WORLD TRADE  
ORGANIZATION   
WT/TPR/M/246 
27 July 2011 
 (11-3760) 
Trade Policy Review Body 
20 and 22 June 2011  
 
 
 
TRADE POLICY REVIEW 
 
CANADA 
 
Record of the Meeting 
 
Chairperson:  H.E. Mr. Mario Matus (Chile) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF CANADA 4 
III. STATEMENT BY THE DISCUSSANT 8 
IV. STATEMENTS BY MEMBERS 12 V. REPLIES BY THE REPRESENTATIVE OF CANADA AND ADDITIONAL COMMENTS 48 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 53 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Canada are 
reproduced in document WT/TPR/M/246/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/246 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The ninth Trade Policy Review of Cana da was held on 20 and 22 June 2011.  
The Chairperson H.E. Mr. Mario Matus (Chile) we lcomed the delegation of Canada headed by 
Mr. Robert Ready, Director General of the Inte llectual Property and Services Trade Policy Bureau, 
Department of Foreign Affairs and International Trade, and the discussant, H.E. Mr. John Adank 
(New Zealand).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Canada was contained in document WT/TPR/G/246 
and that of the WTO Secretariat in WT/TPR/S/246. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegati on of Canada:  India;  Brazil;  Switzerland;  
Colombia;  China;  Mexico;  Costa Rica;  New Zeal and;  Australia;  Japan;  Thailand;  the United 
States;  Republic of Korea;  Chinese Taipei;  Pakistan ;  Singapore;  Chile;  Peru;  Indonesia;  Norway;  
the EU;  Dominican Republic;  Turkey;  and Paraguay. 
4. The following delegations submitted written questi ons after the two-weeks deadline:  Hong 
Kong, China;  Argentina;  Ecuador;  Trinidad and Tobago;  and South Africa. 
5. The Chairperson noted that he had considered  the reports prepared by Canada and the 
Secretariat.  He was pleased to note that, since its  last TPR in 2007, Cana da's economy had performed 
well.  Its financial sector had remained stable a nd it had weathered the global financial crisis without 
backsliding into protectionism.  Moreover, Canada 's unilateral trade liberalization initiative in the 
manufacturing sector, through the ongoing elimina tion of applied MFN tariffs on 1,755 lines of 
machinery, equipment and industrial inputs, demons trated that it remained committed to the WTO and 
open trade. 
6. Exceptions to Canada's generally liberal trade re gime were in agriculture (including sanitary 
and phytosanitary measures) in particular, and in other areas such as telecoms, foreign investment, 
government procurement, intellectual property righ ts, and financial services.  While Canada had 
launched a new reform initiative for streamlining dom estic regulation, the Secretariat Report noted 
that its market remained fragmented by barriers to internal trade and regulatory complexity.  He noted 
that Members would be interested in Canada's ne w government plans for improving its trade regimes 
in these areas. 
7. Overall, this Review provided Members an opportunity to exchange on certain systemic 
issues of interest to all policy makers.  These include :  the stability of Canada's financial sector despite 
the global financial crisis;  Canada's experience in implementing its Agreement on Internal Trade 
aimed at addressing the fragmentation of its internal market;  Canada's unilateral trade liberalization 
in response to increased global competition, and th e resulting effective protection;  Canada's dualistic 
agriculture consisting of export-oriented and inward-l ooking subsectors; restrictions on foreign direct 
investment, exemptions from competition rules, a nd State involvement in economic activities;  and 
the gradual shift of Canada's trade policy from tari ff towards non-tariff, including support, measures. WT/TPR/M/246 
Page 4  
 
  II. OPENING STATEMENT BY THE REPRESENTATIVE OF CANADA 
8. The WTO remains the cornerstone of Canada's trade policies and we consistently support the 
TPR process as a means of increasing transparency and strengthening respect for the WTO rules.  
While trade policy reviews have always been centra l to the WTO system, in recent years such peer 
reviews have played a key role in monitoring trade and trade measures taken by Members in the midst 
of an acute global financial and economic crisis.  Members have thus been discouraged from adopting 
protectionist measures that could have aggravated or prolonged the crisis. 
9. When the world financial crisis struck in late 2007, Canada, as indeed many other 
WTO Members, came up against major, unexpected  difficulties, such declining imports, loss of 
business and consumer confidence, a fall in produc tion and rising unemployment.  These problems 
were further compounded by the uncertainty as to how the world trading system would recover and 
when this would occur.  Despite this climate of  uncertainty, however, one thing soon became clear:  
recovery could only stem from an international trading system that had continued to promote 
predictability, transparency and non-discriminat ory measures during this period of severe global 
economic difficulties. 
10. Moreover, Canada's response to the world economic  crisis and the path it took in order to 
ensure full recovery bear witness to  the fact that its ability to react and firm commitment to certain 
fundamental principles could change the course of events.  In my address today, I would like to 
illustrate this point by drawing your attention to tw o specific points that came to light during this 
review period:  First of all, Canada has a sound and resilient economy;  and second, the 
Canadian system governing trade and investme nt is, and remains, open to the world. 
11. In all of its trade initiatives and negotiations, Ca nada is driven by the desire to increase its 
participation in global investment  and innovation, to secure competitive terms of access to global 
markets and to strengthen its intern ational trading networks.  The mu ltilateral, bilateral or unilateral 
initiatives taken by Canada during this revi ew period have not only increased domestic 
competitiveness and productivity - an achievement that  is highlighted in the Secretariat Report - but 
have also demonstrated our continuing commitment  to the WTO principles of trade liberalization and 
global market openness, which, ultimately, bene fit both Canada and its trading partners. 
12. International trade is critical to Canada's medium-sized economy as we are currently the 
world's thirteenth largest merchandise exporte r and eleven largest merchandise importer. The 
Canadian economy is both divers ified and outward-oriented. Indeed, aggregate two-way flows of 
goods and services trade were equivalent to approxima tely 61% of GDP in 2010. The services sector 
also plays an important role in the economy. Over all in 2010, services contributed to 72% of GDP and 
78% of employment in 2010.   
13. Although the global economic downturn negativ ely affected our trade and investment 
performance, Canada has recovered and is once again yielding positive results. For instance, Canadian 
exports of goods and services were up by 6.4% in 2010 compared to 2009 levels. Over the same 
period, imports increased by 13.4% reflecting a strong  growth in domestic demand in 2010. With the 
respect to investment, foreign direct investment  in Canada increased by $1.2 billion in 2010 over 
2009, indicating that FDI to Canada is on the rebou nd following declines in 2008 and 2009 due to the 
financial crisis and the global econom ic downturn. This increase also indicated that Canada continues 
to be perceived as a safe and attractive destination for foreign investment.  
14.
 As highlighted by the Secretariat in its Repor t, Canada weathered the severe global recession 
better than most other industrialized countries. Th e resilience exhibited by the Canadian economy has 
been due primarily to the strength of long-standing economic, fiscal, and monetary policies already in 
place, as well as the support provided by the Government of Canada's short-term  Economic Action  WT/TPR/M/246 
 Page 5 
 
 
  Plan.  The strength of our macroeconomic policies also  allowed us to continue to take concrete steps 
to encourage productivity and enhance domestic co mpetitiveness throughout the crisis – important 
objectives that are identified in Advantage Canada , our long-term plan to further strengthen the 
Canadian economy. Since our recovery began, Canada has more than recouped all of the lost jobs and 
losses in output and jobs experienced  during the economic downturn.  
15. And throughout the financial cris is, none of Canada's financial institutions failed or required 
public bailout, nor did any access available emerge ncy wholesale borrowing guarantees. Like other 
countries that provided economic support throughout the crisis, the Canadian government made up to 
$200 billion available through the Ex traordinary Financing Framework  to support lending to 
Canadian households and businesses. This support was offered on a commercial basis to protect 
taxpayers. Most of the Framework measures have now come to an end as credit conditions continue to 
improve. 
16. Indeed, the strength of Canada's financial s ector has received international accolades. The 
World Economic Forum has ranked Canada's banking system as the soundest in the world for three 
consecutive years. The balance Canada strikes be tween regulation and competition in its financial 
sector regulatory and supervisory framework has also  been highlighted as a model for global best 
practices, by the IMF in 2008 and the OECD in 2010. 
17. It is clear that the strong foundations that Canada has built have allowed Canadians and 
Canadian businesses and investors to prosper immensely at home. That said, as Canada's prosperity is 
tied to the continued strengthening of  the international trading system, it is in Canada's interest to not 
only build a solid foundation at home but to expa nd trade and investment opportunities abroad. As 
such, we will continue to lead by example when  it comes to resisting protectionism and promoting 
open markets. 
18. As was mentioned in the Secretariat's Report, Canada has taken concre te steps to further 
liberalize our trade and investment regimes despite the global economic and fina ncial crisis. Since our 
last Review in 2007, we have implemented several major unilateral initiatives. The most significant of 
these is the elimination of applied MFN tariffs on manufacturing inputs, machinery, and equipment. 
In the 2010 Budget, 1,374 tariff lines in the range of 2% to 15.5% were reduced to zero and an 
additional 381 tariff lines in that range will be elimin ated by 1 January 2015 at the latest. As a result 
of this liberalization, Canada's average applied MFN tariff decreased from 6.5% in 2006 to 5.4% in 
2010. Once this initiative has been completed, Cana da will become a tariff-free zone for industrial 
manufacturers – the only country in the G-20 to do so.  
19. Canada is open to foreign investment and we ha ve also taken steps to ensure greater market 
access for foreign investors. Several notable changes have been made to our foreign investment and 
telecommunications regimes during the period under review, including:  a commitment to raise the 
general review threshold under the Investment Canada Act for WTO Members from $299 million to 
$1billion over four years, with the exception of investments in the cultural sector;  eliminating sector-
specific review thresholds previously in place fo r transport services, financial services, and uranium 
production under the Investment Canada Act; an d removing foreign ownership restrictions on 
Canadian satellite carriers. 
20. Beyond these broad commitments, we continue to  look to specific areas where we can best 
contribute to international rule making. This ma y be seen, for example, in Canada's support for a 
strong, transparent, and science-based approach to the development of international rules and 
standards to help protect human, animal, or plant life or health, while minimizing negative impacts on 
trade.  WT/TPR/M/246 
Page 6  
 
  21. During the period under review, we have also ta ken steps to ensure an open, efficient and 
stable Canadian market for foreign businesses and investors. For instance, we have continued to 
strengthen our domestic Agreement on Internal Trade  during the period under review. Recent 
improvements include revised chapters on labour m obility, agricultural and food goods, and dispute 
resolution procedures.  
22. Finally, we are working to modernize Canadi an copyright laws for the digital age. These 
reforms will contribute to a well functioning digital economy by instilling trust and confidence in the 
online marketplace and in electronic commerce. As noted in the recent Speech  from the Throne on 3 
June, the Government will introduce and seek swif t passage of copyright reform legislation that 
balances the needs of both creators and users. 
23. Like so many other strong trade-dependent nations, Canada understands the clear link 
between the success of our businesses and investors abroad, and the creation of jobs and prosperity at home. That's why, inspired by our forward-looking Global Commerce Strategy  and our plan to 
increase engagement in the Americas and Asia, we ar e pursuing a robust trade and investment agenda 
with our key trading partners. This agenda capitalizes on a variety of trade policy instruments, 
including:  Free Trade Agreements, Foreign Inv estment Promotion and Protection Agreements, 
Science and Technology Cooperation Agre ements, and Air Services Agreements. 
24. Canada's ambitious trade agenda is deliveri ng results – since our last Review we have 
concluded five new free trade agreem ents, two of these have entered into force and the other three are 
in the process of ratification. In addition, build ing on the success of existing trade agreements, our 
Prime Minister Stephen Harper and President Ob ama recently announced the creation of the Beyond 
the Border Working Group . This represents an important step forward to establish a new, long-term 
partnership between our two countries that will, inter alia, accelerate the movement of people and 
goods and improve competitiveness. Moreover, th e recently established Canada-U.S. Regulatory 
Cooperation Council  will provide further opportunities to prom ote economic growth between our two 
countries through increased regulatory transparency and coordination. 
25. This increased engagement with trading partners has played a key role in Canada's recovery 
from the global recession, by allowing us to obt ain greater opportunities for Canadian businesses, 
both at home and abroad. Canada's regional and bila teral trade and investment agreements, which are 
consistent with WTO rules and obligations, comp lement our commitment to the multilateral trading 
system. 
26. As stated earlier, the WTO remains the cornerstone  of Canada's trade policy, which is why we 
have long supported an ambitious and balanced outcome to the D oha Round negotiations.  However, 
we must be realistic about what may be achievable before the end of the year. We must not lose sight 
of the progress that we have made since the la unch of the Round now a decade ago. Canada is 
engaged in discussions at all levels on the way forward.  
27. In Canada's case, our commitment to recognizing the interests of developing countries, both 
within and outside of the Doha negotiations, is supported by the recent launch of our Strategy for 
Sustainable Economic Growth in 2010, which focuses on building economic foundations, growing 
businesses, and investing in people. Our programs in support of Aid for Trade are a key component of this new Strategy. For instance, the Canadian In ternational Development Agency recently allocated 
$40 million over five years (from fiscal year 200 9/2010 to fiscal year 2013/2014) through our 
Multilateral Aid for Trade Initiative. This Initia tive aims to enhance developing countries' 
participation in the global economy, particularly in  the areas of trade fac ilitation and agricultural 
standards with a strong emphasis on gender equality. Even though the recent financial crisis placed 
additional pressure on Government  spending, Canada did not reduce its Aid for Trade funding.  WT/TPR/M/246 
 Page 7 
 
 
  Indeed, our contributions actually increased by $2 00 million to reach a total of $715 million in fiscal 
year 2010/2011. 
28. Finally, whether we are pursuing our interests multilaterally or bilaterally, we believe that 
openness does not just mean market  access; it also means transpar ency and predictability in the 
development of trade policies and practices.  In Canada, we value the inclusion of our diverse 
citizenry in the policy-making process. The federa l government regularly consults with Canadian 
stakeholders on its ongoing trade agenda, inviting Canadians to submit their views on trade related 
initiatives. We have a longstanding practice of federa l-provincial-territorial c onsultation with regard 
to international trade and investment, which promot es information-sharing and ensures that Canadian 
positions are informed by provincial and territorial views. The Government of Canada also attaches 
great importance to including parliamentarians in  developing Canada's trade agenda, including 
through the process of tabling international treatie s in the House of Commons for a period of 21 
sitting days before taking steps to bring these treaties into force. 
29. In all of its trade initiatives and negotiations, Ca nada is driven by the desire to increase its 
participation in global investment  and innovation, to secure competitive terms of access to global 
markets and to strengthen its intern ational trading networks.  The mu ltilateral, bilateral or unilateral 
initiatives taken by Canada during this revi ew period have not only increased domestic 
competitiveness and productivity - an achievement that  is highlighted in the Secretariat Report - but 
have also demonstrated our continuing commitment  to the WTO principles of trade liberalization and 
global market openness, which, ultimately, bene fit both Canada and its trading partners. 
30. To conclude, I am glad to say that the recent and severe economic and financial crisis 
notwithstanding, the Canadian economy is strong , resilient and open to trade and investment.  
However, there will undoubtedly be further challe nges and difficult choices to be made in times to 
come.  Although Canada continues to forcefully resist protectionism, we do realize that our 
prosperity, present and future, larg ely depends on the abilit y of other WTO Members to do the same.  
As the international trading system continues to grow and evolve, we must all remain committed, 
within this Organization, to the principles of predictability, transparency, non-discrimination and 
liberalization, if we are to ensure that the gl obal economy remains open to international trade and 
investment. 
 WT/TPR/M/246 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR. JOHN ADANK (NEW ZEALAND)) 
31. Before I comment on some of the key developm ents in Canada's trade policy over the last 
four years, I'd like to first note some of the f acts about Canada that provide a backdrop for our 
discussions. Here are some of the basics:  Canada is the world's second largest country by total area if 
you include its surrounding waters, and the fourth la rgest country by land area.  It has the largest 
coastline in the world.  Yet with around 34 m illion people its population density of around three 
people per square kilometre is among the lowest in th e world.  At the same time Canada has some of 
the highest per capita immigration rates in the world, with expectations of around 250,000 new permanent residents in 2011.  In 2007, one in fi ve Canadians were foreign-born, with 60% of new 
immigrants from Asia, all of whom  list neither English nor French – Canada's two official languages 
– as their mother tongue.  An article in the Marc h 9 2010 "Globe and Mail" suggests that by 2031 one 
in three Canadians will belong to a "visible minority  group".  So all of this makes for a dynamic, 
internationally-connected and multicultural society.     
32. The last century has seen Canada evolve from a largely rural economy to a highly diversified 
one in which services continuing on an upward tre nd and now comprise nearly 80% of the economy, 
with manufacturing showing some decline to 12%, mining including oil and gas extraction 4.4% and 
agriculture, forestry and fishing 2.2%.  Canada stands as the world's second largest producer of hydro-electric energy, the third largest of natural gas and th e sixth largest of oil. This enviable resource base 
contributes to make it  one of the world's top trad ing nations, as well as one of the wealthiest, with a 
per capita GDP of around $C 47000 in 2010.  The close relationship with the U.S. which still accounts 
for 78% of merchandise export trade and 60% of me rchandise import trade, is further underlined by 
the fact that 80% of all Canadians live within 150km of the U.S. border. 
33. In terms of its political organi sation, Canada is a Federation composed of ten provinces and 
three territories.  This has important implications for both national and international trade issues, and I 
will comment further on this aspect later. 
34. In preparing for today's discussion, I was also conscious that you, Chair, were the discussant 
at Canada's last Trade Policy Review in 2007. At th at time you utilised the theme of the old Western 
movie "The Good, the Bad and the Ugly" as a means of dividing up your presentation.  I don't propose to follow suit.  But I found reading over the notes of  the 2007 Trade Policy Review, in addition to all 
of the excellent material prepared for this year's Review, extremely useful in highlighting both the key 
developments in Canadian trade policy during the last four years as well as some of the longstanding challenges and queries that Members have identified for Canada that have been a feature of earlier 
reviews and which remain current. 
35. As all of us here are very aware, the global recession of the last few years have been difficult 
for many WTO Members.  The Secretariat Report notab ly highlights that,  while Canadian exports of 
goods and services suffered during this period,  Ca nada has managed to come through to the other 
side relatively unscathed, as a result of the st rong macroeconomic fundamentals underlying the 
economy, assisted by a significant stimulus pack age under the Economic Action Plan amounting to 
around $C 60billion.    
36. In the period since the last Review in 2007, Canada has taken a number of steps of interest to 
WTO Members and, in particular, some notable trade and investment liberalisation measures.  These include the following.  First, in the area of invest ment Canada applies a "net benefit review" process 
and I note that the general threshold for review a pplicable to investors from WTO Members is being 
increased from $C299 million in 2010 to $C1billion over a four year period.  This was also 
accompanied with a decision to increase the $C 5million sector-specific review threshold for 
investments for transportation services, financial services and uranium production, and also required 
Ministerial justification of decisions to disallow investments.  I note that these measures were  WT/TPR/M/246 
 Page 9 
 
 
  accompanied by a new national security review pr ocess, and it is evident from questions that 
Members are interested in gaining further clarific ation of the nature of this new process and the 
considerations that will be taken into acc ount by the Minister in this area.    
37. Second, a significant development in Canada's regime for imports has also seen 1,374 tariff 
lines relating to manufacturing inputs, machinery, and equipment, reduced to zero, in an effort to 
assist the competitiveness of the manufacturing sector at a time when the strong Canadian dollar and 
increased competition has had an adverse impact.  As  a result of these measures, Canada's averaged 
applied MFN tariff has decreased to 5.4% in 2010, co mpared to the 6.5% figure from 2006. Canada in 
its country report notes that these new unilateral me asures will position Canada as a tariff-free zone 
for industrial manufacturers, "a first among the G-20" .  The Secretariat Report highlights, however, 
that this has also resulted in an increase in tariff escalation resulting in higher effective rates of 
effective protection being delivered for the food and beverage, textiles and appa rel, and chemicals and 
plastics sectors. 
38. I would also note here Canada's decision to abolish the 25% tariff on general cargo vessels 
and tankers as well as ferries of more than 129 m long, in an effort to strengthen the competitiveness 
in its shipping industry. 
39. While in 2007 you pointed out as discussant Chai r that Canada was the inventor of anti-
dumping measures, among other things, it is noteworth y that during the review period there has been 
a drop recourse to anti-dumping measures, with 36 in place in June 2010, compared with the 48 in 
2006 or the high point – I'm sure some would say th e low point - of 91 measures in place at the time 
of the 2003 TPRM.  I am sure this will be welc omed by WTO Members today, although at the same 
time the Secretariat Report notes that the number of measures in place for longer than five years 
increased from 22 to 29 measures between 2006 and 2010. 
40. As a former Chair of the WTO Committee on Tech nical Barriers to Trade I am aware of the 
constructive role that Canada played in the af termath of the Uruguay Round in seeking to advance 
understanding and promote best practice in the area of  technical regulations.  And this has been an 
area of further focus by Canada in recent time s with a Cabinet Directive adopted in 2007 on 
Streamlining Regulation which seeks to promote – at the Federal level - adherence to international 
standards, as well as recognition of equivalency fo r technical regulations of other members where 
they can be shown to meet Canada's own objectives.    The way in which this Directive is being 
implemented and its practical effect in addressing  concerns with some of the specific regulatory 
measures identified by members in their questions is a subject that members may wish to explore 
further.  And the relevance of this Directive to regulatory action at the sub- Federal level would be a 
further useful point for clarification.     
41. Turning to the services sector, in the tel ecommunications area the government, concerned 
about possible weak competition in this area reflec ted in high prices and low penetration of wireless 
services has promoted greater competition by making radio spectrum available for new entrants.  We 
are also advised that further consultations are al so underway on some other FDI restrictions in the 
telecommunications sector.   
42. In the area of development assistance Canada re mains a significant international partner for 
developing countries, and has in this context pursue d a range of Aid for Trade initiatives, including its 
Sustainable Economic Growth Strategy and its Aid Effectiveness agenda.  This funding amounted to 
$C513 million over 2008/09.  I note that the Sustai nable Economic Growth strategy also includes 
significant support for trade facilitation and agricultu ral standards aimed at enhancing developing 
countries participation in the global economy.   WT/TPR/M/246 
Page 10  
 
  43. These are significant developments, carrying in some cases new benefits for WTO Members.  
And I am sure Canada will be commended for the efforts they have made on some of these specific 
issues since the 2007 Review.  
44. At the same time it is clear from the background materials and the questions of Members, that 
a number of issues highlighted from earlier trade polic y reviews persist in relation to certain sectors, 
sub-sectors, as well in relation to number of specific measures.  
45. In terms of specific measures, a number of concerns have been raised about alleged 
inconsistencies with GATT/WTO national treatment obl igations.  I note here the concerns raised 
about the excise duty reductions for Canadian prod uced beer, as well as the exemption from excise for 
wine produced with Canadian-grown grapes, as well  as the lower rates of excise duties that wine 
produced in Quebec are subject to.  In addition ther e remain longstanding restrictions to the import of 
second-hand cars with the exception of those produced in the United States.  
46. There are also a couple of other issues that I would like to focus on in a little more detail.  
First, while services and manufacturing make up th e bulk of Canada's economy agriculture continues 
to play an important role, with Canada constituti ng in 2009 the fourth largest exporter and the sixth 
largest importer of agricultural products. 
47. Canada's active participation in the Doha nego tiations on agriculture is highlighted in its 
Country Report.  The Secretariat Report also highlights that Canada has made significant improvements over the past two decades in reforming its agricultural sector.  And in 2007-2009 the trend of producers becoming less dependent on  border measures and government support has 
continued, particularly given the higher pr ices for many agricultural commodities.   
48. Yet, when measured against Canada's performance  in other areas, levels of protection within 
the agriculture sector remain significant.  Canada's  relatively low averaged tariff of 5.4% overall, 
compares with the current average a pplied agricultural tariff of 22.5%.  
49. The supply managed sectors of poultry, eggs a nd dairy, within agriculture provide a much 
starker contrast to this, with a peak ad valorem equivalent of 532.2% for dr ied egg albumin, and with 
the applied MFN dairy tariff averaging 237.3% in 2010.  All of this highlights the significant tariff 
protection within Canada's supply management syst em sectors as a result of the combination of 
administered prices, high tariffs and restrictive import quotas. 
50. In addition to this, Canada continues to provi de export subsidies for certain supply managed 
products at levels close to the maximum permitte d Uruguay Round export subs idy budgetary outlays 
for those products.  This contrasts not only with Ca nada's own practice with regard to 7 out of the 
11 products for which it has export subsidy commit ments, but also the more general trend of 
subsidising Members to "constrain and refrain" notwithstanding the scope for export subsidies 
permitted under their Ur uguay Round commitments. 
51. This protection around the suppl y managed sectors, while provided within the framework of 
its WTO obligations, obviously impacts on Canada's  negotiating positions within the WTO but also 
has a flow on effect to Canada's  broader trade policy.   This in cludes FTAs, in which supply managed 
products appear to be generally excluded from lib eralisation commitments, and with tariff quotas that 
appear to overlap with WTO quotas.  It also ha s implications for duty free and quota free access for 
LDCs where Canada's unilateral commitment commenda bly extends to cover 99% of all tariff lines, 
but at the same time excludes the 1% that includes lines encompassed by the supply managed sectors.  
52. Against this background, I note that the summary to the Secretariat Report highlights the 
scope for reform of Canada's "highly protected supply-managed sub-sectors to make them more  WT/TPR/M/246 
 Page 11 
 
 
  market-oriented" and points to the benefits that Canada and Canadian cons umers would garner from 
this. 
53. A second cross-cutting issue pervading the Secret ariat Report and Members questions is the 
ongoing fragmentation of the domestic market as a resu lt of internal and regulatory trade barriers at 
the sub-Federal level and in some cases the lack of cl arity about their interface with federal measures.   
The historical context here is important to r ecognise:  Following on from confederation in 1867, the 
formerly separate British colonies that made up Cana da continued their export orientation to global 
markets and particularly the U.S., with inter-Canada trade only being of secondary interest.   
54. Canada's Agreement on Internal Trade, which was concluded in 1995 after NAFTA, has as its 
objective to "reduce and eliminate, to the extent possible, barriers to the free movement of persons, 
goods, services and investment in Canada, and to est ablish an open, efficient and stable domestic 
market". There have been some developments in th is area, with Five Prot ocols of Amendment since 
2007 covering aspects of labour mobility, government  procurement, agricultural trade and dispute 
resolution.  While further developments here are to be encouraged, there is a sense that there remain a 
complex range of differing sub-Fede ral requirements. Ongoing differences in trade regulation at the 
sub-Federal level will of course impact on Canadians wanting to trade across provincial lines, just as 
they will impact on foreign suppliers wanting to access more than one provincial market with the 
same product or service.   And there are broader qu estions about the impact of the diversity of sub-
Federal regulation for Canada's overall competitiveness and productivity.    
55. Accordingly, I think it would be useful to hear  more about the ongoing efforts at sub-Federal 
and Federal levels to address these concerns, rec ognising that these are as much concerns for 
Canadians as they are for WTO Members trading in to each of the component parts of Canada.  
56. In summary, the period under review has been a difficult one for Canada, as well as other 
WTO Members given the global recession, but Canada 's economy has proved resilient.  It has also 
been marked by a number of new policies by Canada that have opene d up new opportunities for 
Members in Canada's market in trade in goods an d services, as well as seen ch anges to the investment 
review framework for WTO Members.  At the same time, it remains clear, as was apparent in 
previous reviews, there are some broader challenges that would need to be addressed in agriculture in 
particular if greater trade policy coherence is to be achieved. WT/TPR/M/246 
Page 12  
 
  IV. STATEMENTS BY MEMBERS 
MEXICO 
 
57. Canada's economy, as indeed the economies of other countries, was affected by the economic 
crisis that struck in late 2008 and 2009.  Tha nks to its sound macroeconom ic policy and stimulus 
package under the Economic Action Plan, Canada nonetheless succeeded in weathering the crisis 
relatively well.  By mid-June 2010, it had rec overed the losses in output experienced during the 
recession.  It is encouraging to note that recent estimates by the IMF and the Canadian authorities 
converge on approximately 2.5% GDP growth in 2011 and that no major inflationary pressures are 
expected. 
58. As a result of the economic crisis, a number of governments found themselves under 
considerable pressure to adopt protectionist measures.   Like Mexico, Canada was nevertheless able to 
withstand such pressure and instead proceeded with unilateral liberalization geared towards enhancing 
competitiveness.  We commend Canada for elimin ating customs duties on over 1,300 tariff lines 
relating to manufacturing inputs, and machinery and equipment.  As a result of unilateral 
liberalization, Canada's simple average applied MFN tariff decreased from 6.5% to 5.4% in 2010.  We 
welcome such measures, as indeed any other meas ures taken to eliminate barriers and facilitate 
international trade in times of crisis. 
59. We should point out that agriculture is still the most protected sector of the 
Canadian economy.  The average bound MFN tariff, whic h is very similar to the applied tariff - with 
an applied rate of 22.5% and a bound rate of 22.6% - is given in Ta bles III.1 and III.3 of the 
Secretariat Report.  In the World Trade Profiles publication, however, the bound MFN tariff given for 
agriculture in Canada is 15.4%, with an applie d rate of 10.7%.  We would like to understand why 
there is such a major discrepancy between one publi cation and the other.  This is important because if 
the average applied rate is  22.5%, Canada would rank 130
th among the countries recorded in 
ascending order by the WTO, meaning that only 20 countries have an agricultural tariff higher than 
Canada's.  Moreover, certain agricultural products affect the average tariff levels, such as dairy 
products with a rate close to 240%. 
60. As in most high-income countries, the services sector is the largest, contributing around 80% 
of Canada's GDP.  As already mentioned, Canada  has modified its investment regime and has 
liberalized some activities in the telecommunications se ctor.  It should nevertheless be noted that the 
competent authorities have not taken into account the recommendations issued by the Competition 
Policy Review Panel on cultural polici es.  We hope that Canada's fina l offer in the Doha Development 
Round will reflect the changes to the investment re gime and the legal regime governing services, and 
that Canada will undertake commitments in sector s that have traditionally remained unbound. 
61. As regards technical barriers to trade, Canada  has not notified the Bill C-32 amendment to the 
Tobacco Act.  Although we share the goal of prot ecting human health, we have already stated our 
concern as to whether the measure may be more r estrictive than necessary to fulfil the legitimate 
objective pursued, as well as the lack of transpar ency of and failure to notify the measure. 
62. On the other hand, we commend the Canadian Government for the measures it has taken to 
reduce and eliminate barriers to the free movement of goods, persons and services within Canada.  In 
this regard, the amendments to the Agreement on Internal Trade increasing labour mobility, reducing 
the number of discriminatory technical and health  standards and strengthening dispute settlement 
procedures are worthy of mention.  There is still ample scope for improvement, however, particularly 
in areas that affect Canada's international trade.  WT/TPR/M/246 
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  63. Lastly, despite the Canadian Government's effort s to strengthen its competition legislation, it 
should be emphasized that privileges and immunities are still being granted to State-owned entities, in 
particular Crown corporations, which have m onopolies or exclusive rights over some economic 
activities and are also exempt from certain ta xes.  We would like to know whether the 
Canadian Government plans to  abolish such privileges. 
64. I would like to say a word about the trade rela tionship between Mexico and Canada.  Canada 
is one of my country's key trading partners.  Sin ce NAFTA entered into effect, the total volume of 
trade between the two countries has grown at an annual average of 12%. 
65. Canada has become one of the top investors in  Mexico, ranking as the fourth largest foreign 
investor in the country in 2010.  It has also become Mexico's third largest export market and is our 
second largest supplier on the American continent.  Me xico, for its part, was Canada's fourth largest 
supplier in 2010.  This confirms my country's  strong and long-standing trade relationship with 
Canada. 
THAILAND 
66. Over decades, Thailand has established and enjo yed a strong trade and economic relationship 
with Canada covering a gamut of different asp ects of commerce and investment, such as the 
Agreement of Economic Cooperation, the Foreign I nvestment Promotion and Protection Agreement, 
and the Mutual Recognition Agreement on the Equivale nce of Fish Inspection and Control System.   
Canada is ranked second among our North American trading partners and ha s been our important 
importer and exporter from that region. 
67. We recognize the Canadian strong macroeconomic  fundamentals, which have helped Canada 
overcome the global recession expeditiously well.  Th e fact remains in the Report that by June 2010, 
the Canadian economy has practically recovere d from the GDP and employment losses during the 
recession without resorting to trade protectionism. 
68. We are also pleased to see that over the review period, Canada has eliminated customs duties 
of over 1,300 tariff lines, which largely put an emphasis on manufacturing inputs and machinery and 
equipment.  However, Thailand still has some con cerns over Canada's high ta riffs and strict border 
measures, as well as domestic programs, for agricultural products. 
69. Thailand has submitted advance written questions  to the Canadian delegation, touching 
mainly the issues on agricultural programs and tax ra tes.  For example, we would like to know how 
Canada's tariff quotas under preferential agreem ents reconcile with its WTO tariff-quota 
commitments.  We would also like to learn more  whether the supports and responsibilities of the 
federal and provincial/territorial  governments under Canada's agri cultural domestic support programs 
have overlapped.  Furthermore, our authorities have  questions on the excise duty tax rates of Canadian 
domestically brewed beer and Canadian wine.  Thailand thanks Canada for the response to our 
questions in advance. We are looking forward to receiving clarifications on the said issues and to 
gaining a better understanding of the Canadian system. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
70. Since its last Review in 2007, Canada's economy,  like so many others, has been hit by the 
severe global financial and economic crisis.  We ar e pleased to note that Canada has weathered the 
storm of the global recession rather well, and without resorting to trade measures aimed at further protecting its domestic production.  Thanks partly to its strong macr oeconomic fundamentals, by June 
2010, Canada had recovered virtua lly all of the GDP and employment losses suffered during the 
recession - the best performance, in this respect, among all of the G7 countries.   WT/TPR/M/246 
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  71. Canada has long been one of the strongest advo cates of trade liberalization, and it is good to 
see that it continues to put the WTO at the centre of  its trade policy agenda, while at the same time 
actively pursuing regional and bilateral free trade agre ements.  We share Canada's stated view that 
achieving an ambitious and balanced DDA agreement is in the interest of all Members.   Failure to 
conclude the Round could undermine the whole rules- based multilateral trading system, and Canada's 
participation in, and contributions to, the DDA negotia tions are widely recognized.   At this critical 
juncture, we are certainly looking to Members like  Canada to continue their leadership role in 
bridging the differences between major players, with  the hope that soon all Members will be able to 
enjoy the fruits of the outcome that th is DDA has promised to deliver.    
72. Since its last Review, it is evident that Canada  has been making efforts to further improve its 
trading regime, which we welcome.  These impr ovements include the unilateral elimination of 
customs duties on over 1,500 tariff lines, removi ng barriers within Canada and enhancing the 
competitive environment.  Nevertheless, there ma y be some areas where further improvements in 
terms of openness and predictability could be made.  For example, as mentioned in the Secretariat 
Report Canada's investment regime remains relativel y complex, and quite a few of its services sectors 
are still subject to various restrictions.  Also, in a nother area, we would simply comment that while it 
is of course the right of every Member to reso rt to anti-dumping measures, we believe that the 
prolonged application of these measures is harmful to both domestic consumers and foreign producers 
alike.  
73. Our own bilateral trading and economic rela tionship with Canada has been a long and 
important one.  Our close cooperation ranges from tr ade to investment, from agriculture to industrial 
innovation.  We are, in fact, Canada's fourth largest  trading partner in Asia.  In 2010, the volume of 
imports and exports between us rebounded by more than 30%, recouping more than was lost during 
the global recession.  Having said that, the fact that Canada continues to exclude us from the list of 
beneficiaries of its General Preferential Tariff (GPT) programme means our products are prevented 
from competing on a level playing field in the Ca nadian market versus those from countries of a 
similar development level.   We appreciate Canada 's general openness to trade and its commitment to 
reducing barriers.  We sincerely ur ge Canada to once again review th is particular practice and rectify 
the level of playing field for our exports in the Canadian market.              
74. This Trade Policy Review has provided us w ith a valuable opportunity to get a better 
understanding of Canada's trade policies and practi ces, and its regulatory measures.  In the written 
questions submitted by my delegation in advance, we have already id entified certain policy areas in 
which we have a particular interest.  These include the Global Commerce Strategy, the Major Projects 
Management Office, investment regime, the e ffects of implementing FTAs on Canada's, etc. 
PAKISTAN 
75. Canada also bore the brunt of global economic recession during the period under review.  It 
responded to this challenge by di splaying resilience to the crisis , and soon recouped losses in output 
and recovery of jobs lost.  Undoubtedly, Cana da's strong macroeconomic fundamentals and its 
successful market economy enabled it to manage a prompt recovery, duly supported by its Economic 
Action Plan.  Canada emerged as the best  performer amongst the developed world. 
76. During the period under review, Canada elimin ated customs duties on 1,374 tariff lines and 
brought down its simple average applied MFN ta riff on manufactured products from 6.5% in 2006 to 
5.4% in 2010.  Its long term economic strategy, Advantage Canada, and Global Commerce Strategy 
have augmented competitiveness of the economy and the ability to access global markets through 
trade and investment.  There has been a decline in the number of contingency measures, and the 
competition regime has been further improved.  Canada's outward-oriented trade regime and 
commitment to bring down barriers to trade through bilateral, regiona l and multilateral trade  WT/TPR/M/246 
 Page 15 
 
 
  agreements has been the under pinning of Canada's  strong trade performance.  The combination of 
natural resources with the use of technology and goo d marketing tools had led this economy to pave 
the way for sustainable growth. 
77. Canada has been a leading player at the WT O.  Its previous Ambassador to the WTO Don 
Stephenson was the NAMA Chair while Ambassador John Gero recently completed his tenure as the 
Chair of the General Council where he made substa ntial contribution in advancing the work of the 
WTO.  Canada has also been active in negotiatio ns and has tabled many substantive proposals in 
various committees and Bodies.  Simultaneously, we  have witnessed the shift in the trade policy 
regime of Canada with emphasis on RTAs.  Canada  signed five FTAs during the period under review 
while it is pursuing free trade negotiations with more than 40 countries.  We expect that in spite of 
heightened activity on RTAs, would not distract Canada from the multilateral field. 
78. I would like to point out that there are still areas which require attention.  Tariffs remain high 
on certain agricultural products, along with tariff es calation in certain cases.  Beside the area of 
coverage of the Competition Act needs to be enha nced.  In certain cases, provinces and territories 
have regulatory autonomy.  This shared federal-provincial competencies, sometimes create 
complication for trade.  Further coherence and simplification in this area may be required. 
79. Pakistan and Canada enjoy strong economic relati onships.  Pakistan's main exports to Canada 
are textiles and apparel, followed by rice, sports  equipment and jewellery.  Our main imports from 
Canada include machinery and parts, iron and steel  manufacturers, and chemicals. The two-way trade, 
after experiencing a decline during 2008-09, has r esumed growth.  Average tariff applied to our 
exports is higher than the devel oped and diversified economies.  A ccordingly, balance of bilateral 
trade continues in favour of Canada. 
SINGAPORE 
80. As economies that are highly dependent on intern ational trade, Singapore and Canada share a 
common conviction in free trade and open markets.  Canada, in its policy statement, noted that 
"international commerce is the lifeblood of its econo my".  This is a point of view which Singapore 
very much relates to.  This shared commitment pe rhaps also explains why Canada and Singapore have 
such a long history of working together on the different platforms of international trade, such as the WTO, APEC, and at ASEAN, where Canada is a dialogue partner. 
81. On the bilateral front, Singapore and Canada en joy a robust economic relationship.  Over the 
last decade, out total trade flows have seen a st eady increase, which peaked at around US$4 billion in 
2009 before falling to about US$3 billion last year du e to a sharp decrease in Singapore's exports to 
Canada.  Canada's exports to Singapore saw an incr ease of over 90% in the past decade to reach over 
US$1 billion in 2010, making us Canada's sec ond largest export market in ASEAN.    
82. Similarly, our bilateral services trade flows also show an overall increase, driven by an almost 
20% growth of services exports from Singapore to Canada  in 2009.  Our investment relations, too, are 
healthy.  Between 2003 and 2009, the number of Canadian companies in Singapore almost doubled to 
more than 400 with total investme nt reaching US$2.4 billion in 2009. 
83. Singapore and Canada reached a nother milestone in June 2010, where our respective customs 
agencies signed a Mutual Recognition Agreement on supply chain security, which will help to 
reinforce, facilitate, and secure th e healthy trade flows between us. 
84. Canada has one of the highest levels of ec onomic freedom in the world.  We commend 
Canada for its sound policies that allowed it to  weather the recent global recession well, without 
resorting to trade measures to further protect domestic production.  We also recognise Canada's WT/TPR/M/246 
Page 16  
 
  further liberalisation of its trade and investment  regime, despite the globa l economic and financial 
crisis.  Like Canada, Singapore believes in the im portance of keeping markets open, and that freer 
trade contributes to growth.  Indeed, we look forw ard to the continued evolution of Canada's trade 
policies that will further reflect its status as an advocate of global free trade.  
85. In this light, we are pleased to note Canada's  unilateral liberalisation of its tariffs on 
manufactured goods, including the elimination of tari ffs relating to certain manufacturing inputs, and 
machinery and equipment.  We hope to see more unila teral liberalisation in the high tariffs relating to 
certain agricultural products, and an improvement in tariff escalation in certain industries such as food 
and beverages, textiles and apparel, chemicals a nd plastics, and other manufacturing products.  We 
are also pleased to see some liberalisation of the fore ign investment regime in recent years, as well as 
in specific sectors.  Singapore encourages Canada in these efforts.  We note, particularly, that in the 
telecommunications sector, Canada initiated public consultations on its investment restrictions on 
facilities-based telecom carriers.  We look forward to  the results of these consultations.  While Canada 
has made notable efforts to improve its investment policies, the regime remains relatively complex, involving a net benefit test.  Increased transparency  in the assessment would make it more facilitative 
for businesses, and further increase Canada's a ttractiveness as an investment destination. 
86. As one of the most open and competitive econom ies in the world, Canada has clearly been 
committed to continually reduce trade barriers and e xpand opportunities for commerce.  In this light, 
we trust that the questions, suggestions, and feedback  that Members have provided at this review will 
be received in the constructive spir it that they have been offered. 
87. Before I conclude, I would like to take this opportunity to underscore Singapore's 
appreciation for the positive contribution that Ca nada has made to the WTO and the Doha Round, 
particularly in its constructive contribution in development assistance to developing countries and 
LDCs.  My delegation has a close working relatio nship with Ambassador Gero and his team in 
Geneva, and we look forward to continuous collaboration in our shared commitment to the WTO and 
the multilateral trading system. 
TURKEY 
88. First of all, we must acknowledge the important  role Canada plays at the WTO platform.  
Canada is a strong and committed supporter of th e multilateral system.  We always appreciate 
Canada's efforts to find fair solutions to most of  the issues on the table.  This approach has been 
further strengthened with continuous, very active a nd leading role played by the delegation of Canada 
under the leadership of Ambassador Gero in almost every field of the DDA negotiations.  He is the 
biggest contribution of Canada to the WTO and DDA negotiations. 
89. At the outset, let me express that we are very pleased to work with Canada as our partner at a 
number of international forums like G-20, we are ve ry impressed with the solution oriented approach 
Canada undertakes in these organizations. 
90. On bilateral front, we have sound trade and ec onomic relations with Ca nada.  Our bilateral 
relations were further strengthene d by new initiatives like direct f lights between Toronto and Istanbul 
and the signing of an agreement to avoid double taxation in 2009. 
91. Our bilateral trade almost doubled in the last five years, reaching almost US$2 billion in 
2008.  Nevertheless, the crisis had its toll on the b ilateral trade and we are still trying to reach the pre 
crisis level with regard to the trade volume.  Our trade volume was around US$1.5 billion in 2010.  
Currently Canadian investments in Turkey stood at about US$1.1 billion in 2009.   In this respect, we 
are also proud that one of the oldest foreign i nvestors in Turkey is a Canadian company with 
operations in manufacturing of the telecom equipment.  WT/TPR/M/246 
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  92. Canada has a diversified, str ong and stable economy.  This was proven recently with the brief 
recession period Canada experienced during the economic  crisis in 2008.  It is also commendable that 
Canada did not resort to any protectionist measures.  It is clear that Canada's stimulus measures which 
were one of the biggest among the advanced economies paid off well in tackling the crisis.  In this 
respect, we will be very much pl eased to hear from Canada any add itional explanation on the current 
status of the stimulus package. 
93. The Secretariat's Report points out that Canada  has been lagging behind the other developed 
countries in terms of productivity.  In fact, this  was cited as one of the few problems in the economy 
in the previous Report as well.  In this sense, it will be interesting to learn what further changes 
Canada is planning to introduce if any, to improve the dynamism of the economic structure. 
94. Furthermore, we are also surprised to observe r that Canada has a complex foreign direct 
investment regime which includes certain concepts  like a net benefit analysis.  This represents a 
contrast to the overall liberal economic structure in Canada. 
95. As pointed out by many other delegations, Ca nada has an open trade regime, and it places a 
very high value on the transparency.  It is commendabl e that even in the crisis period, this policy has 
not changed.  In this respect, we must also point out that Canada is one of the few countries who 
offered quite substantial market access opportunities for the least developed countries by eliminating 
customs duties for quite a large number of lines.  Sim ilarly, we also noted the decrease in the average 
tariff rates in general.   
96. Having said this, with regard to Canadian trad e regime and policies, we also would like to 
raise several points.  First, despite its low a nd steadily decreasing share in one of the largest 
economies of the world, and elimination of cust oms duties on close to 1,400 lines since the last 
review, textiles and clothing items are still subject to th e higher levels of tariffs.   We hope that Canada 
still considers reduction of tariffs in these sectors in the near future. 
97. Secondly, we also welcome the decrease in the use of trade remedies as well as no use of the 
safeguard measures since the last Review.  However, it is worrisome that almost half of such remedies 
have been applied to steel industries, including some originating from Turkey. 
98. Thirdly, while Canada is actively pursuing bila teral agreements with several countries, we 
certainly hope that they will also enable us to examine in detail their free trade agreement with the 
EFTA members by providing soon their notification to the relevant WTO committee. 
99. Fourthly, we would like to once again raise our concern regarding Canadian legislation 
"Cracking Down on Tobacco Marketing Aimed at Yout h Act".  Canada, by this measure prohibits the 
use of various additives in certain tobacco product s.  This decision directly targets the blended 
tobacco products as additives are used in these products.  Howe ver, some additives are essential 
components of blended products and do not give a ch aracterizing flavour, like chocolate or other 
fruits aroma, to the product.  Any restriction on these additives will in practice be a prohibition to blended products. 
100. As this kind of tobacco products either blende d or non-blended are lik e products, any measure 
that will result in prohibiting blended tobacco produc ts only will be called discriminatory.  As 98% of 
the Canadian market covered by non-blended tobacco  products, then any measure targeting to protect 
youth from tobacco use should not only target bl ended tobacco products.  Otherwise, it will be 
discriminatory.  Furthermore, there are no scien tific evidences that th ese additives are attracting 
youth.  Similarly, there are no evidence that blended tobacco products are more attractive to youth 
that the non-blended ones.  To sum up, we believe  that the measure is not proportionate with its 
objective and contrary to Canada's commitments under the TBT Agreement as it is more trade-WT/TPR/M/246 
Page 18  
 
  restrictive than necessary.  Thus, we would lik e once again to recommend the Canadian authorities 
reconsider their decisions and amend this measure based on their TBT commitments. 
COLOMBIA 
 
101. During a period marked by one of the most severe crises suffered by trade and the global 
economy, Canada is a prime example of a country's  ability to achieve swift economic recovery while 
maintaining and increasing trade openness.  Followi ng a significant fall in GDP of 2.5% in 2009, 
production rose by 3.1% in 2010, w ith a 2.3% increase estimated for 2011, which are high figures 
among developed countries.  Canada's recovery ca n be explained by the sound fundamentals of its 
economy, such as low inflation, moderate indebtedness and control of fiscal accounts, as well as an 
effective economic support package implemented in a timely manner by the Government.  
Nevertheless, sluggish productivity represents a ch allenge in terms of sustained economic growth. 
102. In the trade policy sphere, we are pleased to note greater openness.  This is reflected by the 
unilateral elimination of tariffs on 1,374 lines relating to inputs, machinery and equipment.  Progress 
has also been made in liberalizing FDI by remo ving foreign ownership restrictions on satellite 
carriers, raising the thresholds for the benefit review  of direct acquisitions and eliminating the review 
threshold for transportation services, fi nancial services and uranium production. 
103. Canada is also actively promoting trade, inv estment and services agreements, such as those 
recently entered into with Peru, th e European Free Trade Association, Jordan, Panama and Colombia.  
In the WTO, the active role played by Canada w ith a view to strengthening the multilateral trading 
system and achieving completion of the Doha Round is  both recognized and underscored.  We hope to 
be able to continue counting on Canada as a firm ally in this process, particularly in the present 
circumstances, which require our b est efforts and the highest degree of responsibility in support of the 
Organization and the Doha Round. 
104. However, Canada still applies measures that restrict trade and discourage competition.  
Imports in the dairy and poultry sectors are subject to  tariff quotas with very high out-of-quota tariffs.  
Domestic production of and domestic trade in such pr oducts is still regulated and export subsidies are 
provided.  This stands out conspicuously in an economy as open as Canada's.  Hence a necessary 
question is whether the Canadian Government intend s to undertake reforms aimed at liberalizing these 
sectors. 
105. Furthermore, the new Investment Act enables the Minister of Industry to review any foreign 
investment on national security grounds, which crea tes uncertainty for investors.  Another cause for 
concern is that a number of tax breaks apply ex clusively to Canadian companies, such as those 
engaged in the production and/or mark eting of fuels, beer and wine. 
106. In 2008, Canada established a new agri cultural policy framework known as "Growing 
Forward", the main components of which include a suite of business risk management programmes designed to partially compensate producers for inco me losses resulting from low prices, increases in 
production costs, and natural disasters, inter alia .  In this connection, the Canadian authorities should 
be urged to update their domestic support notifica tions as soon as possible, since the last notification 
received was for calendar year 2005.  It should be  recalled that notifications are an important 
instrument in ensuring transpar ency of information regarding Members' programmes and allowing a 
more precise and comprehensive evaluation of  trade policy over the period under review. 
107. At the bilateral level, trade between Colomb ia and Canada exceeded U$1.3 billion in 2010 
and has been steadily trending upwards in recent y ears.  Agricultural products, hydrocarbons, basic 
industry, machinery and equipment are among the lead ing trade items.  Colombia is a major recipient 
of Canadian investment - especially non-petrol eum investment - which rose dramatically from  WT/TPR/M/246 
 Page 19 
 
 
  US$8 million in 2007 to US$163 million in 2010.  Canada 's investment was mainly destined for the 
telecommunications and energy sectors.  We hope to expand this trend with the early entry into force 
of the bilateral agreement. 
PARAGUAY 
 108. According to the WTO Secretariat Report, the Canadian economy is generally open and 
remained so throughout the crisis, since the Canadi an Government did not resort to protectionist 
measures during that period.  Canada's strongly di versified economy, as the Report points out, is an 
example to be followed insofar as diversification c ontributes to overall development in benefit of the 
country's population. 
109. Canada participates actively in the WTO, bot h in the Doha Round negotiations and in the 
day-to-day work of the Organization.  A point of no te is Canada's use of the dispute settlement system 
and the continuing presence of Canadian panellists in  the various disputes, which bear witness to a 
long-term, ongoing plan to safeguard Canada's international trade in terests through the use of legal 
tools. 
110. In this connection, the Report mentions that  one of the objectives of the Global Commerce 
Strategy is to double the number of foreign investme nt promotion and protection agreements within a 
period of five years.  It would therefore be interesting to know which specific sectors are to be 
covered by these investment promotion and prot ection agreements and Canada's experience in 
implementing them. 
INDIA 
111. We note with appreciation that the Canadian  economy has weathered the global recession 
well due to its strong macroeconomic fundamentals. In 2010, Canada's GDP growth stood at 3.071% - 
the highest it had been since 2004.  We have read  a recent report of the Bank of Canada Governor 
pointing out that the challenges the Canadian ec onomy has with competitiveness is a product of two 
factors: first, the persistently strong Canadian  dollar and secondly, the relatively poor productivity 
performance. We would be interested to know the steps Canada proposes to take to overcome these 
challenges. 
112. Canada's primary sector, namely the logging  and oil industries, remains important 
contributors to the economy. Canada's manufactur ing industry is also highly advanced – the 
automobile industry for example attracts major i nvestments. The services sector also plays an 
important role in the economy.  Much of Canada 's exports have been derived from agriculture. 
Canada is one of the world's largest suppliers of  agricultural products such  as lentils, linseed, mustard 
seed, peas etc. 
113. We note with concern from the Secretariat Re port that Canada continues to maintain 
restrictions on FDI in telecommunications, fishing, mining, air transport, cultural business broadcasting and film distribution.  We note that Canada has been a pioneer and plays an active role 
in trade and investment liberalisation. We hope that Canada will take steps to remove these 
restrictions to promote investment, competition a nd protect and promote its consumers' interests. 
114. India and Canada have longstandi ng bilateral relationship based on shared democratic values, 
multicultural, multi-ethnic and multi-religious nature  of the societies and strong people-to-people 
contact. Canada is home to over 1.1 million Indi an community contributing in socioeconomic 
development of Canada and in small part to the plurality of political landscape of Canada. WT/TPR/M/246 
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  115. The bilateral relationship is supported by a wide range of bilateral agreements in fields such 
as agriculture, energy and air services. The relatio nship in recent years has expanded with several 
institutional arrangements in place including an an nual Trade Policy Consultations. Bilateral trade 
between India and Canada is a balanced one and showed a marginal increase up from US$3.5 billion 
in 2007 to US$4 billion in 2010. In 2010, India's exports to Canada were up by 17.8% and imports 
registered an increase of 5.9% over 2009. We hop e concerted efforts of the two governments and 
business community on both sides, the bilate ral trade will register a further increase.  
116. Major items for export from India include ga rments, gems and jewellery, pharmaceuticals, 
fine chemicals, manufacture metals, marine product, engineering goods, auto parts, marble and granite 
etc. The major items of import from Canada in cludes pulses, fertilizers, newsprint, ores and 
concentrates, wheat, communication equipment, pulp and waste paper, iron and steel, non- ferrous 
metals etc. 
117. The two way direct investment has showed a stea dy growth during the last five years. Indian 
investment in Canada has increased ten-fold in the last decade. From a meagre U$S163 million from 
India in Canada in 2005, it jumped to C$ 2.8 b illion by 2009. On the other hand, the Canadian 
investment in India has marginally increased from C$ 304 million in 2005 to C$ 572 million in 2009.  
During the first official visit to India of the Canadian PM in November 2009 to India, the two Prime Ministers had set a trade target of $ 15 b illion annually in the next five years.  
118. Recently a number of high level official visits from both sides have taken place. The first 
Annual Ministerial Dialogue of Trade Ministers was held in Ottawa in September 2010 along with CEOs Roundtable. The Roundtable has now been upgr aded to a CEOs Forum. India and Canada are 
currently engaged in exploring the possibility of entering into a Comprehens ive Economic Partnership 
Agreement. 
119. We have given some questions to the delegati on of Canada concerning trade and investment 
issues need to be addressed to achieve full potenti al of India-Canada part nership. We thank the 
delegation of Canada for providing answers to our questions and these will be studied with care. I just 
wish to highlight few of them.  Indian IT-pro fessionals are facing problems in obtaining visa for 
Canada due to cancellation of National Pilot Progra mme. We urge Canada to restore the IT category 
visa and allow free movement of specialised knowle dge/managerial category pe rsons. Indian spices 
exporters continue to face difficulty in comply ing with Canadian labelling requirements as product 
often include very long list of ingredients. We  expect that Canada would favourably consider 
suggestions made in the past to allow for inclusion of a leaflet inside the packaging as an alternative 
to the present cumbersome and costly method mandated. 
120. India has proposed to Canada to enter into number of agreements on Social Security, 
accessing the Traditional Knowledge Digital Librar y of India and equivalence agreement to 
recognition of certificate issued by  Export Inspection Council of India. We hope that Canada would 
expedite responses for finalising these agreements to  further facilitate trade and investment between 
our two countries.  
BRAZIL 
121. As pointed out by the Report of the Secretariat,  Canada's trade regime is significantly open.  
Its simple average applied MFN tariff has decreased si nce the last review. It is worth mentioning that, 
in the context of the recent international econom ic crisis, Canada has not only refrained from 
increasing the level of protection of its market, but h as further enhanced its mostly liberal regime.  In 
a very significant move, more than 1,000 lines on in puts and capital goods had their tariffs reduced to 
zero during the latest years to improve the country's competitiveness.  WT/TPR/M/246 
 Page 21 
 
 
  122. Nevertheless, the overall picture reveals incons istencies, as some sectors in Canada are far 
from enjoying a liberal regime.  We  are all familiar with the dualism in  Canadian agriculture:  a very 
competitive exporting sector and the supply managed i ndustries.  We find therein the complete array 
of protection instruments:  tariff-rate quotas, tariff escalation, tariff peaks, non- ad valorem  tariffs, 
special safeguards, production quotas, and last but not least, export subsidies – still in use at very high 
rates in relation to Uruguay Round commitments.  We note that since 2006 no major changes have 
taken place in terms of reform of Canadian agricultu re.  Even the decline in the level of support to 
agriculture is to be assigned to market devel opments associated with the increase in prices of 
agricultural commodities.  With the necessary refo rms, Canada – already the fourth largest 
agricultural exporter – will be in a positi on to enhance even further its position. 
123. With regard to the regulato ry environment, I note with appreciation that Canada has 
continuously improved its practices in this area.  The Cabinet Directive on Streamlining Regulation, 
adopted in 2007, contains important elements that se ek to ensure that regulations are relevant and do 
not impose unnecessary burden on comp anies.  The emphasis on the use of international standards as 
a basis for regulations is to be particularly valued. 
124. Turning to bilateral relations between Brazil and Canada, in 2008, the bilateral trade volume 
had a significant decrease of more than 30% due to  the global economic crisis.  However, at the end 
of 2010, bilateral trade had already recovered its pre- crisis level.  But it still falls way short of its 
potential, although Brazil is the largest trade partne r in the Hemisphere after NAFTA members.  The 
two-way trade flow is just 5% higher than it was in 2006. 
125. A development to be welcome in our bilate ral economic relations during the period under 
review refers to the dynamism in the area of mutu al direct investments.  In 2009, Canadian direct 
investment in Brazil reached US$11.4 billion, while in  the same year, Brazil's direct investment in 
Canada amounted to US$14.8 billi on.  A great part of these Brazilian investments in Canada refer to 
acquisitions by the Brazilian mining company Vale in 2006. 
126. Despite their differences in terms of developm ent level, Canada and Brazil share several 
commonalities.  Both have an enormous territory , a multicultural population, and abundant natural 
resources.  Both have experienced significant impr ovements in terms of trade especially due to the 
higher prices of their main exports of commodities.  Both have had to face the challenges posed by the 
over valuation of their currency.  Also our two co untries economies' have displayed market resilience 
in light of the economic crisis.  After the cont raction in 2009, both countries rebounded fast, despite 
difficulties affecting their traditional partners.  Th is positive response to the downturn rests on solid 
macroeconomic fundamentals.  Among them, the stab ility of the financial system based on extensive 
and competent regulation that enabled the bankin g system to keep sound balance sheets and to 
maintain a degree of administration of the capitals account. 
127. In brief, cooperation seems to be the key word in the relations between Brazil and Canada.  In 
this respect, as all are aware, Brazil and Canada fo r years sparred in the Dis pute Settlement Body over 
export credits for civil aircraft.  After finding a bilateral compromise, we worked in tandem  to 
promote the establishment of the OECD Aircraft Sect or Understand, which has just been reviewed.  In 
this very dynamic market, our countries now face a renewed challenge to establish a leveled playing 
field concerning the so-called launch aid.  With  the confidence built over time and engagement from 
both parties, we will be able to work together to clear this hurdle. 
128. Finally, being among the ten largest trade part ners, with trade responding for around 60% of 
its GDP, Canada – just like Brazil – is a committed Member of this Organisation, attaching great 
value to the rules-based multilateral trading sy stem.  Canada's unques tioned contribution and 
participation is an essential element in our effort to  find suitable solutions to the difficult situation the 
Doha Round finds itself at this juncture.     WT/TPR/M/246 
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  SWITZERLAND 
129. My remarks will cover three points: our bilate ral economic relations, the Canadian economy, 
and its trade policy.  First, our bilateral relati ons.  Switzerland and Canada  have important and long-
standing economic relations. Since the last Trade Policy Review, we significantly strengthened our 
ties establishing free trade relations in 2009 together  with our EFTA partners. Canada is Switzerland's 
fifth most important trading partner in the world with almost US$4 billion in 2010 in total bilateral 
trade. Pharmaceuticals and machines account for the majority of the traded goods. 
130. On the investment side, Switzerland has a historically strong position in Canada and has 
recently become the fourth most important investor. Swiss firms are well represented in fields such as 
pharmaceuticals, food, insurance and financial servi ces. Canadian firms are also very active in 
Switzerland, particularly in industrial fields such as aluminium and transportation equipment. 
131. Second, the Canadian economy. Canada has weat hered the global financial crisis remarkably 
well. This did not just happen by coincidence. Ca nada benefits from a di versified economy with, in 
particular, a strong world position for natural resour ces and a large services sector. Nevertheless the 
declining manufacturing sector ought to be of c oncern. Although the budget deficit is high by 
historical standards, public finances remain sound with a low public debt/GDP ratio. During the 
financial crisis, the banking system proved stable and solid and the stimulus program was effective. 
We note with satisfaction that Canada resisted taking protectionist measures. 
132. The slow recovery of the U.S., by far its largest  trading partner, affects growth perspectives 
and is a source of uncertainty. In addition, the st rength of the Canadian dollar is a challenge for 
exporters in particular owing to  the low productivity. But, with commodity prices likely to fall from 
recent heights, the appreciation of the Canadian dolla r could come to halt. We consider it particularly 
important that the economy is not overheating so th at inflationary pressures remain under control. 
133. Third, Canada's trade policy: First and fore most, with two-way commercial flows accounting 
for 60% of GDP, Canada is a very open economy. Switzerland congratulates Canada for its initiative 
to eliminate on a unilateral basis a significant number of customs duties. Referring to imports' 
security, we support the risk assessment approach  of Canada's Advance Commercial Information 
program. We welcome the drop in the number of c ontingency measures taken by Canada during the 
period under review. This will certainly encourage st ructural adjustment in particular in the steel 
industry and contribute to reduce the costs of bette r integrating Canadian companies in global supply 
chains. Based on our own experience, we strongly be lieve that with a lesser reliance upon contingency 
measures, the development in Canada of higher  value-added industries could benefit from both 
cheaper and better imported inputs. This could clea rly represent a useful contribution to Canada's 
efforts toward improving the productivity of its economy and the competitiveness of its non-mining 
sector. 
134. With regard to government procurement, Switzerland welcomes the opening-up of the 
procurement markets of the Canadian provinces with in the framework of the GPA. In the area of 
intellectual property, we took note with great interest  of the modifications in the patent law to increase 
legal certainty and reduce the administrative burden for applicants as well of copyright-related efforts 
to strengthen deterrence and enforcement. Changes in  the insurance sector are also important for us 
whereby foreign insurers will no longer need fede ral approval to insure Canadian risks outside 
Canada. 
135. 
Before I conclude, I would like to call on a ll Members to work hard toward reaching 
meaningful results for the Doha Round negotiations  still in 2011. Failure to deliver a substantive 
outcome by the end of 2011 would leave us exposed to the great danger of an erosion of the existing rules-based world-trade system and the risk of a fu rther resurgence of protectionist measures. In this  WT/TPR/M/246 
 Page 23 
 
 
  context, we very much welcome Canada's active pa rticipation and positive role in the WTO and look 
forward to further cooperate with Canada in the WTO to promote an open, rules-based world trading 
system. Like Canada, Switzerland considers the WTO as being the cornerstone of its trade policy and remains deeply committed to finally bringing th e Doha Development Age nda negotiations to a 
successful conclusion.  
CHINA 
136. China notes with pleasure that during the re view period Canada weathered the global 
recession better than most other industrialized count ries and has achieved a so lid recovery.  Although 
the Canadian economy suffered huge losses in 2009, it  had virtually recovered the losses of GDP and 
employment by June 2010.  This relatively stro ng performance reflects Canada's proper responses to 
the crisis, as well as its continuous efforts to improve the productivity and the competitiveness of its 
economy, including through trade and investment li beralization.  As the Secretariat Report noted, 
Canada refrained resorting to trade measures to further protect domestic production.  China 
appreciates this effort of Canada and has a shar ed position in fighting against trade protectionism. 
137. We also appreciate Canada's firm commitment to a rules-based and a transparent multilateral 
trading system, as well as to the successful conclusion of the Doha Development Agenda 
negotiations.  Canada has been an active and important player both in the context of the regular work 
of the WTO and in the DDA negotia tions.  Its solid record of notif ication, various submissions in 
different DDA negotiating groups and outstanding contribution to Aid for Trade Program is clear 
proof to this effect.  In this regard, we would like to commend Ambassador John Gero and his strong 
team in Geneva.  I would like to further express our  sincere appreciations to Ambassador Gero, for his 
successful leadership and effective work as Chair of the General Council last year. 
138. China and Canada are important trading partne rs, which China being Canada's second largest 
trading partner.  The period under review h as witnessed a sound performance of our bilateral 
economic and trade ties despite the impact of the global recession.  Our statistics showed a bilateral 
trade volume of US$37.1 billion in 2010, representing a 24.8% growth over the previous year.  In the 
first quarter of 2011, the bilateral trade volume ro se 46.2% year-on-year and reached US$10.8 billion.  
This remarkable performance proved the complement ary and inter-dependent aspect of our bilateral 
economic relationship, and in  June 2010 both sides agreed to ta rget bilateral trade for US$60 billion 
by 2015. 
139. Canada's trade regime is generally open.  Howe ver, there is still room for improvement.  For 
instance, as noted in the Secretariat Report, alt hough Canada has eliminated customs duties on 1,374 
tariff lines over the review period, tariff remain s very high on certain agricultural products, 
particularly dairy products with MFN out-of-quo ta tariff averaging 237. 3%.  Canada still has a 
dualistic agricultural sector.  In addition, excise ta x reductions or exemptions for local producers of 
beer and wine give rise to National Treatment conc erns.  According to the Secretariat Report, some 
programs to support the generation of renewable energies include local content requirements. 
140. Besides I would like to highlight two issues that ar e raised by our industries.  First of all, we 
would like to refer to Canada's trade remedy measur es.  Canada's legislation maintains relatively low 
thresholds for the initiation of trade remedy measures.   In addition, most countervailing investigations 
were conducted in conjunction with anti-dumping e nquiries, resulting in "double remedies" which is 
contrary to WTO rules.  As the Secretariat Re port points out, during the review period, the CBSA 
initiated 18 anti-dumping measures, out of which eight target Chinese products, while regarding 
countervailing measures the ratio is 6 out of 7.  China remains most affected by Canada's anti-
dumping and countervailing measures in force.  Chin a hopes Canada will make every effort to avoid 
using trade remedy measures for protectionist purposes, or in a discriminatory manner, so as to create 
a fair environment for competition among traders. WT/TPR/M/246 
Page 24  
 
  141. Secondly, Chinese enterprises remain concerned about Canada's relativ ely opaque foreign 
direct investment regime, involving a net benef it test for major acquisitions, sector-specific FDI 
restrictions, as well as national security reviews, whic h creates uncertainty for investors.  China notes 
with pleasure that there has been some liberalizati on of the FDI regime over the review period.  China 
encourages Canada to make further efforts towards this direction with a view to facilitating foreign 
investment in Canada.     
COSTA RICA 
142. Costa Rica is pleased to participate in this ninth Review of Canada's trade policy.  Canada is a 
partner with which we share numerous views w ithin the WTO.  Canada is committed to the 
multilateral trading system and to the successful and ambitious conclusion of  the Doha Round.  As 
Members of the Cairns Group and the "Friends of  the System" Group, Costa Rica and Canada share 
many views on the ongoing negotiations.  Our pos itions are very close in areas such as trade 
facilitation and geographical indications, to mention but  a few.  We also recognize Canada's valuable 
contribution to the negotiations on, and its inte rest in strengthening, the Dispute Settlement 
Understanding.  My delegation woul d like to take this opportunity to highlight Canada's support for 
the various Aid-for-Trade programmes and for the Advisory Centre on WTO Law. 
143. Trade between Costa Rica and Canada amount ed to US$198 million in 2010 - a modest 
figure - but trade has rebounded to the levels that preceded the 2009 crisis, recording figures 
practically double those for 2002, when the FTA be tween the two countries came into effect.  Our 
countries also entered into a reciprocal investme nt promotion agreement in  1999, and Canada is a 
major source of direct foreign investment in our country. 
144. My delegation does not wish to repeat what h as already been said, but we do consider it 
important to underscore a few points.  Both the Secretariat Report and Canada's Report note the 
stability of Canada's economy and its recovery fro m the global financial crisis.  Among the points 
worthy of emphasis are Canada's unilateral liberali zation efforts, such as the elimination of customs 
duties on more than 1,300 tariff lines, the drop in the number of contingency measures, as well as 
efforts aimed at harmonization a nd at reducing and internal barriers through the Agreement on 
Internal Trade and addressing the problem of domestic market fragmentation. 
NEW ZEALAND 
145. New Zealand values the proactive and constructive role which Canada plays in the WTO.  We 
are both countries which are committed to working towards the achievement of a successful outcome 
to the Doha Round.  As countries that believe in the development, trade, and environment benefits 
which a successful outcome to the Doha Round would deliver, we work together closely in a number 
of areas of the negotiation, including trade and environment. 
146. As a fellow member of the Cairns Group, New Zealand notes the references in the 
Secretariat's Report to Canada's efforts to remove distortions to trade in agriculture.  New Zealand 
commends Canada for these improvements in the overall orientation of its agriculture sector in the 
direction of greater openness to trade.  Notwithst anding this improvement, however, we have some 
long-standing concerns in relation to Canada's s upply managed sectors.  We are especially concerned 
about Canada's regulatory contro ls over its dairy sector and dair y imports, and would appreciate 
clarification about what steps Canada will be taking to  continue to reform this sector.  The particular 
policies in respect of which we have expressed conc erns repeatedly in the relevant WTO committees, 
include Canada's compositional standards for chee se, its Class 4(m) milk price support system, and 
the Blue Cow domestic ice-cream initiative.  In or der to allay our concerns on this score, we would 
appreciate further comment from Canada about ho w these policies are consistent with its WTO 
obligations.  WT/TPR/M/246 
 Page 25 
 
 
  147. We are pleased to note that in Canada's Globa l Commerce Strategy New Zealand is listed as a 
priority market in the Asia Pacific region.  As this strategy is rolled out, we look forward to an 
increase in trade between our two countries.  In par ticular, New Zealand looks forward to continuing 
to be a supplier of high qualit y dairy products to Canada. 
AUSTRALIA 
148. Australia recognizes the solid performance of the Canadian economy since Canada's last 
Trade Policy Review, including its steady recovery fr om a significant decline in economic growth in 
2008-09.  We note that since the last TPR the Canadian Government introduced significant policy measures to stimulate the economy during the recen t global economic downtur n and acknowledge the 
appropriateness of its current focus on balancing th e federal budget.  Australia was pleased to see that 
the OECD outlook for the Canadian economy in Ma y compared favorably to other OECD economies 
and that moderate growth was expected in the comi ng years.  The OECD noted the importance of debt 
reduction by governments, a path  Canada is now pursuing. 
149. Australia will take a close interest in the me asures adopted by the federal and provincial 
levels to address structural impediments to growth , and it encourages Canadian Governments to adopt 
trade and investment liberalising actions that will underpin longer term improvements in productivity 
and competitiveness. 
150. Since the last TPR, Canada has expanded its pr ogram of bilateral preferential negotiations.  
The outcomes of these negotiations are of consid erable interest to many countries, including 
Australia.  As we have done with other Members, we would also encourage the Canadian Government 
to extend to the fullest extent possible the out comes from these negotiations, particularly in the 
services area, to other WTO Members as we believe such a move would send a clear signal of support 
for a strengthened multilateral trading system.  Gi ven the uncertain outlook for the global economy, 
Australia considers that the onus is on all c ountries to address protectionist and anti-competitive 
practices that hinder growth. 
151. Overall Australia's trading relationship with Cana da is strong.  Last year this relationship 
comprised over $A 3 billion in merchandise trade and $A  1.5 billion in services trade.  In fact Canada 
enjoys a trade surplus with Australia.  Despite th is close relationship, Australia has longstanding 
concerns about certain measures th at restrict access to parts of the Canadian agricultural market, 
specifically for those products that are regulated by  supply-management policies and this is reflected 
in the questioning that we have put forward to Cana da.  Australia continues to argue that reforms to 
these sectors are needed, not only to safeguard th e long term competitiveness of these industries in 
Canada and to generate a capacity  to undertake advantage of new market access opportunities, but 
also to further demonstrate Ca nada's willingness to contribute meaningfully to global trade 
liberalisation efforts in areas of considerable im portance to many developing countries.  Separately, 
Australia welcomes the recent announcement by the Canadian Minister of Agriculture and Agri-Food 
that the Canadian Government will act to end th e Canadian Wheat Board's control over wheat and 
barley exports by 1 August 2012. 
152. Australia welcomes Canada's continuing co mmitment to pursuing trade liberalisation 
outcomes both multilaterally and bilaterally and its public stance in the G20 context on the risks of 
protectionism.  Australia also welcomes Canada's active support for, and participation in, the Cairns 
Group of agricultural exporters, including its hos ting of the Cairns Group Ministerial meeting in 
September 2011.  As free trading nations which bot h strongly support the global rules-based trading 
system, Australia and Canada share a commitment to concluding the Doha Development Agenda.  
Australia looks forward to continuing to work pr oductively with Canada, and with all WTO Members, 
in the negotiations so that a credible package can be shaped for the WTO Ministerial Conference in 
December later this year.  WT/TPR/M/246 
Page 26  
 
  JAPAN 
153. I would like to begin my statement with Cana da's macroeconomic policy and environment. 
Japan congratulates Canada on the recovery of its economy, after the contraction of the GDP growth 
rate in 2009. The recovery was due to a large stimulus package as well as measures to promote a 
balanced federal budget over the medium term.  
154. Japan appreciates Canada's emphasis on trade lib eralization policy in various multilateral and 
plurilateral fora, including the WTO, and also valu es Canada's significant e fforts towards refraining 
from protectionist measures and efforts towards liberalization of trade and investment as a host country of G8 and G20 in 2010.  
155. This policy orientation is well reflected in Canada's international trade and investment 
policies as well. For example, in the WTO, Canada is definitely an active participant and has made 
great contribution to the DDA negotiation. According to the Secretariat's Report, it submitted or co-
sponsored 21 communications in vari ous negotiating groups during the review period; it is also an 
active user of the WTO dispute settlement mechanis m. While the WTO is a major pillar in its trade 
policy, Canada is also actively pursuing free trad e agreements with a wide range of countries and 
regions. In this regard, I would like to draw your attention to the fact that Canada and Japan are 
engaged in a Joint Study for a possible EPA. 
156. Japan notes that Canada stated in "Canada's In ternational Market Access Report – 2009" that 
it has reinvigorated its regional and bilateral free tr ade agreement agenda based on the recognition that 
the development of the Canadian economy relies he avily on international trad e. Japan expects that 
Canada's current FTAs as well as tho se in the future will be building blocks, not stumbling blocks for 
the multilateral trading system.  
157. With regard to specific trade and investment po licies, Japan welcomes the recent relaxation of 
foreign investment restrictions, such as the elimination of the Can$5 million sector specific review 
threshold for transport services, financial servi ces and uranium production introduced by the 
amendment of the Investment Canada Act in 2009 and the review of foreign investment restrictions in 
the uranium mining industry which was proposed in  the Speech from the Throne in March 2010.  
158. Japan also highly appreciates the autonomous el imination of tariffs implemented in FY 2009 
and FY 2010. In total, more than 1,300 tariffs have been eliminated. Further tariff elimination is also 
scheduled for 2015, and as a result, Canada will be the first country to eliminate all tariffs on 
manufacturing inputs, machinery and equipment amo ng G20 countries. This will certainly encourage 
other WTO members.  
159. Japan welcomes the recent announcement made by Canada to repeal its additional import 
controls on all food and animal feed products from Japan, which were introduc ed after the accident at 
the Fukushima Dai-ichi Nuclear Plant triggered by  the earthquake and tsunami  on March 11. This is 
the first case of repeal of such import control me asures imposed by individual countries as a result of 
the nuclear power plant accident. 
160. Taking this opportunity, Japan would like to requ est other Members to also carefully evaluate 
the current situation and to reconsider import control measures in place. Japan strives to provide 
precise information in a timely manner for its trad ing partners through the WTO and other relevant 
international organizations.  
161. Having said that, there are some concerns which need to be raised in relation to Canadian 
Trade Policy. Today, we wish to make three sp ecific comments. Firstly, Canada maintains strict 
restrictions on directors in business corporations. U nder the Canada Business Corporations Act, at  WT/TPR/M/246 
 Page 27 
 
 
  least 25% of directors must be resident Canadians.  For subsidiaries of a foreign bank, it is 50% under 
the Canada Bank Act. 
162. Secondly, Canada has restrictions in exportati on of timber. In British Colombia, raw timber is 
not allowed to be exported unless it is recognized as  surplus timber, in accordance with federal and 
provincial regulations. In addition, export charges of between 5 to 10% of its price are levied. These 
regulations are a form of export restrictions and c onstitute barriers to business activities and trade, and 
we therefore urge Canada to review them without delay.  
163. Thirdly, Japan wishes to express its serious c oncerns about the feed-in tariff program which 
the Canadian province of Ontario established in May 2009. The FIT Program contains domestic 
content requirements. In order to qualify for th e benefits from this programme, power generation 
enterprises participating in the FIT programme are requested to achieve a certain level of local 
content. And we do believe that this kind of measures are incompatible  with fundamental WTO 
discipline of national treatment. To resolve this ma tter, Japan requested consultations with Canada 
under the Dispute Settlement Understanding last Sept ember. However, we were unable to reach a 
mutually satisfactory solution through these cons ultations, and therefore Japan requested, on 1st June, 
for the establishment of a panel to examine this ma tter. As I stated earlier, Japan appreciates the 
efforts Canada has made so far to fight against protectionism and strengthen the multilateral trading 
system. However, this FIT Program established by Ontario is contrary to the Commitment to fight 
against protectionism declared by the leaders of the G20 in Toronto last June. Japan is also concerned 
that domestic content requirements of this kind in  the name of environmental protection adopted by 
Ontario, if tolerated, may be followed by other co untries and could possibly proliferate. Therefore, 
Japan strongly urges Canada to promptly withdr aw the domestic content requirement measures at 
issue.   
164. Finally, Japan would like to reiterate its hope that Canada will further facilitate trade and 
investment on multilateral, regional and bilateral leve ls, and review any measur es inconsistent with its 
anti-protectionist and liberalization policy. 
UNITED STATES 
165. The relationship between the United States and Canada remains among the closest and most 
extensive in the world. It is refl ected in the enormous volume of bila teral trade - the equivalent of $1.4 
billion a day in goods. And Canada and the United States have one of the world's largest investment 
relationships.  
166. Canada is the United States' la rgest trading partner and export market. Canada is the leading 
export market for 35 of the 50 U.S. states and is a la rger market for U.S. goods than all 27 countries of 
the European Union. U.S. exports to Canada in 2010  grew by $46 billion, larger than the growth to 
China, Japan, the United Kingdom and Germany combined.   
167. As the Canadian government points out, tr ade relations between our two countries are 
supported by the disciplines of the WTO and the No rth American Free Trade Agreement (NAFTA).  
The NAFTA is now in its 18th year and the elimination of tariffs as set out in this agreement was 
completed in 2008.  Since the implementation of NAFTA in 1994, total two-way merchandise trade 
between the United States and Canada has grown by more than 265%.  The NAFTA has also proved 
instrumental in helping our two countries resolve l ong-standing bilateral irritants and liberalize rules 
in several areas, including agriculture, services,  energy, financial services, investment, and 
government procurement.  In short, the NAFTA, and the U.S.-Canada Free Trade Agreement before 
it, reflects the strength and long history of clo se partnership and economic interdependence between 
our nations.  WT/TPR/M/246 
Page 28  
 
  168. This year the United States and Canada marked  the first anniversary of the U.S.-Canada 
Agreement on Government Procurement.  For y ears, the United States and other countries sought 
access to Canadian provincial procurement markets.   Under this bilateral Agreement, the United 
States and Canada were able to deepen their tr ade relationship by negotiating a "win-win" deal 
creating new permanent access to our respective proc urement markets.  Canada agreed to provide 
U.S. suppliers with access to procurement of all of its provinces and two of its territories under the 
World Trade Organization's Government Procuremen t Agreement (GPA), and the U.S. gave Canada 
access to the procurement of the 37 states that it c overs under the GPA.  Canada's coverage for the 
first time of its provinces under the GPA has contributed to the forward momentum of the revision of the GPA.  In addition, through September of th is year, U.S. suppliers have access to additional 
construction projects undertaken by Canadian sub-ce ntral entities, and Canadian suppliers have been 
able to compete for projects under several programs funded by the American Recovery and Reinvestment Act of 2009.  Our shared success on pr ocurement with the help of the GPA serves as a 
strong example of how we can cooperate on other common challenges. 
169. We are pleased that the United States and Canada implemented the Softwood Lumber 
Agreement in October 2006 which ended a number of pending dispute settlement cases and offered an 
opportunity to work together on a long-term solution to trade in softwood lumber.  We are continuing 
our efforts to resolve matters that  arise under this Agreement.  
170. The United States and Canadian governments have  worked closely and successfully together 
internationally to advance economic opportunity and the rule of law in the field of intellectual 
property.  Our productive partnership has included developing new approaches to preventing piracy 
and counterfeiting.  Fourteen years ago, Canada pl ayed a critical role on the international level in 
helping to achieve agreement in the World Intell ectual Property Organization on the WIPO Copyright 
Treaty and the WIPO Performances and Phonograms Treat y – agreements that have been so critical to 
shaping the global response to internet piracy that we have come to know them as the WIPO "Internet 
Treaties".  Our cooperation in WTO consultations regarding China's protection and enforcement of 
intellectual property rights (IPR), and in the Nort h American Leaders' Summit, are both important 
examples of the power of our partnership to secure shared interests. 
171. We welcome the Canadian government's recent reaffirmation of its commitment to reform its 
copyright regime.  Going back 14 years, multiple  Canadian governments ha ve sought to modernize 
Canada's copyright laws to meet the challenges of  the digital era based on internationally recognized 
norms.  We hope 2011 will be the year this goal is  achieved.  While we do not yet know precisely 
what the new reform will look like, we are encour aged by the Government's commitment to develop 
meaningful legislation that will be consis tent with international standards.   
172. We are also negotiating partners on the An ti-Counterfeiting Trade Agreement (ACTA).  
ACTA establishes a state-of-the-art international framework that provides a model for effectively 
combating global proliferation of commerci al-scale counterfeiting and piracy in the 21
st century.  It is 
designed to deepen international cooperation, prom ote strong enforcement practices, including at our 
borders, and ultimately sustain North American jobs in innovative and creative industries. 
173. Canada, however, is also a trans-shipment rout e for counterfeit goods into the United States.  
This is due primarily to the fact that Canadian border authorities lack ex officio  authority (the 
authority to target, search and seize counterfeit goods  on their own initiative).  The Canadian Border 
Services Agency needs this authorit y, which its counterparts have long had in the United States and 
other countries.  ACTA, to which Canada is a ne gotiating party, would require signatories to grant 
their border authorities ex officio  authority.  We look forward to Canada enacting legislation to 
provide its border agents with this authority.  WT/TPR/M/246 
 Page 29 
 
 
  174. We hope this Trade Policy Review can help draw  Canada's attention to those areas where it 
can further liberalize its regime and enhance its gl obal and regional competitiveness.  In some key 
sectors, unfortunately, we have noted little-to-no m eaningful change in Canada's key sectors since 
Canada's last Trade Policy Review in 2007.   
175. Despite our successful cooperation on certain aspects of IPR protection, significant 
weaknesses in Canada's IPR regime continue to concern us.  We hope to see the fulfilment of the 
Canadian government's efforts to pass meani ngful copyright reform legislation.   
176. We also remain concerned about Canada's tele communications and cable TV restrictions, its 
overly broad investment screening criteria, and its discriminatory approach to audiovisual services, all 
of which continue to create significant trade barrier s for U.S. investors and exporters.  For example, 
Canada's foreign equity limits of 47% in its telecommunications sector, unprecedented for a 
developed market, are considered a major impedi ment by U.S. industry.  Although Canada has 
discussed liberalization for the past ten years, tel ecom liberalization remains controversial, especially 
now that telecom networks are becoming AV distribution platforms; a proceeding now underway to consider further liberalization specifically exclud es any video platforms.  Canada has been unwilling 
to make any commitments in other video platforms (cable, satellite TV) in either the WTO or FTAs, 
and yet access to these "converged" plat forms is increasingly important to global trade interests, and is 
increasingly what new networks are designed to offer.   
177. Canada's rejection in November 2010 of Australia's BHP Billiton bid to take over 
Saskatchewan's Potash Corporation raised questi ons regarding Canada's historically welcoming 
attitude toward foreign investment.  We trust that Canada's decision in that case reflects no more than 
a rigorous application of its domestic law and that  it will continue to demonstrate openness to foreign 
investment in the future. 
178. Trade in agriculture and agri-food products comprise an important component of our vibrant 
and mutually beneficial bilateral trading relations hip.  In recent years, Canada has implemented a 
series of revisions to its government dairy progr ams, standards, and import procedures which have 
raised serious concerns among the U.S. dairy industry.  We find this trend troubling and hope that 
Canada will evaluate its dairy as we ll as its overall agriculture policy to  ensure that agricultural trade 
between our two great nations can flourish. 
179. With respect to aerospace financing provided by the Canadian federal and or provincial 
governments, the United States reiterates its position that  any launch aid associat ed with the C-Series 
aircraft must be consistent with Ca nada's international trade obligations. 
180. We also note that there appears to be an issue with respect to the federal government 
obtaining complete and timely information from the provincial governments for the purposes of meeting Canada's WTO notification obligations in  the technical barriers to trade and subsidies 
contexts.  We would ask Canada to examin e these issues and address them appropriately. 
181. We appreciate Canada's strong commitment to th e WTO.  We note that in its Report, the 
Canadian government states that it sees its particip ation in the Doha negotiations as essential.  Canada 
emphasizes its commitment to the su ccessful conclusion of the Doha R ound, underlining its view that 
"achieving an ambitious and balanced agreement is in  the interest of all Members, and that a positive 
outcome for Doha is especially necessary in th ese difficult economic times".  The United States 
welcomes Canada's commitment to the Round, a commitm ent that we share.  We appreciate Canada's 
active participation in the difficult task facing Me mbers in assessing next steps in the Round, and 
trying to determine what is achievable in the co ming months.  We would also like to take this 
opportunity to express appreciation for Canada's co ntributions to the work of the WTO through the 
service of Canada's Ambassador, John Gero, as Chairman of the General Council in 2010. WT/TPR/M/246 
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  REPUBLIC OF KOREA 
182. I am pleased to note that Korea and Canada ha ve maintained a sound trade relationship over 
the years.  Bilateral merchandise trade volume has steadily increased, reaching US$8.5 billion in 2010.  Equally interesting is that there has been bris k expansion of bilateral c ooperation in the field of 
energy and natural resources with Korean companies investing billions of dollars in gas, oil and 
mining industries as well as wind and solar power technologies in Canada. 
183. Nevertheless there is a great potential for fu rther deepening the overall bilateral economic 
relations particular given the complementary nature  of our economic structures.  Indeed Korea hopes 
that both countries will further cultivate a more pr ospering economic partnership well into the future 
as they move forward to successfully conclude a more prospering economic partnership, and will 
successfully conclude the ongoing bilateral FTA  negotiations at the earliest possible date. 
184. Canada, as one of the world's most open and responsible trading nation has played an active 
and constructive role in the context of both th e regular work of the WTO and the ongoing DDA 
negotiations.  Korea very much appreciates Canada's su ch role and contribution.  In this regard, we 
would also like to take this opportunity to r ecognize and applaud the excellent leadership of 
Ambassador John Gero demonstrated as the Chai r of the DSB in 2009 and the General Council in 
2010.  Korea looks forward to Canada's continued contribution not only to the successful conclusion 
of the DDA negotiations but also to the further promotion of an open and rules-based multilateral 
trading system.  
185. Having said that, my delegation would like to  make a couple of comments on Canada's 
economic and trade policies.  Firstly, with regard to Canada's macroeconomic  performance we would 
like to commend the Canadian Government for su ccessfully engineering its macroeconomic policy 
toward weathering the global economic  crisis better than most of  the other developed countries 
without raising the overall level of protection.  We also like to recognize that Canada has been 
steadily and unilaterally liberalizing its economy.  For example, this has resulted in lowering its 
simple average applied MFN tariff from 6.5% in 2006 to 5.4% in 2010.  We ve ry much hope and trust 
that Canada will continue its economic success wh ile effectively addressing the challenges identified 
in the Secretariat Report such as the slow recovery of employment and high trade barriers in some sectors. 
186. Korea would like the Canadian government to cons ider the concerns that some of the policies 
it recently introduced or plans to introduce can be trade-restrictive and also would like to encourage 
the Government to address them appropriately where necessary. 
CHILE 
 
187. Trade relations between Chile and Canada ar e governed by the Free Trade Agreement signed 
by both parties in 1997.  That Agreement was deve loped on the basis of the WTO Agreements and the 
text of NAFTA.  In some areas, however, the two countries agreed to work towards greater openness 
precisely with a view to avoiding protectionist aims.  Canada and Chile have continued work on 
refining the Agreement, for example through the entry into force of a chapter on government 
procurement in 2009, and our countries are curren tly working on a series of amendments designed to 
update some of the topics covered by the Agreement. 
188. One outcome of these bilateral negotiations was Canada's granting of tariff preferences to 
Chile on practically the entire basket of exports through a programme of gradual tariff reduction.  
Currently, 98.7% of all products covered by Canadian  concessions to Chile are subject to full tariff 
reduction treatment.  Chile, for its part, has granted ta riff preferences of 100% to Canada on a total of 
5,774 products, equivalent to 98.6%  of all negotiated products.  Of the remaining products negotiated  WT/TPR/M/246 
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  with Canada, 1.4% are covered by a gradua l tariff-cutting process and will be duty-free from 
1 January 2012. 
189. In the area of investment, Canadian investment  in Chile between 1974 and 2009 amounted to 
a total of US$13.034 billion, constituting 17.5% of total foreign investment in Chile during that 
period.  Seventy-three% of that substantial invest ment was made following the entry into force of the 
FTA between Chile and Canada.  It should be no ted that in 2006, 2007, 2008 and 2010, Canada was 
the main foreign investor in Chile. 
190. The purpose of highlighting all the above bilateral information is simply to draw attention to 
the excellent fluidity of trade between our countries.  This fluidity is made possible only by the level of certainty and openness of trade provided by the FTA on the basis of the WTO Agreements.  On the 
latter point, many delegations this morning have emphasized the important role played by Canada in 
the WTO and in the Doha process.  I need not expatiate on this point, which has been widely 
recognized by the Membership, but we  certainly share that recognition.   Canada has worked hard in 
the different areas of the Doha negotiations.  We ha ve similar positions in many of these areas but we 
are most in agreement on the aim of seeking agre ements that strengthen a rules-based multilateral 
trading system. 
191. Lastly, without prejudice to the major areas of ag reement referred to, we have raised various 
questions with Canada in the context of this Review .  The questions asked relate to areas in which we 
think it necessary to have greater clarity from the Canadian authorities and we are therefore grateful 
for the replies circulated this morning. 
PERU  
 
192. Apart from having a relatively diversified ec onomy, with abundant natural and energy 
resources, Canada has made trade a driving for ce of its economy, accounting for 60% of its GDP.  
Moreover, it is considered one of the countries w ith an outstanding quality of life according to the 
UNDP 2010 Human Development Report. 
193. Canada's solid macroeconomic fundamentals, bol stered by a substantial stimulus package, 
enabled it to weather the global recession relativ ely well, and to recover losses in production and 
employment by June 2010.  Nevert heless, the overall recovery of its economy remains fragile and a 
GDP growth rate of 2.3% is forecast for 2011. 
194. Canada's total trade in goods recovered in 2 010, recording a 10% increase, while trade in 
services likewise grew by 4.2% compared with 2009.  Its remarkable stability in the midst of the 
financial crisis enabled it to attract a higher level of investment in 2009. 
195. In bilateral terms, our countries have developed strong trade links, and the growth in trade in 
recent years has resulted in Canada becoming the f ourth largest market in the world for Peruvian 
exports.  Thus, our exports in 2010 reached the reco rd level of US$3.319 billion, having tripled in 
value since 2005.  The level of imports was of the order of US$487 million, so that there was a 
bilateral trade balance of US$2.831 billion in favour of Peru, with total trade amounting to 
US$3.8 billion. 
196. Canada is also an important source of foreign di rect investment in Peru in sectors such as 
mining and financial services, with an estimated US$2.35 billion of invest ment stock in 2010, 
distributed among the financial, mining and industrial sectors. 
197. The growth in trade and financial relations  and the complementarity of our countries' 
economies led to Peru considering Canada an impo rtant ally and to the signing and bringing into WT/TPR/M/246 
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  effect by our Governments, in August 2009, of a wide-ranging Free Trade Agreement with provisions 
on trade in goods, services, investment and governme nt procurement, which was examined by the 
WTO Committee on Regional Trade Agreements at its  session in September 2010.  The Agreement 
reflects the commitment to strengthen the special tie s of friendship and coopera tion, and to contribute 
to the harmonious development and expa nsion of world and regional trade. 
198. Our countries have shared interests in foru ms such as the WTO and APEC.  In the 
WTO context, we are members of the Cairns Group.  We hope to continue cooperating in these fields 
with Canada, particularly with a view to the successful completion of the Doha Round. 
199. For the above reasons, the Trade Policy Review of  Canada that we are conducting today is of 
particular importance to my country.  Thus, we can analyse and weigh up important successes 
achieved by Canada, such as its solid macroecono mic fundamentals which have  facilitated a rapid and 
sustained recovery, and the fact that, despite the cu rrent turbulence at world level, Canada has adopted 
measures to further liberalize its trade and inv estment regimes, reducing to zero the tariffs on 
1,374 lines.  Nevertheless, Peru is  concerned that agriculture conti nues to be highly protected, with a 
22.5% average applied tariff, compared  with 2.5% in the other sectors. 
200. The Secretariat Report also notes that Canada  has increasingly resorted to the use of 
anti-dumping measures and countervailing duties, and that from mid-2006 until 2010, the number of measures in force for longer than five years rose fro m 22 to 29.  The Report also indicates that Canada 
faces internal barriers to the establishment of a single domestic market and recommends that it 
streamline certain federal and sub -federal regulatory regimes, and that it complete the harmonization 
of consumption and corporate taxes.  It also i ndicates that a number of industries remain sheltered 
from competition law and that Canada still lags behind other advanced economies in terms of 
productivity, owing to its low performance in the area of innovation.  We would like to hear Canada's 
comments on these observations and recommendations of the Secretariat. 
201. At this time, my delegation has submitted so me questions regarding Canada's technical 
regulations as well as the modification of anti-dum ping and countervailing measures in the context of 
sunset reviews.  The WTO regulatory framework in this respect only authorizes the express 
maintenance or cancellation of such countervailing measures or anti-dumping duties, not their 
modification.  We therefore look forward to recei ving the Canadian delegation's replies, which we 
will study attentively. 
EUROPEAN UNION 
202. Canada is an important and st rategic partner for the EU. Econom ic relations between our open 
economies are characterized by strong two-way trade and investment flows - Canada is currently the 
EU's 11
th most important trading partner and the EU  is Canada's second most important trading 
partner.  Obviously our trading relations take place mostly under th e WTO umbrella. But there is one 
important bilateral development since the last TPR of Canada – namely the launch of the EU-Canada 
Comprehensive Economic and Trade Agreement (C ETA) negotiations. Good progress has been made 
and its conclusion will reflect our common enga gement to promote free trade and counter 
protectionism.  
203. Even though Canada's economy was impacted by the global financial crisis, it has by now 
recovered the losses in real output and employment. Ca nada's GDP for 2011 is forecasted to increase 
by 3.7%. The EU is convinced that this recovery  has materialised not only due to Canada's solid 
macroeconomic fundamentals and transparent trade and investment policies, but also thanks to 
Canada's ongoing commitment to a rules-based mu ltilateral system and thanks to not having had 
recourse to protectionist measures durin g the financial and economic crisis.   WT/TPR/M/246 
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  204. During Canada's previous TPR, Members co mmended Canada's im plementation of sound 
macroeconomic policies and the flexibility brought about by Canada's open trade regime. We are 
happy to witness further positive developments since the last Review as well as the steps taken to 
improve the competitiveness of the Canadian econo my. Let me mention as examples the EU-Canada 
bilateral air transport agreement, signed in 2009 and the steps Canada has taken to stimulate 
competition in the wireless market.  
205. The Reports before us today also address institu tional and legislative developments. In this 
regard I would mention the adoption of the amendmen t to the Canada Post Corporation Act, stating 
that Canada Post's exclusive privilege does not include outbound internatio nal mail. This is an 
important development that should increase competiti on. The EU also notes the amendments of the 
Competition Act, based on the recommendations of th e Competition Policy Review Panel and by the 
OECD.  
206. There are a number of "issues of concern", whic h have been addressed in more detail in our 
advance written questions. First, I would like to refe r to Canada's public procurement regime and the 
need to have opportunities for greater access to pr ocurement markets at the sub-federal level – a 
concern we raised during the last Review.  A very significant proportion of Canada's total 
procurement is taking place at the sub-federal leve l, where access for foreign participants remains 
insufficient. We count on Canada to further liberalise its public procurement markets.  
207. Another issue of concern is the Ontario Green  Energy Act and the local content requirements 
in the feed-in tariff programme for renewable en ergy. This Act, introduced in 2009, includes 
significant domestic content requirements for the procurement of renewable energy projects. 
According to this policy, developers of all solar projects and of specific wind projects are required to 
have a certain percentage of their costs come fro m Ontario goods and labour at the time they reach 
commercial operation in order to benefit from the Feed-in-Tariff (FIT) programme. In addition, it is 
foreseen that the minimum required amount of Ontario-based content will increase over time. 
Pursuant to Canada's national treatment obliga tions, Ontario must accord treatment to imported 
equipment used in the production of renewable ener gy which is no less favourable than that granted to 
like products originating in Canada, a principle laid down in the GATT, the SCM at the TRIMs Agreement.  We are more than interested in Canada's pl ans to eliminate this discriminatory and WTO 
incompatible treatment.  
208. Thirdly, the Investment Canada Act which tr eats foreign investment as something negative 
and as something that must be proven to of "net bene fit" to the country  before it may be allowed. A 
number of proposed recent investments seem to  have provoked strong sentiments which may 
discourage investors. It would be interesting to h ear whether Canada has given further thought as to 
how it could reassure foreign investors that they continue to be welcome in the 21
st century. 
209. The fourth issue, also raised during the last Revi ew in 2007, relates to the fact that Canada is 
one of the few developed countries that still has a fo reign equity cap in the telecommunications sector. 
Canada has recently undertaken an open consultati on on how to further liberalize this sector and 
provide access to foreign suppliers. We would like to  know how the results of this consultation are 
taken into account in Canada's plans fo r this important sector of the economy. 
210. Fifthly, I have to mention intellectual property, again an issue raised during the previous 
Review. We welcome Canada's inten tions to reform its copyright law, although we are worried by the 
scope and number of the proposed exceptions, as well as by the fact that Canada still has not ratified 
WIPO's Internet treaties, despite having signed them about 15 years ago. In addition there are on-
going concerns, in particular re garding the protection of pharmaceuticals, which is far below the 
standards applicable in the other developed countri es, and concerns regarding the border enforcement 
of IP rights. Still on the point of intellectual prope rty, on Geographical Indications we would like to WT/TPR/M/246 
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  hear about Canada's views concerning the consiste ncy with the TRIPs of some provisions of its 
trademark act. 
211. Another issue relates to compositional cheese standa rds.  Canadian rules entered into force on 
14 December 2008, which establish basic criteria to define and limit protein sources used in cheese 
production. We are concerned that these rules will limit the export possibilities for milk protein 
substances such as milk protein concentrates and milk powder and that these measures might be 
extended to other similar dairy products such as yog hurt and ice cream. We invite Canada to review 
and reconsider the use of these measures.  
212. Last but not least, the Provincial Liquor Board practices.  The practices of Provincial Liquor 
Boards are simply discriminatory and substantiall y hinder the access to the Canadian market. These 
liquor monopolies are owned and controlled by th e respective provincial governments and have 
control over the import, distribution and sale of a ll alcoholic beverages in the provinces concerned. 
We are concerned about a range of practices, in cluding product mark-ups and differential cost-of-
service fees, discriminatory listing and de-listing practices and commercial activities undertaken by 
these Boards outside their monopoly functions as well as discriminatory distribution practices. We 
need to have fair trading conditions for our Europe an alcoholic beverage s uppliers in the different 
Canadian provinces. It is high time for Canada to accord national treatment and MFN treatment to EU 
alcoholic beverages imported into Canada. 
213. Let me end this "honest enumeration" by highlighting yet again Canada's unwavering 
commitment to the WTO rule-book and its open-economy policies that we highly appreciate.  
INDONESIA 
214. Indonesia and Canada are important trading partners to each other.  Canada has been one of 
the main trading partners and investors in Indon esia for years.  Canadian companies invest in 
Indonesia fields such as mining, oil and gas, financial services, environment and agri-food. 
215. Canada and Indonesia maintain strong and frie ndly bilateral relations.  Canada and Indonesia 
regularly engage in areas including promoting and protection of human rights, governance and 
pluralism, economic development, reducing vulnerability to poverty, a nd foreign policy planning.  In 
the economic development cooperation between Ca nada and Indonesia aims to promote greater 
economic competitiveness and a more accountable bu siness environment for Canadian and Indonesian 
businesses in the areas of infrastructure, the oil and gas sector, mining, information and 
communication technology and agri-food products, also work together to promote sustainable growth in areas such as fishing and forestry. 
216. In the area of trade, based on the Central Bu reau of Statistics of Indonesia, trade relation 
between Indonesia and Canada in the last five y ears (2006-2010) showed incr eased o 7.91%.  In 2010, 
total trade of our countries amounted US$1.8 billio n and increased 20% compared to the previous 
year amounted US$1.5 billion.  Of that 2010 total, Indonesia exports to Canada amounted 
US$0.7 billion and Canada exporte d amounted US$1.1 billion.  Therefore, Indonesia' deficit is 
US$0.4 billion.  Indonesia's main export products  to Canada are:  na tural rubber, paper and 
paperboard, other furniture and parts thereof, jerseys, and footwear with outer soles of rubber.  Whereas Indonesia's main import products from Canada are:  fork-lift trucks, flours, centrifuges, unmanufactured tobacco, and fats and oils and their fractions. 
217. In the area of investment Canadian inv estment value in Indonesia from the period of 
1 January, 1992 to 31 December 2009 is US$29.98 b illion with a permanent business permits as many 
as 42 projects which ranked 32 in Indonesian investment.  In the period of 1 January 2009 to 
31 December 2009, Indonesia has given its approval to  the two FDI projects with investment value of  WT/TPR/M/246 
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  US$400,000.  Canada's business communit y has consistently identified Indonesia as a priority partner, 
with significant investment opportunities in a variety of sectors including natural resources, financial services, infrastructure, and telecommunications. 
218. In order to protect investment from both countries, Indonesia and Canada are negotiating a 
Foreign Investment Protection and Promotion Agreem ent (FIPA).  A FIPA is a bilateral agreement 
aimed at promoting foreign investment through le gally-binding rights and obligations.  A FIPA was 
formed to increase investment where foreign invest ment in a country should have optimal protection 
and promotion to develop the economy in that count ry.  Indonesia-Canada FIPA negotiation has been 
held nine times.  A FIPA will provide greater pred ictability and protection for Canadian investors and 
their investments in Indonesia. 
219. As noted in the Secretariat Report, the Canadian economy expanded through 2007, but 
succumbed to the impact of the global crisis and contracted between the fourth quarter of 2008 and 
mid-2009, as external demand waned.  Nevertheless , Canada's strong macroeconomic fundamentals, 
coupled with a large stimulus package under th e Economic Action Plan, has weathered the global 
recession well, without resorting to trade measures to further protect domestic production.  We 
believe Members can learn from Canada's efforts to weather the global recession. 
220. Despite Canada's generally open trade regime, there is still room for improvement regarding 
of its policy aspects.  For instance, as noted in th e Secretariat Report, official support to Canadian 
businesses is available in various configurations, w ith public funds being allocated and administered 
both at the federal and sub-federa l levels.  At the end of 2010, Ca nadian entrepreneurs could qualify 
for financial assistance under 441 programmes, of wh ich 112 also support export-oriented projects.  
We hope Canada keep consider this measures in light of basic WTO rules and principles. 
NORWAY 
221. Let me first refer to our bilateral trade re lationship with Canada.  In 2010, imports from 
Canada to Norway increased significantly and Canada jumped from 13
th to 9th place among the source 
of imports to Norway.  In fact, the Canadian exports to Norway increased by 43.4% or 
US$765 million, to US$2.5 billion from 2009 to 2010.  The main reason for this increase was the 
rising prices for primary commodities, especially nickel  and aluminium.  At the same time, Canada's 
imports from Norway fell somewhat, mainly because of the decline in crude oil imports.  Still Canada 
is Norway's 12th biggest export market, only surpassed by China, the USA and some of our European 
partners.  
222. Given the importance of the trading relationship between Canada and Norway, it is with great 
interest that we have studied the Reports on th e trade policy of Canada, and we have submitted a 
written question.  Allow me to make some general re marks and to raise a point of particular concern. 
223. As stated in the Secretariat Report, thanks in part to its macroeconomic fundamentals, Canada 
has weathered the global recession well, and without resorting to protectionist measures.  In fact, 
during the review period, the Canadian Government has taken steps to eliminate tariffs and technical 
barriers to trade.  We agree with this general assessment and would like to underline the importance 
of this fact to the general well-being of the global economy. 
224. As the Secretariat points out Canada is an activ e participant in the WTO, both in the context 
of the regular work of the Organisation and the D oha Development Agenda.  We are confident that 
Canada will continue to play an important role  in the ongoing work of bringing the round of 
negotiations to a successful conclusion. WT/TPR/M/246 
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  225. Furthermore, on both Norway's and Canada's  requests the WTO has established a dispute 
settlement panel in connection with  the EU ban on trade in seal products.  We are grateful for the 
good cooperation with Canada so far in this matter. 
226. The Free Trade Agreement between Canada a nd the EFTA countries entered into force in 
July 2009.  Our experiences with this free trade ag reement are generally very good.  The agreement 
entails an elimination of tariffs in a number of ar eas.  However, in one area of great importance for 
Norwegian exports, the agreement offers only a very gradual reduction of tariffs.  I'm referring to the 
duty on the importation of vessels. 
227. Norway welcomes the steps Canada took in 2010 to opening up free trade in ships by 
eliminating the duty on the importation of certain larg e ships.  However, tariffs up to 25% have been 
maintained for the importation of many categories of  vessels from Norway to Canada.  Norway has an 
important ship building industry a nd there is a demand for Norwegian vessels in Canada.  However, 
these tariffs constitute a disincentive to the importati on of Norwegian vessels to Canada.  In our view, 
maintaining such tariffs goes counter to the curre nt Canadian policy towards a more open and free 
trade oriented economy.  Norway would welcome a more expedited elimina tion of import tariffs on 
vessels than the one foreseen in the free trade agreement between Canada and the EFTA countries. 
DOMINICAN REPUBLIC 
228. We note with satisfaction that since its l ast Trade Policy Review in 2007, Canada has 
unilaterally adopted trade liberalization measures.   Its heavily services-oriented economy came 
through the global financial crisis successfully, and on the basis of stimulus programmes directed mainly to automotive production and the financial system, by June 2010 it ha d recovered from the 
recession which lasted only three quarters. 
229. We nevertheless note with concern that the Secretariat Report indicates that the regime for 
oversight and control of foreign direct investme nt remains complex and contains sector-specific 
restrictions in telecommunications, fisheries, mining, air transport and cultural businesses among others.  We consider it important that Canada again review its regime for foreign investment so as to 
make it less restrictive and more compatible with  the liberal policies of the developed economies. 
230. We note with satisfaction that Canada has e liminated customs duties on 1,374 tariff lines 
(manufacturing inputs and machinery and equipmen t) in order to improve competitiveness.  The 
average applied tariff in Canada decreased to 5.4%  in 2010.  However, as is indicated in the 
Secretariat Report, Canadian tariffs remain very high on agricultural products, particularly dairy 
products.  Moreover, the agricultural sector con tinues to be subject to substantial subsidy 
programmes, such as the supply management progra mme which is one of the pillars of Canadian 
agricultural policy.  We suggest that  the Canadian authorities review their trade policy, particularly in 
the agricultural sector, in order to eliminate dist ortions and expand opportu nities for production and 
export from developing countries. 
231. We welcome the fact that Canada has adopted  positive measures in the services sector to 
improve liberalization and trade competition, as in  the case of mobile telephony services and maritime 
services. 
HONG KONG, CHINA 
232. Hong Kong, China maintains close trade and econom ic relations with Cana da.  Bilateral trade 
last year amounted to some US$4.6 billion, a rebound of 13.4% year-on-year, as global trade 
recovered from the economic crisis.  We are encour aged by this healthy growth in the economic 
relations between the two places, and are conf ident that our ties will only get closer.   WT/TPR/M/246 
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  233. I now turn to some specific areas in Canada's trade regime.  On tariffs, we commend Canada's 
unilateral liberalisation efforts in eliminating the MF N rates for over 1,300 tariff lines in the past two 
years.   As a result, the average applied tariff rate  was reduced to 5.4% in 2010, and over 68% of its 
tariff lines are now duty free.   In addition, we are encouraged to learn that some 380 more tariff lines 
will be fully liberalised by 2015.  All these initiativ es showcase Canada's s ubstantive commitment to 
free trade and trade liberalisation.   We welcome these cuts, and would encourage Canada to simplify 
its tariff structure further by removing the non- ad valorem  rates currently applying to just a few tariff 
lines.   
234. On agriculture, we note from the Secretariat Report that Canada has a dualistic agricultural 
sector.  On the one hand, Canada provides little  government assistance and protection to its 
commodities exports, such as wheat, coarse grains, pork and beef.  On the other, it shields some 
"supply-managed" subsectors, such as dairy pro ducts and poultry, thr ough tariff quotas, export 
subsidies, production quotas, or price support.   We further note that Canada's applied MFN tariffs on 
agricultural products averaged 22.5% in 2010, which was much higher than that of 2.5% applying to NAMA products, and that tariff protection remains high for certain products such as dairy products 
with an average rate of 237%.  We note from the Government Report that Canada is seeking a level 
playing field in global agricultural trade through elimination of all forms of export subsidies, 
substantial reduction of trade-distorting domestic support, and significant improvements in market 
access, via the DDA Agriculture negotiations.  We appreciate Canada's commitment and constructive engagement, and would encourage it to step up its ef forts in liberalising those highly-protected sectors 
in future.  
235. Services continue to be the largest and fastest  growing sector in Canada.  Canada and HKC 
share very similar ambitions in pursuing further li beralisation of trade in services.  We are cosponsors 
of a number of plurilateral requests for greater market access in such sectors as maritime transport, computer, telecommunication and fina ncial services.  We look forward to continued co-operation with 
Canada in these respects. 
236. Likewise, we appreciate Canada's active partic ipation in the Trade Facilitation negotiations.  
Both Canada and HKC share the same goal in pursu ing a set of strong and effective commitments on 
Trade Facilitation to reduce red tape at borders an d to lower transaction costs for SMEs.  We look 
forward to working more closely with Canada in a dvancing the negotiations in this area in the months 
to come.  
237. Regarding investments, we note from the Secr etariat Report that Canada's FDI regime 
remains relatively complex, involv ing a net benefit test for major ac quisitions of Canadian companies, 
as well as a sector-specific FDI restrictions in a number of sectors.  It also appears to us that the new 
provisions in the Investment Canada Act, which en ables review of any proposed or existing foreign 
investment on national security grounds, may create un certainty for investors.  While we acknowledge 
that there has been some liberalisation of Canada 's FDI regime over the review period, we would 
encourage Canada to consider more measures to liberalise the regime. 
238. Turning to contingency measures, we are pleas ed to note that despite the global financial 
crisis, the number of anti-dumping investigations in itiated by Canada had ha lved during the review 
period.  We appreciate the caution exercised by the Canadian authorities.  We hope Canada could 
continue to exercise caution in this respect, and wo uld ask Canada to critically examine the need for 
continued imposition of anti-dumping and countervailing measures during s unset reviews, in order to 
prevent continuation of such trade remedy me asures in the absence of justifiable grounds. 
239. We commend Canada for maintaining a well-organised system to formulate technical 
regulations, conformity assessment procedures and standards, as well as SPS measures.  The Cabinet 
Directive on Streamlining Regulation  is helpful in ensuring that federal authorities use available WT/TPR/M/246 
Page 38  
 
  international standards and guidelines to meet regulat ory objectives.  We also appreciate that Canada 
has actively engaged in the development of mutual recognition agreements to facilitate free flow of 
trade between the country and its trading partner.   
240. On a related note, we learn that Canada has recently enacted the Canada Consumer Product 
Safety Act (CCPSA), in order to modernise a nd strengthen its regulatory regime for consumer 
products.  We support such regulatory objectives, and note that the new legislation is not intended to 
create unnecessary obstacles to trade.   We note th at, under the law and its implementation guidelines, 
consumer products which pose an "unreasonable danger to human health and safety" will be 
prohibited for distribution.  However, this is so broadly defined that somewhat makes compliance by traders difficult, as not every type of consumer  products has its corresponding safety standards or 
testing requirements.  We urge Cana da to make an extra effort to look into the trade impact of this 
Act, and promulgate relevant guidelines to facilitate compliance and trade.   
241. Canada and HKC are both staunc h supporters of the multilateral trading system.  While the 
challenges facing us are enormous, we look forwar d to continued cooperatio n with Canada and the 
team led by Ambassador John Gero here in Geneva towards upho lding the integrity of the multilateral 
trading system and pursuing progressive trade liberalisation. 
ARGENTINA 
242. Despite the global financial and economic crisis, Canada has adopted measures for the further 
liberalization of its trade regimes, with the result that the simple average applied MFN tariff fell from 
6.5% in 2006 to 5.4% in 2010.  Nonetheless, we re gret that agriculture continues to be the most 
protected sector, with an average applied tariff of 22.5%. 
243. Bilateral trade between Argentin a and Canada showed encourag ing signs of revival for both 
countries in 2010.  Argentine imports from Canada rose from US$254 million in 2009 to 
US$409 million in 2010, far exceeding the level of US$292 million reached in 2007, prior to the deep 
international financial and economic crisis which seriously affected  world trade.  Argentine exports to 
Canada amounted to US$1.4 billion in 2010, a level practically three times higher than the 
US$467 million of 2009 and four times higher than the values recorded prior to the global crisis that 
started in September 2007.  Canada is also a major source of foreign direct investment in Argentina, 
especially in the mining sector, where the binational Pascua-Lama project of the Barrick Gold enterprise stands out as the biggest foreign pr ivate investment in the history of Canada. 
244. While both Canada and Argentina are net exporte rs of agricultural and agri-food products, the 
figures referred to above show unambiguously that  our bilateral trade is reviving, given the 
complementary nature of various sectors of our economies.  
245. In this connection, and with the aim of expandi ng our trade relations even further in various 
areas, Argentina wishes to express its concern at the implementation of su pply management policies 
in the Canadian agricultural sector, aimed mainly  at protecting the domestic market from market 
forces through the use of tariff quotas, export subsid ies, production quotas and other similar measures.  
We would therefore urge the Government of Canada  to continue the efforts undertaken in the last 
20 years to reform the agricultural sector, so as to steadily reduce producers' dependence on border 
measures and Government support as a source of revenue. 
246. We have carefully studied the Secretariat Re port and Canadian Government Report, and we 
note that the Canadian authorities have implemen ted the Economic Action Plan since 2009, which has 
enabled them to revive the economy and ride out the global recession precipitated by the 2007 crisis.  
We trust that the structural reform processes will be  given continuity with the aim of completing the 
unification of the domestic market and creating new oppor tunities for trade.  We trust also that these  WT/TPR/M/246 
 Page 39 
 
 
  reforms will contribute to an improvement in all as pects of trade policy, especially with regard to 
trade in agricultural products. 
ECUADOR 
247. The Canadian economy has rebounded strongly from the roughly 2.5% decline in GDP in 
2009, to record a growth rate of 3% in 2010 and an estimated 2.9% in 2011, wh ich is particularly high 
for a developed country. 
248. In the first quarter of 2011 alone, Canada's GDP grew by 1%, a high rate in view of the fact 
that the country's average quarterly growth rate  over the last 15 years has been 0.8%.  Private 
investment in infrastructure equipment increased by 3.2% and investment in machinery grew by 3.7% 
during the first part of the year. 
249. The exchange rate of the Canadian dollar is at its highest point since 2006.  The Canadian 
financial system proved to be one of the strongest in  the world following the 2008 crisis, due in part to 
the strong regulatory framework governing banking activity. 
250. Nevertheless, some of the me asures applied by Canada duri ng this Trade Policy Review 
period have attracted Ecuador's attention.  First, a highly subsidized agricu ltural sector which visibly 
limits the capacity of developing countries to compet e with Canadian food products.  Secondly, the 
existence of fiscal incentives applied in a discrimin atory manner to certain alcoholic beverages among 
other products.  Lastly, the implementation of me asures designed to protect human health and life, 
which nevertheless have inordinately restrictive ef fects on trade.  This is the case for the technical 
standards applied to tobacco and the maximum residue limits which entered into force last year for a 
number of products, including bananas. 
251. Ecuador urges Canada to renew its support fo r the achievement of a Doha Round outcome 
that is fully compatible with the development dime nsion, and in this connection invites Canada to 
revise its trade measures and policies that are not fully consistent with its commitments under the 
multilateral trading system. 
TRINIDAD AND TOBAGO 
252. Trinidad and Tobago has had a long and dynamic relationship with Canada that began even 
before Trinidad and Tobago's independence in 196 2, immediately upon whic h we established formal 
diplomatic relations. Today our vibrant bilateral re lations cover a wide spectrum of sectors including 
migration, education, health, energy and trade in  goods as well as services, with financial services 
showing particular dynamism. Our countries coopera te within the Commonwealth, the UN and the 
OAS. In order to strengthen our bilateral relations hip a number of bilateral agreements have been 
concluded over the years in areas such as deve lopment cooperation, investment promotion and 
taxation cooperation, envi ronmental cooperation, waste resource management, mutual legal assistance 
and commercial air services. 
253. We have a special cooperation focus on security  issues and the Trinidad and Tobago Defence 
Force has benefited from a long history of training w ith the Canadian Forces in Canada and has been 
a beneficiary of Canada's Military Training Assist ance Program since the 1970s. In the context of 
Cricket World Cup held in 2007, Canada provi ded Trinidad and Tobago and other Caribbean 
countries with specialized assistance in the areas of bor der security and public health. Canada has also 
provided significant security assistance in our prep arations for the Fifth Summit of the Americas 
which Trinidad and Tobago hosted  in April 2009. These exemplify that the security and defence 
cooperative relationship between Tr inidad and Tobago and Canada is a vibrant and constantly 
evolving one. WT/TPR/M/246 
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  254. Through Trinidad and Tobago's engagement w ith the Canadian International Development 
Agency (CIDA), access to Canada's program for de velopment assistance has resulted in valuable 
cooperation in the areas of provision of airport radar facilities; training of teachers in secondary, 
tertiary and technical education; fisheries ma nagement; and disaster and emergency response. 
Trinidad and Tobago has been participating in th e Canadian Seasonal Agricultural Workers Program 
for the last 40 years which has engaged agricultural workers in seasonal projects for the harvesting of 
fruit and vegetables, providing guaranteed income to the workers and their families on terms and 
conditions negotiated and agr eed by both Governments. 
255. With regard to Trinidad and Tobago's trade relationship with Canada , bilateral merchandise 
trade in 2009 reached TT$1.4 billion. Merchandi se exports totalled TT$419 million and included 
mineral ores, machinery, paper pr oducts, copper, electrical and elect ronic equipment and vegetables. 
Imports from Canada by Trinidad and Tobago tota lled TT$942 million in 20 09 and included organic 
and inorganic chemicals, iron and steel. Canadian investments are concentrated in the petrochemical, oil, gas and financial sectors. In fact, Canadian in volvement in the Trinidadia n energy sector has been 
increasing in recent years. Canada is Trinidad  and Tobago's 6th major export market and 7
th major 
supplier of imports. The commercia l relationship between Trinidad and Tobago and Canada is strong 
and growing. Over 175 local companies mainly in the manufacturing and energy sectors have 
consistent export links with Cana da, conversely many popular Canadian firms in the Energy and 
Financial sectors have been enjoying the favourab le business climate in Trinidad and Tobago. 
256. In October 2007, the Royal Bank of Canada (RBC) and the Royal Bank of Trinidad and 
Tobago (RBTT) Financial Group jointly announced an  agreement for the acquisition of the retail 
banking operations of RBTT for a total purchase price of TT$13.8 billion. The Royal Bank of 
Trinidad and Tobago had been one of the largest commercial banks in Trinidad and Tobago, and as a 
subsidiary of RBTT Financial Holdings Limited,  RBTT was one of the largest commercial banking 
corporations in the Caribbean region with a gr oup asset base of over TT$39 billion dollars, spanning 
out over 125 offices in markets in the Eng lish, Dutch and Spanish speaking Caribbean. 
257. This corporate acquisition is itself instructive of  the dynamism of globalization. In 1970, it 
was the policy of the Government of Trinidad and Tobago that all foreign ba nks operating in Trinidad 
and Tobago must be localized, that is, legally incorp orated in the national jurisdiction. What was then 
Royal Bank of Canada became Royal Bank of Trinid ad and Tobago, subsequently becoming a wholly 
owned local banking institution.  Forty years later Royal Bank of Canada has returned to the national 
and regional banking market thr ough its acquisition of Royal Ba nk of Trinidad and Tobago. 
258. The Membership should also be aware that Cana da's trade and economic relationship with the 
CARICOM region as a whole dates back to the 18th Century when the Maritime Provinces of Canada 
exchanged fish and lumber for West Indian rum, molasses and spices. Today that relationship is 
formally framed by several instruments, perhaps the most important being the 1979 CARICOM-Canada Trade and Economic C ooperation Agreement and its Pr otocols including the CARICOM-
Canada 1998 Protocol on Rum, the CARIBCAN Agre ement, and Bilateral Investment Treaties on an 
individual basis with Barbados and Trinidad and Tobago. 
259. Under the CARIBCAN Trade Agreement, there is provision for duty free access to the 
Canadian market for a variety of products, includi ng two products of special importance to Trinidad 
and Tobago, namely, methanol and lubricating o il.  CARICAN's primary objectives are to enhance 
the volume and value of the Commonwealth Caribb ean's exports, promote trade diversification and 
economic development, promote new investment opportunities and encourage enhanced economic 
integration and cooperation. As the membership  would recall, the WTO waiver on the CARIBCAN 
arrangement expired on December 2006 a nd was renewed by the WTO Membership till 
December 2011.  WT/TPR/M/246 
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  260. The CARICOM Members have been negotiating a Trade and Development Agreement with 
Canada as a progressive and more WTO-compliant successor to CARIBCAN.  Apart from trade in 
goods, the Agreement will cover trade in services and investment. The first round of negotiations was 
held in November 2009 and included discussions on market access for agricultural and industrial 
goods, services, investment and dispute settlement.  A fundamental principle of these negotiations is 
that the Agreement would take account of th e relative differences in development between 
CARICOM and Canada, as well as the internal differences in development between the Less 
Developed Countries (LDCs) and the More Deve loped Countries (MDCs) within CARICOM.  
261. The second round of negotiations in March 2010 was an important session in that it 
highlighted the intricacy and sensitivities of the unfolding internal regime of the single economic space of the CARICOM Single Market and Economy (C SME). Canada provided greater insight into 
its Federal system, focussing in particular on the differentiated characteristics of both Provincial and 
Federal jurisdictions with respect to the various ar eas of trade policy. It was reiterated by mutual 
agreement that special and differential treatment  for CARICOM would form part of the final 
Agreement. 
262. Having just concluded the third round of ne gotiations in April 2011, Trinidad and Tobago 
takes this opportunity to underscore its commitme nt to reaching a balanced mutually rewarding 
outcome to the negotiations on the proposed  Tr ade and Development Agreement and looks forward 
to building and broadening the scope of bilatera l trade; deepening the disciplines for increasing 
market access; securing effec tive market access for goods and services in Canada; increasing 
investment and tourism flows and opportunities to develop CARICOM inve stment; and negotiating 
development cooperation to minimize the negative impact of liberalization. 
263. With a view therefore of having a better unde rstanding of the contours of Canada's trade 
policy we examined the Reports both by the Governme nt of Canada and the Secretariat, and in that 
regard have submitted some questions  for this review to assist our authorities in having clarity on the 
trading environment in Canada. 
264. In our study of Canada's trade performance sinc e its last Review in 2007, my delegation was 
impressed by Canada's resilience in the face of the financial and economic  crisis of 2008 to 2009. 
Starting with a robust fiscal position supported by a malleable monetary policy is certainly 
prescriptive for other economies to avoid sudden and di re economic shocks in the event of a crisis. 
My delegation was also interested in Canada's Economic Action Plan introduc ed at the beginning of 
2009 to remedy the negative effects felt by the crisis . It was instructive to note that the management 
and sequencing of small and targeted stimuli of liquidity in a few key sectors created an effective revival in the affected economic sectors. Th e result of these measures were restored business 
confidence and productivity, a boost of national output, total recovery of jobs lost during the crisis 
and a further net growth in employment - a trul y remarkable achievement for which my Delegation 
warmly congratulates Canada. 
265. As a WTO Member my delegation greatly welc omes and applauds Canada's long standing 
sensitivity to international development issues, on which its credibility is undeniable. We appreciate 
the commitment Canada has made to the Doha De velopment Agenda; their strong participation and 
dedication to providing trade-rela ted technical assistance and capacity building to developing and 
least-developed Members, especially in our Aid fo r Trade discussions; and their recognition of the 
challenges small and vulnerable economies face in seeking to make more meaningful their 
participation in word trade and support for the full implementation of the SVE Work Programme. WT/TPR/M/246 
Page 42  
 
  SOUTH AFRICA 
266. Canada and South Africa have traditionally over the past 17 years, since the birth of our 
democracy, enjoyed a strong and diversified bilatera l relationship, covering areas including the broad 
expanse of trade, investment and economic cooperation. 
267. Both South Africa and Canada are committed to  development initiatives with respect to the 
African continent, focusing especially on a wide r scope of thematic pr ogrammes such as gender 
equality and strengthening governance institutions a nd practice. We would also like to congratulate 
and commend Canada for its commitment to its Ai d for Trade programme on the continent, via the 
Canadian International Development Agency, or CIDA, wherein Canada has focused on building 
productive capacity, including its more recent la unching of a concerted strategy to enhance 
developing countries' participation in the global ec onomy. We note particularly the Secretariat Report 
confirms that the African contin ent is the largest recipient of CIDA funding. We in particular 
commend Canada's Aid for Trade initiatives in Sub Sa haran Africa.  CIDA is actively working with 
the South African Government to accelerate th e implementation of its development cooperation 
programme following the signing of a bilateral de velopment cooperation treaty in 2006. We also 
congratulate Canada on honouring its G8 commi tment of doubling aid to Africa in 2010. 
268. There are several specific features of Canada's trade and investment regime which are of 
particular interest to South Africa, and we woul d like to highlight a few here. We have submitted 
more detailed questions to the Ca nadian delegation, via the Secretariat, seeking clarity on several 
aspects of their services sector. 
269. With respect to participation in the WTO, SA and Canada share many common goals. In 
particular, we are heartened by Canada's stated commitment, to the multilateral process, including its 
work to expand and modernize the WTO trading system, and its recognition of the needs of developing countries under the development mandate. We share common points of departure on Agriculture and we are both member s of the Cairns group of agricultural exporting countries. In this 
regard, we particularly welcome Canada's stat ed commitment and drive in its own Government 
Report, to propel the negotiations towards achieving  the objective of attaining real and meaningful 
agricultural reform, including elimination of all form s of export subsidies and substantial reduction of 
trade-distorting domestic support. On trade relate d assistance and capacity building, we further 
commend Canada for its ongoing commitment to provi ding trade-related technical assistance and 
capacity building within the WTO framework, via its donations to the Doha Development Agenda 
Global Trust fund, its contribution to Aid for Trade initiatives, its continuous support with respect to 
the Enhanced Integration Framework and its pr ogress on providing DFQF market access to LDC's. 
270. On the use of trade remedy instruments, we ar e encouraged by the Secretariat's assertion that 
the number of Canada's definitive anti-dumping duties in place have declined since the period of their 
last review. However, we are somewhat concerned th at, over the past five years, the number of duties 
in place for longer than five years has increased. Further, the Secretariat Report points out that of 30 
anti-dumping measures adjudicated, more than 50%, th at is, 18 measures, were continued in sunset 
review investigations. We find these figures somewhat significant, especially in light of Canada's stated commitment to achieving predictability in the application of rules governing anti-dumping and to preventing unnecessary restrictions to  trade in the Rules negotiations. 
271. We note that foreign investment restrictions we re maintained over the period under review, in 
certain sectors that are considered to be designated as sens itive. We have posed our own written 
queries in respect of various services sectors an d we look forward to Canada's responses. We 
particularly note, the Secretariat Report highlight s that Canada's Investment Act contains new 
provisions that provides for the Minister of Indus try to review any proposed or existing foreign 
investment on national security grounds. It is pointed out that this creates uncertainty for investors.  WT/TPR/M/246 
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  We are concerned that this requirement could prove  to be a limitation to investment, and we trust 
Canada will, over time, endeavour  to elaborate on what criteria guides the concept of national 
security. 
272. While we commend Canada for some significant unilateral tariff elim ination endeavours in 
recent years, specifically on products relating to manufacturing inputs, machinery and equipment, we 
would still encourage Canada to continue to pursu e and effect market liberalization in industries 
where final processed products are produced, which the Secretariat Report notes remain the most 
tariff protected industries. We further note the Se cretariat Report points out that any evidence of 
reduced dependency by Canadian producers on govern ment support is more a function of higher 
world market prices for agricultural commodities, rather than reduced support.  In line with Canada's 
multilateral position, we would like to see more open  and favourable polici es to remove the high 
tariffs and tariff escalation being maintained in certa in agricultural sectors, as well as a real, effective 
reduction in domestic support arising from Ca nada's new agricultural policy framework.  
273. Overall, we are heartened by Canada's stated  recognition in its Government Report of, in 
addition to market opening, the importance of  reducing national barriers and preventing new 
protectionist measures, as being critical to energizi ng its economy. Canada has made great strides in 
tailoring its Aid for Trade and development assist ance programmes to the needs of developing 
countries, particularly on the African continent.  We once again commend them for this commitment 
and look forward to the continuation of such mutu ally beneficial and cons tructive pro-development 
relationships, into the future. 
NIGERIA 
274. Nigeria is pleased to note from the Secretariat Report that since its last Review, Canada has 
taken steps to further improve the productivity a nd competitiveness of its economy, including through 
unilateral liberalisation;  driven by a strong and dynamic services sector, as well as rich endowments 
in natural resources, the Canadian economy is quite  diversified, which has helped Canada build 
strong, competitive businesses and communities.  Th anks in part to its strong macroeconomic 
fundamentals, Canada has weathered the global rec ession well, without resorting to trade measures 
that would protect domestic production. 
275. Nigeria is also happy to note from the Secret ariat Report that Canada as an original WTO 
Member, has maintained its support and commitment to the strengthening and liberalisation of the 
multilateral trading system.  In that regard, while  we generally commend the active participation of 
Canada in the Doha Round negotiati ons, we would also like in partic ular, to acknowledge the valuable 
contributions that have been made by Ambassador  John Gero as Chairman of the General Council in 
2011.  We appreciate the objective and fair appro ach he has demonstrated during the tenure and 
pledge our support and commitment to working clos ely with Ambassador Gero and his delegation. 
276. Nigeria, however, hopes that the use of prefer ential trade agreements by Canada will not 
obviate its supports and commitment to strengtheni ng the multilateral trading system.  Although the 
use of preferential trade agreements is considered  as complimentary to the wider trade strategy of 
creating new trade opportunities and improving access in key markets.  It is therefore expected that Canada would continue to affirm that the WTO is the cornerstone of its trade policy. 
277. Canada remains an active partic ipant in the WTO Aid for Trade and is an alternate Member 
of the Board of EIF.  To that end, Canada  has focussed its support on trade facilitation and 
agricultural standards delivered through a variety of institutions.  Nigeria agrees that development 
assistance is central to helping developing countries move from making trade possible to making trade happen.  Removing barriers is not enough for any count ry to benefit from trade, it has to adapt as 
well. WT/TPR/M/246 
Page 44  
 
  278. Finally, the WTO dispute settlement system is recognised as one of the central pillars of the 
multilateral trading system.  The credibility of th e WTO owes much to its ability to enforce the 
commitments entered into by its Members.  The di spute settlement system is a central element in 
providing security and predictability to the multilate ral trading system.  To that end, Canada has 
participated in a number of cases as complainant,  respondent and third part y;  gladly, Canada has 
complied with all the rules and recommendations of th e DSB.  In addition to participation in dispute 
Canada is actively engaged in the DSU negotiations. 
HONDURAS 
279. Trade relations between Honduras and Canada da te back many years and are now receiving a 
new impetus through the bilateral negotiations for a free trade agreement between our countries, the 
second round of which took place last February. 
280. In this connection, we wish to highlight certain  aspects that deserve special attention.  The 
FTA offers major business opportunities for both our countries.  The trade balance has favoured Honduras over the last few years, with a surplu s in 2009-2010 amounting to US$7 and 8 million, due 
mainly to mining products.  From the Canadian standpoint, Honduras is also a destination for 
investment, especially in the mining and textile sectors.  We hope that our trade relations will 
continue growing in these and other sectors. 
UKRAINE 
281. Ukraine and Canada have a long and positive hi story of relations, not only in trade but 
cultural and human.  It is a history of industrious people of my nation going to a distant new land to 
start their new lives and join other nations in buildin g their new home.  Substantial parts of Canadian 
immigration, over 1 million, belong to Ukrainians or  have been immigrating to Canada different times 
since 1890.  They are now an integral part of Canadian life and made their productive contribution 
into the prosperity of Canada.  For Ukraine, today Canada is particularly re markable example of wise 
financial policy and swift action im plemented during the recent crisis, which ensure no huge damage 
to the economy.  We are going to further strengthe n our ties and to this end our country started FTA 
negotiations in 2010 which we hope will bring new benefits to both nations. 
282. I would appreciate this opportunity to put a fe w questions based on the Reports provided for 
the Review.  On significant export support, includ ing financial support to the Canadian companies, 
could Canada provide clarifica tion on how it corresponds with the provisions of the Agreement on 
Subsidies and Countervailing Measures. 
283. Ukraine welcomes Canada's further decreasing of simple average applied MFN tariff from 
6.5% in 2006 to 5.4% in 2010.  At the same time, we see a high level of tariff protection in 
agricultural sector.  For certain agricultural products tariffs remain very high, particularly for dairy 
products, tariff escalation also present in certain i ndustries.  The existing tariff rate quotas (about 110 
tariff lines) and restricted out-of-quotas tariffs appear inconsistent with the WTO.  In this regard, we 
would like to ask how Canada plans to furthe r bring down trade barriers in agriculture. 
284. On import licensing requirements, the list of goods is very extensive.  Besides, Canada plans 
to expand SPS-related licensing to f ood products and ingredients.  C ould Canada explain the rationale 
for such measures and provide additional clarification on that. 
285. On excise taxes and duties, Ukraine would appr eciate Canada's clarification whether various 
tax breaks, excise tax reductions, exemptions, fe deral and provincial incentives are applied only to 
local producers of beer, wine, film, etc.  Ukraine also requests clarification concerning supporting 
programs for domestic businesses in such areas as investment;  R&D;  mineral exploration and  WT/TPR/M/246 
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  renewable energy.  In particular taking into account th at at the federal level, the excise duty rates on 
certain domestically brewed beer are lower th an on imported beer, and 100% Canadian wine is 
exempt.  Alcoholic beverages produced in Quebec benefit from lower provincial excise tax rates 
under certain conditions.  Ukraine asks to clarify wh ether the mentioned measures are fully consistent 
with the requirements of the SCM Ag reement and Article III of GATT 1994. 
286. Ukraine expresses its concerns also about Cr acking Down on Tobacco Marketing Aimed at 
Youth Act (Bill C-32 amendment to the Tobacco Act) in  the view of it possibly being more restrictive 
than necessary.  So we ask Canada to provide add itional information on its compliance with the TBT 
Agreement. 
287. Ukraine welcomes liberalization of the FDI re gime in services, undertaken by Canada over 
the review period.  At the same time, Ukraine is  seeking more clarification about current sector-
specific FDI restrictions.  In this regard, we w ould like to know about Canada's plans for further 
liberalization of regime for oversight and control of  FDI in services and elimination of sector-specific 
FDI restrictions. 
288. There are over 100 programs in support of Canada's agriculture and food-stuff.  What 
measures and reforms have Ca nada introduced or has plans to do so to make this highly protected area 
more market-oriented.  
EL SALVADOR 
289. At the bilateral level, El Salvador maintains close and significant relations of friendship with 
Canada, sharing that country's values of democrac y and freedom.  Its trade policy objectives provide 
us with security for the long and narrow path of rein forcement of our trade links.  In this connection, 
we would stress the ongoing rapprochement in the political, economic, trade, financial and 
cooperation fields, noting Canada's  important position as a country which has contributed to the 
development and growth of forei gn investment in El Salvador. 
290. This is evidenced by the negotiating process th at we have undertaken and which we hope to 
complete in the near future, particularly in view of  the potential benefits for both parties, especially in 
the areas of market access, rules of origin, institutional matters, services and investment, inter alia , 
and we therefore consider that our trade relations will be strengthened even further by the conclusion 
of the bilateral negotiations which we hope to finalize as quickly as possible. 
291. The foregoing is reflected in our commercial exchanges:  for example, in 2010 alone, 
El Salvador's exports to Canada were valued at US$67.7 million, making that country one of the ten 
main export destinations of El Salvador, and the trade balance has been positive for El Salvador, due 
to the dynamism of cane sugar exports. 
292. During this period, for example, El Salvador's exports to Canada were concentrated in a few 
sectors such as agro-industry and made-up articles, the main export items being sugar and coffee, while El Salvador's imports from Canada included such products as i ndustrial chemicals, apparatus, 
agro-industrial and engineering products. 
293. Despite the foregoing, with regard to the agricu ltural sector in particular, which is of vital 
importance to both countries, we note that the new agricultural policy framework of Canada, "Growing Forward", provides for a range of progra mmes which, in the light of the present Round of 
WTO negotiations, requires re-evaluation in our view. 
294. Finally, and still with reference to the bilateral context, we would draw particular attention to 
the Canadian Temporary Workers Programme, which for some years has benefited many Salvadoran WT/TPR/M/246 
Page 46  
 
  professional and manual workers.  We consider that this type of initiative sh ould be maintained and 
even extended so as to continue benefiting countries like El Salvador. 
295. With regard to this review exercise, and accord ing to the Secretariat Report, during the review 
period Canada has continued implementing the A dvantage Canada Programme , a long-term economic 
strategy aimed at promoting a stronger, more dynamic and globally competitive economy through the 
creation of various tax, regulatory, infra structure and other economic advantages. 
296. In that connection, one of the novelties of the Canadian import regime during the period 
under review has been the elimination of customs duties on a large number of tariff lines (manufacturing inputs, and machinery and equi pment, among others), so as to boost the 
competitiveness and productiveness of the manufacturing sector. 
297. Lastly, we wish to highlight the reference made in the Secretariat Report to the fact that its 
strong macroeconomic fundamentals have enabled Ca nada thus far to weather the global economic 
crisis without resorting to trade measures for th e increased protection of domestic production.  
Accordingly, we welcome the Canadian Government 's decision not to use protectionist measures in 
the context of the global ec onomic and financial crisis. 
298. On the multilateral front, we note in particular the active role played by the 
Canadian delegation during the pr esent Round of negotiations, in terms of sharing common objectives 
with regard to development issues and the expeditious  conclusion of this Round, results that would 
benefit all Members of this Organization, especially the developing countries. 
BARBADOS 
299. Both the Government and Secretariat Repor ts confirm the robust performance of the 
Canadian economy during the review period, for whic h we wish to congratulate Canada.  This is 
particularly notable against the backdrop of the gl obal economic and financial crisis that dominated 
the international economic landscape, since Canada's last review in 2007.  The Secretariat Report in 
fact highlights that it is thanks in part to its  strong macroeconomic fundamentals, that Canada 
weathered the global economic recession well, and moreover, without resorting to protectionist 
measures. 
300. We further note a number of measures taken to address the crisis, which facilitated a virtual 
return to recovery by June 2010, of GDP lo sses as well as unemployment suffered during the 
recession. 
301. Canada describes itself as a "trading country, w ith international commerce as the lifeblood of 
its economy".  This is well borne out through the generally outward looking measures pursued during 
the review period, and furthermore through the Global Commerce Strategy, aimed to expand 
Canadian access to global markets through trade and investment.  It is significant that the GCS seeks 
to consolidate the gains of Canada's current long-te rm economic strategy, Advantage Canada.  In this 
respect, one notable dimension of this policy has been focused on expanding the Government's Free 
Trade Agreement agenda, which includes ongoing negotiations with the Caribbean Community 
(CARICOM).  This FTA will replace CARIBCAN wh ich has been in place since 1986.  CARIBCAN 
is centred on trade in goods.  In an enhanced trad e and development agreement, it is expected that 
greater opportunities would be created to expand  trade in services especially in mode 4 for 
professionals. 
302. Barbados has a long-standing a nd durable economic relationshi p with Canada.  This is 
especially evident in financial services where Ca nadian banks are dominant in our commercial  WT/TPR/M/246 
 Page 47 
 
 
  banking arena as well as in international financial ser vices.  In addition, Canadian visitors are among 
the top five repeat tourists to Barbados' shores. 
303. While this trading relationship continues to be positive, we do share with some of the 
expressed concerns reflected in the Secretariat Report regarding barriers to internal trade and 
regulatory complexities, particularly in relation to services market access.  Nevertheless, this 
economic relationship is but one critical com ponent of our strong bilateral relations. 
304. At the multilateral level, Canada plays an important contributory role in development 
assistance for trade policy.  We particularly appreciate Canada's contribution to the Doha Development Agenda Global Trust Fund and increased  contribution to Aid for Trade, the latter which 
is particularly important to sustain in this recession recovery time period. 
305. Barbados appreciates the high level of engageme nt of Canada in the Doha negotiations and 
the overall multilateral trading system.  Barbados is heartened by Canada's commitment to the conclusion of the Doha Developmen t Agenda and moreover to the r ecognition and stated undertaking 
of Canada to see that Small Economies concer ns are taken into account towards the full 
implementation of the Small Economies Work Progr amme.  Barbados continues to look to Canada 
and other key players in the Doha negotiations to pl ay a leading role towards the fulfillment of this 
Round's core development objectives. WT/TPR/M/246 
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  V. REPLIES BY THE REPRESENTATIVE OF CANADA AND ADDITIONAL 
COMMENTS 
306. As I said in my opening remarks on Monday, the WTO is the cornerstone of Canada's trade 
policy, and international trade continues to be of cr itical importance for our prosperity. In this vein, I 
would like to thank all Members for their recogniti on of Canada's active par ticipation in the Doha 
Round negotiations and our commitment to the multilateral trading system.  
307. I would also like to restate Canada's commitmen t to the Trade Policy Review Mechanism. It 
is evident in the enthusiastic way in which Memb ers have engaged in both the oral discussion and in 
their submission of over 700 written qu estions (I am told that this may be a new per-capita record for 
questions received in a TPR), that the WTO Membersh ip as a whole seems to continue to believe in 
the value of this peer-review process.  It is clear that this is an importan t mechanism for encouraging 
Members to reflect on the impacts of their individu al trade policies on the international system. In 
addition to those received in writing earlier, Memb ers posed additional questions on Monday. Just as 
we have done with the first tranch e of questions, we will provide th e remaining answers in the days 
ahead. 
308. Canada is appreciative of the positive rec ognition offered by Members on the strength and 
resilience of the Canadian economy through the fina ncial and economic crisis, and the steps that we 
took, despite the crisis, to resist protectionism and unilaterally enhance market access to trade in 
goods and services. In particular, Members made re ference to our reduction of over 1,300 tariff lines 
in the manufacturing sector to zero, with an additiona l 381 lines set to be eliminated by January 2015. 
We are proud of our economic performance throughou t the period under review, and are pleased that 
Members have recognized the strength of the macr oeconomic foundations Canada has in place which 
have allowed us to perform so strongly.  
309. Members noted that Canada's productivity has been  seen to lag behind that of other developed 
countries. While our robust trade agenda seeks to contribute to an increase in productivity, I should 
note that Canada is in fact pursuing a comprehensiv e strategy in this regard.  In the Speech from the 
Throne on June 3, the Government of Canada announced a policy agenda to ensure long-term 
economic prosperity. This agenda focuses on pr omoting innovation by means of several key 
initiatives, such as promoting critical workforce sk ills, passing copyright legislation, promoting and 
encouraging research and development, and implementing a Digital Economy Strategy.  
310. We have listened carefully to the observations  made and the questions posed by Members 
during our discussions this week. In my remarks today I will address the broad themes which have 
emerged. 
311. Several Members have noted the robust bilate ral and regional trade agenda pursued by 
Canada during the period of review and suggested th at this may distract us from our multilateral 
obligations in the WTO.  In response to these concerns, I woul d like to reassure Members that our 
efforts to deepen bilateral economic  relationships with key trading pa rtners are not contradictory, but 
complementary, to our multilateral commitments. As  noted in our Global Commerce Strategy, Canada 
is committed to building a stronger, more competitiv e Canadian economy that will thrive in the future. 
To achieve this objective, we, like many other WTO Members, are intent on utilizing the full set of 
trade policy tools, including Free Trade Agreemen ts, Foreign Investment Promotion and Protection 
Agreements,  Science and Technology Cooperation Agre ements, and Air Services Agreements. 
312. Another issue raised by some Members concerne d notifications related to FTAs. I can advise 
that Canada notified both the Canada-EFTA Free Trade Agreement and the Canada-Peru Free Trade 
Agreement to the WTO Secretariat in 2009. I am al so very pleased to advise that since the session on  WT/TPR/M/246 
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  Monday, and in response to requests from several  Members to do so, we have notified the WTO 
Secretariat of the rules of origin in both of these Agreements.  
313. With regards to the points raised by Member s on the apparent complexity and fragmentation 
of the domestic market in Canada, the reality is that  Canada has a highly-integrated internal market.  
Large areas of the Canadian economy, including banking, telecommunications, shipping, and air 
transport, are under federal jurisdiction and thereb y under a single market regulatory regime. While 
some other areas are under wholly or shared responsibility with the provinces and territories, the integration of Canada's domestic ma rket is, and has always been, a priority for the Government of 
Canada.   
314. We continue to work closely with all provin ces and territories to strengthen the Agreement on 
Internal Trade, and have made significant progress in this regard during th e period under review to 
further remove barriers to labour mobility and agriculture trade, and to finalize a stronger 
government-to-government dispute resolution process.  Significantly, recognition of the value of 
ensuring an integrated domestic market is shar ed by provincial and territorial governments 
themselves.  Several provincial initiatives have been concluded to further liberalize internal trade and 
reduce barriers.  These include the New West  Partnership Trade Agreement between British 
Columbia, Alberta and Saskatchewan, New Brunswick  and Nova Scotia's Pa rtnership Agreement on 
Regulation and the Economy and the Trade a nd Co-operation Agreement between Québec and 
Ontario.  
315. Some Members have questioned certain elements of our foreign investment regime.   I have 
to say, that some of these comme nts appear to be overstated.  Canada recognizes the importance of 
open trade and investment flows and in doing so welc omes foreign investment for the many benefits it 
brings to the Canadian economy and Canadians. Inde ed the contribution of foreign direct investment 
to the Canadian economy is among the highest in the world.   
316. As an indication of our commitment to lib eralizing investment, Canada has 24 Foreign 
Investment Promotion and Protection Agreements which are currently in force, and we are actively 
negotiating eight additional agreements.  These ag reements are aimed at protecting and promoting 
foreign investment through legally-binding rights an d obligations. There are al so investment chapters 
in a number of preferential trade agreements that Canada has signed.  
317. Our regulatory framework, th e Investment Canada Act , provides for the review of significant 
investments in Canada in a manner that encour ages investment, economic growth and employment 
opportunities in Canada. The numbers speak for them selves: Industry Canada reviewed and approved 
on average 33 acquisitions per year between 2006 and 2010; one proposal was denied. Canadian 
Heritage reviewed an average of eight per year dur ing the same period, and denied one. Only very few 
significant transactions are subject to review.   
318. The Act  was recently amended to provide further tr ansparency into the review process, and 
the factors considered in the net benefit review under the Act  are clearly articulated in Section 20. In 
addition, amendments to raise the threshold for review  were recently enacted to ensure that only those 
investments that are most significant to the economy are subject to review under the Act, though these amendments are not yet in force. Furthermore, th e national security review process brings Canada in 
line with what other developed countries are doing to  safeguard their national security. We are clearly 
not unique in this regard. Canada will continue to ensure the application of the new national security 
mechanism is consistent with its international tr ade obligations and the best practices of other 
industrialized countries.  
319. I would also like to address the concern of some Members regarding the strength of our 
domestic intellectual property regi me, as we take the protection a nd enforcement of intellectual WT/TPR/M/246 
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  property rights very seriously. Canada's laws are in  full compliance with the TRIPS Agreement. That 
said, the Government of Canada has recently an nounced that it will introduce and seek swift passage 
of copyright legislation balancing the needs of crea tors and users. It will also modernize Canada's 
copyright laws and help to ensure copyright le gislation can address digital copyright issues. In 
addition, the Royal Canadian Mounted Police, the Canada Border Services Agency and other 
Canadian law enforcement agencies are committed to undertaking coordinated action to enforce 
intellectual property rights on all fronts.  
320. Several Members have again expressed their concern over recent amendments to Canada's 
Tobacco Act . The Government of Canada made changes to the Tobacco Act, prohibiting the sale of 
tobacco products containing prohibited additives, to protect young people from marketing practices 
that encourage them to smoke. Tobacco use cause 37,000 premature deaths annually in Canada, and is 
responsible for $4.4 billion in direct health care cost s. Canada's approach was deemed the best fit to 
address public health problems faced in Canada. To our knowledge, the measure has not had a 
significant impact on international trade. It is estim ated that less than one per cent of the Canadian 
market for cigarettes was impacted. In fact, to date , we are not aware of any American-style brands 
having been withdrawn from the Canadian market si nce the July 5, 2010 entry into force of the 
measure. 
321. With respect to agriculture, Canada is pleased to be recognized by members as a leader in 
global agricultural trade. We have a strong agricu lture sector with a high reliance on exports, and 
credit is due in part to the WTO and the stable and predictable rules-based trading regime it provides.  
322. Canada is a strong supporter of an amb itious and balanced outcome for agricultural 
negotiations under the Doha Developm ent Agenda. In addition, Canada supports a strong, transparent, 
and science-based approach in the development of in ternational rules and standards to help protect 
human, animal or plant life or health, while minimizing negative impacts to trade 
323. Our domestic support under the suite of Busin ess Risk Management programs continues to 
provide producers with financial tools to manage farm business risks, and is designed to benefit all 
agricultural sectors. These programs also recognize th at sustainable profitability must come from the 
market. 
324. Canada is moving forward to develop a ne w set of domestic agriculture policies under 
Growing Forward 2; and we intend to introduce legisl ation to ensure that Western farmers have the 
freedom to sell wheat and barley in the open market. 
325. Canada's existing policies on dairy and ot her supply-managed sectors aim to provide 
consumers with a secure and stable supply of high-qu ality products, while at the same time promoting 
stable farm income. Canada is well aware of its WT O obligations, and ensures that its policies are in 
compliance with them. Canada also maintains a tr ansparent and predictable import regime for supply-
managed products through low within-access tariffs and by administering its tariff rate quotas to 
maximize their fill rates.  
326. Canada's supply management system has served Canada well for many years and Canada has 
no plans to alter the system. Canada continues to strongly support the WTO in the agricultural 
negotiating group and in the work of the Committee on Agriculture. 
DISCUSSANT 
327. I will keep my comments very brief as I think the discussion on Monday has provided 
Members with a full opportunity to comment and ra ise questions about relevant developments in 
Canadian trade policy over the last four years.   WT/TPR/M/246 
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  328. Canada has been commended by Members for its  transparent trade policy regime and its 
resilience in coming through the global recession, and for not resorting to any new protectionist 
measures during this period. A number of specific unilateral liberalisation measures taken by Canada 
in the area of investment and in its manufact uring tariff policy have been acknowledged and 
welcomed by Members. 
329. At the same time, the questions posed by Members in the course of the review have 
highlighted a number of specific and more general concerns. In terms of specific concerns issues 
surrounding national treatment particularly in rela tion to excise taxes, ongoing requirements for WTO 
Members in the investment and services area s, as well as the questions around the trade-
restrictiveness of certain technical regulations and other mandatory measures have been raised. 
330. Two broader themes that are longstanding ones from earlier trade policy reviews – the issue 
of the progress being pursued to rationalise Canada's  internal market, and issues posed by Canada's 
dualistic agricultural policy – have been highlighted  again in the context of this ninth Review.  
Accordingly, looking ahead to Canada's tenth trade policy measures, these are areas where Members 
will be interested in hearing of further developments. 
EUROPEAN UNION 
331. The EU would like to thank Canada for the re plies to our numerous questions.  We do not 
have additional questions as such, but we do have a few follow-up questions on the replies, just to 
seek further clarification or more information.  The issues that our follow-up questions concern are 
the following:  1) Social Sustainable Impact  Assessment;  2) implementation procedures of 
obligations of an international treaty;  3) generic list of regulated pests for plant products;  4) local 
content requirements;  and 5) the procedures for fishing licenses.  We will submit these questions in 
writing to the Secretariat and we look forward for the replies in due time. 
PAKISTAN 
332. My question emanates from what Mr. Ready just  said about national security review.  If I 
rightly understood he said that this is in line with  other similar countries, and I would like to have 
some clarification on its basis.   
UNITED STATES 
333. We have some follow-up questions.  The first with  respect to a question that we asked, that it 
is pending some additional informa tion from the Provincial Government. 
334. We also have two other follow-up questions.  First, we appreciate the Government of 
Canada's response to our questions, we note that Ca nada did not answer Question 11(c) regarding re-
determination of tariff classification. The question was:  "During the re-determination period, if one 
entry was made above the Normal Value and anot her below the Normal Value, does the authority 
grant an offset between the two?  If yes, please explain how it is done and whether it is done on an 
importer-specific or exporter-specific basis?  If no offsets are granted, please explain why." 
335. Finally a follow-up to U.S. Question 18: "How  does the treatment of producers of generic 
pharmaceuticals and producers of innovative pha rmaceutical products compare under subsection 
55.2(1) and related regulati ons (R.S.C., 1985, c.P-4)?" 
336. We thank you again for explaining the pro cess through which brand companies can challenge 
a generic applicant's market entry prior to patent  expiry in a summary court proceeding, under the 
Patented Medicines (Notice of Compliance) Regulations .  What steps is Canada taking to ensure that WT/TPR/M/246 
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  both brand companies and generic companies have equitable access to an appeal process should a 
brand company lose a patent challenge to a generic manufacturer? 
SECRETARIAT 
337. I just have one very brief reaction to a ques tion that was raised by Ambassador de Mateo on 
Monday, asking why the bound and applied rates that we provide in the TPR report for agricultural 
products are so different from those that appear in  the World Trade Profiles.  Indeed you are correct, 
we understand that it is perhaps confusing, both set s of numbers are correct, it is all to do with the 
methodology that it is used to calculate them.  In  the case of the TPR reports we based them on eight 
digit tariff lines and in the World Trade Profile they  do not.  So we can provide, perhaps in future 
TPR reports, an explanation of the methodology so th is kind of confusion does not arise again.  But 
we acknowledge that it is not very helpful if Memb ers get two or three different sets of numbers from 
different sources. 
MEXICO 
338. So this means that Canada is among the most protectionists in the world?  WT/TPR/M/246 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
339. This ninth Trade Policy Review of Canada  has given us a better understanding of the 
country's recent economic, including trade, polic y developments and enabled us collectively to 
measure the challenges Canada currently faces in maintaining its economic prosperity.  Our candid 
discussion has proved more engaging thanks to  the full and open participation of the 
Canadian delegation, led by Mr. Robert Ready, Di rector-General of the Intellectual Property Office 
and the Office for Trade in Services, Department of  Foreign Affairs and International Trade, and by 
the insightful remarks made by the discussant, H.E. John Adank of New Zealand, as well as active 
participation by numerous Members. 
340. Canada's sound economic policies and its outwa rd-looking trade regime have enabled it to 
successfully weather the global financial crisis  and the ensuing economic recession.  Members 
congratulated Canada on its econom ic performance, welcomed the sustained reduction in the use of 
trade remedies, and praised its unilateral trade lib eralization initiative in the manufacturing sector, as 
well as its efforts to streamline national regulati ons.  They recognized that such reforms would 
contribute to greater competitiveness of Canadian products.  Nonetheless, gi ven Canada's sluggish 
productivity growth compared to ot her OECD economies, various Memb ers urged Canada to continue 
liberalizing its trade and investment regime , at both federal and provincial levels. 
341. Members appreciated Canada's active participa tion in the WTO and the constructive part it 
was playing in the DDA;  they also commended Canada  for its significant contribution to trade-related 
technical assistance and its non-reciprocal preferences for the developing countries. 
342. The numerous statements, questions and replies voiced in the course of this Review have 
highlighted the fact that there is room for furthe r streamlining of Canada's  trade and trade-related 
policies.  There are in fact a number of areas where reforms could be both beneficial to Canada and would help strengthen its international trade, whic h Canada itself acknowledged as being integral to 
its continued prosperity.  The Canadian authorities might give thought to improvements that could be 
made in the following spheres: 
 Domestic market fragmentation :  Members mentioned a series of matters subject to 
provincial jurisdiction which impact on inv estment and trade, and expressed concern 
regarding transparency and domestic market fragmentation, particularly in areas such as sub-federal state enterprises, financia l incentives, and financial and professional 
services. 
 
 Tariff structure :  Despite Canada's relatively low overall level of tariff protection, 
Members saw room for simplifying its tariff structure in the agricultural sector 
through the reduction of tariff peaks, the conversion of non- ad-valorem  rates to 
ad valorem duties, and the elimination of inc onsistencies between the bound and the 
applied rates. 
 
 National treatment :  Members recommended that Canada eliminate discriminatory 
internal taxes in order to fully comply wi th the WTO principle of national treatment. 
 
 Agricultural products :  Members asked Canada to consider replacing its supply 
management system with less market-disto rting alternatives, and to reform the 
management of its MFN and preferential tariff quota schemes in the interests of greater transparency. 
 WT/TPR/M/246 
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   Investment :  Members welcomed the streamlining of review thresholds in Canada's 
foreign investment regime, but questioned some aspects such as the criteria for 
qualifying net benefit as proof, the limitations  on property, the residence requirements 
for managers, the national security review provisions and the role of provincial 
governments.  They expressed the hope that Canada would consider further 
liberalization of its investment regime, inter alia , by eliminating local content 
requirements used for the purpose of  incentives.  Canada demurred. 
 
 SPS and TBT :  Members highlighted a number of weak points noted in connection 
with Canada's technical regulations an d sanitary and phytosanitary prescriptions, 
including risk assessment, accreditation criteria and insufficient coverage of sub-federal regulations in notifications to the WTO.  They requested greater 
transparency in Canada's SPS and TBT regimes. 
 
 Intellectual property rights :  Members encouraged Canada to modernize its 
intellectual property rights regime, particularly copyright. 
 
 Government procurement :  Members took note of the public procurement 
agreement concluded between the United St ates and Canada and enquired about plans 
to extend access to opportunities for sub-fede ral procurement on an MFN basis.  They 
also encouraged Canada to develop unif orm standards for MASH sector and Crown 
Corporations procurement. 
 343. In conclusion, this Review has confirmed th e important role played by Canada in the 
multilateral trading system, as evidenced by the la rge number of advance questions and statements 
made.  Once again, I thank the delegation of Cana da, the discussant and Members for contributing to 
an informative and interesting review.  I also wi sh to express my appreciation to the delegation of 
Canada for its oral and written responses during the m eeting.  We look forward to receiving Canada's 
outstanding responses within the coming month. 
 
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