RESTRICTED  
  
WT/TPR/G/389  
17 April 2019  
(19-2558) Page: 1/26 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
CANADA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Canada  
is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Canada . WT/TPR/G/389 • Canada  
 
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  Contents  
1   CANADA IN THE GL OBAL TRADING SYSTEM  ................................ ...............................  4 
2   TRADE AND ECONOM IC ENVIRONMENT  ................................ ................................ ...... 4 
2.1   Economic Overview  ................................ ................................ ................................ ..... 4 
2.2   Canada as a Trading Nation  ................................ ................................ .........................  5 
3   TRADE POLICY DEV ELOPMENTS 2015 -2019  ................................ ...............................  6 
3.1   Multilateral Trade Policy  ................................ ................................ ..............................  6 
3.1.1    Canada and the WTO  ................................ ................................ ...............................  6 
3.1.2    WTO Modernization  ................................ ................................ ................................ .. 7 
3.1.3    Ongoing WTO Negotiations and Initiatives ................................ ................................ ... 8 
3.2   Supporting International Development  ................................ ................................ ..........  9 
3.3   Bilateral and Regional Free Trade Agreements  ................................ ..............................  10 
3.3.1    New Trade Agreements  ................................ ................................ ..........................  11 
3.3.2    Modernized Free Trade Agreements  ................................ ................................ .........  12 
3.3.3    Ongoing Negotiations  ................................ ................................ .............................  13 
3.4   Other Bilateral Initiatives  ................................ ................................ ...........................  13 
3.4.1    Foreign Investment Protection and Promotion Agreements (FIPAs)  ..............................  13 
3.4.2    Science and Technology and Innovation Agreements and Partnerships  .........................  14 
3.4.3    Air Transport Agreements  ................................ ................................ .......................  14 
3.5   Canada in Other Multinational Fora  ................................ ................................ .............  14 
3.5.1    The Group of Twenty (G20)  ................................ ................................ ....................  14 
3.5.2    Asia-Pacific Economic Cooperation (APEC)  ................................ ................................  14 
3.5.3    The Organization for Economic Co -operation and Development (OECD)  ........................  15 
3.5.4    The World Wine Trade Group ................................ ................................ ...................  15 
3.5.5   The Food and Agriculture Organization of the United Nations (FAO) and the 
Inter-American Institute for Cooperation on Agriculture (IICA)  ................................ ..............  15 
3.6   Dispute Settlement  ................................ ................................ ................................ ... 15 
4   OTHER KEY GOVERN MENT INITIATIVES  ................................ ................................ ... 16 
4.1   Canadian Free Trade Agreement (CFTA)  ................................ ................................ ...... 16 
4.2   Intellectual Property (IP)  ................................ ................................ ...........................  17 
4.3   Cabinet Directive on Regulation  ................................ ................................ ..................  17 
4.4   The Canadian Agricultural Partnership Policy Framework  ................................ ...............  17 
4.5   Supply Management  ................................ ................................ ................................ . 17 
4.6   Sanitary  and Phytosanitary Initiatives  ................................ ................................ .........  18 
4.7   Canada's Enhanced Corporate Social Responsibility (CSR) Strategy  ................................  19 
4.8   Changes to Canada's Trade Remedy Regime  ................................ ................................  19 
4.9   Countermeasures on U.S. Steel and Aluminium Products  ................................ ...............  19 
5   EXPORT DIVERSIFI CATION AND TRADE PRO MOTION  ................................ ..............  20 
5.1   Export Diversification Strategy  ................................ ................................ ...................  20 
5.2   Trade Commissioner Service  ................................ ................................ ......................  20 
5.3   Investment Promotion  ................................ ................................ ...............................  21 WT/TPR/G/389 • Canada  
 
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  5.4   The International Education Strategy  ................................ ................................ ..........  22 
5.5   Other Government of Canada Programmes and Strategies that Promote Exports  ..............  22 
5.5.1    The Clean Growth Hub  ................................ ................................ ...........................  22 
5.5.2    Creative Export Strategy  ................................ ................................ ........................  22 
5.5.3    Innovation and Skills Plan  ................................ ................................ .......................  22 
5.6   Small -and Medium Sized Enterprises (SMEs)  ................................ ................................  22 
5.6.1    Background Information  ................................ ................................ .........................  22 
6   INCL USIVE TRADE  ................................ ................................ ................................ .... 23 
6.1   Consultations and Transparency  ................................ ................................ .................  23 
6.2   Advancing an Inclusive Approach in Trade Agreements  ................................ .................  24 
6.2.1    Trade and Environment  ................................ ................................ ..........................  24 
6.2.2    Trade and Labour  ................................ ................................ ................................ .. 25 
6.2.3    Trade and Gender  ................................ ................................ ................................ .. 25 
6.2.4    Trade and SMEs  ................................ ................................ ................................ ..... 26 
6.2.5    Trade and Indigenous peoples  ................................ ................................ .................  26 
7   CONCLUSION ................................ ................................ ................................ ............  26 
 
 
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  1  CANADA IN THE GLOBAL  TRADING SYSTEM  
1.1.  Trade is essential to Canada's economy, with one in six Canadian jobs linked directly to exports. 
Canada is proud of the role that it has played in helping to build a global order based on the rule of 
law and an aspiration to free and more open trade. Unfortunately , the integrity of the global trading 
system, under which so many around the world have prospered, is currently facing unprecedented 
challenges. Growing concern that the benefits of trade have not been shared by all and that the 
existing rules no longer re flect an appropriate balance of rights and obligations has helped propel a 
rise in protectionism. This has taken the form of rising trade restrictive measures and unilateral 
actions that hinder and restrict international trade. Bilateral conflicts that giv e rise to unilaterally 
determined trade policies constitute a serious threat to a rules -based trade regime.  
1.2.  Open, trading nations, such as Canada, are most vulnerable to creeping protectionism and 
rising trade friction.  Canada remains steadfastly committed  to championing fair and predictable trade 
through the rules -based multilateral trading system, with the WTO at its core. Canada believes that 
more – not less – trade and investment is essential for global economic growth; we have a collective 
interest in open, rules -based trade to build prosperity and create jobs for our citizens.  
1.3.  Underpinning global trade tensions is a concern among many who see international trade as 
not living up to the promise of jobs, growth and prosperity. As stated in the Canadian Minister of 
Foreign Affairs' 2017 Foreign Policy Speech to the Parliament of Canada, there has been a growing 
crisis of confidence in globalization and liberalized trade. Canada therefore believes that pursuing an 
inclusive approach to trade - one that see ks to ensure that all segments of society can take 
advantage of the opportunities that flow from trade and investment - is required. This inclusive 
approach includes increased public engagement on trade policy; seeking provisions to protect and 
strengthen labour rights and the environment in trade agreements; advancing gender equality and 
women's empowerment; and, fostering opportunity for traditionally underrepresented groups, such 
as small - and medium -sized (SMEs) enterprises and Indigenous peoples, to en gage in international 
trade.   
2  TRADE AND ECONOMIC E NVIRONMENT  
2.1.  In 2015, at the time of Canada's last WTO Trade Policy Review (TPR), the global economic 
situation was quite uncertain. At that time, Canada's economic growth was particularly dampened 
by sharp ly declining oil prices, which reverberated throughout the economy. During the review 
period, the Government of Canada has made a concerted effort to address slower economic growth 
by making strategic investments in physical and social infrastructure, inno vation, science and 
research, and skills and training. Together, these actions have boosted confidence and spending 
over the near term and are projected to raise the productive capacity of the Canadian economy over 
the long term.1 
2.1  Economic Overview  
2.2.  During the review period, Canada's global gross domestic product (GDP) ranking has remained 
steady. Canada was the world's 10th largest economy in 2017, as it was in 2015 and in 2016 .2 
Canada has a high standard of living. In 2018, GDP per capita reached CAD 59,838 (approximately 
USD 46,182) in nominal terms.  
2.3.  The Canadian economy experienced robust growth in the second half of the review period. In 
2017, the Canadian economy grew by 3.0%, the strongest pace since 2011 and the fastest pace 
among G7 countries. Canad a's unemployment rate reached its lowest level in four decades in 2018. 
Since mid -2017, however, growth has moderated3, as the economy grew by 1.8% in 2018.  
2.4.  The strength of Canada's economy is fuelling  growth in federal revenues, allowing the 
Government to  respond to international developments (e.g. the recent United States tax reform), 
while keeping the debt -to-GDP ratio on a downward track and protecting the long -term fiscal 
                                                
1 Source: https://www.fin.gc.ca/pub/ltefp -peblt/2018/report -rapport -eng.asp . (Table 2)  
2 Source: World Bank indicators. For trade, information can be viewed at: 
http://stat.wto.org/CountryProfiles/CA_E.htm . 
3 Source : IMF Canada: https://www.imf.org/~/media/Files/Publications/CR/2018/cr18221.ashx . 
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  sustainability of Canada's economy. The deficit is projected to decline from CAD 19.6 billion in 
2019-20 to CAD 11.4 billion by 2023 -24. The federal debt -to-GDP ratio is projected to continuously 
decline and is expected to reach 28.5% in 2023 -24.4 According to the International Monetary Fund 
(IMF), Canada's net -debt-to-GDP ratio is the  lowest among G7 countries, less than one -third of the 
G7 average .5 
2.5.  Over the review period, monetary policy continued to provide stimulus in response to the global 
recession. The target  for the overnight  rate – the interest  rate at which  major financial in stitutions 
borrow and lend one -day funds among themselves – was lowered to 0.5% in 2015, to support the 
Canadian economy as it adjusted to the downturn in the oil and gas sector. The target for the 
overnight rate remained at 0.5% until 2017, when economic growth picked up strongly. The 
unemployment rate fell to a 44 -year low in 2018. The Bank of Canada raised the target rate five 
times between July 2017 and October 2018, to its current (as of March 2019), still -accommodative, 
level of 1.75%.  
2.2  Canada as a Tra ding Nation  
2.6.  Trade plays a critical role in the Canadian economy. Canada represents just 0.5% of the world's 
population but accounts for 2.4% (or approximatively five times more) of global trade. Canada's 
economy is open, diversified, and sophisticated, wit h aggregate two -way commercial flows (imports 
plus exports) accounting for approximately 66% of GDP .6  
2.7.  In 2017, Canada was the 12th largest merchandise exporter and 12th largest merchandise 
importer in the world .7 Services also played an important role in the Canadian economy. Over the 
last four years, services have accounted for around 70% of Canada's GDP. In 2017, Canada ranked 
as the world's 18th largest commercial services exporter and the 14th largest commerci al importer of 
services.  
2.8.  Foreign direct investment (FDI) continues to be an important channel of productivity, growth 
and innovation for Canada. In 2018, two -way direct investment flows amounted to CAD 116.7 billion. 
In 2018, the flow of Canadian outward investment fell by CAD 38.2 billion to CAD 65.4 billion, while 
foreign direct investment flows into Canada increased by CAD 19.1 billion to CAD 51.3 billion.  
2.9.  During the review period, the annual average Canadian dollar first depreciated relative to the 
U.S. dollar (USD) by 13.6% in 2015 and again by 3.5% in 2016, in response to the sharp decline in 
oil prices between 2014 and 2016. The value of the Canadian dollar reached a trough of USD 0.703 
in January 2016, then appreciated to USD 0. 814 in September 2017 , reflecting the rapid recovery 
of the Canadian economy, before depreciating to USD 0. 744 in December 2018. Nonetheless, the 
2018 annual average exchange rate remained higher than the annual average from the previous 
three  years, despite being 15% lower th an the 2014 average. These changes to the value of the 
Canadian dollar have impacted trends in Canadian trade.  
2.10.   In 2015, export prices fell by 2.6% and export volumes rose by 3.5%, while import prices 
advanced 6.3% and import volumes increased by a small am ount (0.8%). In 2016, import prices 
increased by a small amount, 0.4%, and volume remained stable at 0.5%, while export prices 
continued to decline by 0.8% and volumes increased by 0.5%. In 2017, as global economic 
conditions improved, exports rebounded wi th an increase in both prices (4.5%) and volumes (1.8%). 
Further, in 2017, strong household consumption supported a 4.1% increase in goods import volumes 
as goods import prices increased by 0.9% .8 The growing trend continued in 2018, as import prices 
(2.9% ), import volumes (3.3%), export prices (3.6%) and export volumes (4.2%) all advanced.  
                                                
4 Source: https:/ /fin.gc.ca/pub/ltefp -peblt/2018/report -rapport -eng.asp . (Chart 4)  
5 Source: IMF Fiscal Monitor Database, October 2018:  
https://www.imf.org/external/datamapper/GGXWDN_G01_GDP_PT@FM/CAN/DEU/FRA/ITA/JPN/GBR/USA . 
6 Statistics Canada: Gross domestic product, expenditure -based, Table 36 -10-0222-01: 
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610022201 . 
7 WTO Data portal: data.wto.org, International trade statistics.  
8 Statistics Canada table: 12 -1909126 -01.  International merchandise trade. By commodity, price and 
volume indexes, annual. C alculations based on Laspeyres fixed weighted index.  WT/TPR/G/389 • Canada  
 
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  2.11.   Canadian exporters, particularly in manufacturing, have benefitted in recent years from the 
lower value of the Canadian dollar compared to major currencies such as the U.S dollar and the 
Euro. Canadian merchandise exports to the U.S., for example, grew by 5.1% in 2017 and 5.6% in 
2018, recovering from declines in 2015 ( -0.6%) and 2016 ( -2.0%).  
3  TRADE POLICY DEVELOP MENTS 2015 -2019  
3.1.  In the face of global uncertainty on trade , and given the enormous importance of trade to its 
economy, Canada is pursuing a trade policy which is predicated on three, mutually reinforcing 
priorities: support for the rules -based system, which is the foundation of our trade policy; 
diversification o f trade and investment to new exporters and new markets; and, championing 
inclusive trade, which seeks to ensure that more Canadians can take advantage of the opportunities 
that flow from trade and investment.  
Support for the Rules -Based System  
 
3.2.  Trade has contributed to unprecedented global prosperity and development. In order to thrive, 
it requires a strong, rules -based system in which to operate. Canada is committed to upholding and 
actively participating in the rules -based multilateral trading system with the WTO at its core. This 
system is necessary for creating a predictable and fair economic environment in which businesses 
can thrive, which is essential to increasing the economic well -being of not just Canada, but of all 
WTO members, contribu ting to a more prosperous and stable world.  
Diversification  
 
3.3.  Diversifying Canada's trade through multilateral trade liberalization and an ambitious bilateral 
and regional trade agenda is essential to the country's continued economic prosperity and 
competit iveness. To complement efforts to improve access to new markets, Canada has recently 
unveiled a new Export Diversification Strategy , with the goal of increasing overseas exports by 50% 
by 2025. Over the next five years, planned investments in services and programmes  linked to the 
Strategy are valued at over CAD 280 million. Building on trade diversification initiatives already 
underway, the Strategy aims to ensure that Canadian businesses – of all sizes and sectors – 
experience the benefits of trade by capi talizing on more economic opportunities abroad, particularly 
in markets covered by Canada's newly implemented FTAs such as the Comprehensive Economic and 
Trade Agreement between Canada and the European Union  (CETA) and the Comprehensive and 
Progressive Agr eement for the Trans Pacific Partnership  (CPTPP).  
Championing Inclusive Trade  
 
3.4.  Canada is advancing an inclusive approach to trade, informed by ongoing dialogue with a broad 
range of Canadians, which aims to align Canadian trade policy priorities with the interests of all its 
citizens in being able to benefit from trade. In its trade agreements, Canada is building on past 
achievements by improving labour and environment protections, and pursuing new and innovative 
provisions aimed at women, SMEs and Indigen ous peoples. These provisions focus on cooperation 
and information sharing with the aim to improve the capacity and conditions for underrepresented 
groups to engage in and benefit from trade and investment opportunities.  
3.5.  All three of these mutually reinfo rcing trade policy priorities support Canada's overarching 
objective of fostering economic growth and creating good jobs, ultimately raising the standard of 
living for Canadians and Canada's trading partners.  
3.1  Multilateral Trade Policy  
3.1.1   Canada and the WTO  
3.6.  The WTO is an indispensable institution to upholding the multilateral trading system as it 
provides a forum to open markets and liberalize trade, create rules to provide for a predictable 
environment in which to operate, foster transparency, discuss issues and adjudicate disputes when 
they arise.  WT/TPR/G/389 • Canada  
 
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  3.7.  The global economy has undergone significant transformation since the WTO and its 
predecessor agreements were first formed, including the emergence of new economic powerhouses 
and technological change. Rising prote ctionism has in turn begun to erode respect and confidence 
for the rules -based trading system. These pressures have exacerbated existing differences among 
WTO members in their need, capacity or willingness to take on new commitments, and the rules and 
institutions that facilitate trade seem increasingly fragile.  
3.8.  The WTO is currently facing challenges on a number of fronts. The first core function, the 
monitoring, implementation and administration of existing rules and commitments, has been 
affected by escal ating trade tensions between the larger economies and the low compliance rate of 
some members with their notification obligations. This diminishes the ability of commerce to function 
within a more predictable environment, as well as the ability of members to try to address 
compliance problems. The second core function, the dispute settlement system, continues to 
struggle to keep up with demand, in part because of increasing length and complexity of cases being 
brought forward, and the block by the U.S. of n ew appointments to the Appellate Body. Canada is 
concerned that this has undermined the system's accessibility, creating incentives for short -term 
trade -distorting measures and unilateral counter -measures. With respect to the third core function 
of negotia tions, the WTO for some time has only been able to deliver limited results, and this has 
decreased stakeholders' confidence in the WTO's ability to stay relevant. For these reasons, there is 
now broad consensus among WTO members to look at ways to strength en and modernize the WTO.  
3.1.2   WTO Modernization  
3.9.  Canada believes the WTO must remain relevant and responsive to the global trade 
environment, which has substantially evolved since its inception in order to continue to provide a 
platform for economic growth thro ugh trade. In this context, Canada is deeply committed to WTO 
reform, and has convened a small group of likeminded and representative WTO members known as 
the "Ottawa Group", to identify pragmatic ideas aimed at enhancing and improving the WTO over 
the sho rt, medium and long term. In doing so, Canada intended to undertake a ground -up approach 
that would spark discussion and catalyse  momentum on issues that would enjoy the broadest 
support by WTO members. In the same vein, the group's discussions are also in tended to 
complement reform efforts by other WTO members.  
3.10.   After circulating a working paper on WTO reform in September 2018 to all WTO members, 
Canada hosted the first ministerial meeting of the Ottawa Group on 24-25 October 2018. The joint 
communiqué from  this meeting delivered a clear message of support for the rules -based multilateral 
trading system and identified the common goal of taking urgent action to strengthen the WTO. The 
communiqué identified three areas requiring pressing consideration: 1) impr oving the efficiency and 
effectiveness of the WTO's monitoring and transparency function; 2) safeguarding the WTO's dispute 
settlement system; and, 3) reinvigorating the negotiating function of the WTO.  
3.11.   Since the first ministerial meeting, momentum continu ed to build around the need for WTO 
reform and gained particular attention in the international community. G20 Leaders supported WTO 
reform through their joint statement in November 2018, indicating that Leaders would review 
progress on the topic at their next Summit in 2019. In January 2019, Canada sought to advance 
WTO reform discussions by circulating a second working paper to WTO members that focussed on 
improving and strengthening the ways WTO committees function, with a view to making a tangible 
difference for the operation and transparency of the WTO. This paper was a key topic of the second 
ministerial -level small group meeting that Canada convened, on the margins of the World Economic 
Forum Annual General Meeting in Davos, Switzerland. Ministers agr eed on the following: support for 
the WTO's General Council process on safeguarding and strengthening the WTO dispute settlement 
mechanism; the need for progress on other issues such as fish subsidies negotiations and plurilateral 
discussions on e -commerce  as a way to restore confidence in the WTO's negotiating function; and, 
the need to explore how the development dimension can be best pursued in rule -making efforts. 
The joint communiqué from Ministers also launched open -ended consultations with interested  WTO 
members to identify ideas and proposals to improve the deliberative function of WTO bodies. The 
Group is expected to meet again later in 2019 to take stock of progress.  
3.12.   Canada, along with other Members of the Ottawa Group, continues to urge all WTO Me mbers 
to work towards addressing market distortions caused by subsidies and other instruments. Canada 
also supports the development of stronger international rules on market -distorting industrial WT/TPR/G/389 • Canada  
 
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  subsidies and will continue its efforts to that end in appro priate fora such as the WTO. A longstanding 
interest for Canada at the WTO is to address market distorting agricultural subsidies.  
3.1.3   Ongoing WTO Negotiations and Initiatives  
3.13.   Canada is also actively engaged in a number of plurilateral and multilateral initiat ives at the 
WTO.  
(a) WTO Joint Statement Initiatives : Following the  11th WTO Ministerial Conference (MC11) on 
13 December 2017, which concluded without a formal declaration or new substantive 
outcomes, Canada and other like -minded countries issued several joint statements covering 
e-commerce, better integration of micro, small - and medium -sized enterprises (MSMEs) in 
international trade, and investment facilitation. These plurilateral initiatives are intended to 
reorient the Organization's work beyond longs tanding Doha Development Round issues and, 
if successful, could be multilateralized within the WTO framework.  
 
i. E-Commerce : Canada welcomes the recent 2019 Davos joint ministerial statement 
which announced the intention to commence WTO negotiations on trade -related 
aspects of e -commerce. Canada believes e -commerce provides new ways of doing 
business, creates opportunities and can foster remarkable new efficiencies for 
companies. It is also central to Canada's work to elevate SMEs through trade policy, 
as e-commerce gives SMEs access to much wider geographical markets, and for 
consumers around the globe it provides the benefits of increased competition and 
product choice.   
 
ii. WTO Investment Facilitation : Canada is an active participant in the WTO Structured 
Discussions on Investment Facilitation for Development . Foreign direct investment is 
an essential driver of capital formation,  particularly for developing and least -developed 
Members. A multilateral framework on investment facilitation could provide a roadmap 
for creating a transparent, efficient and predictable environment for cross -border 
investment.  
 
iii. Micro, Small, and Medium -Sized Enterprise (MSMEs) : Canada is an active participant 
in the WTO's Informal Working Group on MSMEs. Through this group, like -minded 
members are working to identify ways to increase the participation of MSMEs in 
international trade. Canada views this is sue in a cross -cutting manner, and believes 
our collective effort to strengthen the WTO, including efforts to improve transparency 
among members or to reduce trading costs, has the potential to help MSMEs, which is 
an important component of making trade mo re inclusive.  
 
(b) WTO Fisheries Subsidies Negotiations : On fisheries subsidies negotiations, Canada is 
supportive of the work programme  that has been established for the first half of 2019 , as it 
is in line with the United Nations ' Sustainable Development Goal 14.69, where  all UN member 
states, including Canada , committed to prohibit certain forms of fisheries subsidies that 
contribute to overcapacity and overfishing ; eliminate subsidies that contribute to illegal, 
unreported and unregulated fishing ; and re frain from introducing new such subsidies.  Canada 
welcomes the Chair's strategy to shift to bilateral and open -ended consultations  and expects 
that it  will act as a further catalyst for advancing negotiations in order to achieve a 
comprehensive and effecti ve agreement in 2019.  
 
(c) WTO Agriculture Negotiations : With regard to agriculture, Canada's priority remains the 
development of stronger disciplines on trade - and production -distorting domestic support. 
To help advance discussions in this area, Canada has be en active in leading technical 
discussions by preparing analytical papers and presentations on how the global agriculture 
trade landscape has evolved since 2001. In particular, in July 2018, Canada circulated a 
technical paper on domestic support in the Ag reement on Agriculture with some members of 
the Cairns Group and presented the findings from this paper in September 2018. This 
presentation provided  a factual analysis of how domestic support has evolved since 2001 f or 
the largest traders and subsidizers . Then, in November 2018, Canada, along with 
co-sponsors, circulated an analytical paper illustrating the changing landscape and issues 
                                                
9 Source: https://sustainabledevelopment.un.org/sdg14 . WT/TPR/G/389 • Canada  
 
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  regarding the use of trade distorting product -specific support as notified by Members. Finally, 
to enable Members to undertake analysis on domestic support in agriculture, Canada 
circulated a comprehensive database covering all WTO Members that notified do mestic 
support since 2001. The objective with this analytical tool is to allow Members to undertake 
analysis on key issues in domestic support in order to enhance understanding of issues in 
agriculture domestic support with a view to  advancing agriculture negotiations at the WTO.   
 
(d) WTO Information Technology Agreement (ITA) : Canada has been a participant to the 
Ministerial Declaration on Trade in Information Technology Products  (also known as the ITA) 
since its signature at the 1996 Singapore Ministerial Co nference. Canada is also a participant 
in the ITA expansion, which concluded in December 2015 and was implemented by Canada 
on 1 July 2016. Canada continues to be an active player in promoting the importance of the 
ITA expansion, including in the context o f Asia -Pacific Economic Cooperation (APEC), as well 
as through chairing the informal group of ITA expansion participants at the WTO, which 
focuses on effective implementation of the Agreement.  
 
(e) Environmental Goods Agreement:  Canada is one of 18 WTO members that were participating 
in negotiations towards a plurilateral Environmental Goods Agreement . Canada remains 
ready to re -commence negotiations toward an ambitious agreement that would eliminate 
tariffs on a broad range of e nvironmental goods and help facilitate the achievement of WTO 
members' green growth objectives.  
 
Advancing women's empowerment  
 
3.14.   Further, Canada is active in the multilateral context to address inclusive trade objectives as 
well, as demonstrated by its lead ership with respect to the Buenos Aires Declaration on Women's 
Economic Empowerment, agreed to by 123 WTO Members. As a cross -cutting issue, gender 
considerations must be taken into account in all facets of trade. Improving the responsiveness of 
the multil ateral trading system to gender considerations is important in order to create more 
inclusive trade and to help ensure that the benefits of trade are more widely shared. As an example 
of progress at the WTO in this area, Canada has taken a leading role in the implementation of the 
Buenos Aires  Declaration, hosting the first workshop held under the auspices of the Declaration, on 
trade and gender -based analysis, in March 2018. Canada continues to actively engage in the 
implementation of the Buenos Aires Decl aration .  
3.15.   Through active participation in the WTO, particularly by taking a leadership role in key areas 
including modernization and reform, Canada is demonstrating its strong commitment to upholding 
the rules -based international trading system.  
3.2  Supporting International Development  
3.16.   Canada recognizes the important role of trade in stimulating economic growth and promoting 
sustainable development. Canada remains engaged in discussions on trade and development, which 
can offer an opportunity to incre ase economic prosperity for all WTO members, particularly for 
developing countries, by enhancing predictability in the multilateral trading system through the 
strengthening of international rules. Although the broader Doha Development Agenda negotiations 
have been at an impasse since 2011, Canada continues to work with fellow WTO members to 
implement new WTO agreements, such as the Trade Facilitation Agreement , and to address the 
concerns of developing countries about taking on new commitments. Canada suppo rts international 
development through trade in a variety of ways, including by supporting trade facilitation; "Aid for 
Trade" and capacity building initiatives; as well as special and differential treatment recognizing the 
needs of least developed countrie s (LDCs); and, adopting the LDC Tariff.  
(a) Trade Facilitation : Canada coordinates trade development assistance through its partnership 
with the Trade Facilitation Office Canada , which facilitates access to the Canadian 
marketplace and shares Canadian trade ex pertise for the benefit of smaller exporters in 
developing countries.  Canada is an active supporter of new funding mechanisms that 
encourage more innovative and cost -effective private - and voluntary -sector solutions to 
trade -related development assistance.  One example is as a founding donor to the Global 
Alliance for Trade Facilitation , which leverages private sector expertise and resources, 
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  (b) Aid for Trade : Canada has  established programmes  that support the development of an 
enabling environment in partner countries, strengthening trade -readiness and 
competitiveness. Canada's "Aid for Trade" commitments include those at the multilateral level 
(e.g., the International T rade Centre , the Canadian Trade and Investment Facility for 
Development) ; at the regional level (e.g., Pan-Africa Regional Development Program ); at the 
bilateral country level through individualized programming activities; and, at the level of civil 
societ y and through innovative public -private partnerships (such as the Global Alliance for 
Trade Facilitation ). Since 2015 -16, Canada has increased aid for trade funding, contributing 
in excess of CAD 1.5 billion10 to "Aid for Trade" projects through all channels over the last 
three years.  
 
(c) Capacity Building : In October 2018, Canada launched the Expert Deployment Mechanism for 
Trade and Development . The seven -year (2018 -2025) initiative is a global facility that 
responds to requests for technical assistance from developing countries to better negotiate, 
implement, adapt to and benefit from trade and investment agreements with Canada.  
 
(d) Recognizing the Needs of Least Developed Countries : Canada continues to support the  WTO's 
efforts to explicitly recognize the needs, interests and concerns of LDCs. Canada remains a 
strong supporter of the 2002 WTO General Council decision to facilitate LDC accessions to the 
WTO. Canada has also had a  preferential tariff for LDCs in plac e since 1983. This unilateral 
tariff preference for LDCs was renewed in 2013 until 31 December 2024. It covers 98.6% of 
all tariff lines for 49 of the world's LDCs and is among the most far -reaching in terms of eligible 
countries, product coverage, rules o f origin and ease of administration. Beyond duty -free, 
quota -free access, the rules of origin that Canada applies to LDC imports are among the most 
liberal in the world. On 20 June 2017, Canada implemented changes to those rules of origin 
to allow more app arel products to qualify for duty -free treatment when imported into Canada. 
Canada has also made revised preferential treatment available to services and services 
suppliers of LDCs since 2015.  
 
3.3  Bilateral and Regional Free Trade Agreements  
3.17.   Canada continues to make significant efforts to diversify its trade, with the aim of allowing 
exporters to take advantage of opportunities in large and emerging markets. Bilateral and regional 
FTAs have represented a key tool for Canada in pursuit of trade  diversification. As of March 2019, 
Canada had 14 FTAs in force with 51 countries, representing two -thirds of the global economy: the 
U.S. and Mexico (NAFTA, 1994); Israel (1997); Chile (1997); Costa Rica (2002); the European Free 
Trade Association (2009);  Peru (2009); Colombia (2011); Jordan (2012); Panama (2013); Honduras 
(2014); Republic of Korea (2015); Ukraine (2017); the European Union (provisionally applied since 
2017); and the CPTPP (2018). Following the entry into force of the CPTPP for Canada on 
30 December 2018, Canada became the only Group of Seven (G7) country to have FTAs with every 
other member of the G7, connecting Canadian businesses to over 1.5 billion of the world's 
consumers.  
3.18.   Notably, Canada signed and implemented two comprehensive regio nal agreements since its 
last review in 2015: the CETA, with the European Union , and the CPTPP with ten other Pacific 
economies; as well as one bilateral FTA with Ukraine. Canada has also dedicated efforts to modernize 
several of its existing FTAs (NAFTA/C USMA, Canada -Chile FTA, Canada -Israel FTA), in order to 
update existing provisions and add new elements to bring these agreements in line with Canada's 
more recent agreements. Canada is currently engaged in negotiations for FTAs with Mercosur, the 
Pacific Alliance (PA) and India and has held FTA exploratory discussions with ASEAN and China.  
3.19.   Canada's active FTA agenda is a reflection of the importance that it places on free trade and 
creating opportunities for Canadian business to expand into international m arkets. Canada's aim in 
negotiating agreements is to establish high quality, ambitious and comprehensive FTAs through 
improved market access and rules, benefiting companies of all sizes in a diverse range of markets.  
                                                
10 Source: Please download PDF document at : 
https://www.wto.org/english/tratop_e/devel_e/a4t_e/gr17_e/gr17programme_e.htm . WT/TPR/G/389 • Canada  
 
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  3.3.1   New Trade Agreements  
Canada -EU Comprehe nsive Economic and Trade  Agreement (CETA)  
 
3.20.   On 21 September 2017, the Canada -EU CETA entered into provisional application, with full 
entry into force pending ratification by all EU member States. CETA is an ambitious and inclusive 
trade agreement covering v irtually all sectors and aspects of Canada -EU trade, opening new markets 
in the EU for Canadian exporters and generating benefits for all Canadians. Beyond increased market 
access, CETA fosters inclusive growth, advances higher standards of living, promote s labour rights 
and ensures strong environmental protections. CETA includes many significant and innovative 
achievements – for example, it represents the first bilateral trade agreement in which Canada has 
included a standalone chapter on regulatory cooper ation, which promotes early engagement as 
measures are being developed. CETA is also the first agreement that includes a protocol on 
conformity assessment that will allow Canadian manufacturers in certain sectors to have their 
products tested and certified  in Canada for sale in the EU; as well as a detailed framework for the 
mutual recognition of professional qualifications, a key aspect of labour mobility.  
3.21.   In the first nine months following CETA provisional application, Canada's merchandise exports 
to the EU increased by 4.4% compared to the same period a year earlier. In general, products that 
benefited from the largest decline in EU tariffs as a result of CETA also saw the largest trade gains: 
EU imports of Canadian products subject to a 5% and 10% tariff  rate decline saw imports rise by 
26.9%, compared to imports of products without tariff reductions which fell by 3.6% .11  
3.22.   Some provisions of CETA will only enter into force after ratification by all EU member States, 
including the investor state dispute set tlement (ISDS) mechanism between investors and states, 
some provisions in the Financial Services chapter related to portfolio investment, and the ISDS 
mechanism for investment disputes in financial services. Meanwhile, the current level of protection 
for Canadian investors is maintained.  
Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP)  
 
3.23.   On 8 March 2018, Canada and 10 other countries - Australia, Brunei, Chile, Japan, Malaysia, 
Mexico, New Zealand, Peru, Singapore, and Viet Nam - signed the CPTPP, which entered into force 
for Canada and five other countries12 on 30 December 2018. The Agreement subsequently entered 
into force for Viet Nam on 14 January 2019, and will enter into force for Peru, Chile, Malaysia and 
Brunei 60 days afte r the country ratifies the Agreement. Once fully implemented, the CPTPP will 
create a trading bloc representing nearly 500 million people and approximately 13.5% of global GDP.  
3.24.   The CPTPP is a 21st century agreement that establishes a new global standard for trade policy 
rules and market access commitments. The agreement's ambitious outcomes for tariff elimination 
on goods and market access for trade in services and government procurement reinforces Canada's 
commitment to high levels of trade liberalisatio n and the fundamental principles of an open and 
rules-based international trading system. The CPTPP also covers areas beyond the scope of 
traditional FTAs, including chapters to address concerns about non -market behaviour by state -owned 
enterprises and pro visions to ensure high levels of protection for labour rights and the environment, 
backed by enforceable dispute settlement. As a result, the agreement stands to serve as a model 
for future FTAs in the Asia -Pacific region and beyond.  
3.25.   The CPTPP is also desi gned for future growth and contains provisions for possible expansion 
of the agreement through the accession of new economies. The accession of new members to the 
CPTPP would encourage the further adoption of modern trade policy rules, building regional ec onomic 
integration and participation in global value chains and strengthening the open, rules -based trading 
system. Accessions will also facilitate the diversification of Canadian trade and investment relations 
with the Asia -Pacific region.  
                                                
11 Source: https://www.international.gc.ca/gac -amc/campaign -campagne/ceta -aecg/year_one -
premiere_annee.aspx?lang=eng . (Section: Tariff reduction and EU imports from Canada), based on the first 
nine months of CETA.  
12 The CPTPP entered into force for Japan, Australia, New Zealand, Mexico, and Singapore on 
30 December 2018 and for Viet Nam on 14 January 2019.  WT/TPR/G/389 • Canada  
 
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  Canada -Ukraine Free Trade Agreement (CUFTA)  
 
3.26.   CUFTA entered into force on 1 August 2017. Upon entry into force, Canada eliminated duties 
on 99.9% of imports from Ukraine. Similarly, Ukraine immediately eliminated tariffs on 
approximately 86% of Canada's exports, with the balance of tariff concessions to be implemented 
over seven years. CUFTA also includes mechanisms to address a range of other non -tariff barriers 
to trade, such as sanitary and phytosanitary measures and technical barriers to trade, thereby 
benefiting both  Canadian and Ukrainian exporters and consumers. CUFTA reinforces Canada's 
broader bilateral engagement in Ukraine, including the promotion of its sustainable economic 
growth.  
3.3.2   Modernized Free Trade Agreements  
3.27.   Canada has sometimes found it necessary to upda te and modernize its FTAs over time in 
order to align those agreements with its more recent FTAs and the changing economy. During the 
review period, Canada successfully modernized three of its existing FTAs, one of which (Canada -
Chile) has subsequently ent ered into force.  
Canada -United States -Mexico Agreement (CUSMA)  
 
3.28.   On 30 November 2018, Canada, the U.S. and Mexico signed the CUSMA, which will replace 
the North American Free Trade Agreement (NAFTA) once it enters into force. The CUSMA preserves 
important N AFTA provisions and market access into the U.S. and Mexico; modernizes and improves 
on the agreement; and, reinforces the security and stability of market access into the U.S. and 
Mexico for Canadian businesses.  
3.29.   Importantly, the NAFTA tariff outcomes have been carried forward into the CUSMA, ensuring 
continued duty -free access into the U.S. and Mexican markets for originating goods. In some cases, 
the rules of origin for originating goods have been strengthened, i n particular for autos – where the 
regional value content levels were increased from 62.5% to 75%. Other important elements for 
Canada that were carried forward include the cultural exception, temporary entry for business 
persons provisions, state -to-state dispute settlement and the binational panel dispute settlement 
mechanism for anti -dumping and countervailing duty matters.  
3.30.   In respect of modernization, the CUSMA includes improved disciplines for trade in goods and 
agriculture, including with respect to c ustoms administration and procedures; technical barriers to 
trade, and sanitary and phytosanitary measures, as well as a new chapter on good regulatory 
practices. For example, the " Good Regulatory Practices" chapter sets out specific obligations and 
practi ces relating to the planning, design, issuance, implementation, and review of the Parties' 
respective regulations. Once implemented, the chapter will also establish mechanisms to encourage 
and facilitate regulatory compatibility and cooperation. Additional ly, obligations related to trade 
facilitation and customs procedures have been modernized for the 21st century to better facilitate 
cross-border trade, including through the use of  electronic processes which will reduce red tape for 
exporters and lower the cost of doing business.  
3.31.   Canada is now following its domestic processes towards the timely ratification and 
implementation of the Agreement with a view to strengthening our commer cial relationship with the 
United States and Mexico and providing important stability and predictability for Canadian businesses 
and workers.  
Canada -Chile Free Trade Agreement (CCFTA)  
 
3.32.   The CCFTA first came into force on 5 July 1997, covering trade in goods , services, and 
investment. Since its entry into force, the Agreement has been modernized several times. Most 
recently, on 5 February 2019, an Amending Agreement to the CCFTA entered into force, adding new 
chapters on sanitary and phytosanitary measures, t echnical barriers to trade, and gender; and made 
improvements to existing chapters on government procurement and investment. Notably, this 
agreement represents a historic achievement for Canada – the first time that a Canadian FTA has 
included a stand -alone chapter on trade and gender, and a reflection of the importance Canada and 
Chile place on advancing gender equality and ensuring that women workers and entrepreneurs share 
in the benefits of the FTA.  WT/TPR/G/389 • Canada  
 
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  Canada -Israel Free Trade Agreement (CIFTA)  
 
3.33.   CIFTA ente red into force on 1 January 1997, covering trade in goods. CIFTA was modernized 
between 2015 and 2018 to include four updated chapters (rules of origin, dispute settlement, goods 
market access and administration of the agreement) and nine new chapters (tra de facilitation, e -
commerce, intellectual property, technical barriers to trade, sanitary and phytosanitary measures, 
labour, environment, trade and gender, and small and medium enterprises). The modernized CIFTA 
was signed by Canada and Israel on 28 May 2 018, in Montreal. Ratification was pending as of March 
2019.  
3.3.3   Ongoing Negotiations  
Canada -Mercosur  
 
3.34.   Canada and Mercosur launched negotiations toward a comprehensive and inclusive free trade 
agreement in March 2018. With a collective GDP of over CAD 3.6 tri llion, and a population of 
262 million in 201713, the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay represent 
an opportunity for Canada to grow its economic footprint in South America.  
Canada -Pacific Alliance  
 
3.35.   In June 2017, the Pacific Alliance (a regional integration initiative created by Chile, Colombia, 
Mexico, and Peru) invited Canada to become an Associated State, which requires the negotiation of 
an FTA with the Pacific Alliance. Negotiations were launched  on 22 October 2017, and seven 
negotiating rounds have taken place as of February 2019. Canada's objective for these negotiations 
is to strengthen and streamline its existing FTAs with the Pacific Alliance countries and the CPTPP 
(with three of the four Pa cific Alliance countries).  
Canada -India Comprehensive Economic Partnership Agreement  
 
3.36.   Canada  and India launched  negotiations  toward a Canada -India Comprehensive Economic 
Partnership Agreement in November 2010. Ten rounds of negotiations have been held to d ate. 
3.4   Other Bilateral Initiatives  
3.4.1   Foreign Investment Protection and Promotion Agreements (FIPAs)  
3.37.   In addition to including investment chapters in its FTAs, Canada negotiates stand -alone 
investment treaties, referred to as FIPAs, which are aimed at protectin g and promoting foreign 
investment between Parties through legally binding rights and obligations. During the review period, 
Canada brought nine FIPAs into force, with Burkina Faso, Cameroon, Côte d'Ivoire, Guinea, Hong 
Kong China , Kosovo, Mali, Mongolia, and Serbia.  
3.38.   Canada's approach to FIPAs improves transparency and predictability, and offers protection 
for investors by incorporating the following key features: a broad definition of investment; 
obligations for national treatment and most -favoured nation treatment applied at both the pre - and 
post-establishment phase; minimum standard of treatment in accordance with international law; 
protection against expropriation without compensation; free transfers of investment -related funds; 
disciplines on performan ce requirements; and, investor -state and state -state dispute settlement 
mechanisms. Recent agreements have also included provisions clarifying the right to regulate in the 
public interest, including the maintenance of health, safety, and environmental meas ures; and, 
encouraging the adoption of corporate social responsibility principles. Moreover, recent FIPAs also 
include expanded articles on the settlement of disputes between an investor and the Host Party, 
including provisions on the mediation of disputes .  
                                                
13 Source: IMF, World Economic Outlook Database, October 2018: 
https://www.imf.org/external/pubs/ft/weo/2018/02/weodata/index.aspx . WT/TPR/G/389 • Canada  
 
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  3.39.   In 2018, the Government of Canada launched public consultations on how to make its FIPAs 
more inclusive, transparent and accountable. Based on the feedback received to date, which included 
more than 350 submissions, Canada is currently in the process of mo dernizing its FIPA model in 
order to incorporate new provisions to ensure that all Canadians (e.g., women, Indigenous peoples 
and SMEs), are able to benefit from Canada's FIPAs. This review is expected to be completed in the 
first half of 2019.  
3.4.2   Science and  Technology and Innovation Agreements and Partnerships  
3.40.   Canada has nine treaty -level bilateral Science, Technology and Innovation Agreements  with 
France, Germany, Japan, Israel, the EU, India, Brazil, China and South Korea, as well as several 
non-treaty mem oranda of understanding and arrangements. Ten of these bilateral instruments (with 
India, China, South Korea, Japan, Brazil, Israel, Germany, France, the United Kingdom, and the EU) 
have established joint committee structures to facilitate bilateral collab oration in innovation and 
research and development among federal, provincial, academic and private sector stakeholders. In 
2017-18, Canada facilitated 125 international research and innovation partnerships.  
3.4.3   Air Transport Agreements  
3.41.   Since the inception of its Blue Sky policy  in 2006, Canada has concluded new or expanded Air 
Transport Agreements covering over 105 countries. During the review period, Canada concluded 
expanded agreements with numerous markets, including Algeria, Australia, The Bahamas, Côte 
d'Ivoire , Ethiopia, Israel, Mexico, Morocco, Qatar, the United Arab Emirates, Egypt, Thailand, and 
South Africa. First -time agreements were also concluded with Antigua and Barbuda, Belize, Benin, 
Cameroon, Guinea, Mauritius, Mongolia, the Seychelles, Sri Lan ka, St. Lucia, St. Vincent and the 
Grenadines, and Tanzania.  
3.42.   Air Transport Agreements play a critical role in facilitating and enabling international trade  and 
investment, global value chain (GVC) connectivity and people -to-people links, allowing for direc t air 
links for students, tourists, and business people. They are a key enabler to the various FTAs that 
Canada has negotiated with partners throughout the world.  
3.5   Canada in Other Multinational Fora 
3.43.   Outside of the WTO, Canada actively promotes enhancing the rules -based trading system 
through various multilateral fora.  
3.5.1   The Group of Twenty (G20)  
3.44.   Canada supports the G20's continuing work to promote and strengthen an inclusive 
international trade system that contributes to sustainable and shared growth. The G20 Trade and 
Investment Working Group , created in 2015, promotes strengthening consensus on the importance 
of open, predictable and rules -based trade, including consensus toward safeguarding and 
strengthening the rules -based system through WTO reform. Sinc e its inception, Canada has been 
an active participant and has made significant contributions to the group.  
3.45.   Canada is committed to addressing market distortions caused by subsidies, including those 
that can contribute to excess capacity. For example, Cana da is involved in the  Global Forum on Steel 
Excess Capacity (GFSEC). This forum, established by Leaders at the September 2016 G20 Hangzhou 
Summit, is working to identify market -distorting subsidies and other types of support in order to 
develop concrete po licy solutions to reduce excess capacity in the steel sector. The GFSEC reported 
to G20 ministers in September 2018 and its work will continue in 2019. Canada has been among 
the most transparent of members in providing steel support information and encoura ges full 
transparency by all participants so that a complete picture of support to the global sector can be 
established.  
3.5.2   Asia-Pacific Economic Cooperation (APEC)  
3.46.   Canada continues to support APEC in its goal of moving toward free and open trade and 
investme nt in the Asia -Pacific region, including the eventual realization of the Free 
Trade  Area of the Asia-Pacific  (FTAAP). In 1994, APEC leaders committed to the Bogor Goals, with WT/TPR/G/389 • Canada  
 
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  the objective of achieving free and open trade and investment by 2010 for industr ialized economies, 
and by 2020 for developing economies. Canada has contributed to reaching APEC's Bogor Goals 
through reducing tariffs; modernizing intellectual property laws regarding copyright, trademarks and 
intellectual property enforcement; and, coop erating with several APEC members on standards -
related initiatives. Canada  is also playing an active role in the ongoing efforts to define APEC's 
mandate past 2020, when the Bogor Goals will expire.  
3.5.3   The Organi zation for Economic Co -operation and Developme nt (OECD)  
3.47.   Canada actively supports the OECD's advocacy of open markets as a structural driver of 
economic growth and employment. Canada is actively engaged in the OECD Trade,  Investment and 
Steel Committees,  OECD Working Party on Export Credits and Credit Guarantees , and has 
encouraged the Organization's collaboration with the G20. Recent developments of note include 
developing policy recommendations on GVCs, services, trade and gender, trade facilitation and trade 
distortive support to the aluminum sector.  
3.48.   Canada contributes to the technical and analytical efforts lead jointly by the OECD and WTO 
on measuring trade in value -added (TiVA) terms, particularly in the area of gender. Canada supports 
upcoming OECD work that will match TiVA with demographic data t o better understand, for example, 
female entrepreneurs' and employees' indirect participation in GVCs. Canada also contributed to the 
design and completion of the OECD's Services Trade Restrictiveness Index , which demonstrates that 
services trade barriers reduce trade and investment while impairing competitiveness along value 
chains. Canada also supports the development of OECD Trade Facilitation Indicators  to help improve 
border procedures.  
3.5.4   The World Wine Trade Group  
3.49.   Canada continues to be active as a memb er of the World Wine Trade Group  – an informal 
group of wine producing countries that meet twice yearly on issues related to wine trade. Canada 
has been a member of the World Wine Trade Group  since its inception in 1996.   
3.5.5   The Food and Agriculture Organizat ion of the United Nations (FAO) and the 
Inter -American Institute for Cooperation on Agriculture (IICA)  
3.50.   Canada provides contributions to the FAO and to the IICA to fund projects that help developing 
countries adopt science -based approaches to regulate agri -food trade and for building countries' 
capacities to adopt and comply with standards agreed to at the WTO. Canada continues to advocate 
that these institutions help countries comply with WTO standards and build their capacities to be 
stronger participants in WTO discussions.  
3.6  Dispute Settlement  
3.51.   Canada views the ability to resolve trade disputes through binding dispute settlement as a 
core function of the WTO. During the review period, Canada brought forward five disputes to the 
WTO Dispute Settlement Body (DSB), defended itself in five disputes, and was involved as a third 
party in 46 disputes .14  
3.52.   Canada continues to seek improvements to the dispute settlement system to make it more 
effective and efficient for all members, including through an active partici pation in the work of the 
DSB in Special Session. As well, in 2016, Canada spearheaded efforts to launch a mechanism for 
developing, documenting and sharing practices and procedures in the conduct of WTO disputes. 
Such a voluntary mechanism is meant to mak e incremental and practical improvements to the 
dispute settlement system for endorsement by WTO members, 20 of whom have endorsed to date.   
3.53.   As a strong supporter of the rules -based multilateral trading system, Canada is particularly 
concerned by the impasse over the appointment of Appellate Body members. In this regard, Canada 
is committed to working with other interested Members to expeditiou sly develop solutions to ensure 
an effective and enforceable dispute settlement mechanism and co -sponsored several proposals 
                                                
14 Disputes include only the ones where a panel was established post 1 January 2015.  WT/TPR/G/389 • Canada  
 
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  during the review period, including an EU proposal set out in document WT/GC/W/752 and a joint 
Australia -Singapore proposal set out  in document WT/GC/W/754.  
4  OTHER KEY GOVERNMENT  INITIATIVES  
4.1  Canadian Free Trade Agreement (CFTA)  
4.1.  The Canadian Free Trade Agreement  (CFTA), which serves as Canada's primary framework 
agreement for internal trade, entered into force on July 2017. The CFTA re placed the longstanding 
Agreement on Internal Trade , which had covered Canada's internal trade since 1995. The CFTA 
addresses key impediments to internal trade within Canada, unlocking more of Canada's economic 
potential. Parties to the CFTA include Canada 's federal government, ten provinces and three 
territories. Internal trade represents roughly one -fifth of Canada's annual GDP, or the equivalent of 
around  CAD 385 billion per year .15 
4.2.  The CFTA has two main objectives: 1) to reduce and eliminate, to the exte nt possible, barriers 
to the free movement of persons, goods, services, and investments within Canada; and, 2) to 
establish an open, efficient, and stable domestic market. The CFTA brings about changes to internal 
trade with the aim of improving the alignm ent of domestic rules and regulations; and increasing 
competitiveness, support of innovation, and expansion of business opportunities for Canadian 
suppliers to government. The CFTA seeks to align domestic trade rules with those of Canada's 
international tr ade agreements, and covers almost all economic activities, notably covering both the 
energy sector and most of the services sectors. The CFTA helps create the right conditions to expand 
domestic business investment and attract foreign direct investment.  
4.3.  The CFTA includes specific provisions that are targeted to trade in goods, services, investment, 
monopolies and government enterprises (commercial activity) and incentives. These rules generally 
prohibit overly -burdensome regulation, discriminatory treatment , and unjust restrictions on trade 
for the specific subject matter to which they apply.  
4.4.  The CFTA includes chapters on Government Procurement, Environmental Protection and Labour 
Mobility that, among other things, promote open procurement practices, recogni ze that 
environmental protection and trade can be mutually supportive, and eliminate or reduce measures 
that restrict or impair labour mobility within Canada.  
4.5.  The CFTA deepens the coverage on government procurement by expanding the scope of 
government enti ties. For example, for the first time, the energy sector and many energy utilities are 
covered by open procurement rules. The CFTA also commits Parties to establish new independent 
bid protest mechanisms in each jurisdiction. For the Government of Canada, procurement complaints 
will continue to be heard by the Canadian International Trade Tribunal . Parties have also agreed to 
post tender notices to a single point of access, in line with Canada's commitments in CETA, once 
such a point of access is available by 2022 and  adapted for use for the purposes of the CFTA.  
4.6.  Under the CFTA, Parties have also established significant new regulatory notification, 
reconciliation, and cooperation mechanisms. Under these rules, Parties must notify and consult in 
respect of p roposed regulations (or modifications to regulations) that may have a significant effect 
on internal investment or trade in goods or services. To oversee the CFTA's regulatory reconciliation 
and cooperation mechanisms, the Regulatory Reconciliation and Coo peration Table  (RCT) was 
established. The RCT developed its first annual work plan in 201816, which is publicly  available online 
and a number of items on that work plan have already been completed.  
4.7.  While considerable progress has been made in reducing inter nal barriers through the CFTA, a 
number of measures remain in place that can impede trade in goods and services, investment and 
labour mobility within Canada, including in sectors such as transport, occupational health and safety. 
A number of committees an d working groups have been established under the CFTA to address these 
remaining barriers, such as the RCT. Parties have also committed to future negotiations to 
                                                
15 Canadian Free Trade Agreement, CFTA General Backgrounders: htpps://www.cfta -alec.ca  
16 Source: https://www.cfta -alec.ca/wp -content/uploads/2018/07/RCT -2018-2019-Work-Plan-List-of-
Measu res-Final-July-20-2018.pdf . WT/TPR/G/389 • Canada  
 
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  incorporate rules applicable to financial services, which account for roughly 6% of Canada's t otal 
GDP, into the CFTA.  
4.2  Intellectual Property (IP)  
4.8.  Reflective of Canada's commitment to maintaining a sound and efficient intellectual property 
(IP) regime that is conducive to innovation, investment, and economic growth, since 2015, Canada 
has updated al l its key IP statutes, including the Patent Act, Copyright Act, Trade -marks Act, 
Industrial Design Act , and Plant Breeders' Rights Act . 
4.9.  Most recently, a number of legislative amendments were passed by Canada's Parliament to 
advance the Government's Intelle ctual Property Strategy , including amendments that improve 
efficiency, clarify acceptable practices and prevent misuses of IP rights. These amendments include 
the establishment of minimum requirements for patent demand letters, to discourage the sending 
of deceptive and/or vague letters and to ensure a balance between using demand letters as a 
low-cost method to assert a patent right and discouraging bad behaviour.  
4.10.   Other amendments are designed to protect consumers, by excluding settlement demands 
from Can ada's copyright "notice and notice" regime; and, to prevent the cluttering and misuse of 
the trademark regime, by reinforcing the importance of use, through a new bad -faith trademark 
opposition and cancellation ground and a use requirement for the enforcem ent of trademark rights 
within the first three years after registration. Finally, the amendments reformed the Copyright Board 
of Canada  to ensure that its decisions are rendered faster and with more certainty while continuing 
to protect the public interest .  
4.11.   Canada has extended the term of copyright protection for published sound recordings; 
granted IP agents a statutory privilege for confidential communications with clients; introduced 
supplementary protection for patents relating to pharmaceutical product s; and expanded its open, 
transparent and effective regime for the protection of geographical indications to include certain 
agricultural products and food products.  
4.12.   Canada has also ratified and acceded to several important multilateral treaties such as t he 
World Intellectual Property Organization (WIPO) Marrakesh Treaty and the WIPO Hague Agreement, 
as well as implementing IP provisions in trade agreements, including CETA and CPTPP.  
4.3  Cabinet Directive on Regulation  
4.13.   In 2018, Canada updated its policy directive to federal regulators through the Cabinet 
Directive on Regulation , which sets out the Government of Canada's expectations and requirements 
in the development, management, and review of federal regulations. The Cabinet Directive on 
Regulation  also includes international considerations and obligations that must be taken into account 
during the development or review of regulatory proposals in order to avoid barriers to trade, 
including the promotion of regulatory co operation and incorporation by reference.  
4.4  The Canadian Agricultural Partnership Policy Framework  
4.14.   In 2017, federal, provincial and territorial ministers of agriculture came to an agreement on 
the key elements of the Canadian Agricultural Partnership , which  provides significant flexibility for 
provinces and territories to design and deliver programmes  that address local priorities while 
supporting shared national outcomes. The Canadian Agricultural Partnership  continues to position 
Canada as a world leader i n quality food, innovation and environmentally responsible agriculture 
production. It continues to focus on supporting innovation, competitiveness and market 
development .17 
4.5  Supply Management  
4.15.   Under Canada's domestic system of supply management, farmers manag e their production 
based on forecasts of demand for their products, attempting to strike a balance between supply and 
                                                
17 Source: Canadian Agricultural Partnership: http://www.agr.gc.ca/eng/about -us/key -departmental -
initiatives/canadian -agricultural -partnership/?id=1461767369849 . WT/TPR/G/389 • Canada  
 
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  demand that provides efficient producers with the opportunity to receive fair returns on their labour 
and investments and promotes stable farm incomes. Canada's domestic system of supply 
management applies to five areas of agriculture:  1) dairy; 2) chicken; 3) turkey; 4) eggs and egg 
products: and, 5) broiler hatching eggs and chicks.   
4.16.   By effectively managing production and farm gate prices,  shortages and costly surpluses are 
avoided, while providing consumers with a steady supply of high -quality products.  Under the supply 
management system, national and provincial marketing boards control the supply of farm gate 
products (e.g. milk) to meet the demand of the Canadian market using production quotas. 
Registered quota holders (producers) then obtain a price for their production that provides them 
with a fair return on their labour and investments.  Finally, agricultural tariff -rate-quotas ensure 
predictable import levels and thus maintain the efficacy of production and price controls for supply -
managed products.  
4.6  Sanitary and Phytosanitary Initiatives  
4.17.   Canada has undertaken significant changes during the review period to modernize its 
approach to the protection of human, animal, plant life and health. In this context, Canada is also 
modernizing its approach to maintain a robust approach to human, animal, and plant health and 
consumer protection, moving towards a more preventive and systems -based ap proach, which will 
allow regulated parties to more readily adapt to emerging risks and global and scientific trends. 
Canada is aiming to be more client focused, investing in digital tools, to make accessing information 
easier by offering industry electroni c services and information to comply with regulations, while still 
upholding strong sanitary and phytosanitary measures.  
(a) Plant and Animal Health Strategy for Canada : Since 2017, Canada has been implementing the 
Plant and Animal Health Strategy for Canada18, which will facilitate collaborative work on 
approaches and activities to modernize and improve prevention and management of risks to 
Canada's plant and animal resources.  
 
(b) Safe Food for Canadians Regulations : The Safe Food for Canadians Regulations came in to 
force on 15 January 2019. These new regulations consolidate 14 sets of food regulations, 
which will improve consistency of rules across all types of foods and between food businesses, 
reduce administrative burden, and enable food businesses to be innova tive while continuing 
to meet required regulatory outcomes.  
 
(c) Modernizing the Food and Drugs Act : Canada has also committed to modernizing its food 
regulatory framework under the Food and Drugs Act so that it can better respond to advances 
in science and food technology and address emerging health and safety issues. This work will 
focus on modernizing  existing regulations and developing new regulatory approaches to 
facilitate access to safe and innovative food products in a timely manner. Canada has also 
introduced new authorities for Marketing Authorizations and Incorporation by Reference tools 
to imp rove the rules pertaining to contaminants and other adulterating substances in foods.  
 
(d) Amendments to the Weed Seed Order : Canada's amendments to the Weed Seed Order came 
into force in November 2016, which are intended to reduce the number of weed species 
introduced to Canada through seeds.  
 
(e) Adoption of a Comparative Risk Model : Canada is also developing a risk management approach 
using the Comparative Risk Model (an analytical tool that uses data from external and 
government sources to compare risks), and t he Establishment -based Risk Assessment (ERA) 
Model, used to create risk profiles for Canadian food establishments and adjust their inspection 
frequencies accordingly to prioritize, plan and deliver regulatory activities more efficiently.  
 
                                                
18 Source: http://www.inspection.gc.ca/about -the-cfia/accountability/ partnerships -
pahs/eng/1490917160508/1490917161242 . WT/TPR/G/389 • Canada  
 
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  (f) ePhyto  Hub: Canad a has also contributed in -kind and financial resources to international 
standards setting bodies to support a range of activities, for example to the International Plant 
Protection Convention towards the development and implementation of the ePhyto Hub for  
electronic exchange of phytosanitary certificates by countries, to the FAO towards the 
provision of scientific advice to support the development of Codex Alimentarius Commission 
standards and towards World Organization for Animal Health (OIE) to support i ts activities as 
well as towards the revision of the chapters on Bovine Spongiform Encephalopathy and Avian 
Influenza.  
 
4.7  Canada's Enhanced Corporate Social Responsibility (CSR) Strategy  
4.18.   In November 2014, Canada updated its enhanced corporate social responsi bility strategy: 
Doing Business the Canadian Way: A Strategy to Advance Corporate Social Responsibility in 
Canada's Extractive Sector Abroad .19 The updated CSR Strategy clearly communicates the 
Government of Canada's expectation that Canadian companies demo nstrate Canadian values and 
operate to high standards in their work abroad.  
4.19.   The Strategy articulates Canada's expectation that all Canadian firms operating abroad 
respect all applicable laws, operate transparently, consult with host governments, and imple ment 
internationally -recognized CSR best practices. The four pillars of the strategy include: the promotion 
of CSR guidelines; strengthening local capacity and training for responsible business and anti -
corruption; fostering networks and partnerships to su pport responsible business; and voluntary 
mechanisms to help resolve disputes that may arise. The voluntary dispute resolution mechanisms 
include  Canada's National Contact Point for the OECD Guidelines for Multinational Enterprises  and 
the Canadian Ombudsp erson for Responsible Enterprise , announced in 2018 with an intended 
mandate to review allegations of human rights abuse arising from Canadian company operations 
abroad in the mining, oil and gas and garment sectors. This strategy complements trade 
diversi fication efforts and other Government of Canada policies, including those related to developing 
countries, the environment, gender equality, labour and transparency.  
4.8  Changes to Canada's Trade Remedy Regime  
4.20.   Since 2016, Canada has taken steps to modernize it s trade remedy legislation, the Special 
Import Measures Act . Changes include the introduction of two new proceedings administered by the 
Canada Border Services Agency: 1) scope proceedings, to determine if imported goods fall under 
the scope of an anti -dumping or countervailing measure; and, 2) anti -circumvention investigations, 
to extend anti -dumping and countervailing measures to additional products that are circumventing 
measures that are in force.  
4.21.   Other changes include: the Canada Border Services Agenc y and Canadian International Trade 
Tribunal now conduct expiry reviews closer to the expiry date of trade remedy measures, allowing 
the Canada Border Services Agency to assess whether certain sales should be disregarded due to a 
particular market situation ; permitting investigations to be terminated on an exporter basis in cases 
where there has been no dumping or subsidizing; and, granting unions participatory rights in 
investigations. Together these changes are aimed at strengthening Canada's trade remedy system 
by, inter alia: providing Canadian producers with a more rigorous response to unfair trade; better 
aligning Canada's trade remedy system with those of its major trading partners; and improving its 
transparency.  
4.9  Countermeasures on U.S. Steel and Alum inium Products  
4.22.   On 31 May 2018, the U.S. announced tariffs on imports of certain steel (25%) and aluminum 
(10%) products from Canada, known as a Section 232 measure. In response, on 1 July 2018, Canada 
imposed countermeasures against CAD 16.6 billion in imports of steel, aluminum, and other products 
from the U.S., representing the value of 2017 Canadian exports affected by the U.S. tariffs. These 
countermeasures will be immediately removed once the U.S. eliminates trade -restrictive measures 
against Canadi an steel and aluminum products.  
                                                
19 Source: Doing Business the Canadian Way: A Strategy to Advance Corporate Social Responsibility in 
Canada's Extractive Sector Abroad viewed at: http://www.international.gc.ca/trade -agreements -accords - 
commerciaux/topics -domaines/other -autre/csr -strat-rse.aspx ? WT/TPR/G/389 • Canada  
 
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  5  EXPORT DIVERSIFICATI ON AND TRADE PROMOTI ON 
5.1.  In recent years, Canada has worked to diversify its trade relationships through the negotiation 
and implementation of multilateral and bilateral trade agreements. Trade agreements, however, are 
only part of the equation, and must be accompanied by efforts to ensure that liberalized trade 
actually translates into increased flows of investment, goods, and services. During the review period, 
Canada has put in place strategies and progra mmes  to help businesses take advantage of its FTAs. 
These efforts are anchored by Canada's  Export Diversification Strategy , as well as specific initiatives 
aimed at addressing the particular trade development challenges faced by SMEs, women, and 
Indigenous  peoples. Canada's Trade Commissioner Service (TCS) plays a central role in delivering 
Canada's export development and trade promotion initiatives.  
5.1  Export Diversification Strategy  
5.2.  Announced in November 2018, Canada's Export Diversification Strategy  commits 
CAD 1.1 billion over six years, beginning in 2018 -2019, for initiatives to support the commercial 
success of Canadian businesses abroad, particularly in overseas markets. The Government of 
Canada recognizes that jobs in competitive, exporting sect ors tend to pay higher wages. The 
Government of Canada also recognizes that maximizing Canada's economic prosperity will require 
taking full advantage of growing opportunities in a wider range of export markets. The Government 
of Canada is therefore commit ted to increasing the number of Canadian firms engaged in 
international trade and  ensuring that they are diversifying exports to a wide variety of markets, 
especially those covered by Canada's FTAs.  
5.3.  The Strategy  aims to support an increase in Canada's ove rseas exports by 50% by 2025, 
particularly in sectors and markets with identified high -growth potential. The Strategy comprises 
three elements:  
• Accelerated investments in trade -related infrastructure (e.g., ports and trade 
transportation corridors);  
• Providing Canadian businesses with the right tools to develop and implement effective 
export plans; and,  
• Enhancing trade services for Canadian exporters.  
5.4.  In the 2018 Trade and Transportation Corridors Initiative, Canada launched a long -term federal 
commitment t o help ensure that Canada's trade -related transportation system provides a foundation 
for economic growth, supports the efficiency of global supply chains, and positions Canada as a 
target market for international investors. One key element of the initiati ve is the National Trade 
Corridors Fund, which supports investments in  ports, roads, railways, airports and intermodal 
facilities to help address transportation capacity constraints. Recognizing that these corridors are 
critical to Canada's efforts to dive rsify and grow its trade, the Export Diversification Strategy 
committed to accelerating the investment of CAD 773.9 million over five years to support the marine 
ports and transportation corridors that connect Canadians to global markets, and CAD 13.6 mill ion 
over three years to enhance the quality and accessibility of transport data.  
Supporting SMEs  
 
5.5.  SMEs represent 99% of all businesses in Canada, but only 11.7% of these SMEs are exporters. 
The Export Diversification Strategy  has committed new resources t o assist Canadian SMEs develop 
export strategies, build global partnerships, and gain skills and training needed for global trade. For 
instance, the Strategy  includes an investment of CAD 10 million over three years for export -
readiness programming for Can adian SMEs.  
5.2  Trade Commissioner Service  
5.6.  Canada's Trade Commissioner Service helps Canadian companies succeed in foreign markets 
by providing them with local market information, contacts, international business development 
advice, and problem -solving servic es. Trade Commissioners also work with Invest in Canada  to 
attract foreign investment into Canada.   WT/TPR/G/389 • Canada  
 
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  5.7.  The TCS administers several programmes  that have a proven track -record of delivering results 
for exporters. The Export Diversification  Strategy  allocates new resources to support the 
modernization and expansion of TCS services and programmes . Planned investments over the next 
five years include:  
• CAD 13.5 million to establish a peer -to-peer international business mentorship 
programme . 
• CAD 100 mil lion to reinforce CanExport  and related funding programmes . CanExport  
provides direct financial assistance to Canadian SMEs seeking to develop new export 
opportunities, especially in high -growth emerging markets. Since 2016, the programme  
has supported 1,3 00 projects in 90 countries, generating CAD 375 million in new exports.  
• CAD 17 million to expand the Canadian Technology Accelerator  (CTA) programme  to 
additional global innovation centres. This programme  supports technology companies in 
expanding in new competitive environments through an intensive multi -month 
programme . In four years, the CTA programme  has served 467 companies that reported 
1,868 new jobs, CAD 4 08 million in new capital, CAD 146 million in new revenue and 837 
strategic partnerships. Curr ently there are CTAs in the U.S. cities of New York, San 
Francisco, and Boston, with new programmes  rolling out in Hong Kong  China , Tokyo, 
Chinese Taipei, and Singapore.  
• CAD 25.4 million to enhance TCS services for businesses operating in areas such as dig ital, 
e-commerce, and intellectual property.  
• CAD 73.6 million to increase the number of Trade Commissioners available to serve 
Canadians both at home and abroad. The TCS has more than 1,000 trade professionals 
working in 161 cities across Canada and the wo rld. TCS clients export an average of 19.8% 
more in value, with 11.2% more product variety, to 24.8% more markets compared to 
non-clients. The TCS has nearly 15,000 active clients. The majority of these clients are 
SMEs, representing close to 20% of all Ca nadian SME exporters.  
• CAD 60 million to update TCS tools (e.g. enhanced digital presence and service delivery, 
analytics capabilities).  
5.8.  The TCS will also continue its  Business Women in International Trade  programme , which 
provides targeted support and ser vices to export -ready and export -active women -owned businesses 
to better exploit supplier -diversity and other global commercial opportunities. This programme  
connects women with expanded export services and opportunities, focussing on taking advantage 
of opportunities arising from new FTAs such as CETA and the CPTPP. Over the last ten years, over 
1,500 women -owned businesses have participated in Business Women in International Trade --led 
trade missions and initiatives.  
5.9.  In the fall of 2017, the TCS launched  a strategic review aimed at modernizing its services, in 
consultation with its clients, partners, front -line trade commissioners and employees around the 
world. Out of this review came four key priorities to be implemented over the next two years: 1) 
digitalizing service delivery and harnessing data for client success; 2) differentiation of services to 
serve more clients with impact; 3) simplifying the client support experience and allowing for 
seamless client navigation across federal and provincial partn ers; and, 4) creation of an agile TCS 
workforce and making the TCS the best place to work for international business professionals.  
5.3  Investment Promotion  
5.10.   During the review period, Canada created Invest in Canada, a new government agency that 
aims to increas e Canada's ability to attract and facilitate high -impact foreign direct investment and 
the jobs that come with it. Launched in March 2018, the agency aims to promote Canada as a 
premier investment destination and help accelerate global investment. Invest i n Canada works 
closely with Global Affairs Canada's Trade Commissioner Service to support foreign investors to 
establish or expand their operations in Canada.  WT/TPR/G/389 • Canada  
 
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  5.4  The International Education Strategy  
5.11.   The International Education Strategy, launched in 2014, has been successful in meeting its 
various objectives, including increasing the number of international students studying in Canada to 
more than 450,000 annually. Canada is currently formulating a new International Education 
Strategy, which will seek to better  align student recruitment with the country's labour market and 
immigration needs, as well as build skills and provide training that will help support Canada's 
international trade and increase global ties. It is anticipated that international education wil l continue 
to contribute to Canada's prosperity by promoting exports of educational services and goods, helping 
to address skills gaps and improving the competitiveness of the Canadian economy as well as help 
source countries. There are also direct benefit s to the presence of international students: in 2017,  
the nearly 492,385 international students in Canada spent over CAD 18.6 billion in communities 
across Canada and sustained over 20,230 Canadian jobs .20 
5.5  Other Government of Canada Program mes and Strategies that Promote Exports  
5.5.1   The Clean Growth Hub  
5.12.   In 2018, Canada launched the Clean Growth Hub, which is a new service model that co -locates 
representatives from different federal departments and agencies whose mandates are advanced by 
the adoptio n, innovation, and export of clean technology. This whole -of-government initiative serves 
as a focal point in supporting clean technology companies and projects. The Clean Growth Hub has 
helped over 780 clients in its first year of operation to identify th e federal programmes  and services 
most relevant to their needs, including support to exporters.  
5.5.2   Creative Export Strategy  
5.13.   Launched in June 2018, this strategy aims to maximize the export potential of Canadian 
creative industries by boosting export developme nt funding in existing Government of Canada 
programmes  to increase and strengthen the presence of Canadian creative industries abroad.  
5.5.3   Innovation and Skills Plan  
5.14.   In 2017, Canada developed a new microeconomic policy framework: The Innovation and Skills 
Plan, to attract investment and help businesses grow and become export oriented.21 The plan has 
three core aspects: 1) encouraging investments along the innovation continuum, from fundamental 
science, to commercial applications and new technology adoption, to a ccessing markets at home 
and abroad; 2) ensuring that Canadian industries have a pipeline of top talent to meet changing 
business needs due to digital transformation, by expanding and strengthening Canada's talent base 
through developing, attracting and re taining world -class talent; and, 3) helping companies at all 
stages to scale, grow and become export oriented. Under the plan, six sector -specific Economic 
Strategy Tables, chaired by industry leaders, were established to tackle bottlenecks and identify 
opportunities for economic growth. A September 2018 report emphasized the importance of export 
diversification, an agile regulatory environment, and a skilled workforce that can meet this demand. 
Canada supports these objectives and  is implementing them thro ugh initiatives such as the Export 
Diversification Strategy.  
5.6  Small -and Medium Sized Enterprises (SMEs)  
5.6.1   Background Information  
5.15.   SMEs, defined in Canada as a business having between 1 and 499 employees22, represent 
99.7% of all business and account for about 9 0% of private sector employment.23 As of 2017, only 
11.7% of SMEs exported goods or services, but accounted for almost 42% of the total value of 
Canada's goods exports.  
                                                
20 https://www.international.gc.ca/education/report -rapport/impact -2017/index.aspx?lang=eng . 
21 http://www.ic.gc.ca/eic/site/062.nsf/Intro . 
22 http://www.ic.gc.ca/eic/site/061.nsf/eng/h_03090.html#point2 -1. 
23 http://www.ic.gc.ca/eic/site/061.nsf/eng/h_03090.html#point2 -1. WT/TPR/G/389 • Canada  
 
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  5.16.   Canada works hard to ensure that its marketplace framework helps to reduce administrativ e 
burden and make it easier to do business, while providing necessary protections to consumers and 
businesses. Canadian regulators are required to consider small business needs in the design of 
regulations. If a new or amended regulation is expected to inc rease the administrative burden on 
business, regulators are required to offset from their existing regulations an equal amount of 
administrative burden cost on business.  
5.17.   The Government of Canada has established several domestic programmes  to help Canadian  
SMEs become more productive, more innovative and more export -oriented, in order to achieve long -
term growth of SMEs and create good jobs for Canadians. For example, in 2016 , the Government of 
Canada announced the Accelerated Growth Service, designed to su pport the growth of high -potential 
SMEs by helping them access key government  services  they need to  grow, such as financing, 
exporting, innovation and business advice.  
6  INCLUSIVE TRADE  
6.1.  Canada is actively promoting and pursuing an inclusive approach to trade as a core approach 
to address the concerns of a number of individuals that trade,  and globalization do not benefit 
everyone. Inclusive trade complements Canada's efforts to diversify trade, by seeking to ensure that 
more Canadians can take advantage of the opportunities that flow from trade and investment. 
Inclusive trade supports economic growth that is more broadly shared and maintains confidence in 
an open, rules -based trading syste m. 
6.2.  Recent efforts to advance an inclusive approach to trade include international engagement, 
both multilaterally and with partners in the context of negotiating bilateral and regional FTAs. 
Domestically, Canada is: seeking to put more Canadians at the hea rt of trade policy through broader 
consultations and transparency; and, expanding access for Canadians through inclusive content in 
trade agreements. For example, while labour and environmental provisions have formed an integral 
part of many of Canada's FT As since NAFTA, Canada has deepened these provisions in more recent 
agreements such as CPTPP, including by subjecting such provisions to the dispute -settlement 
mechanism of the Agreement.  In addition, Canada is advancing new provisions and chapters in its 
FTAs designed to improve the capacity of and conditions for underrepresented groups, in particular 
women, owners of SMEs and Indigenous peoples, to access and benefit from the opportunities 
created by trade agreements.  
6.1   Consultations and Transparency  
6.3.  Canad a is a parliamentary democracy that highly values the involvement of its diverse citizenry 
in identifying policy priorities.  Canada has several mechanisms for outreach, including formal  and 
informal  consultations that are transparent, accessible and accoun table. To better align Canadian 
trade policy priorities with the interests of all Canadians, Canada is ensuring that its trade policy 
positions are informed before and during negotiations via public consultations and ongoing dialogue. 
This includes engagin g with traditionally underrepresented groups; improving transparency 
throughout the negotiation process; promoting and communicating the benefits of trade and 
investment to Canadians; and, enhancing links, where appropriate, between trade and domestic 
socio-economic policy objectives that support job creation and growth.  
6.4.  Canada  takes a broad -based approach to  consultations in the development of its trade policy, 
including by actively eliciting  the views of the general public and a broad range of stakeholder s such 
as business, non -governmental organizations, labour groups, and academic and research 
communities. Canada makes a concerted effort to ensure that stakeholders that are traditionally 
underrepresented in international trade are also consulted on trade  policy topics (e.g. women, 
owners of SMEs) in order to seek their views and to promote a more inclusive understanding of 
Canada's trade interests and priorities.  
6.5.  Canada holds formal consultations with its citizens while exploring any potential trade 
negotiations, in order to ensure that the views of Canadians are taken on board as to whether to 
pursue new agreements. For example, in 2018, the Government of Canada undertook formal 
consultations on how to modernize its FIPA model to make its investment agre ements more 
inclusive, employing an innovative civic engagement platform called PlaceSpeak, which generated 
over 350 submissions from Canadians. Canada also holds formal consultations whenever there is a WT/TPR/G/389 • Canada  
 
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  significant policy shift or program me modernization foreseen: for example, Canada conducted 
consultations to inform the TCS strategic review in 2017.  
6.6.  The Government of Canada strives to create trade policy in close partnership with the 
governments of its provinces and territories. Canada remains committed  to an open and 
collaborative approach to international trade policy and negotiations, especially as many areas of 
commerce (e.g., agricultural policy) are under provincial or shared federal -provincial jurisdiction. 
Canada also consults with municipalities on questions relating to Canada's trade agreements 
and negotiations, including through a joint working group with the Canadian Federation of 
Municipalities.  
6.7.  While the Government of Canada has a long -standing practice of directly engaging with 
Indigenous peoples with regards to its trade policy and priorities, beginning in September 2017, 
Global Affairs Canada established a regular and ongoing dialogue with Ind igenous peoples through 
a dedicated trade -focussed Indigenous Working Group. The Working Group is comprised of National 
Indigenous Organizations, Modern Treaty partners, Indigenous groups and business associations, 
and certain legal and policy experts. The  collaborative efforts of this group have been important in 
the development and advancement of Indigenous -related provisions in Canada's trade and 
investment agreements, in particular the development of a dedicated Trade and Indigenous Peoples' 
Chapter tex t.  
6.8.  Canada  has an ongoing consultative framework that engages non -governmental stakeholders, 
including regular roundtables and meetings. The Minister of International Trade Diversification 
regularly meets with SMEs to hear about the biggest challenges face d by small companies in 
international commerce and holds regular calls with a Trade Advisory Council on a diverse range of 
trade policy files. Canada's Chief Negotiators for FTAs with Mercosur and the PA hold calls with 
registered stakeholders following ea ch negotiation round. Ad -hoc consultations are also held to 
address specific issues that arise.  
6.9.  Canada attaches great importance to the role of Parliamentarians in developing Canada's 
trade  agenda, primarily through the  work of parliamentary  committees. Th e Government of Canada 
tables international treaties, including FTAs, in the House of Commons for a period of 21 sitting -days 
before taking  steps to bring these treaties into force. This process allows for greater transparency 
ahead of parliamentary debate  and review of Canada's international agreements.  
6.10.   Finally, on the management of trade disputes, the Government of Canada seeks the 
participation of appropriate provinces and territories when Canada must respond  to a dispute 
involving provincial/territorial  programmes  or measures. Representatives of provinces and territories 
normally work closely with  the Government of Canada officials responsible for  the dispute.  
6.2  Advancing an Inclusive Approach in Trade Agreements  
6.2.1   Trade and Environment  
6.11.   Canada is committed t o ensuring mutual supportiveness between trade and environmental 
protection objectives and policies, including ensuring that trade partners do not lower environmental 
standards to promote trade or attract investment. Canada's current approach in its FTAs c onsists of 
seeking a dedicated Environment chapter with core commitments for Parties to maintain robust 
environmental governance. Canada also seeks to address key global environmental challenges in its 
FTAs through substantive commitments in a wide range o f areas, including sustainable trade in fish 
and forest products; illegal logging and illegal wildlife trade; and, conservation of species at risk.  
6.12.   The CPTPP is Canada's first FTA to include an Environment chapter that establishes a binding 
and enforceable  dispute resolution process to address compliance. The CPTPP also includes 
substantive commitments on an expanding range of environmental issues, such as illegal wildlife 
trade and illegal logging, sustainable fisheries management, species at risk, conserv ation of 
biological diversity, ozone -depleting substances, marine pollution, and working together to address 
climate change and combat invasive alien species.  
6.13.   Domestically, Canada also examines the links between trade and environmental protection, 
by unde rtaking mandatory Environmental Assessments to evaluate the environmental impact of its WT/TPR/G/389 • Canada  
 
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  trade negotiations and agreements. Conducting Environmental Assessments ensures mutually 
supportive trade and environmental outcomes, in accordance with the Cabinet Dir ective on the 
Environmental Assessment of Policy, Plan and Program Proposals . 24 Environmental Assessments are 
consulted fully throughout the negotiation and implementation phases with a working group 
consisting of leading Canadian academic and non -governmental experts.  
6.2.2   Trade and Labour  
6.14.   Canada addresses the labour dimensions of econom ic integration, and the promotion of 
respect for fundamental labour principles and rights, through the negotiation and implementation of 
comprehensive and enforceable labour provisions as part of its FTAs. Canada is pursuing an 
ambitious approach that refl ects Canada's high labour standards and the need to ensure a level -
playing field for Canadian workers and businesses. These provisions seek to improve working 
conditions and living standards in the signatory countries and to protect and enhance basic worke rs' 
rights. To date, Canada is signatory to Labour Agreements with Chile, Colombia, Costa Rica, 
Honduras, Israel, Jordan, Korea, Panama, Peru and Ukraine. In addition, both CETA and CPTPP 
include a labour chapter, and negotiations were recently completed f or a labour chapter as part of 
the CUSMA.  
6.15.   Canada's Labour Funding Program provides financial support for cooperative labour activities 
and technical assistance to partner countries to foster compliance with the commitments set out in 
labour agreements, inc luding those related to internationally recognized labour rights and principles.  
6.2.3   Trade and Gender  
6.16.   Trade liberalization has stimulated economic growth and prosperity around the world, 
including in Canada. Trade, however, affects people differently, based on  a wide range of factors, 
including gender. Canada believes that the link between trade and gender is an important issue for 
trade negotiators to consider as they negotiate FTAs.  
6.17.   Incorporating gender perspectives into macroeconomic policy, including trade  policy, is 
essential to pursuing inclusive and sustainable economic development and to achieving outcomes 
that are fairer and more beneficial for all. A 2017 study by the McKinley Institute has shown that 
advancing women's equality in Canada has the poten tial to add CAD 150 billion in incremental GDP 
in 2026, or a 0.6 % increase to annual GDP growth.  
6.18.   Gender equality and the avoidance of discrimination based on gender is one of many elements 
that Canada has pursued during trade negotiations in the past, nota bly via language regarding the 
elimination of employment discrimination in labour provisions.  
6.19.   Recently, Canada has sought to include gender considerations throughout its FTAs, notably 
through the inclusion of dedicated Trade and Gender chapters, where poss ible. Trade and Gender 
chapters acknowledge that trade is not gender neutral and that more can be done to advance 
women's economic empowerment and participation in international trade and investment. The 
chapter provisions provide a framework for Canada an d its partners to work together on important 
issues like women's entrepreneurship and the development of gender -focused indicators and 
analysis. Successes to date include Canada's modernized FTAs with Chile and Israel, both of which 
include a Trade and Gen der chapter.  
6.20.   Outside of a dedicated chapter, Canada is working on mainstreaming gender -responsive 
elements throughout its trade agreements, including in areas such as labour, cross -border trade in 
services, and investment. For example, this includes seekin g provisions in the cross -border trade in 
services chapter that prohibit gender -based discrimination related to licensing and professional 
qualification requirements and procedures.  
6.21.   Canada has actively championed the WTO Joint Declaration on Trade and Wome n's Economic 
Empowerment , which was endorsed in December 2017 by over 120 WTO members and observers. 
                                                
24 Source: Privy Council Office and Canadian Environmental Assessment Agency – Cabinet Directive for 
the Environmental Assessment of Policy, Plan, and Program Proposals: https://www.ceaa -
acee.gc.ca/default.asp?lang=en&n=B3186435 -1. WT/TPR/G/389 • Canada  
 
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  Canada is also supportive of the OECD's proposal to "genderify" the trade in value added (TiVA) 
dataset, which has been developed in tandem by the OECD and  WTO.  
6.2.4   Trade and SMEs  
6.22.   SMEs are taken into consideration in Canada's approach to negotiating trade agreements, by 
seeking to integrate SME -related provisions throughout FTAs, including in areas such as government 
procurement, origin procedures, trade facilit ation, intellectual property, investment, and e -
commerce. Canada's most recent FTAs include a dedicated SME chapter, where appropriate. 
Canada's first SME chapter is in the CPTPP; Canada has since added a dedicated SME chapter in its 
modernized agreement w ith Israel and in the CUSMA. At the first CETA Joint Commission meeting 
in September 2018, Canada and the EU also issued a recommendation on Trade and SMEs, which 
provides a framework for Canada and the EU to work together on ways to increase trade and 
investment opportunities under CETA for SMEs, including those owned by under -represented groups.  
6.2.5   Trade and Indigenous peoples  
6.23.   The Government of Canada is committed to a renewed relationship with Indigenous peoples 
in Canada, based on recognition of rights, re spect, cooperation, and partnership. Canada seeks to 
increase the opportunities of Indigenous peoples and Indigenous -owned businesses to further 
benefit from international trade and investment, while ensuring that constitutionally protected rights 
are resp ected through Indigenous -specific exceptions and reservations in FTAs designed to maintain 
policy flexibility.  
6.24.   Canada has always aimed to uphold its constitutional obligations toward Indigenous peoples 
by seeking specific exemptions, for example the abili ty to promote the use of Indigenous -owned 
businesses in government procurement. During the review period, Canada has expanded Indigenous 
peoples' inclusions in its FTAs, notably with the treatment of traditional knowledge. More specifically, 
the CPTPP is C anada's first FTA to include traditional knowledge language in the context of the 
Intellectual Property (IP) and General Provisions chapters, in addition to the Environment chapter.  
6.25.   Where appropriate, in its current FTA negotiations Canada is pursuing a de dicated Trade and 
Indigenous peoples chapter that seeks to acknowledge the importance of enhancing the ability of 
Indigenous peoples and Indigenous businesses to benefit from the opportunities that flow from 
trade and investment. The proposed chapter provi des a framework for FTA partners to work 
together to identify and address the barriers that Indigenous peoples face in international trade.  
7  CONCLUSION  
7.1.  International trade, and the rules -based international trading system in which it operates, are 
essential to Canada's economy. In the face of global uncertainty, the Government of Canada has 
prioritized pursuit of trade diversification and free trade in or der to drive continued global economic 
growth, rather than turning inward and retreating to protectionism. This approach is reflected in 
Canada's role on WTO reform as well as its successes in pursuing ambitious and comprehensive free 
trade agreements with  new partners.   
7.2.  Canada is committed to making its trade and investment more inclusive, ensuring that the 
benefits are more widely shared.  In this regard, it is working with Canadian businesses, including 
SMEs, to ensure that they can take advantages of the  bridges built through new trade and 
investment agreements. Canada is also committed to pursuing provisions in its trade agreements in 
areas including labour rights, the environment, SMEs, gender equality, and to increase opportunity 
for Indigenous peoples .  
7.3.  At the heart of Canada's trade policy is a desire to protect and build global confidence in the 
benefits of liberalized trade and the multilateral system that supports it, safeguarding the economic 
health of all trading nations.  
 
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