S/C/N/792
9 March 2015
(15-1329)  Page: 1/7
Council for Trade in Services  Original: English
 
NOTIFICATION FROM CANADA WITH RE SPECT TO THE MINISTERIAL DECISION 
CONCERNING PREFERENTIAL TREATMENT TO SERVICES AND  
SERVICE SUPPLIERS OF LE AST-DEVELOPED COUNTRIES 
The following notification from the delegation of Canada, dated 5 March 2015, is being circulated 
to the Members of the Council for Trade in Services.  
_______________ 
 
Recognizing the needs, interests and challenges  of least-developed countries (LDCs), Canada 
supports the implementation of the decision by  Ministers at the WTO’s Eighth Ministerial 
Conference (WT/L/847) on the waiver from GATS Article II:1 to provide preferential treatment for 
services and services suppliers of LDCs, and the decision by Ministers at the WTO’s Ninth Ministerial Conference (WT/L/918) to operationalize this waiver. Canada supports these efforts to 
further develop and integrate LDCs into the global trading system and encourages other WTO 
Members to do likewise. 
Canada also welcomes The Collective Request Pursuant to the Bali Decision on the 
Operationalization of the LDC Services Waiver Co ncerning Preferential Treatment to Services and 
Service Suppliers of Least Developed Countries (S/C/W/356) (the “LDC Collective Request”), which 
identifies commercially meaningful interests relating to LDC services and service suppliers.  
In accordance with Ministers’ decisions, this notification sets out Canada’s treatment for LDC 
services and service suppliers in areas identified in the LDC Collective Request, subject to future 
legislative or regulatory change. 
1  TEMPORARY MOVEMENT OF NATURAL PERSONS (MODE 4) 
1.1.  Canada recognizes the importance of the temporary movement of natural persons (mode 4) 
in developing trade in services capacities of LDCs, in particular items A.2-5, A.11, A.26, A.28 and 
A.32-33 of the LDC Collective Request. Canada provides temporary entry for certain categories of 
business persons that is free from economic needs test requirements and quantitative restrictions.  
This facilitates the movement of LDC business persons to Canada by supporting a streamlined and expedited process, as well as lower associated fees which benefit LDC service suppliers.   
1.2.  In addition, business persons qualifying in the business visitor category are eligible for 
temporary entry to Canada for up to 6 months without the need for a work permit.  Qualifying 
business visitors may be engaged in a broad spectrum of activities, beyond those committed in Canada’s GATS commitments (90 days), including key areas of interest to LDCs, such as after-sale 
and after-lease services, and installation activities.   
1.3.  Regarding the temporary entry of intra- company transferees, international companies may 
temporarily transfer qualified employees to Canada from LDCs.  Eligible employees must be 
transferred to a position in an executive, senior management, or specialized knowledge capacity.  
While qualified intra-company transferees requir e a work permit, they are exempt from the 
requirement for an economic needs test.  
1.4.  Canada also facilitates the temporary entr y of professionals, including both independent 
professionals and contract service suppliers, in va rious sectors and occupations, such as engineers, 
agrologists, architects, forestry professionals, geomatics professionals and land surveyors as well 
as foreign legal consultants, urban planners and senior computer specialists.  Qualified S/C/N/792 
 
- 2 - 
 
  professionals, who meet the applicable education and licensing requirements, must obtain a work 
permit; however, they are exempt from the requirement for an economic needs test.  Other professionals may also be eligible for temporary entry into Canada, pursuant to Canada’s Temporary Foreign Worker Program requirements, which include an economic needs test.    
1.5.  In further recognition of the importance of trade in professional services and the particular 
role of the recognition of licenses and qualifications, Canada encourages its relevant bodies to 
consider professional services where Canada and one or more LDCs are mutually interested in 
establishing a dialogue on issues related to recognition of professional qualifications, licensing or 
registration. 
1.6.  Acknowledging the importance of processing times and fees for work authorizations to LDCs, 
Canada makes decisions within a reasonable period of time after receipt of a completed application 
and informs the applicant of the decision including, if approved, the applicable conditions such as 
the period of stay, or, if denied, the reasons for th e refusal. In addition, Canada limits any fees for 
the processing of applications for work authorizations to ensure that they do not unduly impair 
trade. 
2  FACILITATION OF STUDENTS 2.1.  With regard to items A.27 and A.29 of th e LDC Collective Request, Canada recognizes the 
importance of student work permits and scholarships, not only to trade in services, but also in 
facilitating overall capacity building within LDCs. Canada has a number of student work permit 
programs allowing international students, including from LDCs, as well as their spouses/common law partners to work in Canada possible while completing their studies.  These programs cover 
employment both on- and off-campus. For example, LDC students may work on campus at the 
institution where they study without a work permit if they are a full-time student in a recognized Canadian institution and have a valid student permit.    
2.2.  Additionally, international study permit holders in Canada may qualify to work off campus 
without a work permit for up to 20 hours per we ek during regular academic sessions and full-time 
during scheduled breaks, such as the winter and summer holidays or spring break.  To qualify the 
international student must have a valid study permit, be a full-time student, be enrolled at a 
designated learning institution at the post-secondary level or, in Quebec, a vocational program at the secondary level, and be studying in an academic, vocational or professional training program that leads to a degree, diploma or certificate that is at least six months in duration. 
2.3.  Furthermore, Canada has a Post-Graduatio n Work Permit Program (PGWPP) which provides 
the opportunity for international students, including from LDCs, to work in Canada after they graduate.  The PGWPP allows students who have graduated from a participating Canadian post-
secondary institution to gain valuable Canadian work experience and establish business contacts in 
the Canadian market.   
2.4.  In addition, Canada acknowledges the importance of financial assistance for international 
students as well as researchers and faculty and has created many scholarships, programs and 
funding opportunities for them.   
2.5.  For students and postdoctoral researcher s, awards are available including for study and 
research in Canada; for faculty and researchers, awards are available to faculty from LDC 
countries to study/research in Canada.  Canada also has awards available to academic institutions 
from LDCs to facilitate collaboration within the academic community. 
2.6.  Some Canadian academic institutions also have scholarships or awards for international 
students, including from LDCs, intended to recogn ize high academic achievement, leadership or 
financial need. 
2.7.  Some of Canada’s provinces and territories also provide scholarships and programs benefiting 
students from LDCs.  For example, the Ontario Tri llium Scholarship provided by the Government of 
Ontario is available to students from LDCs wishing to study in universities in Ontario.   S/C/N/792 
 
- 3 - 
 
  3  MARKET ACCESS  
3.1.  Canada provides market access and national  treatment to LDC services and service suppliers 
in many of the sectors of interest identified und er item A.40 of the LDC Collective Request.  Annex 
A of this Notification lists sectors identified in the LDC Collective Request for which Canada 
provides full market access and national treatment under modes 1 and 3. These benefits are 
extensive and range from construction work to maritime agency services to translation and interpretation services.  Annex B of this Notification lists sectors identified in the LDC Collective 
Request for which Canada provides market acce ss and national treatment under modes 1 and 3 
with some restrictions.  These benefits are also extensive and cover sectors such as accounting, auditing and bookkeeping services, investigation and security services and veterinary services. 
4  CULTURAL SECTOR 
4.1.  With regard to item A.38 of the LDC Coll ective Request, Canada recognizes co-production 
treaties as important tools, contributing to the vitality of the audiovisual industry globally, as well 
as to facilitating economic and cultural exchanges, which offer opportunities to share best practices 
and learn from each other's expertise.  Canadian  producers have been coproducing internationally 
for more than four decades and for Canada, these treaties have been an important vehicle to strengthen international ties in the audiovisual sector.    
4.2.  Any LDC wishing to enter into negotiations with Canada for an audiovisual coproduction 
treaty may submit an official written request to the Minister of Canadian Heritage and Official Languages.    
4.3.  In addition to co-production treaties, there are other opportunities to participate in 
audiovisual production with Canada.  LDC producers can produce audiovisual projects with 
Canadian producers through co-ventures, which ar e co-productions done outside the conventions 
of a treaty
1.  Furthermore, LDC producers can also receive support for foreign location shootings in 
Canada through the Film or Video Production Serv ices Tax Credit (PSTC) which is a refundable 
corporate tax credit.   
4.4.  Moreover, training opportunities exist in film, television and new media through the various 
national institutes2.  Industry exchanges or networking opportunities with industry experts are also 
possible through national and provincial Ca nadian audiovisual industry stakeholders3. 
5  FINANCIAL SERVICES 5.1.  Canada has an open and competitive financial sector based on sound prudential rules.  With 
regard to items A.17-18 and A.20 of the LDC Collective Request, foreign banks, including from 
LDCs, can establish subsidiaries, full-service branches or lending branches. The framework for foreign bank branches allows LDC service suppliers a choice of juridical forms that provide for 
specific business powers and regulatory requirements. This provides LDC service suppliers 
flexibility with respect to how they provide financial services in Canada.  
5.2.  Canada provides LDCs with more extensive liberalization commitments relative to the GATS 
Annex on Financial Services as a voluntary signatory to the Understanding on Commitments in 
Financial Services. The Understanding provides a standardized list of liberalization commitments which includes the right to establish commercial presence to foreign financial service suppliers and a commitment to endeavour to eliminate monopoly rights in financial services or reduce their 
scope. 
                                               
1 Information on co-ventures for television production s is available on the Canadian Radio-television and 
Telecommunications Commission’s website at http://www.crtc.gc.ca/eng/archive/2010/2010-905.htm . For 
information on co-ventures for film production s, refer to Telefilm Canada’s Web site at 
http://www.telefilm.gc.ca/ . 
2 Such institutions include the National Screen Institute located in Winnipeg, L’Institut national de 
l’image et du son in Montreal, and th e Canadian Film Centre in Toronto. 
3 Such stakeholders include the Canadian Media Production Association (CMPA) - http://www.cmpa.ca/  ; 
the Association québécoise de la production médiatique (AQPM) - http://www.aqpm.ca/ ; the Ontario Media 
Development Corporation (OMDC) - http://www.omdc.on.ca/ ; and, Creative BC - http://www.bcfm.ca/ . S/C/N/792 
 
- 4 - 
 
  6  DOUBLE TAXATION & TAX REFUNDS 
6.1.  Canada recognizes items A.6, A.9 and A.13 of the LDC Collective Request and notes the 
following treatment for LDCs.   
6.2.  Canada’s double taxation relief regime for income tax is available to any corporate taxpayer 
resident in Canada, irrespective of the percenta ge of LDC ownership in the corporate taxpayer.  
Authorized LDC banks may also benefit from Canada’s  double taxation relief regime for income tax 
in respect of their Canadian banking activities. 
6.3.  Every payer (including a foreign payer) who makes a payment of fees, commissions, or other 
amounts to an LDC service supplier in respect of services provided in Canada must withhold and 
remit an amount to the Canadian tax authority.  However, this obligation can be waived if the LDC 
service supplier is resident in a country with which Canada has a tax treaty and the LDC service 
supplier does not have a fixed base or permanent establishment in Canada. 
6.4.  Expenses associated with conferences held in an LDC may be tax deductible under Canada’s 
domestic income tax rules, provided among others that they are reasonable and do not correspond 
to personal expenditures. There are no restrictions  on deductibility based on the location of the 
conference. 
7  TRANSPORT AND LOGISTICS RELATED SERVICES  
7.1.  With regard to items A.23 and A.25 of the LDC Collective Request, Canada notes the 
following treatment extended to LDCs.   
7.2.  Canada has a liberal vessel registration re gime that benefits corp orations from LDCs.  
Canada’s regime allows LDC corporations to register their vessels on the Canadian Registry of 
Vessels.   If the LDC corporation registers a ve ssel not already registered in another country, a 
local presence is required in order to ensure effective flag state control.  However, there are options as to how the vessel owner can fulfill the local presence requirement.  The owner of the 
ship or the person from an LDC who has exclusive possession of the vessel must be: a) a 
subsidiary of the foreign corporation that is incorporated under the domestic laws of Canada or a province or territory; b) an employee or director in Canada of any branch office of the foreign 
corporation that is carrying on business in Canada; or c) a ship management company 
incorporated under the laws of Canada or a provin ce or territory acting on behalf of the foreign 
company.  
7.3.  Canada’s domestic income tax rules exempt from tax any income of an LDC resident earned 
in Canada from international shipping or from the operation of an aircraft in international traffic 
(including the transporting of passengers or goods) on the basis of reciprocity.  The exemption includes income from logistical services when they are incidental to the operation of ships or 
aircraft in international traffic (e.g., accounting, marketing).  
7.4.  Canada’s Goods and Services Tax/Harmonized Sales Tax (GST/HST) generally does not apply 
to freight transportation services from LDCs that either begin or end outside Canada: i.e., to 
international movements of goods.  While the GST/ HST generally applies to freight transportation 
services that both begin and end in Canada, LDC businesses can usually recover any GST/HST levied on these services.   
8  INTELLECTUAL PROPERTY 
8.1.  Canada recognizes the importance of item  B.3 of the LDC Collective Request and notes the 
following treatment that benefits LDC services and service suppliers.   
8.2.  Canada’s fees for registration and maintenance of patents, geographical indications (GIs), 
trade-marks and industrial design are set to ensu re cost-recovery of the services being provided 
by the Canadian Intellectual Property Office.  In  addition, there a number of programs under which 
companies or individuals from LDCs many qualify for reduced fees.  For example, under the small 
entity fee program, patent filling and maintena nce fees are reduced by as much as 50% for S/C/N/792 
 
- 5 - 
 
  enterprises with less than 50 employees.  For trade-marks and GIs, if applications are made 
online, there is a reduction in fees of up to $50.4      
9  TEMPORARY ADMISSION OF EQUIPMENT 9.1.  Canada recognizes item A.39 of the LDC Co llective Request and broadly permits the duty-free 
temporary importation of a broad range of goods when used in certain commercial contexts.  The 
goods, including equipment from LDC service suppliers, may not be sold, leased or further processed in Canada, and security may be required.  Furthermore, as a signatory to the 
international Customs Convention on the A.T.A. Carnet for the Temporary Admission of Goods, 
Canada recognizes the ATA Carnet as security an d permits the duty-free temporary importation of 
specified goods for exhibitions and certain professi onal equipment into over 70 countries, including 
equipment necessary for entertainers, theatre companies and orchestras.
5 
_______________ 
 
 
                                               
4 For more information on the f ees and processes for applying fo r patents, GIs, trade-marks and 
industrial design, please visit http://www.cipo.ic.gc.ca.  
5 Additional information is contained in  the following explanatory memorandum:  
http://cbsa.gc.ca/publications/dm-md/d8/d8-1-1-eng.html  & http://cbsa.gc.ca/publications/dm-md/d8/d8-1-
7-eng.html . 
 S/C/N/792 
 
- 6 - 
 
  ANNEX A  
SECTORS WITH FULL MARKET ACCESS AND NATIONAL TREATMENT IN CANADA  
FOR MODES 1 AND 3  
1. Building cleaning services  
2. Building completion and finishing work servic es (including glazing work and window glass 
installation work, plastering and painting work, floor and wall tilling work, floor laying, wall covering and wall papering work, demolition , scaffolding, foundation work including pile 
drilling, water well drilling, and ornamental and interior fitting work)  
3. Commission agent services with the exception of alcoholic beverages 
4. Construction work for commercial buildings † 
5. Construction work for multi-dwelling buildings† 
6. Construction work for warehouses and industrial buildings † 
7. Convention services  
8. Data processing and tabulation services 
9. Electrical wiring and other fitting work 
10. Franchising services  †   
11. Guidance and counselling services not elsewhere classified related to children † 
12. Hairdressing and other beauty services † 
13. Interior design services  
14. Input preparation services  † 
15. Installation and assembly work 
16. Landscape services and landscape architectural services † 
17. Mailing lists compilation services  
18. Maintenance and repair of office machinery, computers, fixtures, etc. 
19. Maritime agency services † 
20. Market research services  
21. Packaging services 
22. Photographic services † 
23. Placement and supply services of personnel † 
24. Printing and packaging of materials services † 
25. Rental and Leasing Services without Operators  †  
26. The following services auxiliary to maritime  transport:  cargo handling, storage and 
warehousing, freight forwarding and container station depot services  † 
27. Specialty design services  
28. Sporting and other recreational services – except for gambling and betting † 
29. Technical testing and analysis services of motor vehicles 
30. 
Telephone answering services  
31. Time sharing services 
32. Translation and Interpretation Services † 
33. Washing, and cleaning and dyeing services † 
34. Wood and metal joinery and carpentry work  
 
† Sectors where treatment exceeds Canada’s specific commitments under the WTO General Agreement on Trade in Services. S/C/N/792 
 
- 7 - 
 
  ANNEX B 
SECTORS WITH MARKET ACCESS AND NATIONAL TREATMENT IN CANADA  
FOR MODES 1 AND 3 SUBJECT TO LIMITED RESTRICTIONS 
1. Accounting, auditing and bookkeeping services – except for residency requirements or 
commercial presence requirements for the practice of these professions in certain provinces 
and territories. † 
2. Architectural Services – except in certain provinces and territories † 
3. Bank branches of subsidiaries 
4. Construction and related engineering services – ex cept for construction of waterways, for road 
construction or for energy (power plants) construction in certain provinces and territories 
5. Engineering design services – except for R&D services  or for residency requirements for 
land/surface surveyors in certain provinces and territories † 
6. Engineering Services – except for R&D services or for residency requirements for land/surface 
surveyors in certain provinces and territories. † 
7. General Construction Work for Buildings – exce pt for construction of waterways, for road 
construction or for energy (power plants) construction in certain provinces and territories 
8. General Construction Work for Civil Engineering – except for construction of waterways, for 
road construction  or for energy (power plants) construction in certain provinces and territories 
9. Hotel and restaurant services – except for some mode 3 restrictions including on liquor 
licences in certain provinces and territories 
10. Integrated Engineering Services – except for R&D services or for residency requirements for 
land/surface surveyors in certain provinces and territories  † 
11. Investigation and security services – except residency requirements in certain provinces and 
territories † 
12. Maintenance and repair of vessels † 
13. Other engineering services during the construction and installation phase – except for 
construction of waterways, for road construction  or for energy (power plants) construction in 
certain provinces and territories 
14. Other lodging services – except under mode 3 for alcoholic beverages 
15. Rental of commercial vehicles with an operator services for international travel only 
16. Services auxiliary to all modes of transport – except for nationality requirements for customs 
brokers  
17. Services incidental to agriculture, hunting and forestry – except for residency requirement for 
designations, permits or licences in certain provinces and territories and other discretionary 
measures. 
18. Services incidental to animal husbandry – residency requirement in certain provinces and 
territories† 
19. Services auxiliary to insurance – except for commercial presence requirements in most 
provinces and territories and residency requirements in certain provinces and territories.  
20. Tour guide services – except for residency requirements in certain provinces and territories 
21. Travel agency and tour operator services – except for residency requirements in certain 
provinces and territories 
22. Veterinary services – except for residency requirements in certain provinces and territories†  
 
† Sectors where treatment exceeds Canada’s specific commitments under the WTO General 
Agreement on Trade in Services.  
__________