 
support research and development projects in the aerospace, space, defence and security 
                                               
88 Government of Canada (2012b). 
89 Milke (2014). 
90 Canada Business Network online information. Viewed at: 
http://www.canadabusiness.ca/eng/page/m2848/. WT/TPR/S/314 • Canada 
 
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  industry. The programme covers 40% of the projects ' eligible costs, and as of December 2014 had 
supported 35 projects worth Can$1.5 billion. The total amount of SADI funding is set at approximately Can$200 million per year. The Technology Demonstration Program (TDP) provides contributions in support of large-scale technology demonstration projects in the aerospace, 
defence, space and security sectors. Demonstr ation projects, led by an Original Equipment 
Manufacturer (OEM) or a Tier 1 company, require the integration of many technologies and the coordination of activities and resources from multiple project members. The TDP may award a 
non-repayable contribution to support one large scale project per year, up to a maximum of 
Can$54 million. The programme will cover up to 50% of total eligible project costs over the multi-year life of the project. The CSBFP helps small businesses with loans to obtain fixed asset 
financing in conjunction with financial institutions. The programme has been in operation for over 
50 years with the objective of helping new businesses get established and enabling established 
businesses to expand. The maximum amount of the loan is Can$500,000. The CSBFP receives 
statutory funding from the Consolidated Revenue Fund for its operations. 
3.117.  The Business Development Bank of Canada, a federal crown corporation reporting to 
Industry Canada, provides financing and other services to businesses, in particular, SMEs, to promote investment in and development of Canadi an businesses. The Business Development Bank 
of Canada provides venture capital, subordinate fi nancing, business loans, and working capital; it 
also often provides financing for businesses whose needs exceed that of traditional financing through flexible repayment terms. During the review  period, the level of the financing activities of 
the bank gradually increased, and financing consti tuted the majority of its activities, supporting 
losses in the venture capital and consulting sectors (Table 3.16). 
Table 3.16 Activities of the Business Deve lopment Bank of Canada, by net income, 
2011-14  
 2011 2012 2013 2014 
Financing 305.6 504.7 433.1 433.8 
Subordinate financing 20.4 36.2 34.7 23.3 
Venture capital (20.8) (42.7) (8,6) (12) 
Consulting (8.9) (11) (12.4) (16.9) 
Securitization 70.2 46.2 11.4 5.8 
Venture capital action plan -- -- -- (1.4) 
Source: Business Development Bank of Canada, Annual Report 2014. 
3.118.  Other federal Departments have various funding or incentive programmes, many of which 
are available to private businesses, but also to individuals, organisations, sub-federal 
governments, the non-profit sector, etc. Many of these programmes are reflected in Canada's 
subsidies notification to the WTO (Table 3.17). 
3.119.  During the review period, Canada made two notifications to the WTO, in 2011 and 2013 
respectively, pursuant to Article XVI:1 of GATT 1994 and Article 25 of the Agreement on Subsidies 
and Countervailing Measures. According to these notifications, the number of subsidy programmes 
increased from 87 to 112 from the 2011 compared  to the 2013 notification, but their value 
decreased. The programmes are almost equally di stributed between the federal and the provincial 
level, with 58 being reported at the federal level and 54 at the provincial level in 2013. At the 
federal level, most concern industry, both in terms of number and value. The next largest sector is 
the "other" category where the book and publishing  industry was the main recipient (Table 3.17). WT/TPR/S/314 • Canada 
 
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  Table 3.17 Overview of subsidies notified to the WTO, 2013  
(Can$ million) 
Programmea Number of 
programmes FY2010/11 FY2011/12 
Federal  
Industry 43 2,164.6 1,619.5 
Agriculture 3 66.8b 14.6b 
Fisheries 4 65.1 73.4 
Forestry 4 39a 39a 
Other 4 124.1 124.6 
a Totals for provincial programmes are not in cluded but can be consulted in WTO document 
G/SCM/N/253/CAN, 19 July 2013. 
b For one or more programmes a value could not be determined. 
Source: WTO document G/SCM/N/253/CAN, 19 July 2013. 
3.3.3  Competition policy and price controls 
3.3.3.1  Main regulatory and institutional framework 
3.120.  Competition law in Canada is largely governed by the federal Competition Act. The purpose 
of the Competition Act is to maintain and encourage competition in Canada in order to promote the efficiency and adaptability of the Canadian econom y, in order to expand opportunities for Canadian 
participation in world markets while at the same time recognizing the role of foreign competition in 
Canada, in order to ensure that small and medium -sized enterprises have an equitable opportunity 
to participate in the Canadian economy and in or der to provide consumers with competitive prices 
and product choices. It addresses three categories of conduct: mergers, criminal matters and 
reviewable trade practices. In July 2014, Canada's Anti-Spam Legislation (CASL) came into effect. 
CASL amended the Competition Act in order to enable the Competition Bureau to more effectively address false or misleading representations and deceptive marketing practices in the electronic 
marketplace. The provisions of CASL are enforced  by the Competition Bureau together with the 
Canada Radio-television and Telecommunications Commission (the "CRTC") and the Office of the Privacy Commissioner.   
3.121.  The Commissioner of the Competition Bureau (the "Commissioner") is responsible for the 
administration and enforcement of the Competition Act  and three labelling statutes. Adjudication of 
non-criminal matters (i.e., "civil matters"), such as mergers and abuse of dominance, is initiated by the Commissioner filing an application with the Competition Tribunal, a quasi-judicial federal 
tribunal, for an interim or remedial order, or the courts in the case of deceptive marketing 
practices. Evidence in criminal investigations, such as cartel offences and false or misleading representations, is referred to the Public Prosecution Service of Canada, which then makes an 
independent evaluation of whether prosecution of the matter before the courts is in the public 
interest. Private parties can also seek leave to initiate proceedings before the Competition Tribunal for certain reviewable trade practices. The legislation provides the Commissioner, and to a lesser 
extent private parties, with the ability to settle civil violations by registering consent agreements 
with the Competition Tribunal. The Public Prosecution Service of Canada can also settle criminal matters through guilty plea and/or prohibition order arrangements subject to court approval.  
3.122.  According to its 2014-15 Annual Plan, the Co mpetition Bureau has set out four priorities 
for 2014-15: applying effective and integrated enfo rcement and administration of the Competition 
Act and labelling statutes; increasing competition promotion efforts to advance a culture of compliance and competition advocacy; aligning with and delivering on Government of Canada 
priorities; and, increasing organizational synergies through its people, planning and systems.  
3.123.  A range of civil and criminal sanctions are available under the Competition Act depending 
on the provision in question; a number of potential penalties or outcomes are possible 
(Table 3.18). 
3.124.  Most businesses and sectors of the ec onomy are subject to the Competition Act. The 
Competition Act also applies to Crown corporations engaged in commercial activities in actual or potential competition with other businesses. Notwithstanding the broad application of the 
Competition Act, exemptions to its application do exist under the Competition Act itself and other WT/TPR/S/314 • Canada 
 
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  federal statutes. These include, but are not limited to, exemptions for certain business activities 
(e.g. securities underwriting, amateur sport and collective bargaining), proposed merger transactions involving a federally-regulated financial institution where the Minister of Finance has certified the merger to be in the public interest, a similar exemption for mergers involving a 
transportation undertaking where the Minister of Transport has certified the merger to be in the 
public interest, exemptions to address temporary emergencies and commitments in international agreements as well as a variety of other Compet ition Act specific exemptions to address issues 
such as affiliation between businesses, efficiencies, the application of intellectual property laws as 
well as the regulated conduct defence. Also mergers of transportation undertakings that are approved by the Governor-in-Council upon recommendation of the Minister of Transport are not subject to certain provisions of the Competition Act. 
Table 3.18 Overview of the Competition Act provisions  
Provision Conduct Penalty/Outcome 
Mergers Notification and/or pre-notification 
(Civil) Prohibition orders, divesture 
orders, dissolution and other 
remedial orders, consent agreements 
Conspiracy Criminal Substantial fines, prison time, 
prohibition orders, and civil 
damages awards 
Bid-rigging Criminal Substantial fines, prison time, 
prohibition orders, and civil damages awards 
False or misleading 
representations Criminal Substantial fines, prison time, 
prohibition orders, and civil 
damages awards 
Competitor agreements Reviewable (Civil) Prohibition order, corrective 
notices, administrative monetary penalties, restitution, consent agreements 
Misrepresentations to the public Reviewable (Civil) Prohibition orders, other remedial 
orders on consent, consent 
agreements 
Abuse of dominance Reviewable (Civil) Prohibition and other remedial 
orders, administrative monetary penalties, consent agreements 
Price maintenance Reviewable (Civil) Prohibition order, order to accept a 
person as a customer, consent 
agreements 
Refusal to deal Reviewable (Civil) Orders to accept a person as a 
customer, consent agreements 
Tied selling Reviewable (Civil) Prohibition order, orders to 
compensate, and administrative 
monetary penalties 
Exclusive dealing Reviewable (Civil) Prohibition order, orders to 
compensate, and administrative monetary penalties 
Vertical market restriction 
(Exclusive dealing, tied selling 
and market restriction) Reviewable (Civil) Prohibition order and other 
remedial orders, consent 
agreements 
Source: WTO Secretariat, based on the Competition Act, and information provided by the Canadian 
authorities. 
3.125.  During 2010-14, the number of merger examinations has remained steady at about 
230 per year, whereas other examinations fluctuated, but slightly increased over the period. Actions with respect to mergers involved the most examinations (Table 3.19). 
Table 3.19 Competitio n statistics, 2010/14 
(Number of cases) 
 2010/11 2011/12 2012/13 2013/14 
Merger Examinations  
 Examinations commenced 236 228 226 230 
 Examinations concluded 228 221 232 233 
 Concluded with issues under the Act 5 2 4 8 WT/TPR/S/314 • Canada 
 
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   2010/11 2011/12 2012/13 2013/14 
 Before the Tribunal or Courts 0 2 1 1 
 Other Tribunal or Court Procedures 0 0 1 n.a. 
Other Examinations  
Inquiries commenced 7 11 14 16 
Examinations in progress 62 31 56 104 
Examinations commenced 40 18 40 40 
Examinations concluded 38 17 32 28 
Matters where charges were laid 6 6 3 n.a. 
Matters with criminal orders 0 6 6 n.a. 
Source: Competition Bureau, Annual Reports. 
3.3.3.2  International Cooperation 
3.126.  Canada's Competition Bureau's Internationa l Affairs division works to support enforcement 
by building relationships with other competition agencies. The division negotiates competition 
related cooperation instruments with international counterparts. It also leads 
Canada's participation in international organisations related to competition law and policy and negotiates competition matters in free trade agreements. There are currently a number of international agreements or frameworks in place to aid on competition matters (Table 3.20). 
Moving forward, the Bureau intends to put greater focus on cooperation with emerging 
economies.
91 
3.127.  The Competition Bureau works frequently with its international counterparts to fulfill its 
mandate to effectively enforce the Competition Act  and ensure that Canadian consumers and 
businesses prosper in a competitive and innovative marketplace. Since the last review, a new cooperation instrument has been signed with India with respect to cooperation on competition 
policy enforcement. The Memorandum of Unde rstanding with India sets out cooperation 
parameters, such as keeping the other party informed of significant developments, sharing law enforcement and policy experience, working toge ther on technical cooperation activities, and 
coordinating and notifying enforcement activities subject to certain parameters. It also has 
provisions on confidentiality of information. As part of the implementation of existing cooperation 
instruments with its United States counterparts, the Competition Bureau also issued joint best practices on cooperation in merger investigations with the United States Federal Trade Commission 
and the United States Department of Justice Antitrust Division in 2014. 
3.128.  Furthermore, Canada pursues competition matters through the negotiation of its free trade 
agreements. Of the five free trade agreements nego tiated during the review period, three contain 
sections on competition. These sections generally promote the following principles: adopting and 
maintaining measures to proscribe anticompetitive business conduct; ensuring enforcement of competition law is consistent with the principles of non-discrimination, transparency and procedural fairness; cooperating and coordinating among competition authorities; and promoting 
understanding and discussion. These three agreements  state that cooperation instruments shall be 
negotiated between the competition authorities. In addition to these initiatives, the Competition Bureau is also currently negotiating cooperation instruments with the People's Republic of 
China's three antitrust agencies: the Ministry of Commerce, the State Administration for Industry 
and Commerce, and the National Development and Reform Commission in an effort to facilitate future communication and collaboration between the agencies.  
                                               
91 Competition Bureau (2014). WT/TPR/S/314 • Canada 
 
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  Table 3.20 International Agreements and Arrangements, December 2014  
Partner Instrument Date 
Australia and 
New Zealand Cooperation Arrangement Between the Commissioner of 
Competition (Canada), the Australian Competition and Consumer Commission and the New Zealand Commerce Commission Regarding the Applic ation of their Competition and 
Consumer Law October 2000 
Brazil Cooperation Arrangement Between the Commissioner of 
Competition, Competition Bure au of the Government of 
Canada, and the Council for Econ omic Defense, the Secretariat 
of Economic Law of the Ministry of Justice, and the Secretariat 
for Economic Monitoring of th e Ministry of Finance of the 
Government of the Federative Re public of Brazil Regarding the 
Application of their Competition Laws 25 April 2008 
Chile Memorandum of Understandin g Between the Commissioner of 
Competition (Canada) and the Fiscal Nacional Economico 
(Chile) Regarding the Applicatio n of their Competition Laws 17 December 2001 
European Union Agreement between the Government of Canada and the 
European Communities Regardin g the Application of their 
Competition Laws 17 June 1999 
India Memorandum of Understandin g Between the Commissioner of 
Competition, Competition Bureau  Canada and the Competition 
Commission of India on Cooperation in the Application of Competition Laws 1 December 2014 
Japan Agreement Between the Government of Canada and the 
Government of Japan Concerning Cooperation on 
Anticompetitive Activities 6 September 2005 
Republic of Korea Cooperation Arrangement Between the Commissioner of 
Competition, Competition Bureau of the Government of Canada 
and the Fair Trade Commission of the Government of the Republic of Korea Regarding the Application of their Competition and Consumer Laws 4 May 2006 
Mexico Agreement between the Government of Canada and the 
Government of the United Mexican States Regarding the 
Application of their Competition Laws 2001 
Chinese Taipei Memorandum of Understanding Between the Taipei Economic 
and Cultural Office in Canada and the Canadian Trade Office in 
Taipei Regarding the Applic ation of Competition Laws 22 June 2009 
United Kingdom Cooperation Arrangement Between the Commissioner of 
Competition (Canada) and Her Ma jesty's Secretary of State for 
Trade and Industry and the Office of Fair Trading in the United 
Kingdom Regarding the Applicat ion of their Competition and 
Consumer Laws 14 October 2003 
United States Agreement between the Government of Canada and the 
Government of the United States of America on the Application of Positive Comity Principles to the Enforcement of their Competition Laws Agreement between the Government of Canada and the Government of the United States of America Regarding the Application of Competition and Deceptive Marketing Practices 
Laws Cooperation Arrangement between the Commissioner of Competition, Competition Bure au of the Government of 
Canada, and the United States Postal Inspection Service, Regarding the Application of  their Deceptive Marketing 
Practices Laws  U.S. — Canadian Task Force on Cross-Border Deceptive Marketing Practices Canada-U.S. Merger Working Group — Best Practices on 
Cooperation in Merger Investigations 2004 
   1 August 1995    28 March 2008      10 September 1996  25 March 2014 
Source: Competition Bureau online information. Viewed at : http://www.competitionb ureau.gc.ca/ eic/site/cb-
bc.nsf/eng/h_00128.html. 
3.3.3.3  Price Controls 
3.129.  Canada, in general, does not impose price controls on most products. An exception to this 
is the control of the prices of patented, prescrip tion drugs through the Patented Medicine Prices WT/TPR/S/314 • Canada 
 
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  Review Board (PMPRB). In Canada, both the federal and provincial governments affect the prices 
of medicines. The federal government regulates pr ices of patented medicines by its use of the 
Patent Act whereas the provincial governments affect the prices of medicines through their drug reimbursement programmes. These roles are based on Canada's constitutional division of powers. 
The Patented Medicine Prices Review Board (PMPRB ) is an independent quasi-judicial federal body 
established in 1987 that protects the interests of Canadian consumers by ensuring that the prices 
of patented medicines sold in Canada are not excessive. It does this by reviewing the prices that 
patentees charge for each individual patented drug product in Canadian markets. If a price is 
found to be excessive, the Board can hold public hearings and order price reductions and/or the 
offset of excess revenues. The PMPRB regulates the "factory gate" prices and does not have jurisdiction over prices charged by wholesalers or pharmacies, or over pharmacists' professional 
fees. 
3.130.  In 2013, there were 115 new patented drugs submitted to the PMPRB, of which 93 (81% 
of the total) were found to be within the guidelines, 7 (6%) appeared to exceed the guidelines but 
did not trigger investigation, and 15 (13%) appear ed to exceed the guidelines and led to the 
commencement of investigations. The figures for 2013 are typical of historical trends; whereby approximately 82% of drugs fall within the guide lines and the remaining 18% result in a review, 
investigation, or voluntary compliance undertakings.
92  
3.131.  On 9 December 2014, the Minister of Indust ry introduced the Price Transparency Act in the 
Parliament of Canada, however as of February 2015 the proposed legislation has not been approved.  
3.3.4  State trading, state-owne d enterprises, and privatization 
3.3.4.1  Stated trading enterprises 3.132.  In 2012 and 2014 Canada notified the WTO of three federal and 13 provincial entities 
which it considers as state-trading enterprises (STEs) pursuant to the provisions of 
Article XVII: 4(a) of GATT 1994 and paragraph 1 of the Understanding on the Interpretation of 
Article XVII. One federal and the 13 provincial entities have special privileges with respect to sales 
or marketing abroad of certain products and the other two with respect to importation. The 
estimated impact of these STEs on the overall tr ade of Canada appears to be minimal as they 
represent a small percentage of overall trade (Table 3.21). 
Table 3.21 State-trading enterprises, 2014  
Entity Function Amount of trade 2013 (imports 
or exports as appropriate) 
impacted 
(US$ million or Can$ million) As a % of 
total trade 
2013 
Canadian Dairy 
Commission Imports of butter are 
subject to control and the Commission has exclusive or special privileges for butter imports. 23.1 (US$) 0% 
Canadian Wheat Board The Board had special 
authority with respect to 
marketing and sales of 
wheat and barley grown in 
certain provinces, however  
as of August 2012, the 
CWB no longer has an 
export monopoly, but 
retains a Government 
borrowing guarantee. .. .. 
Freshwater Fish 
Marketing Corporation The Corporation is 
concerned with marketing, inter-provincial trade, and exportation of freshwater fish from certain provinces. 52.3 (Can$) 0% 
                                               
92 Patented Medicine Price Review Board (2014). WT/TPR/S/314 • Canada 
 
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  Entity Function Amount of trade 2013 (imports 
or exports as appropriate) 
impacted 
(US$ million or Can$ million) As a % of 
total trade 
2013 
Provincial and 
Territorial Liquor 
Control Authorities The Liquor Control 
Authorities have control 
over the importation and 
inter-provincial trade of 
alcoholic beverages. 3,488 (US$) 0.8% 
.. Not available. Since the monopoly changed in August 2012, the CWB's marketings have fallen and 
are no longer being publically reported. 
Source: WTO documents G/STR/N/14/CAN, 6 July 2012; and G/STR/N/15/CAN, 8 July 2014. UNSD 
Comtrade database, and information prov ided by the Canadian authorities. 
3.3.4.2  Federal Crown Corporations 
3.133.  State-owned enterprises in Canada are known as Crown corporations and are wholly 
owned by the federal or provincial governments although they are often structured like private 
companies. Crown corporations are still under government control but have more autonomy 
compared to government departments. Crown corp oration operations in Canada are significant, 
with federal crown corporations accounting for approximately 0.7% of GDP and provincial crown 
corporations accounting for 2.7% of GDP (see Se ction 3.3.4.4 for the discussion on provincial 
crown corporations).93 
3.134.  Crown corporations are subject to the governance and accountability framework set out in 
the Financial Administration Act (FAA), and in some cases, their own constituent Acts. There are 
both self-financing Crown corporations, as well as those which receive government appropriations. 
Most Crown corporations are required to have th eir budgets approved annually by the Treasury 
Board (TB). The Governor in Council appoints their boards of directors and, for a number of Crown 
corporations, their President and Chief Executive Officers. In 2013, changes were made to the FAA 
pursuant to the budget bill giving the Governor in Council the authority to direct a Crown corporation to seek the TB's approval of collective bargaining mandates for Crown corporations, as 
well as the authority to direct a Crown corporation to seek the TB's approval before the corporation 
fixes the terms and conditions of employment of its non-unionized and management employees.  
3.135.  As of December 2014, Canada had 45 federal crown corporations operating in 13 market 
segments. Crown corporations operate in a number of sectors, but many are concentrated in the 
transportation, heritage, and finance sectors. A nu mber of them have mandates relating to trade 
matters such as Export Development Canada, the Canadian Tourism Commission, and the Bank of Canada. In terms of assets, the largest crown corporations are the Canadian Mortgage and 
Housing Corporation, the Canada Pension Plan Investment Board, and the Bank of Canada 
(Table 3.22). 
Table 3.22 Crown Corporations, 2014  
Crown 
corporation and 
sector Mandate Assets (Dec. 2012) 
Can$ million 
Agriculture  
Canadian Dairy 
Commission To provide efficient producers of milk and cream with the 
opportunity of obtaining a fair  return for their labor and 
investment and to pr ovide consumers of dairy products with a 
continuous and adequate supply of dairy products of high 
quality. 117.5 
Farm Credit 
Canada To enhance rural Canada by providing specialized and 
personalized business and financ ial services and products to 
farming operations, including fami ly farms, and businesses in 
rural Canada, including small and medium-sized businesses, 
that are related to farming. The primary focus of the activities 
of the corporation shall be on farming operations, including 
family farms. 25,925.2 
                                               
93 Crisan and McKenzie (2013). WT/TPR/S/314 • Canada 
 
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  Crown 
corporation and 
sector Mandate Assets (Dec. 2012) 
Can$ million 
Citizenship, Multiculturism  
Canadian Race 
Relations Foundation To facilitate throughout Canada the development, sharing, and 
application of knowledge and expertise to contribute to the elimination of racism and all other forms of racial discrimination in Canadian society. 24.6 
Employment and Social Development  
Canada Mortgage 
and Housing Corporation CMHC's mandate is to promote the construction of new houses, 
the repair and modernization of existing houses, and the improvement of housing and living conditions. 292,040.0 
Finance  
Bank of Canada The mandate of the Bank is to regulate credit and currency in 
the best interests of the economic life of the nation, to control and protect the external value of the national monetary unit 
and to mitigate by its influence fluctuations in the general level 
of production, trade, prices an d employment, so far as may be 
possible within the scope of monetary action, and generally to promote the economic and financial welfare of Canada. The Bank acts as fiscal agent of the Government of Canada. The 
Bank has the sole right to issue notes. 77,807.3 
Canada Deposit 
Insurance 
Corporation To provide insurance against the lo ss of part or all of deposits, 
to promote and otherwise contribute to the stability of the 
financial system in Canada, and to pursue the foregoing for the 
benefit of persons having deposits with member institutions 
and in such a manner as will minimize the exposure of the 
Corporation to loss. 2,578.1 
Canada 
Development Investment Corporation To assist in the creation or  development of businesses, 
resources, properties and indu stries of Canada; to expand, 
widen and develop opportunities fo r Canadians to participate in 
the economic development of Ca nada through the application 
of their skills and capital in an y activities carried on by the 
Corporation; to invest in the shares or securities of any 
corporation owning property or carrying on business related to 
the economic interests of Canada; to invest in ventures or enterprises, including the acquisition of property, likely to benefit Canada; and to carry out all activities in the best 
interests of Canada, operating in a commercial manner. 4,894.6 
Canada Pension 
Plan Investment 
Board To assist the Canada Pension Plan in meeting its obligations to 
contributors and beneficiaries under the Canada Pension Plan; 
to manage any amounts transfe rred to it under the Canada 
Pension Plan, and its right, title or interest in any designated 
securities, in the best intere sts of the contributors and 
beneficiaries under that  Act; and to invest  its assets with a 
view to achieving a maximum rate of return, without undue 
risk of loss, having regard to the factors that may affect the 
funding of the Canada Pension Plan and the ability of the 
Canada Pension Plan to meet its financial obligations on any 
given business day.  193,926.0 
PPP Canada Inc. PPP Canada's mandate is to improve the delivery of public 
infrastructure by achieving be tter value, timeliness, and 
accountability to taxpayers through public private partnerships (P3s). 679.7 
Royal Canadian 
Mint To mint coins in anticipation of profit and to carry out other 
related activities. 370.7 
Fisheries  
Freshwater Fish 
Marketing 
Corporation To purchase all fish lawfully fished and offered for sale, to 
create an orderly market, to pr omote international markets, to 
increase the fish trade, and to  increase returns to fishers. 48.3 
Foreign Affairs, Trade, Development  
Canadian 
Commercial 
Corporation To assist in the development of trade between Canada and 
other nations and to assist persons in Canada to obtain goods 
and commodities from outside Cana da and to dispose of goods 
and commodities that are available for export from Canada. 1,220.9 WT/TPR/S/314 • Canada 
 
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  Crown 
corporation and 
sector Mandate Assets (Dec. 2012) 
Can$ million 
Export 
Development Canada EDC's mandate is to support and de velop, directly or indirectly, 
Canada's export trade and Canadian capacity to engage in that trade, as well as respond to international business opportunities. 36,233.0 
International 
Development 
Research Centre The International Development Research Centre (IDRC) helps 
developing countries find soluti ons to problems. It encourages, 
supports, and conducts research  in the world's developing 
regions and on developing worl d and global challenges more 
broadly. In doing so, IDRC seeks to apply new knowledge 
towards the economic and social improvement of developing 
regions. IDRC's programmes pr omote innovation to increase 
food security, stimulate economic growth, secure the future of 
children and youth, notably by improving health, ensure 
stability and security, and advance democracy. 134.5 
National Capital 
Commission To prepare plans for and as sist in the development, 
conservation, and improvement of  Canada's Capital Region in 
order that the nature and character of the seat of the Government of Canada may be in accordance with its national significance. 725.6 
Industry  
Business 
Development Bank of Canada The purpose of the Bank is to support Canadian 
entrepreneurship by providing financial and management services and by issuing securities  or otherwise raising funds or 
capital in support of those services. In carrying out its activities, the Bank must give a particular consideration to the 
needs of small and medium-sized enterprises. 17,912.8 
Canadian Tourism 
Commission To sustain a vibrant and profitab le tourism industry in Canada; 
to market Canada as a desirable tourist destination; to support 
a cooperative relationship between the private sector and the 
governments of Canada, the provin ces, and the territories with 
respect to Canadian tourism; and to provide information about 
Canadian tourism to the private sector and to the federal, 
provincial, and territorial governments. 23.3 
Standards Council 
of Canada To oversee Canada's standard ization system by promoting 
efficient and effective voluntary standardization in Canada, 
when standardization is not expressly provided for by law, in 
order to advance the national economy, support sustainable development, benefit the health, safety, and welfare of workers and the public, assist and protect consumers, facilitate 
domestic and international trade, and further international cooperation in relation to standardization. 8.4 
Infrastructure  
The Jacques-
Cartier and Champlain Bridges Inc. Ensure a safe passage for us ers through the management, 
maintenance, and rehabilitatio n of our infrastructure by 
optimizing traffic flow and respecting the environment.  
Natural Resources  
Atomic Energy of 
Canada Limited AECL today has three key aspects of its Value Proposition that 
have a national impact: • As an advisor to, and agent of, the Government of Canada  for public po licy purposes; 
• As an enabler of business innovation and technology  transfer; • As a generator of highly qualified people. 1,151.2 
Public Works and Government Services  
Canada Lands 
Company Limited Through its subsidiaries, to ensure the commercially oriented, 
orderly disposition of selected surplus federal real properties 
with optimal value to the Canadian taxpayer and the holding of 
certain properties. 490.4 
Defence 
Construction 
(1951) Limited To deliver and maintain infra structure and environmental 
projects and services, and provide full lifecycle support for 
infrastructure and environmenta l assets, required for the 
defence of Canada. 62.3 WT/TPR/S/314 • Canada 
 
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  Crown 
corporation and 
sector Mandate Assets (Dec. 2012) 
Can$ million 
Transport  
Pilotage 
Authorities: 
- Atlantic 
- Great Lakes 
- Laurentian 
- Pacific To establish, operate, maintain, and administer, in the interest 
of safety, an efficient pilotage service within the designated 
waters set out in respect of each Authority. 14.9 (Atlantic) 
7.1 (Great 
Lakes) 
33.3 
(Laurentian) 
30.1 (Pacific)  
 
Blue Water Bridge 
Authority To operate, maintain, and repair the Canadian halves of the 
two bridges spanning the St. Clair River between Point Edward (Sarnia), Ontario, and Port  Huron, Michigan, and the 
approaches and structures. 248.7 
Canada Post 
Corporation To establish and operate a postal service for the collection, 
transmission and delivery of me ssages, information, funds and 
goods both within Canada and between Canada and places 
outside Canada, and to conduct its operations on a 
self-sustaining financial basis while providing a standard of 
service that will meet the need s of the people of Canada and 
that is similar with respect to communities of the same size. 7,018.0 
Canadian Air 
Transport Security Authority The Canadian Air Transport Security Authority (CATSA) is 
responsible for the delivery of effective and efficient screening 
of persons who access aircraft or restricted areas through 
screening points, the property in their possession or control, and the belongings or baggage that they give to an air carrier for transport. 350.6 
The Federal Bridge 
Corporation 
Limited To provide users with safe and effective infrastructures through 
its two wholly-owned subsidiaries, The Seaways International 
Bridge Corporation, Ltd., and St . Mary's River Bridge Company, 
as well as the Canadian facilities of the Thousand Islands 
International Bridge. 417.7 
Marine Atlantic 
Inc. To provide a safe, environmenta lly responsible, and quality 
ferry service between the Island of Newfoundland and the Province of Nova Scotia in a reliable, courteous, and cost-effective manner. 325.7 
Ridley Terminals 
Inc. To provide continuous, high-quality, and high-performance rail 
car unloading, product storage,  and loading services as a 
marine terminal and to oper ate in a commercial manner. 348.5 
VIA Rail Canada 
Inc. To offer a national passenger rail transportation service that is 
safe, secure, effici ent, reliable, and environmentally 
sustainable, and that meets the needs of travelers in Canada. 1,316.8 
Treasury Board  
Public Sector 
Pension Investment Board To manage the amounts transferred under the Canadian Forces 
Superannuation Act, the Public Service Superannuation Act, 
and the Royal Canadian Mounted Police Superannuation Act 
(the "Acts") in the best interests of the contributors and beneficiaries under those Acts and to invest the assets with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the funding, policies and requirements of the pension plans established under the Acts and the ability of those pension plans to meet their financial obligations. n.a. 
Canadian Heritage  
Canada Council for 
the Arts To foster and promote the study, enjoyment, and production of 
works in the arts. 302.7 
Canadian 
Broadcasting 
Corporation To inform, enlighten, and entert ain; to contribute to the 
development of a shared national consciousness and identity; 
to reflect the regional and cultur al diversity of Canada; and to 
contribute to the development of Canadian talent and culture. 1,688.4 
Canadian Museum 
for Human Rights To explore the subject of human rights, with special but not 
exclusive reference to Canada, in order to enhance public understanding of human rights, to promote respect for others, 
and to encourage reflection and dialogue. 321.7 
Canadian Museum 
of History To enhance Canadians' knowledge, understanding and 
appreciation of events, experiences, people and objects that 
reflect and have shaped Canada's  history and identity and also 
to enhance their awareness of world history and cultures. 321.0 WT/TPR/S/314 • Canada 
 
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  Crown 
corporation and 
sector Mandate Assets (Dec. 2012) 
Can$ million 
Canadian Museum 
of Immigration at Pier 21 To explore the theme of immigr ation to Canada in order to 
enhance public understanding of the experiences of immigrants as they arrived in Canada, of the vital role immigration has played in the building of Cana da and of the contributions of 
immigrants to Canada 's culture, econom y and way of life. 23.8 
Canadian Museum 
of Nature To increase, throughout Canada and internationally, interest in, 
knowledge of, and appreciation and respect for the natural 
world by establishing, maintainin g, and developing for research 
and posterity a collection of natural history objects, with 
special but not exclusive reference to Canada, and by 
demonstrating the natural worl d, the knowledge derived from 
it, and the understanding it represents. 217.3 
National Arts 
Centre Corporation To operate and maintain the Centre, to develop the performing 
arts in the National Capital Re gion and to assist the Canada 
Council for the Arts in the deve lopment of the performing arts 
elsewhere in Canada. 87.0 
National Gallery of 
Canada To develop, maintain, and make known, throughout Canada 
and internationally, a collection of  works of art, both historic 
and contemporary, with special but not exclusive reference to 
Canada and to further knowledge, understanding, and 
enjoyment of art in general among all Canadians. 117.7 
National Museum 
of Science and Technology To foster scientific and technological literacy throughout 
Canada by establishing, maintaining, and developing a collection of scientific and technological objects, with special but not exclusive reference to Canada, and by demonstrating the products and processes of science and technology, as well as their economic, social, and cultural relationships with society. 77.2 
Telefilm Canada To foster and promote the development of the audiovisual 
industry in Canada. 57.3 
n.a. Not applicable. 
Sources: Treasury Board Canada online information. Vi ewed at: http://www.tbs-sct.gc.ca/reports-rapports/cc-
se/corporate-societe/ccp-pse-eng.asp; Treasury Board Canada online information. Viewed at: 
http://www.tbs-sct.gc.ca/reports-rapports/cc-se/corporate-societe/ccp-pse-eng.asp; and Treasury Board Canada online information. Viewed at: h ttps://tbs-sct.gc.ca/repo rts-rapports/ cc-se/crown-
etat/efp-esf-eng.asp?fiscalQuarter=2012-12-31. 
3.3.4.3  Other entities that operate with federal government participation 
3.136.  Canada has other structures, known as mixed enterprises, joint enterprises, and 
shared-governance corporations, whereby the federal government maintains an interest or is 
involved in oversight. In the case of mixed enterp rises, part of the shares is owned by the Federal 
Government and the rest by the private sector, whereas for joint enterprises, there is a part owned by the Federal Government and the rest by  another level of government. Share-governance 
corporations are corporate entities where the government has the right to nominate members to 
the governing body.  
3.137.  Currently, there are two joint enterprises, the Lower Churchill Development Corporation 
Limited and North Portage Development Corporation. There are 85 shared-governance 
corporations, operating in most sectors of the economy, but mostly concentrated in the transport sector, involving port or airport authorities.
94 There is also the Canadian Wheat Board and the 
Internal Trade Secretariat Corporation that have trade-related functions. 
3.3.4.4  Provincial Crown corporations and government enterprises 
3.138.  In addition to federal crown corporations  there are crown corporations at the provincial 
level. There is no comprehensive government source listing all provincial crown corporations, but it 
is estimated that there are approximately 200.95 Nonetheless, the provincial crown corporations 
                                               
94 Viewed at: http://www.tbs-sct.gc.ca/reports-rappo rts/cc-se/corporate-societe/ocip-pasl-eng.asp for 
the full listing of shared-governance corporations. 
95 Crisan and McKenzie (2013). WT/TPR/S/314 • Canada 
 
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  are significant, accounting for approximately 2.7% of GDP, and they operate in many sectors of 
the economy, but in particular in the areas of energy and power generating. Many of the largest 
provincial crown corporations such as Hydro-Quebec, Ontario Power Generation, and B.C. Hydro and Power, have annual revenues exceeding those of  most of the federal crown corporations, thus 
the provincial crown corporations play a larger ro le in the economy compared to the federal crown 
corporations
96 (Table 3.23). 
Table 3.23 Ten largest provincial crown corporations, 2012 Report  
Crown corporation Industry Revenue (Can$ million) 
Hydro-Quebec Power generation 12,392 
Caisse de dépôt et placement Finance 8,398 
Ontario Power Generation Power generation 8,398 
Hydro One Power generation 5,486 
Insurance Corp. of B.C Insurance 4,165 
B.C. Hydro & Power Power generation 4,078 
Manitoba Hydro-Electric Board Power generation 2,037 
Saskatchewan Power Corp Power generation 1,865 
ATB Program Finance 1,357 
Alberta heritages savings Banking 1,152 
Source: Globe and Mail, 2012 Report online information. Viewed at: http://www.theglobeandmail.com/ 
report-on-business/rob-magazine/top-1000/2012-rankings-for-federal-and-provincial-crown-corporations/article4360532/. 
3.139.  A category of enterprises whereby the Government maintains control but operates in the 
market place with other private firms is categorised as a government business enterprise for statistical reporting purposes in Canada. At the provincial level, most of the provincial crown 
corporations are considered provincial governme nt business enterprises. When comparing federal 
government enterprises with provincial governme nt enterprises, both which approximate federal 
and provincial crown corporations respectively, the revenues of provincial government enterprises 
far exceeds the revenues of federal government enterprises, although the assets of federal 
government enterprises are larger than those of the provinces. Revenues of provincial government 
enterprises have gradually increased during 2009-12, while those of federal enterprises remained 
flat (Table 3.24). 
3.140.  There are currently no plans to privatize any federal crown corporation, provincial crown 
corporation, or government enterprise.  
Table 3.24 Federal and provincial go vernment business enterprises, 2009-12  
(Can$ million) 
 2009 2010 2011 2012 
Federal government business enterprises  
Revenues 37,826 36,169 38,491 37,556 
Expenses 34,191 32,857 35,019 33,578 
Assets 484,998 491,030 504,207 n.a. 
Provincial and territorial government business enterprises  
Revenues 77,372 78,105 79,960 81,319 
Expenses 67,625 69,005 69,620 69,341 
Assets 247,822 255,616 272,342 n.a. 
Source: Statistics Canada, CANSIM Tables 385-0039, 385-0030, 385-0031. 
3.3.5  Government procurement 
3.3.5.1  Overview 
3.141.  Government procurement in Canada at the federal level amounts to approximately 
Can$15 billion, and approximately 350-400 thousand transactions annually. At the provincial and 
territorial level, government procurement is estimated at approximately Can$20 billion per year.97 
                                               
96 Online information. Viewed at: http://www.theglobeandmail.com/report-on-business/rob-
magazine/top-1000/2012-rankings-for-federal-and-provincial-crown-corporations/article4360532/. 
97 MARCAN online information. Viewed at: http://www.marcan.net/en/statistics.php. WT/TPR/S/314 • Canada 
 
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  3.142.  Federal procurement policy is esta blished by the Treasury Board of Canada98 pursuant to 
the Financial Administration Act (FAA), and actual procurement is conducted by individual government entities as well as two common service organizations, Public Works and Government Services Canada and Shared Services Canada. De partments award the vast majority of contracts 
as measured by the number of transactions; ho wever, Public Works and Government Services 
Canada awards a far greater dollar value of contracts. The second common service organization Shared Services Canada, is specialized in information technology procurement. The policy 
objective for government procurement is to acquire goods and services and to carry out 
construction in a manner that enhances access, competition and fairness and results in best value or, if appropriate, the optimal balance of overall benefits to Canada and the Canadian people. It further provides that procurement should be carried  out to ensure the pre-eminence of operational 
requirements, stand the test of public scrutin y, support long-term industrial and regional 
development, and comply with Canada's obligations under domestic and international trade agreements. 
3.143.  Treasury Board procurement policy is set out in the Contracting Policy. The Contracting 
Policy governs procurement for the majority of federal departments and agencies. Furthermore, it sets out limits as to when departments may contract without seeking TB approval, which is 
dependent upon the contract type, value and solicitation method. 
3.144.  "Procurement" includes the purchase of goods, services, and construction. Generally the 
federal government purchases about the same value of goods and services, whereas construction procurement is about one-sixth the value of goods and services purchases. During the review 
period, government procurement fluctuated for g oods and services, with an overall slight total 
decline from Can$16.2 billion in 2010 to Can$14.6 billion in 2013 (Table 3.25). 
Table 3.25 Overview of procurement by type, 2010-13  
(Can$ thousand) 
 2010 2011 2012 2013 
Goods     
 Number 163,669  258,491 219,477 198,608 
 Value 5,465,732  7,182,258 6,982,484 5,872,511 
Services     
 Number 140,769  171,098 146,452 143,876 
 Value 9,441,613  6,929,622 7,064,684 7,652,770 
Construction     
 Number 16,241  15,208 20,672 20,740 
 Value 1,296,137  1,921,878 1,102,035 1,026,876 
Total     
 Number 320,679  444,797  386,601  363,224 
 Value 16,203,482  16,033,758  15,149,203  14,552,157 
Sources: Treasury Board of Canada online  information. Viewed  at: http://www.tbs-
sct.gc.ca/pubs_pol/dcgpubs/ con_data/par-12-rpa-eng. asp; and http://www.tbs-
sct.gc.ca/pubs_pol/dcgpubs/con_data/siglist-eng.asp. 
3.3.5.2  Developments 
3.145.  The major developments for procurement during the period included changes to the 
Contracting Policy, changes to regulations, an d the issuance of Contracting Policy Notices 
(Table 3.26). 
                                               
98 The Treasury Board is a statutory Cabinet commit tee, responsible for the federal civil service and 
empowered under the Federal Administration Act to esta blish government procuremen t policy. It is composed 
of Ministers of the Crown. The Treasury Board Secretariat is the administrative arm of the Treasury Board, with 
a mandate to support the Treasury Board. WT/TPR/S/314 • Canada 
 
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  Table 3.26 Changes to procurement framework and notices, 2011-14  
Date Instrument Change 
14 Nov. 2014 Contracting Policy Sets a new exceptional contracting limit for National Defence. 
18 July 2014 Contracting Policy Sets a new, exceptional contracting limit for Public Works and 
Government Services Canada; an exceptional contracting 
limit for Shared S0ervices Canada; and removal of 
time-limited/expired exceptional limits. 
17 April 2014 WTO GPA Notified and advised stakeholders that the revised GPA had 
come into force. 
20 Dec. 2013 Threshold updates Updated thresholds under the various trade agreements. 
9 Sept. 2013 Guidelines on the 
Proactive Disclosure of Contracts Established new reporting measures. 
19 Dec. 2011 Threshold updates Communicated updated thresholds under the various trade 
agreements. 
31 Oct. 2011 Government Contracts 
Regulations (GCRs) Amendment to retain the independence of the Agents of 
Parliament from the operat ions of the Government. 
4 Oct. 2011 Government Contracts 
Regulations (GCRs) Amendment to: Prohibit the payment of contingency fees to 
consultant lobbyists; impose an obligation to declare that 
bidders have not been convicted of certain criminal offenses; 
secure the contractor's consent to publicly disclose basic 
information about a procurement contract; and require a 
contractor to return any advance payments; and secure the 
contractor's consent that the Government may cancel the 
contract in the event of non-compliance with a deemed term. 
18 Aug. 2011 Canada-Colombia FTA Advised stakeholders that the Canada-Colombia Free Trade 
Agreement had come into effect and highlighted some salient obligations. 
Source: Treasury Board of Canada online information. Viewed at: http://www.tbs-
sct.gc.ca/pubs_pol/dcgpubs/ContPolNotices/2014/14-05-eng.asp; and http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/con_data/siglist-eng.asp. 
3.146.  In 2011, a new common services organization was created for Information Technology 
procurement. Shared Services Canada (SSC) was established to standardize and consolidate certain administrative services, namely IT infras tructure services for email, data centers and 
network services. Later in 2013, SSC was also provided with the exclusive authority for the 
procurement of hardware and software, including security software for "work-place technology devices" (WPTDs) – also referred to as end-user devices. 
3.147.  In addition, the Department of Public Works and Government Services Act (DPWGS) has 
been amended to allow Public Works and Gove r n m e n t  S e r v i c e s  C a n a d a  ( P W G S C )  t o  p r o v i d e  
procurement and procurement services to other juri sdictions and organizations, such as provinces 
and territories, subject to receiving the approval of the Governor-in-Council, which can be 
requested either on a general or a specific basis.
99 
3.3.5.3  Legal framework and process 3.148.  The FAA is the main law on government procurement in Canada. It authorizes the Treasury 
Board of Canada to set procurement policy go vernment-wide and to issue regulations. The 
Government Contracts Regulations (GCRs) provide that all bids be publicly solicited except for a few limited circumstances, that include: a pressing emergency; where it is not in the public 
interest to solicit bids; where only one person is capable of performing the contract; and for 
contracts less than Can$25,000. The GCRs also ensu re administrative transparency, oversight and 
accountability by deeming certain terms to be expressly stated in contracts. 
3.149.  The procurement process involves four basic stages: 
• Pre-contractual phase—planning and definitional requirements; 
• Contractual phase—bid solicitation to contract award; 
• Contract administration phase—monitoring progress and payment; and 
• Post contractual phase—client satisfaction, audit, and file close-out. 
                                               
99 Online information viewed at Justice Laws webs ite. Department of Publ ic Works and Government 
Services Act, Section 16. Viewed at: http://laws-lois.justice.gc.ca/eng/acts/P-38.2/page-5.html. WT/TPR/S/314 • Canada 
 
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  3.150.  Canada distinguishes two types of procurement processes. Processes under Can$25,000 
are considered low-value procurement and may or may not follow competitive bidding. Suppliers are often selected through the Supplier Registration Information System when Standing Offers and Supply Arrangements are in place. For procur ement above Can$25,000, there are three basic 
types of solicitation methods: electronic bidding through a public notice, traditional competitive 
bidding, and advance contract award notices (ACAN). The ACAN process can be used when the contracting authority believes that only one supp lier is capable of performing the contract. When 
procurement is covered by a trade agreement, numerous procedural obligations apply, including 
restrictions on the use of limited tendering. 
3.151.  With respect to federal government procurement, in cases of disputes for procurements 
covered by trade agreements, bidders may challenge the procurement process through the 
Canadian International Trade Tribunal. If the Tribunal finds in favour of the complainant, there are 
a number of remedies possible, including issuing a new solicitation, re-evaluating the bids, awarding the contract to the complainant, or financially compensating the complainant for the loss. 
For contracts not subject to trade agreements, suppliers may turn to the Office of the Procurement 
Ombudsman to review complaints. The Pr ocurement Ombudsman Regulations (POR)
100 provide 
specifics on how the Procurement Ombudsman's authority is to be exercised. Provinces and 
Territories have established their own domestic review procedures for suppliers to challenge a 
procurement process in their respective jurisdictions. 
3.152.  Since 2006, Canada has a policy on Green Procurement in force. As part of its long-term 
goal to improve the environment and quality of life for Canadians, the policy aims to reduce 
environmental impacts by integrating environmental performance considerations in the 
procurement process. Thus, each department is responsible for implementing an effective approach that incorporates environmental performance.
101 
3.153.  Since 1996 Canada has maintained a strategy known as the Procurement Strategy for 
Aboriginal Business (PSAB), to foster aboriginal  business development through the use of federal 
procurement contracts. Under certain conditions, a federal government procurement contract is 
set-aside for aboriginal businesses. According to the most recent data available from 2011, 
government procurement set-asides under PSAB amounted to Can$85 million, approximately 0.5% of total federal procurement.
102 
3.154.  The majority of procurements above Ca n$25,000 are competitive with electronic bidding 
utilised the most; non-competitive bids make up less than 20% of the total. ACANs account for a 
relatively small share of the procurements compared to electronic and traditional bidding (Table 3.27). 
Table 3.27 Procurement by type of procedur e, all contracts above Can$25,000, 2010-13  
 2010 
No. 2010 
value 2011
No. 2011
value 2012
No. 2012
value 2013 
No. 2013 Value
Electronic 
bidding 7,014 5,804,495 6,944 5,340,530 9,018 4,442,583 8,311 4,207,974
Traditional 
competitive 7,078 1,479,155 20,176 2,398,184 15,249 2,229,283 14,823 2,593,938
ACANs 919 415,147 748 252,573 886 367,535 695 403,715
Amendments .. 5,562,147 .. 2,542,461 .. 4,592,097 .. 3,661,055
Total 
competitive 15,011  13,260,944  27,868 10,533,748 25,153 11,631,498  23,829 10,866,682
Non-
competitive 3,851 1,550,977 7,185 3,355,759 4,791 1,403,919 4,910 1,817,063
Amendments .. 258,132 .. 449,460 .. 778,329 .. 610,476
                                               
100 Procurement Ombudsman Regulations onlin e information. Viewed at: http://laws-
lois.justice.gc.ca/eng/regulations/SOR-2008-143/. 
101 Public Works and Government Services Canada online information. View ed at: http://www.tpsgc-
pwgsc.gc.ca/ecologisation-gr eening/achats-procurement/politique-policy-eng.html. 
102 Information provided by the Canadian authorities. WT/TPR/S/314 • Canada 
 
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   2010 
No. 2010 
value 2011
No. 2011
value 2012
No. 2012
value 2013 
No. 2013 Value
Total non-
competitive 3,851 1,809,109  7,185 3,805,219 4,791 2,182,248  4,910 2,427,529
Total 18,862  15,070,053  35,053 14,338,967 29,944 13,813,747  28,739 13,294,211
.. Not available. 
Source: Treasury Board of Canada online informatio n. Viewed at: http://www.tbs-sct.gc.ca/pubs_pol/dcg 
pubs/con_data/par-12-rpa-eng.as p; and http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/con_data/ 
siglist-eng.asp. 
3.3.5.4  WTO GPA and other agreements 
3.155.  Canada has been a member of the GPA since 1996 and also participated in the 
negotiations to revise the GPA. On 6 April 2014, the revised GPA came into force for Canada. At 
the federal level, there have been no substantial changes in Canada's schedule in the revised GPA. However, significant changes occurred at th e sub-federal level whereby all provinces and 
territories and 10 federal crown corporations are now included in Canada's GPA schedule. 
3.156.  As a result of the financial crisis  in 2009 and the U.S. implementation of the 
2010 American Recovery and Reinvestment Act (ARRA), Canada and the United States signed a 
bilateral agreement mitigating the impact that ARRA had on sub-federal procurements. In that 
agreement, the United States exempted Canada from Buy America conditions imposed on certain federal funding programmes for infrastructure projects authorized under the ARRA. Canada and 
the United States also exchanged commitments in relation to sub-national procurement. Canada, 
for the first time, made commitments in relation to procurement by its 13 provinces and territories. In exchange, the United States extended commitments to Canada on behalf of 37 states listed in the United States' GPA sched ule. These market access commitments have now 
been either incorporated into the revised WTO GPA or have expired. Canada's commitments in 
relation to sub-national procurement have been extended to all other GPA Parties, with the exception of Iceland and Lichtenstein.  
3.157.  In addition to the WTO GPA, has eight other domestic and international trade agreements 
that cover government procurement; these are the Agreement on Internal Trade (AIT), NAFTA, the Canada-Chile FTA, the Canada-Honduras FT A, the Canada-Korea FTA, (the government 
procurement chapter of the Canada-Korea FTA will on ly enter into force once the Republic of Korea 
ratifies the revised WTO GPA,) the Canada-Panama FTA, the Canada-Peru FTA, and the Canada-Colombia FTA. With the exception of the WTO GPA and AIT, these agreements only cover 
procurement at the federal level. 
3.3.6  Intellectual property rights 
3.3.6.1  Overview 3.158.  Canada has a well-developed IP system that corresponds to its status as an 
OECD-economy with vibrant technology-intensive industries, such as aerospace and 
pharmaceuticals. During the review period, considerations on intellectual property (IP) have played an important role both in Canada's domestic legislative activity as well as in its international trade 
policy, and were driven by the motivation to furt her improve Canada's performance in the area of 
science, technology and innovation.
103 Since 2011, Canada has ratified two, and initiated accession 
to five important international IP treaties, and has adopted or introduced a number of significant legislative changes to its IP regime. There were a number of court cases during the review period 
in relation to IP matters, including the release of a number of Supreme Court of Canada decisions 
on copyright. Moreover, a series of important judicial decisions in the area of patentability and disclosure of pharmaceutical inventions reflects the dynamism of a market place that contains both 
"brand-name" and generic pharmaceutical industry.  
                                               
103 Science, Technology and Innovation Council Secretariat (2013).  WT/TPR/S/314 • Canada 
 
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  3.3.6.2  Economic Policy Context 
3.159.  Given the diverse forms that IP takes in international trade, including IP embedded in 
manufactured goods, IP royalties recorded as services trade, and consumer downloads of 
IP content, it is difficult to establish a comprehensive tally of the full IP component of Canadian 
trade. However, several indicators permit an a pproximate estimation of Canada's IP trade and 
confirm its traditional situation as a net IP-importing country. 
3.160.  Rankings of the Canadian economy in gl obal indices of innovation and competitiveness 
have remained relatively stable over th e review period, with Canada ranked 12th place in the 
Global Innovation Index in 2014.104 While Canada's overall ranking in the Global Competitiveness 
Report fell slightly from 12th place in 2011-12 to 15th in the 2014-15 report, its IP protection 
ranking improved from 18th to 12th place over the same period.105 Canadian Business Expenditure 
on Research and Development (BERD), one of the main indicators for innovative activity, still 
remains below its pre-crisis 2007 peak, and its intensity (BERD per GDP in %) has continuously declined over the last decade.
106 During the review period, BERD intensity continued to fall slightly, 
from 1.07% in 2011 to 0.93% in 2014107, illustrating that R&D investment by businesses is lagging 
behind GDP growth.  
3.161.  Despite this trend, Canada's overall trade balance in technology-intensive services 
remained relatively stable registering a slight surplus during the reporting period, with exports in 
this category totalling US$23.19 billion in 2013 (Chart 3.6). The categories "computer and information services" and "architectural, engineering and other technical services" are the largest components of exported technology-intensive services, together representing 62% in 2013. 
                                               
104 Global Innovation Index Rankings 2011-2014. Viewed at: www.globalinnovationindex.org. Taking 
account of the changes in the scope of the rankings, Cana da's relative ranking remained stable over the review 
period. 
105 WEF Global Competitiveness Report  Rankings. Viewed at: www.weforum.org/reports. 
106 Science, Technology and Innovation Council (STIC), (2013), State of the Nation 2012 , p.62. 
107 Statistics Canada, CANSIM Tables 358-0024 (BER D) and CANSIM Table 379-0031 (GDP at basic 
prices by NAICS). 2014 GDP data from September 2014. Viewed at: www.statcan.gc.ca on 8 December 2014. WT/TPR/S/314 • Canada 
 
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  Chart 3.6 Trade in technology-intensive services, 2009-13  
-3,000-2,000-1,00001,0002,0003,000
-45-35-25-15-5515253545
2009 2010 2011 2012 2013
Architectural, engineering, and other technical services
Research and development
Charges for the use of intellectual property
Computer and information services
Trade balance technology-intensive services (right-hand axis)(Percentage of commercial services receipts and payments)
Receipts Payments(Can$ million)
 
Source: Statistics Canada, CANSIM Table 376-0033 (International transactions in services, commercial 
services by category).  
3.162.  In contrast, the largest category of impo rts of technology-intensive services – and the 
component with a historically negative trade bala nce – remains, by far, the "charges for use of 
intellectual property" item, which represented 51% of technology-intensive services imports, and 
20.7% of all commercial services imports in 2013. Wi thin the category of charges for IP use, the 
deficit is most pronounced with respect to "paten ts and industrial designs"  and "software and other 
royalties", with payments in these categories exce eding receipts by a factor of two (Chart 3.7). 
3.163.  This apparent inconsistency between a positive record of innovation-generating services on 
the one hand, and a negative trade balance on IP charges on the other, suggests that Canadian 
companies and post-secondary institutions are strong at invention, but that commercialization of 
these inventions is done to a large extent by foreign firms.108 
3.164.  During the review period, the Canadian government has introduced a number of targeted 
m e a s u r e s  t o  h e l p  i n n o v a t i v e  C a n a d i a n  f i r m s  t h a t  d e v e l o p  I P  o v e r c o m e  b a r r i e r s  t o  
commercialization and become globally competit ive. The Economic Action Plans 2012 and 2013, 
among other measures, increased the National Research Council's Industrial Research Assistance Program, introduced a Can$400 million Venture Ca pital Action Plan, and increased support for 
incubator and accelerator organizations to help entrepreneurs.
109  
                                               
108 House of Commons (2013a), p.22. 
109 House of Commons (2013b). WT/TPR/S/314 • Canada 
 
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  Chart 3.7 Charges for the use of intellectual property rights, 2005-13  
(Can$ million) 
-12,000-10,000-8,000-6,000-4,000-2,00002,0004,0006,000
2005 2006 2007 2008 2009 2010 2011 2012 2013
Patents and industrial design Trademarks
Franchises Copyrights and related rights
Software and other royalties Charges for the use of intellectual property balanceReceiptsPayments
 
Source: Statistics Canada, CANSIM Table 376-0033 (International transactions in services, commercial 
services by category). 
3.3.6.3  Use of the IP System  
3.165.  Use of the Canadian IP system by nationals and foreigners has remained mostly stable 
over the review period until 2013 (latest data availa ble). The Canadian Intellectual Property Office 
(CIPO) received on average just over 35,000 nati onal patent applications per year during the 
period 2010-13, 13% of which came from Canadian residents, while the majority (87%) originated from foreign applicants. In the trademark area, applications by Canadian residents remained 
equally stable at just above 21,000 applications, while applications from abroad rose from 
24,771 in 2010 to 28,370 in 2013, increasing their share to 56% of all Canadian trademark applications in 2013. Similarly, applications for industrial design protection in Canada, both by 
residents and foreign applicants, showed modest growth, with a stable share of 84% of all 
applications coming from non-resident applicants.
110 
3.166.  Filings by Canadian residents for IP protection abroad grew over the review period in all 
areas of IP protection. While growth of Canadian foreign filings in the areas of patents and 
trademarks was mostly in step with the general global trend of increased foreign filings – Canada moved by one rank in both categories from 9
th to 10th in patents and from 18th to 17th in 
trademarks – the growth in foreign filings by Canadian residents for industrial design protection 
was significantly above the global rate of increase. Filings by Canadian residents for industrial 
design protection in another jurisdiction grew from 6,407 in 2010 to 9,246 in 2013 which moved Canada's global ranking in this category from 19
th to 18th place in 2013.111 This increased interest 
in design protection abroad provides the backdrop  for the Canadian government's 2014 initiative 
                                               
110 WIPO Statistical country profile. Viewed at: 
http://www.wipo.int/ipstats/en/statistic s/country_profile/profile.jsp?code=CA. 
111 WIPO Statistical country profile . Viewed at: 
www.wipo.int/ipstats/en/st atistics/country_profile /profile.jsp?code=CA.  WT/TPR/S/314 • Canada 
 
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  to join the Hague Agreement112 which would permit Canadian design holders to obtain protection 
for industrial designs in multiple contracting parties by means of a single international application. 
3.167.  During the review period, Canada initiated or concluded a number of legislative activities in 
relation to international IP treaties. In January 2014, the Government of Canada initiated 
procedures towards accession to, and domestic implementation of, the following five international 
treaties related to IP:  
• Protocol Relating to the Madrid Agreement Concerning the International Registration of 
 Marks ("Madrid Protocol"); 
• Singapore Treaty on the Law of Trademarks ("Singapore Treaty"); 
• Nice Agreement Concerning the International Cl assification of Goods and Services for the 
 Purposes of the Registration of Marks ("Nice Agreement"); 
• Geneva Act of the Hague Agreement Concerning the International Registration of Industrial 
 Designs ("Geneva Act"); and 
• Patent Law Treaty. 
3.168.  On 13 May 2014, Canada also ratified the so-called WIPO Internet treaties, the WIPO 
Copyright Treaty (WCT) and the WIPO Performa nces and Phonograms Treaty (WPPT) which 
entered into force for Canada on 13 August 2014. Canada's ratification of the WPPT was 
accompanied by a ministerial statement to ensure that performers and producers of sound 
recordings from WPPT countries receive the same treatment in Canada as Canadians receive abroad when their music is played or performed in public. The statement affects copyright owners 
in 13 countries (i.e., Rome Convention and WPPT member countries that do not provide reciprocal 
treatment for Canadian copyright owners) by establishing limitations on when equitable 
remuneration for public performances and communications to the public of sound recordings may be claimed.
113 Industry Canada announced that "without this statement in place prior to Canada's 
ratification of the WPPT, Canadian businesses will be required to pay a substantial increase in 
copyright royalties to foreign rights holders for certain uses of sound recordings. However, Canadian rights holders would not receive the similar benefit of collecting increased royalties 
abroad for those same uses of their sound recordings".
114 
3.169.  A number of bills to amend domestic IP legislation to adapt to the above treaty 
requirements have been initiated or adopted in parliament, or have entered into force during the review period (see below). Table 3.28 lists Canada's main IP laws currently in force and 
summarizes the protection they provide. 
3.3.6.4  International Initiatives and WTO participation  3.170.  Canada advanced IP-related trade interests in a number of bilateral and regional trade 
agreement negotiations during the review period . Among the bilateral free trade agreements that 
were either signed, concluded or entered into force since 2011 (Section 2), the agreements with the Republic of Korea (CKFTA) and the European Union (CETA) stand out as establishing explicit 
new IP standards and cooperation mechanisms, in particular with respect to copyright, 
geographical indications, patents and counterfeit goods. CETA represents "by far Canada's most 
                                               
112 Hague Agreement Concerning the International Re gistration of Industrial  Designs (Geneva Act), 
administered by WIPO. 
113 The limits will apply to Barbados, the Plurinational State of Bolivia, Cabo Verde, Congo, Costa Rica, 
Japan, Lebanon, Lesotho, Monaco, China, Singapore, the United States, and Viet Nam. 
114 Bloomberg BNA News Report "Canada to limit Royalties for US Rights Holders Under WIPO 
Performances Treaty", 31 July 2014; see also the "Statement Limiting the Right to Equitable Remuneration of 
Certain Rome Convention or WPPT Co untries" pursuant to Section 20(2) of the Copyright Act. Viewed at: 
www.gazette.gc.ca/rp-pr/p2/2014/2014-07-30/html/sor-dors181-eng.php. WT/TPR/S/314 • Canada 
 
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  ambitious trade initiative, broader in scope and deeper in ambition than the historic North 
American Free Trade Agreement".115 
3.171.  Among Canada's on-going FTA negotiations , IP standards feature in talks with Japan, 
Israel, CARICOM, and in the negotiations on the Trans-Pacific Partnership (TPP). In response to 
concerns over limits to Internet freedoms as a result of the prospective IP Chapter in the TPP, 
Canada has indicated that strong IP protection helps promote innovation, attract new investment, and stimulate economic growth, and that Canada remains committed to ensuring that the TPP IP 
chapter balances the interests of both right holders and users.
116 
3.172.  In 2011 Canada, together with seven other WTO Members, signed the Anti-Counterfeiting 
Trade Agreement (ACTA), which aims to strengthen the international legal framework for combating commercial-scale counterfeiting and piracy (Section 2).
117 
3.173.  During the review period, Canada has ma intained an active participation in the TRIPS 
C o u n c i l  d i s c u s s i o n s  o n  e n f o r c e m e n t ,  I P  a n d  i n n o v a t i o n  a n d  t h e  r o l e  o f  I P  i n  s p o r t ,  a s  w e l l  a s  contributing to debate on IP and climate related technology. Canada has also maintained 
constructive involvement in the negotiations of the TRIPS Special Session on a multilateral register 
for geographical indications for wines and spirits.
118 
3.174.  Canada has notified the TRIPS Council of its amended Copyright Act119 and notified the 
Director of the Intellectual Property Trade Policy Division of Foreign Affairs, Trade and 
Development Canada as the contact point for technical cooperation120 and for exchanging 
information on trade in infringing goods.121 Canada updated the Council on its implementation of 
Article 66.2 of the TRIPS Agreement122, and reported on its TRIPS-related technical assistance123, 
which included training activities for IP specialists, legislative development support, policy 
implementation assistance, and research funding by various institutions, including CIPO, Health Canada, the Department of Foreign Affairs, Trade and Development (DFATD) and the International 
Development Research Centre (IDRC). 
Table 3.28 National IP legislation and international agreements, December 2014  
Legislation and term of 
protection Scope and selected limitations 
Patent Act 1985 (amended) 
Patent Rules 1996 (amended).   Protection: up to 20 years from filing
a. Coverage: new and useful invention or new and useful improvement of 
existing invention; Inventions are defined to include: art, process, machine, manufacture, composition of matter.  May not be granted for any mere sc ientific principle or theorem. 
Higher life forms may not be patented.
b 
Patented Medicines (Notices of 
Compliance) Regulations Provide for effective patent enforcement over new and innovative drugs 
and the timely market entry of  competing generic products. 
Data Protection provisions in the 
Food and Drug Regulations: 8 years of data protection; can be extended for an additional 6 months with the filing of results of a paediatric study. New pharmaceutical products containing medicinal ingredients not 
previously approved in Canada i.e. new chemical entities  
                                               
115 See the Agreement Overview on the website of Ca nada's Department of Foreign Affairs, Trade and 
Development (DFATD). Viewed at: http://internation al.gc.ca/trade-agreements-accords-commerciaux/agr-
acc/ceta-aecg/understanding-comprendr e/overview-apercu.aspx?lang=eng#p4. 
116 See "TPP Free Trade Negotiations: Myths and Realities". Viewed at: 
http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/tpp-ptp/myths.aspx ?lang=eng. 
117 The ACTA was signed in Tokyo by Australia, Canada , Korea (Rep. of), Japan, New Zealand, Morocco, 
Singapore, and the United States on 1 October 2011. 
118 Canada is a co-sponsor of the joint proposal in the negotiations of the TRIPS Special Session; see 
WTO document TN/IP/W/10/Rev.4, 31 March 2011. 
119 WTO document IP/N/1/CAN/6, 19 December 2012. 
120 WTO document IP/N/7/CAN/1, 7 November 2012. 
121 WTO document IP/N/3/CAN/1, 7 November 2012. 
122 WTO document IP/C/W/558/Add.4 in 2011, IP/C/W/580/Add.5 in 2012, IP/C/W/594/Add.2 in 2013, 
IP/C/W/602/Add.3 in 2014. 
123 WTO documents IP/C/W/560/Add.4 in 2011, IP/C /W/582/Add.5 in 2012, IP/C/W/593/Add.2 in 2013, 
IP/C/W/601/Add.3, 17 October 2014. WT/TPR/S/314 • Canada 
 
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  Legislation and term of 
protection Scope and selected limitations 
Pest Control Products Data 
Protection Regulations: 10 years 
exclusive-use protection (plus up 
to 5 additional years if minor 
uses are registered). Exclusive-use protection  for data supporting registration of a new 
product, which contains a new active  ingredient. Other data supporting 
the registration are assigned a 12-year compensable status (e.g. where 
a new use is registered follo wing mutual registration). 
Trade-marks Act 1985 
(amended). Trademarks Regulations 1996 (amended).  Trade mark protection: 15 years, renewable for further 15-year terms on payment of renewal fees.
c Trade-marks include: a mark used by a person for the purpose of 
distinguishing or so as to distingu ish wares or services manufactured, 
sold, leased, hired or performed by  him from those manufactured, sold, 
leased, hired or performed by others; a certification mark; a distinguishing guise; or a proposed trade mark. Prohibited marks are listed in the Trademarks Act (Article s 9-11); criteria for registrable trade 
marks in Articles 12-15. 
Once registered, geographical 
indications for wines and spirits: 
indefinite protection. 
 The Trade-marks Act prohibits adopti on and use, as a trade mark or 
otherwise, of protected GI's for wines and spirits which do not originate 
in the territory indicated by the GI . Exceptions relate to: personal 
names; comparative advertising; continued use prior to 1994; disuse or 
cessation of protection in originating country; customary names; certain 
listed wines and spirits and failure to take proceedings. 
Protection for GIs for other 
goods: same as for trademarks. The Act provides for protection of GIs for goods other than wines and 
spirits through certification marks (Article 23-25), which have the same scope of protection as trademarks , except that the owner cannot be 
involved in the manufacture, sale, leasing etc. of the goods indicated by the GI (Article 23). 
Copyright Act (1985) (amended) 
Copyright regulations 1997 
(amended) 
Protection: 50 years from the last 
author's death; 50 years for 
some photographs and for 
published non-dramatic 
cinematographic works; 50 years 
from creation for sound 
recordings and performances. Applies to original liter ary, dramatic, musical,  and artistic works; 
performer's performance; communicatio n signals, and sound recordings. 
 
Protection is provided to countries with whom Canada has a treaty or 
other agreement; exceptions to copyright infringement are outlined in 
Articles 29-32.2 of the Act. They relate, inter alia , to fair dealing; 
non-commercial user-generated conten t, private copyin g, time-shifting 
of broadcasts, educational institutions, libraries, archives and museums; 
interoperability of computer programs; ephemeral copies and 
recordings; and persons with  perceptual disabili ties. 
 
Levies are imposed on blank audio recording media sold in Canada (both 
domestically manufactu red and imported). 
Industrial Design Act 1985 
(amended) Industrial Designs Regulations 1999 (amended).  Protection: up to 10 years, from the date of registration.  Applies to original industrial desi gns defined as features of shape, 
configuration, pattern or orname nt, and any combination of those 
features that, in a finish ed article, appeal to an d are judged solely by the 
eye.  Protection is not extended to: features applied to a useful article dictated solely by a utilitarian function of the article; or any method or principle of manufacture or construction. 
Integrated circuit topography Act 
1990 
(amended) 
Integrated circuit topography 
regulations 1993 (amended). Protection is for the three-dimensional configuration of the materials 
that form integrated circuits, whet her it has been embodied in an 
integrated circuit product or not. Topo graphies that define only part of 
the structure needed to perform an electronic function may be 
registered. Protection is extended to nationals of non-WTO Members on 
a reciprocal basis. 
Protection: up to 10 years, 
beginning on the filing date or the date of first commercial exploitation, whichever is earlier. The term ends on 31 December of the 10th year. Exceptions to exclusive rights include:  exhaustion of rights applying to 
integrated circuit products legitimately put on the market anywhere in the world with the authorization of the owner of the rights; unauthorized copying of a protected topography for the sole purpose of either analysis 
or evaluation, or of research or te aching with respect to topographies; 
and reverse engineering. WT/TPR/S/314 • Canada 
 
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  Legislation and term of 
protection Scope and selected limitations 
Plant Breeders' Rights Act (1990) 
(amended) 
Plant Breeders' Rights 
Regulations (1991) (amended). 
 
Protection is up to 18 years 
effective from the date of issue of 
the rights certificate. Allows for protection of new varietie s of plants; varieties must be new, 
distinct, uniform and stable. All plant species are eligible for protection. 
Algae, bacteria and fungi are not pr otected. Applicants may only be 
citizens of, residents of, or have a re sident office in Canada or a UPOV 
member state. 
 
Restrictions to the holders' rights include: protected varieties may be 
used for breeding and developing ne w plant varieties; and farmers may 
save and use their harvested seed of  a protected variety for replanting 
on their own land without infringing on the holder's rights (farmers' 
privilege). 
a Under section 45 of the Patent Act, patents f iled prior to 1 October 1989 (so-called "Old Act 
patents") and still existent as of July 2001, benefit from a term of protection of either 20 years from filing or 17 years from grant, whichever is greater.  
b This was the subject of a Supreme Court ruling in December 2002. c Trademarks, if not registered, are still protected through common law if they have been used. 
Source: WTO document WT/TPR/S/246/Rev.1, 26 July 2011 – updated by the WTO Secretariat. 
3.3.6.5  The Patent System 
3.175.  While no substantial amendments to Canada's patent legislation have entered into force 
during the review period, Canadian patent law and practise, in particular with respect to 
pharmaceutical patents, nevertheless received much attention. Given the strong presence of both "brand-name" and generic pharmaceutical industry in Canada, conflicting demands of these 
industries with respect to certain aspects of the patent system have to be balanced. 
A parliamentary report on the "Intellectual Property Regime in Canada"
124 prepared in March 2013, 
recommended that the Government: 
• "should only consider expanding patentability to new subject matter when there is clear and 
 demonstrable evidence of bene fit to Canadians and competition"125; and 
• "ensure the pharmaceutical IP regime strikes a balance between encouraging investments in 
 the development of new innovative drugs while ensuring Canadians have access to 
 affordable pharmaceuticals."126 
3.176.  In response, the Government of Canada confirmed that it seeks to balance protection for 
innovative drugs and market entry of lower priced generics through the "early working exception" 
permitting generics to seek drug approval prior to patent expiry. The patent linkage provisions 
contained in the Patented Medicines (Notice of Compliance) Regulations  ensured that generics did 
not abuse this exception by bringing to market drugs which were effectively still under patent.127  
3.177.  Responding to the evolving demands for im proved IP infrastructure, Industry Canada has 
launched a study on the determinants of patent quality and is modernizing its technology systems 
to improve disclosure of patent information.128 CIPO has also further expanded its network of 
partner institutions in a new Global Patent Prosecution Highway (PPH) programme which permits 
applicants to significantly speed up examination of their patent applications based on the results of 
examination from a corresponding application at one of the PPH partner IP offices.129  
3.178.  Clarifying substantive patent practise in response to Federal Court of Appeal decisions, 
CIPO has also issued guidelines on computer-related inventions130, and a practice notice regarding 
                                               
124 House of Commons (2013a). 
125 House of Commons (2013a), p. 51. 
126 House of Commons (2013a). 
127 House of Commons (2013b). 
128 House of Commons (2013b). 
129 Under the Global Patent Prosecution Highway ( PPH) pilot programme that started 6 January 2014. 
Canada now has PPH agreements with Australia, China, De nmark, Finland, Germany, Hungary, Iceland, Israel, 
Japan, Korea, Mexico, the Nordic Patent Instit ute, Norway, Portugal, Russia, Spain, Sweden, 
the United Kingdom and the United States. 
130 PN2013-02 and PN2013-03 of 8 March 2013. WT/TPR/S/314 • Canada 
 
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  medical uses.131 These documents explain the office's shift, away from the past practise of 
assessing the nature of the "contribution" of a patent claim, towards "purposive" claim construction that focuses on essential elements of the proposed solution to a technical problem. 
3.179.  A dynamic patent litigation landscape
132, in particular between generic and "brand name" 
pharmaceutical companies, has continued to generate jurisprudence on certain aspects of patent 
practise. In particular, in a number of cases over the review period, courts have continued to develop the Canadian legal doctrine that the "promise of the patent"
133, i.e. its claimed utility, has 
to be demonstrated or soundly predicted on th e basis of information disclosed in the patent 
application at the filing date. The requirement that an invention's utility must be established at the time the patent application is filed aims to ensure  the granting of high-quality patents by seeking 
to prevent applicants from obtaining patents based on speculation.  
3.180.  A bill to amend and make the Patent Act co nsistent with the mostly procedural provisions 
of the Patent Law Treaty (Bill C-43)
134 received Royal Assent on 16 December 2014.  
3.181.  The CETA Agreement contains new commitments on intellectual property and 
pharmaceutical patents that would require changes to existing Canadian law. 
3.3.6.6  Copyright  3.182.  The adoption of the Copyright Modernization Act in 2012
135 updated the Canadian 
Copyright regime by introducing new rights and exceptions more adapted to the online 
environment, and by ensuring that the Copyright Act remains technologically neutral. The changes 
also implemented the WIPO Internet treaties, which entered into force for Canada in August 2014. 
3.183.  Under the new regime, authors, performers and makers of sound recordings now enjoy 
explicit "first distribution rights" for copyright material in tangible form, subject to international 
exhaustion (see sections 3(1)(j), 15(1.1)(e), and 18(1.1)(b) of the Copyright Act ). Remedies are 
available for the parallel importation of copyright material, which includes a special regime for the 
parallel importation of books (see sections 27(2(e) and 27.1 of the Copyright Act ). Authors, 
performers and makers of sound recordings also now explicitly have the exclusive right to control the release of their copyright material online, i.e. to make it available to the public by 
telecommunication, including over the Internet, in a way that allows a member of the public to 
have access to it from a place and time individually chosen by them (see sections 2.4(1.1), 15(1.1)(d), and 18(1.1)(a) of the Copyright Act) . Furthermore, authors, performers and makers of 
sound recordings now benefit from legal protection for technological protection measures and 
rights management information (see sections 41 – 41.21, 41.22, and 42(3.1) of the Copyright 
Act). 
3.184.  The existing copyright exceptions fram ework was broadened and complemented with new 
provisions. The general "fair dealing" exceptio n was expanded to expressly include three new 
purposes (i.e., education, parody, and satire). New specific exceptions for the benefit of educational institutions permit certain uses of internet content and telecommunication 
technologies in learning contexts, subject to safeguards. Statutory damages for copyright 
infringements with non-commercial purposes have been reduced from Can$500 - Can$20,000 per work infringed, to Can$100 - Can$5,000 for all infringements in a single proceeding for all works 
                                               
131 PN 2013-04 of 10 June 2013. 
132 Among the IP cases before the Federal Court of Ca nada – the main litigation forum for patent cases 
– in 2012, 37% related to patents, 47% related to trademarks, and 12% related to copyright. "Intellectual Property Regime in Canada", Report of the Standing Committee on Industry, Science and Technology of the 
41
st Parliament, March 2013, p.9. 
133 Gold and Shortt (2014); and Siebrasse (2012). 
134 Bill C-43 "A second Act to implement certain provisions of the budget and other measures" includes 
amendments to the Patent Act reducing the requirements for obtaining a filing date in relation to an application for a patent, requiring that an applicant be notified of a missed due date before an ap plication is deemed to be 
abandoned, and providing that a patent may not be inva lidated for non-compliance with certain requirements 
relating to the application on the ba sis of which the patent was granted. 
135 Bill C-11, Copyright Modernization Act, received Royal assent on 29 June 2012 and most of the 
provision entered into force on 7 November 2012.  WT/TPR/S/314 • Canada 
 
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  (not for each work infringed). The previous range continues to apply to cases of infringement for 
commercial purposes.136 
3.185.  New exceptions permit use of copyrighte d works by individuals to produce non-commercial 
user-generated content (e.g., video "mash-ups"), to make certain private copies and to record 
broadcasts for later private viewing ("time-shifting"), subject to safeguards.137 New exceptions 
aimed at technology industries permit the development of interoperable computer programs, encryption research, security testing and other technological processes. New exceptions for persons with perceptual disabilities
138 include an exception for non ‑profit organizations acting for 
the benefit of persons with a print disability to make a copy of a work in a format specifically 
designed for persons with a print disability, and to send a copy of the work to similar organizations 
abroad, subject to safeguards. 
3.186.  The Copyright Modernization Act also esta blished "safe-harbour" provisions for Internet 
Service Providers and search engines, and a new ci vil liability provision targeting those who enable 
copyright infringement online. The Act also formal ized Canada's "Notice and Notice Regime", which 
entered into force on 2 January 2015. In contrast to "notice and takedown" procedures for ISPs in other jurisdictions, this Canadian system does not require ISPs to take down allegedly infringing 
content, but to forward notices, sent by copyri ght owners, to users whose Internet address has 
been identified as being the source of possible in fringement. Notices may be sent to providers of 
Internet connectivity services (e.g. providing Internet access and email services to subscribers) and hosting services (e.g. allowing subscribers to  upload files on the Internet). The ISP must 
inform the copyright owner once the notice has been sent and keep records for six months, or 
longer (i.e. up to one year) in instances where the copyright owner decides to pursue legal action. The ISP may be liable for statutory damages of Can$5,000 to Can$10,000 if it fails to comply with 
these provisions. A separate procedure exists for sending notices to search engine services. 
3.187.  There were a number of court cases during  the review period in relation to copyright 
matters, including the release of a number of Supreme Court of Canada decisions on copyright.
139 
The Supreme Court decisions dealt with a range of copyright issues, such as the scope of the fair 
dealing exception, and the downloading and stre aming of music. Many of these Supreme Court 
cases were heard before the modernization reforms came into force, and stem from judicial reviews of decisions of the Copyright Board of Canada, an economic regulatory body empowered 
to establish, either mandatorily or at the request of  an interested party, the royalties to be paid for 
the use of copyrighted works, when the administ ration of such copyright is entrusted to a 
collective society.  
3.188.  In a noteworthy case of copyright litigation, applying the statutory damages provisions 
amended as discussed above, the Federal Court of Canada awarded an amount of Can$10million in 
statutory damages to Twentieth Century Fox Film Corporation for copyright infringement of its 
"The Simpsons and Family Guy" te levision programs, finding the uploading of over 700 episodes of 
these series for public viewing to be for commerc ial purposes, since the defendant derived revenue 
from these infringement through pay-per-click advertisements.
140  
                                               
136 Section 38.1(1)( a) and ( b) of the Copyright Act. 
137 Sections 29.21 to 29.24 of the Copyright Act. 
138 Sections 32 of the Copyright Act. 
139 Re:Sound v. Motion Picture Theatre Associations of Canada , [2012] 2 SCR 376, 2012 SCC 38; 
Alberta (Education) v. Canadian Copyri ght Licensing Agency (Access Copyright) , [2012] 2 SCR 345, 2012 SCC 
37; Society of Composers, Authors and Music Publishers of Canada v. Bell Canada , [2012] 2 SCR 326, 2012 
SCC 36; Rogers Communications Inc. v. Society of Composers, Authors and Music Publishers of Canada , 
[2012] 2 SCR 283, 2012 SCC 35; Entertainment Software Association v.  Society of Composers, Authors and 
Music Publishers of Canada , [2012] 2 SCR 231, 2012 SCC 34.  See also: Reference re Broadcasting Act , [2012] 
1 SCR 142, 2012 SCC 4; Reference re Broadcasting Regulatory Policy CRTC 2010-167 and Broadcasting Order 
CRTC 2010-168 , [2012] 3 SCR 489, 2012 SCC 68; and Cinar Corporation v. Robinson , [2013] 3 SCR 1168, 
2013 SCC 73. These decisions are available at The Cana dian Legal Information Institute website (CanLII - 
https://www.canlii.org/). 
140 Twentieth Century Fox Film Corporat ion v. Nicholas Hernandez et al. , 2013 FC, (case T-1618-13, 
3 December 2013). WT/TPR/S/314 • Canada 
 
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  3.3.6.7  The Trademark System 
3.189.  Substantial changes to the Trademark System are envisaged by Bill C-31 and Bill C-8.141 
These changes foresee adding several procedural provisions relating to the three international treaties that the Canadian government seeks to ratify: the Madrid Protocol, the Singapore Treaty 
and the Nice Agreement.  
3.190.  Other changes envisage reducing the term of registration and renewal period from 15 to 
ten years, and eliminating the requirement to su pply a declaration of use of the trademark or 
certification mark as a condition of registration. This departure from previous practise will mean 
that applicants will no longer be required to specify grounds for filing, such as use in Canada, 
proposed use in Canada, or use and registration abro ad. Instead, an applicant will be able to file 
an application and obtain a registration as long as he is using or proposing to use a mark and is 
entitled to use the mark in Canada. This change will be particularly significant. Although use 
continues to be an important element for trademark rights in Canada, the abolition of the requirement to provide a declaration of use prior to registration has raised concerns over the 
potential for bad faith registrations of unused marks. 
3.191.  The new provisions also envisage expanding the definition of trademarks to include 
so-called non-traditional trademarks such as sounds and smells. Anticipating these changes, CIPO 
began accepting the registration of sounds as trademarks as of 28 March 2012.
142 
3.192.  A particular feature of Canadian trademar k law is the availability of "official trademarks" 
which permit public authorities to prohibit the adoption as trademarks of badges, emblems, crests, or marks they are using for goods or services.
143 Critics have argued that the use of official mark 
provisions have at times been abused by certain public authorities in ways that stifle innovation 
and distort markets, and have suggested abrogating or significantly restricting the scope of these provisions.
144  
3.193.  The Drug regulatory authority Health Canada, which also approves drug brand names as 
part of the marketing approval process of ph armaceuticals, issued new guidelines on the 
submission of drug brand names in July 2014.145 This guideline provides the process to be followed 
and the information to be submitted by manufacturers to Health Canada regarding the potential 
for a proposed name to be misleading or confused with another product authorized for use in Canada. Examination of such similarity is intended to reduce the potential for miscommunication between patient and doctor and prevent medication errors.
146  
3.3.6.8  Geographical Indications 
3.194.  Further to the terms of the 2004 Canada-E U Wine and Spirits Agreement described in the 
last TPR Report147, Canada removed the wine names Chablis, Champagne, Port, Porto and Sherry 
from its generic classification list with effect of 31 December 2013.148 
3.195.  New commitments undertaken by Canada in the Canada-Korea FTA (CKFTA), which 
entered into force on 1 January 2015, and CETA, once  signed, ratified and entered into force, will 
establish individual protections for Geographical Indications (GIs) covered therein that go beyond 
the level of protection required by the TRIPS Agreement.  
3.196.  Under Article 16 of CKFTA, Canada commits to protect four Korean GIs – three types of 
ginseng and one type of rice149 - against any use on such goods not originating in the place 
                                               
141 Bill C-31, Economic Action Plan 2015 Act, No, 1  received Royal assent on 19 June 2014, while Bill 
C-8, Combating Counterfeit Products Act, came into force on 1 January 2015.  
142 Canadian Intellectual Property Office, Trade-mark consisting of a sound , 28 March 2012. Viewed at: 
http://www.cipo.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/wr03439.html.  
143 Section 9(1)(n)(iii) of  the Trade-marks Act. 
144 House of Commons (2013a), p. 36. 
145 Guidance Document for Industry - Review of Drug Brand Names, 2 July 2014. Viewed at: 
http://www.hc-sc.gc.ca/dhp-mps/pubs/medeff/_guide/2014-review-examen_drug-medicament_names-marques/index-eng.php. 
146 Health Canada (2014).  
147 WTO document WT/TPR/S/246/Rev.1 (Chapter III, para. 197), 26 July 2011. 
148 See repealed Section 11.18(3)(a)-(e) of the Trade-marks Act. WT/TPR/S/314 • Canada 
 
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  indicated by the GI in question, even where true origin is indicated, if used in translation, or if 
accompanied by expressions such as "kind", "type", "style", "imitation" or the like. The Republic of 
Korea commits, in return, to provide the same level of protection for "Canadian Whisky" and 
"Canadian Rye Whisky". 
3.197.  Article 7 of CETA establishes similar protection for a list of food GIs contained in an Annex, 
and provides exceptions for certain GIs on that list in certain cases. Exceptions include, for example, maintenance of prior rights and permission to continue prior commercial use, transition 
periods, and the use of qualifiers such as "kind" , "type", "style", "imitation" or the like and in 
combination with a legible and visible indication of the geographical origin of the product concerned.
150 A CETA Committee on Geographical Indications can recommend amendments to the 
list of GIs in Annex I "by adding geographical indications or by removing geographical indications 
which have ceased to be protected or have fallen into disuse in their place of origin."151 
3.3.6.9  IP Enforcement  3.198.  The Royal Canadian Mounted Police (RCMP), acting together with the Canadian Border 
Services Agency (CBSA), has reported an upward  trend in the number of documented cases of 
counterfeit and pirated goods between the years of 2005 and 2012, with incidents involving harmful goods increasing from 11.5% (2005) to 30. 4% (2012). The retail value of seizures of IP 
infringing goods has risen from Can$24.3 million in 2010 to Can$38.1 million in 2012, with apparel 
and footwear representing 45% of seized commo dities, followed by copyrighted works (20%), 
consumer electronics (9%), personal care products (9%) and pharmaceuticals (6%). Incidents are concentrated in the main cities which are also the key entry points to the Canadian market.
152  
3.199.  The Standing Committee on Industry, Scie nce and Technology, after hearing witnesses, 
identified a number of areas for Government attention to improve the enforcement regime coverage for trademarks and copyright. The Committee's report on the "Intellectual Property 
Regime in Canada" recommended that the Government introduce legislative measures to 
strengthen enforcement at the border, including by providing ex officio  powers to customs officials, 
introducing civil and criminal remedies for trademark counterfeiting; and allowing customs officials 
to share information with rights holders regarding suspected goods.
153 
3.200.  Addressing the challenges raised in the parliamentary report, the Government of Canada 
reintroduced in Parliament the Combating Counterfeit Products Act (Bill C-8) in 2014154, which 
came into force on 1 January 2015. This Ac t implements changes to the Copyright and 
Trade-marks Act to strengthen IP enforcement, and introduces new border enforcement measures. 
More specifically, the Act creates new criminal offences for trademark counterfeiting that are analogous to existing offences in the Copyright Act, as well as new criminal provisions prohibiting 
the possession or export of counterfeit trademarke d goods, packaging or labels, or of products 
that infringe copyright. It further provides fo r new border enforcement measures enabling customs 
officers to detain goods that they suspect infringe copyright or trademark rights, and allowing the 
officers to share information relating to the detained goods with rights owners who have filed a 
request for assistance, in order to give the rights owners an opportunity to pursue a remedy in court. The importation and exportation of copies an d goods by individuals for their personal use is 
exempt from the application of such border measures.  
3.201.  The Act faced criticism from parliamentary opposition
155 and other commentators for giving 
excessive powers to border officials, and for succu mbing to pressure to implement ACTA in Canada 
while the Agreement had been rejected in Europe and was widely unpopular with civil society 
groups around the world. However, during Commit tee hearings, other stakeholders criticized Bill 
                                                                                                                                               
149 The Korean GIs covered are "GoryeoHongsam ", "GoryeoBaeksam", "GoryeoSusam", and 
"IcheonSsal" and their translations, respectively, "K orean Red Ginseng", "Korean White Ginseng", "Korean 
Fresh Ginseng" and "Icheon Rice". 
150 Article 7.6 CETA. 
151 Article 7.7 CETA. Annex I cu rrently contains a list of exclusively European GIs.  
152 RCMP online information, "2012 Intellectual Property (IP) Crime Statistics". Viewed at: 
http://www.rcmp-grc.gc.ca/fep-pelf/ipr-dpi/report-rapport-2012-eng.htm. 
153 House of Commons (2013a), pp. 39-41.  
154 The bill had originally been introduced in 2013 as Bill C-56. 
155 See questions posed by NPD Members at question time on 4 March 2014. Viewed at: http://open 
parliament.ca/debates/2013/3/4/christian-paradis-3/. WT/TPR/S/314 • Canada 
 
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  C-8 for not going far enough including by not providing for statutory damages for trademark 
counterfeiting and not asking rights holders to assume the costs of border measures.  
 WT/TPR/S/314 • Canada 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture and fisheries 4.1.1  Overview 4.1.  Canada's agriculture and agri-food sector remains among the key sectors in the economy. In 
2012, the sector accounted for 6.2% of GDP (down from 8.3% in 2009), and 12.2% of 
employment (Chart 4.1). The sector encompasses activities such as: primary agriculture; farm input and service supplier industries; food, be verage and tobacco processing; wholesale, 
distribution and retail food industries; and food service. Contributions to the sector vary across 
provinces, with Ontario, Quebec and Alberta acco unting for about two-thirds of the agricultural 
output. However, Prince Edward Island and Saskatchewan are the regions where the sector contributes the most to provincial outputs, a ccounting respectively for 8.9% and 7% of the 
respective provincial GDP. Government expenditure (at federal and provincial levels) in support of 
the sector is estimated at 31.2% of agriculture GDP in fiscal year 2013/14.
1 
Chart 4.1 Agriculture and agri-food system's  contribution to GDP and employment, 2009 
and 2012  
(%) 
1.5 1.45.1 5.2 2.5
1.43.6 3.3
2.0
1.71.71.7
1.7
1.11.81.6
0.6
0.60.40.4
02468101214
2009 2012 2009 2012
GDP EmploymentFood service Food retail/wholesale
Food, beverage and tobacco processing Primary agriculture
Input and service suppliers
 
Source: AAFC (2011, 2014). 
4.2.  Canada's field crop production is dominated by wheat, canola (rapeseed), corn and barley 
with smaller volumes of other cereal grains, soyb eans, peas, flax, and lentils. The production of 
field crops increased by about 25% during the crop year 2013/14 to 96.6 million tons, owing to good weather conditions during the growing season and at harvest. However, prices of some main 
export crops have fallen. For example, the averag e price of wheat declined by 36% between crop 
years 2011/12 and 2013/14. 
4.3.  Canada's large agricultural production am ply exceeds domestic demand for those products, 
thus international trade is critical to the sector. Canada is among the major players in international 
trade of agricultural products. In 2012, Canada was the fifth-largest exporter of agricultural and 
agri-food products, accounting for 3.5% of the total value of world's exports.
2 Similarly, Canada 
                                               
1 AAFC online information, "Financial Conditions and Government Assistance – Data book 2013". Viewed 
at: http://www.agr.gc.ca/eng/about-us /publications/economic-publications/alphabetical-listing/farm-income-
financial-conditions-and-government-assistance-data-book-2013/?id=1392131614380. 
2 AAFC (2014b) . WT/TPR/S/314 • Canada 
 
- 110 - 
 
  was the sixth-largest importer of agricultural products, accounting for 2.7% of the total value of 
world imports. The United States is by far Canada's major trading partner in agricultural products, being the source of 61.2% of Canada's imports an d the destination market for 48.4% of exports. 
4.4.  Canada is a major player in international food assistance, providing it mainly through grants. 
Most food assistance is channelled either through the World Food Programme (WFP), of which 
Canada is one of the largest donor countries
3; or the Canadian Foodgrains Bank, a non-profit 
charitable organization involved in humanitarian and development activities. In 2011-12, Canada 
provided a total of 306,422 tonnes of food aid to 40 LDCs and 14 Net Food-Importing Developing 
Countries (NFIDCs), valued at Can$258 million.4 This represented a volume increase of 36% 
compared to the previous period. Nearly half of this assistance was channelled through the WFP.  
4.1.2  Border measures 
4.5.  Based on the 2014 MFN tariff, Canada's aver age level of applied tariff protection for the 
agricultural sector (WTO definition) remained at 22.5%, almost unchanged compared to the last review (Table 3.4). This relatively high level of protection is driven essentially by dairy products 
(with an average tariff rate of 238.7%), animal products (47%) and to a lesser extent, cereal 
products (28.2%).  
4.6.  Canada maintains a tariff rate quota (TRQ) re gime for some agricultural products (Table 4.1). 
About 41% of the applied MFN in-quota tariffs for agricultural products (totalling 152 tariff lines) 
are non- ad valorem . The ad valorem  equivalents of these in-quota rates range from 0.3% to 8.6% 
(for products where import data were available to calculate the AVEs). In-quota imports generally exceed quota levels for products such as chicken, eggs, wheat products and barley products, 
reflecting preferential imports under other bilatera l commitments. In the case of dairy products the 
quota was generally filled (100% utilization). Fill rates for wheat and barley, as well as margarine were low in 2012 (and below those of 2008). According to the authorities, these low fill rates in 
the case of wheat and barley were due to market  conditions, such as competitive market prices 
and market surpluses. They have also stated th at there are no restrictive conditions on the 
issuance of import permits and that they are issued on a first-come first-served basis. In the case 
of margarine, the authorities have noted that the main reason for the underutilisation of the TRQ 
was a very competitive domestic industry. They do not consider that the 500 tonnes limit per importer restricts importers' ability to import. 
Table 4.1 Tariff rate quota levels and fill rates, 2008 and 2012  
Description of 
Products WTO tariff rate 
quota level Reservations 2008 fill 
rate (%) 2012 fill 
rate (%) 
Creama 394 tonnes Limited to sterilized cream, 
minimum 24% butterfat, in 
cans of a volume not 
exceeding 200ml 100 100c 
Dry wheya 3,198 tonnes  100 50.7c 
Buttera 3,274 tonnes 61% reserved for 
New Zealand 99 100c 
Wheata 226,883 tonnes  25 13.8c 
Barleya 399,000 tonnes  47 10.2c 
Wheat productsa 123,557 tonnes  124 125.3c 
Barley productsa 19,131 tonnes  147 109.1c 
Broiler hatching eggs and 
chicks 7,949,000 dozen 
egg equivalent  149 147 
Chicken, live, meat and 
productsb 39,843.7 tonnes 
(eviscerated)  189 189.5 
Turkey, live, meat and 
productsb 5,588 tonnes 
(eviscerated)  100 99.2 
                                               
3 DFAIT online information. Viewed at: http:// www.acdi-cida.gc.ca/acdi-cida/acdi-cida.nsf/en/JUD-
24133116-PQL.  
4 WTO document G/AG/N/CAN/100, 22 September 2014. WT/TPR/S/314 • Canada 
 
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  Description of 
Products WTO tariff rate 
quota level Reservations 2008 fill 
rate (%) 2012 fill 
rate (%) 
Beef and vealb 76,409 tonnes  45.8% reserved for Australia 
and 38.7% for New Zealand; the rest applies to imports 
from countries with which 
Canada does not have a bilateral trade agreement that 
covers these products 55 61.1 
Fluid milkb,d 64,500 tonnes  Filled by individual importers 
for personal consumption n.a. n.a. 
Concentrated and 
condensed milk/creamb 11.7 tonnes  100% reserved for Australia 0 92.3 
Yogurtb 332 tonnes  100 100 
Powdered buttermilkb 908 tonnes  100% reserved for 
New Zealand 100 74.7 
Other products of milk 
constituentsb 4,345 tonnes  91 97.4 
Cheeseb 20,411.866 
tonnes  66% reserved for the EU 100 100 
Other Dairyb 70 tonnes  0 7.7 
Ice Creamb 484 tonnes  74 89.2 
Eggs and egg productsb 21,370,000 dozen 
egg equivalent  95 89 
Margarineb 7,558 tonnes  50 22.5 
Milk Protein Substancesa 10,000 tonnes  n.a. 56.3c 
n.a. Not applicable. 
a Administered on a marketing year basis. 
b Administered on a calendar year basis. c Marketing year 2011/12. d There is no data for fluid milk because its importat ion is left to individual  importers (under the GIP 
No.1, any resident may import da iry products for personal use). 
Source: WTO (2011); Canada's WTO Goods Schedule; and WTO document G/AG/N/CAN/103, 
18 November 2014. 
4.7.  There have been no major changes to the administration of the TRQ regime since the last 
Review. No new TRQs have been introduced. An import permit from DFAITD is required for each 
shipment of a product subject to a TRQ. Except for TRQs that are administered on a first-come first-served basis, importers are required to obtain a quota allocation before requesting 
shipment-specific import permits. Allocations are based on a variety of methods, including: equal 
share amongst eligible applicants; market share (i.e. based on the applicants' share of total sales, value added, imports, or others); pro-rata of demand (i.e. allocation made based on how much the 
applicants requested, or a pro-rata thereof); and historical (historical importers receive the same 
allocation every year).
5 A number of TRQs are allocated using a mix and variations of these 
methods.6 Under-utilization penalties, transfer and return policies are used in order to maximize 
TRQ fills. Some TRQs are administered on a calend ar year basis, while others are administered on 
a marketing year basis (Table 4.1). 
4.1.3  Domestic programmes 4.8.  Agricultural policy is a shared responsibility between federal and provincial/territorial (FPT) 
governments. The development of agricultural policie s, therefore, usually involves both levels of 
government and programmes are generally cost-shared between the two levels. The legislative framework for agriculture comprises several Acts an d Regulations, most of which are administered 
                                               
5 The detailed allocation methods can be found in various Notices to Importers. Viewed at:  
http://www.international.gc.ca/controls- controles/index.aspx?view=d&lang=eng.  
6 For example, the TRQ for chicken is allocated us ing a mix of the historic al, markets share, and 
equal-share methods, as well as a variat ion of the pro-rata of demand measure. WT/TPR/S/314 • Canada 
 
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  either by Agriculture and Agri-food Canada7 or the Canadian food Inspection Agency.8 Under the 
Farm Income Protection Act (FIPA)9, the federal government may enter into an agreement with 
one or more provinces (or territories) in order to provide for the establishment of net income stabilization account; gross revenue insurance; revenue insurance; and crop insurance 
programmes.
 The Food and Drugs Act is the primary legislation governing food safety 
(see Section 3.1.9). The legislative framework also includes the Agricultural Marketing Programs 
Act, which regulates a number of marketing prog rammes such as the Advance Payments Program 
and the Price Pooling Program. 
4.9.  The main FPT policy setting mechanism is an agricultural policy framework agreement, which 
typically lasts five years. Duri ng the review period, two such policy frameworks have been 
implemented: The Growing Forward Framework Agreement  1 and 2 (GF1 and GF2 respectively), 
for the periods 2008-13 and 2013-18. GF1 and GF2 are the continued basis for FPT collaboration 
with regards to agricultural policy, programmes and services.10  
4.10.  The current agricultural policy framework, GF2 includes Can$3 billion investment by 
FPT governments and constitutes the foundation for government agricultural programmes and 
services in the 2013-18 period. Launched in Apr il 2013, GF2 builds on previous frameworks with 
an emphasis on three broad priorities: innovati on, competitiveness, and market developments. 
The framework relies on two sets of instruments: Strategic Initiatives and a statutory demand 
driven suite of Business Risk Management (BRM) programmes. GF2 reforms existing programmes with a view to encouraging farmers to take greater responsibility in the management of normal business risks, and reinforces the BRM fr amework with the introduction of the AgriRisk  initiative 
(see below). 
4.11.  Under the GF2 policy framework, up to Can $2 billion in federal funding over five years was 
allocated in support of Strategic Initiatives. Half of the resources have been earmarked for 
three new programmes to be administered at the federal level by the AAFC. The remaining portion 
of the funding is for programmes to be designed and/ or delivered at provincial/territorial level, and 
funded on a cost-shared basis at a 60:40 ratio with provincial and territorial governments. 
AgriInnovation , AgriMarketing  and AgriCompetitiveness  are the three new programmes to be 
administered at the federal level.
11 
4.12.  AgriInnovation  builds on the Agricultural Innovation Program and the Canadian Agri-Science 
Clusters, both terminated in 2013. It is de signed to support agricultural R&D, and the 
commercialization and adoption of emerging innovations. It has an overall budget of 
Can$698 million over a five-year period. About two-th irds of this funding is destined to projects 
based on applications from the sector, and the remaining portion is destined to AAFC's R&D and 
knowledge transfer activities. Farmers and non-profit organizations can submit their projects under 
one of the following two streams: the Industry-led R&D stream, and the Enabling Commercialization and Adoption Stream. Support provided under the R&D stream is 
non-repayable, while support under the Commercializ ation and Adoption Stream takes the form of 
non-interest bearing contribution funds, to be re paid over a period of up to 10 years following 
project completion. In general, AgriInnovation  may contribute up to 50% of the eligible cost. 
However, the contribution can be raised up to 75% for projects led by a non-profit organization. 
There is an annual cap of Can$10 million on the maximum contribution provided to a single 
applicant.  
4.13.  AgriMarketing  focuses on  market access. It provides Can$341 million in the form of 
government projects and contribution funding, dest ined to support projects in the following four 
areas: development and implementation of long-t erm market development strategies; promotional 
                                               
7 A list of Acts admini stered by AAFC can be found at: http ://www.agr.gc.ca/eng/ about-us/acts-and-
regulations/?id=1180107359564.  
8 A list of Acts administ ered and enforced by CFIA can be found  at: http://www.insp ection.gc.ca/about-
the-cfia/acts-and-regulations/list/eng/1419029096537/1419029097256.  
9 Farm Income Protection Act S.C. 1991, c. 22, as consolidated (Last amended on 1 March 2013). 
10 AAFC online information. Viewed at: http: //www.agr.gc.ca/eng/abou t-us/key-departmental-
initiatives/growing-forward-2/?id=1294780620963#ci. 
11 Under the previous five-year policy framework (G F1), a number of polici es and programmes, which 
expired, played a similar role in assi sting the industry with adaptation and adoption of new technologies. These 
included the Agricultural Flexibility Fund  (AgriFlexibility); the Agri-Processing Initiative  (API); and the Canadian 
Agricultural Adaptation Program  (CAAP). WT/TPR/S/314 • Canada 
 
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  and market development activities in foreign ma rkets; breaking down of trade barriers; and, 
building market success. For market development pr ojects, eligible businesses can be granted up 
to Can$50,000 annually in funding, subject to a maximum coverage of 50% of eligible costs. AgriMarketing  also comprises an Assurance Systems Stream, a component aiming at helping the 
industry improve its capacity to adopt assurance systems such as food safety and traceability. 
Under this stream, the programme may contribute up to Can$1 million per project, with a minimum contribution of 25% from the applicant.  
4.14.  AgriCompetitiveness  targets direct investments with a view to strengthening the food and 
agriculture industry's capacity to adapt and be profitable in domestic and global markets. It 
provides Can$114.5 million in funding and comprises a combination of government initiatives and contribution funding for industry-led projects. 
4.15.  The policy framework also provides province s and territories with the flexibility to design 
and deliver programmes that respond to regional pr iorities. Provinces can also determine the level 
of resources to be expended in the overall progra mme area of support within the agreed limits of 
the Framework Agreement. Under GF2, the federal government commits to allocate up to 
Can$1 billion for provincial programmes. The allocation is based on factors such as the number of producers within each province or territory, and the amount of farm cash receipts. 
4.1.3.1  Business Risk Mana gement (BRM) programmes 
4.16.  The BRM suite of programmes is a set of  tools designed to support Growing Forward 
strategic outcomes by allowing producers to manage risks associated with severe market volatilities, production losses and disaster situations, thereby helping them to reduce income 
losses. The Farm Income Protection Act (FIPA) of 1991 is the legal basis for the programmes. The 
cost of BRM programmes is generally shared  between federal and provincial/territorial 
governments on a 60:40 basis. As the programm es are demand-driven, expenditures fluctuate 
from year to year. From 2007 to 2012, over Can$12 billion in support was disbursed to producers 
through BRM programmes. The four cost-shared BRM programmes are:
  
a. AgriInvest, a government-matched producer savings account for moderate income 
declines or investments in farming operations.  Farmers are able to  make annual deposits 
in their AgriInvest  account held at a participating financial institution. Deposits are based 
on a percentage of farmers' allowable net sales, and receive matching contributions from FPT governments. Starting in 2013, farmers can deposit up to 100% of their allowable 
net sales annually, with the first 1% matched by governments. The limit on matching 
government contributions is Can$15,000 per year. For the 2013/14 fiscal year, nearly Can$211 million were disbursed by FPT governments in matching contributions, a 
significant decline compared to the two previous fiscal years (see Table A4.1).  
b. AgriStability , a whole-farm margin programme that provides support in years of 
significant income declines. AgriStability  is based on margins. There is a Program 
margin, which is a farmer's allowable income minus his/her allowable expenses in a 
given year, with adjustments for changes in receivables, payables and inventory; and a Reference margin, which is a farmer's olympic average (highest and lowest values are dropped from the calculation) of Program margins for the past five years, and must not 
be higher than the average allowable expenses for the years used to calculate it. 
AgriStability provides support when a farmer's Program margin falls below 70% of the Reference margin. AgriStability is delivered in Manitoba, New Brunswick, Nova Scotia, 
Newfoundland and Labrador and Yukon by the federal government. In Alberta, British 
Columbia, Ontario, Prince Edward Island, Quebec and Saskatchewan, AgriStability is delivered provincially. During each of the 2011 and 2012 programme years (under GF1), 
more than Can$500 million was disbursed under AgriStability  (see Table A4.1). 
Preliminary data for the 2013 programme year (the first year under GF2) point towards a significant decline in AgriStability  support.  
c. AgriInsurance , a subsidized insurance that provides coverage for production losses due 
to natural disasters. AgriInsurance  is provincially delivered; the federal government 
contributes a portion of total premiums and administrative costs and provides a reinsurance arrangement (deficit financing) to provinces. Currently, five provinces WT/TPR/S/314 • Canada 
 
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  (Alberta, Saskatchewan, Manitoba, New Brunswick and Nova Scotia) participate in the 
reinsurance arrangement. AgriInsurance  plans are developed and delivered by each 
province and may be both yield and non-yield based. They cover traditional crops such as: wheat, corn, oats and barley as well as horticultural crops. GF2 contains guidelines 
for provinces to develop and implement livestock plans under AgriInsurance. About 
Can$1.2 billion was disbursed by various governments during the fiscal year 2013/14 (Table A4.1). 
d. AgriRecovery , a disaster relief framework.  The AgriRecovery  framework has been 
designed to complement the other BRM programmes in helping producers recover from natural disasters. The focus of the framework is to respond in situations where producers do not have the capacity to cover the extraordinary costs associated with recovering 
from a disaster, even with the assistance available from other programmes. The process 
for assessing disasters and developing initiatives under the framework starts with a request from a provincial or territorial government, followed by a joint assessment by 
the FPT governments of the impacts of the disaster, and a determination of actions 
producers must take to mitigate the impacts and/or resume production. It is then assessed whether producers are able to undertake these actions with the assistance 
available through the core BRM programmes. If further assistance is needed, an 
AgriRecovery  initiative is activated and payments are made to eligible producers. An 
initiative was activated under the Framework in 2014. The 2014 Canada-Manitoba 
Forage Shortfall and Transportation Assistance Initiative  aims at helping Manitoba 
livestock producers (who were experiencing forage shortages caused by elevated water 
levels) secure the feed they need to maintain their breeding herds over the winter feeding season.
12 
4.17.  Under GF2, a new programme was added to BRM tools. AgriRisk  Initiatives (ARI) provides 
financial assistance for activities related to the development and implementation of new risk management tools from the private sector. ARI consists of two components: the R&D component, 
funded by the federal government, and the Administrative Capacity Building (ACB) component, 
operated on a cost-shared basis. Projects approved under the R&D component can be eligible for federal support of up to Can$500,000 per fiscal year. For ACB projects, the federal government plans to provide up to Can$8 million annually. ARI supports research and development as well as 
the implementation (and pilot implementation) of new risk management tools. No expenditure was 
incurred under ARI during the fiscal year 2013/14. 
4.18.  BRM programmes are, in principle, designed to be complementary and to prevent 
duplication of coverages. They aim at mitigating various risk layers and addressing different types 
of losses. It has been noted, however, that some programmes such as AgriStability, AgriInsurance  
and AgriInvest  may provide coverage in the same risk layers, although based on different 
mechanisms and rationales .
13 A recent evaluation of the effectiveness of the BRM suite of 
programmes by the AAFC noted that this coverage overlap between programmes may be crowding out the development of producer-led or private sector initiatives that could complement current BRM tools.
14 There are also concerns that coverage may be provided for low level risks (i.e., risks 
that occur relatively frequently but which should lie within the scope of any business to manage). 
As noted in a report by the OECD, the major policy challenge in Canada is to maintain farmers' incentives to proactively develop risk management strategies and improve the targeting policies to 
income risk.
15 
4.19.  AAFC has taken steps to address some of the concerns identified. In this respect, under 
GF2, BRM programmes have been adjusted to re duce concerns about providing coverage in 
lower-risk layers, and to support development of new risk management tools, as recommended by 
the 2012 AAFC Evaluation report. These changes include a reduction in AgriStability reference 
                                               
12 AAFC online information. Viewed at: http://www.agr.gc.ca/eng/?id=1387480598562. 
13 However, as an OECD study notes, the overlappi ng between different prog rammes should not be 
interpreted as double compensation for risk since, fo r example, both AgriStabil ity and AgriRecovery have 
provisions to take payments from other programmes into account in  determining prog ramme benefits,  
OECD (2011).  
14 This evaluation by the AAFC's auditing body re commended that the authorities re-examine the risks 
faced by the industry with a view to identifying those that woul d better define the level and nature of risk for 
which the Government was suited to  cover, and adjust the programmes  accordingly. Source: AAFC (2012). 
15 OECD (2011). WT/TPR/S/314 • Canada 
 
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  margins trigger from 85% to 70% (i.e. increasing the payment trigger from 15% to a 30% margin 
decline). Compensation rates under the programme were  to be harmonized at a flat rate of 70% of 
a producer's loss (previously there were three different compensation rates depending on the degree of loss). Similarly, the AgriInvest  matching contribution from governments was reduced to 
1% of the producer's allowable net sales (fro m 1.5% previously), with a cap of Can$15,000 
(instead of Can$22,500). However, the maximum amount of account balance under AgriInvest  has 
been increased from 25% to 400%
16 of the allowable net sales to encourage producer savings. 
4.1.3.2  Other programmes 
4.20.  In addition to the Growing Forward framework, the federal government funds a number of 
other programmes established under various pieces of legislation or policy frameworks.  
4.21.  Established under the Canadian Agriculture Loan Act of 1985 (CALA), the CALA Program is a 
loan guarantee facility that aims at supporting the renewal of the agricultural sector and enabling 
co-operatives to be in a better position to seize market opportunities. Under the programme, the federal government guarantees to the lender th e repayment of 95% of net losses they may incur 
on an eligible loan. Lenders, such as banks, credit unions and caisses populaires , issue and 
administer loans under the CALA Program. The maximum aggregate loan limit for any one farm operation is Can$500,000: loans are capped at Can$500,000 for land and buildings and at 
Can$350,000 for all other loan purposes, including consolidation/refinancing. The maximum 
aggregate loan limit for agricultural co-operatives is Can$3 million, with the Minister's approval.
17 
For fiscal year 2013/14, about Can$113 million worth of loans have been issued by financial institutions under the CALA (Table A4.1). 
4.22.  Under the Agricultural Marketing Programs Act of 1997 (AMPA), Canada maintains several 
guarantee programmes, including the Advance Payments Program and the Price Pooling Program (PPP). The objective of the Price Pooling Program is to provide a price guarantee mechanism that 
protects marketing agencies and producers against unanticipated declines in the market price of 
their products.
18 Under the AMPA, the federal government typically enters into an agreement with 
a marketing agency to market a given product under a cooperative plan. The agreement is specific 
to a product in a given crop year, and may be used by the marketing agency as security in 
obtaining credit from lending institutions. It also allows the agency to improve the producers' cash flow through an initial payment for products delivered. The price guarantee is set at a given percentage, but up to a maximum of 65% of the ex pected wholesale price of the product. If the 
realized price is less than the guarantee value (the initial payment plus the eligible costs), the 
programme allows for a payment for the shortfall by the federal government (through participating marketing agencies). 
4.23.  The Advance Payments Program is a product-specific loan guarantee programme under 
which the federal government, inter alia , guarantees cash advances of up to Can$400,000 to 
producers based on the value of the eligible product (including livestock). The programme is 
delivered through producer organizations, which must apply to AAFC in order to administer the 
programme. Loans are repayable within 18 months and the first Can$100,000 portion is interest-free. In the 2013-14 production period, the Government guaranteed Can$2.4 billion in 
advances. 
4.24.  Under the Agricultural Products Marketing Act of 1985(APMA), the federal government may 
grant provincial entities, including boards and ag encies, authority to "regulate the marketing of 
agricultural products in interprovincial and export trade". A provincial entity that is granted such a 
power enacts regulations or other instruments sp ecifying how the power is exercised. In some 
cases, these powers include the authority to set production quotas and prices. The APMA also grants provincial entities the power to set levies on the interprovincial movement or export of 
agricultural goods.  
4.25.  There are also a number of support initiatives taken at the provincial or territorial levels. For 
instance, Quebec and Ontario maintain provincial programmes that complement AgriStability. In 
                                               
16 In 2013. 
17 AAFC online information. Canadian Agri cultural Loans Act Program. Viewed at: 
http://www.agr.gc.ca/eng/?id=1288035482429. 
18 AAFC online information. Viewed at: http://www.agr.gc.ca/eng/?id=1289934791790. WT/TPR/S/314 • Canada 
 
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  Quebec, the Farm Income Stabilization Insurance (ASRA) programme guarantees a stabilized 
income to producers who raise and sell their livestock or grow and sell crops.19 They typically pay 
a premium each year and receive compensation wh en the average selling price is lower than a 
reference price derived from the stabilized income. Programme participants commit for five years. 
The provincial government covers about two-thirds of the insurance premiums. Ontario runs a 
similar scheme under the Risk Management Program. This provides additional protection against risks such as rising costs and market price volatility. 
4.1.4  Export measures 
4.26.  Canada's WTO export subsidy reduction commitments apply to 11 product groups: wheat 
and wheat flour, coarse grains, oilseeds, vegeta ble oils, oilcakes, butter, skim milk powder, 
cheese, other milk products, vegetables, and incorporated products. However, only five product 
groups are actually subject to subsidies, with co mmitment levels being regularly reached for milk 
products and incorporated products (Table 4.2). For the marketing year running from August 2011 to July 2012, total export subsidies outlays declin ed by 2.3% to Can$88.3 million, representing 
some 0.14% of agricultural exports. According to the authorities, preliminary figures for 2012-13 
indicate that Canada remains well within its export subsidies commitments.  
Table 4.2 Export subsidies: commitm ent levels and annual outlays, 2009-13  
(Can$ 000') 
Products Annual  
commitmenta Subsidised exportsa  
2009-10 2010-11 2011-12 2012-13b 
Butter 11,025 2,321 522 0 10,364 
Skim Milk Powder 31,149 31,149 31,149 31,149 31,149 
Cheese 16,228 13,997 13,753 14,384 16,143 
Other Milk Products 22,505 22,505 22,505 22,473 22,500 
Incorporated Products 20,276 20,276 20,275 20,276 20,272 
Total 101,183 90,248 88,204 88,282 100,427 
a Subsidized quantities are not reported to save some space.  
b Estimates from Agriculture and Agri-Food Canada. 
Source: WTO documents G/AG/N/CAN/92, 16 July 2012; and G/AG/N/CAN/101, 26 September 2014. 
4.1.5  Evolution of support and protection 
4.27.  Government expenditure in support to the agriculture sector in Canada has been on a 
declining trend over the past decade. It was esti mated at Can$6.2 billion for fiscal year 2013/14, 
and represented 31.2% of the sector's GDP.20 Contributions from the federal government have 
averaged 57.2% of total support over the past three decades. A majority of federal support 
(74.2%) is divided among expenditure related to research and inspection services, and 
programme payments (essentially BRM programmes). 
4.28.  Under WTO commitments, Canada bound its total Aggregate Measurement of Support 
(AMS) at Can$4.3 billion annuall y. Between 2007 and 2011, Ambe r box support has oscillated 
between Can$3 billion and Can$3.5 billion (Table 4. 3). However, a large share of this support was 
within Canada's de minimis  provisions, and is therefore exempted from WTO commitments. This 
has, hence, led to a much lower total AMS. For 2011, current total AMS support amounted to 
Can$522 million, and represented 12.1% of Canada's bound total AMS. A majority of this support 
is provided in the form of market price support  to dairy products. Green-box type support has 
remained relatively stable, accounting for about 47% of total support notified to the WTO.  
                                               
19 Eligible animal products include: lambs, cow calves , steers, milk-fed calves, grain-fed calves, piglets, 
hogs, eligible plant products include cereals,  grain corn, oilseeds, potatoes, and apples. 
20 AAFC (2014a). WT/TPR/S/314 • Canada 
 
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  Table 4.3 Canada's domestic support, 2009-11  
(Can$ million) 
  2009 2010 2011
Measures exempt from the reduction commitment ("Green box")  
Federal and federal/provincial 2,101 2,238 2,064 
Provincial 587 616 663 
Total Green Box 2,688 2,854 2,727 
Aggregate Measurement of Support (Amber box) 
  Product-specific AMS 1,456 867 872 
   - Market price support 548 461 508 
   - Direct payments 799 399 362 
   - Other supports 109 8 3 
  Non-product specific support 1,561 2,241 2,196 
Total Amber Box 3,016 3,108 3,068 
Less, De minimis     
  - Product-specific  61 375 350 
  - Non-product-specific  1,561 2,241 2,196 
Current total AMS 1,395 492 522
Bound total AMS 4,301 4,301 4,301
Source: WTO Documents G/AG/N/CAN/98, 14 April 2014; G/AG/N/CAN/96, 13 March 2013; G/AG/N/CAN/90, 
30 April 2012; G/AG/N/CAN/86, 14 October 2011; and AAFC (2014) Farm Income, Financial 
Conditions and Government Assistance, Data Book 2013 . Viewed at: http://www.agr.gc.ca/ 
eng/about-us/publications/economic-publication s/alphabetical-l isting/farm-income-financial-
conditions-and-government-assistance-data-book-2013/?id=1392131614380. 
4.29.  Preliminary estimates from the authorities put the 2012 total AMS at about Can$850 million, 
well below the annual commitment. The 2013 figure is expected to be similar given favourable 
crop and livestock conditions. In particular, price-related support to most products is expected to 
remain below the 5% de minimis  level (with the exception of milk and sheep). Total 
non-product-specific support is expected to be below the 5% de minimis  level as well. 
Table 4.4 Evolution of su pport and protection, 2008-13  
(Can$ million) 
 2008 2009 2010 2011 2012 2013
Producer Support Estimate (PSE) 6,184 7,646 7,282 7,435 7,795 6,210 
Support based on:       
 - Commodity outputs 2,764 4,354 4,191 4,264 4,967 4,320 
  - Price Support 2,761 4,352 4,191 4,264 4,967 4,320 
  - Milk 1,849 3,071 2,977 2,606 3,071 2,701 
  - Poultry 493 450 353 791 920 777 
  - Eggs -7 116 159 206 244 200 
 - Other commodities 426 714 702 661 732 642 
 - Payments based on output 2 2 - - - - 
 - Payments based on input use 535 472 459 501 503 414 
 - Payments based on A/An/R/I 2,767 2,486 2,510 2,592 2,233 1,422 
 - Payments based on non-commodity criteria - 285 57 15 - - 
 - Miscellaneous payments 118 50 66 63 93 53 
PSE (as a percentage of gross farm receipts)  13.49 17.22 16.50 14.85 14.51 11.60 
Producer NPC 1.07 1.12 1.11 1.10 1.11 1.09 
Producer NAC  1.16 1.21 1.20 1.17 1.17 1.13 
Total value of production (at farm gate) 42,409 41,118 41,050 46,900 50,893 51,653 
Note: A/An/R/I: Area, animal numbers,  farm receipts or farm income. 
 NPC: nominal protection coefficient. Ratio betwee n the average price received by producers and the 
border price (average producer pr ice includes payments based on current output, e.g. deficiency 
payments). 
 NAC: nominal assistance coefficient. Producer NAC is the ratio between the value of gross farm 
 receipts (including support) and gross farm receip ts valued at border pr ices (measured at farm 
 gate).  
Source: OECD (2014), "Canada", in Agricultural Policy Monitoring and Evaluation 2014: OECD Countries, OECD 
Publishing. Viewed at: http://dx.doi.org/10.1787/agr_pol-2014-7-en.  
4.30.  Considering other measures of support, Canada's Producer Support Estimate (PSE) 
calculated by the OECD was 11.6% of the total value of production at farmgate in 2013, down WT/TPR/S/314 • Canada 
 
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  from 17.2% in 2009 (Table 4.4). Canada's PSE is also considerably lower than the average for the 
OECD as a whole, which was 18.3% in 2013.21 
4.1.6  Selected sub-sectors  4.1.6.1  Wheat and barley 
4.31.  Although Canada's production of wheat represents only about 3% of world production, it is 
still the sixth largest producer of this crop and a major player in its international trade. During the 2013-14 crop year, wheat production reached a record level of 37.5 million tons due to favorable 
weather conditions (Table 4.5). Wheat is also an important source of farm cash receipts. In 2013, 
it provided Can$5.5 billion in farm cash receipts, accounting for about 10% of total farm cash receipts.
22 Canada is an important producer and export er of barley (seventh and sixth largest in 
the world, respectively, in 2011). Imports of both wheat and barley are negligible. Producer Single 
Commodity Transfers (Producer SCT) for wheat an d barley represented respectively 1.5% and 
2.5% of gross farm receipts during the crop year 2013-14.23 
Table 4.5 Indicators for selected  agricultural commodities, 2000-14  
 2000-01 2005-06 2010-11 2011-12 2012-13 2013-14a 
Wheat (including durum) 
 Production ('000 tons) 26,536 25,749 23,300 25,288 27,206 37,530 
 Imports ('000 tons) 60 27 69 78 74 55 
 Exports ('000 tons) 17,109 15,699 16,184 17,500 19,578 23,474 
 Average Price, durum 253 189 300 345 290 220 
 Average Price, wheat 191 186 318 290 285 205 
 Producer SCT (Can$ million) 109 60 80 69 43 122 
 Percentage SCT (%) 3.0 1.8 1.7 1.3 0.6 1.5 
Barley  
 Production ('000 tons) 13,229 11,678 7,627 7,892 8,012 10,237 
 Imports ('000 tons) 40 46 43 14 19 9 
 Exports ('000 tons) 2,641 2,975 2,017 2,059 2,184 2,390 
 Average Price 129 110 188 225 279 188 
 Producer SCT (Can$ million) 57 41 40 37 10 40 
 Percentage SCT (%) 4.4 4.6 3.1 2.9 0.6 2.5 
Note: SCT: Sum of transfers to producers granted to  a single commodity. The % SCT is expressed a share 
of gross farm receipts fo r the specific commodity. 
a AAFC forecast. Source: Statistics Canada, and OECD (2014) "Producer and Consumer Support Estimates", OECD Agriculture 
Statistics Database, doi. Viewed at: http://dx.doi.org/10.1787/agr-pcse-data-en. 
4.32.  The Canada Grain Act is the main framework governing grain products such as wheat and 
barley. This legislation establishes the Canadian Grain Commission (CGC) as the federal agency tasked with the mandate, inter alia , of certifying the quality and the safety of grains, and 
overseeing quantity assurance at export. A major amendment to the legislation was introduced in 
2014 under the Fair Rail for Grain Farmers Act .
24 The amendment provides the CGC with the 
authority to address non-performance by grain companies in their contracts with producers, and to 
arbitrate any related dispute. The legislation requires contracts to include a penalty clause that 
would be paid if the company fails to take possession of the grain during the contracted delivery period. 
                                               
21 OECD online information. Viewed at: http://stats.oecd.org/Index.aspx?QueryId=59239&lang=en . See 
OECD (2014). 
22 The figure includes payments from marketing boards , Statistics Canada online information. Viewed 
at: http://www.statcan.gc.ca/tables-table aux/sum-som/l01/cst01/agri03a-eng.htm  [11.02.15]. 
23 The Producer SCT is the annual monetary value of  gross transfers (from cons umers and taxpayers) to 
producers arising from policy meas ures directly linked to the production of a single commodity. 
24 The Act was also amended in 2012 to streamline certain elements of the legislation, including the 
elimination of certain services; and the move towards an insurance-based system. WT/TPR/S/314 • Canada 
 
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  4.33.  A major reform to the grain industry was the dismantlement of the monopoly in the 
marketing of wheat and barley. Until 2012, wheat and barley farmers in the western provinces 
(Alberta, Manitoba, Saskatchewan and part of Br itish Columbia) were required to market their 
products through the Canadian Wheat Board (CWB). The Marketing Freedom for Grain Farmers 
Act25 signaled a move towards a more open marketing system by dismantling this monopoly and 
providing for a five-year transition period that would lead to a fully open market, and potentially to a full private ownership of the Board.
26 In the meantime, the CWB retains federal government 
guarantees on borrowing and initial payments. The legislation also opened up the possibility for 
the Board to engage in the marketing of other crops. Since the monopoly was removed, a number 
of other companies are competing with CWB in  the marketing of wheat and barley. The CWB 
expanded its business to include the marketing of canola and peas, and is planning on submitting 
a commercialization plan ahead of the legislated timetable of 31 July 2016. 
4.34.  Imports of wheat, barley and their products are subject to tariff rate quotas, administered 
on a marketing year basis (Table 4.1). Outside the quotas, normal tariffs apply at levels of up to 
49%. Due to market dynamics, fill rates are generally low for wheat and barley. 
4.35.  Transportation and handling is the main challenge facing the Canadian grain industry, as a 
majority of the production is exported either in bulk or processed, and therefore has to be 
transported over long distances (mainly using the ra il system). In 2013, the conjunction of record 
crop yields and extreme cold weather added a signif icant strain on the handling and transportation 
system. To address this issue, the Fair Rail for Grain Farmers Act  was enacted to amend the 
Canada Transportation Act . The time-limited legislative amendments (which will expire in 2016 
unless extended by Parliament), give the Minister  of Transport and Minister of Agriculture and 
Agri-Food the right to set minimum weekly targets on volume of grains transported by railways, 
and impose financial penalties for non-performance (up to Can$100,000 per violation). The 
amendments also expanded shippers' abilities to choose a different railway by extending the 
interswitching27 limits from 30km to 160km, thereby fostering more competition. 
4.1.6.2  Milk and dairy products 
4.36.  The dairy industry is the third largest contributor to Canada's agriculture and agri-food 
output, after the grains and red meat industries.28 It generated nearly Can$6 billion in farm 
revenues in 2013 (Table 4.6). The industry relies on more than 12,000 dairy farms, located mostly in the provinces of Quebec (49.2%) or Ontario (32.3%). The industry is on a concentration path, 
with the number of farms declining by 10% be tween 2008 and 2013, and about 75% of the milk 
production being processed by only 14% of the processing plants (owned by the three largest 
processors). Support levels for the dairy industry  remain high; the Producer SCT as a share of 
revenue was 43.8% in 2013. The overall framework and regulation of the dairy sector has not 
changed significantly since the last review. 
Table 4.6 Selected indicators of  the Canadian dairy sector, 2008-13  
 2008 2009 2010 2011 2012 2013
Farming sector   
 Number of dairy farmsa 13,587 13,214 12,965 12,746 12,529 12,234 
 Total net farm receiptsb
(Can$ million)  5,306.3 5,449.9 5,524.2 5,815.5 5,917.8 5,916.1 
 Dairy manufacturing shipments 
(Can$ million)  12,793.6 13,523.4 14,150.0 14,042.9 14,699.3 15,744.5 
 Average farm milk price (Can$/hl)  71.94 73.26 74.27 76.45 75.63 77.12 
 Milk production ('000 hl)  75,720 76,412 76,525 77,547 79,576 77,977 
 Milk quota (in million kg of butterfat) 299.3 297.5 300.9 308.5 305.8 .. 
                                               
25 The Marketing Freedom for Grain Farmers Act came into force on 1 August 2012. 
26 In this respect, the Ac t mandates that the Corporation submit an application for continuance under 
one of the following Acts for the Minister's approval : the Canada Business Corporations Act, the Canada 
Cooperatives Act, or the Canada Not-for-profit Corporations Act. 
27 Interswitching allows shippers to ship goods on the rail network using a different railway company. In 
general, a shipper cannot request inte rswitching when the loading or the unloading point is more than 30 km 
from an interswitching point. Therefore, the extens ion of the interswitching limit from 30km to 160km is 
expected to foster competition among railway companies, and give shippers access to alternative rail services.  
28 AAFC (2014c). WT/TPR/S/314 • Canada 
 
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   2008 2009 2010 2011 2012 2013
Processing sector       
 Number of plants 465 480 455 455 452 459 
 Fluid milk sales ('000 hl) 29,483 29,400 29,517 29,245 28,934 28,463 
 Industrial milk ('000 hl) 46,237 47,012 47,008 48,302  50,642 49,513 
Trade (Can$ million)       
 Exports 254.9 229.6 227.2 252.0 237.4 262.0 
 Imports 678.9 572.7 610.4 669.9 677.4 752.6 
Support       
 Producer SCT (Can$ million) 1,849 3,071 2,977 2,606 3,071 2,701 
 Percentage SCT (%) 33.4 54.8 52.3 43.3 50.4 43.8 
.. Not available. 
a Farms with shipments of milk or cream as of 1st August. 
b The value includes transportation and handling costs,  and other fees. 
Source: Statistics Canada, and OECD (2014), Producer and Consumer Support Estimates , OECD Agriculture 
Statistics Database. Viewed at: http://dx.doi.org/10.1787/agr-pcse-data-en. 
4.37.  The Canadian Dairy Commission (CDC) is a federal Crown corporation which plays a central 
role in the administration and coordination of the dairy industry. Established under the Canadian 
Dairy Commission Act, its objectives are "to provid e efficient producers of milk and cream with the 
opportunity to obtain a fair return for their labour and investment and to provide consumers of 
dairy products with a continuous and adequate supply of dairy products of high quality".29 
4.38.  Milk production and marketing are regulate d by provincial marketing boards and agencies. 
Food safety inspection for fluid milk and dairy products sold within a province falls under provincial 
jurisdiction, whereas the safety of inter-provincial and international movements of dairy products is under the mandate of the Canadian Food Inspection Agency. 
4.39.  The dairy sector is regulated through a domestic system of supply management. The 
system relies on three pillars: production controls (through a quota system), price controls, and import controls.
30 The milk market is subdivided into the fluid milk market (about 40% of milk 
production), and the industrial market. The industrial market is jointly managed through a 
federal-provincial agreement known as the Nati onal Milk Marketing Plan, implemented by the 
Canadian Milk Supply Management Committee (CMS MC). The CMSMC sets the industrial milk 
production target. Provincial shares are established according to the National Milk Marketing Plan. 
Each year, the CDC reviews and establishes support prices (prices are the prices at which the CDC 
purchases and sells butter and skim milk powder within the framework of its various programmes) for butter and skim milk powder. In doing so, the Commission takes into account factors such as 
production costs, market conditions, the overall demand for milk and dairy products, and 
estimated fair return factors. Provincial milk mark eting boards and agencies use this information to 
determine the price paid by processors for the milk that is used in the production of butter, skim 
milk powder, cheese, yogurt, ice cream and other processed foods. Fluid milk commands a higher 
price compared to industrial milk.  
4.40.  The overall quota is reviewed every year depending on the underlying demand. Between 
2008 and 2012, the overall quota for industrial and fluid milk increased by 2.2% to 
305.8 million kg of butter fat. This overall quota is allocated to farmers in accordance with the 
quotas (production rights) they own. Typically, a quota allows a farmer to produce 1kg of butter 
fat a day. This is approximately equivalent to 25 liters of milk, the daily production of a dairy cow. 
The quota is a negotiable right. Producers may tr ade quotas between themselves, subject to rules 
set by provincial marketing boards and agencies. Th eir prices are capped in some provinces. Such 
is the case of the provinces of Nova Scotia, New Brunswick, Prince Edwa rd Island, Quebec and 
Ontario, where quota prices are capped at Can$ 25,000 per kilogram of butterfat. In the Western 
provinces (Manitoba, Saskatchewan, Alberta and British Columbia), prices have varied from 
Can$29,000 to Can$42,500 per kilogram of butterfat. The quota price acts as an "entrance fee" to 
the market, which can result in a barrier to entry, and is likely to hinder the competitiveness of the 
sector, especially for exports. Between 2008 and 2 012, exports from the dairy sector represented 
less than 5% of total net farm receipts. Provinces have put in place various programmes to facilitate entry into the sector. Managed by pr ovincial milk marketing boards, these programmes 
                                               
29 Canadian Dairy Commission Act (R.S.C., 1985, c. C-15). 
30 The supply management system also applies to  poultry (chicken and turkey), and eggs.  WT/TPR/S/314 • Canada 
 
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  typically offer to a limited number of new entrants , preferential access to quotas (through quota 
loans and/or privileged access on provincial quota exchange markets).  
4.41.  As part of the supply-management system, imports of most dairy products are subject to 
tariff-rate quotas (TRQs) administered by DFATD. Import quotas are established at pre-set levels. 
For example, the annual TRQ for cheese and butt er are established respectively at 20,412 and 
3,274 tonnes. In the case of the butter TRQ, the CDC is the first receiver of imports. Permits are allocated to the CDC with the understanding that  the imported butter be directed for further 
processing. TRQ access quantities are provided in table 4.1. Out-of-quota rates are very high, and 
can be nearly 300% for butter, and over 245% for cheese.
31 
4.42.  The National Dairy Regulation and Code provides requirements for milk production and 
transportation as well as for the processing of dairy products. It is the result of collaborative 
efforts by the provinces, food and health safety  agencies, and the industry to harmonize basic 
regulations governing the production, transportation and processing of milk. 
One of the weaknesses described regarding the suppl y managed system is the priority it gives to 
famers over consumers. Supply management result s in limited competition, both domestic and 
international. The target price to producers is largely based on average production costs and the system has not created incentives for producers to lower their production costs over the years. It 
therefore guarantees stable revenue for producers while transferring the cost onto consumers. In a 
context of growing global demand for dairy products, the system also hinders the competitiveness of the industry and may be preventing it from ta king advantage of international markets. Finally, 
the system is maintained at the cost of trade ba rriers (quotas, and very high out of quota tariff 
rates). 
4.1.6.3  Red meat and livestock industry 4.43.  Canada has a strong red meat and livestoc k industry. The industry includes beef and veal, 
pork, lamb and mutton, goat, rabbit, horse, as well as venison and bison. As of 1 January 2014, 
inventories of livestock include an estimated number of 12.2 million heads of cattle and calves, 13 million heads of hogs, and 873,900  heads of sheep.
32 In July 2014, there were approximately 
81,975 beef farms and ranches. Western Canada accounts for 76% of Canada's cattle inventory 
with approximately 41% coming from Alberta. Also in July 2014, there were 7,035 hog farms. Ontario and Quebec account for 56% of Canada's hogs with 33% in Quebec. In 2013, the sales of cattle, calves and hogs provided Can$10.9 billion in cash receipts, accounting for nearly 20% of 
total farm cash receipts.
33 They constitute a major source of farmers' income. Shipments from the 
red meat industry were worth Can$16.3 billion in 2013. Canada is a major exporter of beef and pork, with the United States being the major market for Canada's red meat industry. Exports 
totaled some Can$4.5 billion in 2013. 
4.44.  The legislative framework for the meat industry remains the Meat Inspection Act  (MIA) of 
1985
34 and its related regulations, and the Food and Drugs Act  (food safety). The MIA provides, 
inter alia , rules governing the international and interprovincial trade in meat products, the 
registration of meat establishments, and the inspection of animals and meat products. A provincial or federal registration is required for an establis hment to operate in one of the following activities: 
the slaughter of food animals; the processing , packaging and labelling or storage of meat 
products; the refrigeration or freezing of meat products; and the inspection of imported meat 
products. Only meat from federally-registered establishments can be traded internationally or between provinces.
35 Applications for federal registration are processed by the CFIA. The 
legislation also requires operators of registered meat establishments to obtain a licence from the 
CFIA. Licences are issued for a period not exceeding one year.  
                                               
31 More precisely, 298.5% but not less than Can$ 4.0/kg for butter, and 245.5% but not less than 
Can$4.52/kg for cheese. 
32 AAFC online information. Viewed  at: http://www.agr.gc.ca/eng/indu stry-markets-and-t rade/sta tistics-
and-market-information/by-product-sector/red-meat-and-livestock/red-meat-market-information-canadian-industry/inventory/livestock-population-of-canada/?id=1415860000018. 
33 AAFC online information. Viewed  at: http://www.agr.gc.ca/eng/indu stry-markets-and-t rade/sta tistics-
and-market-information/by-product-sector/red-meat-and-livestock/red-meat-market-information-canadian-
industry/industry-profile/?id=1415860000002 [07.02.2015]. 
34 Meat Inspection Act (R.S.C., 1985, c. 25 (1st Supp.)), last amended in 2005. 
35 Meat from provincially-registered establishments can be shipped only within the province. WT/TPR/S/314 • Canada 
 
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  4.45.  Operators of registered establishments are required to develop, implement and maintain 
Hazard Analysis Critical Control Point (HACCP) plans and other control programmes. Meat slaughter and processing facilities are required to process meat products in accordance with standards set out in the legislation. Meat and me at products are to be packaged and labelled 
according to the provisions of relevant pieces of legislation.
36 It is estimated that federally 
registered establishments account for approxim ately 95% of animals slaughtered in Canada. 
Inspection activities in federally-registered meat establishments are performed by the CFIA. 
4.46.  The MIA also governs the international trade in meat and meat products. An authorization 
from a CFIA inspector is required prior to the exportation of any meat. Furthermore, the exporter must provide satisfactory evidence that meat pr oducts meet the requirements of the destination 
country. On the import side, the country of origin (and any other country in which the meat was 
processed) must possess meat inspection systems, and the foreign processing facility must hold a 
valid approval from the Canadian authorities. As of 11 February 2015, foreign establishments from 
33 countries were eligible to ex port meat products to Canada.
37 
4.47.  Any import shipment of meat products must meet the nationally prescribed standards 
(including packaging and labelling requirements ) before it is allowed to enter Canada. The 
shipment must be accompanied by a valid Official Meat Inspection Certificate issued by the 
competent authority of the exporting country. Relevant documents and certificates are to be 
submitted to the National Import Service Centre (NISC) for review. Through the Import Control and Tracking System, the NISC verifies information such as the eligibility of the country and the establishment, and the validity of the shipping information. The CBSA will not allow the shipment 
to enter Canada unless the importer provides a pr oof that the CFIA has reviewed the documents, 
determined the eligibility of the shipment and taken over its tracking. 
4.48.  The MFN tariff on animals and animal products ranges from 0 to 391.6% with an average of 
47% (Table 3.5). Beef and veal are subject to import controls under the Export and Import 
Permits Act . Under the legislation, an import permit is required for imports from countries with 
which Canada does not have a bilateral trade agreement covering these products. The annual 
quota pool of 76,409 tonnes is essentially reserved for Australia (45.8%) and New Zealand 
(38.7%). The remaining portion is available on an MFN basis (including to exporters from the reserved pool once country-specific reserves are fully  utilized). The quota fill rate for beef and veal 
was 61.1% in 2012 (compared to 55% in 2008). 
4.1.7  Fisheries 
4.49.  Canada is a major player in the international trade in fish and fishery products. According to 
FAO statistics
38, Canada was the 7th largest exporter and the 16th largest importer of fish and fish 
products in 2012. Since 2011, fish exports and imports have been increasing gradually to reach 
respectively Can$4.9 billion and Can$3.4 billion in 2014 (Chart 4.2). The trade balance has remained relatively stable with a surplus hovering around Can$1.4 billion for most of the period. 
The fisheries industry comprises three main activi ties: commercial fishing, aquaculture, and fish 
processing.  
                                               
36 These include: the Meat Inspection Act; the Food and Drug Regulations; and the Consumer Packaging 
and Labelling Regulations. 
37 The list of eligible foreign esta blishments is available online at: 
http://inspection.gc.ca/active/scripts/meavia/reglist/forlist.asp?lang=e.  
38 FAO (2014). WT/TPR/S/314 • Canada 
 
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  Chart 4.2 Trade of fish and fish products, 2011-14 
(Can$ billion) 
0123456
2011 2012 2013 2014
Exports
 Imports Trade balance
 
Source: Fisheries and Oceans Canada. Viewed at: http://www.dfo-mpo.gc.ca/stats/trade-commerce/can-
eng.htm. 
4.50.  The Fisheries Act39 is the main federal statute governing for the management of fisheries 
resources in Canada. The legislative framework also includes: the Department of Fisheries and 
Oceans Act  (establishing the powers, duties, and functions of the Minister of Fisheries and 
Oceans); the Oceans Act  (providing for the development and implementation of an oceans 
management strategy); the Coastal Fisheries Protection Act  (regulating access of foreign fishing 
vessels to Canadian fisheries waters and implementing international fisheries agreements to which Canada is party); and the Species at Risk Act  (preventing wildlife species from being extirpated or 
becoming extinct, providing for the recovery of w ildlife species that are extirpated, endangered or 
threatened as a result of human activity, and mana ging species of special concern to prevent them 
from becoming endangered or threatened). 
4.51.  The Department of Fisheries and Oceans (DFO or Fisheries and Oceans Canada) has the 
lead role in the management and protection of fisheries resources. DFO monitors fish landings and provides a certification that attests that fish and fish products originate from legal fisheries, thereby addressing concerns related to illegal,  unreported and unregulated (IUU) fishing. Fish 
inspection regulation and labelling requirements are under the jurisdiction of the Canadian Food 
Inspection Agency. Access to commercial fisheries is restricted to eligible harvesters through a federal licensing regime. An online system is used by DFO to issue commercial and 
commercial-communal fishing licenses nationally, as well as marine recreational fishing licenses in 
Eastern Canada (Atlantic Canada and Quebec).
40 Aquaculture management is under a shared 
jurisdiction. DFO works in concert with provincial and territorial authorities, as well as 
First Nations41, to administer a regulatory framework for aquaculture planning and management. 
The aquaculture sector is generally regulated by provinces and territories. In British Columbia and in Prince Edward Island, DFO both licenses and manages the aquaculture sector. 
4.52.  Management decisions regarding fisherie s resources are implemented through Integrated 
Fisheries Management Plans and Conservation Ha rvesting Plans. They are updated as per the 
management cycle for each of the major species harvested, and cover measures such as: total allowable catches, licensing, number of traps, season al closures, area and/or gear restrictions, etc. 
                                               
39 Fisheries Act, R.S.C., 1985, c. F-14. Last amended on 25 November 2013. 
40 DFO online information. Viewed at: http://www.dfo-mpo.gc.ca/fm-gp/sdc-cps/eng-comm/faq/new-
nouveau-eng.htm. 
41 The First Nations are the various aboriginal people s in Canada who are neithe r Inuit nor Métis. There 
are currently over 630 recognized First Nations governments or bands spread across Canada. WT/TPR/S/314 • Canada 
 
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  Through its legislative and regulatory authority, DFO also guides the management of marine 
resources using tools such as the Precautionary Approach.42 
4.53.  Under the  Fish Inspection Act , imports of fish and fish products (other than for personal 
consumption or use) are subject to licensing. Impo rters can apply for either a fish import licence 
(Basic Licence) or a Quality Management Program Import Licence (QMPI Licence). Licenses are 
valid for one year, and subject to a fee of Ca n$500 for the Basic Licence or Can$5,000 for the 
QMPI Licence. Under the QMPI Licence, importers must develop a plan that describes how they will 
control and verify that imports meet regulatory requirements. This includes conducting sampling 
and testing in accordance with the requirements  set out by the regulations. Some species of 
molluscan shellfish (live or raw) are subject to SPS requirements, and may be imported only from 
specific countries.43 Import prohibitions apply to live fr eshwater mitten crab and puffer fish.  
4.54.  IUU fishing is a global problem that does not spare the Canadian industry, as it undermines 
profitable opportunities for legitimate fishing activities. Over 80% of Canadian fish and seafood products are exported. Activities of foreign ve ssels fishing in Canadian fisheries waters are 
regulated by the Coastal Fisheries Protection Act . The legislation also regulates the harvesting of 
sedentary species on the continental shelf. Amendments have been proposed to the Act in order to provide for the implementation and ratification of  the Port State Measures Agreement (PSMA), an 
international agreement aimed at preventing illegal fish catches from entering international 
markets through ports.
44 Under the terms of the Agreement, foreign vessels are required to 
provide advance notice and request permission for port entry. Countries may seek to order their fishing vessels to port in order to verify compliance. DFO views the implementation of this 
Agreement as "cost-effective in preventing, deterring, and eliminating IUU fishing activities around 
the world".
45 The authorities indicated that Canada is working towards ratification of the PSMA. 
Another major proposed amendment to the Act  is the provision for the prohibition of the 
importation of illegally acquired fish and marine plants, and related activities such as their 
transportation, sale or distribution. Any contravention to the prohibition constitutes an offence and can be subject to a fine of up to Can$500,000. 
4.55.  The Freshwater Fish Marketing Corporation (FFMC) is a state-trading entity established 
under the Freshwater Fish Marketing  Act. The legislation provides FFMC with the exclusive right to 
market and trade fish in interprovincial and export markets, in designated products of the freshwater fisheries supplied from the participating jurisdictions. The objective is to market fish in 
an orderly manner, increase returns to fishers, and promote markets and export trade in 
freshwater fish. There are two participating jurisd ictions: Manitoba and the Northwest Territories. 
In 2014, the value of freshwater fish exported by FFMC was Can$57.3 million.
46 The FFMC is 
required by law to operate on a self-sustaining basis. The FFMC uses a payment structure that 
determines initial and final payments under a pooling system. The final payments are determined by allocating receipts and costs by fish species. FFMC's client base is largely aboriginal.  
4.56.  DFO also administers a number of programmes and initiatives in the aquaculture industry. 
Launched in 2008 with a Can$70 million funding, the Sustainable Aquaculture Program aims at enhancing the sustainable development of th e aquaculture industry. Under the programme, 
several regulations and policies were streamlined and resulted in an improved regulatory 
management. The programme has been renewed over the period 2013-18 with a Can$54 million 
funding.  
4.57.  Operated between 2008 and 2013, the Aquaculture Innovation and Market Access Program 
(AIMAP) aimed at catalyzing private investment in the industry. Under the programme, DFO 
provided non-repayable short-term funding for projects that had the potential to improve the 
                                               
42 Under the UN Agreement on Straddling and Highly Migratory Fish Stocks  (UNFA), countries are 
required, inter alia , to err on the side of caution in the mana gement of fish stocks. Canada ratified the 
agreement on 3 August 1999. UNFA entered into fo rce on 11 December 2001. Guiding principles were 
published in 2003. For more information, see: Privy Council Office (2003). 
43 The list of approved countries is availabl e at: http://www.inspection.gc.ca/food/fish-and-
seafood/imports/molluscan-shellfish/eng/1377987441620/1377987693551. 
44 FAO Agreement on Port State Measures to Preven t, Deter and Eliminate Il legal, Unreported and 
Unregulated Fishing, adopted in 2009. 
45 DFO online information. Viewed at: http://www.dfo-mpo.gc.ca/fm-gp/sdc-cps/eng-comm/faq/new-
nouveau-eng.htm. 
46 These are freshwater fish classified under the following HS codes: 0302, 0303, 0304 and 0305. WT/TPR/S/314 • Canada 
 
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  competitiveness of the industry. According to the authorities, up to Can$4.5 million were made 
available annually. Over the five years duration of the programme, DFO contributed an amount of Can$23.2 million to 163 projects with a combined projects cost of Can$113.2 million. 
4.58.  In November 2010, the Canadian Council of Fisheries and Aquaculture Ministers launched a 
five-year National Aquaculture Strategic Action Plan Initiative, with a view to enhancing and 
advancing economically, environmentally and socially sustainable aquaculture development throughout the country. Under the collaborative initiative, specific actions have been identified in 
three key areas: governance; social license and reporting; and, productivity and competitiveness.  
4.59.  Tariff protection in the fishery sector is rela tively low, with an applied average MFN tariff on 
fish and fishery products averaging 1.2%. The prot ection is not homogenous across fish products, 
as MFN rates range from zero to 11% (Table 3.4).  
4.60.  In 2013, government financial transfers (GFT s) to the fisheries sector were estimated at 
Can$718.6 million, returning to levels similar to the ones over the 2005 to 2008 period. GFTs represented 22% of the total 2013 landed value of Canadian fisheries (including production from 
aquaculture). The provision of infrastructure and unemployment insurance accounted for 51.5% of 
the total support. 
4.2  Mining and Energy 
4.61.  The mining and energy sectors are important to the Canadian economy, contributing 
significantly to employment, exports, tax revenue , and GDP (Tables 4.7 and 4.8). With over 10% 
of the world's proven oil reserves and significant mineral wealth, the sectors are poised to continue 
to contribute to the Canadian economy in the short and long-term. During the review period, there 
were significant impacts on trade and the economy mainly due to fluctuations in energy prices. 
While world energy prices remained relatively low and fluctuating after the financial crisis, U.S. prices have generally remained even lower, particularly impacting Canada and accounting for 
lower export earnings. This trend has had an important effect as the sectors collectively account 
for approximately one-half of total Canadian merchandise exports.
47  
4.2.1  Policy developments 
4.62.  Federal and provincial governments work collaboratively on energy policy through the 
Energy and Mines Ministers process. In 2011  at the annual Energy and Mines Ministers' 
Conference, energy ministers provided guidance to  ongoing collaboration am ong federal, provincial 
and territorial governments on shared priorities. Specifically, collaborative Canadian efforts on 
energy have focussed on the areas of energy e fficiency, responsible oil and gas development, 
electricity reliability, and technology innovation. In addition, in August 2014, Canada's Premiers announced their shared vision and principles for a Canadian Energy Strategy which would update 
the previous 2007 strategy. When finalized
48, the Strategy is expected to promote 
intergovernmental collaboration and transparen cy, address climate change and social and 
environmental responsibility, and ensu re energy security and stability. 
4.63.  Since 2009 Canada has a corporate social re sponsibility (CSR) strategy for the extractive 
sector. This policy is put in place to encourage all Canadian firms working internationally to respect laws, operate transparently, consult with host governments, and implement CSR best practices. 
The CSR best practices include OECD Guidelines for Multinational Enterprises, IFC's Performance 
Standards on Social & Environmental Sustainabili ty, and voluntary principles on security and 
human rights.
49 As of November 2014, the CSR strategy was further enhanced (see Section 2.1.1). 
4.64.  Many resource development and extractive projects are located in or near Aboriginal 
communities. Federal, provincial and territorial governments have a legal duty to consult, and 
where appropriate, accommodate, Aboriginal groups when the Crown identifies conduct that may adversely affect potential or established Aboriginal or Treaty rights. The federal government has 
undertaken significant efforts in recent years to enhance the consistency and effectiveness of 
                                               
47 Statistics Canada, Merchandise Exports, CANSIM Table 228-0059. 
48 The Canadian Energy Strategy document is expected to be finalised in mid-2015. 
49 Natural Resources Canada, Information Bulletin, "B uilding the Canadian Advantage: A CSR Strategy 
for the International Extractive Sector", February 2011. WT/TPR/S/314 • Canada 
 
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  consultations, including through the integration of consultations into project reviews and through 
guidelines for federal officials. Modern treaties may also institute additional legal obligations for the federal, provincial or territorial governments an d for industry proponents operating in modern 
treaty areas, including consultation with Aboriginal treaty groups, economic measures to facilitate 
Aboriginal participation in the resource industry via training, employment and procurement, and 
the development of impact benefit agreements. 
4.65.  In late 2014, the Government enacted the Extractive Sector Transparency Measures Act 
(ESTMA), which established mandatory reporting standards designed to deter corruption through 
reporting and transparency measures. The ESTMA requires that certain extractive entities (i.e., engaged in the commercial development of minerals, oil and natural gas), subject to Canadian law, to report annually on specific payments of Can$100,000 or more made to any 
government in Canada or abroad. The Canadian legislation is broadly aligned with emerging 
international reporting requirements in the United States and the European Union. It is anticipated that the ESTMA will come into force by mid-2015.  
4.66.  The National Energy Board (NEB) is the go vernment's independent federal regulatory body 
for the energy sector, in particular for pipeli nes, energy development, and trade. In 2013 it 
regulated over 100 companies involved in the international transmission of electricity and energy 
products through pipelines and power lines by conducting nearly 300 compliance activities. The 
NEB is established through the National Energy Bo ard Act. Recent implementation of amendments 
introduced through the Jobs, Growth, and Long-ter m Prosperity Act of 2012, make the regulatory 
reviews for projects more predictable and timely, reduce the regulatory burden and duplication, 
and strengthen environmental protection. In addi tion, new regulations enabled the NEB to issue 
Administrative Monetary Penalties (AMPs) to preventatively address contravention and promote compliance with the Act and regulations. The penalties range from Can$25,000 for individuals to a 
maximum of Can$100,000 for companies, per day, per infraction. The Jobs, Growth, and 
Long-term Prosperity Act also introduced changes with respect to pipeline and power lines crossing navigable waterways, requiring the NEB to consider navigation safety before recommendations or 
decisions are made. In 2011 the NEB created an  Action Plan on Safety and Environmental 
Protection to make improvements to worker safety , integrity of installations, damage prevention, 
and emergency preparedness and response. In June 2013, the Action Plan was fully implemented. 
Finally, on 8 December 2013, the Government introduced the Pipeline Safety Act, to further 
strengthen Canada's pipeline safety regime by buil ding on the principles of incident prevention, 
preparedness and response, and liability and comp ensation. The Pipeline Safety Act will enshrine 
the "polluter pays" principle, require companies operating major crude oil pipelines to have a 
minimum of Can$1 billion in financial capacity to respond to leaks, spills and ruptures, and ensure 
that companies remain responsible for their abandoned pipelines. As of February 2015, this Act had not entered into force but remained a key priority.  
4.67.  The Government is also improving the federa l regulatory regime for reviews of major energy 
and mining projects.
50 In 2012, the Government introduced the plan for Responsible Resource 
Development, a systematic and comprehensive plan  to help guide the development of Canada's 
abundant natural resources. The plan helps facilitate investment by modernising the regulatory 
system for project reviews. Implementation includes changes to a number of key statutes 
including a new Canadian Environmental Assessment Act, 2012. The plan was guided by four objectives: (i) make project reviews more predictable and timely (e.g. by setting maximum 
beginning-to-end timelines for environmental assessments and introducing legally-binding 
timelines for key regulatory permitting processes); (ii) reducing duplication in the review process (e.g. substitution and equivalency provisions allow provincial environmental assessments that 
meet the federal requirements to replace federa l assessments and limit the factors the National 
Energy Board can consider in export licence a pplications); (iii) strengthening environmental 
protection (e.g. focusing assessments on major projects that have a greater potential for significant adverse environmental effects and introducing administrative monetary penalties to 
promote compliance and substantial financial penalties for violations); and (iv) enhancing 
Aboriginal consultations (e.g. by better integrating Aboriginal consultations into the assessment and regulatory processes and establishing consultation protocols or agreements with Aboriginal 
groups for project reviews). Implementation of these changes is underway and will benefit major 
projects in the energy and mining sectors.  
                                               
50 Government of Canada (2012a).  WT/TPR/S/314 • Canada 
 
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  4.68.  As part of the Responsible Resource Development Plan, the Government of Canada 
introduced legislation to ensure Canada's regulatory system remains competitive, efficient, and effective in the world. These changes includ ed the implementation of the new Canadian 
Environmental Assessment Act, 2012 and amendmen ts to the Fisheries Act, the Navigation 
Protection Act, and the Species at Risk Act. The regulatory improvements achieved to date 
include: environmental reviews focused on major pr ojects; implementation of a project list based 
on areas of federal jurisdiction; enabling environmental assessment substitution and equivalency 
measures; establishment of an authority for joint regional studies; and legislated timelines for the 
environmental assessment regulatory permit processes.  
4.2.2  Energy 4.2.2.1  Crude Petroleum 
4.69.  The crude oil sector is an important contributor to the Canadian economy, accounting for 
approximately 18%
51 of the total value of merchandise exports and the largest share of Canada's 
total export earnings (Table 4.7). Production and exports climbed steadily during the period, while 
imports declined slightly (Chart 4.3). Canada ex ports the majority of its crude oil production, 
although domestic consumption has been rising slightly during the period. Many of the world's largest oil companies have operations in Canada as it remains open to private investment. While 
there are several hundred companies with operations, the industry is heavily concentrated with the 
10 largest companies accounting for over half of production.
52 M o s t  o f  C a n a d a ' s  r e s e r v e s  a r e  
contained in oil sands and not conventional reserves; the share of oil sands production has risen over the period, while that of conventional prod uction has declined slightly, thus oil sands' 
production now outperforms conventional production. Canada's National Energy Board authorizes 
the import and export of natural gas, and the ex port of oil via long-term licences or short term 
orders. 
4.70.  Canada's oil and gas activities are governed by the Canada Oil and Gas Operations Act, 
R.S.C., 1985, c. O-7, most recently amended on 1 April 2014, which applies on federal lands, and by other legislation including provincial legislation.  Most of Canada's oil and gas production occurs 
on provincial lands, i.e. where the exploitation of  natural resources is under the jurisdiction of the 
provinces. The Canada Oil and Gas Operations Act
53 applies in respect of the exploration and 
drilling for and the production, conservation, processing and transportation of oil and gas in (a) that part of the onshore that is under the administration of a federal minister, (b) Nunavut, 
(c) Sable Island, (d) that part - of the internal waters of Canada or the territorial sea of Canada - 
that is not situated (i) in a province other than the Northwest Territories, or (ii) in that part of the onshore that is not under the administration of a federal minister, and (e) the continental shelf of 
Canada and the waters superjacent to the seabed of  that continental shelf, other than of oil and 
gas in the adjoining area, as defined in section 2 of the Yukon Act. Any work or activity related to the exploration or drilling for oil or gas
54 requires an operating licence or an authorization. As of 
late 2014, amendments to this Act were under parliamentary review. These amendments seek 
primarily to update, strengthen and increase the leve l of transparency of the liability regime that is 
applicable to spills and debris in the offshore areas.  
4.71.  The Canada Petroleum Resources Act R.S.C. 1985, c. 36 (2nd Supp.)  regulates interests in 
petroleum in relation to frontier lands, as defined under that Act, that are not subject to an 
in-force federal-provincial offshore shared management agreements. Provincial legislation regulates interests in petroleum in relation to provincial lands. Other legislation includes: the 
Energy Monitoring Act; the Energy Supplies Emergency Act; the Oil Substitution and Conservation 
Act (R.S.C., 1985, c. O-8); the Northern Pipeline Act (R.S.C., 1985, c. N-26); the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act (S.C. 1987, c. 3) 
(implements an agreement between the Government of Canada and the Government of 
Newfoundland and Labrador on offshore petrol eum resource management and revenue sharing); 
the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (S.C. 1988, c. 28) (implements an agreement between the Government of Canada and the Government of 
                                               
51 Statistics Canada, Merchandise Exports, CANSIM Table 228-0059. 
52 Natural Resources Canada (2014). 
53 Natural Resources Canada online information. Viewed at: www.nrcan.gc.c a/acts-regulations/59. 
54 Including the production, conservation, proc essing or transportation of oil or gas. WT/TPR/S/314 • Canada 
 
- 128 - 
 
  Nova Scotia on offshore petroleum resource management and revenue sharing).55 The 
Canada-Newfoundland and Labrador Atlantic A ccord Implementation Act and the Canada-Nova 
Scotia Offshore Petroleum Resources Accord Impl ementation Act were amended during the review 
period in order to increase the level of safety and transparency of offshore petroleum activities. 
Additional amendments under parliamentary review  as of late 2014 seek primarily to update, 
strengthen and increase the level of transparency of the liability regime that is applicable to spills and debris in the offshore areas.   
4.72.  The Indian Oil and Gas Act (IOGA)
56 and its associated regulations cover oil and gas activity 
on First Nation reserve lands. The modernized Indian Oil and Gas Act received Royal Assent in May 2009 and will come into force once its regulations have been completed, currently projected to be in 2016. 
4.73.  The National Energy Board is the body in charge of issuing operating licences. An operating 
licence expires on the thirty-first day of March immediately after the day on which it is issued and may be renewed for successive periods not exceeding one year each. The Board may determine 
the specific conditions for issuing the licence. The issuance of an authorization may have attached 
conditions such as: (a) requirements relating to liability for loss, damage, costs or expenses; (b) requirements for the carrying out of environmental programmes or studies; and 
(c) requirements for the payment of expenses incu rred by the National Energy Board in approving 
the design, construction and operation of production facilities and production platforms.  
Table 4.7 Overview of Canada 's Crude Oil Industry, 2013 
Criteria Amount 
Proven reserves  173 billion barrels (3rd in the world) 
Producer rank 5th largest world producer 
Number of establishmentsa 4,809 
Oil exports as a share of total merchandise exports 18%  
Exports, export market 74% of prod uction, 97% to the United States 
a Includes oil and natural gas establishments. 
Source: Viewed at: http://www.nrcan.gc.ca/energy/crude-petroleum/4541, and https://www.ic.gc.ca/ 
app/scr/sbms/sbb/cis/definition.html?code=211&lang=eng; and Energy Market Fact Book 2014-15. 
                                               
55 Natural Resources Canada online information. Viewed at: http://www.nrcan.gc.ca/acts-
regulations/59. 
56 Minister of Justice (2015). WT/TPR/S/314 • Canada 
 
- 129 - 
 
  Chart 4.3 Oil production and trade, 2010-14 
010,00020,00030,00040,00050,00060,00070,00080,00090,000100,000
050100150200250
2 0 1 02 0 1 12 0 1 22 0 1 32 0 1 4
Crude oil production Export volumes Import volumes Export valuesVolume  (million cubic metres) Value (Can$ million)
 
Source: Statistics Canada, CANSIM Tables 126-0001 and 228-0059. 
4.2.2.2  Natural Gas 
4.74.  Natural gas is another important sector for Canada, as it is the world's 5th largest producer 
and 4th largest exporter, accounting for 8% of world exports in 2013; it ranks 19th in terms of 
world proven reserves (Table 4.8). In 2013, Canada produced 13.7 billion cubic feet of natural gas. During the review period, natural gas production  and exports fell slightly, with export values 
dipping in particular in 2012 as North American prices fell to record lows and recovering in 
2013-14 (Chart 4.4). All exported natural gas is de stined to one market, the United States. With a 
view to diversify export markets, industry pr oponents are pursuing a variety of LNG export 
proposals that are moving through the established regulatory review process. While Canada is not 
yet exporting LNG, current proposals have an expe cted export capacity of 302 million tonnes per 
year, which is equivalent to 40.8 billion cubic feet of natural gas per year and almost 3 times current natural gas production. Thus, according to the authorities, it is not expected that all these 
proposals will be approved or developed. The exportation of natural gas and LNG requires 
authorization from the National Energy Board through either a short term export order or a long term export licence of up to 25 years. When cons idering long-term natural gas export licences, the 
National Energy Board assesses whether Canada's supply of natural gas is large enough to easily 
accommodate domestic needs as well as the proposed LNG exports, while having regard to the trends in the discovery of gas in Canada. Foll owing National Energy Board approval, long-term 
export licences require Governor in Council approval before they can be issued. 
4.75.  As with the oil sector, the natural gas sector is governed by the Canada Oil and Gas 
Operations Act, where this Act applies, and by other legislation including provincial legislation (See section 4.2.2.1). Other legislation covers the transmission of natural gas via pipelines.  
Table 4.8 Overview of Canada's  Natural Gas Industry, 2013 
Criteria Amount 
Proven reserves  71 Tcf (19th in the world) 
Producer rank 5th largest world producer 
Gas exports as a share of total exports 2.2% 
Exports, export market 57% of production, 100% to the United States 
Source: Energy Market Fact Book 2014-15. WT/TPR/S/314 • Canada 
 
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  Chart 4.4 Gas production and trade, 2010-14 
02,0004,0006,0008,00010,00012,00014,00016,000
020406080100120140160
2010 2011 2012 2013 2014
Gas production Export volumes Import volumes Export valuesVolume (billion cubic metres) Value (Can$)
 
Source: Statistics Canada, CANSIM Tables 131-0001 and 228-0059. 
4.2.2.3  Electricity 
4.76.  Public ownership of electricity utilities is the norm in Canada, with a single, 
vertically-integrated crown corporation responsible for electricity generation, transmission and distribution within each province. There are some exceptions: Alberta has an open electricity 
market while Ontario has a hybrid market. 
4.77.  A significant change over the review peri od was Ontario's closure of all coal-fired power 
plants. In addition, Canada has implemented regulations on greenhouse gas emissions from 
coal-fired electricity plants that effectively ban co nstruction of new coal-fired generation that does 
not utilized capture and storage technology. Major hydroelectric projects are being pursued in British Columbia, Manitoba, Quebec and Newfoundland and Labrador. In addition, all provinces have supported, or are supporting, the introduction of non-hydro renewables through various 
mechanisms. Canada continues to support R&D and demonstration of technologies relevant to the 
electricity sector. In October 2014, SaskPower commissioned the world's first integrated carbon capture and storage facility at the Boundary Dam coal plant in Saskatchewan. 
4.78.  Canada's transmission infrastructure is integrated with that of the United States. There are 
34 major transmission lines that connect the two countries and support major two-way power flows (Table 4.9). Much of this trade is enabled by Canada's significant hydroelectric resources, 
which provide flexibility to meet electric dema nd on both sides of the Canada-U.S. border. 
Table 4.9 Overview of Canada 's Electricity Industry, 2013 
Criteria Amount 
Electricity generation (2012)  616 TWh  
Producer rank (2012) 6th largest electricity generation, 3rd largest hydro 
generation, 2nd largest exporter of electricity 
Trade balance  63 TWh exported; 11 TWh imported  
0.5% of total merchandise exports 
Exports, export market  10% of production, 100% to the United States 
Source: Energy Market Fact Book 2014-15. Viewed at: www.nrcan.gc.ca/energymarketsfacts/. WT/TPR/S/314 • Canada 
 
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  4.2.3  Minerals and Mining 
4.2.3.1  Overview 4.79.  Canada's economic and trade performance is closely tied to its mineral and metal wealth. It 
remains the global leader in the production (by volume) of potash, and ranks among the top-five 
global producers of aluminium, cobalt, diamonds, nickel, platinum group metals, salt, sulphur 
(elemental), titanium concentrates, tungsten, and uranium.Mining and mineral processing contributes significantly to the Canadian econom y in terms of GDP, employment, foreign direct 
investment, services and related industries, and capital investments. The sector accounts for over 
3% of Canadian GDP. 
4.80.  As a leader in the extraction and trade of minerals, Canada mines over 60 commodities at 
more than 200 principal producing operations and more than 3,000 stone quarries and gravel pits 
which are located throughout Canada. The commodities with the highest production values are: 
gold, potash, copper, iron ore, nickel, coal, an d diamonds. Together they accounted for almost 
75% of total mining production in 2014 (Chart 4.5). 
Chart 4.5 Canada's mineral production by value, 2014 
Coal
8.7%
Nickel
9.1%Potash
13.1%Others
27.3%
Iron ore
9.8%Gold
15.3%
Copper
11.7%Diamonds
5.0%
 
Note: Total mineral production in 2014 was Can$44,746 million. 
Source: WTO Secretariat, based on Natural Resources Canada (NRCAN), Government of Canada. Viewed at: 
http://sead.nrcan.gc.ca/prod-prod/2014p-eng.aspx. 
4.2.3.2  Trade 
4.81.  Canadian trade in mineral products, wh ich includes ores, concentrates, and semi- and 
final-fabricated mineral products, accounted for 20% of the country's domestic export value and imports accounted for 15%. During the review period, both imports and domestic exports initially 
declined slightly, especially in respect to export s to the European Union, then increased in 2014. 
This decline was mainly attributable to reduced exports of gold destined to the United Kingdom. Overall, gold exports actually increased significantly by 22%, despite declining prices; the volume 
was redistributed to countries outside the EU, in particular to Hong Kong, China; the 
United States; and Switzerland. The overall decline in exports during 2011-13 was mainly attributable to lower volumes and prices for iron and steel, coal, and nickel. The United States is Canada's primary trading partner, accounting for about half of imports and domestic exports. The 
European Union; China; Japan; Hong Kong, China; Mexico; and Peru are also significant trading 
partners (Table 4 .10). 
4.82.  Canada participates in the Kimberley Process Certification Scheme (KPCS) for trade in rough 
diamonds through its Export and Import of Rough Diamonds Act and associated regulations. Thus, 
certificates must accompany imports and exports of rough diamonds, and shipments must be sealed to ensure that the requirements are met under the KPCS. Canadian exporters must WT/TPR/S/314 • Canada 
 
- 132 - 
 
  approach Natural Resources Canada for an application and submit the necessary paperwork and 
present the certificate to the Canada Border Serv ices Agency to be stamped upon exportation. 
Importers must present a valid KPCS certificate to Canadian customs at the point of entry. 
Table 4.10 Trade of minerals and mineral products, by selected countries, 2011-14 
(Can$1,000) 
 2011 2012 2013 2014 
Exports   
United States 45,879,903 42,345,335 43,614,629 46,738,275 
European Union 22,968,346 21,665,866 16,578,546 17,703,502 
China 6,016,219 6,252,404 6,380,278 5,069,148 
Japan 4,107,494 3,642,964 3,857,437 3,456,792 
Hong Kong, China 1,339,286 930,478 3,105,585 2,703,177 
Other countries 15,490,802 12,912,090 13,302,474 13,380,445 
Total 95,802,050 87,749,137 86,838,949 89,051,338 
Imports   
United States 38,716,786 37,966,687 37,073,678 39,666,008 
China 6,546,181 6,873,624 6,746,955 8,001,248 
European Union 7,264,986 6,169,951 5,997,022 7,492,697 
Mexico 3,408,173 3,718,490 3,544,491 3,700,581 
Peru 3,765,690 3,345,478 2,758,425 2,591,670 
Other countries 16,987,714 17,028,923 16,866,199 17,533,067 
Total 76,689,530 75,103,153 72,986,770 78,985,271 
Note: As of 2014, Natural Resources Canada no longer includes nitrogen with the minerals and metals 
trade statistics. Historical data have been revised to re flect this change. 
Source: Statistics Canada, Natural Resources Canada (TRAGS). Viewed at: http://sead.nrcan.gc.ca/trad-
comm/1xml-eng.aspx; and information pr ovided by Canadian authorities. 
4.2.3.3  Policy 
4.83.  Mining in Canada is almost exclusively under government control as mining rights are 
separate from surface land rights. Thus, there is separate mining rights' legislation for each of the 
provinces and territories that allow for the lease of mining rights under government control. Depending on the province/territory, companies may require a licence before engaging in 
exploration while others require a licence to ac quire mineral rights. Furthermore, through the 
various provincial laws and regulations, there are certain downstream restrictions or disincentives limiting the processing of minerals to within the province or the country.
57 
4.84.  The federal government of Canada has limited involvement in the mining sector, generally 
limited to Crown corporations and mining on federa l lands. However, certain trade-related laws or 
acts are under the federal government, such as the 2002 Export and Import of Rough Diamonds Act (see Section 4.2.3.2), as well as legislation on investment and environmental protection. In 
Canada, it is the provincial governments that are most concerned and responsible for the 
exploration, development, extraction, dire ct taxation, and reclamation of mines.  
4.85.  The Minerals and Metals Policy from 1996 co ntinues to guide the policies in the sector. The 
main points of the strategy focus on sustainable development, international competitiveness, and 
science and technology aspects. Furthermore, it pr omotes regulatory efficiency and sound financial 
and taxation policies for the sector. The Responsible Resource Development Plan also influences the sector in terms of strengthening environmental protection and improving consultation with 
Aboriginal peoples. The Plan provides greater certainty for investors, while strengthening Canada's 
world-class environmental standards. 
4.86.  Canada has unique taxes, tax credits, or incentives specific to the mining sector. Canada 
has undertaken studies to compare its taxation policies with those of other major mining countries 
and has undertaken efforts to ensure its competitiveness is not undermined by taxation policies. While subject to federal and provincial income taxes, mining operations are also subject to 
                                               
57 Fulbright (2013). WT/TPR/S/314 • Canada 
 
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  provincial/territorial mining taxes, but many of these taxes are mitigated by a number of tax 
credits or deductions. To enhance the neutrality of the tax system, since 2007, the Government of Canada started to phase out the mining specific tax provisions. For example, as contained in the Budget 2007, the Accelerated Capital Cost Allowance (ACCA) for oil sands projects is being phased 
out by the end of 2014. The Budget 2013 furthe r proposed to (1) phase out the additional 
Accelerated Capital Cost Allowance (ACCA) available for mining over the 2017-20 period; and (2) reclassify pre-production mine developmen t expenses from Canadian Exploration Expense 
(CEE) to Canadian Development Expense (CDE).
58 Other credits that may apply include investment 
tax credits. The provinces and territories have different policies and rates on taxation of mining activities, but generally they range from 25-30% in  the case of the combined corporate income tax 
rate, and 10-20% for the mining royalty rate, essentially based on profits.
59 
4.87.  As part of its Responsible Resource Development Initiative, the Government of Canada has 
a legal duty to consult with Aboriginal peoples when Aboriginal or Treaty rights may be affected by a proposed resource development project. The commo n law duty to consult is based on the judicial 
interpretation of the obligations of the Crown (fed eral, provincial and territorial governments) in 
relation to potential or established Aboriginal or Treaty rights of the Aboriginal peoples of Canada, recognized and affirmed in section 35 of the Constitution Act, 1982. The duty cannot be delegated 
to third parties.
60 
4.88.  In implementing the Responsible Resource  Development Initiative, the amended Canadian 
Environmental Assessment Act of 2012 (CEAA 2012) enhanced Aboriginal consultations by better 
integrating Aboriginal consultations into the assessment and regulatory processes. The Canadian 
Environmental Assessment Agency serves as the Crown consultation coordinator for many major 
resource projects. CEAA 2012 also gave the Ca nadian Nuclear Safety Commission (CNSC) the 
exclusive responsibility for conducting environmental assessments for projects it regulates under 
the Nuclear Safety and Control Act, such as uranium mines and mills. The CNSC is the Crown 
consultation coordinator for projects it regulates. 
4.89.  For major resource projects North of 60th parallel, the Northern Projects Management Office 
(NPMO) within the Canadian Northern Economic Development Agency is responsible for 
coordinating consultation with Aboriginal people and maintaining the official Crown consultation record.
61 For projects which are subject to public review processes under the National Energy 
Board Act, the Crown has stated that it will rely on the National Energy Board process to the 
extent possible to meet any duty it may have to consult with Aboriginal groups.62 
4.2.3.4  Sub-sectors 4.90.  Canada is the world's leading potash producer and exporter, possessing the world's largest 
reserves.
63 During the period 2010-13, potash production, both in terms of quantity and value has 
fluctuated, achieving in 2011 the largest output both in volume and value terms (10,686 kilotonnes and Can$7.57 billion).
64 Canada currently has 10 potash mining operations, 
7 of which involve two Canadian-based firms, an d 3 operated by an American-based firm. The 
three producers together export their products to  offshore markets through Canpotex Limited, an 
exclusive marketing and distribution company only  handling all Saskatchewan potash exports to 
overseas markets. In 2013, a number of antitrust lawsuits involving the company were settled in 
                                               
58 Natural Resources Canada online information. Viewed at: http://www.nrcan.gc.ca/mining-
materials/taxation/mining-taxation-regime/8892. 
59 Natural Resources Canada online information. Viewed at: http://www.nrcan.gc.ca/mining-
materials/markets/8358. 
60 Aboriginal Affairs and Northern Developm ent Canada online information. Viewed at: 
http://www.aadnc-aandc.gc.ca/DAM/DAM-INTER-H Q/STAGING/texte-text/intgui_1100100014665_eng.pdf. 
61 Canadian Northern Economic Development Agency online information. Viewed at: 
http://www.cannor.gc.ca/eng/1386601644799/1386601662287. 
62 National Energy Board online information. Viewed at: https://www.neb-
one.gc.ca/prtcptn/nfrmtn/brgnlppl-eng.html.  
63 Natural Resources Canada online information. Viewed at: http://www.nrcan.gc.ca/mining-
materials/markets/commodity-reviews/2012/15358. 
64 Natural Resources Canada online information. Viewed at: http://sead.nrcan.gc.ca/prod-prod/2011-
eng.aspx. WT/TPR/S/314 • Canada 
 
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  the United States after consumers filed suit.65 Approximately 95% of Canadian potash production 
is exported. Major markets for Canadian potash exports in 2013 were the United States, Brazil, Indonesia, and China.
66 
4.91.  Uranium mining is another important sub-sector in mining for Canada, as it is the world's 
second largest producer, accounting for 16% of world production and 16% of world exports in 
2013. Canada exports around 85% of its production, with Asia, North America, and Europe as the largest markets. While the regulation of mining is usually predominantly under provincial 
jurisdiction, the regulation of uranium mining is mainly a federal responsibility. At the federal level, 
uranium mining, refining, processing, fuel fabrication, and nuclear reactor operation is regulated by the Canadian Nuclear Safety Commission (CNSC).  
4.92.  The Government has undertaken a number of initiatives to improve the federal regime for 
reviews of major energy and mining projects . Canada's 2010 federal budget, the Jobs and 
Economic Growth Act (JEGA), gave the CNSC the authority to establish a Participant Funding Program (PFP) to give Aboriginal groups and stakeholders the opportunity to fully participate in its 
regulatory processes and, in 2012 the Government introduced the plan for Responsible Resource 
Development which helps to facilitate investment by modernizing the regulatory system for project reviews. Implementation included changes to a number of key statutes including the Canadian 
Environmental Assessment Act, 2012 (CEAA 2 012), which gave the CNSC the exclusive 
responsibility for conducting environmental assessme nts for projects it regulates, such as uranium 
mines and mills, that are listed on the Regu lations Designating Physical Activities.  
4.93.  The plan for Responsible Resource Development also supported better integration of 
Aboriginal consultations into the assessment and regulatory processes and allowing the CNSC to 
play a Crown Consultation Coordinator role for pr ojects they regulate. In 2012, the CNSC amended 
its Uranium Mines and Mills Regulations under the Nuclear Safety and Control Act, to establish 
24-month timelines, that are consistent with timelines established under CEAA 2012, for projects 
that require its environmental assessment and regula tory review and decision on new applications 
for a combined license to prepare a site and construct a uranium mine or mill. However, not every 
environmental assessment of a uranium mine in Canada is subject to CEAA 2012. For example, 
Areva's Kiggavik project falls under the jurisdiction  of the Nunavut Land Claims Agreement, and is 
therefore subject to the Nunavut Impact Review Board's environmental assessment process rather 
than CEAA 2012. The CNSC provides technical advice to the Nunavut Impact Review Board and 
participates in its process. In 2013, the CNSC and Fisheries and Oceans Canada signed a 
Memorandum of Understanding to coordinate the administration of the fisheries protection provisions of the Fisheries Act and to assure a streamlined one window regulatory approach for 
projects regulated by the CNSC. 
4.3  Services 4.3.1  Financial services 
4.3.1.1  Overview 
4.94.  The federally regulated Canadian financial system is composed of 81 banking institutions, of 
which 28 are domestic banks, 24 foreign banks,  26 full service foreign bank branches, and 
three foreign bank lending branches. There are also 44 trust companies, 19 loan companies, 
6 cooperative credit associations, one cooperative retail association, 74 life insurance companies, 
14 fraternal benefit societies and 164 property and casualty insurance companies. A total of 
23 foreign banks have representative  offices in Canada (Table 4.11).
67 
                                               
65 Business News Network online information. Viewed at: http://www.bnn.ca/News/2013/1/30/Three-
Canadian-potash-exporters-sett le-price-fixing-lawsuit.aspx. 
66 Industry Canada online information. Viewed at: 
https://www.ic.gc.ca/app/scr /tdst/tdo/crtr.html?naAr ea=9999&toFromCountry=CDN&grouped=GROUPED&run
Report=true&countryList=TOP&currency=CDN&productType=NAICS&searchType=BL&hSelectedCodes=212396
&reportType=TE&timePeriod=5|Complete+Years. 
67 OSFI online information. Viewed at: ht tp://www.osfi-bsif.gc.c a/Eng/wt-ow/Pages/wwr-
er.aspx?sc=1&gc=1#WWRLink11. WT/TPR/S/314 • Canada 
 
- 135 - 
 
  Table 4.11 Financial institutions operating in Canada, 2010 and 2014  
 2010 As of 31 October 2014  
(unless otherwise indicated) 
 Number Assetsa, b 
Can$ billion Number Assetsa, b 
Can$ billion 
 Federally regulated 
Banks 77  81  
 - Domestic 22 2,886.3 28 4,005.9 
 - Foreign subsidiaries 25 152.4 24 127.2 
 - Foreign branches 30 82.4 29 78.5 
Trust and loan companiese 66  63  
 - Bank-owned 30 238.4 33 323.2 
 - Other 36 24.4 25 32.6 
Cooperative credit associationsc 6 19.6 6 21.0 g 
Cooperative retail associationsd 1 4.2 1 6.9 
Life insurance companiesf,g 84  74  
 - Canadian-incorporated 41 487.7 40 529.6 
 - Foreign branches 39 15.1 27 20.9 
Fraternal benefit societiesf,g 17  14  
 - Canadian-incorporated 9 6.5 8 2.1 
 - Foreign branches 7 1.9 5 3.1 
Property and casualty insurance 
companies 187  164  
 - Canadian-incorporated 95 82.3 88 109.0 
 - Foreign branches 92 29.9 76 40.7 
Pension plans 1,398 122.6 1,234 171.0 
 Provincially regulated 
Cooperative credit institutions 887 297.9 887 297.9 
Life insurance companiesf,g 23 64.8 19 88 
Fraternal benefit societiesf,g n.a. n.a n.a. n.a. 
Property & casualty insurance 
companies 43 12.9 44 15.3 
Note: The data presented in this table is for informat ion purposes only and is not comparable across type 
of institution due to diffe rent reporting dates and different data sources. 
n.a. Not applicable. a Total assets of the relevant subsectors are not the simple sum of the figures. The figures for entities 
that report on a consolidated basis include subsidiaries whose assets may also be included in a different category. 
b As of 31 January or 31 March (depending on  fiscal year-end) where available, otherwise 
31 December. 
c Covers only associations that serve as central fi nance facilities for cooperative credit institutions 
(credit unions and caisses populaires ). 
d Since 2001, federally incorporated retail associations may offer services directly to the public; they 
must be composed of at least 2 provincial cooper ative associations or at least 10 cooperatives from 
more than one province. 
e Data is on a consolidated balance sheet basis. Th ere may be some double counting in assets due to 
the fact that a trust company may fall under a loan company, or vice versa. 
f "Assets" are reported under IFRS  (with 2010 assets restated) and include those held on behalf of 
Canadian policyholders and annuitants for both ge neral and segregated fund business. For Canadian 
incorporated organizations, assets held for bu siness conducted outside Canada through foreign 
branch and subsidiary operations are excluded. Data reported as of 31 December 2013. 
g Numbers includes only companies that are actively issuing new business; companies that are limited 
to administration of existing policies only are not included. 
Source:  WTO Secretariat, based on data provided by OSFI , the Insurance Bureau of Canada, the Canadian 
Life and Health Insurance Association, and some federally regulated financial institutions (FRFI) 
annual reports. 
4.95.  The banking industry remains relatively concentrated with the six largest banks accounting 
for approximately 90% of total assets among Canada's federally regulated deposit-taking 
institutions (DTIs). These large banks carry diversified business lines both domestically and internationally, and are active in a number of foreign countries. The remaining 10% of Canadian WT/TPR/S/314 • Canada 
 
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  banking assets are held by smaller institutions with niche markets and business strategies, such as 
mortgage lending, commercial real estate, or credit cards. Average return on equity for the banking sector was 16.2% in 2013, compared to 17.2% in 2012.
68 
4.96.  Canada's GATS market access and national treatment commitments on financial services 
have not changed since its last Review. Canada's WTO Schedules on Specific Commitments for the 
sector are undertaken in accordance with the Understanding on Commitments in Financial Services, thus it contains partial commitments for the sector. 
4.3.1.2  Regulatory framework 
4.97.  The regulation and supervision of financial services is carried out under a system of shared 
responsibility between the federal and provincial governments. At the institutional level, the Department of Finance, under the Minister of Fina nce, is responsible for the overall stability of the 
financial system (Table 4.12). The Office of the Superintendent of Financial Institutions (OSFI) is in 
charge of the prudential oversight of all federally  incorporated banks, insurance companies, trust 
and loan companies, cooperative credit associations, fraternal benefit societies, and certain 
pension plans, as well as branches of foreig n banks and insurance companies. OSFI is an 
independent, self-financed agency that reports to Parliament through the Minister of Finance. Regulation by OSFI involves mainly providing input into developing and interpreting legislation and 
regulations, issuing guidelines, and approving requests from federally regulated financial 
institutions, as required under financial institution legislation. OSFI monitors the financial and economic environment to identify issues that ma y adversely affect federa lly regulated financial 
institutions (FRFIs), and is also in charge of risk assessment and supervision of corporate 
governance practices.
69 
Table 4.12 Main regulatory bodies of the banking sector  
Institution Mandate Legislation 
Department of Finance Legislative and regulatory framework for 
banking and other financial services Financial Administration 
Act 
Office of the 
Superintendent of Financial 
Institutions (OSFI) Prudential supervisor for banks, federal 
insurance companies, and federally 
administered pension plans Office of the Superintendent 
of Financial Institutions Act 
Canada Deposit Insurance Corporation (CDIC) Protects depositors and promotes the stability 
of the financial system. Resolution authority for Canadian banks Canada Deposit Insurance 
Corporation Act 
Bank of Canada Responsible for monetary policy, financial 
system stability, and funds management. Bank of Canada Act 
Financial Consumer Agency of Canada (FCAC) Consumer protection Financ ial Consumer Agency of 
Canada Act (2001) 
Source: Information provided by the authorities. 
4.98.  The Bank of Canada assesses financial stability risk and oversees systemic payment, 
clearing and settlement systems. The Canada Deposit Insurance Corporation (CDIC) provides deposit insurance, while the Financial Consumer Agency of Canada (FCAC) deals with consumer 
protection issues. All of these institutions participate in the Financial Institutions Supervisory 
Committee (FISC), a forum that meets regularly to share information on matters relating to the supervision of FRFIs. 
4.99.  Banks must be incorporated under federal legislation in order to operate. Foreign banks can 
establish and operate through a subsidiary or a br anch (full-service branch or a lending branch). 
They are under federal regulation. Cooperative credit institutions, mutual funds and securities firms, including those owned by banks, are regulate d largely at the provincial level for prudential 
soundness and market conduct. Insurance or trust and loan companies can generally be 
incorporated either federally or provincially and can change jurisdictions after incorporation.
70 
However, foreign insurers operating in Canada must be federally regulated.  
                                               
68 OSFI (2014). 
69 OSFI online information. Viewed at: http://www. osfi-bsif.gc.ca/Eng/osfi-b sif/Pages/default.aspx. 
70 A company may incorporate federally if it is planning to operate in multiple provinces, or if the 
province it plans to operate in does no t provide for provincial incorporation. WT/TPR/S/314 • Canada 
 
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  4.100.  Foreign insurers wishing to establish a bran ch in Canada must apply federally to obtain an 
order to insure against risks. However, provincial  legislation, which typically covers requirements 
such as licensing, coverage, rates, and marketing practices, applies regardless of a company's jurisdiction of incorporation. The federal financial institutions statutes provide for provincially 
incorporated insurance or trust and loan companies to continue federally with the approval of the 
Minister of Finance. For a federally incorporated company to continue operate in the provinces, permission from the Minister of Finance must fi rst be obtained, followed by approval from the 
province.  
4.101.  Incorporation requirements in terms of minimum capital are the same for domestic banks 
and foreign bank subsidiaries (Table 4.13). Foreign branches are subject to an initial capital equivalency deposit amounting to Can$100,000 for lending branches, and Can$5 million (or 5% of 
Canadian liabilities) in the case of full-service branches. The effective level of capital required 
depends on other parameters, including the proposed business plan and stress-testing analysis.  
4.102.  For insurers, there is a required minimum of Can$5 million in capital (in the case of 
incorporation) or vested assets (in the case of the establishment of a branch). Like in the case of 
banks, the effective level of capital or vested asse ts will depend on factors such as the proposed 
business plan, stress-testing analysis on the proposed classes of insurance, and projected 
reinsurance arrangements. There are also Canadian residency requirements for directors and 
certain officers of these institutions. 
Table 4.13 Requirements upon incorporat ion or establishment of a branch or 
representative office  
 Minimum capital (in Can$) Canadian residencea 
Banks   
Domestic 5 million A majority of directorsb 
Foreign subsidiaries 5 million At least half of directors 
Foreign branches   
- Full service Capital equivale ncy deposit: the greater of 
5 million or 5% of Canadian liabilities Principal officer 
- Lending Capital equivalency deposit: 100,000 Principal officer 
Foreign representative office No ne Chief Representative officer 
Insurance companies   
Canadian-incorporated 5 million A majority of directorsb 
Foreign branches 5 million Chief Agent 
a The CEO of every bank or federal insurance comp any in Canada must be ordinarily resident in 
Canada. 
b Until 2007, the requirement was formulated as "at least two-thirds" of the directors. Banks and 
federally regulated insurance companies must have at least seven directors. 
Source:  Department of Finance Canada. 
4.103.  OSFI participates actively in the development of international rules in the financial sector. 
It is an active member of the Basel Committee on Banking Supervision (BCBS), and together with 
the Department of Finance and the Bank of Canada, represents Canada at the Financial Stability Board (FSB). OSFI has concluded information sharing agreements with a number of regulatory 
authorities in regions where Canadian banks and insurers have significant operations (Table A4.2). 
4.3.1.3  Banking services 4.3.1.3.1  Commercial banks 4.104.  Canada's banks are federally regulated and chartered pursuant to the Bank Act. However, 
some subsidiary activities (including trustee serv ices and many securities market activities) are 
provincially regulated. WT/TPR/S/314 • Canada 
 
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  4.105.  In general, the ownership framework of federal financial institutions is size-based and set 
out in relevant pieces of legislation.71 Ownership rules are tailored to reflect the level of risk the 
institution could potentially pose to the financial system. Banks are categorized as small, medium or large depending on their equity capital. Ba nks with equity of less than Can$2 billion are 
classified as small. An investor may own 100% of any class of the shares of such a bank. Banks 
with equity between Can$2 billion and Can$12 billi on are defined as medium banks, and as such, 
35% of their voting shares must be listed on a stock exchange in Canada. The Minister of Finance 
may grant an exemption from this requirement.
72 Any transaction leading to a single investor 
acquiring more than 10% of any class of voting sh ares would require the approval of the Minister 
of Finance, and would be subject to a "fit and proper" test on the applicant.73 Large banks, that is 
those with equity of Can$12 billion or more, must  be widely held: no single investor may own 
more than 20% of any class of voting shares or 30% of non-voting shares. There are currently 
eight large banks in Canada.74 Trust and loan companies are subject to the same requirements, 
although there is no "large" categorization for th em (equity of over Can$12 billion); only small and 
medium categorizations apply to them.  
4.106.  According to the authorities, the widely-h eld rule helps prevent inappropriate self-dealing, 
including the potential distortion of credit allocation by a commercial owner, and imposes a high 
degree of transparency and market oversight. In ge neral, a change in ownership that represents a 
significant portion of the shares of a bank (or mo re generally a FRFI) requires the approval of the 
Minister of Finance. 
4.107.  Foreign financial services providers must establish a commercial presence to carry on 
business in Canada. Besides acquiring a domest ic bank, the range of available options for 
commercial presence includes establishing subsidiaries, full-service or lending branches, and representative offices. Lending branches may lend in Canada, but are not permitted to take any 
deposit; full-service branches may accept deposits of Can$150,000 or more, but such deposits are 
not eligible for the CDIC's insurance scheme. Banks and other federally chartered deposit-taking institutions are forbidden from offering financial services such as auto-lease financing, securities 
brokerage or insurance services (except for certain securities activities and the authorised credit 
insurance products to the banks' own clients that are permitted under the Bank Act). While banks cannot offer these services directly, they can however establish their own insurance subsidiaries. 
4.108.  The Capital Adequacy Requirements (CAR) Guidelines  is OSFI's framework for the 
implementation of Basel capital standards. The Guidelines  were revised in 2012 to implement the 
Basel III framework. In 2014, as part of its Re gulatory Consistency Assessment Programme, the 
Basel Committee on Banking Supervision conducted an assessment of Canada's implementation of 
the Basel capital framework. This assessment found Canadian prudential regulations to be 
compliant overall with the standards prescribed under the Basel global standards. During the period under review, OSFI fully implemented the Basel III capital rules on an accelerated (or "all 
in") basis, with no transitioning period for banks to meet the revised capital adequacy ratios or 
phase-in the required regulatory adjustments and deductions. Canadian banks remain above the supervisory target capital ratios, including the Common Equity Tier 1 ratio (CET1) of 7%. In 2014, OSFI also implemented the Basel III leverage rati o –years ahead of international timelines. In 
2013, OSFI and the Bank of Canada conducted a stress-testing exercise, in the context of IMF's 
Financial Sector Assessment Program. This assessment found that Canada has a high level of compliance with the Basel committee's core principles for effective supervision.  
4.109.  Following the Basel Committee's guidelines, OSFI designated, in 2013, the following 
six banks as being domestic systemically import ant (D-SIBs): Bank of Montreal, Bank of Nova 
Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, 
                                               
71 Bank Act, Insurance Companies Act and Trust and Loan Companies Act. 
72 Exemptions are granted for institutions for variou s reasons including (but not limited to) meeting the 
35% public float requirement at another corporate level and when the financial institution is only growing organically or through small acquisitions. 
73 A "fit and proper person" is one that is deemed to  have the character, inte grity, and sound business 
plans, and resources to own and oper ate a financial institution. This can be a natural person, a financial 
institution (regulated or unregulated) or a commercial entity. 
74 Three banks with equity of less than Can$12 billio n are currently classified as large: National Bank, 
Laurentian Bank and Canadian Western Bank. However, th e Minister of Finance has the discretion to revoke 
this treatment and re-categorize these banks. WT/TPR/S/314 • Canada 
 
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  and Toronto-Dominion Bank. In line with the Basel Committee's D-SIB framework75, these banks 
are subject to greater prudential regulation. For in stance, they are subject to a surcharge of 1% of 
risk-weighted capital by January 2016, on top of the 7% required from non-systemic institutions. 
At the end of 2014, D-SIBs had CET1s ranging from 9.2% to 10.8%.76 Moreover, D-SIBs are also 
subject to more intensive supervision than other financial institutions; OSFI requires them to meet 
enhanced disclosure requirements, and to have in place advanced practices in terms of the design and operation of oversight functions and internal controls.
77  
4.110.  At the provincial level, Desjardins Gr oup and Central 1 Credit Union were designated 
respectively by the Autorité des marchés financiers  of Quebec and the Financial Institutions 
Commission of British Columbia, as domestic systemically important financial institutions (D-SIFI). As such, Desjardins will be subject to a 1% capital surcharge effective in 2016.
78 Central 1 Credit 
Union is required to have a stronger liquidity buffer, leverage limits, and is subjected to an 
increased regulatory reporting.79 
4.111.  OSFI also conducts overall assessments of the safety and soundness of FRFIs through the 
use of the Composite Risk Rating (CRR) detailed in its Supervisory Framework. There are four 
possible risk ratings: low, moderate, above average, and high. The CRR is reported to most institutions at least once a year. Institutions are prohibited from publicly disclosing their rating. 
This prohibition also applies to OSFI itself. As of March 2014, OSFI had assigned CRR ratings of 
low or moderate to 91% of all CRR-rated institutions, and above average or high to 9% (compared to 89% and 11%, respectively, as of March 2013). Beginning in 2013-14, only the branch's risk is assessed for branches of foreign banks, rather than risk of the overall foreign bank. To this end, a 
Branch Risk Rating (BRR) is assigned to the foreign branch operating in Canada, reflecting OSFI's 
limited access to the information needed to assess the bank's overall safety and soundness.
80 
4.112.  Transactions, including mergers and acquisitions, involving federally regulated financial 
institutions are administered by OSFI. OSFI assesses each application against the requirements set 
out in the relevant financial institution statute and makes a recommendation to the Minister of Finance. 
4.113.  One distinct element of Canada's federal financial legislative framework is that the main 
statutes governing FRFIs
81 contains a "sunset clause" that provides for them to lapse after five 
years, thereby ensuring that they are reviewed and updated regularly. The most recent review was completed with the Financial System Review Act receiving Royal Assent in March 2012. The review 
provided, inter alia , for some amendments aimed at reinforcing stability and fine-tuning the 
consumer protection framework. 
4.3.1.3.2  Cooperative financial institutions 
4.114.  Cooperative credit institutions (credit unions and caisses populaires ) represent an 
important tier in the Canadian financial system. Cooperative credit institutions are affiliated through credit union centrals, which provide liquidity, payment and trade services to their 
corporate members (predominantly individual credit unions and caisses populaires ). Centrals do 
not take deposits from the public. At the federal level, the Credit Union Central of Canada (CUCC) functions as the national trade association of the system (with the exclusion of Quebec, some 
credit unions in Ontario, and some caisses populaires  in Manitoba, New Brunswick and Ontario).
 
Credit Union Central of Canada currently has six members: three provincial credit union Centrals 
(Credit Union Central Alberta Limited, Credit Union Central of Manitoba, and SaskCentral), two regional credit union Centrals (Atlantic Central, which represents credit unions in 
New Brunswick, Newfoundland and Labrador, Nova Sc otia and Prince Edward Island; and Central 1 
Credit Union, which represents credit unions in British Columbia and Ontario), and one federation of caisses populaires ( L'Alliance des caisses populaires de l'Ontario limitée). 
                                               
75 BCBS (2012).  
76 Information provided by De partment of Finance Canada. 
77 OSFI (2014). 
78 Autorité des Marchés Financiers (2013). 
79 Financial Institutions Commission (2014).  
80 OSFI (2014). 
81 The main Acts are: the Bank Act, the Cooperat ive Credit Associations Act, the Trust and Loan 
Companies Act, and the In surance Companies Act. WT/TPR/S/314 • Canada 
 
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  4.115.  Cooperative credit institutions are under the jurisdiction of the province or territory in 
which they operate. Centrals (except the CUCC) ar e incorporated and regulated at the provincial 
level. Some centrals82 have chosen to register federally under the Cooperative Credit Associations 
Act, and voluntarily subject themselves to OSFI's oversight. The oversight function is limited to 
each central's ability to meet provincially de fined liquidity requirements. In 2014, the federal 
government announced a number of measures aimed at strengthening the credit union framework and clarifying its mandate with regards to credit union centrals.
83 In particular, OSFI will cease its 
supervision of provincial credit union centrals once the amendments to relevant provisions in the 
legislation are made. 
4.116.  In 2012, the Bank Act was amended to prov ide for a legal framework for credit unions to 
be incorporated and regulated at the federal level, thereby allowing them to operate seamlessly 
across provincial borders. Under the framework, federal credit unions are subject to the same 
prudential, capital, and liquidity standards as bank s. They are under the oversight of OSFI and are 
eligible for CDIC's deposit insurance. According to the authorities, a number of credit unions have 
expressed interest in moving from provincial regu lation to federal standards. However, they are 
facing challenges stemming from differences in deposit insurance coverage, and insurance networking rules (as credit unions in some provinces share premises with insurance affiliates). In 
January 2014, the federal government announced its intention to develop temporary transitional 
measures for eligible provincial credit unions that have provincial acceptance to move to the federal framework.
84 The measures include extended deposit insurance and a short-term funding 
facility, as well as an extended transition period to comply with federal insurance networking rules. 
4.3.1.4  Insurance services 
4.117.  At the end of 2014, there were 74 federa lly-regulated life insurance companies (of which 
33 were branches of foreign companies), and 164 companies engaged in property and casualty 
insurance (of which 76 were branches of foreign companies). Including provincially-regulated 
companies, the life insurance segment of the indust ry had assets valued at Can$1,287.8 billion at 
the end of 2013, representing 68.4% of the country's GDP.85 The life insurance sector is highly 
consolidated and dominated by a few large groups: Manulife, Sun Life and Great-West Life 
together account for about 75% of net premium. The property and casualty industry has assets 
accounting for 3.2% of the financial sector's total assets.86 It is relatively less concentrated, with 
the top five insurers accounting for about 42% of the written premiums in 2013. Automobile 
insurance remains the major line of business in this segment of the industry, accounting for nearly 
half of net written premiums (excluding the provinces of British Columbia, Manitoba, Quebec and Saskatchewan where such business is provided by government-owned entities).  
4.118.  Like in the banking sector, insurance companies are categorized according to their equity 
capital. Companies with equity of less than Can$2 billion are categorized as small. An investor may own 100% of any class of shares of a small insurance company. Insurance companies with equity 
capital of Can$2 billion or more (medium) are required to have 35% of their voting shares widely 
held and listed on a recognized stock exchange in Canada. There are currently two large demutualized insurance companies that are required to be widely held.  
4.119.  The regulation of the insurance market is shared between federal, provincial and territorial 
authorities. Federal insurers/reinsurers must be licensed both federally and provincially in each 
province within which they wish to carry on business. Most of the largest Canadian insurers are federally incorporated under the Insurance Companies Act, and are regulated by OSFI. The safety 
and soundness of licensed Canadian branches of foreign insurers is also regulated by OSFI. 
A number of smaller insurers are incorporated und er provincial law and re gulated by provincial 
regulators. Provincial regulators also have the mandate to regulate market conduct, and the 
licensing and supervision of insurance intermediaries. The regulatory laws of provinces are 
                                               
82 These are: Atlantic Central, Cent ral 1 Credit Union, Credit Union ce ntral of Alberta Limited, Credit 
Union central of Manitoba Limited, and Credit Union Central of Saskatchewan. 
83 House of Common (2014a).  
84 Department of Finance Canada, Letter to the Cred it Union Central of Canada, January 2014. Viewed 
at: http://www.fin.gc.ca/n14/data/14-010_1-eng.asp.  
85 Based on data provided by the authorities. 
86 Information provided by the Insurance Bureau of Canada. WT/TPR/S/314 • Canada 
 
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  relatively uniform and are based on common law principles, with the exception of Quebec where 
such laws are based on a civil code system. 
4.120.  During the review period, OSFI has introduced a reform to its capital adequacy 
requirements, issued some guidelines regardin g corporate governance, and revised its Minimum 
Capital Test for FRFIs.  
4.121.  In 2012, OSFI issued the Life Insurance Regulatory Framework , announcing a reform of 
capital adequacy requirements. The reform provides, inter alia , for the incorporation of new risks 
into the framework, the accommodation of smaller as well as large companies, and the linking of 
risk measures to the quality of the capital available to absorb losses. OSFI has been testing refinements to the new framework through six rounds of quantitative impact studies. The last impact study is anticipated for late 2015, follow ed by parallel runs of the current and the new 
capital framework in 2016 and 2017. The new capital framework is expected to come into force in 
2018.  
4.122.  OSFI's Corporate Governance Guideline  was issued in 2013. It aims at strengthening the 
risk governance of some FRFIs. The Guideline do es not apply to branch operations of foreign 
insurance companies. FRFIs were required to develop a "risk appetite framework" in order to guide their risk taking activities. They were also requ ired to have fully implemented the Guideline by 
31 January 2014.
87 
4.123.  The Insurance Companies Act requires fede rally regulated property and casualty insurers 
to maintain adequate capital levels. Foreign property and casualty companies operating on a branch basis are required to maintain an adequate margin of assets over their liabilities in Canada. 
The Minimum Capital Test (MCT) Guideline  sets out the minimum and the target capital level (or 
margin of assets) used by OSFI in assessing compliance with these requirements. A revised MCT 
Guideline  was issued in September 2014. The objective of the revision was to create a more robust 
risk-based framework that better aligns capital (or asset) requirements to the risks faced by 
insurers.
88 The Guideline provides, inter alia , for a more explicit calculation of the minimum and 
target capital (or margin of assets) required and the definition of the capital or assets to be used 
for this purpose. Property and casualty insurers are expected to meet the MCT requirements at all 
times. The Guideline is to be implemented over a three-year phase-in period starting in January 2015. 
4.124.  Historically, provincial regulators have a ligned their solvency standards with those of OSFI, 
thereby ensuring that all insurers are subject to similar solvency requirements regardless of their 
place of incorporation. With the evolving nature of international (and federal) regulatory standards, significant resources were required to maintain and enforce an up-to-date solvency 
regime. Therefore, there is a trend among provinci al regulators to delegate authority in some 
areas of solvency supervision to other regulators or qualified individuals hired on a contractual basis. Some provinces, especially those with a relatively large number of provincial insurers 
(e.g. Quebec), have chosen to preserve their autonomy in this area and become compliant with 
strengthened international standards. Others are assessing the legislative changes, resources and 
expertise required to meet the new international standards. 
4.125.  Foreign insurance companies, even if they cover risks located in Canada, are not 
necessarily subject to federal licensing requirements. Provinces and territories vary in how they 
allow foreign unlicensed companies to cover local risks. In most provinces
89, coverage of local risks 
is allowed subject to some requirements regarding taxation, and only when local capacity is 
unavailable. In provinces and territories such as Manitoba, New Brunswick, On tario, Prince Edward 
Island, and Yukon, the broker has to conduct due diligence and determine that local capacity is 
either cost-prohibitive, or the policy conditions ar e "unacceptable". Other provinces restrict it to 
specific lines of business: it is the case for property insurance (against fire and marine risk) in 
New Brunswick; property insurance in Prince Edward Island; and fire insurance in Nova Scotia. 
                                               
87 OSFI (2013). 
88 OSFI online information. Viewed at: http:// www.osfi-bsif.gc.ca/eng/os fi-bsif/med/Pages/mct2015-
nr.aspx.  
89 This applies in the provinces of Alberta, British Columbia, Newfoundland and Labrador, Ontario, 
Quebec, Saskatchewan, and in the three territories (Yukon, Northwest Territories, and Nunavut). WT/TPR/S/314 • Canada 
 
- 142 - 
 
  4.126.  Canada participates in the  International Association of Insurance Supervisors' initiative 
aimed at establishing a set of international supervisory requirements for internationally active insurance groups. No Canadian life insurance company was on the list of global systemically important insurers designated by the Financial Stability Board in 2013.  
4.127.  The supply of an insurance policy by an insurer is generally exempted from the GST/HST 
and provincial sales taxes. However, insurance businesses cannot claim a refund for any GST/HST 
paid on inputs made in supplying an exempt insurance policy.  
4.128.  Under Part I of the Excise Tax Act, the federal government levies a 10% tax on net 
premiums paid on contracts of insurance for a person resident in Canada, when the premium is paid to an unauthorized insurer (an insurer who is not authorized under the laws of Canada or of any province to provide insurance). The premium tax may also apply when the premium is paid in 
respect of a contract entered into with an author ized insurer through brokers or agents outside of 
Canada. Premiums paid in respect of reinsurance contracts or contracts of life insurance, personal accident insurance, sickness insurance, insurance against marine risks, or insurance against 
nuclear risks are exempted, to the extent that these policies are not available within Canada. 
Exemptions may also apply for other insurance products not available in Canada.  
Table 4.14 Provincial taxes on insurance premium, 2014  
(%) 
Province Premium tax  
(life, accident and 
sickness) Premium tax 
(property and 
casualty) Premium 
sales tax Fire tax 
Newfoundland and 
Labrador 4 4  Nil 
Prince Edward Island 3.5 3.5  1 
Nova Scotia 3 4  1.25 
New Brunswick 2 3  1.00 
Quebec 2.3 3.3 9 
5 (auto) Nil 
Ontario 2 3 or 3.5 8 Nil 
Manitoba 2 3 7 1.25 
Saskatchewan 3 4  1 
Alberta 2 3  Nil 
British Columbia 2 4.4  Nil 
Yukon 2 2 or 3  1 
Northwest Territories 3 3-4  1 
Nunavut 3 3-4  1 
Note Including a 0.3% compensation tax on insurance premiums. 
Source: IBC (2014), IBC's 2014 Facts of the Property & Casualty Insurance Industry . Viewed at: 
http://www.ibc.ca/en/Need_More_Info/Fa cts_Book/documents/2014/IBC_2014_Factbook_ 
English.pdf. 
4.129.  Compulsory coverages at the federal level include certain types of marine, mortgage, 
aviation, nuclear, environmental, and surety insurance. Numerous types of insurance (including automobile insurance) are regulated at the provincial or territorial level, and requirements vary by jurisdiction. Uninsured automobile coverage is mandatory in all provinces and territories.
90 
4.3.1.5  Securities 
4.130.  As of December 2014, there were 181 registered securities firms in operation in Canada.91 
The market is dominated by integrated firms ow ned by the D-SIB banks: they accounted for 71% 
of the industry revenue in 2013.92 Following an agreement reache d in 1999, the exchange market 
has been restructured along the lines of market specialization, with the Toronto Stock Exchange 
                                               
90 Uninsured automobile coverage pr ovides a protection from costs rela ted to injury or death resulting 
from an accident with an uninsured dr iver or an unidentified vehicle. 
91 Investment Industry Regulato ry Organization of Canada online information. Viewed at: 
http://www.iiroc.ca/industry/pages/dealers-we-regulate.aspx.  
92 Information provided by the authorities. WT/TPR/S/314 • Canada 
 
- 143 - 
 
  (TSX) being the sole senior equity exchange; th e Montreal exchange dealing exclusively with 
derivatives; the Canadian Venture Exchange handling junior equities; and the Winnipeg Commodity Exchange specializing in agricultural  futures and options. TSX is the largest stock 
exchange in Canada, and is also , by market capitalization, among the ten largest stock exchanges 
in the world. As of end December 2014, it had 1,515 listed issuers with a total market 
capitalization of Can$2.5 trillion.
93 
4.131.  The day-to-day regulation and supervision of securities markets is within the jurisdiction of 
provincial and territorial regulators (Table 4.15). Regulators also engage in international 
cooperation on an individual basis. Currently, regulators from Alberta, British Columbia, Ontario, and Quebec are ordinary members of the Internat ional Organization of Securities Commissions 
(IOSCO). In addition, regulators participate individu ally in the work of regional bodies such as the 
North American Securities Administrators Association, and the Council of Securities Regulators of 
the Americas. There is, a high degree of coop eration among regulators through the Canadian 
Securities Administrators (CSA). All provinces and territories (except Ontario) have implemented a 
common "passport system"
94, providing market participants with the possibility to clear a 
prospectus, register as a dealer or adviser, or obtain certain discretionary exemptions from the regulator in their home jurisdiction, with applicability in all other participating jurisdictions. 
Although Ontario is not covered by the system, its market participants have access to the market 
of the participating jurisdictions through the Ontario Securities Commission (OSC).  
Table 4.15 Provincial and terri torial securities regulators  
Province Regulator Legislation (as of January 2015) 
Alberta  Alberta Securities Commission Securities Act, RSA 2000 Chapter S-4 
Latest amendment in 2014 
British Columbia British Columbia Securities 
Commission Securities Act R.S.B.C. 1996, c. 418 
Latest amendment in  2012 
Manitoba The Manitoba Securities Commissi on The Securities Ac t, C.C.S.M. c. S50 
The Commodity Futures, C.C.S.M. c. C152 Latest amendment in 2014 
New Brunswick Financial and Consumer Services 
Commission Securities Act, S.N.B. 2004, c.S-5.5 
Latest amendment in  2014 
Newfoundland & 
Labrador Office of the Superintendent of 
Securities Service Securities Act, R.S.N.L. 1990, Chapter S-13
Latest amendment in 2013 
Northwest 
Territories Office of the Superintendent of 
Securities Northwest Territories Securities Act, S.N.W.T. 2008, c.10 
Latest amendment in 2012 
Nova Scotia Nova Scotia Securities Commission Securities Act, R.S. 1989 c 418 
Latest amendment in 2014 
Nunavut Nunavut Securities Office Securities Act S.Nu.2008,c.12 
Latest amendment in 2011 
Ontario Ontario Securities Commission Securities Act R.S.O. 1990, C. S.5 
Commodity Futures Act R.S.O. 1990, C. 20Latest amendment in 2014 
Prince Edward 
Island  The Office of the Superintendent 
Securities Consumer  Securities Act R.S.P.E.I. 1988 
Latest amendment in  2012 
Quebec Autorité des Marchés Financiers  Securities Act (CQLR, c. V-1.1) 
Latest amendment in  2013 
Saskatchewan Financial and Consumer Affairs 
Authority of Saskatchewan The Securities Act, 1988 Chapter S-42.2 
Latest amendment in 2013 
Yukon Office of the Yukon Superintendent of 
Securities The Securities Act SY 2007 C.16 
Latest amendment in 2012 
Source: WTO Secretariat, based on the informat ion provided by the Canadian authorities. 
4.132.  Certain regulatory responsibilities are delegated to the Investment Industry Regulatory 
Organization of Canada (IIROC), an industry-led self-regulatory organization. These include setting 
and enforcing rules and standards pertaining to dealer firms operating in the industry. In particular, the registration of securities firms (and individuals who are carrying out certain 
                                               
93 TSX online information. Viewed at: http://www.tsx.com/resource/en/569 [04.02.2015]. 
94 2004 Provincial/Territorial Memorandum of Understanding Regarding Securities Regulation (MOU). WT/TPR/S/314 • Canada 
 
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  functions with them) has been delegated to IIROC in the following provinces and territories: 
Alberta, British Columbia, Saskatchewan and Newfoundland and Labrador.95 IIROC also acts as a 
regulator for securities trading and market-related activities in over a dozen equity marketplaces 
(including the Toronto Stock Exchange). IIROC handles investor complaints by first documenting 
and interpreting facts, and then evaluating whether it should launch an investigation. It can take 
disciplinary measures which may include fines, suspensions and permanent bans. IIROC is an affiliate member of the IOSCO. 
4.133.  The industry has also established the Canadian Investor Protection Fund, with a view to 
covering investors in case of insolvency by a member. The coverage is paid for by securities dealers, and is limited to Can$1 million per customer.  
4.134.  The federal government and several provincial and territorial governments are working 
together towards the operationalization of a Coop erative Capital Markets Regulatory System, with 
a view to strengthening the regulation of ca pital markets. One principal component of the 
Cooperative System would be a single regulator responsible for administering uniform provincial 
securities law and complementary federal legislation addressing capital markets-related systemic 
risk, national data collection and criminal o ffenses. In September 2013, the governments of 
British Columbia, Ontario and the federal government announced the establishment of the 
Cooperative System. New Brunswick, Prince Edward Island and Saskatchewan joined in 2014. The 
system is to be operationalized through several phases which include: consultations on draft initial regulations in mid-2015; the enactment of uniform provincial and complementary federal legislation by the respective legislatures of the participating jurisdictions; and, the 
operationalization of the cooperative regulator. Some provinces and territories are yet to join the 
Cooperative System. 
4.3.2  Postal and courier services 
4.135.  The Canada Post Corporation Act is the main postal law in Canada.
96 It established the 
Canada Post Corporation (Canada Post) as a Crown corporation with the sole and exclusive privilege of collecting, transmitting, and deliverin g letters weighing up to 500 grams to addresses 
within Canada. Exceptions to this postal monopoly include legal documents, cargo letters, letters 
of the carrier, urgent letters
97, and outbound international mail. Also excluded from this privilege is 
the transmission of newspapers, magazines, books, catalogues and goods. Canada Post is allowed to compete with other providers outside its exclusive area but is not permitted to cross-subsidize 
its competitive services from its monopoly revenues.  
4.136.  Under the Act, Canada Post may make regulations pertaining to, inter alia , rates of 
postage and other matters related to the efficient operation of its business. The Act also gives the 
Corporation the ability to provide unregulated bulk rates. Postage rates are uniform for letters of 
similar size and weight, regardless of the addres s. As of 31 March 2014, the basic domestic rate 
for regulated lettermail ranges from Can$1 for standard letters
98 (30 grams or less) to Can$5.05 
for oversized mail (between 400 and 500 grams).  
4.137.  The legislation does not impose specifically a universal postal service obligation on Canada 
Post, but a mandate for "maintaining basic cust omary postal service". In 2009, the Government 
released the Canadian Postal Service Charter , outlining its expectations with regards to the 
services provided by the Corporation. The Char ter covers issues such as universal service 
obligations, postage rates, delivery expectations, and complaint-resolution procedures. The Corporation also delivers certain public-policy programmes on behalf of the Government. These 
include: the Food Mail Program, under which the Federal Government subsidizes the cost of food 
transportation to isolated communities; the free mailing for some government mail and materials for the blind; and a reduced rate for library materials. 
                                               
95 The provinces of Ontario and Queb ec have delegated thei r registration powers to IIROC to register 
individuals who are carrying out certain functions with investment dealers. 
96 The Canada Post Corporation Act was amended in 2013 to make provisions for a reduced rate of 
postage for library materials. 
97 Urgent letters are defined as lett ers that are "transmitted  by a messenger for a fee at least equal to 
an amount that is three times the regu lar rate of postage payable for delivery in Canada of similarly addressed 
letters weighing fifty gr ams" (Canada Post Corpor ation Act, Section 21). 
98 The rate drops to Can$0.85 if the stam ps are purchased in a booklet or coil. WT/TPR/S/314 • Canada 
 
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  4.138.  Despite the constant decline in the number of pieces to be delivered, Canada Post has 
been delivering mail to an ever increasing num ber of addresses in Canada. Between 2006 and 
2013, the number of addresses has incr eased by 1.2 million to 15.5 million.99 At the same time, 
the volume of transaction mail (which includes letters, bills and statements), the Corporation's 
core product, has been declining every year, and stood at 9.4 billion pieces in 2013. The 
Corporation has been experiencing financial losses every year since 2011. A report by the Conference Board of Canada projected the annual loss to reach Can$1 billion by 2020.
100 The 
authorities indicated that losses are absorbed internally within the corporation. 
4.139.  In December 2013, the corporation unveiled a Five-Point Action Plan101 with the goal of 
returning to financial stability by 2019 while main taining its public policy obligations. The Plan 
comprises the following initiatives: converting door-to-door delivery to community mailbox 
delivery for roughly five million addresses; introducing a tiered pricing structure for lettermail; 
expanding convenience by opening more postal franchises; streamlining operations; and addressing the cost of labour, mostly through attrition. Canada Post is also focusing on investment 
in eCommerce, increasing its share of the parcel  segment of the market and improving its direct 
mail business.  
4.140.  The courier service market outside Canada Post's monopoly is open to competition. It is 
unregulated and there are no foreign ownership restrictions.
  
4.141.  Canada has not made any GATS commitments on postal services in its WTO Schedule on 
Specific Commitments, thus they remain unbound. With respect to courier services, this subsector contains partial GATS commitments, as some courier services remain unbound. 
4.3.3  Tourism 
4.3.3.1  Overview and developments 4.142.  The Canadian tourism industry is an important services sector, accounting for 
approximately 2% of Canadian GD P and 1.4% of total investment in Canada; it also contributes 
significantly to employment.
102 Total tourism revenue from domestic and international travellers 
exceeded Can$84 billion in 2013, while tourism revenue from foreign travellers amounted to 
Can$16.4 billion in 2013, making tourism Canada's most important services export.103 According 
to the World Economic Forum Travel & Tourism Competitiveness Report, Canada improved to 8
th place in 2013. Its strengths were rich natural resources, highly qualified human resources, 
cultural resources, and air transport infrastructure, where Canada ranked first in the world. 
Canada lost some ground in terms of price competitiveness (ticket takes and airport charges), visa 
requirements and environmental sustainability.104 
4.143.  Most of tourism in Canada is domestic, accounting for 81% of tourism revenues in 2013.105 
In terms of international arrivals, the United States is the most significant source. Arrivals from the 
United States have remained flat over the pe riod, whereas international arrivals from other 
countries have shown small gains, albeit from a much smaller base (Table 4.16). The other top 
countries in terms of international arrivals are the United Kingdom, France, China, and Germany. 
In terms of enterprises, small and medium sized business enterprises dominate the tourism sector, accounting for 98% of the sector.
106 
                                               
99 Canada Post Corporation (2014). 
100 Stewart-Patterson, Gill, and Hoganson (2013). 
101 Canada Post Corporation (2013). 
102 One in eleven jobs (1.6 million) are associated with the tourism economy, with over 618,000 directly 
supporting tourism. Canadian Tourism Commission (2011). 
103 CANSIM Table 376-0108 as cited in Canadian Tourism Commission (2013).  
104 WEF (2013).  
105 Canadian Tourism Commission online information. Viewed at: 
http://www.tourism.gc.ca/eic/site/034.nsf/eng/00444.html. 
106 Canada's Federal Tourism Strategy.  Viewed at: http://www.tourism.gc.ca. WT/TPR/S/314 • Canada 
 
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  Table 4.16 Tourism indicators, 2011-13 
 2011 2012 2013 
Tourism export revenue 
(Can$ billion) 15.5 16 16.4 
Total tourism GDP (Can$ million) 30,876 32,037 33,030 
 Transportation 6,736 6,986 7,163 
 Accommodation 7,277 7,536 7,730 
 Food and beverage services 3,910 4,105 4,268 
 Other tourism industries 4,849 5,017 5,125 
 Other industries 8,104 8,393 8,744 
Total tourism commodities 
(Can$ million)    
 Transportation 90,013 92,786 96,016 
 Passenger air transport 17,328 18,403 18,918 
 Passenger rail transport 304 294 285 
 Interurban bus transport 1,239 1,196 1,122 
 Vehicle rental 2,406 2,490 2,514 
 Vehicle repairs and parts 22,660 22,821 23,585 
 Vehicle fuel 43,377 44,807 46,764 
 Other transportation 2,699 2,775 2,828 
Accommodation 12,371 12,805 13,333 
Food and beverage services 57,276 59,850 62,009 
Other tourism commodities 30,117 31,080 31,581 
 Recreation and entertainment 22,959 23,549 23,720 
 Travel agency services 4,159 4,418 4,618 
 Pre-trip expenditures 2,751 2,854 2,972 
 Convention fees 248 259 271 
Employment generated by tourism  600,300 609,500 618,900 
International travellers entering or 
returning to Canada (thousands) 94,355 98,082 98,511 
 US residents entering Canada 20,543 20,719 20,435 
 Residents of other countries entering 
Canada 4,523 4,599 4,732 
Total non-resident travellers 25,066 25,318 25,167 
 Canadian resident s returning from the 
United States 52,802 55,609 56,208 
 Canadian residents returning from 
other countries 9,108 9,570 9,590 
Total Canadian residents 61,911 65,179 65,798 
Other travellers 7,378 7,585 7,546 
Tourism Demand (Can$ million)    
Transportation 31,283 32,617 33,568 
 Passenger air transport 16,476 17,493 17,989 
 Passenger rail transport 285 275 266 
 Interurban bus transport 1,164 1,123 1,054 
 Vehicle rental 1,649 1,712 1,728 
 Vehicle repairs and parts 1,556 1,562 1,621 
 Vehicle fuel 9,477 9,759 10,209 WT/TPR/S/314 • Canada 
 
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   2011 2012 2013 
 Other transportation 676 693 701 
Accommodation 11,226 11,621 12,101 
Food and beverage services 11,331 11,836 12,277 
Other tourism commodities 12,254 12,760 13,126 
 Recreation and entertainment 5,143 5,278 5,315 
 Travel agency services 4,132 4,390 4,589 
 Pre-trip expenditures 2,751 2,854 2,972 
 Convention fees  228 238 250 
Total other commodities 12,370 12,915 13,449 
Source: Statistics Canada, CANSIM tables 387-0001, 387-0002, 387-0003, and 387-0010. 
4.3.3.2  Legal and Regulatory Framework 
4.144.  The federal government, provinces and territories, municipalities, and the private sector all 
have a role in tourism. At the level of the federal government, Industry Canada takes a lead role in 
policy formulation and implementation, however over 20 federal departments and agencies are 
involved in tourism activities or services, such  as Canada Border Services Agency, Canadian 
Heritage and Parks Canada. During the fiscal year 2011/12 over Can$645 million was spent at the federal level for programmes and projects with a direct impact on tourism. Some of these 
programmes include regional tourism development programmes, tourism infrastructure, and 
tourism marketing. 
4.145.  The Canadian Tourism Commission (CTC), a government Crown Corporation established by 
the
 Canadian Tourism Commission Act (S.C. 2000, c. 28), is responsible for promoting Canada as 
an international tourism destination. The CTC pursues the policy goal of creating a vibrant tourism sector that provides significant and sustained benefits for the Canadian economy and its people 
through partnerships with diverse partners including provincial and territorial marketing 
organization, destination marketing organizations, federal and sub-federal governments of Canada, and the private sector. 
4.146.  Canada does not have a federal tourism act or legislation, only the Act establishing the 
CTC. Activities including visa issuance and faci litation, air sector competitiveness and border 
clearance are governed federally; however, other laws and regulations for tourism activities and travel agents are at the provincial/territorial le vel. For example, the licencing of travel agents, 
regulation of the food and beverage and acco mmodations industries, food safety, and liquor 
distribution and sale are all governed by provinces/ territories subject to their individual legislation. 
Some provinces, such as British Columbia, Ontario and Quebec, have a specific Travel Assurance 
Fund to compensate consumers who do not receive their travel services. Other areas, such as 
hotel green eco-rating, tour operators approved to offer travel for Chinese groups, and a passenger rights code of conduct for airlines, are voluntary programmes by the private sector. 
4.147.  At the provincial or territorial level, the legislation or regulations pertaining to tourism 
activities varies significantly. An overview of selected provincial and territorial laws and regulations 
is provided in Table 4.17. WT/TPR/S/314 • Canada 
 
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  Table 4.17 Selected Tourism Related Legi slation of the Provinces and Territoriesa 
Province/Territory Legislation 
British Colombia The Tourism Act  
Enables the Ministry to carry  out the duties and powers necessary in relation to 
tourism policy, tourism services and infra structure, industry support and tourism 
marketing, including powers related to ro les of the newly formed crown Destination 
British Columbia.  The Hotel Guest Registration Act  
Sets out the requirements for a record of guest information that must be maintained 
by a hotel.  
The Hotel Keepers Act  
Regulates the hotel industry in relation to liens on guest property, liability for guest property, ability to maintain order (issue offence). The Tourist Accommodation (Assessment Relief) Act  
Provides property assessment relief for eligible properties.  The Vancouver Tourism Levy Enabling Act  
Provides a framework for the Lieutenant Gove rnor in Council with regard to levies 
applied to tourism businesses, collection of levies, etc.  
 Provincial Sales Tax Act  
Authorized under the Provincial Sales Tax Act, the Municipal and Regional District Tax (MRDT) is a tax of up to 2% charged on sales of taxable accommodation in participating municipalities and regional districts in B.C. The tax can apply to the 
entire municipality or regional district, or to  a specific area within the municipality or 
regional district. The MRDT assists municipalities, regional districts and other eligible entities in promoting tourism in their area  and, to a lesser extent, financing new 
tourist facilities or programs. The MRDT applies to taxable accommodation sold in hotels, motels, resorts, hostels, bed & brea kfasts and other establishments offering 
short term accommodation. The BC Ministry of Finance charges an administration fee 
to cover the cost of administering the tax, and provides the balance of the tax collected to the municipality, regional district or eligible entity on a monthly basis.  
Business Practices and Consumer Pr otection Act – Travel Industry 
Regulation  
The Travel Industry Regulation governs the operation of British Columbia travel agencies and wholesalers. The Regulation also governs payments into a Travel Assurance Fund and establishes eligibility requirements. The Travel Assurance Fund (TAF) provides a possible source of compen sation when consumers do not receive the 
travel services they purchased through a BC licensed travel agent. Consumer 
Protection BC is a not-for- profit authority established under the Business Practices 
and Consumer Protection Act that has signed an administrative agreement with the Province of BC setting out the terms and conditions under which the authority will 
operate and remain accountable to the government.  Other legislation that impacts BC's tourism industry, includes: Assessment Act, British Columbia Wine Act, Commercial Rive r Rafting Safety Act, Water Sustainability 
Act, Environment and Land Use Act, Enviro nmental Assessment Act, Fisheries Act, 
Forest and Range Practi ces Act, Heritage Conservation Act, Land Act, Liquor Control 
and Licensing Act, Liquor Di stribution Act, Motor Vehi cle (All Terrain) Act, Motor 
Vehicle Act, Park Act, Public He alth Act, and the Wildlife Act. 
Northwest 
Territories The Northwest Territories To urism Act and Regulations  
Governs the activities of anyone offering commercial guided tourism services in the 
NWT. 
 
The Northwest Territories W ildlife Act and Regulations- 
Governs the activities of big game outfitters; these outfitters also have to comply 
with the Tourism Act. WT/TPR/S/314 • Canada 
 
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  Province/Territory Legislation 
Nunavut Travel and Tourism Act (TTA) 
Was adopted from the Northwest Territories, and Nunavut is in the process of updating the TTA which regulates businesses that provide accommodations to the travelling public, or that provide servic es associated with outdoor recreational 
activities. The purpose of the TTA is to support the development of a tourism industry, protect the interests of licence d tourism operators, support the safe 
operation of tourism businesses, and assure  that tourism in Nunavut is a regulated 
and safe industry. Pursuant to the TTA, three types of licences are issued, namely, Outfitter Licence, Tourist Establishment Li cence, and Building Permit. The following 
entities require a Tourist Establishment licence—hotels, lodges, motels, outpost camps, tent camps, cabin establishments, camping establishments, bed & breakfasts, 
and homestays. Even though Nunavut licences all these tourist establishments, the TTA does not specifically addresses restaurants or travel agents. 
Quebec Ministry of Tourism Act  
Governs activities of the Quebec Ministry of Tourism 
 
Law for Tourist Accommodation Establishments 
Regulations for Tourist Accommodation Establishments  
Law for Travel Agents  
Saskatchewan The Tourism Saskatchewan Act  
Governs the structure and functions of Tourism Saskatchewan. The organization is responsible primarily for the provision of tourism marketing, industry development 
and visitor information services for the province.  The Provincial Sales Tax Act  
Mandates that anyone selling taxable goods or services in Saskatchewan is required 
to obtain a vendor's license and PST number to be legally recogniz ed as a business.  
 The Liquor Consumption Tax Act  
The Act and the issuance of liquor licenses  is regulated by the Saskatchewan Liquor 
and Gaming Authority and the Ministry of Finance.  The Saskatchewan Hotel Keepers Act, 1978  Contains provisions for liabili ty, property exempt from seizur e, registration of guests, 
and disturbances that apply to hotel keepers.  The Public Health Act, 1994  
Saskatchewan's Public Accommodation Regulations and Provincial Itinerant Use 
Accommodation Standards require that all pu blic accommodation pr oviders (itinerant 
use accommodation) operate under a license issued by the local health authority. 
A license cannot be granted if regu lations and standards are not met. 
 The Consumer Protection and Business Practices Act   
Various sections pertain to travel agencies /travel clubs. The Act sets out obligations 
of suppliers in their interactions with co nsumers, requires a consumer to make a 
reasonable effort to minimi ze any loss and to attempt to resolve a dispute with a 
supplier before taking further action.   The Natural Resources Act and The Outfitter and Guide Regulations, 2004  
Governs the responsibilities of hunting and angling outfitters and guides and the use thereof by non-resident hunte rs and anglers; and other acts and regulations also 
govern responsibilities of hunters/anglers and the issuance of licences, as overseen by Ministry of the Environment. 
a This is not an exhaustive list of touris m legislation for the provinces and territories. 
Source: Information provided by  the Canadian authorities. 
4.3.3.3  Policy actions 
4.148.  In 2011 Canada created a Federal Tourism Strategy to provide a government-wide 
approach for the tourism sector, positioning it for long-term growth and competitiveness. To 
implement the strategy, a steering committee of se nior federal executives was formed. While the 
committee consists of government officials, the private sector was invited to attend meetings. The strategy identifies four priority areas: 
• Increasing awareness of Canada as a premier tourist destination; WT/TPR/S/314 • Canada 
 
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  • Facilitating access and movement for travellers while ensuring the safety and integrity of 
 Canada's borders; 
• Encouraging product development and investments in Canadian tourism assets and 
 products; and  
• Fostering an adequate supply of skills and labour to enhance visitor experiences through 
 quality service and hospitality.107 
4.149.  Under the strategy a number of key achievements have been reached such as the creation 
of the Canadian Signature Experiences programme, as well as leading trade missions for tour 
operators and travel agents. Furthermore, Canada's Blue Sky policy108, announced in 2006, also 
supports the Federal Tourism Strategy through new or expanded air transport agreements or administrative arrangements covering over 85 countries. In particular, the following markets have 
been addressed in the context of air transport negotiations since the creation of the Federal 
Tourism Strategy in 2011: Brazil, Japan, India, Me xico, Pakistan, Rwanda, Tu rkey, Bahrain, Kenya, 
Sierra Leone, Honduras, China, Nicaragua, Curacao, Saint Maarten, Colombia, Senegal, Gambia, 
Uruguay, Paraguay, Kingdom of Saudi Arabia, Azer baijan, Burkina Faso, Peru, Bangladesh, Algeria, 
Ethiopia, South Africa, Israel, Malaysia, Ecuador,  Macedonia, Panama, Haiti, Burundi, Togo, and 
the Philippines. 
4.150.  Canada's Economic Action Plan initiatives has also contributed to the tourism sector by 
providing funding for tourism events includ ing the 2015 Pan and ParaPan American Games, 
national parks, infrastructure, visa processing capacity, and marketing initiatives.  
4.3.3.4  GATS and FTA commitments 
4.151.  Under the GATS, Canada has made commitments for hotels, restaurants, travel agencies, 
and tour operators' services. The limitations in these areas mainly relate to residency requirements or commercial presence requirements for travel agents, and to the sale of liquor or alcoholic 
beverages in hotels and restaurants. Tourist guide services and other tourism services remain 
unbound under the GATS. In its FTAs, Canada has taken strong commitments in the tourism services sector, with a limited number of non-conforming measures at the provincial/territorial 
level. These non-conforming measures exist in certain provinces and mainly relate to residency 
requirements for licenses for certain types of hunting guide services and residency and/or commercial presence requirements for travel  agency and travel wholesaler services. 
4.3.4  Environmental services 
4.152.  Canada has made full commitments under the GATS for environmental services, covering 
all the sub-sectors of sewage services, refuse disposal services, sanitation and similar services, and other environmental services. In Canada's FTAs, which generally follow a negative list 
approach, no restrictions were listed, and thus the FTAs reaffirm the open commitments already 
given in the WTO. 
4.153.  According to a study by Environmen tal Business International, Canada had an 
environmental market of US$23.4 billion in 2014, accounting for about 2.5% of the global 
environmental market, and growing at about 3% per year. Further, Canada has strong international competitiveness in consulting and engineering, remediation, and analytical environmental services, but is weaker in soli d waste management, hazardous waste management, 
and water treatment works.
109 In 2012, sales of environmental services in Canada amounted to 
Can$2.3 billion of which environmental consulting se rvices was the largest contributor, with about 
66% of total environmental services sales. Site remediation and emergency environmental 
services generated the remaining Can$757 million in revenue.110 The major export market for 
                                               
107 Government of Canada (2014a). 
108 Blue Sky Policy, Transport Canada online information. Viewed at: 
http://www.tc.gc.ca/eng/policy/ ace-blueskypolicy-menu-749.htm.  
109 "Global Environmental Market Data", Environm ental Business International, Inc. Viewed at: 
http://www.ebionline.org. 
110 Statistics Canada, Survey of Environmen tal Goods and Services, 2012. Viewed at: 
http://www.statcan.gc.ca/daily-quotidien/150313/dq150313c-eng.htm. WT/TPR/S/314 • Canada 
 
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  environmental goods and services is the United States, accounting for 78% of environmental 
exports of Can$748 million in 2012.111 The remainder was distributed amongst other international 
markets. 
4.154.  Businesses operating in Canada spent Ca n$9.5 billion in 2010 to protect the environment, 
up by 9% from 2008. Following a long-standing trend, the largest share of these expenditures was 
spent to deal with pollutants after they were cr eated. The oil and gas extraction industry spent 
more on environmental protection than any othe r industry surveyed, followed by the electric 
power generation, transmission and distribution industry, accounting for 42% and 12% of the total 
expenditures for 2010, respectively. Of the Can $4.2 billion in capital expenditures made for 
environmental protection, the majority was for pollution abatement and control (35%) followed by pollution prevention (26%).
112 
4.155.  Table 4.18 provides a summary of the ma rket structure of environmental services and 
their main characteristics. 
Table 4.18 Market structure of environmental services, 2014 
Type of service Main Features 
Water utilities and waste water treatment 
services  
Share of the global market  2% (2010) 
Volume 3,472 km3 per year 
Level of regulation Federal, provincial, and territorial 
Main regulations Canada Water Act,  International Rivers Improvement 
Act, Wastewater Systems Effluent Regulations 
Main objectives of the regulations  Determines how waste water can be treated and 
disposed 
Solid and hazardous waste management 
services  
Share of the global market  2% (2010) 
Share of the private sector in the revenues of  72% 
Market size, number of firms, and employment  For private sector/municipal 
1,697 firms / n.a. 
27,261 employees / 7,816 employees 
Can$5,959 million revenues / Can$2,321 million 
revenues 
Public sector customer / private sector customer 
ratio  81% of employees in the private sector 
Level of regulation Federal, provincial, and territorial 
Main regulations Canadian Environmental Protection Act 1999, 
Fisheries Act 
Main objectives of the regulations Determines how waste can be disposed  
Air and noise pollution abattement services  
Level of regulation Federal, provincial, and territorial 
Main regulations  Canadian Environmental Protection Act 1999 
Main objectives of the regulations Sets limits on pollutants 
Remediation and nature and landscape protection (NLP) services  
Share of the worldwide remediation and industrial 
services market  4% (2010) 
Revenues, number of firms and employment in the 
remediation and industrial services sector  173,925 employees (2013) 
Remediation-597 firms 
Level of regulation Federal, provincial, and territorial 
Source: Compiled by the WTO Secretariat from USITC, Statistics Canada, and En vironment Canada online 
information. 
4.3.4.1  Regulatory Aspects 
4.156.  Regulation of environmental services in  Canada falls under federal, provincial and 
territorial and, in some cases, municipal government jurisdiction. Various federal government 
departments, including Environment Canada, the Department of Fisheries and Oceans, Natural 
                                               
111 Statistics Canada, Survey of Environmen tal Goods and Services, 2012. Viewed at: 
http://www.statcan.gc.ca/daily-quotidien/150313/dq150313c-eng.htm. 
112 Statistics Canada, Environmental Protection Expenditures in the Business Sector, 2010. WT/TPR/S/314 • Canada 
 
- 152 - 
 
  Resources Canada, Health Canada and Industry Canada play important roles in establishing 
national environmental standards, enforcing fede ral environmental regulations, consulting with 
industry stakeholders on new policies, addressing international issues and conducting critical research on the environmental services industries.  
4.157.  The Canadian Environmental Protection Act, 1999 (CEPA 1999) aims at preventing 
pollution and protecting the environment and human health. The goal of CEPA 1999 is to 
contribute to sustainable development - deve lopment that meets the needs of the present 
generation without compromising the ability of fu ture generations to meet their own needs. A key 
aspect of CEPA 1999 is the prevention and manage ment of risks posed by toxic and other harmful 
substances. CEPA 1999 also manages environmental and human health impacts of products of biotechnology, marine pollution, disposal at sea, vehicle, engine and equipment emissions, fuels, 
hazardous wastes, environmental emergencies and other sources of pollution. In addition, 
CEPA 1999 provides the government with broad powers to issue a range of nationally applied regulatory and non-regulatory tools specifically for activities carried out on federal and aboriginal 
lands. Both the Minister of the Environment and th e Minister of Health jointly administer the task 
of assessing and managing the risks associated with toxic substances. 
4.158.  Provincial and territorial governments are responsible for many of the in-the-field aspects 
of environmental services regulation in Canada. Provincial and territorial responsibilities include 
establishing provincial environmental standards; consulting with industry stakeholders; undertaking inspection, investigation and enforcement activities to ensure that environmental services firms are in compliance with environmental regulations; addressing regional 
environmental issues; monitoring and reporting of air, water and soil quality levels; and oversight 
of environmental remediation projects. In additi on, provincial and territorial governments are 
responsible for oversight of environmental services provided at the municipal level.  
4.159.  Similar to the federal level, several mi nistries in each province and territory share 
responsibility for the regulation of environmenta l services. In Ontario, for example, regulatory 
authority is shared between the provincial Minist ry of the Environment, the Ministry of Natural 
Resources, the Ministry of Municipal Affairs, the Ministry of Health and Long-Term Care, and the 
Ministry of Northern Development and Mines, amongst others. Harmonization of environmental services regulations across Canada is supported by the Canadian Council of Ministers of the Environment, an intergovernmental forum composed of federal, provincial and territorial ministers 
that seeks to collectively establish nationally consistent environmental standards, strategies and 
objectives so as to achieve a high level of environmental quality across the country. 
4.160.  Provincial and territorial legislatures are responsible for deciding which responsibilities to 
delegate to municipalities. Municipalities are then authorized to regulate those areas through the 
issuance of bylaws. In the case of environmental services, many municipal governments provide environmental services such as refuse disposal serv ices and sewage services directly to the public. 
For those services that have been privately contracted, municipal Conservation Authorities conduct 
monitoring and management of private environmental services contracts.  
4.3.4.2  Industry Structure 4.161.  The waste management industry in Canada comprises the collection and transportation of 
waste for disposal and recycling, the operation of hazardous and non-hazardous waste disposal 
facilities, operation of transfer stations, operation of recycling and compost facilities, and hazardous waste treatment. These services are provided by public bodies such as local 
governments or municipalities, or private firms that are typically contracted by local governments. 
The number of full-time workers in the waste ma nagement industry, including both government 
and business sectors, totalled just over 32,000  in 2010, an increase of 2% from 2008. Over 
1,500 Canadian firms are engaged in this industry, providing a number of services such as waste 
management planning, consulting, engineering and analytical services, customized landfill and liner design, landfill management, stabilization and containment services and procedures for hazardous waste and pollution prevention systems. Hazardous waste in Canada is comprised of 
household hazardous waste, mostly batteries, medication, and paint; e-waste; and radioactive 
waste, i.e. spent nuclear fuel waste. The majority of household hazardous waste is returned to suppliers or waste depots, while e-waste is most often brought to waste depots. A lot of WT/TPR/S/314 • Canada 
 
- 153 - 
 
  radioactive waste is imported or exported for treatment or recycling in the United States, 
i.e. 358,236 tonnes was imported and 425,334 tonnes was exported in 2010.113 
4.162.  Hazardous wastes and hazardous recyclable materials can come from a myriad of sources 
such as residues from industrial operations, manufacturing processing plants and hospitals, or they 
can be obsolete materials such as waste lubricants and pesticides. Canada implements its 
international obligations as a party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (Basel Convention), the OECD Decision on the 
Control of Transboundary Movement of Wastes Destined for Recovery Operations, and the 
Canada–USA Agreement on the Transboundary Move ment of Hazardous Waste through the Export 
and Import of Hazardous Waste and Hazardous Recy clable Material Regulations. These regulations 
control and track the movement of hazardous waste and hazardous recyclable material between 
Canada and other countries, as well as implement prior informed consent mechanisms for exports, 
imports and transit of such materials. The regulations cover hazardous waste and hazardous recyclable material generated from industrial, commercial, governmental, and institutional 
activities. More than 99% of Canada's imports and 98% of Canada's exports of both hazardous 
waste and hazardous recyclable materials are with  the United States. In 2012, the quantity of 
hazardous waste and hazardous recyclable material imported into Canada was 346,700 tonnes, 
while the quantity exported from Canada was 496,095 tonnes.
114 
4.163.  Radioactive waste in Canada is comprised of nuclear fuel waste, low-level and 
intermediate-level waste, and uranium mine tailings. Canada exports radioactive waste to the United States for recycling and volume reduction. Metal radioactive waste is melted at 
United States' commercial facilities for recycling within the nuclear industry, and combustible 
radioactive waste is volume-reduced through incineration, with the residual material (ash) returned to Canada for long-term management. Canada also exports very-low-level radioactive 
waste to the United States for disposal in commercial hazardous waste facilities. This export route 
is limited to materials that meet the waste acceptance criteria for disposal as hazardous waste. Further, Canada repatriates U.S.-origin highly en riched uranium materials under the Global Threat 
Reduction Initiative, in response to commitments made by the Government of Canada at the 2010 
and 2012 Nuclear Security Summits.   
4.164.  The wastewater sector in Canada is comprised of municipal wastewater, industrial 
wastewater, and storm water, of which Canada renews an average of 3,472 km3 per year, one of 
the largest in the world. Most of the wastewater is generated from households, accounting for 65% 
of wastewater.
115 Industrial wastewater accounts for 18%, and discharge from electric and nuclear 
power generating facilities accounts for the majority of this wastewater. Not all wastewater is 
treated before being released in Canada. While the majority of municipal wastewater is treated by 
municipal sewers before being released into the environment, the situation is different for industrial wastewater, as over 85% is rele ased to surface freshwater or tidewater.
116 Canadian 
firms in the wastewater industry provide a number of services, notably water purification services 
and rain water harvesting and treatment.  
4.165.  Canada's air pollution control industry  employs over 65,000 people, and firms in this 
industry export over Can$187 million annually in services and products. In recent years, annual 
Canadian air pollution control revenues exceeded Can$771 million, with 10% of services and 29% 
of equipment revenues derived from international sales. Canadian firms offer a variety of air pollution control services such as environmental impact assessments, preparation of performance 
specifications and compliance management, expert air monitoring, sampling and testing analysis 
with dispersion modelling and prevention control processes and mechanisms. 
4.166.  Soil remediation and contaminated site assessment technologies and services are in high 
demand in Canada. Between 2002 and 2008, the Ca nadian soil remediation industry grew by 
26%; in 2005 revenues in the industry were between Can$250 million and Can$500 million. Canadian firms in this industry have a wide range of service expertise in the assessment, clean-up, decommissioning and rehabilitation of soil contaminated by petroleum hydro carbons, pesticides, 
in-organics, heavy metals and radioactive wastes. The Federal Contaminated Sites Action Plan 
                                               
113 "Human Activity and the Enviro nment, 2012", Statistics Canada. 
114 "Canadian Environmental Prot ection Act (1999) 2013 Annual Re port", Environment Canada. 
115 "Human Activity and the Enviro nment, 2012", Statistics Canada. 
116 "Human Activity and the Enviro nment, 2012", Statistics Canada. WT/TPR/S/314 • Canada 
 
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  (FCSAP) is a 15-year programme that was established in 2005 with funding of Can$3.5 billion from 
the Government of Canada. The primary objective of this programme is to reduce environmental 
and human health risks from known federal contaminated sites and associated federal financial liabilities. Between 2011 and 2014, the Government of Canada invested Can$1 billion in the FCSAP 
programme, including work on close to 1,100 federal remediation projects.  
4.167.  The Government of Canada is also impl ementing the Nuclear Legacy Liabilities Program 
(NLLP) to decommission outdated nuclear research facilities, remediate lands contaminated by 
past practices, and manage legacy waste at Atomic  Energy of Canada Limited (AECL) sites. Since 
the inception of the NLLP in 2006, the Government of Canada has spent Can$1.2 billion to control and reduce risks and liabilities at AECL sites. In addition, the Government's Port Hope Area Initiative (PHAI) is implementing long-term solutions for the clean-up and safe management of 
historic low-level radioactive waste in the municipalities of Port Hope and Clarington, Ontario. The 
Can$1.3 billion implementation phase of the PHAI was initiated in 2012, and is expected to take 
about 10 years to complete.  
4.3.4.3  Sustainable Technologies 
4.168.  Sustainable technologies are a priority sector in Canada's Global Markets Action Plan and, 
as such, Canada is seeking to further liberalize trade in this area, notably in the context of the 
plurilateral initiative for a WTO Environmental Goods Agreement. The sustainable technologies 
sector includes both environmental goods and services. The Canadian sustainable technologies sector, which is highly export intensive, is comprised of several sub-sectors: industrial processes and products, transportation, energy efficien cy green buildings, recycling, recovery and 
remediation, water and wastewater, power generation and, energy infrastructure/smart grid 
(Table 4.19). In 2012, the Canadian sustainable technologies sector, which mainly includes small and medium-sized enterprises, was estimated at Can$11.3 billion, directly employed around 
41,100 people and had research and developmen t expenditures of around Can$1.143 billion.
117 
Table 4.19 Overview of Sustai nable Technology Sub-sectors 
Sub-Sector Description of sub-sector Percent of 
sustainable 
technology 
industry 
revenues  Percent of 
sustainable 
technology 
industry 
employment  Percent of 
sustainable 
technology 
industry 
research & 
development 
Industrial 
Processes & Products Bio-based products 
Emissions detection and/or control Energy efficiency - industrial Nano and high performance materials Water treatment – industrial 17 13 13 
Transportation Electric charging components & 
systems 
Hydrogen fueling components & 
systems 
Marine transportation 
Vehicle control systems 
Vehicle and components (e.g. 
batteries, fuel cells, drive trains) 
Vehicle emissions abatement 
Vehicle heat & energy recovery 16 14 21 
Energy Efficiency 
Green Buildings Building energy management 
Building materials District heating & cooling Energy use information systems Geoexchange Glass Lighting Lighting management 16 20 14 
                                               
117 Analytica Advisors (2014). WT/TPR/S/314 • Canada 
 
- 155 - 
 
  Sub-Sector Description of sub-sector Percent of 
sustainable 
technology 
industry 
revenues  Percent of 
sustainable 
technology 
industry 
employment  Percent of 
sustainable 
technology 
industry 
research & 
development 
Recycling, 
Recovery & 
Remediation e-waste 
Hazardous waste 
Industrial waste 
Municipal solid & organic waste 
Refrigerants 
Soil remediation - non extractive 14 14 3 
Water & 
Wastewater Desalination 
Greywater treatment Groundwater remediation Nuclear, heavy water treatment 
Potable water 
Wastewater treatment Water infrastructure Water management Water use information software (consumer & commercial) 12 10 7 
Power Generation Bio-feedstock to heat 
Co-generation (from bio-
feedstock) 
Fuel cells 
Geothermal 
Hydro (in-river, tidal, wave) 
Solar - Photovoltaic and 
Concentrator Solar Panels 
Solar components & systems 
Waste-to-energy (industrial, 
municipal waste) 
Wind 
Wind components & systems 11 12 9 
Energy 
Infrastructure/Smart Grid Advanced batteries 
Advanced metering infrastructure (AMI) 
Demand Response 
Distributed generation & dispatch Distribution automation & security Energy storage (e.g. thermal, mechanical, hydrogen) Grid asset management Microgrids Transmission automation & security 7 8 9 
Other  7 9 24 
Source: Information provided by Canadian authorities. WT/TPR/S/314 • Canada 
 
- 156 - 
 
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  5  APPENDIX TABLES 
Table A1. 1 Canada's Balance of Payments, 2011-14 
(Can$ billion) 
Current account and capital account 2011 2012 2013 2014
Current account balance -47.2 -59.9 -56.3 -43.5
  Goods and services balance -21.2 -33.8 -30.2 -17.9 
   Exports of goods 456.6 463.1 479.3 528.6 
   Exports of services 84.4 90.0 92.5 95.2 
     Travel 16.6 17.4 18.2 19.3 
     Transportation 13.6 14.0 14.2 14.7 
     Other servicesa 54.1 58.6 60.1 61.2 
   Imports of goods 456.0 474.3 486.5 523.7 
   Imports of services 106.2 112.7 115.5 117.9 
     Travel 33.0 35.0 36.2 37.2 
     Transportation 23.7 23.7 24.0 24.7 
     Other servicesa 49.5 53.9 55.3 56.0 
  Primary income balance -23.1 -22.8 -24.2 -24.2 
   Primary income credit 69.3 73.6 75.2 81.4 
     Compensation of employees 1.2 1.2 1.2 1.3 
     Investment income 68.2 72.4 74.0 80.1 
   Primary income debit 92.4 96.4 99.4 105.7 
     Compensation of employees 3.1 3.2 3.3 3.4 
     Investment income 89.3 93.2 96.1 102.3 
  Secondary income balance -2.9 -3.3 -1.9 -1.4 
   Credits 9.8 9.7 11.5 11.9 
     Private transfersb 3.3 2.8 3.6 4.2 
     Government transfers 6.5 6.8 7.9 7.7 
   Debits 12.7 13.0 13.4 13.3 
     Private transfersb 7.2 7.5 7.7 8.1 
     Government transfers 5.5 5.4 5.7 5.3 
Balance on capital account 0.0 -0.1 -0.1 0.0
  Credit 0.3 0.3 0.3 0.3 
  Debit 0.3 0.4 0.4 0.3 
Net lending / net borrowing, from  current and capital accounts -47.2 -60.1 -56.3 -43.5 
Financial account balancec 54.0 59.2 55.7 36.6
Net acquisition of financial assets 109.2 122.1 76.8 135.6 
  Canadian direct investment abroad 51.6 53.9 52.0 58.2 
  Canadian portfolio investment 18.3 35.1 29.3 56.4 
  Official international reserves 8.1 1.7 4.9 5.9 
  Other Canadian investment 31.2 31.3 -9.4 15.1 
Net incurrence of liabilities 163.2 181.2 132.5 172.2 
  Foreign direct in vestment in Canada 39.3 39.2 72.7 59.6 
  Foreign portfolio investment 100.5 83.5 43.1 59.8 
  Other foreign investment 23.4 58.5 16.8 52.8 
Net lending / net borrowing, from financial accountd -54.0 -59.2 -55.7 -36.6 
Net errors and omissions -6.8 0.9 0.6 6.9
a Other services include both commerci al services and go vernment services. 
b Private transfers and other priv ate transfers include the counterpart of adjustments for insurance 
claims volatility made in the insurance services. 
c In the financial account, a plus sign denotes an increase in investment and a minus sign denotes a 
decrease in investment. 
d A net lending is shown as a plus sign whereas a net borrowing is shown as a minus sign. 
Source: Statistics Canada, Cansim tables 376-0101 and 376-0102. WT/TPR/S/314 • Canada 
 
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  Table A1. 2 Merchandise exports and re-exports by HS sections, 2011-14  
(Can$ million and %) 
Description 2011 2012 2013 2014
Total 446,707 455,171 471,948 524,495 
 (% of total exports and re-exports) 
1 - Live animals and animal products 2.3 2.3 2.4 2.6 
2 - Vegetable products 4.4 4.7 4.8 4.9 
3 - Animal or vegetable fats and oils and their 
 cleavage products; prepared  edible fats; animal or 
 vegetable waxes 0.8 0.9 0.7 0.6 
4 - Prepared foodstuffs; beverages, spirits and 
 vinegar; tobacco and manufactures tobacco 
 substitutes 2.3 2.5 2.6 2.6 
5 - Mineral products 28.0 27.8 28.4 29.2 
6 - Products of the chemical or allied industries 6.7 6.3 6.3 6.0 
7 - Plastics and articles th ereof; rubber and articles 
 thereof 3.6 3.6 3.6 3.6 
8 - Raw hides and skins, leat her, furskins and articles 
 thereof; saddlery and harness; travel goods, 
 handbags and similar contai ners; articles of animal 
 gut (other than silk-worm gut) 0.2 0.3 0.3 0.3 
9 - Wood and articles of wood; wood charcoal; cork 
 and articles of cork; manufactures of straw, of  esparto or of other plaiti ng materials; basketware 
 and wickerwork 2.0 2.2 2.7 2.7 
10 - Pulp of wood or of other fibrous cellulosic 
 material; recovered (waste and scrap) paper or 
 paperboard 4.1 3.6 3.5 3.4 
11 - Textiles and Textile Articles 0.7 0.7 0.7 0.7 
12 - Footwear, headgear, umbrellas, sun umbrellas, 
 walking-sticks, seat-sticks,  whips, riding-crops and 
 parts thereof; prepared feathers and articles made 
 therewith; artificial flowers; articles of human hair 0.1 0.1 0.1 0.1 
13 - Articles of stone, plaster, cement, asbestos, mica 
 or similar materials; ce ramic products; glass and 
 glassware 0.4 0.4 0.4 0.4 
14 - Natural or cultured pearls, precious or semi-
 precious stones, precious metals, metals clad with 
 precious metal and articles thereof; imitation 
 jewellery; coin 5.9 5.1 5.1 4.6 
15 - Base metals and articles of base metal 8.2 7.5 7.0 7.1 
16 - Machinery and mechanical appliances; electrical 
 equipment; parts thereof; sound recorders and 
 reproducers, television image and sound recorders 
 and reproducers, and parts and accessories of 
 such articles 10.4 10.5 9.9 9.7 
17 - Vehicles, aircraft, vessels and associated 
 transport equipment 14.0 15.9 15.4 15.4 
18 - Optical, photographic, cinematographic, 
 measuring, checking, precision, medical or 
 surgical instruments and apparatus; clocks and 
 watches; musical instruments; parts and 
 accessories thereof 1.3 1.3 1.3 1.3 
19 - Arms and ammunition ; parts and accessories 
 thereof 0.1 0.1 0.1 0.1 
20 - Miscellaneous manufactured articles 1.3 1.4 1.4 1.4 
21 - Works of art, collectors' pieces and antiques 3.0 3.0 3.3 3.4 
Source: Government of Canada, Statistics Canada, Canada InternationalMerchandise Trade Database. WT/TPR/S/314 • Canada 
 
- 162 - 
 
  Table A1. 3 Merchandise imports by HS sections, 2011-14  
(Can$ million and %) 
Description 2011 2012 2013 2014
Total 446,666 462,072 475,630 511,409 
 (% of total imports) 
1 - Live animals and animal products 1.1 1.1 1.2 1.2 
2 - Vegetable products 2.3 2.4 2.4 2.5 
3 - Animal or vegetable fats and oils and their cleavage 
 products; prepared edible fats; animal or vegetable  waxes 0.2 0.2 0.2 0.2 
4 - Prepared foodstuffs; beverages, spirits and vinegar; 
 tobacco and manufactures tobacco substitutes 3.8 3.9 4.0 4.1 
5 - Mineral products 12.9 12.1 11.8 11.2 
6 - Products of the chemical or allied industries 8.4 8.2 8.4 8.4 
7 - Plastics and articles thereof; rubber and articles thereof 4.8 4.9 4.8 4.9 
8 - Raw hides and skins, leat her, furskins and articles 
 thereof; saddlery and harnes s; travel goods, handbags 
 and similar containers; articles  of animal gut (other than 
 silk-worm gut) 0.4 0.4 0.5 0.5 
9 - Wood and articles of wood; wood charcoal; cork and 
 articles of cork; manufactures of straw, of esparto or of 
 other plaiting materials; basketware and wickerwork 0.7 0.7 0.7 0.7 
10 - Pulp of wood or of other fibrous cellulosic material; 
 recovered (waste and scrap) paper or paperboard 2.1 1.9 1.9 1.9 
11 - Textiles and Textile Articles 3.0 2.9 3.0 3.0 
12 - Footwear, headgear, umbrellas, sun umbrellas, 
 walking-sticks, seat-sticks,  whips, riding-crops and 
 parts thereof; prepared feathers and articles made 
 therewith; artificial flowers; articles of human hair 0.6 0.6 0.6 0.6 
13 - Articles of stone, plaster, cement, asbestos, mica or 
 similar materials; ceramic products; glass and  glassware 1.1 1.1 1.1 1.2 
14 - Natural or cultured pearls, precious or semi-precious 
 stones, precious metals, metals clad with precious 
 metal and articles thereof; imitation jewellery; coin 3.9 3.3 3.0 2.8 
15 - Base metals and articles of base metal 6.8 6.9 6.6 7.0 
16 - Machinery and mechanical appliances; electrical 
 equipment; parts thereof; sound recorders and 
 reproducers, television image and sound recorders and 
 reproducers, and parts and accessories of such articles 24.3 24.4 24.1 24.1 
17 - Vehicles, aircra ft, vessels and asso ciated transport 
 equipment 16.1 17.0 17.4 17.4 
18 - Optical, photographic, cinematographic, measuring, 
 checking, precision, medical or surgical instruments and 
 apparatus; clocks and watches; musical instruments; 
 parts and accessories thereof 2.9 3.1 3.0 2.9 
19 - Arms and ammunition; parts and accessories thereof 0.1 0.1 0.1 0.1 
20 - Miscellaneous manufactured articles 2.9 3.1 3.2 3.2 
21 - Works of art, collectors' pieces and antiques 1.6 1.6 1.9 1.9 
Source: Government of Canada, Statistics Canada, Canada International Merchandise Trade Database. WT/TPR/S/314 • Canada 
 
- 163 - 
 
  Table A1. 4 Merchandise exports and re-e xports by trading partner, 2011-14  
(Can$ million and %) 
Description 2011 2012 2013 2014
Total exports and re-exports 446,707 455,171 471,948 524,495 
 (% of exports and re-exports) 
 America 76.8 77.6 78.7 79.5 
  United States 73.6 74.5 75.9 76.8 
  Other America 3.2 3.1 2.9 2.7 
   Mexico 1.2 1.2 1.1 1.0 
   Brazil 0.6 0.6 0.5 0.4 
   Chile 0.2 0.2 0.2 0.2 
   Colombia 0.2 0.2 0.2 0.2 
   Peru 0.1 0.1 0.1 0.2 
   Venezuela 0.1 0.2 0.2 0.1 
   Cuba 0.1 0.1 0.1 0.1 
   Trinidad & Tobago 0.1 0.1 0.1 0.1 
   Ecuador 0.1 0.1 0.1 0.1 
   Argentina 0.1 0.1 0.1 0.0 
     
 Europe 10.2 9.5 8.1 8.3 
  EU(28) 9.0 8.6 7.0 7.4 
   United Kingdom 4.2 4.1 3.0 2.9 
   Italy 0.4 0.4 0.4 0.8 
   Netherlands 1.1 1.0 0.8 0.7 
   Belgium 0.5 0.5 0.5 0.6 
   France 0.7 0.7 0.7 0.6 
  EFTA 0.9 0.7 0.8 0.7 
   Norway 0.6 0.5 0.4 0.4 
   Switzerland 0.3 0.2 0.4 0.3 
  Other Europe 0.3 0.2 0.2 0.2 
   Turkey 0.3 0.2 0.2 0.2 
     
 Commonwealth of Inde pendent States (CIS)a 0.4 0.5 0.4 0.3 
   Russian Federation 0.3 0.4 0.3 0.2 
     
 Africa 0.8 0.8 0.8 0.9 
   Botswana 0.0 0.0 0.1 0.1 
   Nigeria 0.1 0.1 0.1 0.1 
   Egypt 0.2 0.1 0.1 0.1 
     
 Middle East 0.8 1.0 0.8 0.9 
   United Arab Emirates 0.3 0.3 0.3 0.3 
   Saudi Arabia 0.2 0.3 0.2 0.2 
     
 Asia 10.9 10.6 11.1 10.1 
  China 3.8 4.3 4.3 3.7 
  Japan 2.4 2.3 2.3 2.0 
  Six East Asian Traders 2.7 2.2 2.6 2.5 
   Hong Kong, China 0.7 0.5 1.0 0.9 
   Korea, Republic of 1.1 0.8 0.7 0.8 
   Chinese Taipei 0.4 0.3 0.3 0.3 
   Singapore 0.2 0.2 0.2 0.2 
   Malaysia 0.2 0.2 0.2 0.2 
   Thailand 0.2 0.2 0.2 0.1 WT/TPR/S/314 • Canada 
 
- 164 - 
 
  Description 2011 2012 2013 2014
  Other Asia 2.1 1.9 1.9 1.9 
   India 0.6 0.5 0.6 0.6 
   Indonesia 0.4 0.4 0.4 0.4 
   Australia 0.4 0.4 0.4 0.3 
     
 Other 0.0 0.0 0.0 0.1 
a Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan.  
Source: WTO Secretariat estimates, ba sedd on data from Statistics Canada. WT/TPR/S/314 • Canada 
 
- 165 - 
 
  Table A1. 5 Merchandise imports by trading partner, 2011-14  
(Can$ million and %) 
Description 2011 2012 2013 2014
Total imports 446,666 462,072 475,630 511,409 
 (% of imports) 
 America 59.2 59.8 61.2 63.3 
  United States 49.6 50.6 52.1 54.3 
  Other America 9.6 9.1 9.1 9.0 
   Mexico 5.5 5.5 5.6 5.6 
   Brazil 0.9 0.9 0.8 0.7 
   Peru 1.0 0.8 0.6 0.6 
   Argentina 0.5 0.5 0.4 0.4 
   Chile 0.4 0.4 0.4 0.3 
   Dominican Republic 0.0 0.1 0.3 0.3 
   Colombia 0.2 0.1 0.1 0.2 
     
 Europe 13.6 12.9 13.1 12.8 
  EU(28) 11.7 10.9 11.2 11.3 
   Germany 2.9 3.1 3.2 3.1 
   United Kingdom 2.3 1.8 1.8 1.8 
   Italy 1.1 1.1 1.2 1.3 
   France 1.2 1.1 1.1 1.2 
  EFTA 1.7 1.6 1.6 1.2 
   Switzerland 0.7 0.8 0.8 0.8 
   Norway 1.0 0.8 0.8 0.4 
  Other Europe 0.3 0.3 0.3 0.3 
   Turkey 0.3 0.3 0.3 0.3 
     
 Commonwealth of Inde pendent States (CIS)a 1.1 1.3 0.9 0.4 
   Russian Federation 0.3 0.2 0.2 0.1 
   Kazakhstan 0.6 0.7 0.5 0.1 
     
 Africa 3.2 2.9 2.0 1.2 
   Algeria 1.2 1.3 0.7 0.3 
   Angola 0.5 0.4 0.3 0.2 
     
 Middle East 1.7 1.8 1.6 1.2 
   Saudi Arabia 0.6 0.6 0.6 0.5 
   Iraq 0.6 0.9 0.7 0.4 
     
 Asia 20.2 20.7 20.4 20.4 
  China 10.8 11.0 11.1 11.5 
  Japan 2.9 3.3 2.9 2.6 
  Six East Asian Traders 4.1 3.9 3.8 3.7 
   Korea, Republic of 1.5 1.5 1.5 1.5 
   Chinese Taipei 1.1 1.0 1.0 0.9 
   Thailand 0.6 0.6 0.6 0.6 
   Malaysia 0.5 0.5 0.5 0.5 
   Singapore 0.3 0.3 0.3 0.2 
   Hong Kong, China 0.1 0.1 0.1 0.1 
     
  Other Asia 2.4 2.6 2.6 2.6 
   India 0.6 0.6 0.6 0.6 
   Viet Nam 0.3 0.4 0.5 0.6 WT/TPR/S/314 • Canada 
 
- 166 - 
 
  Description 2011 2012 2013 2014
   Indonesia 0.3 0.3 0.3 0.3 
   Australia 0.4 0.5 0.4 0.3 
     
 Other 0.9 0.6 0.8 0.7 
a Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Georgia, 
Kazakhstan, Kyrgyzstan, Moldova, Russian Federa tion, Tajikistan, Turkme nistan, Ukraine, and 
Uzbekistan. 
Source: WTO Secretariat estimates, based on data from Statistics Canada. WT/TPR/S/314 • Canada 
 
- 167 - 
 
  Table A2. 1 Canada's Involvement in Dispute Settlement Cases, 
1 January 2011-1 January 2015 
Subject Respondent/ 
complainant/ 
appellant Request for 
consultation 
received/ 
compliance 
panel 
established Status (as at 
30 October 
2014) WTO 
document 
series 
Requests for consultations 
China – Anti-dumping 
Measures on imports of 
cellulose pulp from Canada China/Canada 15-Oct-14 Consultations WT/DS483 
Panels  
Canada as a respondant: 
Canada – Measures Relating 
to the Feed-in Tariff Program Canada/EU 11-Aug-11 Implementation, 
under bilateral surveillance WT/DS426 
Canada – Anti-dumping 
Measures on Imports of 
Certain Carbon Steel 
Welded Pipe from the 
Separate Customs Territory 
of Taiwan, Penghu, Kinmen 
and Matsu Canada/Chinese 
Taipei 25-Jun-14 Consultations WT/DS482 
Canada as a third party:     
China – Rare Earths China/US-EU-
Japan 13-Mar-12 Implementation WT/DS431, 
432, and 433 
Australia – Plain Packaging Australia 13-Mar-12, 4-
Apr-12, 18-Jul-12, 3-May-13, 20-Sept-13 Panel 
established, interim report pending WT/DS434, 
435, 441, 458 and 467 
US – Countervailing 
Measures on Certain Hot-
Rolled Carbon Steel Flat 
Products from India US/India 12-Apr-12 Appeal filed WT/DS436 
US – Countervailing Duty Measures on Certain Products from China US/China 25-May-12 Appeal filed WT/DS437 
Argentina – Import 
Measures Argentina/EU-
US-Japan 25-May-12, 
21-Aug-12 Appeal filed WT/DS438, 
444, and 445 
US — Countervailing and 
Anti-Dumping Measures 
(China) US/China 17-Sep-12 Implementation WT/DS449 
India – Certain Measures 
Relating to Solar Cells and 
Solar Modules India/US 6-Feb-13 Panel 
established, 
interim report 
pending WT/DS456 
Brazil – Certain Measures 
Concerning Taxation and Charges Brazil/EU 19-Dec-13 Panel request 
pending WT/DS472 
European Union – Cost 
Adjustment Methodologies 
and Certain Anti-dumping 
Measures on Imports from 
Russia EU/Russia 23-Dec-13 Panel 
established, but 
not yet 
composed WT/DS474 
Indonesia - Importation of 
Horticultural Products, Animals and Animal Products Indonesia/United 
States  10-Jan-13 Panel 
established, but not yet composed WT/DS455 
United States - Certain 
Methodologies and their 
Application to Anti-Dumping 
Proceedings involving China United States/ 
China  3-Dec-13 Panel 
established, 
interim report 
pending WT/DS471 WT/TPR/S/314 • Canada 
 
- 168 - 
 
  Subject Respondent/ 
complainant/ 
appellant Request for 
consultation 
received/ 
compliance 
panel 
established Status (as at 
30 October 
2014) WTO 
document 
series 
United States - Anti-
Dumping and Countervailing Measures on Large Residential Washers from Korea United States/ 
Korea 29-Aug-13 Panel 
established, interim report pending WT/DS464 
Compliance Panel under Article 21.5 
United States – Certain 
Country of Origin Labelling (COOL) Requirements US/Canada 25-Sep-13 Reports 
circulated, DSB adoption pending WT/DS384 
Source: WTO Secretariat and information provided by Canadian authorities. WT/TPR/S/314 • Canada 
 
- 169 - 
 
  Table A2. 2 Selected Notifications to the WTO, 1 January 2011-1 January 2015  
WTO 
Agreement Description Document symbol  Date 
Agreement on Agriculture 
Articles 10 
and 18.2 
(ES:1, ES:2, 
and ES:3) Export subsidies comm itments: budgetary 
outlays and quantity reduction 
commitments; and notification of total 
exports G/AG/N/CAN/101 
G/AG/N/CAN/92 
 26/09/2014 
16/07/2012 
Article 16.2 
NF:1 (1)-(4) Net-food Importing Developing Country 
(NFIDC) Decision: food and other assistance; and other specific actions G/AG/N/CAN/100 
G/AG/N/CAN/93 
G/AG/N/CAN/88  22/09/2014 
17/10/2012 
03/11/2011 
Article 18.2 
(DS:1) Domestic support  G/AG/N/CAN/98 
G/AG/N/CAN/96 
G/AG/N/CAN/90 
G/AG/N/CAN/86 14/04/2014 
13/03/2013 
30/04/2012 
14/10/2011 
Article 18.2 
(MA:1) Administration of tariff and other quota 
commitments G/AG/N/CAN/87/Rev.1 
G/AG/N/CAN/87 24/02/2012 
03/11/2011 
Article 18.2 
(MA:2) Tariff quotas G/AG/N/CAN/103 
G/AG/N/CAN/95 
G/AG/N/CAN/89 
G/AG/N/CAN/85 
G/AG/N/CAN/83 18/11/2014 
11/01/2013 
24/02/2012 
07/10/2011 
13/01/2011 
Article 18.3 
(DS:2) New or modified exempt domestic support 
measures G/AG/N/CAN/99 
G/AG/N/CAN/97 
G/AG/N/CAN/91 14/04/2014 
13/03/2013 
30/04/2012 
Articles 5.7 
and 18.2 
(MA:5) Special safeguard provisions G/AG/N/CAN/102 
G/AG/N/CAN/94 
G/AG/N/CAN/84 11/11/2014 
11/01/2013 
05/10/2011 
General Agreement on Trade in Services  
Article III:3 Notification pursuant to Article III:3 of GATS S/C/N/679 26/02/2013 
Article III:4 or 
IV:2 Contact and enquiry points S/ENQ/78/Rev.14 25/10/2013 
Article 
V:7(a)(3) Economic integration agreements: 
Canada-Korea, Canada-Chile, 
Canada-Colombia, Canada-Panama S/C/N/789 
S/C/N/65/Add.1 
S/C/N/691 
S/C/N/602 20/01/2015 
14/01/2014 
12/04/2013 
11/10/2011 
Agreement on the Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement)  
Article 16.4 – 
ad hoc Anti-dumping actions (preliminary and final) G/ADP/N/263 
G/ADP/N/261 
G/ADP/N/260 
G/ADP/N/258 
G/ADP/N/254 
G/ADP/N/251 
G/ADP/N/248 
G/ADP/N/247 
G/ADP/N/246 
G/ADP/N/243 
G/ADP/N/242 
G/ADP/N/241 
G/ADP/N/239 
G/ADP/N/238 
G/ADP/N/234 
G/ADP/N/232 
G/ADP/N/229 
G/ADP/N/227 
G/ADP/N/215 
G/ADP/N/211 
G/ADP/N/210 15/10/2014 
19/08/2014 
15/07/2014 
19/06/2014 
17/02/2014 
19/12/2013 
14/10/2013 
13/09/2013 
19/08/2013 
17/06/2013 
30/05/2013 
16/04/2013 
18/02/2013 
21/01/2013 
16/10/2012 
10/08/2012 
13/06/2012 
04/04/2012 
21/06/2011 
22/02/2011 
18/01/2011 WT/TPR/S/314 • Canada 
 
- 170 - 
 
  WTO 
Agreement Description Document symbol  Date 
Article 16.4 – 
semi annual Anti-dumping actions (taken within the 
preceding six months) G/ADP/N/259/CAN  
G/ADP/N/252/CAN  
G/ADP/N/244/CAN  G/ADP/N/237/CAN  
G/ADP/N/230/CAN  
G/ADP/N/223/CAN  G/ADP/N/216/CAN/Rev.1 G/ADP/N/216/CAN  
G/ADP/N/209/CAN  22/08/2014 
03/03/2014 
11/09/2013 21/02/2013 
06/08/2012 
22/03/2012 29/11/2011  
21/09/2011 
16/03/2011 
GATT 1994  
Article 
XXIV:7(a) of GATT 1994 and Article V:7(a) of GATS Free-trade areas: Canada-Korea, 
Canada-Chile, Canada-Jordan, Canada-Colombia, Canada-Panama WT/REG362/N/1 
WT/REG38/N/1/Add.2 WT/REG335/N/1 WT/REG334/N/1 WT/REG301/N/1 
 20/01/2015 
14/01/2014 
12/04/2013 12/04/2013 11/10/2011 
Article 
XVII:4(a)  
and 
Paragraph 1 of 
the 
Understanding 
on 
the 
Interpretation 
of Article XVII State trading activities 
 G/STR/N/15/CAN 
G/STR/N/14/CAN 
G/STR/N/13/CAN/Add.1 08/07/2014 
06/07/2012 
19/07/2012 
Committee on 
Trade and 
Development Generalized System of Preferences WT/COMTD/N/15/Add.3 17/11/2014 
Article 
XXVIII:5  Invocation of paragraph 5 of Article XXVIII G/MA/299 
G/MA/253 17/10/2014 
29/09/2011 
Agreement on Government Procurement  
Work 
Programme on 
Exclusions Notification pursuant to paragraph 2 of the 
Committee's Decision on a work programme 
on exclusions and rest rictions in parties' 
annexes GPA/WPS/EXCS/1  22/10/2014 
Agreement on Import Licensing  
Article 7.3 Replies to the questionnaire G/LIC/N/3/CAN/12 
G/LIC/N/3/CAN/11 
G/LIC/N/3/CAN/10 04/04/2014 
02/11/2012 
18/11/2011 
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1 Notification of QRs G/MA/QR/N/CAN/2 
G/MA/QR/N/CAN/1 24/10/2014 
03/12/2012 
Agreement on Rules of Origin  
Paragraph 4 of 
Annex II Preferential rules of origin G/RO/N/111 
G/RO/N/102 
G/RO/N/101 
G/RO/N/71 02/04/2014 
19/09/2013 
19/09/2013 
05/07/2011 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 
and GATT 
1994 Article 
XVI:1 Subsidies  G/SCM/N/71/CAN 
G/SCM/N/253/CAN 
G/SCM/N/220/CAN 28/10/2013 
19/07/2013 
14/07/2011 WT/TPR/S/314 • Canada 
 
- 171 - 
 
  WTO 
Agreement Description Document symbol  Date 
Article 25.11 – 
ad hoc Countervailing duty acti ons (preliminary and 
final) G/SCM/N/279 
G/SCM/N/277 
G/SCM/N/276 G/SCM/N/269 
G/SCM/N/266 
G/SCM/N/263 G/SCM/N/262 G/SCM/N/258 
G/SCM/N/257 
G/SCM/N/256 G/SCM/N/254 
G/SCM/N/252 
G/SCM/N/247 G/SCM/N/246 G/SCM/N/245 
G/SCM/N/241 
G/SCM/N/239 G/SCM/N/227 
G/SCM/N/222 
G/SCM/N/221 15/10/2014 
25/08/2014 
11/07/2014 14/02/2014 
09/12/2013 
12/09/2013 02/08/2013 12/06/2013 
16/05/2013 
10/04/2013 12/02/2013 
22/01/2013 
05/10/2012 17/09/2012 07/08/2012 
07/06/2012 
05/04/2012 17/06/2011 
16/02/2011 
13/01/2011 
Article 25.11 - 
semi Countervailing duty ac tions (taken within 
the preceding six months) G/SCM/N/274/CAN 
G/SCM/N/267/CAN 
G/SCM/N/259/CAN 
G/SCM/N/250/CAN 
G/SCM/N/242/CAN 
G/SCM/N/235/CAN 
G/SCM/N/228/CAN 
G/SCM/N/219/CAN 29/08/2014 
05/03/2014 
11/09/2013 
22/03/2013 
23/08/2012 
23/03/2012 
21/09/2011 
18/03/2011 
Agreement on Sanitary and Phytosanitary Measures  
Article 7 
Annex B Sanitary and phytosanitary regulations Many notifications 
received, please see: 
http://www.wto.org/englis
h/tratop_e/sps_e/work_a
nd_doc_e.htm  
Agreement on Technical Barriers to Trade  
Article 2.10 TBT Notification G/TBT/N/CAN/354 
G/TBT/N/CAN/355 22/12/2011 
22/12/2011 
Article 2.9 Technical regulations  Many notifications 
received, please see 
http://tbtims.wto.org/  
Articles 2.9 
and 5.6 Technical regulations and conformity 
assessment procedures Many notifications 
received, please see 
http://tbtims.wto.org/  
Article 5.6 TBT Notification  G/TBT/N/CAN/365/Rev.1 
G/TBT/N/CAN/365 G/TBT/N/CAN/111/Add.8 
G/TBT/N/CAN/71/Add.2 
G/TBT/N/CAN/300/Add.1 24/08/2012 
 18/06/2012 
03/10/2012 
 14/02/2012 
 
18/04/2011  
Article 5.7 TBT Notification G/TBT/N/CAN/356 13/01/2012 
Article 
unspecified  Technical regulations  G/TBT/N/CAN/376 
 13/11/2012 
  
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Article 63.2 Laws / regulations; amendment of a law / 
regulation IP/N/1/CAN/C/3 
IP/N/1/CAN/3 
 11/01/2013 
19/12/2012 
 WT/TPR/S/314 • Canada 
 
- 172 - 
 
  WTO 
Agreement Description Document symbol  Date 
Article 67 Member's Contact Points for technical 
cooperation IP/N/7/CAN/1 07/11/2012 
Article 69 Member's Contact Points IP/N/3/CAN/1 07/11/2012 
Source: WTO Secretariat. WT/TPR/S/314 • Canada 
 
- 173 - 
 
  Table A2. 3 List of beneficiaries of Cana da's unilateral preference programmes as 
provided by Canada 
Country GPT LDCT CCCT 
Afghanistan √ √  
Algeria *   
American Samoa *   
Angola √ √  
Anguilla √  √ 
Antigua and Barbuda *  √ 
Antilles, Netherlands *   
Argentina *   
Armenia √   
Ascension Island √   
Azerbaijan *   
Bahamas *  √ 
Bahrain *   
Bangladesh √ √  
Barbados *  √ 
Belize √  √ 
Benin √ √  
Bermuda *  √ 
Bhutan √ √  
Bolivia √   
Bosnia and 
Herzegovina *   
Botswana *   
Brazil *   
British Indian Ocean 
Territory √   
Brunei Darussalam *   
Burkina Faso √ √  
Burundi  √ √  
Cambodia √ √  
Cameroon √   
Cape Verde  √ √  
Cayman Islands *  √ 
Central African 
Republic  √ √  
Chad √ √  
Chile *   
China *   
Christmas Island √   
Cocos (Keeling) 
Islands √   
Colombia *   
Comoros √ √  
Congo √   
Cook Islands √   
Costa Rica *   
Côte d'Ivoire √   
Croatia *   
Cuba *    
Democratic Republic of 
Congo √ √  
Djibouti √ √  
Dominica *  √ 
Dominican Republic *   
Ecuador *   
Egypt √   
El Salvador √   
Equatorial Guinea * *  
Eritrea √ √  
Ethiopia √ √  
Falkland Islands √   
Fiji √   
French Polynesia *   
Gabon *   
Gambia √ √  
Georgia √   WT/TPR/S/314 • Canada 
 
- 174 - 
 
  Country GPT LDCT CCCT 
Ghana √   
Gibraltar *   
Grenada *  √ 
Guam *   
Guatemala √   
Guinea √ √  
Guinea-Bissau √ √  
Guyana √  √ 
Haiti √ √  
Honduras √   
Hong Kong, China *   
India *   
Indonesia *   
Iran *   
Iraq √   
Israel *   
Jamaica *  √ 
Jordan *   
Kazakhstan *   
Kenya √   
Kiribati √ √  
Kuwait *   
Kyrgystan √   
Laos √ √  
Lebanon *   
Lesotho √ √  
Liberia √ √  
Macao China *   
Macedonia *   
Madagascar √ √  
Malawi √ √  
Malaysia *   
Maldives * *  
Mali √ √  
Mariana Islands *   
Marshall Islands √   
Mauritania √ √  
Mauritius *   
Mexico *   
Micronesia √   
Moldova √   
Mongolia √   
Montserrat √  √ 
Morocco √   
Mozambique √ √  
Namibia *   
Nauru √   
Nepal √ √  
New Caledonia and 
Dependencies *   
Nicaragua √   
Niger √ √  
Nigeria √   
Niue √   
Norfolk Island √   
North Africa (Spanish) √   
Oman *   
Pakistan √   
Palau *   
Panama *   
Papua New Guinea √   
Paraguay √   
Peru *   
Philippines √   
Pitcairn √   
Qatar *   
Russian Federation *   
Rwanda √ √  WT/TPR/S/314 • Canada 
 
- 175 - 
 
  Country GPT LDCT CCCT 
Saint Helena and 
Dependencies √   
Saint Kitts and Nevis *  √ 
Saint Lucia *  √ 
Saint Vincent and the 
Grenadines *  √ 
Samoa √ √  
Sao Tome and Principe √ √  
Senegal √ √  
Seychelles *   
Sierra Leone √ √  
Singapore *   
Solomon Islands √ √  
Somalia √ √  
South Africa *   
Republic of Korea *   
South Sudan √ √  
Southern and Antarctic 
Territories (French) √   
Sri Lanka √   
Sudan √ √  
Suriname *   
Swaziland √   
Syria √   
Tajikistan √   
Tanzania √ √  
Thailand *   
Timor-Leste √ √  
Togo √ √  
Tokelau Islands √   
Tonga √   
Trinidad and Tobago *  √ 
Tristan Da Cunha √   
Tunisia *   
Turkey *   
Turkmenistan √   
Turks and Caicos 
Islands *  √ 
Tuvalu √ √  
Uganda √ √  
Ukraine √   
United Arab Emirates *   
Uruguay *   
Uzbekistan √   
Vanuatu √ √  
Venezuela *   
Viet Nam √   
Virgin Islands (British) √  √ 
Virgin Islands (U.S.A.) *   
Yemen √ √  
Zambia √ √  
Zimbabwe √   
* Eligibility removed as of 1 January 2015. 
Source: Canada Customs Tariff 2014 and information provided by Canadian authorities. WT/TPR/S/314 • Canada 
 
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  Table A3. 1 Canadian participation in  conformity assessment agreements, 2014  
Signatories Instrument type Coverage 
Standards Council of Canada (SCC) 
and American National Standards Institute and the Registrar Accreditation Board (ANSI-RAB, United States) Memorandum of 
Understanding (MoU) – 1991 Cooperation in the harmonization of 
standardization and conformity assessment activities. 
SCC and American So ciety for Quality 
National Accreditation Board (ANAB, 
United States), Joint Accreditation 
System of Australia and New Zealand 
(JAS-ANZ), the Japan Accreditation 
Board for Conformity Assessment, 
and Entidad Mexicana de Acreditación 
(Mexico) Mutual Cooperative 
Accreditation Arrangement 
(MCAA) - 2005 Recognition of quality and 
environmental management systems 
assessment and accreditation 
results. 
SCC and Standardization 
Administration of China (SAC) Cooperation Agreement - 
2005 Exchange of information on 
standards development and 
conformity assessment  
SCC and other Inter-American 
Accreditation Co-operation (IAAC) 
bodies Mutual Recognition 
Agreement (MRA) - 2002 Mutual recognition of laboratory, 
quality management system, and 
certification procedures. 
SCC and other International 
Accreditation Forum (IAF) bodies MRA – 1998 Recognition of quality management 
system, environmental management system, and product certification body accreditations. 
SCC and other International 
Laboratory Accreditation Cooperation 
(ILAC) bodies MRA – 2000 Recognition of laboratory 
accreditations.  
SCC and other Asia-Pacific Laboratory Accreditation Cooperation (APLAC) bodies MRA – 2000 Recognition of laboratory 
accreditations. 
Canada, Mexico, and the United 
States (all three as part of the North 
American Calibration Committee – 
NACC) MoU – 2001 Promotion of the harmonization of 
laboratory accreditation systems and 
development of mutual confidence in 
measurements of accredited 
laboratories. 
National Research Council (Canada), Centro Nacional de Metrología (Mexico), and National Institute of Standards and Technology (all three 
as part of the North American 
Metrology Co-operation - NORAMET) MRA – 1999 Technical cooperation on the 
methodologies and application of metrological activities. 
SCC and Occupational Health and 
Safety Administration (OSHA, United 
States) Cooperation Arrangement - 
1997 Information exchange, participation 
in assessments, and policy and 
procedure harmonization. 
SCC and other Pacific Accreditation Co-operation (PAC) bodies MRA – 1998 Recognition of quality management 
system, environmental management system, and product certification body accreditations. 
Canada and other APEC members MRA Product certification procedures and 
results for terminal equipment, radio 
equipment, EMC and electrical 
safety. 
Canada and EEA EFTA members (Iceland, Liechtenstein, and Norway) MRA
a Telecoms, Electromagnetic 
compatibility (EMC), recreational craft, medical devices (not implemented), electrical safety (not implemented), GMP-Pharma. 
Canada and the European Community MRAa Telecoms, EMC, recreational craft, 
medical devices (not implemented), 
electrical safety (not implemented), 
GMP-Pharma. WT/TPR/S/314 • Canada 
 
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  Signatories Instrument type Coverage 
Canada and Switzerland MRAa Telecoms, EMC, medical devices (not 
implemented), electrical safety (not implemented), GMP-Pharma. 
Canada and other members of the 
Inter-American Telecommunication 
Commission (CITEL) MRA Product certification procedures and 
results for terminal equipment, radio 
equipment, EMC and electrical 
safety. 
Canada and Australia MRA Cert ification and acceptance of 
certificates of good manufacturing practice of manufacturers of medicinal products. 
a Legally binding. 
Source: WTO Secretariat, based on informatio n provided by the Canadian authorities. 
 WT/TPR/S/314 • Canada 
 
- 178 - 
 
  Table A4. 1 Main federal agricultural programmes  
Progamme/Service Description Expenditures  
Advance Payments 
Program Provides farmers with a cash advance repayable 
loan of up to 50% of the value of their agricultural products (subject to a cap of Can$400,000 per producer). 2011: Can$1,894.6 million 
2012: Can$1,882.2 million 2013: Can$2,409.1 million (based on production years) 
AgriCompetitiveness 
(new under GF2) A combination of government initiatives and 
contribution funding for in dustry-led projects with 
a view to helping the sector adapt and remain 
competitive.  
Agricultural Greenhouse 
Gases Program Provides funding for projects that address a need 
for either more research or equip farmers with technologies to mitigate their GHG emissions.  
Agri-Food Trade Service Provides exporters, buyers and investors with 
centralized access to mark et information, trade 
regulations and export  support activities.  
AgriInnovation Program  
(new under GF2) Provides funding and/or resources for projects 
based on applications from industry-led R&D, as well as AAFC's R&D and knowledge transfer activities.  
AgriInsurance 
(BRM, GF: 2011 and 
2012, GF2: 2013) Provides producers with cost-shared insurance for 
production losses caused by natural hazards. 2011: Can$895.6 million 
2012: Can$1,053.4 million 
2013: Can$1,183.6 million 
AgriInvest 
(BRM, GF: 2011 and 
2012, GF2: 2013) Provides a matching contribution to help producers 
manage small income declines or make investments to mitigate on-farm risks. 2011: Can$345.7 million 
2012: Can$381.0 million 2013: Can$211.0 million 
AgriMarketing Program 
(new under GF2) Provides project-based funding for promotional 
and market development activities, and for the 
development of a national assurance systems or 
standards.  
AgriProcessing Initiative 
 Provides repayable contribu tions to existing agri-
processing companies for projects involving the 
adoption of innovative and new-to-company manufacturing technolo gies and processes.  
AgriRecovery 
(BRM, GF: 2011 and 
2012, GF2: 2013) It is a disaster relief framework guiding federal, 
provincial and territorial governments' response to 
natural disasters affecting producers. Numbers 
provided are based on fiscal year. 2011: Can$389.9 million 
2012: Can$19.7 million 
2013: Can$1.2 million 
(based on fiscal years) 
AgriRisk Initiatives 
(BRM, new under GF2) Supports research and development R&D activities 
(federal only element) as well as the 
implementation and admini stration of new risk 
management tools. (Federal, provincial, territorial cost-shared element). 2013: No expenditure 
AgriStability 
(BRM, GF: 2011 and 
2012, GF2: 2013) Federal, provincial and territorial cost-shared 
programme that provides support to farmers who 
experience a large farming margin loss. Support is 
triggered when income decline exceeds 30% of a 
given reference value.  2011: Can$619.0 million 
2012: Can$510.1 million 
2013: Can$202.1 million* 
(based on programme 
year. 2013 applications 
are still being processed) 
Canada Brand 
(GF2) Provides businesses with access to a suite of tools 
and market research reports.  
Canadian Agricultural 
Adaptation Program 
(CAAP) Provides project-based funding to help seize 
opportunities, respond to new or emerging issues, 
or pathfind and/or pilot solutions.  WT/TPR/S/314 • Canada 
 
- 179 - 
 
  Progamme/Service Description Expenditures  
Canadian Agricultural 
Loans Act Program (CALA) Federal-only programme that provides loan 
guarantees to help farmers establish or develop farms, and agricultural cooperatives, process, distribute or mark et farm products. 2011: Can$131.6 million 
2012: Can$106.9 million 2013: Can$113.1 million (Based on fiscal year. Numbers represents the values of loans issued by financial institutions under the guarantee) 
Canadian Animal Genetic 
Resources (CAGR) Aims at preserving the genetic diversity of the 
livestock and poultry bree ds, and developing new 
techniques for germplasm conservation.  
Career Focus Program Covers 50% of eligible costs for projects that hire 
recent graduates in agricu lture, agri-food science 
and veterinary medicine.  
Churchill Port Utilisation 
Program Provides financial incentives to legal entities that 
arrange for/transact the shipment of eligible grain 
through the Port of Churchi ll (the incentive rate for 
2014 was Can$9.20 per tonne).  
Community Pasture 
Program Promotes land conservation, protecting it from 
deterioration due to drought while utilizing it primarily for the grazing and breeding of livestock.  
Drought Watch Provides timely information to the agricultural 
sector in order to identify  the impacts of climatic 
variability on water supply and agriculture.  
Farm Debt Mediation 
Service Provides financial counselling and mediation 
services to farmers in financial difficulty.  
Food Research and 
Development Centre's 
Industrial Program Provides direct access to sophisticated equipment 
and a versatile R&D environment to agri-food 
companies in order to assist with small-scale food 
processing and testing needs, and to foster 
innovation.  
Geospatial Products Provides online access to agriculture-related maps, 
geospatial data and tools.  
Livestock Auction 
Traceability Initiative 
(LATI) Provides project-based fund ing to livestock facility 
owners/managers for the alteration of animal 
handling structures, to enhance traceability 
capabilities at high-risk, high through-put co-
mingling sites.  
Minor Use Pesticides 
Program Works with various stakeholders to establish 
producer-selected pest problems on minor crops, 
match them with pesticides and prepare regulatory submissions for new mino r uses of pesticides.  
Office of Intellectual 
Property and 
Commercialization (OIPC) Supports the development and transfer of the 
results of research efforts by AAFC's research 
branch.  
Pesticide Risk Reduction 
Program Develops pesticide risk reduction strategies and 
associated tools, practices and technologies.  
Price Pooling Program Provides marketing agencies and producers with a 
price guarantee for eligible  products, to assist and 
encourage cooperative marketing.  
Source: Information provided by  the Canadian authorities. 
 WT/TPR/S/314 • Canada 
 
- 180 - 
 
  Table A4. 2 Information sharing agreements co ncluded by OSFI with foreign supervisors 
(as of January 2015) 
Partner Regulatory Authority Sector(s) 
Australia Australian Prud ential Regulation Author ity Banking and Insurance 
Bahamas Central Bank of The Bahamas Banking 
Barbados Central Bank of Barbados Banking 
Belgium Banking, Finance and Insurance Commission Banking and Insurance 
Belgium/Luxembourg Banking, Finance and Insurance Commission/ 
Commission de Surveillance du Secteur Financier RBC/Dexia (joint venture 
specific) 
Bermuda Bermuda Monetary Authority Banking and Insurance 
British Virgin Islands British Virgin Islands Financial Services Commission Banking 
Cayman Islands Cayman Islands Monetary Authority Banking and Insurance 
Chile Superintendencia de  Bancos e Instituciones 
Financieras Chile Banking 
China China Banking Regulatory Commission Banking 
Costa Rica Superintendencia Genera l de Entidades Financieras Banking 
Dominican Republic Superintendent of Banks of the Dominican Republic Banking 
Dubai Dubai Financial Services Authority Banking and Insurance 
El Salvador Superintendencia del Sistema Financiero Banking 
France Commission bancaire Banking 
Germany Federal Financial Supervisory Authority Banking and Insurance 
Hong Kong, China Hong Kong Insurance Authority 
Hong Kong Monetary Authority Insurance 
Banking 
Ireland Central Bank of Ireland Banking and Insurance 
Jersey Jersey Financial Services Commission Banking and Insurance 
Mexico National Banking and Securities Commission Banking 
Netherlands De Nederlandsche Bank Banking and Insurance 
Panama Superintendency of Banks of the Republic of Panama Banking 
Peru Superintendence of Ba nks, Insurance and Private 
Management of Pension Funds Banking and Insurance 
Chinese Taipei Financial Supervisory Commission Banking and Insurance 
Thailand Office of Insura nce Commission Insurance 
Trinidad and Tobago Central Bank of Trinidad and Tobago Banking and Insurance 
Turks and Caicos Turks and Caicos Islands Financial Services 
Commission Banking and Insurance 
United Kingdom Bank of England Prudential Regulation Authority Banking and Insurance WT/TPR/S/314 • Canada 
 
- 181 - 
 
  Partner Regulatory Authority Sector(s) 
United States Federal institutions:  
 • Office of Thrift Supervision  Banking and Insurance 
 • Federal Reserve/Office of the Comptroller of the 
Currency/Federal Deposit Insurance Corporation Banking 
 State-level institutions:  
 • Connecticut Department of Banking Banking 
 • Illinois Department of Financial and Professional 
Regulation Banking and Insurance 
 • Massachusetts Division of Insurance Insurance 
 • Office of Financial and Insurance Regulation 
(Michigan) Banking and Insurance 
 • State of New York Banking Department Banking 
 • North Carolina Office of the Commissioner of 
Banks  Banking 
Source: Information provided by  the Canadian authorities. 
__________