Prepared by Susan Prowse.
These restrictions had already been lifted under the North American Free Trade Agreement (NAFTA).
Schedule I banks are “widely held”, that is, no one party may hold more than 10 percent of its shares. The 25 percent rule limited aggregate foreign ownership of Schedule I banks to 25 percent.
The tariff-rate quota consists of (i) a minimum-access commitment with a relatively low tariff rate for a product and (ii) a much higher tariff rate for all imports in excess of the minimum commitment.
For further information see “Canada - Recent Developments and Policies,” SM/95/81 (4/20/95).
NAFTA provisions require that duty drawbacks be reduced on products exported to the United States, effective January 1, 1996 and on products exported to Mexico, effective January 1, 2001.
Chapter 19 of the FTA covers provisions for dispute settlement for antidumping and countervail. Chapter 18 contains general provisions for all other dispute settlement. NAFTA extends the dispute-resolution provisions detailed in Chapter 18 and 19 of the FTA, to Chapters 20 and 19 of NAFTA, respectively.
For details on the tariff rate quotas see “Canada - Recent Developments and Policies,” SM/95/81 (4/20/95).
For further information see, “United States - Background Papers,” SM/95/18, (7/26/95).
A request for consultations is the first step in the WTO’s dispute-settlement procedures under Articles XXII and XXIII of GATT (1994).
During the last year, Canada has not taken any safeguard actions as governed by the WTO Agreement on Safeguards (as provided in Article XIX of GATT 1994) or any safeguard actions as provided by NAFTA, Chapter 8.
The working groups are to cover: market access; custom procedures and rules of origin; investment; standards and technical barriers to trade; sanitary and phytosanitary measures; subsidies, anti-dumping and countervailing duties; and a “smaller economies” group.
For further information on the work program of the groups see “United States - Background Papers,” SM/95/181 (7/26/95).
At the APEC meeting in Bogor, Indonesia on November 15, 1994, member countries issued a “Declaration of Common Resolve” to achieve “free and open trade and investment” by 2020, and for the more industrialized countries by 2010.
For further details see “Declaration for Action and The Action Agenda - The Implementation of the Bogor Declaration,” APEC Economic Leaders’ Meeting, Osaka, Japan, November 19, 1995.
Canada listed a number of measures undertaken over the last year, as “initial actions” including, enlarging preferential tariff treatment to 219 new lines and reducing preferential tariff rates on some 3,000 items, and extending to all WTO members preferential treatment under the Investment Canada Act previously reserved for investors under NAFTA.
Members will submit unilateral liberalization plans in 15 specific areas; tariffs, non-tariff measures, services, investment, standards and conformance, customs, intellectual property rights, competition policy, government procurement, deregulation, rules of origin, dispute mediation, mobility of business persons, Uruguay Round implementation, and information gathering. Following an initial comparison, these “Action Plans” will be tabled at the Philippine Summit, with implementation and review to begin in 1997, when Canada will chair APEC.