Prepared by Piritta Sorsa.
Developments after January 15, 1998 are not reflected in the paper.
The ATC requires WTO members to remove quotas on imports of textiles and clothing in four stages by 2005. The second stage was implemented on January 1, 1998. The liberalization does not include reductions in tariffs.
The liberalized products were work gloves and liners, certain shirts, specialty yarns, and handbags of made-up textiles.
Tariff rates on these products averaged 205 percent in 1995, and the average rate is expected to decline to 174 percent by 2000.
The producer subsidy equivalent in Canada was 27 percent for all agricultural products in 1995, but it was much higher for the supply-managed products, with subsidy equivalents amounting to 62 percent for milk and 44 percent for eggs (OECD 1996, Agricultural Policies, Markets and Trade in OECD Countries, Monitoring and Evaluation).
Canadian Wheat Board, the Canadian Dairy Commission, and the Canadian Freshwater Fish Marketing Corporation.
Future liberalization includes termination of Teleglobe Canada’s monopoly on overseas voice services in October 1998 and Telesat Canada’s monopoly on satellite services by March 2000.
Includes domestic telephone, long-distance voice, and overseas services.
Includes domestic long-distance business phone services, private voice-mail, and cellular phones.
For example, foreign ownership of basic carriers is limited to 47 percent of equity, and basic carriers are required to be controlled by Canadians.
The financial sector has been gradually liberalized in Canada since 1982. Restrictions on foreign banking were relaxed in the NAFTA, and many of these actions were subsequently extended to WTO members during the Uruguay Round and negotiations on financial services.
Apart from some provinces (Ontario, Quebec, and Manitoba), there are no specific restrictions on foreign ownership of banks as such. Branching of foreign banks was not previously allowed, and the opening of new branches by established banks has been subject to Ministerial approval.
An antidumping duty as high as 72 percent was imposed on garlic from China; an antidumping duty as high as 41 percent was imposed on imports of polyiso-insulation boards from the United States; and an antidumping duty as high as 43 percent was imposed on imports of concrete panels from the United States.
Under the Canada-U.S. FTA (incorporated into the NAFTA), most tariffs were eliminated on Canada-U.S. trade by January 1, 1998, and will be eliminated on Canada-Mexico trade by January 1, 2003.
For details see SM/97/3 Canada—Selected Issues.
A minimum of 10,300 tons of refined sugar and 59,250 tons of sugar-containing products.
Chapter 20 covers trade disputes over the interpretation or application of the free trade agreement.
The sectors covering an estimated US$500 billion in world trade are environmental goods/services, medical equipment/instruments, chemicals, energy goods/services, telecommunications equipment, forest products, fish and fish products, toys, gems, and jewelry.
The other changes include: (i) confirmation of earlier reductions in duties on imports of 1,500 items; (ii) elimination of “not made in Canada” conditions in tariff provisions covering about $1 billion in imports; (iii) elimination of concessionary tariff codes or their conversion to tariffs (reduced rates for specified uses) covering about 2,000 codes (most of these imports become duty-free in 1998 under NAFTA) and conversion of some of them to regular items under the same concessionary rates; (iv) replacement of the machinery remission program (duty remittals on machinery not available in Canada) with dutiable and duty-free tariff items and a three-year transition program for dutiable items (duties eliminated if not available in Canada during the transition period); (v) conversion of specific rates of duty to percentages (specific rates remain on alcoholic beverages, certain agricultural products, and wool fabrics); and (vi) elimination of tariff regulations or their conversion to tariffs (300 duty remissions eliminated, but 150 regulations retained).
China, Korea, Thailand, Brazil, Malaysia, Indonesia, India, Hong Kong, Philippines, and Chile, in declining order of the value of Canadian imports.