Canada WT/TPR/S/246/Rev.1 
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 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Despite the global economic and financial crisis, Canada has taken steps to further liberalize 
its trade and investment regimes.  As a result of  its 2009 and 2010 budgets, tariff rates on 1,374 lines 
(manufacturing inputs, and machinery and equipment)  have been reduced to zero.  Consequently, 
Canada's simple average applied MFN tariff d ecreased from 6.5% in 2006 to 5.4% in 2010. 
2. Agriculture remains the most protected sector, with an average applied MFN tariff rate of 
22.5% (2.5% on non-agricultural products), based on WTO definition.  Under ISIC (Revision 2), 
applied MFN tariff rates average 7.1% in agriculture  (including livestock, forestry and fisheries), 
5.4% in manufacturing, and 0.2% in mining and quarrying.  The imposition of non- ad valorem  tariffs, 
mainly on agricultural products (the ad valorem  equivalents could not be calculated for 171 tariff 
lines, due to absence of imports of the concerned items), means that the overall average rate, in 
particular the level of tariff protection for agri cultural products, has likely been underestimated.  
Moreover, while the ongoing reduction of tariffs on ma nufacturing inputs to zero is likely to further 
decrease the overall level of average protection, it is  also likely to enhance positive tariff escalation, 
and thereby increase effective pr otection of certain industries. 
3. As at the time of Canada's previous review , the main indirect taxes are the federal and 
provincial sales taxes and excise taxes and duties.   For most provinces, the federal (GST) and 
provincial sales taxes have been harmonized;  Ontario and British Colombia implemented the 
Harmonized Sales Tax (HST) in 2010.  During the re view period, the GST has been reduced by one 
percentage point (to 5%).  The GST/HST is applie d on a national treatment basis.  However, at the 
federal level, the excise duty rates on certain domestically brewed beer are lower than on imported beer, and 100% Canadian wine is exempt.  Al coholic beverages produced in Québec benefit from 
lower provincial excise tax rates under certain conditions. 
4. There have been no major changes to Canada's  legal and institutional framework for trade 
remedies since its last Review.  Canada has used both anti-dumping and countervailing measures;  
definitive duties were imposed in ten and six case s, respectively.  Between mid-2006 and mid-2010, 
the number of measures in place for longer than 5 y ears increased from 22 to 29.   No safeguards have 
been imposed. 
5. Canada requires advance reporting of both imports and exports w ithin established timeframes.  
By the end of 2013, all imports mu st be reported electronically.  Programmes are in place to facilitate 
trade, particularly with the United States and Me xico.  Amendments to the Customs Act have given 
greater authority to CBSA officers to examine goods  within designated Customs Controlled Areas in 
order to prevent contraband.  Import licences are required for, inter alia , the administration of tariff 
quotas or to protect human health and safety.  The Canadian food safety system, including its food safety legislation and procedures, is being modernized within the framework of the Food and 
Consumer Safety Action Plan.  Canada is also  considering extending the scope of SPS-related 
licensing requirements for importers to a wide range of food products and ingredients.  The Cabinet 
Directive on Streamlining Regulation of April 2007  introduces a life-cycle approach to regulatory 
management, which applies to, inter alia, the development and implementation of technical 
regulations and SPS measures, as well as to their eval uation and review.  A num ber of specific trade 
concerns have been raised by WTO Members concerning, inter alia , Canada's revised legislation on 
tobacco products containing cer tain flavourings and additives. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 24 
  
 6. Canada's export control regime, essentially uncha nged (apart from technical amendments), is 
in place for health, safety, security, or environmen tal reasons, and often pursuant to international 
agreements.  Canada imposes export duties on manufactured tobacco products and on softwood 
lumber destined for the United States under the 2006 Softwood Lumber Agreement between the two 
countries. 
7. Official support to Canadian businesses is ava ilable in various configurations, with public 
funds being allocated and administered both at the federal and sub-federal levels.  Most initiatives 
tend to promote entrepreneurship, innovation, and regional development.  In addition, there are a 
number of programmes that focus on social and cult ural priorities or specific industries.  In some 
cases, federal and/or provincial support may be c ontingent upon local-content requirements, or be 
targeted at Canadian-controlled corporations.  At end 2010, Canadian entrepreneurs could qualify for 
financial assistance under 441 programmes, of whic h 112 also support export-oriented projects.  
Under the Business Credit Availability Program, a co mponent of Canada's response to the global 
financial crisis, access to financing for Canadian  businesses has been improved through new resources 
and flexibilities to Export Development Canada  (EDC) and the Business Development Bank of 
Canada (BDC), both Crown corporations  wholly owned by the Government. 
8. During the review period, Canada modified several provisions of its main competition law; 
relevant immunity and leniency programmes were  also fleshed out.  However, the legislative 
amendments did not take into account long st anding recommendations regarding sector-wide 
investigations and the scope of private litigation ri ghts.  In addition, Canada's competition regime 
continues to be undermined by numerous exemptions, particularly in connection to regulated conduct. 
9. The federal and provincial governme nts have full or partial owne rship interests in companies 
active in a range of industries.  Wholly-owned  enterprises, known as Crown corporations, may be 
expressly conferred with certain privileges and imm unities.  Crown corporations are exempted from 
the competition law if they are not in actual or potential competition with private companies in Canada.  Moreover, certain Crown corporations are exempted from federal and/or provincial taxes 
and charges, regardless of the nature (comme rcial or non-commercial) of their activities. 
10. Procurement in Canada is undertaken both at th e federal and provincial levels.  Canada is a 
signatory to the WTO Government Procurement Ag reement.  Until recently, provincial procurement 
was not included as part of Canada's internati onal commitments (both the GPA and FTAs).  As a 
result of a bilateral agreement between the Un ited States and Canada, provincial procurement 
opportunities are open to U.S. suppliers. 
11. While there have been no major changes to Ca nada's intellectual property statutes during the 
review period, related legislation and regulations have been modified  to enhance legal certainty and 
strengthening deterrence.  The price review process for patented medicines has also been fine-tuned. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Procedures 
12. The Canada Border Services Agency (CBSA) is  responsible for providing integrated border 
services.1  Its mandate is governed by the Canada Bo rder Services Agency Act and the Customs Act.2  
                                                      
1 The CBSA is under the portfolio of the Minister of Public Safety.  See also CBSA online information.  
Viewed at:  http://www.cbsa-asfc.gc.ca/menu-eng.html. Canada WT/TPR/S/246/Rev.1 
 Page 25 
 
 
 Importers of commercial goods must be registered with the Canada Revenue Agency.3  Canada does 
not have any laws or regulations relating to preshipment inspection.4 
13. The most significant change to customs procedures during the period under review was the 
initiation of the third phase of the Advance Comm ercial Information (ACI) programme, through 
amendments to the Customs Act in 2009.5  The objective of the ACI programme is to allow the CBSA 
to undertake risk assessments in advance of the arri val of imports into Canada as well as to facilitate 
trade.  Under the first two phases of the ACI, air and marine carriers were required to submit cargo 
and conveyance information electronically before arrival.6  Under the third phase, known as 
eManifest, all carriers, freight forwarders, and impor ters will be required to submit trade information 
in electronic form in advance of their shipments arriving in Canada.  Impl ementation of eManifest 
will take place over a transition period until end 2013.7 Once fully implemented pre-arrival 
information for goods must have been receive d by the CBSA within the timeframes set out in 
Table III.1.  CBSA import documentation requirements remain the same as at the time of Canada's 
previous review.8 
Table III.1 
Timeframes for submission of pre-arrival information by mode 
 Marine  Air Rail Highway 
Carriers:   electronic cargo, 
conveyance and crew/passenger information Cargo:  24 hours prior to loading or arrival 
depending on type and origin of goods Crew/conveyance:  24 or 96 hours prior to arrival 
 4 hours prior to arrival 
or at time of departure 2 hours prior to 
arrival 1 hour prior 
to arrival 
Freight forwarders:   secondary 
information 24 hours prior to loading or arrival 
depending on type and origin of goods 4 hours prior to arrival 
or at time of departure 
 2 hours prior to 
arrival 1 hour prior 
to arrival 
Importers:   advance electronic 
trade data 24 hours prior to loading or arrival 
depending on type and origin of goods 4 hours prior to arrival 
or at time of departure 2 hours prior to 
arrival 1 hour prior 
to arrival 
 
Source:  Information provided by the Canadian authorities. 
                                                                                                                                                                     
2 Customs Act.  Viewed at:  http://laws-lois.jus tice.gc.ca/PDF/Statute/C/C- 52.6.pdf;  and Canada 
Border Services Agency Act.  Viewed at:  http://laws.justice.gc.ca/en/c-1.4/. 
3 All importers of commercial goods are required to register with the Canada Revenue Agency for a 
business number, which includes an import/export account (RM account).  The business number must be 
inscribed on relevant customs documentation. 
4 Canada has made a notification to the WTO to this effect (WTO document G/PSI/N/1/Add.3, 
12 July 1996). 
5 These changes are included in Bill S-2 An Act to Amend the Customs Act, which received Royal 
Assent on 11 June 2009.  For a summary of these ch anges see:  http://www.cbsa- asfc.gc.ca/media/facts-faits/ 
070-eng.html;  and for more information on eM anifest, see:  http://www.cbsa-asfc.gc.ca/prog/ 
manif/menu-eng.html. 
6 Under Phase 1 (implemented in 2004), marine carri ers are required to tran smit marine cargo data 
electronically to the CBSA 24 hours prior to loading cargo  at a foreign port.  Under Phase 2 (implemented in 
2006), all air carriers and freight forwarders, where applic able, were required to transmit conveyance, cargo and 
supplementary cargo data electronically  to the CBSA four hours prior to arrival in Canada.  In addition, the ACI 
expanded marine requirements to include shipments loaded in the United States (CBSA online information.  
Viewed at:  http://www.cbsa-asfc.g c.ca/prog/aci-ipec/menu-eng.html). 
7 For further detail on the timeframe for implementati on of eManifest, see:  http://www.cbsa-asfc.gc.ca/ 
prog/manif/implementation-eng.html#a1. 
8 In most cases this consists of:  two copies of the cargo control document (CCD);  two copies of the 
invoice;  two copies of a completed Canada Customs Coding Form;  any import permits, health certificates or 
forms that other Federal Government departments require;  and a Certificate of Origin or Statement of Origin 
when necessary. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 26 
  
 14. The authorities confirmed that their risk manage ment model has not changed:  all requests for 
release of commercial shipments are reviewed a nd the frequency of examinations depends on the 
importer's compliance record, as well as the type of  goods being imported.  Goods examined more 
systematically include food products that may carry  disease, hazardous products or waste, chemicals 
or biological products, and supply-managed goods, to  ensure compliance with tariff quotas.  Around 
2% of shipments are physically examined. 
15. Amendments to the Customs Act in 2009 now enable CBSA officers to question and search 
persons as well as examine goods within designated Customs Controlled Areas (CCAs) in order to 
counteract smuggling.9  The authorities note that new CCA Regulations (which would specify how 
the CCA obligations and powers contained in the Customs Act will be administered) are currently 
waiting approval (January 2011).  Once approved, CCA  implementation will begin at the Lester B 
Pearson International Airport, Pierre Elliott Trudeau International Airport, and Vancouver 
International Airport. 
16. A number of programmes are in place to facilitate  trade and enhance security.  (Table III.2).  
The Frequent Importer Release System (FIRST), in oper ation at the time of Canada's last Review, was 
terminated in 2008, and the Container Security Initiative will be discontinued in 2011/12.  The 
authorities noted that a pilot project, Partners in  Compliance (PIC), has been launched to help 
businesses comply with the CBSA's trade programmes (tar iff classification, origin, and value), and the 
CBSA is in the process of developing a trusted trader strategy. 
Table III.2 
CBSA trade facilitation and border security programmes 
Programme Description 
Prearrival Review System 
(PARS) Importers may submit import documentation a maximum of  30 days prior to the goods' arrival in Canada.  
Shipments are released within minutes unless an examination is required. 72% of commercial imports are released under this option 
 
Customs Self Assessment 
(CSA) Expedited customs clearance and streamlined accounti ng and payment process for imported commercial 
goods by pre-approved importers from the United Stat es, and since 2009, from Mexico.  In 2010, CSA 
import accounted for 18% of commercial imports. 
 
Free and Secure Trade Program (FAST)  Joint initiative of CBSA and US Customs and Border Prot ection.  It is offered to importers, carriers, and 
registered drivers who have been approved under th e Canadian CSA and PIP programmes.  Participants 
may use Canada's FAST lanes located at four specific highway ports of entry. 
 
Partners in Protection (PIP) Creates partne rships between the CBSA and private companies to help secure the supply chain and 
enhance border security.  The CBSA reviews the part ner's security measures and provides guidance to 
address potential gaps.  Participants must undergo a risk assessment and demonstrate they meet 
programme requirements be fore being approved. 
 
 
Source:  CBSA online information.  Viewed at:  http://www.cbsa-asfc. gc.ca/menu-eng.html. 
17. Monetary penalties for infractions of the Customs Act, Customs Tariff, and licensing 
agreements are applied through the Administra tive Monetary Penalty System (AMPS) under the 
authority of the Customs Act.10  Penalties are levied in proportion to the type, frequency, and severity 
of the infraction.  From July 2007 to June 2010 there were just under 65,000 contraventions by 
                                                      
9 For a summary of the changes included in this Act, see:  http://www2.parl.gc.ca/Sites/LOP/ 
LegislativeSummaries/Bills_ls.asp?lang=E&ls=s2 &source=library_prb&Parl=40&Ses=2#removal. 
10 Some changes have been made to the AMPS regime as a result of a review.  These include changes 
to the penalty amounts, but not to th e way penalties are assessed.  See CBSA online information.  Viewed at:  
http://www.cbsa-asfc.gc.ca/publicati ons/cn-ad/cn10-002-eng.html;  an d http://www.cbsa-asfc.gc.ca/public 
ations/cn-ad/cn10-020-eng.html. Canada WT/TPR/S/246/Rev.1 
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 importers and carriers, representing a net penalty amount of just over Can$25 million.  The main 
contraventions by importers related to failures to  pay duties as a result of a required correction in 
valuation and a failure to correct tariff classification within the 90-day requirement.  The main carrier 
infraction was failure to report goods. 
18. Importers may ask for a review of CBSA decisions relating to tariff classification, origin or 
value for duty of imported goods.  Between 2007/08  and 2009/10 there were 7,318 requests for a 
re-determination of the tariff classification, origin or  value of duty.  Most requests related to tariff 
classification (70%), followed by origin (19%), and then valuation (11%).  With respect to outcomes 
of redress requests, 40% of requests were allowed in full, a further 8% were allowed in part, and the 
remaining 52% were rejected.11  Decisions resulting from the review may be appealed to the Canadian 
International Trade Tribunal;  the CITT's decision ma y be appealed to the Federal Court of Appeal. 
19. Importers may ask the CBSA for advance rulings  on classification, valuation, and origin.  
Requests must be made not less than 120 days befo re the proposed date of importation.  Advance 
rulings provided by the CBSA are binding.12 
(ii) Rules of origin 
20. Canada maintains both preferential and non-prefer ential rules of origin;  there have been no 
changes since Canada's previous Review.  MFN ( non-preferential) rules of origin are in place to, 
inter alia , distinguish MFN imports from those under the Ge neral Tariff (see section (iv)).  Goods are 
deemed to originate in a country that is a benefi ciary of the MFN Tariff if not less than 50% of the 
cost of production of the goods is incurred by the industry of one or more countries that are 
beneficiaries of the MFN Tariff, or by the industry of Canada.13 
21. Canada maintains preferential rules of origin under free-trade agreemen ts and unilateral tariff 
concessions (see Chapter II).  To benefit from the tariff concessions, the importer must supply to the 
Canadian authorities, upon request, certification that th e rules of origin have been met.  Depending on 
the particular agreement or tariff concession, certifica tion may be in the form of a certificate of origin, 
a statement on an invoice, or any other format agr eed to by the signatory parties.  None of these 
certificates or statements needs to be stamped or signed by a designated authority in the country 
benefiting from the preference.  
22. Under free-trade agreements, origin is largely based on a shift in tariff classification.  
Additional provisions in some of the agreements  include regional value content requirements;  
diagonal and bilateral cumulation;  de minimis  provisions;  short supply rules for fibre, yarn and 
fabric;  specific process requirements;  and value, volume or weight tests.  The rules of origin 
requirements are described in more detail in doc uments submitted to the Committee on Regional 
Trade Agreements.14 
                                                      
11 At the time of Canada's previous Review there were 10,577 requests for a re-determination of tariff 
classification, origin or value of duty;  48% were allowed in full and 15% in part. 
12 Customs Act Article 43.1 and Memorandum D11-11-3, April 2010, Advance Rulings for Tariff 
Classification.  Viewed at:  http://www.cbsa-as fc.gc.ca/publications/dm-md/d11/d11-11-3-eng.pdf. 
13 Memorandum D11-4-3, May 2008, Rules of Origin Respecting the Most Favoured Nation Tariff.  
Viewed at:  http://www.cbsa-asfc.gc.ca/ publications/dm-md/d11/d11-4-3-eng.pdf. 
14 See the WTO Secretariat Summary Fact Sheets and Factual Presentations for each of the FTAs as 
well as country communications to the Committee on Regi onal Trade Agreements.  These are available under 
Canada's country profile on the Regional Trade Agr eements Database.  Viewed at:  http://rtais.wto.org. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 28 
  
 23. Under the General Preferential Tariff (GPT), the Least-Developed Country Tariff (LDCT) 
and the Commonwealth Caribbean Countries Tariff (CARIBCAN), origin for goods that incorporate 
non-originating materials is based upon a certain percentage of the ex-factory price of the goods originating in beneficiary countries or Canada:  these percentages are lower for LDCT countries.
15  In 
2010, regulations were issued under the Customs Tariff exempting Haiti from the direct shipment 
requirements under the GPT and LDCT, given th e situation arising from the 2010 earthquake.  
Haitian-origin goods may instead be shi pped from a port in the Dominican Republic.16 
24. Under the tariff treatment agreements with Aust ralia and New Zealand, rules of origin are 
similar to Canada's MFN rules of origin.  Goods are deemed to originate in Australia if not less than 
50% of the cost of production is incurred by the in dustry of Australia or Canada and the goods were 
finished in Australia in the form in which they are imported into Canada.  The same formula applies 
to New Zealand.17 
(iii) Customs valuation 
25. Canada's customs valuation rules are contained in Part III of the Customs Act, as well as the 
Valuation for Duty Regulations, and other Canada Customs D-13 memoranda.18  There have been no 
substantial changes to the Act or Regula tions since Canada's previous review.19 
26. Importers must declare a value for all goods im ported into Canada.  Canada applies tariffs 
based on the transaction value of the goods, and wher e this method cannot be used, other methods are 
resorted to based on the hierarchy set out in the WTO Customs Valuation Agreement.  The CBSA has 
provided interpretations of the value for certain imports.20  Exchange rates are primarily based upon 
the latest exchange rate pr ovided by the Bank of Canada. 
27. Designated customs officers determine the customs value of imported goods, generally 
through a risk-based, post-importation verification of  importer's books and records;  they may also 
make re-determinations within four years.  Custom s officers must notify importers of their decisions 
and the rationale for them.  Importe rs may request a re-determination of the customs value within 90 
days, although this time limit may be extended under certain circumstances.  Decisions by the 
President of the CBSA may be appealed to the Canadian International Trade Tribunal (CITT) within 
                                                      
15 As outlined in Canada's previous Review, under the GPT and CARIBCAN, at least 60% of the 
ex-factory price of the goods must have been incurred in one or more GPT or CARIBCAN beneficiary country 
or Canada.  Except for certain textiles and apparel, under  the LDCT, at least 40% of the ex-factory price of the 
goods must have been incurred in one or more LDCT beneficiary country or Canada;  the 40% may include up to 20% of the ex-factory price of the goods from other GPT countries. 
16 Haiti Deemed Direct Shipment (General Preferential Tariff and Least Developed Country Tariff) 
Regulations, SOR/2010-58 (2010).  Viewed at:  http://can adagazette.gc.ca/rp-pr/p2 /2010/2010-03-31/html/ 
sor-dors58-eng.html. 
17 Memorandum D11-4-6, Rules of Origin for the New Zealand and Australia Tariff Treatments 
(February 2005).  Viewed at:  http://www.cbsa-asfc.gc.ca/publica tions/dm-md/d11/d11-4-6-eng.pdf. 
18 Valuation for Duty Regulations and D-13 memo randa.  Viewed at:  http://www.cbsa-asfc.gc.ca/ 
publications/dm-md/d13-eng.html. 
19 Some technical and housekeeping items were includ ed in the 2009 amendments to the Customs Act, 
but no substantial changes. 
20 Including used goods;  used automobiles, motor vehicles and other vessels;  goods sold in Canada 
while entered temporarily for convention and exhibitions ;  certain information-based products;  printed or 
lithographed matter or paper;  promotional material and computer software;  and imports to be used in the 
assembly, construction or fabrication of a facility or a machine sold on an installed contract basis (CBSA online 
information.  Viewed at:  http://www.cbsa- asfc.gc.ca/publications/dm-md/d13-eng.html). Canada WT/TPR/S/246/Rev.1 
 Page 29 
 
 
 90 days.  CITT decisions may be appealed to th e Federal Court of Appeal and, beyond that, the 
Supreme Court of Canada.  The authorities indicat ed that the most court challenges on customs 
valuation issues have concerned royalties and license fees (Article 8.1(c)), a nd the determination of 
which sale, in a series of sales, repr esents the sale for export (Article 1). 
(iv) Tariffs 
28. Canada levies customs duties on the f.o.b. value of  imports at the point of direct shipment to 
its customs territory.21  Its last Customs Tariff Act entered into force in January 1998, and there have 
been several amendments:  consolidated versions of the Customs Tariff are issued regularly by the 
Canada Border Services Agency (CBSA).22  Parliament has general authority to set tariff rates.  In this 
regard, budget implementation acts in 2008, 2009 a nd 2010 contained amendments to the Customs 
Tariff.  Amendments to the Customs Tariff to reduce the rates of duty on goods used in the production 
of other goods or the provision of services may also  be made through orders issued by the Governor 
General in Council, based on the recommendation of the Minister of Finance.23  Since 2007 there have 
been five such orders. 
29. Canada applies at least MFN tariff treatment to  all WTO Members.  The Democratic People's 
Republic of Korea does not receive MFN tariff treatment:  it is subject to the General Tariff, which is levied at 35% on all goods except those subject to MFN rates exceeding 35%, in which case the MFN 
rate is applied.  MFN tariff treatment was extende d to Libya in January 2009, which had previously 
been subject to the General Tariff.
24 
(a) Applied MFN tariff rates 
30. Canada's 2010 applied MFN Customs Tariff is based on the 2007 version of the Harmonized 
Commodity Description and Coding System (H S2007), and comprises 8,192 tariff lines at the 
HS 8-digit level.  Over the review period there has been substantial unilateral liberalization of tariffs 
on manufactured goods:   first, incrementally throu gh Orders eliminating tariffs on certain specific 
manufacturing inputs25;  then, as a result of the 2009 Budge t and resulting implementation Act, MFN 
duty rates were reduced to zero on 214 tariff lines relating to machinery and equipment.26  Thereafter, 
liberalization stemming from the 2010 Budget affect ed an additional 1,541 tariff lines relating to 
manufacturing inputs and machinery and equipm ent:  1,160 of these were reduced to zero in 
March 2010, and the remaining 381 are to be fully liberalized by January 2015.27  This tariff 
                                                      
21 Customs Act, Section 48(5). 
22 For the consolidated version of the Customs Ta riff for 2010, see:  http://www.cbsa-asfc.gc.ca/ 
trade-commerce/tariff-tarif/2010/01-99/tblmod-eng.html. 
23 Customs Tariff, Section 82. 
24 Order Amending the Schedule to the Customs Tariff (extension of Most-Favoured-Nation Tariff to 
Libya).  Order in Council P.C. 200 9-129, SOR/2009-24.  Viewed at:  h ttp://www.gazette.gc.ca/rp-pr/p2/2009/ 
2009-02-18/html/sor-dors24-eng.html. 
25 See the respective orders amending the Schedule to the Customs Tariff:  Order 2007-1, viewed at:  
http://www.gazette.gc.ca/archives/p2/2 007/2007-04-18/html/sor-dors65-eng.html;  Order 2007-2, viewed at:  
http://www.gazette.gc.ca/archives/p2/2007/2007-12-26/htm l/sor-dors300-eng.html;  Order 2008-1, viewed at:  
http://www.gazette.gc.ca/rp-pr/p2/2008/2008-05-28/html/s or-dors150-eng.html;  Orde r 2008-2, viewed at:  
http://www.gazette.gc.ca/rp-pr/p2/2008/2008-12-24/html/s or-dors321-eng.html;  Orde r 2009-1, viewed at:  
http://www.gazette.gc.ca/rp-pr/p2/2009/200 9-06-10/html/sor-dors153-eng.html. 
26 Bill C-10, Part 3.  Viewed at:  http://www2.parl.gc.ca/content/hoc/Bills/402/Government/ 
C-10/C-10_4/C-10_4.pdf. 
27 Bill C-9:  An Act to implement certain provisions  of the budget tabled in Parliament on March 4 
2010 and other measures.  Viewed at:  http:/ /www2.parl.gc.ca/content/hoc/Bills/403/Government/ 
C-9/C-9_1/C-9_1.PDF. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 30 
  
 liberalization has also affected other tariff treatme nts where applicable (see below).  As emphasized 
by the authorities these measures have created a tariff-free zone for manufacturing inputs and 
machinery and equipment.  The stated primary aim of  this initiative is to enhance the competitiveness 
and productivity of Canadian ma nufacturers, but Canada has highl ighted that it also constitutes 
concrete actions to open global markets.28 
31. Tariff changes to certain alcoholic beverag es took place during WTO consultations between 
the European Union and Canada.29  Tariffs have been eliminated on certain active ingredients and 
intermediates used in the manufacture of pharmaceu ticals in Canada under th e WTO's Pharmaceutical 
Understanding.30  The length of time for which temporar ily imported containers may remain in 
Canada without attracting customs duties as well as other charges has been extended. 
32. In addition, the tariff treatment of milk protei n substances has been modified (Chapter IV(2)). 
33. The tariff consists of 96.6% of ad valorem  lines, including duty-free lines (Table III.3).  
Of the 3.4% (or 282) non- ad valorem  lines, 87 carry specific tariffs;  43 compound tariffs;  
143 mixed/alternate rates;  and 9 have other types of  tariff.  As noted in Canada's previous Review, 
almost all non- ad valorem  lines correspond to agricultural products (WTO definition). 
34. Tariff quotas, which relate to agricultura l products, cover 2.2% of tariff lines31 (Table III.3). 
Table III.3 
Structure of applied MFN tariff, 2006 and 2010 
(%) 
  2006 2010 
1. Bound lines (incl. partially bound) 99.7 99.5 
2. Duty free tariff lines (% of all tariff lines) 52.7 68.6 
3. Non- ad valorem  tariffs (% of all tariff lines) 3.8 3.4 
4. Tariff quotas (% of all tariff lines) 2.1 2.2 
5. Non- ad valorem  with no AVEs (% of all tariff lines) 0.5 2.1 
6. Simple average tariff rate 6.5 5.4 
 Agricultural products (WTO definition) 22.4 22.5 
 Non-agricultural products (WTO definition)a 3.8 2.5 
 Agriculture, hunting, forestry and fishing (ISIC 1) 7.4 7.1 
 Mining and quarrying (ISIC 2) 0.7 0.2 
 Manufacturing (ISIC 3) 6.5 5.4 
7. Domestic tariff "peaks" (% of all tariff lines)b 1.8 5.7 
8. International tariff "peaks" (% of all tariff lines)c 6.5 6.4 
9. Overall standard deviation of applied rates 25.3 25.7 
10. "Nuisance" applied rates (% of all tariff lines)d1.0 0.6 
 
a Excluding petroleum. b Domestic tariff peaks are defined as rates exceeding thr ee times the overall average applied rate (indicator 6). 
c International tariff peaks are defined as those exceeding 15%. 
d Nuisance rates are those greater than zero, but less than or equal to 2%. 
 
Source:  WTO Secretariat calculations , based on data provided by the Canadian authorities. 
35. For analytical purposes, the ad valorem  equivalents (AVEs) of non- ad valorem  tariffs have 
been calculated for 111 lines where import price data was available.32  However, it was not possible to 
                                                      
28 WTO document G/MA/W/101, 19 April 2010. 
29 Order Amending the Schedule to the Customs Tariff (Wine and Beer).  Viewed at:  
http://www.gazette.gc.ca/rp-pr/p2/2008/200 8-12-24/html/sor-dors313-eng.html. 
30 Order Amending the Schedule to the Customs Tari ff (Pharmaceutical Understa nding).  Viewed at:  
http://www.gazette.gc.ca/archives/p2/2007 /2007-06-27/html/sor-dors141-eng.html. 
31 The WTO standard methodology for analysing a tariff that contains tariff quotas is to consider only 
the out-of-quota rates. Canada WT/TPR/S/246/Rev.1 
 Page 31 
 
 
 estimate the ad valorem  equivalents of 171 tariff lines due to the absence of imports 
(see Table AIII.7).  In addition, for some non- ad valorem  tariffs with ad valorem  components, only 
the ad valorem  components (which represent minimum rates) have been taken into consideration.  
This, together with the exclusion of products fo r which no AVEs could be calculated, is likely to 
underestimate the calculated tariff averages hereunder. 
36. Subject to these limitations, Canada's simple average applied MFN tariff was 5.4% in 2010, 
down from 6.5% in 2006.  The coefficient of variation of 4.7 indicates high tariff dispersion, from zero-532.2%:  some 68.6% of tariff lines are duty free (up from 52.7% at the time of its last review);  and most dutiable tariff lines fall within the 5- 10% range, with 2% of the total exceeding 20% 
(Chart III.1).  Agriculture is the most tariff prot ected:  the average applie d tariff for agricultural 
products (WTO definition) in 2010 was 22.5%, similar to at the time of Canada's previous review 
(22.4%);  and the average for non-agricultural products was 2.5% (down from 3.8% in 2006).  Using the ISIC definition, the simple average applied MFN tariffs were 7.1% for agriculture including 
livestock, forestry and fisheries;  0.2% for mi ning;  and 5.4% for manufacturing (Table AIII.1). 
(68.6%)
(5.4%)(16.5%)
(2.9%)(4.7%)
(0.3%) (0.1%) (0.0%) (0.0%) (0.0%)(1.3%)(0.3%)
01,0002,0003,0004,0005,0006,000
Duty
Free>0-5 >5-10 >10-15 >15-20 >20-25 >25-30 >30-35 >35-40 >40-45 >45 empty b0102030405060708090100Chart III.1
Frequency distribution of MFN tariff rates, 2010
Number of tariff linesa
Per cent
Cumulative % (right-hand scale)
Number of lines (% of total)
The total number of lines is 8,192.
There are 6 lines with no rates and 20 lines with specific rates where AVEs could not be calculated.
WTO Secretariat calculations, based on data provided by the Canadian authorities.a
b
Source :
 
37. In aggregate, the tariff depicts mixed escalation:   the average applied rate for semi-processed 
products is lower than for raw materials and the average for fully-processed products is higher than 
the average for raw materials a nd semi-processed products (Table AIII.1).  In specific industries, 
however, positive tariff escalation is prevalent, meaning that there are high rates of effective 
                                                                                                                                                                     
32 Ad valorem  equivalents of non- ad valorem  duties were calculated using import price data. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 32 
  
 protection.  This, for example, is the case of food a nd beverages;  textiles and apparel;  and, chemicals 
and plastics (Chart III.2). 
0.05.010.015.020.025.030.035.0
Raw materials Semi-processed Fully processedChart III.2
Tariff escalation by ISIC 2-digit industry, 2010
Per cent
Source : WTO Secretariat estimates, based on data provided by the Canadian authorities.Food, 
beveragesTextiles, 
apparelWood productsPaper,
printingChemicals, 
plasticsNon-metallic 
mineral 
productsBasic metal 
productsFabricated 
metal 
products NOT APPLICABLENOT APPLICABLE
Other 
manufacturing
 
(b) WTO bindings 
38. Canada has bound all but 24 tariff lines in Chapters 1-97.33  The unbound lines cover mineral 
oils and fuels and electrical energy (12 lines under th e HS chapter 27);  cruise ships, tankers, tugs, and 
drilling and platform ships (11 lines under the HS chapter 89);  and postage stamps (HS 9704.000).  
The average bound tariff rate is 7.8%, compared  to an average applied MFN rate of 5.4%. 
39. Due to the differences in nomenclature betw een Canada's bound rates (still in HS 2002) and 
applied rates (HS 2007), certain tariff rates cannot easily be compared.34  On apple juice, Canada's 
applied rate is mixed/alternate with an estim ated AVE of 9.9%, while the bound rate is ad valorem  
(8.5%).35  For five tariff lines, the bound rate is slight ly lower than the applied rate, which would 
appear to be due to the rounding up of decimal points in the latter (Table III.4).36  For one additional 
tariff line, the MFN rate is ad valorem  while the bound rate is mixed, and the AVE of the 
non-ad valorem  component of this line could not be calculated.37  The inconsistency between the 
                                                      
33 In addition, two lines are partially bound:  2710.1910 and 2710.9910. 
34 Some 69.4% of Canada's MFN tariff was st rictly comparable with its bound tariff. 
35 Tariff line:  2009.7110. 
36 Tariff lines:  0207.2512;  0408.1920;  0408.9920;  5302.1920;  and 1602.3214. 
37 Tariff line:  16023991. Canada WT/TPR/S/246/Rev.1 
 Page 33 
 
 
 bound and applies rate on warships, highlighted in Ca nada's previous Review, has been eliminated.  
Canada's bound tariff has since been certified. 
Table III.4 
Tariff lines where applied rates exceed bound rates, 2010 
MFN HS code Description MFN Bound 
  Rate AVE Rate AVE 
0207.2512 Canner pack, of turkeys, 
(OOQT) 154.5% but not less 
than $2.11/kg 211.0 154.7% but not 
< 210.7¢/kg 210.7 
0408.1920 Other egg yolks, 
(OOQT) $1.52/kg 53.7 151.7¢/kg 53.6 
0408.9920 Other eggs, (OOQT) $1.52/kg 44.8 151.7¢/kg 44.7 
1602.3214 Other prepared meals, 
(OOQT) 253% but not less than 
$10.54/kg 295.12 253.2%, but not 
< 1,053.8¢/kg  
2009.7110 Reconstituted apple juice 9.35 c/l but not less 
than 8.5% 9.9 8.5%  
3502.1920 Other egg albumin, 
(OOQT) $1.52/kg 168.9 151.7¢/kg 168.6 
 
Note: OOQT refers to Out of quota tariff. 
 
Source: WTO Secretariat estimates, based on data provided by the Canadian authorities. 
(c) Preferential tariffs 
40. Tariff preferences may be granted by Canada e ither in the context of preferential trade 
agreements or unilaterally. 
41. Since Canada's previous Review, new FTAs ha ve entered into force with European Free 
Trade Association members (Iceland, Norway, Switzer land, and Liechtenstein) a nd Peru (Chapter II).  
While the simple average MFN tariff rate is 5.4%, si mple average rates for Canada's preferential tariff 
partners range from 2.6% (Mexico and the United States) to 5.2% (Australia and New Zealand) 
(Tables AIII.2 and AIII.3).38  There has been no further tariff liberalization under any of Canada's 
agreements, except for MFN tariff reductions impl emented on manufacturing inputs (see above);  
these mainly affected the New Zealand and Australia tariff treatments. 
42. Under the Canada-Peru FTA, the vast major ity of tariffs were reduced to zero upon 
implementation, and most remaining tariffs are to be reduced to zero by 2015.  However, 110 tariff 
lines, including supply-managed products, i.e. dairy,  poultry and eggs have been excluded by Canada 
from tariff elimination.  Refined sugar products are subject to preferential tariff quotas.  The final 
average tariff on the 110 dutiable lines is 228.7%.39 
43. Under the Canada-EFTA FTA, all customs duties on non-agricultural products were 
abolished upon entry into force, except for tariffs on ships, boats and floating structures (to be phased 
out over 10 or 15 years) and some fish and marine  products.  There is a positive list of processed 
agricultural products for which tariffs have been reduced or eliminated.  Liberalization of basic 
                                                      
38 For further details on Canada's FTA's in force at the time of Canada's previous Review, see:  WTO 
document WT/TPR/S/179/Rev.1, 4 June 2007. 
39 WTO document WT/REG270/1, 19 July 2010;  and DFAIT online information.  Viewed at:  
http://www.international.gc.ca/trad e-agreements-accords-commerciaux/ assets/pdfs/fs-market_access-acces_ 
marche-en.pdf. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 34 
  
 agricultural products are the subject of individual agriculture agreements between Canada and the 
respective EFTA members (with Switzerla nd and Liechtenstein taken together).40 
44. Unilateral tariff preferences are granted under the General Preferential Tariff (GPT);  the 
Commonwealth Caribbean Country Tariff (CARIBC AN);  and the Least-Developed Country Tariff 
(LDCT).41  The GPT and LDCT have been extended until June 2014, and the CARIBCAN until 2011. 
45. Resulting from the tariff reductions on manufactur ing inputs (see above), tariffs have been 
reduced to zero on a number of GPT tariff lines.  GPT entitlement was withdrawn from Belarus in 
2007.42  In 2010, the simple average tariff was 4.6% under the GPT, 4.0% under CARIBCAN, and 
2.6% under the LDCT (Table AIII.4). 
(d) Tariff remissions 
46. Section 115 of the Customs Tariff grants the Governor in Council (on the basis of a 
recommendation by the Minister of Finance or th e Minister of Public Safety and Emergency 
Preparedness) the authority to grant customs duty remissions, through the issuance of orders.  The 
authorities indicated that the intention of this provis ion is to allow the Government to respond quickly 
and selectively in providing remedies in particular s ituations where the application of general laws 
and regulations is having uninte nded and undesirable consequences.  Tariff remissions are generally 
proposed in situations where it is not appropriate to  provide relief by statutory tariff amendments or 
other Order in Council authority under the Customs Tariff. 
47. The authorities noted that tariff remission app lications are handled on a case-by-case basis.  
The CBSA takes the lead on cases where administrativ e circumstances form the basis of the remission 
request, such as administrative error;  and the De partment of Finance takes the lead on remission 
requests involving tariff policy.  Applications are ma de to the International Trade Policy Division.  In 
2009/10, the total value of tariff remissions gr anted under Section 115 of the Customs Tariff was 
Can$89 million.43  Eight new tariff remission orders have  been issued since 2007 (Table III.5). 
48. Remissions may also be granted in the "public interest" under authority of Section 23 of the 
Financial Administration Act.  According to the aut horities, this has rarely been used since direct 
remission authority for customs, anti-dumping a nd countervailing duties was introduced into the 
Customs Tariff in 1988. 
                                                      
40 WTO document WT/REG271/1, 25 June 2010. 
41 For a list of countries benefiting from unilateral preferences, see CBSA online information.  Viewed 
at:  http://cbsa-asfc.gc.ca/trade-commerce/tari ff-tarif/2011/01-99/countries-pays-eng.pdf. 
42 CBSA online information.  Viewed at:  http://w ww.cbsa-asfc.gc.ca/publica tions/cn-ad/cn07-021- 
eng.html. 
43 Government of Canada online information.  Viewed at:  http://www.tpsgc-pwgsc.gc.ca/recgen/ 
pdf/51-eng.pdf (2010). Canada WT/TPR/S/246/Rev.1 
 Page 35 
 
 
 Table III.5 
Tariff remissions, 2007-10 
Import remission granted/extended/amended Regulation 
Floating production platform for the Deep Panuke  Offshore Gas Development Project off the 
Nova Scotia coast 
 SOR/2007-299 (2007) 
A ferry by British Columbia  Ferry Services Inc 
 SOR/2007-151 (2007) 
Apparel from a GPT beneficiary country containi ng Canadian textiles (full or partial remission) 
 SOR/2008-138 (2008) 
Certain peaches and cherries imported by Kraft Canada Inc. 
 SOR/2008-236 (2008) 
Extension for a further 5 year period (until 201 4) for mobile offshore drilling units (over the 
period 2004-14) for exploration, de lineation or development activities 
 SOR/2009-129 (2009) 
All cargo vessels and tankers as well as ferries of  a length of 129 metres or more (previously 
remissions for these vessels were granted on a case-by-case basis) 
 SOR/2010-202 (2010)) 
Two tankers by Algoma Central Corporation and f our ferries by British Columbia Ferry Services 
 SOR/2010-203 (2010) 
Amended 
  
Tailored collar shirts;  outerwear apparel;  and, blouses, shirts and coordinates 
 SOR/2008-256 (2008) 
 
Source: Information provided by the Canadian authorities.  Viewed at:  http://www. gazette.gc.ca;  a nd Department of 
 Finance Canada online informat ion.  Viewed at:  http://www. fin.gc.ca/n10/data/10-089_1-eng.asp. 
(v) Other duties and charges affecting imports 
(a) The GST/HST and provincial sales taxes 
49. The Goods and Services Tax (GST), levied under the Excise Tax Act, is Canada's largest 
indirect tax by revenue.44  It generated Can$27 billion in 2009/10 , representing 66% of total indirect 
tax revenue, and 12% of tota l federal budgetary revenue.45  It applies to most goods and services at a 
rate of 5% (down from 6%, effective January 2008). 
50. In Ontario, Nova Scotia, New Brunswi ck, British Columbia, and Newfoundland and 
Labrador, the provincial sales tax has been harmoni zed with the GST (Ontario and British Columbia 
harmonized it with the GST on 1 July 2010).  Th e resulting Harmonized Sales Tax (HST) comprises 
the 5% GST, plus a provincial component, the rate of which varies according to the province 
(Table III.6).  The GST/HST is payable on the tari ff-inclusive value of impor ted goods and most other 
duties and taxes imposed on goods.  It is collect ed by the Canada Revenue Agency and Canada 
Border Services Agency, and the Federal Government  distributes the provincial component back to 
the respective provinces.  Agreements between the Federal Government and the provinces of Ontario, 
Nova Scotia, and British Columbia provide these pr ovinces with the flexibility to designate a limited 
number of point-of-sale rebates of their provincial component of the HST.  The application of the 
GST/HST does not discriminate between domestic and foreign suppliers.  Effective from July 2010, 
Nova Scotia increased its component of the HST by 2 percentage points. 
51. A provincial sales tax is levied by Manitoba a nd Saskatchewan, calculated on the selling price 
before the GST is applied;  and by Québec and Pr ince Edward Island, calculated on the selling price 
including the GST.  These provinces do not apply th e HST.  The province of Alberta does not levy a 
                                                      
44 Excise Tax Act.  Viewed at:  http://la ws. justice.gc.ca/PDF/Statute/E/E-15.pdf. 
45 Department of Finance Canada Fiscal Reference Tables, October 2010.  Viewed at:  http://www.fin 
.gc.ca/frt-trf/2010/frt-trf-10-eng.pdf. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 36 
  
 sales tax, nor do the Northwest Territories, Yukon, or Nunavut.  Different exemption regimes apply 
under each of the provincial sales tax regimes, some fo r social policy reasons, and others to encourage 
commercial activities such as farming, aquaculture, manufacturing, and mining.46 
Table III.6 
GST/HST and Provincial Sales Tax rates, January 2011 
Province/territory GST rate Provincial component 
of HST Provincial Sales Tax Total 
Alberta 5% n.a. none 5% 
British Columbia 5% 7% n.a. 12% 
Manitoba 5% n.a. 7% 12% 
New Brunswick 5% 8% n.a. 13% 
Newfoundland and 
Labrador 5% 8% n.a. 13% 
Northwest Territories 5% n.a. none 5% 
Nova Scotia 5% 10% n.a. 15% 
Nunavut 5% n.a. none 5% 
Ontario 5% 8% n.a. 13% 
Prince Edward Island 5% n.a. 10% 15% 
Québec 5% n.a. 8.5% 13.925%a 
Saskatchewan 5% n.a. 5% 10% 
Yukon 5% n.a. none 5% 
 
n.a. Not applicable. 
 
a In this case the PST applies to the federal tax inclusive value. 
 
Source:  Canada Revenue Agency online inform ation.  Viewed at:  http://www.cra- arc.gc.ca/tx/bsnss /tpcs/gst-tps/rts-
 eng.html. 
(b) Excise taxes and duties 
52. Federal excise duties on beer are imposed  as production levies on domestic and imported 
products under the Excise Act.47  Beer made by domestic brewers is eligible for reduced, tiered excise 
duty48;  imported beer is not eligible.  The re gular rates range from Can$2.591 to Can$31.22 
per hectolitre, depending on the alcohol content. 
53. Federal excise duties on wine are imposed unde r the Excise Act 2001.  The rates range from 
Can$0.0205 to Can$0.62 per litre depending on th e alcohol content.  Wine made from 100% 
Canadian-grown agricultural or planted products (inc luding cider, wine cooler s, fruit wines,  and sake) 
packaged on or after 1 July 2006 is exempt from excise duties.  Evidence of 100% Canadian composition must be provided when claiming the exemption.
49 
                                                      
46 For a list of exemptions to the Prince Edwa rd Island Revenue Tax, see http://www.gov.pe/ 
ca/photos/original/pt_rtn113.pdf;  for the Manitoba Retail Sales Act see:  http://web2.gov.mb.ca/laws/statutes/ 
ccsm/r130e.php;  and for the Saskatch ewan Provincial Sales Tax Act (Article 8(1)), see:  http://www.qp. 
gov.sk.ca/documents/English/Statutes/Statutes/P34-1.pdf. 
47 Excise Act.  Viewed at:  http://laws.justice.gc.ca/eng/E-14/index.html. 
48 Excise Duty Notice EDBN8, July 2006.  View ed at:  http://www.cra-arc.gc.ca/E/pub/em/edbn8/ 
edbn8-e.pdf. 
49 Excise Duty Notice EDN11 May 2006.  Viewed  at:  http://www.cra-arc.gc.ca/E/pub/em/edn11/ 
edn11-e.pdf;  and Excise Duty Notice EDN15 June 20 06.  Viewed at:  http://www.cra-arc.gc.ca/E/pub/em/ 
edn15/edn15-e.pdf. Canada WT/TPR/S/246/Rev.1 
 Page 37 
 
 
 54. Federal excise duties on tobacco and spirits are also imposed under the Excise Tax Act 2001 
(Table III.7);  in addition, special duties are levied on imported manufactured tobacco delivered 
unstamped to a duty free shop, travellers tobacco, and tobacco products manufactured in Canada and 
exported, as well as on imported spirits deliv ered to or imported by a licensed user. 
55. Federal excise duties are complemented by fe deral excise taxes imposed under the Excise Tax 
Act as sales levies.  The following goods carry fede ral excise taxes:  petroleum products (rates range 
from Can$0.04 to Can$0.11 per litre)50;  fuel-inefficient vehicles (from Can$1,000 to Can$4,000 
depending on fuel consumption rates);  and automotive air conditioners (Can$100).51 
Table III.7 
Products subject to excise du ties under the Excise Act, 2001 
Product Tax rate 
Cigarettes Can$0.374875 to Ca n$0.425 for each five cigarettes or frac tion of any five cigarettes (packaged) 
Tobacco sticks Can$0.07497 5 to Can$ 0.085 per stick 
Cigars Can$18.50 per 1,000 cigars plus the greater of $0.067 per cigar or 67% of the sales price for cigars 
manufactured in Canada or the dut y paid value of imported cigars 
Raw leaf tobacco Can$1.572 per kg 
Other manufactured tobacco Can$2.49 915 to Can$2.8925 per 50 grams or fr actions of 50 grams (packaged) 
Spirits Can$11.696 per litre of absolute ethyl alcohol c ontained in the spirits;  Can$0.295 per litre for spirits 
containing not more than 7% ab solute ethyl alcohol by volume 
Wine Can$0.0205 per litre for wine containing not more th an 1.2% of absolute ethyl alcohol by volume;  
Can$0.295 per litre for wine containing more than 1. 2% of absolute ethyl alcohol by volume but not 
more than 7%;  and Can$0.62 per litre for wine contai ning more than 7% of absolute ethyl alcohol by 
volume 
 
Source:  Excise Act 2001.  Viewed at:  http://l aws.justice.gc.ca/en/E-14.1/index.html. 
(c) Provincial taxes 
56. All provinces levy tobacco and fuel taxes (T able III.8).  In addition, Saskatchewan and 
Québec levy taxes on alcoholic beverages.  Québ ec and Prince Edward Island levy duties on new 
tyres and British Columbia levies duties (under its Carbon Tax) on tyres and peat.  All these duties are consumption taxes and are applied equally to imports and domestic pr oduction, with the exception of 
the alcohol tax imposed by Québec.  Alcoholic be verages produced in Québec benefit from lower 
rates under certain conditions.  Va rious commercial operators benef it from fuel tax exemptions or 
rebates, including manufacturers, miners, farmers,  fishermen, and persons involved in forestry. 
                                                      
50 With respect to fuels, an excise tax exemption fo r renewable fuels was elimin ated effective in April 
2008 (CRA online information.  Viewed at:  http ://www.cra-arc.gc.ca/E/pub/e t/etsl70/etsl70-e.pdf). 
51 CRA online information.  Viewed at:  http://w ww.cra-arc.gc.ca/E/pub/et/currate/currate-e.pdf. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 38 
  
 Table III.8 
Selected provincial tax rates, January 2011 
Province Tax Tax rate(s) Source 
Alberta Tobacco tax Can$0.20 cents per cigarett e or tobacco stick;  cigars:  103% of 
taxable price (minimum Can$0.20 cents per cigar, and maximum Can$6.27 per cigar);  Can$0.30 cents per gram of 
other tobacco 
 http://www.qp.alberta.ca/ 
documents/Acts/T04.pdf 
 Fuel tax Rates per litre:  aviati on gas and jet fuel, Can$1.05 cents;  
gasoline, Can$0.09 cents;  diesel, Can$0.09 cents;  ethanol and 
biodiesel, Can$0.09 cents;  liquid petroleum gas, Can$6.05 cents;  locomotive fuel, Can$1.04 cents;  and bunker 
fuel, kerosene, methanol, a nd condensate, Can$0.09 cents 
 http://www.qp.alberta.ca/574.cf
m?page=F28P1.cfm&leg_type=
Acts&isbncln=9780779752515 
British 
Columbia Tobacco tax Cigars: 77% of taxable price (maximum $6.00 per cigar); 
Can$18.5 cents per cigarette, tobacco or gram of loose tobacco http://www.bclaws.ca/EPLibrarie
s/bclaws_new/document/ID/ 
freeside/00_96452_01  
 Carbon tax Liquid fuels, between Can$2.18 cents to Can$6.30 cents per 
litre;  gaseous fuel, betw een Can$1.96 cents, and Can$3.52 
cents per litre, and between Can$3.22 and Can$3.80 cents per 
cubic metre;  solid fuels, Can$35.54 to Can$49.74 per tonne;  
petroleum coke, Can$7.34 cents pe r litre.  Combustibles – i.e. 
tyres and peat, Can$20.44 to Can$47.82 per tonne.  http://www.sbr.gov.bc.ca/msbr/ 
budget/consumer_taxes.htm 
 Motor fuel 
tax  ..  
Manitoba Tobacco tax Cigare ttes, Can$20.05 cents or Can$41 per carton;  cigars, 75% 
of retail selling price with a ma ximum of Can$5 per cigar;  raw 
leaf tobacco, Can$0.18 cents per gram;  fine cut tobacco and 
other tobacco products, Can$19.05 cents per gram 
 http://www.gov.mb.ca/finance/ 
taxation/taxes/tobacco.html 
 Motive fuel 
tax Rates per litre:  clear diesel, Can$11.05 cents;  railway diesel, 
6.3 cents;  commercial heating oil, 1.9 cents;  bunker fuel, 
Can$1.07 cents  http://www.gov.mb.ca/finance/ 
taxation/taxes/motivefuel.html 
 Gasoline tax Rates per litre:  clear gasoline and clear gasoil, 
Can$11.05cents;  aircraft fuel, Can$3.02 cent;  propane for vehicles, heating and purchased in cylinders, Can$0.03 cents 
 http://www.gov.mb.ca/finance/ 
taxation/taxes/gasoline.html 
New Brunswick Tobacco tax Can$11.75 cents per ciga rette;  Can$9.45 cents per tobacco 
stick;  Can$8.45 cents per gram of other types of tobacco;  and, 
for cigars:  50% of retail selling price 
 http://www.gnb.ca/0162/tax/ 
tobaccort.htm#what 
 Gasoline and 
motive fuel 
tax Rates per litre:  gasoline, Can$10.07 cents;  motive fuel, 
Can$16.09 cents;  propane, Can$6.07 cents;  aviation fuel, 
Can$2.05 cents;  locomotive fuel, Can$4.03 cents  http://www.gnb.ca/0162/tax/fuel/
introg&mfe.asp#the taxes. 
Newfoundland Tobacco tax Can$0.19 cents per ciga rette;  Can$0.32 cents per gram of fine 
cut tobacco;  125% of purchase price of cigars 
 http://www.gov.nf.ca/fin/tobacco
.html 
Table III.8 (cont'd)Canada WT/TPR/S/246/Rev.1 
 Page 39 
 
 
 Province Tax Tax rate(s) Source 
 Gasoline tax Prices per litre:  ga soline, Can$16.05 cents;  auto propane, 
Can$0.07 cents;  marine fuel, Can$3.05 cents;  aviation fuel, 
Can$0.07 cents 
 http://www.gov.nf.ca/fin/gastax.
html 
Nova Scotia Tobacco tax Can$21.52 cents per cigarette;  fine cut tobacco, Can$0.20 
cents per gram;  pre-proporti oned tobacco sticks, Can$21.52 
cents per stick;  other forms of tobacco, Can$12.52 cents per gram.  56% of selling price for cigars 
 http://www.gov.ns.ca/snsmr/ 
access/business/tax-commission
/tobacco-tax.asp#faq14335. 
 Fuel tax Rates per litre:  gasoline,  Can$15.5 cents;  diesel oil, Can$15.4 
cents;  propane, Can$7.00 cents;  marine fuel, Can$1.1 cents;  
aviation fuel, Can$2.5 cents http://www.gov.ns.ca/snsmr/acc
ess/business/tax-commission/ 
fuel-tax.asp#faq14256 
 
Ontario Tobacco tax Can$11.01 cents per cigarette;  Can$11.01 cents per gram of 
tobacco, other than cigarettes and cigars;  56.6% of the taxable 
price of cigars http://www.e-laws.gov.on.ca/ 
html/statutes/elaws_statutes_90t
10_e.htm#BK2  
 Fuel tax Can$14.03 cents per litre;  Can$4.05 cents per litre for railway 
equipment http://www.rev.gov.on.ca/en/tax
/ft/rates.html  
 Gasoline tax Rates per litre:  unleaded  gasoline, Can$14.07 cents;  leaded 
gasoline, Can$17.07 cents;  aviation fuel, Can$2.07 cents;  and propane, Can$4.03 cents  http://www.rev.gov.on.ca/en/tax
/gt/rates.html  
Prince Edward Island Tobacco tax Can$22.45 cents per cigarette;  71.6% of retail price of cigars;  
Can$22.45 cents per tobacco stick;  Can$16.01 cents per gram of other tobacco 
 http://www.taxandland.pe.ca/ 
index.php3?number=78504&lang=E 
 Gasoline tax Rates per litre:  gasoline, Can$15.08 cents;  diesel oil, 
Can$20.02 cents;  aviation fuel, Can$0.07 cents http://www.taxandland.pe.ca 
/index.php3?number=78502&la
ng=E 
 Environment 
tax Can$4 on every pneumatic tyre sold for the first time in the 
province http://www.taxandland.pe.ca/ 
index.php3?number=73909&la
ng=E 
Québec Tobacco tax Can$10.06 cents per ci garette;  Can$10.06 cents per gram of 
loose/leaf tobacco;  Can$16.31 cents per gram for other 
tobacco;  80% of the taxable price of each cigar 
 http://www.revenu.gouv.qc.ca/e
n/entreprise/taxes/tabac 
 Fuel tax Taxes vary according to fuel type and also the region in which 
it was purchased as well as the date of purchase http://www.revenue.gouv.qc.ca/
documents/en/formulaires/ca/ 
CA-1-V(2010-05).pdf  
 Alcoholic 
beverages tax Rates per litre:  home consump tion:  beer, Can$0.40 cents;  
other alcoholic beverages, 89 cents.  Consumption at an establishment:  beer, Can$0.65 cents;  other alcoholic 
beverages, Can$1.97.  Under cert ain conditions the specific tax 
is reduced for beer and other alcoholic beverages produced in 
Québec
a 
 http://www.revenu.gouv.qc.ca 
/en/entreprise/taxes/boisson 
 Tax on tyres Can$3 per tyre on all new ty res sold at retail, and new tyres on 
road vehicles sold at re tail or leased long term 
 http://www.revenu.gouv.qc.ca/ 
en/entreprise/taxes/droit 
Saskatchewan Tobacco tax Individual cigare ttes and tobacco sticks, Can$0.21 cents or 
Can$42 for a carton of 200;  other tobacco, Can$0.21 cents per 
gram;  cigars, 100% of taxable value (minimum tax of 
Can$0.35 cents per cigar and ma ximum of Can$5 per cigar) 
 http://finance.gov.sk.ca/revenue
/tob/bulletins/TT-2%20Tax%20
Rate%20Changes.pdf 
Table III.8 (cont'd) 
 
 
  WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 40 
  
 Province Tax Tax rate(s) Source 
 Fuel tax Rates per litre:  clea r gasoline, Can$0.15 cents;  propane, 
Can$0.09 cents;  clear diesel fuel, Can$0.15 cents;  railway 
fuel, Can$0.15 cents;  aviation turbo, Can$1.05 cents;  and 
aviation gas, Can$1.05 cents  http://www.finance.gov.sk.ca/ 
taxes/ft 
 Liquor tax 10% on the total selling price of beer , wine and spirits http ://www.finance.gov.sk.ca/ 
taxes/lct 
 .. Not available. 
 
a The reduction for beer applies if the total volume of beer sold  worldwide by the brewer in th e calendar year preceding the ye ar in 
 question does not exceed 30 million litres.  The reduction for othe r alcoholic beverages applies if the total volume of alcoho lic 
 beverages produced and sold worldwide by  the producer in the calendar year preced ing the year in question does not exceed 
 500,000 litres. 
 Note: The authorities indicated that information on these pr ovincial taxes are not available at the federal level. 
 
Source : Various Canadian websites. 
(vi) Import controls and licensing 
57. Import licences (permits) are required for agri cultural products subject to tariff quotas to 
benefit from the applicable in-quota rate of duty.  Various allocation methods are used (Table AIV.1).  
For some first-come-first-served tariff quotas, general import licences are issued until the tariff quotas are filled;  other tariff quotas require specific import licences for each consignment.
52  Tariff quota 
products are included in the Import Control List established under the Export and Import Permits Act, 
and the Import Permit Regulations.53  Import licences are issued by DFAIT (Trade Controls and 
Technical Barriers Bureau) for a fee of Can$15 to Can$31, depending on the value of the product.54  
Canada's import licensing regime for tariff quotas th at are subject to WTO commitments has remained 
largely unchanged since its last TPR, with the excep tion of a new tariff quota and related licensing 
procedures for milk protein substances, establis hed as the result of negotiations under Article XXVIII 
of the GATT (Chapter IV(2)). 
58. Import licensing requirements remain in place for selected textiles and clothing products, on 
the Import Control List.  These requirements are in  connection with the implementation of Tariff 
Preference Level (TPL) provisions under NAFTA, and Canada's FTAs with Chile and Costa Rica 
(Chapter IV(4)(iv)).  TPLs are preferential tariff quotas for non-originating textiles and clothing (i.e. 
textiles and clothing manufactured in an FTA country that do not meet the FTA rules of origin).  To 
benefit from these TPLs, import licences are required and are granted on a first-come-first-served 
basis; the fees are Can$10-26.55  Some of the preferences for textiles imports are likely to be affected 
by Canada's unilateral tariff elim ination initiative (Chapter IV(4)(i)). 
59. Import licences are required for steel and steel products as listed on the Import Control List, 
in order to monitor their volume and origin (Table III.9). 
                                                      
52 Canadian Food Inspection Agency (CFIA) online information, "Guide to Importing Food 
Commercially".  Viewed at:  http://www.insp ection.gc.ca/english/fssa/imp/guide1e.shtml. 
53 Import Control List.  Viewed at:  http://laws.justice.gc.ca/en/Show Tdm/cr/C.R.C.-c.604///en. 
54 WTO document G/LIC/N/3/CAN/8, 16 October 2009, p. 17. 
55 WTO document G/LIC/N/3/CAN/8, 16 October 2009. Canada WT/TPR/S/246/Rev.1 
 Page 41 
 
 
 60. Imports of natural gas remain subject to  authorization through a licence or order 
(Chapter IV(3)(ii)).56  According to the authorities, the impor t licensing procedures are for regulatory 
and emergency purposes only, not to restrict the quantity or value of imports. 
61. Canada maintains SPS-related licensing requireme nts for importers of fish, and import permit 
requirements for animals and plants (Table III.9 and section (ix)).  Import requirements for these 
products remain largely unchanged since the last  Review.  For cheese, importer licensing procedures 
entered into force in December 2008, which are ad ministered by the Canadian Food Inspection 
Agency.  A dairy product import fee continues to appl y to cover the cost of monitoring and inspection 
of consignments (Can$44 to Ca n$110, plus a variable fee).57 
62. For imports of food products and ingredients that are regulated solely under the Food and 
Drugs Act (see Table III.9), (the so-called non-fede rally-registered sector), consultations are ongoing 
for a new regulatory initiative that proposes licen sing of importers.  The licensing requirements would 
apply to all importers of products such as alcoholic and non-alcoholic be verages, bakery products, fats 
and oils, infant formula, coffee and tea, cereals and related products, spices and seasonings, juices, and confectionary.  The purpose of this proposed  initiative is to:  strengthen the accountability of 
importers for the safety of the food products they  import; better identify and engage regulated parties 
importing food products and ingredient s;  and facilitate and enhance verification of compliance with 
Canadian requirements, thereby reducing the ri sk of unsafe products entering the Canadian 
marketplace.
58  This initiative is part of Canada's Food a nd Consumer Safety Action Plan (section (ix) 
below). 
63. Furthermore, Canada maintains import controls under a number of statutes and regulations to 
implement its other (non-WTO) international oblig ations and commitments.  Apart from technical 
amendments, permit procedures rema in substantially unchanged. 
64. Used or second-hand vehicles remain prohibited from importation into Canada (tariff item 
HS 9897.00.00 of the Customs Tariff).59  Exceptions include used or second-hand motor vehicles that 
are 15 years or older, and those imported from the United States, provided they meet Canadian safety 
standards (Chapter IV(4)(ii)).60 
                                                      
56 WTO document G/LIC/N/3/CAN/9, 18 October 2010. 
57 WTO document G/LIC/N/3/CAN/9, 18 October 2010. 
58 WTO document G/SPS/N/CAN/464, 2 September 2010. 
59 Memorandum D9-1-11, Importation of Used or Second-Hand Motor Vehicles, 2 July 1998.  Viewed 
at:  http://www.cbsa-asfc.gc.ca/publications/dm-md/d9/d9-1-11-doc- eng.html. 
60 Other prohibited import items are listed in HS 9897.00.00, 9898.00.00 and 9899.00.00, Customs 
Tariff – Schedule.  Viewed at:  http://www.cbsa.gc. ca/trade-commerce/tariff-tar if/2011/01-99/ch98-t2011-
eng.pdf. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 42 
  
 Table III.9  
Products subject to import licensing requirements, 2011 
Products Legal basis Stated purpose 
Food of animal and plant origin Food and Drugs Act and other statutes To ensure that the imported food meets 
Canadian standards for safety, quality, and labelling 
 
Regulated animals, animal  products and by-products, 
germplasm 
 
Non-U.S. origin :  Animals, semen, embryos, 
veterinary biologics de rived through biotechnology, 
and certain animal products and by-products 
depending on the species and country of origin  
U.S. origin :  some semen and embryos, veterinary 
biologics, psittacine birds other than pet birds, turtles, tortoises, skunks, foxes, raccoons, ruminants (other 
than cattle for immediate slaughter), swine (depending 
on the end-use of the animal), honey bee queens, dogs (commercial shipments of dogs less than 8 months of 
age), and certain animal products and by-products 
dependant on species 
 Health of Animals Act and regulations To protect against the introduction of 
diseases or spread within Canada  
Plant pests, plants and plant products Plant Prot ection Act To protect against the introduction and 
spread of pests injurious to plants in 
Canada  
Cheese Canadian Agricultural Products Act 
and Dairy Product Regulations To ensure that im ported cheese meets 
Canadian standards for safety, quality, composition, packaging, and labelling 
 
Fresh fruit and vegetables Cana da Agricultural Products Act, 
Licensing and Arbitration 
Regulations, and Fresh Fruit and 
Vegetable Regulations  To ensure that imported products meet 
Canadian standards for safety, quality, 
packaging, and labelling 
Fish and fish products (for human consumption) Fish  Inspection Act To provide reasonable assurance that 
imported products, for commercial purposes as food for human consumption, 
meet Canadian standards for safety, 
quality, composition, packaging, and labelling 
 
Unregistered pest-control products for the purpose of 
manufacturing, own use or research Pest Control Products Act  and 
regulations To ensure that th e importation of the 
unregistered pest-control product is used 
for the specific purpose and to ensure that 
it does not pose any unacceptable health or environmental risks 
 
Controlled drugs (e.g. amphetamine), narcotics, 
restricted drugs (used only for research) and precursor chemicals Controlled Drugs and Substances Act To  minimize diversion to illicit markets, 
while ensuring that imports do not exceed domestic medical, scientific, or industrial 
needs;  to ensure compliance with 
international commitments  
Explosives Explosives Act 
 To ensure safety of imported explosives 
 
Chemicals controlled under the Chemical Weapons 
Convention, Munitions Items (weapons, ammunition 
and war supplies) Export and Import Permits Act To re strict their importation and/or 
implement an intergovernmental 
arrangement or commitment 
Table III.9 (cont'd)Canada WT/TPR/S/246/Rev.1 
 Page 43 
 
 
 Products Legal basis Stated purpose 
Nuclear equipment and information, radio-active 
devices, and nuclear substances Nuclear Safety and Control Act To ensure that products subject to 
licensing are destined for authorized 
persons or organizations and that their 
use will not pose undue risk to health, safety, security, and the environment;  to 
implement international obligations 
 
Carbon steel products and specialty steel products Export and Import Permits Act To monitor the volume and the origin of 
carbon and specialty steel products 
 
Species regulated under the Convention on 
International Trade in Endangered Species of Wild 
Fauna and Flora (specimens of species and their by-products listed in Schedules I and II under the 
WAPPRIITA) Wild Animal and Plant Protection and 
Regulation of International and 
Interprovincial Trade Act (WAPPRIITA) 
 To allow importation of certain species 
and their by-products in internationally 
agreed circumstances;  for species in Schedule II, to ensure that there are 
sufficient safeguards and security to 
prevent escapes to the wild  
Natural health products Food and Drugs Act; Natural Health 
Products Regulations; Natural Health Products (Unprocessed Product 
License Applications) Regulations 
 To ensure that impo rted natural health 
products meet Canadian requirements  for safety, efficacy, and quality 
 
Rough diamonds Export and Import of Rough Diamond
Act To ensure that imports have been handled 
in a manner that meets the minimum 
requirements of the Kimberley Process 
 
Textile and clothing products Expor t and Import Permits Act To impl ement Tariff Preference Levels 
under FTAs with the United States, 
Mexico, Chile, and Costa Rica  
Natural gas National Energy Board Act To  ensure that long-term imports of 
natural gas are in the public interest, having regard to the equitable distribution 
of gas in Canada 
 
Agricultural products Export and Import Pe rmits Act To implement WTO tariff quota 
commitments (Table AIV.1) 
 
Source:  WTO documents G/LIC/N/3/CAN/ 8, 16 October 2009, and G/LIC/ N/3/CAN/9, 18 October 2010. 
(vii) Contingency measures 
65. There have been no major changes to Canada's  legal and institutional framework for trade 
remedies since its last Review.61  Most amendments to relevant le gislation and regulations implement 
bilateral emergency action provisions in Canada's  recently concluded free-trade agreements with 
Colombia, the European Free Trade As sociation, and Peru (Chapter II(4)).62  No general exemptions 
from the application of trade remedy laws have been granted under these agreements.63  Canada has 
also modified its Special Import Measures Regulations  to take account of Viet Nam's accession to the 
WTO in January 2007; the amendment gives effect to  Canada's right to use greater discretion in the 
                                                      
61 WTO document WT/TPR/S/179/Rev.1, 04 June 2007. 
62 Under the three agreements, tariff increases that depart from the respective phase-out schedules may 
only be implemented, within specified time frames, af ter an inquiry by the Canadian International Trade 
Tribunal has determined that increased imports are a principal cause or a threat of serious injury. 
63 In global safeguard investigations, the Canadian International Trade Tribunal must determine 
whether imports from Peru represent a "substantial cause" (as defined in Article 707 of the Canada-Peru FTA) 
of the serious injury.  If this is not the case, imports from Peru may be excluded from the respective global 
safeguard measures applied. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 44 
  
 imposition of anti-dumping measures on imports from Viet Nam, for which the price or cost of 
production in a specific sector is not de termined by market economy conditions.64 
66. Canada employs a bifurcated trade remedies system: investigations to determine whether 
imports are dumped or subsidized (and the relevant  margin of dumping or amount of subsidy) are 
conducted by the Canada Border Services Agency  (CBSA);  the Canadian International Trade 
Tribunal (CITT) is mandated to make preliminar y and final determinations  whether the allegedly 
dumped or subsidized imports have caused, or threat en to cause, injury to the Canadian industry.  
Canada's trade remedies legislation does not precl ude the simultaneous imposition of anti-dumping, 
countervailing, and safeguard meas ures on the same product.  Sepa rate dumping, subsidizing and 
safeguard investigations would be required, whic h may be initiated and conduc ted concurrently.  To 
date, Canada has applied in parallel only anti- dumping and countervailing measures;  it has not 
imposed any safeguard measures since the establishm ent of the WTO.  During the review period, 
Canada has not initiated any safeguard investigati ons and has not been involved in any WTO dispute 
settlement cases related to safeguards;  it has be en implicated, as a defendant, in one dispute 
settlement case relating to provisional anti-dumping and countervailing measures.65 
67. Between March 2006 and mid-2010, the CBSA initiated 18 anti-dumping and 
7 countervailing investigations; all of the latter were conducted in conjunction with anti-dumping 
enquiries.  No injury was found in one count ervailing and seven anti-dumping proceedings 
(Tables III.10 and III.11). 
Table III.10 
Initiated anti-dumping investigat ions, 1 July 2006 to 30 June 2010 
Country/customs 
territory Initiation Product Provisional measures Definitive duty Termination Trade dataDate Margina Date Margina 
United States 03.03.06 Cross-linked 
polyethylene tubing 01.06.06 213%   29.09.06, 
No injury 109,121 kg 
China 08.06.06 Copper pipe 
fittings 20.10.06 39%;  116% 19.02.07 0-37%;  242%  2,724,44 lbs 
Korea, Rep. of 08.06.06 Copper pipe 
fittings 20.10.06 103%;  188% 19.02.07 1.9-37%;  
242%  2,580,083 
lbs 
United States 08.06.06 Copper pipe 
fittings 20.10.06 0-265% 19.02.07 0-242%  3,538,932 
lbs 
Brazil 30.08.06 Copper rod 28.11.06 4.1%;  16.7%   28.03.07, 
No injury 24.8% of 
domestic 
consumption
Russian 
Federation 30.08.06 Copper rod 28.11.06 18.4%   28.03.07, 
No injury 14.7% of 
domestic 
consumption
France 22.11.06 Adult 
incontinence 
briefs 20.02.07 16.2%   20.06.07, 
No injury 4.7% of all 
imports of 
like goods 
China 13.08.07 Seamless carbon 
or alloy steel oil 
and gas well casings 09.11.07 9-68% 10.03.08 37-91%  22% of 
domestic 
consumption
Table III.10 (cont'd)
                                                      
64 Canada Gazette :  Vol. 141, No. 17, 22 August 2007.  Vi ewed at:  h ttp://www.gazette.g c.ca/archives/ 
p2/2007/2007-08-22/pdf/g2-14117.pdf. 
65 DS338, 22 March 2006 Canada - Provisional Anti-Dumping and Countervailing Duties on Grain 
Corn from the United States.  The Canadian International Trade Tribunal found no injury in this case and the 
provisional measures were removed in April 2006.  Furt her to this finding, the United States withdrew its 
request for consultations. Canada WT/TPR/S/246/Rev.1 
 Page 45 
 
 
 Country/customs 
territory Initiation Product Provisional measures Definitive duty Termination Trade dataDate Margina Date Margina 
China 23.01.08 Carbon steel 
welded pipe 22.04.08 84-163% 20.08.08 97-179%  43% of 
domestic 
consumption
China 15.05.08 Thermoelectric 
coolers and 
warmers 13.08.08 18.4-37.4% 11.12.08 16.7-37%  85% of 
domestic 
consumption
China 18.08.08 Aluminium 
extrusions 17.11.08 0-43%;  102% 17.03.09 0-42.4%;  
101%  43% of all 
imports of 
like goods 
China 27.02.09 Waterproof 
footwear 28.05.09 7.8-33.4%;  
52.3%   25.09.09, 
No injury 61.8% of 
total imports
Viet Nam 27.02.09 Waterproof 
footwear 28.05.09 5.2-27.4%;  
49%   25.09.09, 
No injury 19.9% of 
total imports
China 27.04.09 Mattress 
innerspring units 27.07.09 0-27.2%;  
177.4% 24.11.09 0-7.8%;  
147.4%  38.2% of 
total imports
Ukraine 06.07.09 Steel plate 05.10.09 14.7%;  20.2% 02.02.10 15%;  21.3%  6.3% of total 
imports 
China 24.08.09 Oil country 
tubular goods 23.11.09 33.94-110.69%;  
167% 23.03.10 13.85-106.43%;  
166.9% (casing 
and tubing) 23.03.10 
No injury  
(coupling 
stock) 60.5% of 
total imports
United States 08.10.09 Polyisocyanurate 
thermal 
insulation board 06.01.10 6.4-23.6%;  
215%   06.05.10, 
No injury 99% of total 
imports 
Netherlands 22.03.10 Greenhouse bell 
peppers 21.06.10 n.a.;  95%    26.9% of 
total imports
 
n.a. Not applicable. 
 a Where applicable, the rate for third party exporte rs of subject goods is separated by a semi-colon. 
 
Source:  WTO documents:  G/ADP/N/202/CAN, 22 Septem ber 2010;  G/ADP/N/195/ CAN, 16 March 2010; 
G/ADP/N/188/CAN, 18 September 2009;  G/ADP/N/180/CAN, 06 Ma rch 2009;  G/ADP/N/173/CAN, 
22 September 2008;  G/ADP/N/166/ CAN, 11 March 2008;  G/ADP/N/158/ CAN, 14 September 2007;  and 
G/ADP/N/153/CAN, 14 March 2007. 
68. At end-June 2010, Canada had 36 definitive anti-dumping duties in force, down from 48 at 
the time of its 2006 Review and the peak of  91 measures at the time of its 2003 Review.66  There were 
also nine definitive countervailing duties in place, up from five in 2006.  During the review period, 
Canada resorted more frequently to anti-dumping th an to countervailing measu res;  definitive duties 
were imposed in ten and six cases, respectively.  Imports of goods from China (19 measures), the EU (8 measures) and the United States (5 measures) remain most affected by anti-dumping and countervailing measures in force.
67  A s  a t  t h e  t i m e  of  C a n a d a ' s  p r evious review, nearly half of the 
contingency measures in effect concerned products of the steel industry. 
69. Notwithstanding the declining overall count, the nu mber of measures that had been in place 
for longer than 5 years increased from 22 to 29 between mid-2006 and mid-2010.68  During that 
period, the CITT adjudicated on the possible c ontinuation of 30 anti-dumping and 3 countervailing 
definitive duties that were approaching their expiry date.  As a result of the sunset reviews, 18 anti-
dumping measures (of which 4 were amended) and 2 countervailing measures (of which 1 was 
                                                      
66 WTO document G/ADP/N/202/ CAN, 22 September 2010. 
67 The EU total reflects its expanded membership as of 2007 (Bulgaria and Romania are subject to one 
measure each).  However, this ha s not altered the overall ranking. 
68 Of the 22 measures that had been in place for longer  than 5 years as of 30 June 2006, 21 were anti-
dumping duties and 1 was a countervailing duty.  Between then and 30 June 2010, 10 of these anti-dumping 
duties were rescinded or expired, whereas 15 additional anti-dumping duties and 2 countervailing duties passed 
the 5-year mark. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 46 
  
 amended) were continued.  The CI TT also concluded four interim re views in response to requests for 
the exemption of specific products from the m easures in place.  In two cases the findings were 
continued with amendments;  in the other tw o, they were continued without amendment.69 
Table III.11 
Initiated countervailing investigat ions, 1 July 2006 to 30 June 2010 
Country/customs 
territory Initiation Product Provisional measures Definitive duty 
Term-
ination Subsidized 
imports as % 
of domestic 
consumption Date Duty Date Determinationa
China 08.06.06 Copper pipe 
fittings 20.10.06 17% or 68% 19.02.07 0 or 17.73 
RMB/kg  CFb
Brazil 30.08.06 Copper rod 28.11.06 3.5%   28.03.07, 
No injury 26.2% 
China 13.08.07 Seamless carbon 
or alloy steel oil and gas well 
casings 09.11.07 6-10% 10.03.08 2-38%  22% 
China 23.01.08 Carbon steel 
welded pipe 22.04.08 0-12% 20.08.08 1,130-5,280 
RMB/tonne  43% 
China 15.05.08 Thermoelectric 
coolers and warmers 13.08.08 0.76-100% 11.12.08 0.8-14.1%  85% 
China 18.08.08 Aluminium 
extrusions 17.11.08 0-17% 17.03.09 2.59-15.84 
RMB/kg  .. 
China 24.08.09 Oil country 
tubular goods 23.11.09 0.33-2.47%;  
15% 23.03.10 85.14-4,070.00 
RMB/tonne;  
4070.00 RMB/tonne 
(casing and 
tubing) 23.03.10 
No injury  
(coupling stock) CF
b
 
.. Not available.  
a Range of individual subsidie s or definite duty rates. 
b Information not provided fo r reasons of confidentiality. 
 
Source:  WTO documents:  G/SCM/N/212/CAN, 22 Septem ber 2010;  G/SCM/N/203/CAN, 17 March 2010;  
G/SCM/N/195/CAN, 18 September 2009;  G/SCM/N/185/CAN, 06 Ma rch 2009;  G/SCM/N/178/CAN, 
23 September 2008;  G/SCM/N/170/ CAN, 13 March 2008;  G/SCM/N/162/ CAN, 10 September 2007;  and 
G/SCM/N/153/CAN, 13 March 2007. 
(viii) Technical regulations, conformity assessment, and standards 
70. In the Canadian system of government, the fe deral, provincial, and territorial governments 
have the authority to promulgate technical regul ations (and sanitary and phytosanitary measures);  
each has its own regulatory process.  At the federal level, the development a nd adoption of technical 
regulations are governed by the Statutory Instrume nts Act, the Statutory Instruments Regulations, 
various Cabinet policies, and the Cabinet Directiv e on Streamlining Regulation (Chapter II(1).  The 
new Cabinet Directive entered into force on 1 April 2007.70 
71. Under the Cabinet Directive on Streamlining Regulation, federal authorities must use 
available international standards, guidelines, a nd recommendations "provided they achieve the 
intended regulatory objective and o ffer an equivalent level of assura nce of conformity with domestic 
technical regulations and standards" sought by Cana da.  Regulatory requirements must be specified in 
                                                      
69 Details of interim review cases are summarized in the CITT's Annual Reports.  Viewed at:  
http://www.citt-tcce.gc.ca/ publicat/index1_e.asp. 
70 The Cabinet Directive has been notified to the TBT Committee in WTO document 
G/TBT/2/Add.6/Rev.2, 4 July 2007. Canada WT/TPR/S/246/Rev.1 
 Page 47 
 
 
 terms of performance rather than design or descr iptive characteristics "where possible".  Federal 
authorities must give positive consideration to  requests for recognition of foreign technical 
regulations, to the extent that these fulfil th e objectives of Canadian technical regulations.71  T h e  
authorities indicate that there is no system for co llecting data on foreign technical regulations 
recognized by Canada, but they are exploring ways to set up such a system.  The Treasury Board of 
Canada Secretariat (TBS), which supports the Treasury Board Cabinet committee, oversees the 
management and coordination of fe deral policy on technical and othe r regulations.  The Regulatory 
Affairs Sector within TBS is responsible for ensu ring that the analysis provided by departments and 
agencies on policy and regulatory proposals is consis tent with the commitments and directions set out 
in the Cabinet Directive. 
72. Various federal and provincial authorities develop regulations, including technical 
regulations, as part of their mandate.  Federal au thorities must carry out "open, meaningful, and 
balanced" consultations with interested parties at all stages of the regulatory process when developing 
regulations.72  The extent of the consultations should be  proportional to each regulation's impact.  
Federal authorities must publish draft technical regulations that affect trade in Part I of the Canada 
Gazette  and provide an opportunity for comment.73  This stage is referred to as "pre-publication".  For 
technical regulations that affect international trad e, the comment period should be at least 75 days, 
except in urgent circumstances.  The Canadian aut horities note that it would be  unusual for a technical 
regulation with international trade implications to  be exempt from the 75-day notice period.  They 
also indicate that urgent circumstances would be  defined in accordance with the TBT Agreement.  
Draft regulations must be accompanied by a regulat ory impact analysis statement (RIAS) describing 
their anticipated benefits and costs, and the results of consultations with stakeholders.  
73. The Governor in Council (GIC), on recommendation of the Treasury Board, grants final 
approval of a regulation, after taking into account  the results of the pre-publication stage.  Upon 
approval, the Governor General signs the order th at makes the regulation, and the Registrar of 
Statutory Instruments registers it.  Regulations may enter into force immediately after registration or 
as set out in the regulation.  Under the Statutory Instruments Act, regulations must be published in 
Part II of the Canada Gazette  within 23 days of registration.74  The elimination of technical 
regulations involves the same process as their adoption. 
74. Canada does not maintain a catalogue of technical regulations.  However, the Canada Gazette  
contains a Consolidated Index of Federal Statutory Instruments , including technical regulations.75  In 
addition, the Standards Council of Canada (S CC) maintains an online searchable database 
(RegWatch) of all standards incorporat ed into Canadian federal regulations.76 
75. The Government of Canada recognizes the SCC, a federal Crown corporation, as the national 
standardization body.  The Council oversees the e fforts of the National Standards System, which 
includes organizations and individuals involved in  (voluntary) standards development.  Federal 
departments and agencies are encouraged to use st andardization tools and approaches offered by the 
National Standards System as the basis for regulations .  Four organizations are accredited by the SCC 
                                                      
71 Appendix A, Cabinet Directive on Streamlining Regulation, April 2007. 
72 Appendix A, Cabinet Directive on Streamlining Regulation, April 2007. 
73 Appendix A, Cabinet Directive on Streamlining Regulation, April 2007. 
74 Sections 9-11, Statutory Instruments Act. 
75 Canada Gazette.  Viewed at:  http://canadagazette.gc.ca. 
76 SCC online information.  Viewed at:  http:// www.scc.ca/en/news_events/subscriptions/regwatch. 
html. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 48 
  
 to develop standards:  the Canadian General Sta ndards Board, the Canadian Standards Association, 
Underwriters' Laboratories of Canada, and the Bureau de normalisation du Québec. 
76. The SCC is responsible for reviewing sta ndards submitted by standards development 
organizations, and following the completion of an y recommended revisions, approving them as 
National Standards of Canada.  These standards s hould be consistent with or should incorporate 
"appropriate" international standards and "pertinent" national standards, and must be made available 
for public review during their development.77  From fiscal year 2005/06 to 2009/10, 73.7% of the 754 
National Standards of Canada appr oved by the SCC were adoptions of, or based on, international 
standards.  The SCC-accredited standards developm ent organizations issue notices of public review 
for draft standards, and notices of adopted standards.78  The SCC maintains an e-mail notification 
service (Standards Alert) on changes to Canadian (and international) standards.79 
77. Canada relies on a variety of tools to ensure  compliance with technical regulations.  They 
depend on a number of factors, including risks and the particular characteristics of the sector.  Third-party conformity assessment is used in electrical safety, medical devices, and construction products.  Canada uses suppliers' declaration of conformity for motor vehicles, electromagnetic 
compatibility, and some telecommunications products.  In some sectors, such as pharmaceuticals, 
Canadian regulatory authorities are direc tly responsible for conformity assessment. 
78. Conformity assessment procedures are normally specified in Canadian technical regulations.  
In sectors subject to third-party conformity assessment , most Canadian regulatory authorities rely on 
conformity assessment bodies accredited by the (SCC) .  The SCC’s accreditation criteria are based on 
ISO/IEC standards and include additional requirement s to fulfil the needs of Canadian regulatory 
authorities.
80  
79. The Standards Council of Canada is the nati onal accreditation body.  It accredits standards 
development organizations, tes ting and calibration laboratories, certification bodies, quality and 
environmental registration organizations, insp ection bodies, personnel certification bodies, and 
auditor course providers and certifiers.  Ther e are 31 SCC-accredited certification bodies, and 
14 accredited inspection bodies and a large number of accredited laboratories.81 
80. Canada is party to a number of multilatera l mutual recognition agreements (MRAs) on 
conformity assessment;  it has negotiated a few bila teral MRAs to facilitate recognition of foreign 
conformity assessment procedures (Table AIII.5).  For electrical equipment, international product 
certification schemes are generally used (e.g. IEC Sy stem for Conformity Testing and Certification of 
Electrical Equipment). 
81. The SCC is Canada's enquiry point and not ification authority.  It monitors the 
Canada Gazette  to identify relevant technical regulations and conformity assessment procedures for 
WTO notification.  It relies on provincial gazettes for technical regulations and conformity assessment 
procedures adopted by provincial governments.  Provinces and territories publish their statutes and 
                                                      
77 SCC (2006). 
78 SCC online information.  Viewed at:  http://www .scc.ca/en/news_events/public-review/index.shtml. 
79 SCC online information.  Viewed at:  http://w ww.scc.ca/en/programs-services/information–resources 
/standards-alert. 
80 SCC (2009b);  and Standards Council of Canada (2009a). 
81 SCC online information, "Direct ory of Accredited Product and Service Certification Bodies".  
Viewed at:  http://www.scc.ca/en/programs-services /product-certification/direct ory-of-accredited-clients 
[17 November 2010]. Canada WT/TPR/S/246/Rev.1 
 Page 49 
 
 
 regulations and make them available online.  Acco rding to the authorities, the vast majority of 
provincial regulations, for example in the areas of building safety, electrical safety or elevating devices have no impact on international trade.  Three draft technical regulations proposed by a 
provincial/territorial authorities were  notified during the review period.
82 
82. Canada made 145 notifications to the TB T Committee (under Article 10.6 of the TBT 
Agreement) from 1 January 2007 to 15 November 2010.83  The majority of technical regulations 
notified were aimed at protecting human health a nd safety, or the environment.  Judging from the 
number of notifications, Health Canada has been Cana da's leading regulator with respect to technical 
regulations that are deemed to have a trade im pact, followed by Environment Canada, Transport 
Canada, the Canadian Food Inspection Agency, and Industry Canada (mainly telecommunications and 
radio communications). 
Specific trade concerns 
83. In the period under review, a number of specifi c trade concerns were raised in the TBT 
Committee concerning Canadian measures.84  The Bill C-32 amendment to the Tobacco Act, and new 
compositional requirements for cheese have  attracted particular attention. 
84. Some 30 Members, amongst them many developi ng countries, have expressed concern about 
Canada's "Cracking Down on Tobacco Marketing Ai med at Youth Act" (Bill C-32 amendment to the 
Tobacco Act), which became law on 8 October 2009.   The Act is aimed at protecting youth from 
industry marketing practices that encourage smoki ng.  To this end, the measure prohibits, inter alia , 
the manufacture and sale of cigarettes, little cigars  and blunt wraps, containing certain additives, 
including flavourings, that are considered  to make these products more appealing.85  While Members 
have generally supported the Bill's objectives, some ha ve argued that it is more  trade restrictive than 
necessary to achieve its objective. 
85. Several Members have expressed concern about technical barriers to trade resulting from the 
new compositional requirements for cheese, which entered into force in Canada on 14 December 2008 
through revisions of the Food and Drug Regula tions, and the Dairy Products Regulations.86  Canada 
explained that the revised regulations harmonize the fe deral regulations with respect to the ingredients 
permitted in cheese making, and the compositional standards apply both to domestic and imported 
cheese.  New licensing requirements for importers a pply (Chapter III(2)).  Me mbers' concerns are, 
amongst others, that the amended standards are overly restrictive in terms of the thresholds imposed 
for the use of dairy ingredients;  that the sta ndards limit the use of protein sourced from dairy 
ingredients even though such ingredients are wide ly used and accepted in cheese production;  that the 
Codex Alimentarius does not prescribe any limitations  on their use;  and that the new measures are 
trade-restrictive (Chapter IV(iii)(b)).  According to Canada, the Government has taken into account 
                                                      
82 WTO documents G/TBT/N/CAN/194, 5 February 2007;  G/TBT/N/CAN/241, 27 May 2008;  and 
G/TBT/N/CAN/255, 24 December 2008. 
83 The total (145) includes WTO documents G/TBT/N/CAN/150/Rev.1 to G/TBT/N/CAN/234 but 
excludes documents with the symbols Add. and/or Corr. 
84 WTO document G/TBT/GEN/74/Rev. 6, 19 October 2010. 
85 The additives banned include:  those with flavou ring properties including additives identified as 
flavouring agents by the Joint FAO/WHO Expert Committee on Food Additives and by the Flavor and Extract 
Manufacturers Association (FEMA) Expe rt Panel.  However, certain flav ouring substances included on these 
international lists are excluded from the Canadian legisla tion, such as citric acid, glycerol, and menthol. Other 
prohibited additives include caffeine, colouring agents, fruits and vegetables, and vitamins. 
86 WTO documents G/TBT/N/CAN/203, 29 June 2007, and Add.1, 3 December 2008. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 50 
  
 international standards, other countries' regul ations, and comments received during the WTO 
notification period;  and all cheeses imported to date  have been deemed to be in compliance with the 
revised standard.87 
(ix) Sanitary and phytosanitary measures 
86. Canada's main regulators for food safety, animal  health, and plant health are Health Canada, 
and the Canadian Food Inspection Agency (CFIA). Health Canada is responsible for establishing 
standards and policies governing the safety and nutritiona l quality of all food sold in Canada.  It also 
engages in research, food-safety risk assessment, pr e-market review, and evaluation of all issues 
related to food safety and nutrition; approves and regulates pest control products and sets maximum 
residue limits (MRLs) for pesticides that may remain in or on food88;  and approves and regulates 
veterinary drugs used in food-producing animals a nd sets their MRLs.  The CFIA is responsible for 
enforcing the food safety and nutritional quality standa rds and policies set by Health Canada, and all 
federally mandated food inspection, compliance, a nd quarantine services; the CFIA is also responsible 
for governing animal and plant health. 
87. The main federal statute for food safety is th e Food and Drugs Act, supplemented by the Food 
and Drug Regulations.  Other federa l legislation may reference the Food and Drugs Act and stipulate 
additional requirements.  Examples include the Pest Control Products Act, Canada Agriculture 
Products Act, Meat Inspection Act, Fish Inspection Act, Seeds Act, Fertilizer Act, and Feeds Act.  
The Health of Animals Act and the Plant Protection Act, with their associated regulations, are the main statutes governing animal and plant health issues (Table III.9). 
88. While SPS-related import requirements are the do main of the Federal Government, provincial 
and territorial governments have jurisdiction fo r some food safety issues, including for food 
manufactured and sold within their borders.  Pr ovincial and municipal in spection programmes focus 
on food producers and manufacturers, the food service, and food retail industries within their jurisdiction. Some provinces and territories may have additional SPS requirements for certain 
commodities, such as dairy products, marg arine, bottled water, and maple syrup.
89  On SPS matters, 
consultative bodies between the federa l, provincial, and territorial (FPT) governments include the FPT 
Agriculture Regulatory Assistant Deputy Ministers’  Committee, and the FPT Food Safety Committee.  
89. Since its last TPR, Canada has faced SPS-related concerns such as avian influenza, the H1N1 
pandemic, and a Listeriosis outbreak in ready-to- eat meat products.  In the summer of 2008, illness 
caused by Listeria monocytogenes in ready-to-eat meat resulted in the death of 23 Canadians.90 
90. In 2008, the Federal Government launched the Food and Consumer Safety Action Plan and 
allocated Can$489.5 million for five years (2 008/09–2012/13) aimed at modernizing and 
strengthening Canada's safety system for food, h ealth and consumer products.  One element of the 
action plan is Health Canada's Regulatory Moderniz ation Strategy for Food and Nutrition, which has 
the objective, amongst others, of amending or replacing Canada's outdated health and safety 
                                                      
87 WTO document G/TBT/M/51, 1 October 2010. 
88 Pest Management Regulatory Agency of Health Canada. 
89 CFIA, "Guide to Importing Food Products Commercia lly".  Viewed at:  http://www.inspection.gc.ca/ 
english/fssa/imp/guide1e.shtml. 
90 An independent investigator identified gaps in the Canadian food safety system and made 
57 recommendations that were approved by the Govern ment.  See Government of Canada online information, 
"Listeriosis Investigative Review".  Viewed at:  http ://www.listeriosis-listeriose.in vestigation-enquete.gc.ca/ 
index_e.php. Canada WT/TPR/S/246/Rev.1 
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 legislation.  In this regard, Health Canada noted that its "regulatory toolkit for food regulation is, in 
some instances, made up of tools, processes, and rules that were first established in the 1950s, 1960s, 
and 1970s".91 
91. In May 2010, the Government created the positi on of Chief Food Safety Officer within the 
CFIA with the mandate of (i) driving the devel opment and delivery of a horizontal management 
agenda for the food production c ontinuum;  (ii) assessing evolving in ternational standards, global 
trends and best practices shaping food safety a pproaches;  and (iii) stewarding the "one health" 
convergence of human, animal and ecosystem health.92  The objective is to bring a more holistic 
approach to achieving the food safety objec tives of the Canadian Food Inspection Agency. 
92. The Cabinet Directive on Streamlining Regul ation reinforces a number of regulatory 
principles under Canada's SPS regime (Chapter II(1)).93  In particular, it requires federal regulatory 
authorities to:  use relevant international standa rds, guidelines, and recommendations where those 
standards achieve the policy objective sought by Ca nada;  apply cost-benefit analysis wherever 
possible, but especially for "high-impact" regulations ;  and to consult the provincial and territorial 
governments as required.   
93. Proposed regulations are pre-published for c onsultation and comment before they are 
formally published.  On a case-by-case basis, Health Canada is working with its  regulatory partners to 
streamline the approval process for low-impact re gulatory proposals conc erning food additives.  
These proposals will be considered for a recomme ndation for exemption from Part I of the Canada 
Gazette  in cases where Health Canada has consulted on the amendments in a web-based consultation.  
This web-based consu ltation is notified to the SPS Committee.  
94. Canada's enquiry point and national notifica tion authority under the SPS Agreement is the 
Standards Council of Canada (section (viii)).  Cana da has notified federal measures only to the SPS 
Committee (Table III.12), since the authorities ar e not aware of any SPS measures adopted by 
sub-federal authorities that have a trade impact.  Most notifications concern maximum residue levels 
(MRLs) proposed for food safety reasons. 
95. Notices of interim marketing authorizations (IMAs) are enabling instruments that allow 
producers or manufacturers to sell foods that are not  in compliance with certain provisions of the 
Food and Drug Regulations while th e regulations are being amended.94  According to the authorities, 
IMAs are issued only when the scientific evaluation concludes that consumption of the food will not 
be harmful to consumers.  IMAs are used only wh en extending the use of food additives, veterinary 
drugs, and agricultural chemicals that have alrea dy been approved, or in case of the addition of 
vitamins, mineral nutrients, or amino acids to food .  IMAs appear in the Government Notices section 
of Part I of the Canada Gazette  and are effective on the date of publication. 
 
                                                      
91 Health Canada online information.  Viewed a t:  http://www.hc-sc.gc.ca/fn-an/alt_formats/hpfb- 
dgpsa/pdf/consultation/rm_strat_mr-eng.pdf. 
92 This is in the context of the "One World One Health" Strategic Framework for Reducing Risks of 
Infectious Diseases at the Animal-Human-Ecosystem s Interface, developed jointly by FAO, WHO, OIE, 
UNICEF, World Bank, and the UN System Influenza Coordination.  CFIA online information.  Viewed at:  
http://www.inspection.gc.ca/englis h/fssa/cfsocsa/cfsocsae.shtml. 
93 See section 4 and Appendix B of the Cabinet Directive. 
94 Interim Marketing Authorization (IMA), Schedul e 923.  Viewed at:  http://www.hc-sc.gc.ca/fn-
an/legislation/ima-amp/interim_market_authorization-autorisation_mise_marche_e.html. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 52 
  
 Table III.12 
SPS measures notified by Canada, 2007-10 
 No. of notifications to the 
SPS Committee % of total 
Total regular and emergency notificationsa 215 100 
Regular notifications 210 98 
Emergency notifications 5 2 
Objective of notifications   
Food safety 189 88 
Animal health 5 2 
Plant protection 10 5 
Interim marketing authorizations 46 21 
Maximum residue levels 128 60 
Conformity with international standards 12 6 
No conformity with intern ational standards 41 19 
 
a From 1 January 2007 to 15 November 2010:  includes revised notifications but no addenda or corrigenda. 
 
Source:  WTO online SPS Information Management System. 
(a) Import requirements 
96. SPS requirements applied to imports are establishe d on the basis of the disease or pest risks 
associated with these imports.  As a general rule , the authorities conduct a risk assessment prior to 
first-time imports of an animal, plant, or an imal or plant product from a particular country.95  SPS 
import requirements that entail a full risk assessment are most commonly those related to animal and 
plant health.  According to the authorities, risk  assessments for imports of animals and animal 
products may take up to a year to process, depend ing on the availability of risk assessments for 
product-country combinations presenting the same ri sk as the requested import, and the quality of 
information available.  The CFIA decides whether a full risk assessment is required, normally within 
three weeks of receiving the request.  The applicant is charged a fee when the full risk assessment is 
initiated. 
97. For import requests related to plants and animals that require a risk assessment, the CFIA 
takes into account a number of factors to determ ine the priority assigned to each request, including 
estimates of the imported product's immediate impact  on plant, animal, and human health; level of 
exporter interest in exporting the particular product to  Canada;  level of importer interest in importing 
the product into Canada; economic and social  impact on Canadians;  and urgency.  
98. Based on the results of risk assessment, the CFIA  may allow imports, subject to certain SPS 
requirements.  Import conditions may include treatme nt at origin, testing, inspection, quarantine, 
record keeping of use, distribution or disposal  within Canada (varies by commodity) and/or 
certification.  Imported cattle, sh eep, and bison must be identif ied with an approved tag for 
traceability purposes (Health of Animals Regulations). 
99. SPS-related import permits are required for some  products; they specify the conditions under 
which the product can be imported in to Canada (Table III.9).  For an imals and animal products, the 
                                                      
95 A follow-up risk assessment may be required, for example, if Canadian import requirements have 
changed or the exporting country's disease status has changed. Canada WT/TPR/S/246/Rev.1 
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 requirements are often included in import protocols96;  for plants and plant products the CFIA 
normally issues Plant Protection Policy Directives (D-memos).97  In addition, the agency maintains an 
online database of the import requirements for animals, plants, and their products (Automated Import Reference System – AIRS).
98 
100. Import prohibitions on SPS grounds are based on the animal disease or pest status of the 
exporting country.  Permits for animal imports ma y be refused when a country does not have a 
satisfactory disease diagnosis capability or disease cont rol organization or e quivalent veterinary 
infrastructure.  The CFIA maintains lists of count ries free of OIE-listed diseases, which are generally 
established on the basis of country assessments conducted by the CFIA.99  Canada accepts the OIE 
classification for country BSE risk categorization, therefore the CFIA does not routinely carry out 
independent assessments of a country’s BSE categori zation. In addition, Canada takes into account 
the lists of countries recognized by the OIE as free of foot-and-mouth disease, rinderpest, and contagious bovine pleuropneumoni a, but reserves the right to conduct its own risk assessments on a 
case-by-case basis for all diseases.  Although th e CFIA normally evaluates disease risks on a 
country-wide basis, it has occasionally recognized ce rtain regions or zones within countries as disease 
free.
100  The CFIA also maintains a list of import pr ohibitions for certain plant and plant material 
(from countries other than the United States), which is aligned with IPPC pest risk analysis 
guidelines.101 
101. Canada has introduced new regulations for aquatic  animal health through amendments to the 
Health of Animals Regulations.102  The breadth and volume of world trade in aquatic animals have 
increased significantly over the l ast decade or so, as a result of which aquatic animal populations are 
now at greater risk from diseases.  To address this, the OIE developed an Aquatic Animal Health Code in 1995 to assure the sanitary safety of internat ional trade in aquatic animals.  To bring Canada 
into line with these international standards, th e CFIA has developed an Aquatic Animal Health 
Program.
103  As part of the proposed regulatory changes, aquatic animal health permits are required in 
order to import live aquatic an imals, including specific regulat ed fish species, molluscs, and 
crustaceans.  These permits are similar to permits for other animal imports, and imports require a 
health certification from the country of origin to ensure compliance with Ca nadian aquatic animal 
health requirements. 
102. Meat imports are subject to a special approval system based on equivalency, since Canadian 
legislation requires that imported meat products me et the same standards and requirements as if they 
                                                      
96 CFIA online information.  Viewed at: http ://www.inspection.gc.ca/english/anima/heasan/pol/ 
pole.shtml#prod. 
97 CFIA online information, "Plant Protection Policy Directives".  Viewed a t:  http://www.inspection. 
gc.ca/english/plaveg/protect/dir/directe.shtml. 
98 CFIA online information, "Automated Import Reference System (AIRS)".  Viewed at:  
http://airs-sari.inspection.gc.ca/airs/airs-sari.asp. 
99 CFIA online information, "Country Freedom Recognition Tables".  Viewed at:  
http://www.inspection.gc.ca/english/an ima/disemala/recotab/listae.shtml. 
100 CFIA online information, "Country Freed om Recognition Tables".  Viewed at:  
http://www.inspection.gc.ca/english/an ima/disemala/recotab/listae.shtml. 
101 CFIA online information, "Prohibited Plants and Plant Materials from Countries Other than the 
Continental United States".  Viewed at: http://www.insp ection.gc.ca/english/plaveg/oper/prohibintere.shtml;  
and "Pests Regulated by Canada".  Viewed at:  http:// www.inspection.gc.ca/english/plaveg/protect/listpespare. 
shtml. 
102 WTO document G/SPS/N/CAN/415/Add.1, 18 January 2011. 
103 CFIA online information, "Canada's National Aquatic Animal Health Program".  Viewed at:  
http://www.inspection.gc.ca/englis h/anima/aqua/aquaproge.shtml. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 54 
  
 were produced in registered establishments in Canada (Meat and Meat Products Import Control 
Program).104  Upon request, the CFIA reviews all per tinent statutes regarding a country's meat 
inspection system. If these are deemed equivalent, th e agency carries out an on-site audit of the meat 
inspection system of the exporting country, includi ng a sample of individual meat establishments.  
Establishments approved by the CFIA must submit r ecipes, formulations, and labels of meat products 
for registration before they can export to Canada.  The CFIA conducts period ic audits of approved 
establishments.  The agency has approved m eat inspection systems from 40 countries and 
territories.105  All shipments of imported meat must be inspected at the border. 
103. Under the Novel Food Regulations, manufacturers and importers of genetically modified and 
other novel foods are required to notify Health Cana da of their intention to market a novel product in 
Canada, before sale or advertisement for sale.  Health Canada's safety assessment of a novel food 
includes evaluation of the process used to develop the food product; comparison of its characteristics 
to those of traditional food counterparts;  its nutri tional quality; the potential for new toxicants or anti-
nutrients;  and the potential allergenicity of any pr oteins that have been introduced into the food by 
genetic modification techniques.106  Importers of fruits, vegetables, tubers, seed and grains, amongst 
others, that are derived from transgenic plan ts are subject to CFIA import requirements.107  If the plant 
pest potential of a plant with novel traits has not ye t been assessed by the CFIA, its import requires an 
import permit issued under the Plant Protection Regulations. 
(b) Specific trade concerns 
104. During the period under review, a number of specific trade concerns were raised at SPS 
Committee meetings regarding certain Canadian SPS measures.  Some Members were concerned 
about negative trade effects and the scientific ju stification of Canada's plant protection policy for 
marine vessels that may carry Asian Gypsy Moth.108  Canada noted that its new standard for Asian 
Gypsy Moth was based on new regional guidelines that  were approved by the North American Plant 
Protection Organisation (NAPPO) in August 2009.  The NAPPO measure had been introduced to 
protect North American forests and pre-empt the high  costs of eradication.  In 2009, egg masses of 
Asian Gypsy Moth had been found on ships from Asia .  The standard entered into force in 2010 and 
will be phased in by March 2012.109 
105. In March 2010, concerns were raised by Ecuador regarding Canada's proposed maximum 
residue level for 1-Methylcyclopropene in bananas.  Ecuador noted that this product, used to prevent 
                                                      
104 CFIA online information.  Viewed at:  h ttp://www.inspection.gc.ca/english/fssa/meavia/man/ 
ch10/10-2e.shtml. 
105 Argentina,  Australia, Austria, Belgium, Braz il, Chile, China, Croatia, Cyprus, Czech Republic, 
Denmark, Estonia, Finl and, France, Germany, Greece, Gr eenland, Hungary, Iceland, Ire land, Israel, Italy, Japan, 
Luxembourg, Mexico, Netherlands, New Zealand, Poland, Portugal, Puerto Rico, Romania, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Thailand, United Kingdom, Uruguay, and United States.  CFIA online 
information, "Meat Hygiene Directives for 20 10".  Viewed at:  http://www.inspection.gc. 
ca/english/fssa/meavia/man/ch10/coupay/coupaye.shtml. 
106 Health Canada online information.  Viewed  at:  http://www.hc-sc.gc.ca/fn-an/contact/index-
eng.php. 
107 CFIA online information.  Viewed at:  http:// www.inspection.gc.ca/english/plaveg/protect/dir/d-96-
13e.shtml. 
108 WTO document G/SPS/N/CAN/281/Rev.1. 
109 WTO G/SPS/R/59, 23 August 2010. Canada WT/TPR/S/246/Rev.1 
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 premature ripening of fruit due to ethylene exposure, was not used by its exporters.110  In response, 
Canada signalled that it would extend the comment period for the proposed MRL if requested.111 
106. In August 2010, China expressed concerns rega rding Canada's registration requirements for 
China's pet food export enterprises.112  Canada responded that a new inspection plan contained an 
initial list of 60 facilities and Canada had started insp ections on 19 facilities that already held valid 
import permits.  Canada was prepared to send several teams to visit different facilities simultaneously, and would continue its technical dialogue with China.
113 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures 
107. There have been no substantial changes to export procedures in Canada since its last 
Review.114  Exporters are responsible for reporting comm ercial exports over a value of Can$2,000 to 
the CBSA within timeframes that vary according to  the mode of transport used (Table III.13).115  
Exceptions to these timeframes are live animals, bulk goods, homogenous goods or time-sensitive goods, which may be reported immediately before th ey are exported, unless they are restricted.  
Additionally, certain authorized exporters may re port exports on a monthly basis using the summary 
reporting method (below).  There are a few exceptions to reporting requirements.
116  Exports of non-
restricted goods to the United States do not need to be declared, since exchange of trade data between 
the two countries is covered by a bilateral agreement.117 
Table III.13 
Timeframes for reporting exports, 2011 
Mode of transport Reporting requirements 
Mail Not less than two hours before the goods are de livered to the post office where the goods are mailed 
Vessel Not less than 48 hours before the goods are loaded onto the vessel 
Aircraft Not less than two hours before the goods are loaded on board the aircraft 
Rail Not less than two hours before the railcar on which the goods have been loaded is assembled to form part of 
a train for export; 
Other Immediately before the exportation of the goods 
 
Source:  The Reporting of Exported Goods Regulations.  Vi ewed at:  http ://laws.justice.g c.ca/eng/SOR-2005-
23/index.html. 
                                                      
110 WTO document G/SPS/N/CAN/413 and Corr.1. 
111 WTO G/SPS/R/58, 11 June 2010. 
112 WTO G/SPS/R/59, 23 August 2010. 
113 WTO G/SPS/R/59, 23 August 2010. 
114 The main objectives of export reporting are to:  control the export of strategic, dangerous goods, and 
other controlled and regulated goods;  to collect accurate  information on Canadian exports;  and control the 
outbound movement of goods in transit through Canada. 
115 The legal basis for this requirement is the Customs Act (Section 95) and the Reporting of Exported 
Goods Regulations.  Viewed at:  http://la ws.justice.gc.ca/eng/C-52.6/index.html. 
116 Exceptions to reporting requirements are set out in Article 6 of the Reporting of Exported Goods 
Regulations. 
117 Export declarations are not required for goods export ed to the United States, Pu erto Rico or the U.S. 
Virgin Islands, with the exception of exports of trains .  Goods in transit through the United States to another 
country are subject to the same requirements as if they were travelling directly to th e other country.  If goods 
exported to the United States are restri cted in Canada, the appropriate permit must be presented to the Canada 
Border Services Agency. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 56 
  
 108. In order to make a declaration, exporters and customs brokers must obtain a business number 
and an import/export account from the Canada Re venue Agency.  Exporters may report exports 
electronically or manually, although the authoriti es indicated that they are looking to phase out 
manual reporting.  The Canadian Automated Export Declaration (CAED), the most frequently used 
reporting method, allows exporters to transmit declar ations electronically using software that can be 
downloaded free of charge from the CBSA website.  A second electronic method, the G7 Electronic Data Interchange (EDI) Export Reporting method, is generally used by major customs brokers.  Hard 
copies of export declarations may be submitted usin g the B13A export declaration;  this method is 
used in around 20% of cases.  A Summary Reporting pr ogramme is available to exporters of low risk, 
bulk or homogenous goods who export on a regular b asis and have met specific CBSA requirements.  
Exporters of restricted goods must, in addition to completing the export declaration, submit the 
required export permit.  Carriers and customs services providers are also subject to export 
requirements.
118 
109. The authorities noted that physical examinations are undertaken using information obtained 
from advance declarations, although no data are curre ntly collected.  As at the time of Canada's 
previous Review, if export-reporting requirements ar e not met, then exporters and/or carriers may be 
subject to penalties under the Administrative Mone tary Penalty System (AMPS).  The maximum 
penalty for a single contravention is Can$25,000.  Disaggregated figures on contraventions by 
exporters are not available.119 
(ii) Export taxes, charges and levies 
110. Export duties are imposed on Canadian-manuf actured tobacco products and on softwood 
lumber destined for the United States.  They may be imposed under the Export Act on certain ores, 
but no such taxes are current ly levied (early 2011). 
111. Special duties are imposed on all exports of manufactured tobacco products (cigarettes, 
tobacco sticks and other manufactured tobacco) primarily to prevent these products from being 
smuggled back into Canada, but also for health policy reasons.120  The authorities noted that the taxes 
were put in place as a result of contraband activity in the 1990s.  The tax is two-tiered:  certain special 
duty rates apply on exports up to a threshold of 1. 5% of a manufacturer's annual production, and 
others apply on exports above this threshold.121  The special duty on exports up to the 1.5% threshold 
is refundable upon proof of payment of the applicable foreign taxes and duties.  If the special duty exceeds the refund, then the difference may be reim bursed.  Both the importer and manufacturer must 
apply for the refund within two years of the produc t being exported.  No refund is provided for the 
special duty on exports over the 1.5% threshold.  The authorities noted that since there is little demand 
for Canadian tobacco products outside of Canada, there is an implicit assumption (based on historical 
                                                      
118 Reporting procedures for carriers are set out in CBSA Memorandum D3-1-8 (2007).  Viewed at:  
http://www.cbsa.gc.ca/publications/dm-md/d3/d3-1-8-eng.h tml.  Further information on reporting requirements 
for exporters and customs services providers are in CBSA Memorandum D20-1-1 (2008).  Viewed at:  http://www.cbsa-asfc.gc.ca/publicati ons/dm-md/d20/d20- 1-1-eng.pdf. 
119 For more information on the AMPS, see CBSA Memorandum D22-2-2, June 2010.  Viewed at:  
http://www.cbsa-asfc.gc.ca/publications /dm-md/d22/d22-1-1-eng. pdf.  This memorand um also contains a 
summary of the main changes to the AMPS effective from April 2010. 
120 The legislation governing this tax is the Excise Act 2001.  Viewed at:  http://laws.justice.gc. 
ca/eng/E-14.1/20110203/section-.html.  Canadian manufactured tobacco includes:  cigarettes, tobacco sticks, and manufactured tobacco other than  cigarettes and tobacco sticks. 
121 For more details regarding the legislation governing this tax, see Excise Act, 2001, sections 50 and 
56 and Schedule 3. Canada WT/TPR/S/246/Rev.1 
 Page 57 
 
 
 data) that contraband activity is taking place if more than 1.5% of a manufacturer's production is 
exported. 
112. On 12 September 2006, Canada and the United States signed an agreement on exports of 
Canadian softwood lumber.  This followed a long-ru nning trade dispute regarding U.S. anti-dumping 
and countervailing duties on imports of Canadian so ftwood lumber, which had been the subject of 
challenges in the U.S. courts, under the WTO Di spute Settlement Unders tanding, and under NAFTA 
Chapter 19.  The Agreement entered into force on 12 October 2006, with amendments to provisions 
relating to the termination of certain litigation an d the refund of duty deposits.  As part of this 
agreement, the United States revoked the anti-dum ping and countervailing duty orders, and refunded 
the duty deposits collected since 2002.  All of the duty deposits were refunded to the Canadian firms 
that had paid the duties, less US$1 billion, which were  subsequently provided to U.S. interests and to 
a binational industry council.  Under the agreemen t, Canadian softwood lumber exporters pay an 
export charge when the agreed reference price of  lumber is at or below US$355 per thousand board 
feet.  The Canadian regions covered by the agr eement (British Columbia, Alberta, Saskatchewan, 
Manitoba, Ontario, and Québec) may choose between tw o regimes:  an export charge that varies with 
price; or a lower export charge plus volume restra int, where both the rate and the volume restraint 
vary with the price.  The export charge revenu es are collected by the Canadian Government and 
returned to the provinces based on th e origin of the softwood.  The funds must not flow back to the 
industries from which they were collected. 
(iii) Export controls and licensing 
113. Canada's export control regime remains essentially unchanged apart from technical 
amendments.  The vast majority of export controls  are maintained for health, safety, security, or 
environmental reasons and often pursu ant to international agreements.  
114. Goods on the Export Control List, established under the authority of the Export and Import 
Permits Act, require export permits , generally for all destinations except (in most cases) the United 
States.122  Exporters may apply for export permits and ce rtificates online through the Export Controls 
On-Line (EXCOL) tracking system.123  Permits are issued by DFAIT (Export and Imports Controls 
Bureau). Applications to export most goods and technology on the Export Control List, including 
those destined to countries on the Area Control Li st, are free of charge.  Nominal fees apply on 
applications to export of certain other specified  goods, including certain controlled medical, forest, 
and agricultural products.124  The Canada Border Services Agency and the Royal Canadian Mounted 
Police are responsible for the enforcement of export controls. 
115. Most items on the Export Control List are "sensitive" goods or technology, including dual-use 
goods, the export of which is controlled to impl ement Canada's international obligations and 
commitments.125  Canada is party to a number of mult ilateral export control regimes (including the 
                                                      
122 Exports to the United States that require a permit include atomic material and equipment, automatic 
firearms, logs, softwood lumber, pulpwood, roe herring and red cedar bolts, and blocks.  See Foreign Affairs and International Trade Canada (2011) p. 18. 
123 Foreign Affairs and International Trade Canada online information.  Viewed at:  
http://www.international.gc.ca/contro ls-controles/systems-systemes/ex col-ceed/index.aspx?lang=eng&menu_id
=73&menu=R. 
124 Fees are Can$14 fee for each application to export  medical, forest, agricultu ral, and food products 
on the Export Control List;  and Can$9 for softwood lumber products (Foreign Affairs and International Trade Canada, 2011). 
125 The ECL was last amended in April 2009, (see Canada Gazette , "Order Amending the Export 
Control List".  Viewed at:  h ttp://gazette.gc.ca/rp-pr/p2/ 2009/2009-05-13/html/s or-dors128-eng.html). WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 58 
  
 Wassenaar Arrangement, the Nuclear Suppliers Gro up, the Missile Technology Control Regime, and 
the Australia Group).  The Export Control List also covers re-exports of goods and technology of U.S. 
origin.  
116. The Export Control List includes a number of agricultural and forestry products, and 
miscellaneous items that require  export permits, such as logs, pulpwood, and softwood lumber 
products (destined for the United States);  peanut butter;  roe herring;  a nd sugar containing products, 
sugars, syrups, and molasses.126  The Export and Import Permits Act authorizes such export controls:  
(i) to ensure that any action taken to promote th e further processing in Canada of a natural resource 
produced in Canada is not rendered ineffective by reason of the unrestricted exportation of that natural 
resource;  (ii) to limit or keep under surveillan ce the export of any raw or processed non-agricultural 
product of Canada in circumstances of surplus suppl y and depressed prices;  (iii) to implement an 
intergovernmental arrangement or commitments (s uch as the Softwood Lumber Agreement with the 
United States);  (iv) to ensure that there is an  adequate supply and distribution of the product in 
Canada for defence or other needs (e.g. logs and pulpwood);  or (v) to ensure the orderly export 
marketing of any goods that are subject to import restrictions maintained by other countries (e.g. 
peanut butter, sugar and related products).127 
117. The export or transfer of any goods or technology to countries on the Area Control List is 
controlled and must be authorized by the Minister of Foreign Affairs.  The countries currently inscribed on the Area Control List are Belarus, the Democratic People's Republic of Korea, and 
Myanmar.
128 
118. Export restrictions also apply to Myanmar under Canada's Special Economic Measures 
(Burma) Regulations129, and to Iran under Canada’s Special Economic Measures (Iran) Regulations.130  
Virtually all exports to Myanmar are prohibited,  while exports of specified goods to Iran are 
prohibited.131  Canada also maintains export restrictions when required to do so by mandatory 
resolutions of the United Nations Security Council.132 
119. Exports of nuclear substances, equipment a nd technology are licensed and controlled under 
the Nuclear Safety and Control Act, administer ed by the Canadian Nuclear Safety Commission 
(CNSC).  Licensing application requirements and lis ts of controlled items are prescribed in the 
Nuclear Non-proliferation Import and Export Cont rol Regulations (SOR/2000-210).  The CNSC 
export licensing process enables Canada to take actions  to assure that all applicable domestic policy 
                                                      
126 Foreign Affairs and International Trade Canada (2007). 
127 Section 3 of the Export and Import Permits Act.   Viewed at:  http://laws.justice.gc.ca/en/E-19/ 
FullText.html. 
128 Canada Gazette , "Order Amending the Area Control List".  Viewed at:  http://gazette. 
gc.ca/rp-pr/p2/2010/2010-08-04/html/sor-dors162-eng.html. 
129 Canada Gazette .  Viewed at:  http://canadagazette.gc. ca/archives/p2/2007/2007-12-26/html/sor- 
dors285-eng.html. 
130 Canada Gazette .  Viewed at:  http://can adagazette.gc.ca/rp-pr/p2/2010/2010-08-04/html/sor-dors 
165-eng.html. 
131 Canada also maintains arms embargoes pursuant to UN Security Council resolutions (Foreign 
Affairs and International Trade Canada online informa tion.  Viewed at:  http://www.international.gc.ca/ 
sanctions/index.aspx).  Exports of au tomatic firearms are permitted only to countries with which Canada has 
intergovernmental defence, research, development, and production arrangements, which are on the Automatic 
Firearms Country Control List (AFCCL).  The list was extended during the Review period to include 11 NATO members (AFCCL online information.   Viewed at:  http://laws.justice.gc.ca/en/E -19/SOR-91-575/text.html). 
132 For the full list of countries subject to these sa nctions, see Foreign Affairs and International Trade 
Canada online information. Viewed at:  http://www.international.gc.ca/sanctions/index.aspx. Canada WT/TPR/S/246/Rev.1 
 Page 59 
 
 
 and international obligations that Canada has entered into are met, including those related to the non-
proliferation of nuclear weapons. 
120. Export restrictions for environmental purpo ses are generally maintained pursuant to 
multilateral environmental agreements, or Cana dian environmental a nd resource conservation 
programmes.  Thus, exports of certain (pollutin g or toxic) substances are controlled under the 
Canadian Environmental Protection Act (CEPA), and affected substances are listed in CEPA's Export 
Control List.133  Canada's international commitments with respect to the transboundary movement of 
hazardous wastes and recyclables are implemented through the Export and Import of Hazardous Wastes and Hazardous Recyclable Material Regul ations (the Export and Import Regulations) under 
the CEPA.
134  Export permits in relation to the CEPA a nd its regulations are issued by Environment 
Canada.  Under the Controlled Drugs  and Substances Act (CDSA), permits are required for exports by 
licensed dealers of certain controlled drug and precursor chemicals (see also Table III.9).135  Export 
permits related to the CDSA are issued by Health Canada. 
121. Obligations under the Convention on Interna tional Trade in Endangered Species of Wild 
Fauna and Flora (CITES) are impl emented under Canada's Wild An imal and Plant Protection and 
Regulation of International and Interprovincial Trade Act.136  Export permits are issued by 
Environment Canada.  Provinces and territories also have in place export controls for certain wild 
animals and plants.137 
122. Certificates issued by Natural Resources Cana da are required for exports of rough diamonds, 
as provided for by the Kimberley Process Certification Scheme.138 
123. Under the Cultural Property Export and Import Act, and implementing regulations, export 
permits are required for items on the Canadi an Cultural Property Export Control List.139  While the 
Minister of Canadian Heritage has responsibility for administration of the Act and its regulations, 
export permits are issued by the Canada Border Services Agency. 
124. Exports of crude oil, refined petroleum produc ts, natural gas and natural liquid gas, and 
electricity are subject to authorization (export orders  or export licences) issued by the National Energy 
Board (Chapter IV(3)). 
(iv) Export finance, insurance, and guarantees 
125. According to Canada Business (section (4)(i)), at end 2010, Canadian companies seeking to 
originate or boost export sales could qualify fo r financial support under 112 programmes that 
                                                      
133 Environment Canada online information.  Viewed  at:  http://www.ec.gc. ca/CEPARegistry/subs_list 
/Export.cfm. 
134 See also Environment Canada online informati on.  Viewed at:  http://www.ec.gc.ca/gdd-mw/ 
default.asp?lang=En&n=B9F17838-1. 
135 Department of Justice Canada online information.   Viewed at http://laws-lois.justice.gc.ca/eng/C-
38.8/index.html. 
136 Canadian CITES Control List.  Viewed at:  http://www.cites.ec.gc.ca/listedecontrole/index.cfm? 
lang=e&fuseaction=cList.swOptions. 
137 See Memorandum D19-13-1, 15 June 2001.  Vi ewed at:  http://www.cbs a-asfc.gc.ca/publications/ 
dm-md/d19/d19-13-1-eng.html. 
138 Memorandum D19-6-4 28, April 2009.  Viewed  at:  http://cbsa-asfc.gc.ca/publications/dm-md/ 
d19/d19-6-4-eng.html. 
139 Canadian Heritage online information.  Vi ewed at:  http://www.pch. gc.ca/eng/1268673230268/ 
1268675209581;%201269445120121. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 60 
  
 channelled public funds made availabl e at various levels of government.140  Eligibility for some of 
these programmes may be conditional on the company's province or territory of incorporation, its 
ownership characteristics, or the nature of its activ ities.  The funds are administered by a wide range 
of entities, including federal and provincial Cr own corporations, regiona l economic development 
agencies141, and provincial government departments.  Under the Business Cred it Availability Program 
(Chapter IV(6)), access to financing for Canadi an businesses has been improved by providing new 
resources and flexibilities to Export Developmen t Canada (EDC) and the Business Development 
Bank of Canada (BDC), both Crow n corporations wholly owned by  the Government of Canada. 
126. Canada's export credit agency, EDC, operates under the responsibility of the Minister of 
International Trade.142  Its core mandate is to support and deve lop, directly or indirectly, Canada's 
export trade and Canadian capacity to engage in th at trade and to respond to international business 
opportunities.  In addition to facilitating exporters ' access to funding, EDC works closely with the 
Trade Commissioner Service (see below) on training programmes, as well as in identifying and developing overseas business opportunities for Canadian companies.
143  As part of Canada’s response 
to the global crisis, EDC's manda te was temporarily expanded in March 2009 to include "support and 
development of domestic trade and business opportunities" for two years.144  At the same time, 
statutory limits on EDC's paid-in capital, outsta nding commitments under the Canada Account (see 
below), and contingent liabilities were increased (Chapter IV(6)).  According to the Canadian 
authorities, these measures have allowed EDC to complement the activities of other financial 
institutions, particularly by providing tailored financ ing to mature businesses;  they have also ensured 
that the Federal Government had the capacity to provide credit directly and meet the financing 
requirements of firms in strategic, hard-hit sectors of the economy. 
127. In general, EDC's trade finance and risk mitigation services (Table III.14) address financing 
gaps where the private sector may not be able to fully respond to the needs of Canadian businesses.145  
Eligibility for support is conditional on, inter alia , the transaction's potential benefit to Canada.  
Besides the anticipated impact on Canada's GDP,  the non-exhaustive list of factors taken into 
consideration in the assessment of Canadian benefit includes:  research and development spending in 
Canada;  purchases from Canadian suppliers;  employment impact;  potential for small and 
medium-sized business growth;  po ssibility of increased access to global markets or integration in a 
key supply chain;  market share maintenance or growth (particularly for new products or 
technologies);  environmental impact;  and dividends, royalties, or licensing fees.146 
                                                      
140 Data on funding commitments and amounts disburse d are not available.  For details on eligibility 
criteria and scope of financial support see Canada  Business online information.  Viewed at:  
http://www.canadabusiness.ca/eng/search/sof/. 
141 Atlantic Canada Opportunities Agency, Canada Economic Development for Québec Regions, 
Federal Economic Development Agency for Southern Ontario, Canadian Northern Economic Development 
Agency and Western Economic Diversification Canada.  Although not equal in legal status, the Federal 
Economic Development Initiative in Northern Ontari o (part of Industry Canada) has similar functions. 
142 Export Development Act.  Viewed at:  http://laws.justice.gc.ca/eng/acts/E-20/. 
143 An integrated process for the referral of clients is in place between the two entities. 
144 This period has been extended for an additional year, until March 2012, to ensure that Canadian 
businesses will continue to have access to financing, shou ld gaps re-emerge and not be filled by private-sector 
credit providers or other financial Crown corporations. 
145 In December 2009, the Government of Canada es tablished an advisory panel on credit insurance 
with a view to ensuring that EDC's insurance activities remain complementary to the services offered by the 
private sector. 
146 EDC online information.  Viewed at:  http://www .edc.ca/english/corporate_canadian_benefits.htm. Canada WT/TPR/S/246/Rev.1 
 Page 61 
 
 
 Table III.14 
EDC finance, insurance, and guarantee programmes, 2010 
Products Features 
Insurance  
Accounts Receivable 
Insurance Protects policyholders for up to 90% of losses resultin g from a wide range of commercial and political 
risks, such as:  foreign buyer inso lvency or default;  payment delay caused by a blockage of funds or 
transfer difficulties;  refusal of goods  by foreign buyer (provided that th e contract terms have been met);  
war or hostilities at destination or along the way;  and cancellation or non-rene wal of export or import 
permits.  Optional coverage includes:   protection against contract cancellation by buyer;  insurance for 
letters of credit transactions on a country-by-country  basis;  invoicing in fo reign currencies;  and 
insurance for receivables gene rated by providing services 
 
Single Buyer Insurance Covers export sales to the same custom er for a 180-day period.  Insures up to 90% of a Canadian 
company's losses on shipments or services originating in Canada worth up to US$250,000 
 
Contract Frustration Insurance Tailored coverage used for one-o ff goods, services, and project contracts.  Protects up to 90% o f costs 
incurred or receivables lost 
 
Political Risk Insurance Protects various forms of overseas busin ess interests for up to 90% of losses due to non-payment/breac h 
of contract or expropriati on by the host government, currency convers ion and/or transfer  difficulties, and 
political violence  
Performance Security Insurance Insures up to 95% of losses due to a wrongful call by the insured's counterparty on a surety bond, an 
irrevocable letter of credit or letter of guarantee.  Calls resulting from events beyond the insured's control 
are also covered  
Financing  
Line of credit Enables exporters to conclude sales via pre-arranged financing facilities set up between EDC and foreign 
banks or corporations.  That is, EDC may lend to a foreign bank for on-lending to buyers of Canadian 
exports, or EDC can establish a line with a major fore ign corporation that is repeatedly purchasing from 
one or more Canadian exporters 
 
Loan Loans between EDC and a buyer/borrower can be ar ranged for any export trans action.  Two basic types 
of loans are available: 
(i) Buyer Credit involves a financing arrangement be tween EDC and the foreign buyer (or a separate 
borrower on behalf of the buyer) to finance Canadi an exports generally related to a specific export 
contract; 
(ii) Supplier Credit transactions are structured to provide the exporter (s upplier) with the ability to 
provide its buyer with extended payment terms. 
EDC can provide pre-shipment financ ing to exporters, in conjunction w ith their bank, to finance costs 
directly related to an export contract.  EDC may also  provide financing to Cana dian companies to support 
their export business or their foreign investments 
 
Project finance Provides structuring exper tise and direct financing of complex, la rge-scale global projects across a variety 
of sectors (main focus is on:  energy;  telecommuni cations and infrastructure;  and mining, metals, and 
resources).  EDC also arranges project finance transactions in cooperation with other lenders 
 
Guarantee Provides a guarantee to a financial institution to cover either:  (i) loans to  foreign borrowers for the 
purchase of Canadian exports, or (ii) credit/collate ral arrangements with exporters in support of their 
export business or their foreign investments  
Equity and other forms of 
related investments Provides equity and/or other forms of related investments (including fu nd investments) in support of next 
generation Canadian exporters and to facilitate the globalization of existing Canadian companies 
 
Bonding  
Performance Security 
Guarantee Provides a bank with coverage against any calls pursu ant to a guarantee issued on an exporter's behalf.  
Encourages abandonment of collateral requirements 
 
Foreign Exchange Facility 
Guarantee Provides financial institutions with a guarantee to re place the need for collate ral at the conclusion of 
foreign exchange contracts that protect companies against currency fluctuations 
 
Table III.14 (cont'd)WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 62 
  
 Products Features 
Financial Security Guarantee Provides the bank with a second demand guarantee to secure  exporters' obligations in respect of su ppliers 
and offshore working capital facilities 
 
Surety Bond Insurance Provides 100% reinsurance or flexible risk-sharing arrangements to li censed surety companies to 
encourage them to offer bonding support to exporters 
 
Surety Fronting Services Available to exporters when financia l profiles or volume of business does not meet normal surety 
underwriting guidelines.  Surety bonds are thus issued by  licensed sureties with the full support of EDC.  
This allows smaller exporters to access a surety market that is not typically available to them 
 
Source:  Export Development Canada. 
128. EDC is financially self-sustaining and operates on commercial principles, charging interest on 
loans and premiums on its insurance products.  In addition, it may borrow in the commercial market 
under a government guarantee or make a request to th e Minister of Finance to borrow money from of 
the Consolidated Revenue Fund.  EDC is exempt fro m income or corporate taxes.  EDC's operations 
carried out through a market window typically fall w ithin its Corporate Account;  transactions that 
exceed EDC’s risk appetite, but are deemed by the Minister of International Trade to be in the 
"national interest", are administered through the Canada Account on behalf of the Government of 
Canada.147  National interest considerations include :  economic benefits to Canada (such as 
employment generated or sustained); importance of the export market to Canada;  and foreign policy 
implications, including Canada's bilateral relationship with the country in question. 
129. Business volume under EDC's Corporate Account increased from Can$66.1 billion in 2006 to 
Can$82.8 billion in 2009 (Chart III.3);  bu siness under its Canada Account increased from 
Can$3.6 billion to Can$14.9 billion.148  There were seven transactions under the Canada Account 
between October 2006 and December 2010;  most signif icant, in value terms, was support provided to 
the automotive industry.149  In 2009, EDC assisted 8,469 Ca nadian businesses, up from 6,805 in 
2006150; under its temporary domestic  mandate, EDC provided Can$2. 5 billion in support for 208 
companies. 
130. Canada's support to the aircraft industry thro ugh EDC was last challenged by Brazil in 2001 
under the WTO Dispute Settlement Understanding.151  In 2007, Canada worked with Brazil and other 
multilateral partners to establish the OECD Aircraft  Sector Understanding (ASU);  according to the 
Canadian authorities, since then, all EDC loans to  the sector have been provided on ASU terms.  A 
revised ASU entered into force on 1 February 2011;  it unified the terms, conditions, and procedures 
under which export credit support is offered to large and regional aircraft.  In August 2009, under the 
Canada Account, and conditional on an agreement being reached between EDC and Scandinavian 
Airlines (SAS), the Government of Canada made available "up to Can$173 million in repayable loans 
to help Bombardier Inc. complete and deliver an order for up to eight of its Q400 and CRJ900 
aircraft."152 
                                                      
147 Each Canada Account transaction requires the authorization of the Minister for International Trade, 
with the concurrence of the Minister  of Finance;  those exceeding Can$50  million or of a sensitive nature 
require Cabinet approval. 
148 Export Development Canada (2009). 
149 EDC online information.  Viewed at:  ht tp://www.edc.ca/english/disclosure_9239.htm. 
150 Export Development Canada (2006). 
151 See WTO (2007).  In 2007, Canada worked with Brazil and other multilateral partners to establish 
the current OECD Aircraft Sector Understanding (ASU);  a revised ASU was agreed upon, in principle, in 
December 2010. 
152 Foreign Affairs and International Trade Canada online information.  Viewed at:  
http://www.international.gc.ca/media_commerce/co mm/news-communiques/2009/387446.aspx?lang=eng. Canada WT/TPR/S/246/Rev.1 
 Page 63 
 
 
 05,00010,00015,00020,00025,00030,00035,00040,00045,00050,00055,000
Africa/Middle East
Asia/Pacific
Europe
North
America/Caribbean
South
America/Central
AmericaChart III.3
Canada's business volumes by indus try and geographic markets, 2006-09
05,00010,00015,00020,000
Extractive
Information &
Communication
Technology
Infrastructure &
Environment
Light Manufacturing
Resource
Transportation
Export Development Canada (2006 and 2009), Annual Report.(Can$ million)Business volume by industry
Source:2006 2009Business volume by geographic market
(Can$ million)
 
131. Contract performance guarantees are provide d by the Canadian Commercial Corporation 
(CCC), whose main mission is to enable Canadian exporters to access foreign public-sector markets 
through government-to-government contracting and procurement services.  The CCC's activities are 
funded through parliamentary appropriations (C an$15.5 million in 2010/11), as well as through fees 
for services rendered (Can$10.1 million in 2010/11).153  Its core business line remains the Canada-
U.S. Defence Production Sharing A rrangement (DPSA), which accounted for 79% of the total value 
of its commercial trading transactions in 2009/ 10.  While the CCC specializes in government-to-
government arrangements, it also facilitates Canadi an exporters' sales to overseas private-sector 
buyers.  Acting as a prime contractor, the CCC pr ovides a government-backed guarantee of contract 
performance, which eliminates the need to set up equivalent instruments with banks or other 
intermediaries.154  By serving as an intermediary on accounts receivable, the CCC may also assume 
some of the accounts receivable risk, thus im proving Canadian exporte rs' cash flow position. 
132. In the framework of its business developmen t activities (Chapter III(4)(i)), the Business 
Development Bank of Canada (BDC) also supports Canadian firms that  wish to expand globally.  At 
at end 2010 it had 5,600 exporter clients that ge nerated Can$22.3 billion in export sales.  Through 
loans and subordinate financing, BDC may prov ide working capital support (of up to Can$100,000) 
for exploration of new international opportunities,  as well as funding (in the range of Can$250,000 to 
                                                      
153 CCC (2010). 
154 CCC online information.  Viewed at:  http://www .ccc.ca/eng/bus_relatedInf o_nextSteps_foreign_ 
priv.cfm. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 64 
  
 Can$2,000,000) aimed at enabling Canadian SMEs to establish a footprint in a foreign country.155  In 
addition, BDC offers consulting services, including in the areas of global competitiveness assessment 
and international business developmen t planning;  these services are provided either directly or in 
partnership with the Forum for International Trad e Training, a not-for-profit organization, and the 
Department of Foreign Affairs and International Trade. 
(v) Export promotion and marketing assistance 
133. Various Canadian export promotion initiatives ar e in place at the federal, regional, and 
provincial levels; at end 2010, there were more  than 20 organizations and programmes offering 
international market expansion services.  Through a collaborative arrangement, the Canada Business 
Network provides a single point of access to relevant information.156  The range of trade advisory 
services available under export promotion progra mmes includes assistance in:  preparing for 
international markets, assessing market potential, finding business contacts, and resolving market 
access issues.  Canadian companies, particularly SMEs, may also be eligible for financial support 
(from Can$5,000 to Can$25,000) to hire international trade experts or qualified students under several 
programmes.157 
134. The Department of Foreign Affairs and Intern ational Trade (DFAIT) hosts Canada's most 
extensive network of international trade professiona ls, the Trade Commissioner Service (TCS).  The 
TCS collaborates with a range of partners to promot e Canadian economic interests abroad by assisting 
Canadian companies to export, invest, and innovate.158  While science and technology, and inward and 
outward investment are within the scope of its advisory services, export promotion constitutes its core 
line of operations (Chart III.4).  An empirical st udy of Canadian exporters of manufactured goods, 
spanning 1999-2006, found that TCS assistance had a positive impact on its clients' performance, both 
in terms of export value and market divers ification, relative to non-beneficiary firms.159  Since 
Canada's last Review, the TCS network has expa nded to over 150 overseas locations (up from 140) 
and 18 offices across Canada (up from 12);  its online portal, the Virtual Trade Commissioner, provides registered Canadian companies with person alized access to over 1,000 trade professionals.  
TCS export promotion activities are funded through the DFAIT budget;  funds are subject to "value 
for money" assessments on a five-year cycle.
160 
                                                      
155 In fiscal years 2009 and 2010, BDC authorized 856 loans for a total of Can$41.5 million.  
Information on earlier years, as well as on the number of export-related consulting contracts, was not made 
available. 
156 Canada Business online information.  Viewed at:  http://www.canadabusiness.ca/eng/guide/3111/. 
157 Canada Business online information.  Viewed at:  http://www.canadabusiness.ca/eng/105/165/923/. 
158 Foreign Affairs and International Trade Canada online information.  Viewed at:  
http://www.tradecommissioner.gc.ca/ eng/services-for-partners.jsp. 
159 On average, the value of export sales by firms that received TCS assistan ce was 17.9% higher than 
that of comparable exporters;  TCS assistance also had a positive impact on the average number of markets 
served or products sold by existing exporters.  The study does not inves tigate the effectiveness of different 
forms of assistance;  the authors note that the most frequently sought types of services were market prospect 
information and key contacts search;  other services included local compan y information, face-to-face briefing, 
visit information, and troubleshootin g (Van Biesebroeck et. al, 2010). 
160 During the review period, DFAIT outlays under the "international business development" business 
line were as follows:  Can$122.9 million (FY2006/07), Can$103.5 million (FY2007/08), Can$248.5 million 
(FY2008/09), and Can$222.3 million (FY2009/2010).  Expenditures under the Canada Account managed by EDC (see above), as well as fundin g for FDI attraction programmes a nd personnel-related costs, are not 
included in these figures (Departmental Performance Reports for Foreign Affairs and International Trade 
Canada.  Viewed at:  http://www.tbs -sct.gc.ca/dpr-rmr/index-eng.asp). Canada WT/TPR/S/246/Rev.1 
 Page 65 
 
 
 Chart III.4
Full Time Equivalents (FTE)a by region and by business line, 2009/10
FTE by region FTE by business line b
Africa
5.9%
Asia
28.0%
Europe
20.2% Latin Am. & Caribbean
10.9%Middle East
3.8%North 
America
(U.S. & 
Mexico)
18.4%Canada (RO)
12.8%CDIA
6.4%
FDI
10.9%
Innovation
(S&T)
9.4%
Market 
access
9.1%Trade 
development
62.1%Other
2.1%
Values are based on Canadian-based staff and locally engaged staff  positions at missions abroad and regional offices (RO) fund ed by 
the Department of Foreign Affairs and International Trade, as well as by other Government Departments.
CDIA: Canadian direct investment abroad;  FDI: foreign direct investment; S&T: Science and technology.a
b
Source:    Canadian Trade Commissioner Service.
 
135. Some TCS programmes offer firms and industr y associations financial support in their 
international expansion efforts (Table III.15).161  Since 2008, the Global Commerce Support Program 
amalgamates three antecedent funding programmes for Canadian national associations, communities, 
companies, and researchers;  its pillars are:  Gl obal Opportunities for Associations, Invest Canada-
Community Initiatives, and Going Global Innovation.  The Global Opportunities for Associations 
pillar co-finances national associations undertak ing new or expanded international business 
development activities for the benefit of an entire industry (including non-member firms)162; a TCS 
non-repayable contribution may c over up to 50% of eligible expenses, with a minimum of 
Can$20,000 and a maximum of Can$150,000 over a one-y ear period.  The Invest Canada-Community 
Initiatives pillar provides matching funds of up to 50% of eligible expenses to Canadian communities 
and locally-based non-profit organizations in their effo rts to attract, retain, and expand foreign direct 
investment;  non-repayable contributions ra nge from Can$3,000 to Can$300,000 for a one-year 
period.163  The Going Global Innovation pillar pr ovides Canadian researchers (from private 
companies, universities and non-government research  centres) with matching funds of up to 75% of 
                                                      
161 TCS online information.  Viewed at:  http ://www.tradecommissioner.gc.ca/eng/funding/home.jsp. 
162 Since 1971, the DFAIT has been supporting smaller companies that are either new to exporting or 
are expanding to new markets through its Program for Export Market Development.  The programme's direct-to-
companies element, known as PEMD-Industry, was discontinued in 2004;  the surviving facility for 
associations, PEMD-Associations has been renamed the Global Opportunities for Associations Program. 
163 The Invest Canada-Community Initiatives Program came into effect in D ecember 2008;  it replaced 
the Community Investment Support Pr ogram, which was established in 2 004 to replace the Program for Export 
Market Development-Investment (operational from 1998 to 2004). WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 66 
  
 eligible expenses incurred in pursuing intern ational collaborative R& D opportunities, with a 
minimum request of Can$5,000 and a maximum of Can$75,000.164 
Table III.15 
Amounts disbursed under TCS programmes, 2006-10a 
(Can$ million) 
 2006/07 2007/08 2008/09 2009/10 
Global Opportunities for Associati ons (GOA) 3.786 3.371 1.908 1.448 
Going Global Innovation (GGI) 0.344 0.298 0.507 0.79 
Invest Canada-Community Initiativ es (ICCI) 3.8 3. 497 3.304  3.067 
International Science and Technology Partners hip Program (ISTPP) 4.25 4.685 4.7 3.765 
DFAIT INC (Investment Cooperation Program)b 0 0 0 0.75 
Total 12.18 11.851 10.419 9.82 
 
a Amounts rounded to nearest thousand as at fiscal year end (31 March). 
b Programme transferred from the Canadian Intern ational Development Agency to DFAIT in 2009/10. 
 
Source:  Department of Foreign Affairs and International Trade (DFAIT), Canada. 
136. Operational since 2005, the International Scie nce and Technology Part nership Program funds 
up to 50% of the Canadian costs of bilateral joint research projects proposed by companies, 
universities, and other private-sector research and deve lopment institutes.  It is intended to foster 
stronger science and technology relationships with Isr ael, India, China, and Brazil.  Launched in 2010, 
the Investment Cooperation Program encourages Cana dian private sector engagement in developing 
countries that contributes to economic developmen t and poverty reduction.  Activities eligible for 
non-refundable cost-share contribut ions include investment viability studies, technology adoption, and 
the design and implementation of socio-economic  and environmentally beneficial practices.165 
(vi) Other measures affecting exports 
137. Non-excisable goods are zero-rated under the GST/HST (see section (2)(v)), as well as under 
provincial sales taxes, if delivered or made available to a purchaser outside Canada.166  Similar zero-
rating applies for supplies of services (with some exceptions)167 where made to a non-resident and to 
intellectual property where the purchaser is a non -resident who is not registered for GST/HST 
purposes. Since March 2007, zero-rating also applies to supplies of intangible personal property (with 
some exceptions)168 that may not be used in Canada. 
                                                      
164 Going Global Innovation became operational in 2 001 as a stand-alone programme; it was renewed 
in 2008 under the Global Commerce Support Program. 
165 The Investment Cooperation Program (ICP) was transferred to the DFAIT following a revision of 
the Industrial Cooperation Program, which had been administered by the Canadian International Development 
Agency from 1978 to 2009.  ICP remains part of Canada's official development assistance (ODA) for 
developing countries. 
166 Canada Revenue Agency online information.  Viewed at:  http://www.c ra-arc.gc.ca/tx/bsnss/ 
tpcs/gst-tps/gnrl/txbl/mprtsxprts/menu-eng.html. 
167 Exceptions from the general provision for zero-rated status of exports include:  a service supplied to 
a non-resident individual while that individual is in Canada;  an advisory, consulting, or professional service 
provided in connection with criminal, civil, or administrative litigation in Canada;  a service performed in 
respect of real property located in Ca nada;  a service performed in respect of goods situated in Canada when the 
service is performed;  certain postal and transportation services.  These services may be zero-rated under other 
general provisions for zero-rated status of supplies. 
168 Intangible personal property (IPP) is defined as rights that are enforceable by the courts, including Canada WT/TPR/S/246/Rev.1 
 Page 67 
 
 
 138. Under the Export Distribution Centre Pr ogram, export-oriented, non-manufacturing 
businesses may be authorized by the Canada Revenu e Agency to acquire or import most inventory 
and parts, or import a customer's goods for processing, GST/HST-free.169  Authorizations remain in 
effect for three years, unless revoked earlier, and may be renewed.  Beneficiaries of this programme 
avoid having to pay the tax at the time of ac quisition or importation and claim it back as a tax 
credit.170  Registered Canadian businesses that are author ized by the Canada Revenue Agency to take 
part in the Exporters of Processing Services Progr am may be granted relief from payment of the 
GST/HST on imported goods owned by a non-reside nt entity when the goods are imported for 
processing in Canada and subsequently returned to the non-resident owner.171  The processor must not 
be closely related to the non-resident owner or ha ve an ownership interest in those goods or the 
resultant processed by-products.  The goods must be exported from Canada within four years of the 
date they were reported and accounted for on importation.  In addition, businesses engaged 
exclusively in export trading (export trading houses) may be authorized to acquire goods for export on 
a GST/HST-free basis.  At least 90% of the total value of their purchases for resale in the following 
12 months must be for export; the goods must not  be consumed, used, processed, transformed or 
altered after being purchased and prior to being exported.172  A range of other tax relief measures, at 
federal or provincial level, address specific import-export scenarios. 
139. Through its Duty Deferral Program, the Canada Border Services Agency (CBSA) offers the 
possibility to defer, relieve, or refund the payment of most duties and taxes on imported goods that are 
ultimately exported, whether or not the goods are further manufactured in Canada.173  Under the 
programme's drawback option, businesses may request a refund of duties and taxes paid on imports 
that were subsequently exported.   Under the duty relief scenario, goo ds intended for export may be 
imported duty free, even if they undergo further processing.174  Through the customs bonded 
                                                                                                                                                                     
contractual rights, options, and rights in relation to goods that are not in possession.  Exceptions from the 
general provision for zero-rated status of exported IPP include:  a supply made to an individual, unless the individual is outside Canada when the supply is made;  a supply of IPP that relates to real property that is 
situated in Canada or to tangible personal property that is ordinarily situated in Canada;  a supply of IPP that 
related to a supply of a service that is made in Canada and is not zero-rated as an export, a transportation service 
or a financial service;  a supply of IPP that may only be used in Canada;  or a supply of making a 
telecommunications facility that is IPP available for use in providing a telecommunication service.  Canada 
Revenue Agency online information, GST/HST Info . sheet GI-034.  Viewed at:  http://www.cra-
arc.gc.ca/E/pub/gi/gi- 034/ gi-034-e.html. 
169 Eligibility criteria include that:  the person will not engage in the substantial alteration of property in 
the year;  either the person's percenta ge value-added attributable to non-basi c services in respect of customers' 
goods for the year will not exceed 10% or the person's percentage tota l value added in respect of customers' 
goods for the year will not ex ceed 20%;  and the person's export revenue percentage for the year will be at least 
90%. 
170 Canada Revenue Agency online information, GST/HST Technical Information Bulletin 3-088.  
Viewed at:  http://www.cra-arc.gc. ca/E/pub/gm/b-088/b-088-e.html. 
171 Processing includes the alteration, assembly, manufacture, modification, production, packaging, or 
repackaging of the imported goods (Canada Revenue Agency 2010). 
172 Canada Revenue Agency online information.  Vi ewed at:  http://www.cra-arc.gc.ca/E/pub/gm/ 4-5-
2/4-5-2-e.html#P119_10138. 
173 Duties and taxes under the CBSA's administrative authority include:  customs duties;  anti-dumping 
and countervailing duties;  and excise taxes (other than the GST/HST) and duties.  Excise taxes are not relieved 
on certain designated goods as defined in the Customs Act (e.g. gasoline).  While, in general, GST/HST relief is 
administered separately by the Canada Revenue Agency , it is automatically granted to imports stored at a 
customs bonded warehouse.  CBSA online information.  Viewed at:  http://cbsa- asfc.gc.ca/import/ddr-red/ 
menu-eng.html. 
174 The range of eligible processing activities compri ses minor adjustments, repairs and full-fledged 
manufacturing.  There is no requirement to separate domestic and export production;  imported and domestic WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 68 
  
 warehouse option, imported goods may qualify for a deferral of duties and taxes until their 
commercial entry on the Canadian market.175  While stored at the warehouse, the goods may undergo 
certain minor manipulations, including labelling, testing, packaging or repackaging, display, dilution, and normal servicing and maintenance. 
140. The drawback, duty relief, and bonded warehouse options may be called upon 
interchangeably without paying duties; in general,  a time limit of four years from the goods' date of 
importation applies.
176  In general, businesses do not have to post a bond to financially secure their 
liability. 
141. Canada's NAFTA obligations place limits on the amount of customs duties and anti-dumping 
and countervailing duties refundable or deferrable when re-exporting non-NA FTA originating goods 
to Mexico or the United States.  Relief of these duties is only allowed in an amount equal to the lesser 
of (i) the customs duties owed on the goods when imported into Canada and (ii) the customs duties owed on the end-products when exported to Mexico or the United States.
177 
142. Several remission programmes, including the Ca nadian Goods Abroad programme, enable 
goods to return to Canada with full or partial re lief of the duties and taxes, including the GST/HST, 
after they have been exported for repair, alterati on, or work done abroad, provided certain conditions 
are met.178 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives and other assistance to business 
143. Official support to Canadian businesses is ava ilable in various configurations, with public 
funds being allocated and administered both at the federal and sub-federal levels.  Most initiatives 
tend to promote entrepreneurship, innovation, a nd regional development;  a number of programmes 
also focus on social and cultural priorities or sp ecific industries, including agri-food (Chapter IV(2)), 
shipbuilding, textiles, defence, fisheries, and en ergy.  The range of support measures includes:  tax 
incentives;  grants, non-repayable and repayable fina ncial contributions;  advisory services;  loan 
guarantees;  credit insurance;  and equity financing.  In some cases, federal and/or provincial financial 
assistance may be provided at preferential terms to, or be exclusively targeted at, Canadian-controlled 
private corporations;  public aid falls outside  the scope of Canada's competition regime 
(section (4)(iv)). 
144. Certain official support initiatives may be c ontingent upon local-content requirements.  For 
instance, the feed-in tariff programme for renewa ble energy (Chapter IV(3)), established by the 
province of Ontario in 2009, has prompted Japan to  formally request consu ltations with Canada under 
                                                                                                                                                                     
raw materials can be used interchangeably.  Goods that are consumed or expended in a manufacturing process 
are also eligible under the programme. 
175 There are no citizenship or residency restricti ons on the operator of the warehouse.  An annual 
licensing fee applies;  warehouse operators may also have to post security, based on the types of goods to be 
imported and their financial compliance profile.  CBSA online information.  Viewed at:  http://cbsa-asfc.gc.ca/import/ddr-red/tab8-eng.html. 
176 Imported spirits used to manufacture distilled sp irits must be exported within five years. 
177 Exceptions to this rule include goods export ed in the same condition as imported and certain 
specific cases (e.g. orange or grape fruit concentrates between Canada and the United States).  See Memorandum 
D7-4-3.  Viewed at:  http://cbsa-asfc.gc.ca/publications/dm-md/d7/d7-4-3-eng.pdf. 
178 Memorandum D8-2-1.  Viewed at:  http://cbsa- asfc.gc.ca/publications/dm-md/d8/d8-2-1-eng.pdf. Canada WT/TPR/S/246/Rev.1 
 Page 69 
 
 
 the WTO Dispute Settlement Understanding.  Japan's  concerns relate to the programme's local-
content and price-support components.  Likewise, wine  that is wholly composed of Canadian-grown 
agricultural products is exempt from excise duties (section (2)(v)). 
145. The primary point of access to centralized, up-to-date information on support initiatives is 
Canada Business, a website complemented by a network of service centres across Canada.179  At the 
end of 2010, 441 financial assistance programmes we re listed on the website, of which 112 would 
also support export-oriented projects (section (3)(iv)).180  According to the Canadian authorities, most 
of these programmes target Canadian small and medium-sized enterprises. 
146. Canada Business lists 23 active federal programmes, relevant to entrepreneurs, that have been 
notified to the WTO under the Agreement on Subs idies and Countervailing Measures;  financial 
assistance that in Canada's view does not meet the Ag reement's definition of a subsidy is typically not 
notified.  The most recent submission lists around 50 subsidy programmes at the federal and 
provincial levels that were operational in 2006/07 and 2007/08 (Table III.16).  Following the 
notification, Canada provided answers to requests for clarification by the European Union and the 
United States181;  similar requests were made by Australia and Chinese Taipei.182 
Table III.16 
Programmes notified to the WTO, 2006-08a 
Type No. of programmes Forms of support Amount disbursed
(Can$ million) 
Industrial 40 Grants;  repayable and non-repayable 
contributions;  loans;  loan guarantees;  credit 
insurance;  equity financing;  business 
information and advisory services 2,866.26 
Cultural 4 Loans;  mailing cost support;  grants 216.22 
Fisheriesb 8 Adjustment assistan ce;  retirement of 
commercial licences, vessels and gear and 
issuing of new licences to aboriginal groups;  
construction of new vessels;  training;  income support;  grants 94.27 
 
a Excludes subsidy programmes to agriculture, discussed in Chapter IV(2). b Including three provincial progr ammes (two in British Columbia and one in Manitoba). 
 
Source: WTO document G/SCM/N/186/ CAN, 9 September 2009. 
147. A conjectural assessment of the fiscal cost of Federal Government assistance provided to 
business in the form of tax incentives is published an nually by the Department of Finance in its Tax 
Expenditures and Evaluations Report.183  The report presents estimates of forgone tax revenue 
(Table III.17), due to exemptions, deductions, rate reductions, rebates, deferrals, credits and carry-
overs, on the basis of a broadly defined tax base benchmark.184  Measures that took effect during the 
review period include an accelerated capital cost allowance for manufacturing and processing 
machinery and equipment, and an investment tax cr edit for child-care spaces.  Canada also reduced 
                                                      
179 Canada Business is a collaborative arrangement among federal departments and agencies, provincial 
and territorial governments, and not-for-profit entities (Canada Business online information.  Viewed at:  
http://www.canadabusines s.ca/eng/page/about/). 
180 Canada Business online information.  Viewed at:  http://www.canadabusiness.ca/eng/search/sof. 
181 WTO documents G/SCM/Q2/CAN/38, 9 April 2010, and G/SCM/Q2/CAN/39, 31 March 2010. 
182 WTO documents G/SCM/Q2/CAN/37, 30 March 2010, and G/SCM/Q2/CAN/34, 3 February 2010. 
183 Department of Finance (2009). 
184 The Report highlights a number of caveats that should be taken into consideration in interpreting the 
estimates and projections. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 70 
  
 the small business tax rate applied to Canadian-cont rolled private corporations, while increasing the 
amount of eligible small business income.  Nevert heless, tax expenditure on that programme was 
projected to decline between 2006 and 2009, due to  the concurrent reduction in the benchmark rate185, 
as well as to the economic downturn. 
Table III.17 
Selected tax credits and deductions from corporate income tax, 2006 and 2010 
(Can$ million) 
Programmea Estimated expenditure (2006) Projected expenditure (2010)b 
Canadian film or video production tax credit 190 220 
Film or video production serv ices tax credit 110 100 
Partial inclusion of capital gains 5,854 3,020 
Atlantic investment tax credit 171 297 
Scientific research and experimental development 
   investment tax creditc 2,815 3,470 
Apprenticeship Job Creation Tax Credit 19 82 
Deduction of allowable small busin ess investment losses 10 11 
Low tax rate for small businessesd 3,780 3,920 
Exemptions from non-resident withholding tax 43,370 3,840 
Corporate mineral exploration and deve lopment tax credit Less than 2.5 24 
Flow-through share deductionse 105 63 
Low tax rate for credit unions 63 71 
Exemption from branch tax for transportation, 
    communications, and iron ore mining corporations Less than 2.5 13 
Loss offset provisions (other than farm and fishing) 6,933 7,685 
 
a Excludes charities, gifts and contributions ; federal-provincial financing arrangements;  and farming.  The cost of each tax 
 expenditure is determined under the assu mption that all other tax provisions remain  unchanged.  Since many tax expenditures 
 interact with each other, the overall imp act of several programmes ca nnot generally be calculated by adding up the correspondi ng 
 estimates and projections. 
b Projected expenditures are provisiona l and may be subject to change. 
c Canadian-controlled private corporations ar e eligible for an enhanced rate of 35% (as opposed to the general rate of 20%)  an d 
 more favourable refundability rates. 
d Granted only to private corporations that we re Canadian-controlled throughout the tax year. 
e Flow-through shares allow deductions for resource expenses renounced by eligible corporations. 
 
Source: Department of Finance Canada, Tax Expenditures and Evaluations 2010 .  Viewed at:  http://www.fin.gc.ca/ 
 taxexp-depfisc/2010/taxexp10-eng.asp.  
148. Most provinces offer additional tax incentives to businesses in the form of credits, rebates, 
exemptions, or holidays (Table AIII.8).  The ra nge of socio-economic objectives targeted by these 
measures includes promoting research and develo pment, supporting SMEs, generating employment, 
and stimulating investment, mineral exploration or the film and TV industry.  A number of provinces 
and territories (e.g. Alberta, Manitoba, New Bruns wick, Nunavut, Yukon) offer fuel tax exemptions 
or rebates for certain commercial activities. 
149. Operating under the responsibility of the Minister of Industry, the Business Development 
Bank of Canada (BDC) promotes Canadian entrepre neurship through tailored financing, venture 
capital, and consulting services (Table III.18).186  Although there are no formal restrictions on its 
eligible clients' industry focus or business deve lopment stage, BDC aims to support start-ups, 
                                                      
185 The general corporate income tax rate was reduced gradually from 21% in 2006 to 18% in 2010;  
and to 16.5% in 2011;  it is set to decrease further to 15% in January 2012. 
186 BDC online information.  Viewed at:  ht tp://www.bdc.ca/EN/abou t/Pages/default.aspx. Canada WT/TPR/S/246/Rev.1 
 Page 71 
 
 
 innovators, fast-growth companies, manufactur ers, and firms looking to expand overseas 
(Chapter III(3)(iv)).  Its financing operations typically complement those of private-sector institutions;  
it supports creditworthy projects that, in general, can not secure private funding due to the greater risk 
involved.187 
Table III.18 
Business Development Bank of Canada support, 2006-10 
(Can$ million, unless stated otherwise)a 
 2006 2007 2008 2009 2010 
Venture capital investments 140 151 130 137 85 
Subordinate financing (BDC portion) 47.1 58.4 48.7 46.3 66.7 
Loans outstanding 8,627 9,128 10,014 11,117 13,311 
Loan acceptancesb 2,462 2,692 2,907 2,832 4,343 
Consulting mandates (number)  2,037 2,451 2,770 2,720 2,504 
 
a As at 31 March. b Acceptance is defined as the point at which the client has accepted the authorized financing terms and conditions that BDC ha s 
offered.  Data prior to 2007 ar e based on BDC authorizations. 
 
Source: Business Development Ba nk of Canada (2010), Annual Report .  Viewed at:  http:/ /www.bdc.ca/en/Documents/ 
 annualreport/BDC_AR_ENG_10_v16.pdf. 
150. BDC's activities are funded by returns on its services and public funds injected by the 
Government of Canada, its sole shareholder, e ither in the form of paid-in capital or debt 
instruments.188  BDC's authorized share capital189 and borrowing capacity have been increased as part 
of Canada's response to the 2007 global financia l crisis, the Extraordin ary Financing Framework 
(Chapter IV.6). 
(ii) Government procurement 
151. According to latest available st atistics, the estimated annual valu e of contract awards by the 
Federal Government in 2009 was Can$20.4 billion.  Procurement by  provinces and territories in 
2007/08, totalled Can$17.2 billion (Table III.19).  Da ta were not available on procurement by 
municipalities, municipal organizations, publicly fund ed academic institutions, and health and social 
services entities (MASH entities), nor on procurement by Crown corporations. 
(a) Federal government procurement:  lega l, institutional and policy framework 
152. The overall structure of federal government procur ement remains the same as at the time of 
Canada's previous Review.  The Treasury Board (a cabinet level Committee), supported by the Treasury Board Secretariat has responsibility for setting federal government  procurement policy. 
 
                                                      
187 BDC's allowance rate for credit losse s (as a share of its loan portfolio) is at least five times greater 
than that of private-sector fi nancial institutions, BDC, 2010. 
188 Since April 2008, BDC has borrowed from Her Majesty in Right of Canada, acting through the 
Minister of Finance.  Prior to that, BDC used to issue debt instruments, which were secured by the Government 
of Canada. 
189 Through the issuance of additional common shares for a total amount of Can$1.456 billion, BDC's 
authorized capital (paid-in-capital plus  contributed surplus) increased fr om Can$1.316 billion in March 2009 to 
Can$2.772 billion in March 2010. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 72 
  
 Table III.19 
Value of government procurement, 2004-10 
Procurement by Federal Government departments and 
agencies Procurement by provinces and territories 
Calendar year Can$ billion Fiscal Year Can$ billion 
2010 .. 2009/10 .. 
2009 20.4 2008/09 .. 
2008 16.4 2007/08 17.2 
2007 14.8 2006/07 14.5 
2006 12.1 2005/06 11.5 
2005 15.9 2004/05 10.8 
 
.. Not available. 
 
Source:  Treasury Board of Canada Secr etariat Purchasing Activity Reports .  Viewed at:  http://www.tbs-
 sct.gc.ca/pubs_pol/dcgpubs/con_data/s iglist-eng.asp;  and MARCAN onlin e information.  Viewed at:  
 http://www.marcan.net/index_en/procure.htm. 
153. Public Works and Government Services Cana da (PWGSC) is the Federal Government's 
principal purchasing arm for contracts for most la rge, complex acquisitions by federal government 
departments, as well as for most goods valued over Can$25,000.  Procurement by federal departments 
and agencies of goods below this threshold as well as services and construction through PWGSC is 
optional.190 
154. Treasury Board approval is required for proc urements over certain thresholds:  these 
thresholds are higher for PWGSC than for proc urements by other government departments.191 
155. Federal government procur ement is governed by a combination of legislation, regulations and 
policy (Table AIII.6).  The main law is the Financial Administration Act (FAA), which gives the 
Treasury Board administrative policy authority and the authority to make regula tions with respect to 
the conditions under which contracts may be entered into , and to set entry approval limits.  As a result 
of amendments to the Act in 2006, it contains a legislative commitment to fairness, openness, and 
transparency in the bidding process.192  The Treasury Board Contracting Policy brings together 
various procurement-related le gislative requirements and gives broad guidance to Federal 
Government procurement officials;  which are el aborated on in greater detail in the PWGSC supply 
manual.193  The Government Contracts Regulations (GCRs), inter alia , set out bidding rules.194  The 
                                                      
190 According to the authorities PWGSC's authority is focused on goods for historical reasons:  when 
PWGSC was created goods accounted for most of governm ent purchases.  Over time procurement of services 
has become more significant because of contracting out  of work which would have previously been done 
internally.  However, no consideration is being give n to extending PWGSC's mandate to compulsorily cover 
services and construction. 
191 These thresholds are set out in the Treasury Boar d Contracts Directive, which is appended to the 
Treasury Board Contracting Policy (Appendix C).  Viewed at:  http://www.tbs-sct.gc.ca/pol/doc-
eng.aspx?id=14494&section=text#appC. 
192 FAA, Article 40.1.  Additionally, Article 42(1) allo ws the Governor in Council to make regulations 
to include integrity provisions in contracts. 
193 Treasury Board Contracting Policy.  View ed at:  http://www.tbs-sct.gc.ca/pol/doc-
eng.aspx?id=14494&section=text.  PWGSC's Supply Manual governs only contracting carried out by PWGSC.  
However, the authorities note that many other departments reference the Supply Manual when undertaking 
procurement on their own behalf. 
194 Government Contracts Regulations.  Viewed at:  http://laws-lois.justice.gc.ca/eng/SOR-87-402/201 
00930/page-0.html?rp2=HOME&rp3=SI&rp4=all&rp5=Government%20Contracts%20Regulations&rp9=cr&r 
p10= L&rp13=50. Canada WT/TPR/S/246/Rev.1 
 Page 73 
 
 
 authorities note that amendments to the GCRs have  been drafted to implement regulations allowing 
the incorporation of integrity prov isions into procurement contacts.  These are expected to enter into 
force in 2011. 
156. Federal Crown corporations are not covered by the procurement regime applicable to federal 
departments (i.e. the Government Contract Regulat ions and Treasury Board Contracting Policy).  
They are at liberty to develop their own procur ement policies, subject to any obligations under 
legislation and trade agreements. 
157. The AIT contains provisions applicable to MASH sector procurement.195  Although the 
procurement regime for the MASH sector in each province and territory varies, all MASH entities are 
required to post their tender notices on electronic tendering systems. 
158. As at the time of Canada's previous review, the Federal Government's procurement objectives 
are to acquire goods and services and to carry out  construction in a manner that enhances access, 
competition, and fairness and results in best value or, if appropriate, the optimal balance of overall 
benefits to the Crown and Canadian people. 
159. The Federal Government policy allows for re views of procurements over Can$2 million (but 
which are not subject to international agreements),  for potential benefits relating to:  regional and 
industrial development, aboriginal economic devel opment, the environment, and other socioeconomic 
activities.  For the most part, procurement re views are undertaken by an interdepartmental 
Procurement Review Committee.196 
160. Since 2006, green procurement has become a sp ecific policy objective, and Ministers and 
PWGSC are required to integrate environmental pe rformance considerations into their procurement 
processes.  This policy applies to all procurement.  The authorities noted that if a potential benefit is 
found, the procuring entity would include in the bi d documents the terms intended to achieve such a 
benefit.197 
161. While it had been government policy and practi ce since 2004 for departments and agencies to 
disclose all contracts over Can$10,000 on a quarterly basis, this practice has now been implemented 
in the Treasury Board Contracting Policy.  These requirements are set out in separate Guidelines.198  
In addition, pursuant to the Financial Administ ration Act, the Governor in Council may make 
regulations fixing terms to be expressly set out in contracts, including terms requiring the public 
disclosure of basic information on contracts valued over Can$10,000. 
162. A Code of Conduct for Procurement was de veloped by PWGSC for their employees and 
vendors in September 2007.  Its purpose is to ensure that public servants and suppliers are working 
from the same set of expectations, which ou tline acceptable conduct in PWGSC procurement.199 
                                                      
195 Annex 502.4 of the AIT sets out the procurement rules that apply to MASH entities. 
196 For more information on Canada's procurement review policy, see Treasury Board of Canada 
Secretariat online information.  Viewed at:  http:// www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=12074&section=text. 
197 PWGSC online information.  Viewed at:  http://www.tpsgc-pwgsc.gc.ca/ecologisation-greening/ 
achats-procurement/politique-policy-eng.html. 
198 Guidelines on the Proactive Disclosure of  Contracts.  Viewed at:  http://www.tbs-
sct.gc.ca/pubs_pol/dcgpubs/ContPolNotices/2009/04-03-eng.asp. 
199 PWGSC online information.  Viewed at:  h ttp://www.tpsgc-pwgsc.gc.ca /app-acq/cndct/contexte-
context-eng.html. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 74 
  
 163. Canada is a signatory to the WTO Government  Procurement Agreement (GPA).  Since its 
previous Review, Canada has made progress in cat ching up on outstanding notifications under Article 
XIX:5 of the Agreement.200  In 2007, the most recent year for which statistics are available, 
Can$1.9 billion of contracts by Federal Govern ment departments were awarded above GPA 
thresholds.  This represents 13% of the total valu e of contracts awarded at the Federal Government 
level. 
164. Canada is a party to four international trade agreements with Federal Government 
procurement obligations (including the government procurement chapter of the Canada-Chile Free 
Trade Agreement which entered into effect in  September 2008 and the Canada-Peru Free Trade 
Agreement, which entered into effect in August 200 9);  a bilateral agreement with the United States, 
signed in February 2010 which is related to sub-Fe deral Government procurement;  and one domestic 
trade agreement (the AIT) (Table III.20).  Cana da has signed industrial security memoranda of 
understanding with 12 countries, which permit privat e-sector industries in the signatory countries to 
participate in each other's sensitive government contracts and projects.201  No new MOUs were signed 
over the review period.  The authorities confirmed that there are no local-content requirements in any 
procurements covered by international commitment s.  They noted that currently 20 out of 22 
comprehensive land claim agreements (CLCAs) c ontain measures, including procurement measures, 
to encourage the economic development of the A boriginal groups represented by these agreements.202  
Local-content requirements may be found in proc urement not subject to international trade 
agreements. 
Table III.20 
Agreements covering government procurement 
Agreement Coverage, exclusions, a nd selected features Thresholds 
AIT 
(Chapter 5) 
 Equal market access opportunity to procurement for "Canadian" 
suppliers (those that have a place of business in Canada, as defined 
under Article 518 of the AIT) 
Covers 97 Federal Government departments and agencies, 10 
provincial governments and 2 te rritories (excludes Nunavut) 
Also covers MASH entities (except in Yukon) 
Covers 38 federal Crown corporations Does not apply to procurement related to cultural industries or 
aboriginal culture 
For procurement not subject to the GPA or NAFTA:  tenders may be 
limited to Canadian goods or suppliers; also a preference (up to 10%) 
for Canadian value a dded may be required 
Provinces and territories may have their own procurement agencies, thresholds, and policies under the general framework of the AIT  
(Annex 502.3 for entities of a commercial  or industrial nature or that 
have been granted exclusive rights (Crown Annex);  Annex 502.4 for 
the MASH sector
a) 
 Federal departments and agencies 
Goods:  Can$25,000  
Services and construction:  Can$100,000 
 Federal Crown corporations 
Goods and services:  Can$500,000 
Construction:  Can$5,000,000   
MASH entities 
Goods and services:  Can$100,000 Construction:  Can$250,000 
Table III.20 (cont'd)
                                                      
200 In 2009, notifications were made for each of  the fiscal years from 1997 to 2007.  See WTO 
documents GPA/22/Add.5 (for 1997);  GPA/29/Add.5 (1998);  GPA/40/Add.5 (1999);  GPA/62/Add.5 (2000);  GPA/70/Add.5 (2001);  GPA/76/Add.6 (2002);  GPA/80/Add.6 (2003);  GPA/84/Add.5 (2004);  GPA/88/Add.4 
(2005);  GPA/91/Add.3 (2006);  and GPA/94/Add.3 (2007).  All of these documents are dated 12 June 2009. 
201 These countries are:  Australia;  France;  Germany;  Italy;  Israe l;  Netherlands;  New Zealand;  
Norway;  United Kingdom;  United States;  Sweden;  and Switzerland. 
202 Monitoring and reporting requirements in respect of Crown procurement contracts subject to 
CLCAs were clarified in June 2008. Canada WT/TPR/S/246/Rev.1 
 Page 75 
 
 
 Agreement Coverage, exclusions, a nd selected features Thresholds 
NAFTA 
(Chapter 10) Equal market access opportunity to procurement subject to thresholds 
and exclusions 
Covers 78 Federal government de partments and agencies and 10 
federal Crown corporations Excludes procurement by provinces and territories 
A number of specific goods and services are excluded (similar to 
GPA below) Federal departments and agencies 
Goods:  Can$27,300  
(Canada-United States);   
Can$76,600 (Canada-Mexico) 
Services:  Can$76,600 
Construction:  Can$9,900,000  
Crown Corporations 
Goods and Services:  Can$383,300 Construction:  Can$12,200,000 
 
Canada-Chile 
FTA 
(CCFTA) 
(Chapter Kbis) Applies only to federal procuremen t and does not include sub-federal 
procurement or MASH entities 
In addition to general exceptions, a number of specific goods and 
services are excluded Federal departments and agencies 
Goods:  Can$76,600 
Services:  Can$76,600 
Construction:  Can$8.5 million  
Crown corporations 
Goods:  Can$383,300 Services:  Can$383,300 
Construction:  Can$12.2 million 
 
Canada-Peru FTA (CPFTA) 
(Chapter 14) Applies only to federal procuremen t and does not include sub-federal 
procurement or MASH entities 
In addition to general exceptions, a number of specific goods and 
services are excluded  Federal departments and agencies 
Goods:  Can$76,500 
Services:  Can$76,500 
Construction:  SDR5,000,000 or Can$8,500,000 
 
Crown corporations Goods:  Can$383,300 
Services:  Can$383,300 
Construction:  Can$12.2 million  
WTO GPA Procurement commitments for sub-federal procurement are only 
available to the United States and are subject to the negotiation of a balance of concessions with othe r GPA parties.  Commitments for 
Crown Corporations are subject to negotiation of a balance of 
concessions with other GPA parties.  MASH entities are not covered.  Services commitments are offered on the basis of reciprocal access 
 
In addition to general exceptions, a number of specific goods and 
services are excluded
b Federal departments and agencies 
Goods and services:   SDR 130,000 (Can$221,300)
c 
SDR 355,000 (Can$604,500) 
Construction contracts:   
SDR 5,000,000 Can$8,500,000c 
Sub-federal departments and agencies 
Goods and services: SDR 355,000 (Can$604,500) 
Construction contracts 
 SDR 5,000,000 (Can$8,500,000) 
Crown corporations 
Goods and services SDR 355,000 (Can$604,500) 
Construction contracts 
SDR 5,000,000 (Can$8,500,000) 
a MASH entities include: municipalities, academic institutions, social  service agencies and hospitals.  Not all of the provisio ns of 
 the AIT apply to MASH entities (permissible discrimination is treat ed in part F.2 of Annex 502.4 of the AIT).  Provisions of t he 
 Annex may also not apply to procurem ents under certain circumstances (Parts I and L of Annex 502.4) or for economic 
 development purposes under exceptional circumstances (Part K of Annex 502.4). 
b These include: shipbuilding and repair; urban rail and transpor tation components;  transportation services; some communicatio ns, 
 detection and coherent radiati on equipment; oil purchases related to any strate gic reserve requirement; purchases made in supp ort 
 of safeguarding nuclear materials; dr edging work; and some office equipment and special industry machinery for the 
 Departments of Transport, Communications, and Fisherie s and Oceans and the successor entities of the Department of 
 Communications;  research and development; utilities; and hea lth and social, financial, co mmunications, photographic, mapping,  
 printing and publications services. 
c Threshold values in national currency for 2010-11 as notifie d by the Canadian authorities to the WTO (WTO document 
 GPA/W/309/Add.2, 21 December 2009). 
 
Source: WTO Secretariat;  Treasury Board Contracting Polic y Notice 2009-03 – Free Trade Ag reements:  Update of 
 Thresholds and New Free Trade Agreements.  View ed at:  http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/ContPol 
 Notices/2009/12-31-eng.asp. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 76 
  
 165. Under a bilateral agreement with the United St ates, Canada has opene d up procurement by a 
range of entities in all ten provinces and two of the three territories (Northwest Territories and Yukon) 
to the United States under the GPA, in return for re moval of the pre-existing United States' derogation 
against Canada in respect of U.S. procuremen t by state governments, as well as some additional 
procurement opportunities for Canadian suppliers.  Key elements of this bilateral agreement are being 
implemented through the GPA.  Although procuremen t at the provincial and territorial level in 
Canada has only been opened up to the United States , in its revised GPA offer, Canada has extended 
access to its sub-federal procurement opportunities to ot her GPA Parties, subject to the negotiation of 
mutually acceptable commitments. 
166. Canada is a signatory to a number of conventions that contain procurement-related 
provisions:  the United Nations Convention Agains t Corruption, the OECD Anti-Bribery Convention 
and the Inter-American Convention Against Corruption. 
167. There are a number of programmes to help supp liers become aware of federal procurement 
opportunities, for example, "Buy and sell" (formerly Business Access Canada).203  Other programmes 
assist businesses in particular regions of Canada, such as the Atlantic Canada Opportunities Agency 
and Western Economic Diversification.204  In Western Canada, Western Economic Diversification 
Canada works with government and business partne rs to seek opportunities for western companies 
arising from government procurement not covered by  international trade agreements.  Set-aside 
programmes exist for Aboriginal Business. 
(b) Bidding process 
168. As specified in the Government Contracts Regul ations (Section 5), the contracting authority 
must solicit bids before any contract is entered in to, although sole sourcing is permitted in specified 
circumstances.  Canada uses three bidding methods:  electronic bidding, traditional bidding, and advance contract award notices (ACANs) (Table III.21). 
169. In numerical terms procurements below Can$25, 000 accounted for 93% of contracts awarded 
in 2009 (some 300,000 contracts);  however, in value terms their share was only 6%.  While there is 
no obligation on the part of Federal Government departments and agencies to use competitive bidding 
for these lower-value contracts, many do.  No figures were available on contracts awarded under 
Can$25,000 using sole sourci ng and competitive bidding. 
170. In 2009, for contracts above Can$25,000 pr ocurement through non-competitive methods 
totalled Can$3 billion, and through competitive me thods totalled Can$10.9 billion (or 15.6 billion if 
net amendments are taken into account).  Of the competitive methods, electronic bidding is the most 
regularly used.  
171. PWGSC maintains standing offers to acquire certain products and services at established 
prices, which Federal Government departments and agencies are obliged to use.
205  These goods and 
services are selected on the basis that they are purchased regularly by most government departments 
                                                      
203 Buy and Sell online information.  Viewed a t:  http://www.achatsetven tes-buyandsell.gc.ca. 
204 Western Economic Diversification Canada online in formation.  Viewed at:  http://www.wd.gc.ca. 
205 The commodity groups affected are:  informa tion processing and related telecom services;  
professional, administrative and management support services;  ground effect vehicles, motor vehicles, trailers and equipment (including firmware);  software, supplies and support equipment;  furniture;  office machines, 
text processing systems a nd visible recording equipmen t;  office supplies and devices;  clothing, accessories and 
insignia;  fuels, lubricants, oils and waxes. Canada WT/TPR/S/246/Rev.1 
 Page 77 
 
 
 and agencies.  The authorities note that the rationale  behind standing offers is to streamline and reduce 
transaction costs and thereby achieve better value fo r money.  Standing offers are normally put in 
place using open competition, particularly as in most  cases they are subject to the requirements of one 
or more of Canada's domestic and international trade agreements .  Procurement notices and detailed 
bid documents are posted on MERX.  The duration of a standing offer is established at the time of the 
competition and varies by commodity and market cond itions;  it is generally 2-3 years or less.  The 
winning supplier agrees to provide the commodity at  the price or prices in their bid, under the 
conditions set out in the bid documents, fo r the term of the standing offer.   
Table III.21 
Federal government procurement bidding processes 
Contracting process Instances when used  Contracts:  number and value (2009) 
Non-competitive 
contracts/sole sourcing In the event of pressing emer gency;  when the estimated 
expenditure is less than Can$25,000 for goods and services, or Can$100,000 for architectural and engineering services and 
Canadian International Deve lopment Agency (CIDA) aid 
contracts;  instances when a co mpetition is not in the public 
interest;  or in cases where only one supplier is capable of 
performing the work. Contacts below Can$25,000:  
Number:  302,641 Value:  Can$1.2 billion 
 
Other non-competitive contracts: 
Number:  4,317 
Value:  Can$3 billion 
 
 
Bidding   
Electronic bidding 
 Used for any transaction covered by NAFTA or the GPA as 
well as any other transactions (not covered by trade agreements) where departments invoke their electronic 
competitive entry authority.a  Notices are posted on the 
Government's electronic tendering service (MERX). 
 Number:  8,134 
Value:  Can$6.5 billion 
Traditional bidding May be used when a transaction is not covered by trade 
agreements In most cases bidders are either directly invited to 
submit bids, or advertisements are placed in newspapers or 
trade publications.b 
 Number:  8,054 
Value:  Can$2.5 billion 
Advance Contract Award Notice (ACAN) Used when it considered that only one supplier can perform 
the work.  ACAN's are published in order to give suppliers an opportunity to challenge the proposed tender award by 
providing a statement of th eir capabilities.  ACANs are 
published on MERX by all departments. Number:  1,305 
Value:  Can$1.8 billion  
 a The Government's Contracting Policy sets out three levels of  contract entry authority for services contracts permitting a 
 department to enter into a contract (under the Ministers aut hority) without the need to obtain Treasury Board approval.  The 
 highest contact entry authority is provided when a cont ract is both competitive and advertised electronically.  
b The authorities noted that contract entry limits are much lower for traditional competitive bidding than for electronic biddi ng as 
 an incentive for departments to use electronic means. 
 
Note: Values have been rounded up.  
Source:  Treasury Board of Canada (2009) Purchasing Activity Report .  Viewed at:  http://www.tbs-
 sct.gc.ca/pubs_pol/dcgpubs/con_ data/par-09-rpa-eng.asp. 
(c) Dispute resolution 
172. As noted in Canada's previous Review, legi slative changes in 2006 provided for the creation 
of the position of Procurement Ombud sman, which was filled in May 2008.206  The Ombudsman has 
the power to review the procurement practices of Federal Government depart ments to verify fairness 
                                                      
206 The Federal Accountability Act (2006) introduced changes to the Department of Public Works and 
Government Services Act to provid e for the appointment of  the Procurement Ombudsman.  This position was 
filled by a Procurement Ombudsman Designate in September 2007, who was then confirmed into the position in 
May 2008. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 78 
  
 and transparency, and may make recommendations.  The Ombudsman also has the authority to review 
supplier complaints with respect to transactions  outside the jurisdiction of trade agreements.207  The 
Ombudsman reports annually to the Minister of P ublic Works and Government Services Canada who 
is required to table the report before Parliament.  In the most recent annual report, the Ombudsman 
drew attention to two main, long-standing probl ems:  incomplete file documentation from the 
Government to explain decisions made and actions  undertaken;  and poor communication between the 
Government and the supplier community.208 
173. Complaints involving alleged Federal Government breaches of the AIT, the GPA, NAFTA, 
CCFTA, or the CPFTA may be brought to the Cana dian International Trade Tribunal (CITT) by 
potential suppliers.  The CITT may also award re asonable costs to the winning party to cover 
expenses for participation in the proceedings, or to  a complainant for bid preparation.  The review 
process generally takes 90 days, with an express  option of 45 days.  The CITT reviews only 
complaints involving procurement by the Federal Government, not by provinces, territories or the 
MASH sector.  In 2009/10, the CITT received 154 co mplaints, representing aproximately 0.8% of the 
total number of contracts issued by PWGSC on beha lf of all Federal Government departments and 
agencies over that period.209  There are typically two or three complaints per year from foreign 
suppliers.  Most determinations with respect to th e validity of a complaint are related to breaches of 
the AIT, followed by NAFTA and the GPA. 
174. In addition to recourse to courts in matters of  contract law, suppliers, whether Canadian or 
foreign have recourse to the Federal Court of Canada for judicial review of the administrative fairness 
of any contracting actions.  The Contract Claims Resolution Board, which acted as an appeal/review 
agency for procurement-related disputes no longer exists. 
(d) Procurement by provinces and territories 
175. Procurement at the sub-federal level, is governed by provincia l, territorial or other sub-
Federal Government laws and proc urement regulations (Table AIII.6).  Sub-federal procurement is 
excluded from all international treaties except for th e GPA and, as mentioned, procurement at this 
level is open only to U.S.  suppliers.  For procurement within th e scope of the AIT, the provinces and 
territories grant similar access conditions to procurem ent from the rest of Canada, but do not extend 
this automatically to procurement from foreign suppliers.  Some provinces and territories grant 
provincial or regional preferences to procurement no t within the scope of the AIT or other internal 
procurement agreements. 
                                                      
207 More specifically, the Ombudsman may investigate:  (a) procurement that would be covered by the 
trade agreements but wh ere the contract value was considered below the trade threshold levels i.e. contract 
awards for the acquisition of goods (under Can$25,000 ) and services (under Can$100,000) with respect to 
complaints about the procurement process up to contract award;  and (b) contract ad ministration (i.e. timelines, 
documentation requirements, payment terms), regardless of the contract's dollar value.  For more information on 
procedures for making a complaint, see offer of the Procurement Ombudsman online information.  Viewed at:  
http://opo-boa.gc.ca/plainte-complaint-eng.html. 
208 Office of the Procurement Ombudsman online information:  Viewed at:  http://opo-
boa.gc.ca/rapports-reports/2009-2010/message-eng.html. 
209 CITT online information.  View ed at:  http://www.citt-tcce.gc. ca/publicat/ar2k_ e.asp#P1 096_54032. Canada WT/TPR/S/246/Rev.1 
 Page 79 
 
 
 (iii) State-trading, state-owned companies, and privatization 
(a) State-trading enterprises 
176. Canada's latest notification concerning state trading enterprises (STEs) covered the Canadian 
Dairy Commission (CDC), the Canadian Wheat Bo ard (CWB), the Freshwater Fish Marketing 
Corporation, and 13 provincial and territorial  liquor control authorities (Table III.22 and 
Chapter IV).210 
Table III.22 
Key features of notified state-trading enterprises 
STE and applicable legislation Key features 
Freshwater Fish Marketing 
Corporation (FFMC) The FFMC has the exclusive right to market and sell (both across provinces and abroad) the main 
commercial species of fish and fish products from  the freshwater commercial fisheries of certain 
provinces and areas (north-western Ontario, Albert a, Saskatchewan, and Manitoba).  It has no role 
with respect to imports, and competes with private traders of fish sourced from non-agreement areas or from imports.  The FFMC is required to operate on a self-sustaining basis. 
Liquor control authorities 
 
Importation of Intoxicating 
Liquors Act (IILA), 1928 Under the Importation of Intoxicating Liquors Act (IILA)a, Canada's provinces and territories have 
monopolies over the sale, importationb, sending, taking or transportation of intoxicating liquor (other 
than for sacramental or medicinal purposes; for manufacturing or commercial purposes not related to 
the use of liquor as a beverage; or if imported by  licensed private traders for blending with or 
flavouring their products).  Alcohol ic beverages may be sold through stores operated by a liquor 
control authority and/or through authorized privat e retailers;  distribution and warehousing services 
for importers are generally also provided by the liquor control authorities.  The IILA has been 
scheduled as a quantitative restriction maintained as an exception to the fr ee-trade provisions of 
NAFTA, and the Chile and Costa Rica FTAs.  
At the time of Canada's previous Review, eight  provincial liquor jurisdictions applied a higher 
service charge to imported products, justified on th e basis of higher carrying and operational costs.  
Updated information was not made available. 
 
a Department of Justice online information.  Vi ewed at:  http://laws.justice.gc.ca/en/I-3/247874.html. 
b The Alberta Gaming and Liquor Commission does not make  commercial decisions regarding product selection or 
 quantities of imported alcoholic beverages.  
Source:  WTO document G/STR/N/13/CAN, 6 August 2010. 
(b) State-owned enterprises 
177. As at July 2010, state-owned enterprises in Canada included 48 parent  "Crown corporations" 
wholly owned by the Government of Canada211, of which 3 were deem ed parent subsidiaries212, and 
1 was not yet fully operational (Table III.23).213  No information was available with respect to the 
areas of activity of the respective federal Crown corporations, or any exclusive or monopoly rights 
that they may exercise.  Some 28 federal Crown corp orations have been expr essly conferred with the 
full privileges and immunities of  the Crown (agency status)214, including exemption from federal and 
                                                      
210 WTO document G/STR/N/13/CAN, 6 August 2010.  Since the 2001-02 crop year, Canada's 
notifications do not provide details on the Ontario Bean Producers' Marketing Board, as it no longer operates as 
the exclusive marketer of  white beans produced in the province of Ontario. 
211 Information on provincial Crown corporations was not made available. 
212 Deemed parent subsidiaries are wholly owned by federal Crown corporations , but report directly to 
the Federal Government for the purposes of the Financial Administration Act.  In 2010, federal Crown corporations had 95 wholly owned subsidiaries (without de emed parent status), as well as 11 other subsidiaries, 
associates, and legal partnerships. 
213 The Government of Canada also has a stake in 2 enterprises that are partially owned by other levels 
of government:  Lower Churchill Development Corporation Limited (Natural Resources), and North Portage 
Development Corporation (Western  Economic Diversification). 
214 The Bank of Canada and the Canada Mortgage and Housing Corporation are excluded from this WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 80 
  
 provincial taxes and charges.  In addition, the co mmercial activities of Crown corporations may be 
exempt from Canada's competition law if they are not  in actual or potential competition with those of 
the private sector (section 4)(iii));  no distincti on of this kind applies to  immunity from taxation. 
Table III.23 
Federal Crown corporations, 31 July 2010 
Ministry responsible Crown corporation 
Agriculture and Agri-food Canadian Da iry Commission;  Farm Credit Canada 
Atlantic Canada Opportunities 
Agency Enterprise Cape Breton Corporation 
Canadian Heritage and Official 
Languages Canada Council for the Arts;  Canadian Broadcas ting Corporation;  Canadian Museum for Human 
Rights;  Canadian Museum of Civilization;  Cana dian Museum of Nature;  National Arts Centre 
Corporation;  National Gallery of Canada;  National Museum of Sc ience and Technology;  
Telefilm Canada 
Citizenship, Immigration and 
Multiculturalism Canadian Race Relations Foundation 
Environment Corporation for the M itigation of Mackenzie Gas Project Impactsa 
Finance Bank of Canada;  Canada Deposit Insurance Corporation;  Canada Development Investment 
Corporation;  Canada Pension Plan Investment Board;  PPP Canada Incb 
Fisheries and Oceans Freshwater  Fish Marketing Corporation 
Foreign affairs and International 
Trade Canadian Commercial Corporation;  Export De velopment Canada;  International Development 
Research Centre 
Human Resources and Skills Development Canada Employment Insurance Financing Board;   Canada Mortgage a nd Housing Corporation 
Indian Affairs and Northern 
Development First Nations Statistical Institute 
Industry Business Development Bank of  Canada;  Canadian Tourism Co mmission;  Standards Council of 
Canada 
Natural Resources Atomic Energy of Canada Limited 
Public Works and Government Services Defence Construction (1951) Limited 
Transport, Infrastructure and 
Communities Atlantic Pilotage Authority;  Blue Water Bridge  Authority;  Canada Lands Company Limited;  
Canada Post Corporation;  Canadian Air Tran sport Security Authority ;  The Federal Bridge 
Corporation Limited;  Great Lakes Pilotage Aut hority;  Laurentian Pilotage Authority;  Marine 
Atlantic Inc.;  National Capital Commission;   Old Port of Montréal Corporation Inc.b;  Pacific 
Pilotage Authority;  Pa rc Downsview Park Inc.b;  Ridley Terminals Inc.;  Royal Canadian Mint;  
VIA Rail Canada Inc 
Treasury Board Public Sector Pension Investment Board 
 
a A newly established Crown corporation, not fully operational as at 31 July 2010. 
 
b A wholly owned subsidiary of a Crown corporation that, pursuant to an Order in Council, reports as if it were a parent Crown 
 corporation. 
 
Source:  Treasury Board of Canada Secretariat (2010), Annual Report to Parliament – Crown Corporations and other 
 Corporate Interests of Canada .  Viewed at:  http://www.tbs-sct.gc.c a/reports-rapports/cc-se /2010/cc-se00-eng.asp.  
178. Crown corporations vary in size and in their reliance on government funding.  Total 
budgetary appropriations for fede ral Crown corporations stood at  Can$6.67 billion in 2009/10, up 
from Can$5.01 billion in 2005/06.  At the federal leve l, 26 of the 47 operational parent and deemed 
parent entities received financial transfers from the Government.215  In 2010, some 97% of total assets 
                                                                                                                                                                     
count because they are partial agents of the Crown;  only some of their activities are carried out under this 
status. 
215 At the time of Canada's previous Review, the Canada Mortgage and Housing Corporation 
(Can$2.613 billion) was the largest recipient of financ ial transfers, followed by  the Canadian Broadcasting 
Corporation (Can$1.143 billio n).  Approximately 88% of the total budgetar y appropriations received by federal 
Crown corporations were allocated among seven entities. Canada WT/TPR/S/246/Rev.1 
 Page 81 
 
 
 recorded were concentrated in six Crown corpor ations:  the Business Development Bank of Canada, 
the Canada Mortgage and Housi ng Corporation, Export Developmen t Canada, Farm Credit Canada, 
the Canada Post Corporation, and the Ca nada Development Investment Corporation.216  Whil e data 
availability constraints preclude a consistent comparison over time, these corporations have 
traditionally been among the largest federal state-owned enterprises. 
179. Provincial governments have full or  partial ownership interests in  companies active in a range 
of industries.217  A number of wholly owned enterprises operate in subsectors such as broadcasting 
(Télé-Québec, the Knowledge Network)218, and financial intermedia tion and insurance (ATB 
Financial, Agriculture Financial Services Corpora tion, Manitoba Agricultural Services Corporation).  
Typically, state-owned enterprises are also the sole providers of certain types of insurance that are 
mandatory under applicable provincial laws:  Société de l'assurance automobile du Québec 
(automobile-related personal injury or death insu rance), Régie de l'assurance-maladie du Québec 
(health and medicine insurance), Manitoba Public  Insurance Corporation (a utomobile-related property 
damage and personal injury insura nce).  Through an initial equity investment, the Government of 
British Columbia holds a 17.51% stake in Northstar Tr ade Finance Inc., an expo rt finance company;  
it has not provided any additional funding. 
(iv) Competition policy and price controls 
(a) Institutional and legal framework 
180. Competition law enforcement in Canada is handl ed by the Competition Bureau, headed by the 
Commissioner of Competition.219  The Competition Bureau investigates alleged violations of the 
Competition Act and decides whether to bring them before the relevant administrative or judicial 
body.220  Non-criminal matters are typically heard by the Competition Tribunal221;  criminal matters 
are referred to the Attorney General of Canada and may be brought before a Federal Court or a 
superior court of a province.222  In very limited circumstances, the Commissioner's decision on 
whether to commence and/or discontinue an inqu iry under the Competition Act may be subject to 
judicial review before th e Federal Court of Canada.223  On appeal, higher instance decisions are 
generally based on the evidence or iginally used;  new evidence ma y be admissible only if it meets 
                                                      
216 Treasury Board of Canada Secretariat (2010). 
217 Information on sub-federal state-owned enterprises, including their areas of activity and any 
(de facto  or de jure ) monopoly or exclusive rights they may exercise, was not made available. 
218 These companies are partly funded by annual grants from the respective provincial governments. 
219 The Bureau is responsible for the administrati on and enforcement of the Competition Act, the 
Consumer Packaging and Labelling Act, the Textile La belling Act, and the Precious Metals Marking Act. 
220 If a Bureau inquiry, a court judgment or a Tribunal decision, provide the Governor in Council with 
satisfactory evidence that the preventio n or lessening of competition in respect of any article is facilitated by the 
presence of customs duties, the Governor in Council may, by order, remove or reduce any such customs duties. 
221 The Competition Tribunal is composed of up to six judicial members appointed from among the 
judges of the Federal Court and up to eight lay member s.  Every application to the Competition Tribunal must 
be heard before no fewer than three or more than five  members sitting together, comprising at least one judicial 
and one lay member. 
222 Matters that fall under the criminal provisions of  the Competition Act include  price-fixing, market 
allocation, output restric tion, bid rigging, certain false or misl eading representations and certain deceptive 
marketing practices. 
223 According to the authorities, Canadian jurisprudence has consistently held that these circumstances 
must involve the Commissioner having acted in bad faith, having failed to consider relevant facts, or having 
based the decision on irrelevant considerations. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 82 
  
 certain conditions224, or if it is provided for a purpose other th an to challenge a determination made at 
trial (e.g., challenging the validity of the trial process). 
181. Since June 2002, private individuals and corpora tions have been able to  seek leave to apply 
directly to the Competition Tribunal with respect to non-criminal matters involving refusal to deal, 
exclusive dealing, tied selling, and market restrictions225;  since 2009, this has also been possible for 
matters involving resale price maintenance.226  However, recourse to private litigation remains 
modest.  Out of the 62 cases filed with th e Competition Tribunal be tween January 2006 and 
December 2010 only 9 were requests for leave by priv ate parties;  7 of them were dismissed and 1 
was withdrawn.  These statistics reveal that, to da te, the Competition Bureau's workload has hardly 
been relieved by private litigation provisions in Cana da's competition regime.  Ideally, private parties 
could play a prominent role in the detection of anti-competitive behaviour;  moreover, they, rather 
than the Commissioner of Competition, must assume  the burden of proof if their applications are 
being heard by the Competition Tribunal. 
182. While the relevant institutional framework rema ined unchanged throughout the review period, 
Canada modified several provisions of its Competition Act in 2009 (Table III.24).227  According to the 
Canadian authorities, in addition to ensuring stre amlined enforcement and greater deterrence, the 
adjustments were intended to better align Canada's legal requirements with those of its major trading 
partners, particularly the United States.  The Comp etition Bureau also revised its Immunity Program 
in 2007 and finalized its Leniency Program in 2010 (see below). 
183. The amendments implemented most, but not all, recommendations made by a Competition 
Policy Review Panel and the OECD.228  OECD recommendations on amendments to the Competition 
Act that were not implemented at this stage sought  to address the conditionality of formal sector-wide 
investigations on suspici ons of unlawful behaviour229, as well as the limited scope of private litigation 
rights.  Suggestions to expand th e latter focused on ensuring private access to the Competition 
Tribunal for all civil provisions of the Compe tition Act, as well as on allowing private follow-on 
compensation lawsuits for established non-criminal offences.230 
                                                      
224 The evidence should generally not be admitted if, by due diligence, it could have been adduced at 
trial;  the evidence must be relevant in the sense that it b ears upon a decisive or poten tially decisive issue in the 
proceeding;  the evidence must be cred ible in the sense that it is reasonab ly capable of belief, and the evidence 
must be such that if believed it could reasonably, when taken with the other evidence adduced at trial, be 
expected to have affected the result (Supreme Court of Canada in R. v. Palmer, [1980] 1 S.C.R. 759 at page 775). 
225 Bill C-23:  An Act to amend the Competition Act and the Competition Tribunal Act.  Viewed at: 
http://lois.justice.gc.ca/eng/2002_16/page-1.html. 
226 Bill C-10:  (Budget Implementation Act 2009), Part 12.  Viewed at:  http://www2.parl.gc.ca/ 
ousePublications/Publication.aspx?D ocId=3756934&Language=e&Mode=1. 
227 Bill C-10 (Budget Implementation Act 2009), Pa rt 12.  Viewed at:  http://www2.parl.gc.ca/ 
HousePublications/Publication.aspx?DocId=3756934&Language=e&Mode=1. 
228 Government of Canada (2008), and OECD (2004).  See also OECD document ECO/WKP(2005) 8.  
Viewed at:  http://www.oecd.org/officialdocuments /displaydocumentpdf&?cote=eco/wkp%282005%298&doc 
language=en3. 
229 Canada's Competition Policy Review Panel also recommended giving an independent institution the 
authority to conduct industry-wide studies, includin g regulatory impact assessments, and advocate for pro-
competitive improvements. 
230 In both cases, the recommendation does not apply to  civil provisions concerning the merger review 
process. Canada WT/TPR/S/246/Rev.1 
 Page 83 
 
 
 Table III.24 
Amendments to Canada's Competition Act, 2009 
Provision Description 
Conspiracy (anti-
competitive agreements) Introduction of a per se  prohibitiona of price-fixing, market allocation, and out put restriction;  any offence of this 
kind is subject to criminal prosecution (fines of up to Can$25 million and/or imprisonment  of up to 14 years, per 
offence).  Civil review procedures, including assessment of any harm to competition, apply to all other forms of 
potentially anti-competitive agreements.  An order prohibiting any person from doing anything under the 
agreement or dissolving the agreement may be issued. 
 
Bid-rigging Provision's scope was broadened to explicitly include the withdrawal of bids by  agreement. Fines at the court's 
discretion;  maximum term of imprisonment raised to 14 years (per offence). 
 
Abuse of 
dominance  Introduction of administrative monetary penalties (up to Can$10 million for first order and up to Can$15 million 
for subsequent orders) for profits stemming from abuse of  a dominant position.  Previously, except for abuse in 
the domestic airline industry, the Competition Tribunal was generally limited to orderi ng firms to discontinue the 
abuse. 
 
Deceptive 
marketing practices Increased maximum penalties for criminal offences (false  or misleading representati ons, deceptive telemarketing 
and deceptive notice of winning a prize):  fine still at court’ s discretion; term of imprisonment raised from 5 to 
14 years (per offence).  Higher administrative monetary penalties for civil offences: up to Can$750,000 for first 
order and Can$1 million for subse quent order (individuals); up to Can$10 million for first order and 
Can$15 million for subsequent order (cor porations).  Vendors (other than me re resellers or distributors) who 
make false or misleading representations may be ordered to make restitution to purchasers; an interim injunction 
to freeze their assets may be issued by the court. 
 
Merger review Introduction of a two-stage merger review process:  transactions are reviewed and cannot be closed for 30 days 
from the date of notification (1st st age);  the Competition Bureau may, at  its discretion, request supplementary 
information and must complete the review within 30 days after receiving a complete response (2nd stage). 
Mandatory pre-merger notification threshold raised from Can$50 million to Can$70 million and indexed to 
inflation.  Limitation period (within which the Compet ition Bureau can challenge a completed merger) reduced 
from 3 years to 1 year. 
 
Pricing Repealed criminal provisions dealing with pri ce discrimination, predatory pricing, geographic price 
discrimination and promotional allowances; these types of  conduct will still be addre ssed, as civil offences, 
under abuse of dominance provisions.  Decriminalization of resale price maintenance; a new civil provision 
applies to such practices if they have an adverse effect on competition. 
 
Airline industry All provisions dealing specifically with the airline industry are repealed. 
Obstruction and 
non-compliance Increased maximum fines and prison te rms for obstruction of Competition Bur eau investigations and failure to 
comply with orders and warrants. 
 a Agreements under the per se  prohibition are deemed illegal without a need to show that they have had an adverse effect on 
 competition in Canada. 
 
Source: WTO Secretariat, based on information provided by the Canadian authorities. 
184. Under the Competition Bureau's Immunity Program, implemented in September 2000 and 
revised in October 2007, the Director of Public Prosecutions of Canada (DPP) may grant immunity 
from prosecution to the party that is fi rst to disclose an undetected criminal  offence or to provide 
evidence before there are sufficient grounds  for referral of the matter to the DPP.231  In exchange for 
full cooperation with the investigation, the Comp etition Bureau may also recommend that the DPP 
consider some form of leniency for parties not e ligible for immunity.  A formal Leniency Program 
setting out the considerations to be taken into acc ount in making such recommendations was finalized 
and made public in September 2010.  A Memora ndum of Understanding between the Commissioner 
of Competition and the DPP, signed in May 2010, is expected to further improve transparency 
between the Competition Bureau and the Public Prosecution Service of Canada.232  The immunity and 
leniency initiatives have established an impressive  track record and stand out among the Competition 
                                                      
231 The Director of Public Prosecutions is the he ad of the Public Prosecution Service of Canada. 
232 Competition Bureau online information. Vi ewed at:  http://www.competitionbureau.gc.ca/ 
eic/site/cb-bc.nsf/eng/03232.html. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 84 
  
 Bureau's most powerful means of detecting serious offences.233  Over 2006-10, there were 41 cases 
involving the immunity and/or leniency programmes;   penalties (including 28 fines for a total of 
Can$74,114,000) were imposed in 15 of the 19 cases closed to date. 
185. Notwithstanding the legislative and procedural fine-tuning, Canada's competition regime is 
still undermined by numerous exemptions, partic ularly in connection to regulated conduct.234  T h e  
Competition Act does not apply to:  Crown corporations whose commercial activities are not in actual or potential competition with other persons;  agr eements between underwrite rs in relation to the 
underwriting of a specific security;  agreements a nd mergers involving federally regulated financial 
institutions (Section 49 (2));  mergers approved by the Minister of Transport;  the portion of the 
Canada Transportation Act addressing rates, tariffs and services for railway transportation;  Canada's 
obligations under an international air services agre ement or convention;  exemption orders granted 
under the Energy Supplies Emergency Act;  contra cts between farm products agencies and persons 
engaged in the production or marketing of a regulat ed farm product;  and cartels that set rates and 
conditions of service in liner shipping (with certain  exceptions).  In addition, the Act's provisions on 
abuse of dominance and, in certain cases, conspiracy
235, cannot prevent the exercise of rights pursuant 
to Canada's intellectual property legislation;  the trad e-restrictive use of such rights may be subject to 
special remedies (Chapter III(4)(vi)).  Canada's co mpetitive marketplace could be further enhanced by 
instruments, such as guidelines or memorandums of understanding, that clarify the working 
relationships between the Competition Bureau and th e various industry regulators operating at federal 
and provincial levels. 
186. Canada's competition regime follows the eff ects doctrine common to many jurisdictions;  
export-oriented concerted practices (including cartels ) that have no effect on the Canadian market and 
do not reduce or limit the real value of subject exports are excluded from the application of the 
Competition Act.  Canada's competition legislation also fails to address domestic market distortions 
that may arise from the provision of public aid or preferential tax treatment (section (4)(i)).  In 
addition, the Competition Act stipulates exceptions for agreements and mergers likely to bring about 
efficiency gains that will offset any anti-competitive effects.  With regard to mergers, Section 96.(2) 
stipulates two factors to be taken into consid eration by the Competition Tribunal:  a significant 
increase in the real value of exports;  or a signi ficant substitution of domestic products for imported 
ones.  These factors are not explicitly stated in  the case of potentially anti-competitive agreements. 
187. Specific controls apply to the prices of certain products and services, such as patented 
medicines (section (4)(v)).  Detailed informati on on price controls was not made available. 
                                                      
233 Competition Bureau online information. Vi ewed at:  http://www.competitionbureau.gc.ca/ 
eic/site/cb-bc.nsf/eng/03248.html. 
234 This situation has prompted some of Canada's tr ading partners to seek additional guarantees.  For 
instance, the 2004 Canada-EU Wines and Spirits Agreement (Annex VIII) contains provisions on fair 
commercial treatment by provincial Liquor Boards in Canada (Agreement between the European Community 
and Canada on Trade in Wines and Spirit Drinks.  Viewed at:  http://www.canadainternational.gc.ca/eu-
ue/assets/pdfs/agreement-wi nes-vins-accord-eng.pdf). 
235 Pursuant to the Copyright Act (Section 70.5(3)), agreements filed with the Canadian Copyright 
Board are exempt from the Competition Act's conspiracy  (anti-competitive agreements) provisions "in respect 
of any royalties or related terms and conditions."  Upon request from the Commissioner of Competition, the 
Board may examine an agreement and, having considered the Commissioner's and the parties' arguments, may 
alter the royalties and any related terms and conditions. Canada WT/TPR/S/246/Rev.1 
 Page 85 
 
 
 (b) Enforcement 
188. The number of complaints and requests received by the Competition Bureau fluctuated 
considerably over the review period (Table III.25);  in general, most complaints related to false and 
misleading representations, and deceptive marketing pr actices.  In 2009/10, the top five product or 
service categories by number of complaints were:  directory listings;  contests, sweepstakes and 
lotteries;  electronics and digital products;  health , medical, dental and optical products;  and clothing 
and personal accessories.  Merger examinations c onstituted a considerable share of the Competition 
Bureau's workload. 
Table III.25 
Competition Act enforcement, 31 March 2007 to 31 March 2010 
 2006/07 2007/08 2008/09 2009/10 
Total complaints/requests, of which 31,827 17,632 22,523 18,027 
Merger notification filingsa 18 15 12 10 
Advance ruling certificate requestsb 250 294 195 190 
Examinations and inquiries comm enced of which 436 444 423 316 
Mergers 300 337 242 218 
Civil, criminal and deceptive market ing examinations 136 107 181 98 
Proceedingsc before the Competition Tribunal, of which 11 10 12 19 
Private party requests for leave to make an application 3 0 5 0 
Matters referred to the Attorney General of Canada 4 7 7 2 
Matters before the Courts 10 14 10 8 
Examinations and inquiries concl uded, of which 448 471 450 342 
Deceptive marketing prac tices 58 62 127 74 
Restrictive trade practices 30 17 22 12 
Criminal matters 36 39 47 23 
Mergers, of which 301 337 245 221 
Abandoned due to competition concerns 1 1 1 1 
Cleared with remediesd 4 3 3 7 
Advance Ruling Certificates 198 222 134 139 
Advisory opinions (in all areas) 23 16 9 12 
Total fines and administrative monetary penalties (Can$ million)e3.10 10.00 6.49 32.96 
Number of sentencesf 0 2g 4 5 
Appeals (against 1st instance decisions)h 1 3i 1 1 
Decisions reversed/amended on appeal 1j 2k 1 1 
 
a Excludes merger notification filings for which advance ruling certificates were also requested. 
b Includes cases where a notification filing was made in  conjunction with an advance ruling certificate request. 
c Figures reported for the calendar, rather than the fiscal year;  may include multiple  proceedings in relation to the same cas e. 
d Includes mergers for which a consent agreement was registered with the Competition Tribunal, a nd mergers for which a foreign 
remedy resolved Canadian competition concerns. 
e Only for deceptive marketing practices and conspiracy cases. 
f Excludes conditional sentences/sentences  to be served in the community. 
g Represents one case in which prison sent ences were ordered for two individuals. 
h Excludes appeals of sentences. 
i These cases all related to the same matte r;  two of them were applications fo r judicial review of production orders. 
j This decision sent the original Competition Tribunal decision back for re-determination. 
k These decisions set aside produc tion orders on judicial review. 
 
Source: Competition Bureau Annual Reports.  Vi ewed at:  http://www.competitionbur eau.gc.ca/eic/site/cb-bc.nsf/eng/ 
h_00169.html;  and information provided by the Canadian authorities. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 86 
  
 (c) International cooperation 
189. During the review period, Canada  has continued to strengthen a nd formalize its international 
cooperation efforts with a view to minimizing fri ctions arising from procedural or substantive 
differences between national competition regim es, and promoting cross-border enforcement 
coordination.  Canada's cooperation instruments are e ither legally binding, state-to-state agreements or 
non-binding arrangements between the Commissione r of Competition and counterparts in other 
jurisdictions (Table III.26).  While the former may be  broader in scope than the latter, typical clauses 
include notification, consultation, positive comity, avoidance of c onflicts, and confidentiality.  In 
addition, Canada's free trade agreements (Chapter II(4)(a)) contain certain framework principles to 
ensure that its partners have a foundation for competition law. 
Table III.26 
Agreements/arrangements covering  competition issues, December 2010 
Country Cooperation Instrument Counterpart Entry into 
force 
Legally binding   
Costa Rica Canada-Costa Rica Free Trade Agreement, Chapter XI Government 2001 
European Union Agreement Regardi ng the Application of Competition 
Laws Government 1999 
Japan Agreement concerning Cooperation on 
Anticompetitive Activities Government 2005 
Mexico Agreement Regarding the Application of Competition 
Laws Government 2001 
United States Agreement on the application of positive comity 
principles to competition law enforcement Government 2004 
 Agreement Regarding the Application of Competition 
and Deceptive Marketing Practices Laws Government 1995 
Non-binding    
Australia and New Zealand Cooperation A rrangement Regarding the Application 
of Competition and Consumer Laws Australian Competition and 
Consumer Commission, New Zealand Commerce 
Commission 2000 
Brazil Cooperation Arrangement Regarding the Application 
of Competition Laws Council for Economic Defense, 
Secretariat of Economic Law of 
the Ministry of Justice, and 
Secretariat for Economic Monitoring of the Ministry of 
Finance 2008 
Chile Memorandum of Understanding Regarding the 
Application of Competition Laws Fiscal Nacional Económico 2001 
Republic of Korea Cooperation Arrange ment Regarding the Application 
of Competition and Consumer Laws Fair Trade Commission 2006 
United Kingdom Cooperation Arrangeme nt Regarding the Application 
of Competition and Consumer Laws Her Majesty's Secretary of State 
for Trade and Industry and the 
Office of Fair Trading 2003 
United States Cooperation Arrangeme nt Regarding the Application 
of Deceptive Marketing Practices Laws U.S. Postal Inspection Service 2008 
 
Source: Canadian Competition Bureau. 
190. Canada participates actively in internati onal fora on competition policy, including the 
International Competition Network, the Internationa l Consumer Protection a nd Enforcement Network, 
and the OECD Competition Committee and Global Fo rum on Competition.  Through its Competition 
Bureau, Canada also provides technical assistance and training to competition authorities in foreign 
jurisdictions.  Between 2006 and 2010, the Competition Bureau shared its expertise with beneficiaries 
and counterparts from 11 countries.  Canada WT/TPR/S/246/Rev.1 
 Page 87 
 
 
 (v) Intellectual property rights 
191. During the review period, Canada has mainta ined its active involvement in the TRIPS 
Council, as well as its constructive engagement in the negotiations concerning the establishment of a 
multilateral system for notification and registration of  geographical indications for wines and spirits.  
In addition, it has regularly reporte d on its technical cooperation activities236, as well as those related 
to technology transfer to least developed countries237, and the 2003 General Council Decision on the 
TRIPS Agreement and Public Health.238  There have been no dispute settlement cases involving 
Canada in relation to the TRIPS Agreement since 1999. 
(a) Institutional and legal framework 
192. There have been no institutional changes in th e administration and processing of intellectual 
property in Canada since its previous Review.239  Applications for protection of patents, trade-marks, 
copyright, industrial designs, and integrated ci rcuit topographies are handled by the Canadian 
Intellectual Property Office (CIPO)240; legal protection for new plant varieties is the responsibility of 
the Plant Breeders' Rights Office.241   While overall patent applicati ons remained fairly stable at 
around 41,000 between 2006/07 and 2008/09, the number of patents granted increased from 1,687 to 
1,824.242  Over that period, Canadian residents' shar es of both patent filings and grants decreased 
slightly to 12.6% (down from 12.9%) and 10% (down from 10.5%), respectively.  In 2008/09, registrations of trade-marks and industrial desi gns were at 26,697 (up from 23,236 in 2006/07) and 
5,659 (up from 3,841 in 2006/07), respectively.  Having risen from 8,432 to 9,254 between 2006/07 and 2007/08, copyright registrations dropped to 8,273 the following year. 
193. Canada's intellectual property statutes (Tab le III.27) confer on courts discretion in 
determining damages and imposing remedies, in cluding the recovery of damages or profits.
243  For 
greater deterrence, the courts may award exemplary damages; they also have full discretionary power 
over the allocation of legal costs.  Goods infringing  intellectual property rights may be subject to 
forfeiture, destruction or definitive removal from channels of commerce; the Copyright Act also 
provides for seizure of allegedly infringing copies or plates before judgement.  Criminal liability 
provisions for a range of specified offences are cont ained in the Patent Act and the Copyright Act;  
criminal penalties include fines (up to Can$100,000 and Can$1 million, respectively) and prison terms 
                                                      
236 WTO documents IP/C/W/550/Add.6, 26 October 2010;  IP/C/W/539/Add.5, 22 October 2009;  
IP/C/W/517/Add.5, 23 October 2008;  and IP/C/W/496/Add.6 , 7 December 2007. 
237 WTO documents IP/C/W/551/Add.6, 25 October 2010;  IP/C/W/519/Add.5, 23 October 2008;  and 
IP/C/W/497/Add.6, 3 December 2007. 
238 WTO documents IP/C/W/526, 23 October 2008, and IP/N/10/CAN/1, 8 October 2007. 
239 WTO document WT/TPR/S/179/Rev.1, 4 June 2007. 
240 CIPO online information.  Viewed at:  http://www. cipo.ic.gc.ca/eic/site/cipointernet-internetopic 
.nsf/eng/home. 
241 In 2009, there were 1,894 plant variety protection certificates in force in Canada, up from 1,558 in 
2006.  In 2006-09, the Plant Breeders' Rights Office regist ered a decrease in both to tal filings (from 498 to 311) 
and certificates granted (from 304 to 264).  Canadian residents' shares in total applications and certificates 
issued in 2009 were 23.5% and 13.3%,  respectively (International Union for the Protection of New Varieties of 
Plants.  Viewed at:  http://www.upov.int/expo rt/sites/upov/en/documents/c/44/c_44_07.pdf). 
242 At end February 2011, the CIPO annual report for 2009/10 had not yet been published;  IPR-related 
statistics were only available up until March 2009. 
243 Under the Copyright Act, a court must order the recovery of both damages and profits from the 
infringement.  The copyright owner may opt for an award of statutory damages (Can$500 to Can$20,000 per 
work infringed) instead of compensatory damages;  in  certain circumstances, the court may also set statutory 
damages below the prescribed lower threshold. WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 88 
  
 (up to one year and five years).  In addition, Cana da's Criminal Code stipulates criminal offences for 
trade-mark forgery and passing off, punishable by  fines and up to two years of imprisonment.  
Changes were recently made to sanctions for infringe ment of Canada's copyri ght regime (see below). 
Table III.27 
National IPR legislation a nd international agreements 
Legislation and term of 
protection Scope and selected limitations International agreements 
Patents 
Patent Act 1985 (amended) 
Patent Rules 1996 
(amended)   
Protection: up to 20 years 
from filing
a Coverage:  new and useful invention or new and 
useful improvement of existing invention;  
Inventions are defined to include:  art, process, machine, manufacture, composition of matter  
May not be granted for any mere scientific 
principle or theorem 
Higher life forms may not be patented
b Paris Convention for the Protection of Industrial 
Property;  Budapest Treaty on the International 
Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure;  Strasbourg Agreement Concerning the International Patent Classification;  
and Patent Cooperation Treaty (PCT);  under the PCT, 
CIPO began operations as an international search authority and an internati onal preliminary examination 
authority in July 2004; 
Patent Law Treaty, signed but not yet ratified  
Patented medicines (Notices of Compliance Regulations) Provide for effective patent enforcement over new 
and innovative drugs and the timely market entry of competing generic products 
 Obligations to provide eff ective patent enforcement 
measures under NAFTA/TRIPS 
Data protection   
Data Protection provisions 
in the Food and Drug 
Regulations:  8 years of data protection;  can be extended 
for an additional 6 months 
with the filing of results of a paediatric study 
 New pharmaceutical chemicals  
Pest Control Products Data 
Protection Regulations:  10 
years exclusive-use 
protection (plus up to 5 additional years if minor uses are registered) 
 Exclusive-use protection for data supporting 
registration of a new product, which contains a 
new active ingredient; other data supporting the 
registration are assigned a 12-year compensable status (e.g. where a new use is registered following mutual registration) Obligations to protect trade secrets under NAFTA and 
undisclosed information under WTO/TRIPS (including 
data supporting marketing approval of pharmaceutical 
and plant protection products). 
Trade marks and geographical indications 
Trade-marks Act 1985 
(amended) 
Trade-marks Regulations 1996 (amended) 
 
Trade mark protection:  15 years, renewable for further 
15-year terms on payment of 
renewal fees
c 
 Trade marks include:  a mark used by a person for 
the purpose of distinguishing or so as to 
distinguish wares or services manufactured, sold, leased, hired or performed by him from those 
manufactured, sold, leased, hired or performed by 
others;  a certification mark;  a distinguishing guise;  or a proposed trade mark.  Prohibited 
marks are listed in the Trade-marks Act (Articles 
9-11);  criteria for registrable trade marks in Articles 12-15 
 Paris Convention for the Protection of Industrial 
Property 
Once registered, 
geographical indications for 
wines and spirits:  indefinite 
protection.  The Trade-marks Act prohibits adoption and use, 
as a trade mark or otherwise, of protected GI's for 
wines and spirits which do not originate in the 
territory indicated by the GI.  Exceptions relate to: 
personal names; comparative advertising; 
continued use prior to 1994; disuse or cessation of 
protection in originating country; customary names; certain listed wines and spirits and failure 
to take proceedings 
  
Table III.27 (cont'd)Canada WT/TPR/S/246/Rev.1 
 Page 89 
 
 
 Legislation and term of 
protection Scope and selected limitations International agreements 
Protection for GIs for other 
goods:  same as for trade marks The Act provides for protection of GIs for goods 
other than wines and spirits through certification marks (Article 23-25), which have the same scope 
of protection as trade marks, except that the owner 
cannot be involved in the manufacture, sale, leasing etc. of the goods indicated by the GI 
(Article 23) 
  
Copyright and related rights 
Copyright Act (1985) 
(amended) Copyright regulations 1997 
(amended) 
 Protection:  50 years from 
the last author's death;  50 
years for some photographs and for published non-
dramatic cinematographic 
works;  50 years from creation for sound 
recordings and performances Applies to original literary, dramatic, musical, and 
artistic works;  performer's performance;  communication signals, and sound recordings 
 
Protection is provided to countries with whom Canada has a treaty or other agreement;  
exceptions to copyright infringement are outlined 
in Articles 29-32.2 of the Act.  They relate, inter alia , to fair dealing;  non-profit educational 
institutions, libraries, ar chives and museums;  
computer programs;  ephemeral recordings;  and persons with perceptual disabilities 
 
Levies are imposed on blank audio recording media sold in Canada (both domestically manufactured and imported) 
 Berne Convention for the Protection of Literary and 
Artistic works;  Rome Convention for the Protection of Performers, Producers of Phonograms and 
Broadcasting Organizations;  and UNESCO Universal 
Copyright Convention  
WIPO Copyright Treaty;  WIPO Performances and 
Phonograms Treaty, and WIPO Film Register Treaty, signed but not yet ratified 
 
Industrial designs 
Industrial Design Act 1985 (amended) 
Industrial Designs Regulations 1999 (amended) 
 
Protection:  up to 10 years, from the date of registration  Applies to original industrial designs defined as 
features of shape, configuration, pattern or 
ornament, and any combination of those features that, in a finished article, appeal to and are judged 
solely by the eye 
 Protection is not extended to:  features applied to a 
useful article that are dictated solely by a 
utilitarian function of the article;  or any method or principle of manufacture or construction 
 Paris Convention for the Protection of Industrial 
Property 
Integrated circuit topographies 
Integrated circuit topography Act 1990 
(amended) Integrated circuit 
topography regulations 1993 
(amended). Protection is for the three-dimensional 
configuration of the materi als that form integrated 
circuits, whether it has been embodied in an integrated circuit product or not.  Topographies 
that define only part of the structure needed to 
perform an electronic function may be registered.  Protection is extended to nationals of non-WTO 
Members on a reciprocal basis 
 None 
Protection:  up to 10 years, 
beginning on the filing date 
or the date of first 
commercial exploitation, whichever is earlier.  The 
term ends on 31 December 
of the 10th year Exceptions to exclusive rights include:  exhaustion 
of rights applying to inte grated circuit products 
legitimately put on the market anywhere in the 
world with the authoriza tion of the owner of the 
rights;  unauthorized copying of a protected 
topography for the sole purpose of either analysis 
or evaluation, or of research or teaching with respect to topographies;  and reverse engineering  
Table III.27 (cont'd)WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 90 
  
 Legislation and term of 
protection Scope and selected limitations International agreements 
Plant breeders' rights 
Plant Breeders' Rights Act 
(1990) (amended) 
Plant Breeders' Rights 
Regulations (1991) (amended) 
 
Protection is up to 18 years effective from the date of 
issue of the rights certificate Allows for protection of new varieties of plants;  
varieties must be new, dis tinct, uniform and stable.  
All plant species, except algae, bacteria and fungi 
are eligible for protection.  Applicants may only be citizens of, residents of, or have a resident 
office in Canada or a UPOV member state 
 Restrictions to the holders' rights include:  
protected varieties may be used for breeding and 
developing new plant vari eties;  and farmers may 
save and use their harvested seed of a protected 
variety for replanting on their own land without 
infringing on the holder's rights (farmers' privilege) 1978 UPOV Convention;  1991 amendments signed 
but not yet ratified 
 a Under section 46 of the Patent Act, pate nts filed prior to 1 October 1989 (so-calle d "Old Act patents") and still existent as  of 
 July 2001, benefit from a term of protecti on of either 20 years from filing or 17 year s from grant, whichever is greater.  The re 
 were approximately 138,000 such pate nts still in force in January 2001. 
b This was the subject of a Supreme Court ruling in D ecember 2002, as reported in Canada's previous TPR. 
c Trade marks, if not registered, are still prot ected through common law if they have been used. 
 
Source:  CIPO, CIFA. 
194. Provisions for compulsory licensing of intellectual property are set out in the Patent Act, the 
Integrated Circuit Topography Act, and the Co mpetition Act.  Apart from one case involving the 
exportation of medicines (see below), there has been no recourse to these provisions since 2006.  
Pursuant to the Patent Act, the abuse of exclusive rights244 may, inter alia , trigger the granting of a 
compulsory licence; the federal and provincial governments may receive authorization for the non-
exclusive use of patented inventions, pr edominantly to supply the domestic market.245  Since 
May 2005, Canadian manufacturers may also be gr anted an authorization for the purpose of exporting 
pharmaceutical products to eligible importing countries to respond to their public health challenges.246  
One such authorization was issued in September 2007, resulting in two shipments of medicines to 
Rwanda.247  Under the Integrated Circuit Topography Act, the federal and provincial governments 
may obtain authorization for the public non-commerc ial use of a registered topography.  Canada's 
Competition Act stipulates that the Federal Court may, inter alia , direct the granting of licences under 
any patent, copyright or registered integrated circ uit topography if the exclusive rights and privileges 
conferred thereby have been used to restrain trade.248 
                                                      
244 An application alleging abuse of the exclusive rights conferred under a patent may not be filed 
within three years of the date of granting of that patent. 
245 In its application to the Commissioner of Patents, the Government must establish that prior efforts to 
obtain authority from the patentee to use the patented  invention, on reasonab le commercial terms and 
conditions, have been unsuccessful within a reasonable period. 
246 The Commissioner of Patents grants authorizati ons to manufacture and export a pharmaceutical 
product upon receipt of a complete application and a notification from the Minister of Health that the 
pharmaceutical product complies with the Food and Drugs Ac t (Patent Act, Sections 21.01-21.2.  Viewed at:  
http://laws.justice.gc.ca/eng/P-4/page-6.html#anchorbo-ga:s_21_01). 
247 WTO document IP/N/10/CAN/1, 8 October 2007. 
248 Section 32 of the Competition Act specifies seve ral ways in which exclusive rights and privileges 
(conferred by a patent, a trade mark, a copyright, or a re gistered integrated circuit topography) may be used to 
restrain trade.  These include:  limiting manufacturing, storage, transporting or deal ing facilities;  injuring trade 
or commerce;  preventing or lessening the production, or unreasonably enhancing the price of a good;  and 
preventing or lessening competition in the production, manufacture, purchase, barter, sale, transportation or 
supply of any such article or commodity.  Besides gr anting a compulsory licence (in all cases except trade-Canada WT/TPR/S/246/Rev.1 
 Page 91 
 
 
 195. Canada's legislation contains several provisions regarding parallel importation.249  Under the 
Copyright Act, importing into Canada a copy of a work (other than a book ), lawfully made in a 
foreign jurisdiction, would constitute  an infringement of copyright if the copy infringes copyright in 
Canada, or would infringe copyright if it had be en made in Canada by the person who made the 
copy.250  A special regime applies to the parallel im portation of lawfully made book copies:  the 
consent of the copyright owner in  Canada is required for importation to take place in a market 
segment for which there is an exclusive distributor in Canada.251  In general, the importation of 
genuine trade-marked goods into Cana da cannot be restricted by the tr ade-mark owner or its Canadian 
licensee through an assertion of trade-mark rights.  Exceptions may apply in certain circumstances, 
such as "the identity of the owner of the Canadian  trade-mark" and where it can be shown that the 
mark used on the imported good is likely to cau se consumer confusion as to source, due to 
appreciable differences between the goods distri buted in Canada and the imported good.  The 
situation with patents is similar to that of trade marks. 
(b) Recent developments 
196. There have been no amendments to the Indus trial Design Act, the Integrated Circuit 
Topography Act, or the Plant Breeders' Rights Act during the review period. Canada's Trade-marks 
Act has also remained broadly the same, save for a couple of additions .  In 2007, amendments to the 
Act secured protection for the Red Crystal emblem252, a symbol linked with the International Red 
Cross and Red Crescent organizations, as well as for the Olympic and Paralympic marks.253  In 2010, 
CIPO consulted stakeholders on whet her to amend Canada's Trade-mark s Act with a view to aligning 
it more closely with the intent and principles of inte rnational treaties, such as the Protocol Relating to 
the Madrid Agreement Concerning the International Registration of Marks (the Madrid Protocol) and 
the Singapore Treaty on the Law of Trademarks (the Singapore Treaty). Canada is still assessing whether adherence to either treaty would be "of net benefit". 
197. Pursuant to the 2004 Canada-EU Wines and Spirits  Agreement, Canada is  terminating generic 
classification of 22 EU wine names and 2 spirit names in 3 phases.
254  Following each phase's entry 
                                                                                                                                                                     
restrictive use of a trade mark), the Federal Court may declare void, in whole or in part, any agreement or 
licence;  restrain any person from carrying out any of th e provisions of an agreemen t or licence;  expunge or 
amend the registration of a trade mark or an integrated circuit topography;  or revoke a patent. 
249 Canadian customs services are not entitled to seize infringing imports ex-officio.  Under the 
Copyright Act and the Trade-marks Act, customs officials are authorized to de tain goods only subject to a court 
order secured by the holder of the intellectual property right. 
250 An infringement would occur only if the importation is made to:  sell or rent out;  distribute to such 
an extent as to affect prejudicially the owner of the copyright;  or by way of trade distribute, expose or offer for 
sale or rental, or exhibit in public a copy of a work (including a sound recording, or a fixation of a performer's 
performance or of a communication signal). 
251 Exclusive distributors are deemed, for the purposes of entitlement to any remedies in relation to an 
infringement, to derive by licence an interest in the copyright in question.  In order to benefit from the protection 
provided under the Act, exclusive distributors must meet certain performance requirements concerning pricing and delivery times;  failure to meet the service standards for a given book would empower the retailer to 
purchase that title from any supplier (parallel importation of that title is permitted). 
252 Bill C-61:  An Act to amend the Geneva Conventions Act, An Act to incorporate the Canadian Red 
Cross Society and the Trade- marks Act, 13 June 2007. 
253 Bill C-47:  An Act respecting the protection of marks related to the Olympic Games and the 
Paralympic Games and protection against certain misleading business associations and making a related amendment to the Trade-marks Act, 14 June 2007. 
254 As outlined in Order Amending Subsections 11. 18(3) and (4) of the Trade-marks Act (SOR/2004-
85), use of the following names were removed from the list of terms deemed to be generic  on 22 April 2004:  WT/TPR/S/246/Rev.1 Trade Policy Review 
Page 92 
  
 into force, European producers may request pr otection of the relevant names as geographical 
indications on the Canadian market.  The second st age of the termination process, implemented at 
end-December 2008, reduced the number of wine na mes still benefiting from a transitional period to 
five. 
198. Canada's patent rules were modified in Oct ober 2010 to enhance legal certainty and reduce 
the administrative burden for applicants.255  As a result, an application can be completed upon 
submission of a statement that the applicant is the inve ntor's legal representative;  proof of status is no 
longer required.  The amendment also consolid ated and clarified provisions relating to the 
establishment of a filing date, the confidentiality period, and the payment of maintenance fees. 
199. Canada's Patent Act stipulates regulated price ce ilings for patented medicines to ensure that 
manufacturers' prices are not excessive.256  Under the Patented Medici nes Regulations, patentees are 
required to file price and sales information w ith the Patented Medicine Prices Review Board 
(PMPRB) twice a year257; investigation triggers and assessment methodology are set out in the Board's 
Excessive Price Guidelines.  If a price is deemed  excessive, the PMPRB may order the patentee to 
reduce it and to offset up to twice the amount of  any excess revenues derived from the sale of the 
patented medicine.258 
200. A revision of the PMPRB's guidelines, whic h entered into effect in January 2010259,  extended 
the scope of price reviews to provincial/territorial level; the calculation of excessive revenues is to be 
based on the average price across all relevant ma rkets in Canada (i.e., pharmacy, hospital, and 
wholesaler within each province/territory).260  In addition, the levels of therapeutic improvement 
employed in the selection of comparator medici nes were raised from 3 to 4 (i.e. breakthrough, 
substantial, moderate, an d slight/no improvement).261  The revised guidelines also introduce a number 
of methodology clarifications, including with regard to comparison drugs' prices, comparators for patented generic medicines, highest international pr ice comparison tests, and international therapeutic 
class comparison tests. 
201. During the review period, Canada's copyright-re lated reform efforts focused on strengthening 
deterrence and enforcement.  In June 2007, th e Criminal Code was amended to outlaw the 
                                                                                                                                                                     
Bordeaux, Chianti, Claret, Madeira, Malaga, Marsala, Medoc, Médoc, Mosel and Moselle, as well as the spirit 
drink names Grappa and Ouzo.  The name Tokay was ad ded to this list upon Hungary's accession to the EU.  
The names Bourgogne, Burgundy, Rhin, Rine, Sauterne, and Sauternes were phased out on 31 December 2008.  
Wine names Chablis, Champagne, Port, Porto and Sherry will be removed from Canada's generic classification on 31 December 2013. 
255 Canada Gazette  online information.  Viewed at:  h ttp://www.gazette.gc.ca/rp -pr/p2/2009/2009-12-
09/html/sor-dors319-eng.html. 
256 See WTO (2007). 
257 The reporting requirement does not apply to existin g veterinary medicines, for which a complaints-
driven approach has been in place since 2003.  According to the PMPRB, sales of patented medicines in Canada 
increased to Can$13.3 billion in 2009 (a year-on-year growth of 2.8%);  their share in total drug sales was 
62.4%, down from 64.7% in 2008. 
258 Excess revenues may be offset by reducing the price of the same or another patented medicine sold 
by the patentee in Canada;  or by making a payment to Her Majesty in right of Canada. 
259 Patented Medicine Prices Review Board (2009). 
260 This amendment applies to new patented medicines at the time of their introduction;  sub-markets 
are reviewed for existing patented drug products only if the investigation criteria are triggered. 
261 New secondary factors were also added;  these ma y potentially move a product's level of therapeutic 
improvement up to moderate. Canada WT/TPR/S/246/Rev.1 
 Page 93 
 
 
 unauthorized recording of a cinematographic work or its soundtrack in cinemas.262  Penalties for such 
offences include fines and prison sentences of up to two years (five years in case of commercial 
distribution of a copy).  In Marc h 2010, Canada's "proceeds of crime"  regime was also modified to 
enable Canadian enforcement authorities to se ize assets obtained through copyright infringement;  
such offences were previous ly excluded by regulation from the ambit of this regime.263 
202. Following a nation-wide consultation, the Co pyright Modernization Act (Bill C-32) was 
introduced in Parliament in J une 2010, and referred to a Legi slative Committee in November 2010.264  
The Bill aims to adapt Canada's copyri ght framework to the digital age by, inter alia , bringing it into 
line with international standards (WIPO Copyri ght Treaty and Performances and Phonograms Treaty), 
ensuring its technological neutrality, clarifying Internet service providers' liability, giving 
photographers the same rights as other creators, and facilitating access by the print-disabled.  
203. Regulations amending the Pest Control Produc t Regulations with a view to providing a 
legally enforceable and fair process for pesticide data  protection entered into force in June 2010.  The 
regulations provide ten years of exclusive-use pr otection for data used to support the Canadian 
registration of a new pesticide, which contains a new active ingredient.  Through the adding of minor 
uses, the exclusive use period may be extended by up to an additional five years.  Data that support 
registration and amendments to registration, but which do not qualify for exclusive-use protection, 
receive a 12-year compensatory protection status.  During the compensatory period, an applicant may 
use or rely on the data owner's data in exchange for adequate compensation.265 
                                                      
262 Bill C-59:  An Act to amend the Criminal Code (unauthorized recording of a movie), 22 June 2007. 
263 Regulations Amending the Regulations Excluding Certain Indictable Offences from the Definition 
of "Designated Offence", 25 March 2010.  Viewed at:  http://gazette.gc.ca/rp-pr/p2/ 2010/2010-04-1 4/ html/sor-
dors74-eng.html. 
264 Bill C-32:  An Act to amend the Copyright Act, 2 June 2010.  Viewed at:  http://www2.parl.gc.ca/ 
HousePublications/Publication.aspx?Docid=4580265. 
265 Regulations Amending the Pest Control Products Regulations.  Viewed at:  http://canadagazette. 
gc.ca/ rp-pr/p2/2010/2010-06-23/html/sor-dors119-eng.html.