Canada

Draft MINUTES of the Meeting^* held on 15 and 17 June 2015

Delegations are invited to submit factual corrections, if any, on their own statement to the Secretariat (Mrs Barbara Blanquart: barbara.blanquart@wto.org, or to tprd@wto.org) no later than 13 July 2015.

Canada

Projet de compte rendu de la réunion^* tenue les 15 et 17 juin 2015

Les délégations sont invitées à soumettre leurs éventuelles corrections factuelles concernant leurs propres déclarations au Secrétariat (Mme Barbara Blanquart: barbara.blanquart@wto.org, ou tprd@wto.org) le 13 juillet au plus tard.

Canadá

Proyecto de acta de la reunión^* celebrada los días 15 y 17 de junio de 2015

Las delegaciones pueden enviar a la Secretaría (Sra. Barbara Blanquart: barbara.blanquart@wto.org, o tprd@wto.org) a más tardar el 13 de julio de 2015 las correcciones fácticas que deseen introducir en sus propias declaraciones.

_______________

Trade Policy Review

Canada

draft Minutes of the Meeting

Chairperson: H.E. Mr Atanas Atanassov Paparizov

CONTENTS

1  INTRODUCTORY REMARKS BY THE CHAIRPERSON.. 3

2  OPENING STATEMENT BY THE REPRESENTATIVE OF Canada. 5

3  STATEMENT BY THE DISCUSSANT. 9

4  STATEMENTS BY MEMBERS. 13

5  REPLIES BY THE REPRESENTATIVE OF canada AND ADDITIONAL COMMENTS. 49

6  CONCLUDING REMARKS BY THE CHAIRPERSON.. 54

Note: Advance written questions and additional questions by WTO Members, and the replies provided by Canada are reproduced in document WT/TPR/M/314/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.

1  INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1.  The tenth Trade Policy Review of Canada was held on 15 and 17 June 2015. The Chairperson H.E. Mr Atanas Atanassov Paparizov (Bulgaria) welcomed the delegation of Canada headed by Honourable Mr Cameron Mackay, Director General, Trade Negotiations, Department of Foreign Affairs, Trade and Development; the rest of the delegation, including H.E. Ambassador Jonathan T. Fried, Permanent Representative of Canada to the WTO; other colleagues from the Mission in Geneva; and the discussant, H.E. Ambassador Remigi Winzap (Switzerland).

1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of the procedures for the meeting. The report by Canada was contained in document WT/TPR/G/314 and that of the WTO Secretariat in WT/TPR/S/314.

1.3.  Canada adopted the alternative time-frame for its TPR. The following delegations submitted questions one week before the meeting and had been transmitted to the delegation of Canada: Singapore; Malaysia; Switzerland; Australia; Chinese Taipei; Brazil; Peru; Mexico; Hong Kong, China; United States; New Zealand; EU; China; Norway; Japan; Argentina; and El Salvador. The following delegations submitted written questions after the deadline and had also been transmitted to the delegation of Canada: Guatemala; Chile; Colombia; the Russian Federation; Ukraine; Dominican Republic; India; Republic of Korea; Trinidad and Tobago; Ecuador; Turkey; Indonesia; and Thailand.

1.4.  The Canadian economy had recovered well from the financial crisis with GDP growth averaging 2.4% annually but had been impacted by weaker export growth and investment during the period 2011-14. While long-relying on its natural resource wealth, the Canadian economy was diversified with manufacturing and services also contributing significantly. The energy and minerals sector had declined the most in the post-crisis period, but had gradually rebounded and had shown strong growth since 2013.

1.5.  In terms of trade, Canada's merchandise imports and exports had grown steadily during the review period, with import growth rates of 15% on average, twice as high as export growth rates, of 7% per year. During 2011-13, exports had been relatively flat due to weak global trade and in particular, weak energy prices, but had rebounded in 2014. Canadian merchandise export trade was heavily reliant on one sector, energy products, and one market, the United States. Despite efforts to diversify trade, Canadian imports and exports had concentrated further during the review period with its major market which had contributed to a larger percentage of both import and export trade. Although having a very service-oriented economy, Canada's services' trade remained relatively small, about one-fifth the size of its merchandise trade.

1.6.  Canada had a relatively open foreign investment policy. Both inward and outward FDI had exhibited growth during the period, but inward FDI flows had been modest and had fallen in 2014. Canada had taken steps to reverse this trend and facilitate FDI in a number of ways during the period by concluding a number of bilateral investment agreements, removing some telecom investment restrictions, and promoting its funding programmes to attract investors.

1.7.  Au cours de la période d'examen, le Canada avait poursuivi ses efforts de libéralisation unilatérale des échanges. L'élimination des droits de douane sur une vaste gamme d'intrants manufacturiers et de biens d'équipements a été sans aucun doute le point marquant de ces initiatives. Le Président était convaincu que les Membres ne manqueraient pas d'encourager le Canada dans la poursuite de ces efforts.

1.8.  L'agriculture demeurait un secteur clé pour l'économie canadienne, en raison notamment de sa contribution à la richesse nationale et à l'emploi. Le secteur était également d'une grande importance pour le reste du monde car le Canada était un des principaux acteurs du commerce international de produits agricoles. Dans ce contexte, le renouvellement du cadre stratégique agricole "Cultivons l'avenir" constituait, sans aucun doute, un développement majeur au cours de ces dernières années. Le secteur faisait cependant l'objet d'un certain nombre de mesures qui n'avaient pas manqué de susciter les interrogations de plusieurs Membres. Les questions avaient porté notamment sur: le niveau relativement élevé de protection tarifaire; le système de gestion de l'offre en vigueur pour les produits laitiers; et le traitement préférentiel au niveau infrafédéral dont auraient bénéficié certains produits comme les vins, bières, et liqueurs, lorsqu'ils étaient d'origine locale.

1.9.  Dans le domaine des mesures sanitaires et phytosanitaires, les Membres n'avaient pas manqué de noter le processus de réforme du système de réglementation des aliments, processus dans lequel le Canada s'était engagé depuis quelques années déjà. Certains Membres avaient exprimé des préoccupations par rapport aux nouvelles exigences en matière de licences d'importation. Cette réunion pourrait être une bonne occasion pour permettre au Canada non seulement d'apporter des clarifications sur cet aspect de la réforme, mais également d'élaborer davantage sur ses principaux axes ainsi que sur les perspectives.

1.10.  Canada was one of the world's leading producers of minerals and energy products. The sector contributed significantly to GDP, employment, FDI, services, and capital investments. Developments during the period had included oil and gas infrastructure projects, including plans to export LNG; improvements in the regulatory regime; and new laws or provisions on transparency measures, corporate responsibility, and aboriginal consultation.

1.11.  Judging from the number of advance questions received, other areas of great interest to Members included Canada's intellectual property regime in which new legislation and regulations had been of significant interest as well as clarifications on how certain provisions would be implemented and monitored or enforced. Another area related to contingency measures whereby a number of questions had been raised on the procedural aspects of investigations, the significant increase in investigations, and how specific provisions were implemented in practice.

1.12.  The Chairperson was sure that these topics and themes, and many more, would be touched upon in greater detail at their deliberations on the first and second day of the meeting.

1.13.  The Chairperson closed his introductory remarks by wishing Canada a very successful tenth Trade Policy Review. He looked forward to its active engagement in this TPR.

1.14.  He also noted that a podcast would be made of the meeting which could be accessed on the Members' website.

2  OPENING STATEMENT BY THE REPRESENTATIVE OF Canada (Honourable Mr Cameron Mackay)

2.1.  Je suis très heureux de représenter le Canada à notre dixième Examen des politiques commerciales de l'OMC. Je remercie chacun d'entre vous d'avoir bien voulu prendre part à cet important processus.

2.2.  Je tiens à remercier l'Ambassadeur Paparizov d'avoir accepté de présider la séance d'aujourd'hui. Et je suis particulièrement heureux de la participation de l'Ambassadeur Winzap qui nous fera l'honneur d'intervenir en tant que commentateur.

2.3.  Je remercie aussi d'emblée l'équipe du Secrétariat de l'OMC d'avoir préparé un rapport du Secrétariat détaillé et exhaustif.

2.4.  À titre de l'un des architectes initiaux du processus d'EPC, nous sommes profondément convaincus que grâce à celui-ci tous les Membres de l'OMC peuvent bénéficier d'un système commercial international transparent, prévisible et fondé sur des règles.

2.5.  As both the Secretariat and Government reports point out, since our 2011 review, Canada's economy has capitalized on strong economic fundamentals, and prudent fiscal policy to recover successfully from the global financial crisis.

2.6.  The Canadian Government's annual "Economic Action Plan" consistently focuses on balancing the budget, supporting jobs and growth, developing resources responsibly and supporting families and communities.

2.7.  To support the private sector's creation of jobs and prosperity, we have lowered taxes on businesses, encouraged regulatory efficiency through harmonization efforts, and cut administrative red tape – especially for small businesses.

2.8.  And the stability of Canada's financial sector continues to receive international recognition. For the seventh consecutive year, the World Economic Forum has declared Canada's banking system to be the soundest in the world.

2.9.  The results are clear.

2.10.  Forbes and Bloomberg have both rated Canada as the best place in the G20 to do business. Canada has also recently been ranked by the Economic Intelligence Unit as the best place for doing business among the G7 and G20 countries over the next five years.

2.11.  Canada maintains the lowest net debt-to-GDP ratio in the G7, and is expected to be among the top G7 performers through 2017 with respect to economic growth.

2.12.  Of course, growth only matters if it benefits people, including through job creation.

2.13.  On that front, Canada's economy was the first among G7 nations to recoup the employment losses recorded during the global recession.

2.14.  Nearly 1.3 million net new jobs have been created since July 2009; almost 86% of those have been full-time jobs.

2.15.  WTO Members know that trade and investment play a key role in Canada's economic success.

2.16.  Trade is equivalent to more than 60% of our GDP, over 40,000 Canadian companies export internationally, and one in five Canadian jobs are directly or indirectly related to trade.

2.17.  In that light, Canada knows well the importance of trade and investment as the twin engines for economic growth. And we know the dangers of protectionism.

2.18.  So we work closely with Canadian businesses to help shape trade and investment policies that help them prosper.

2.19.  Clearly, the private sector is leading tremendous change in the global economy. Government policies need to keep up. We cannot continue to rely solely on global trade rules negotiated more than two decades ago.

2.20.  Canada's business leaders have called on the Government to open new markets for goods and services exports, to facilitate trade, to lower supply chain barriers, to encourage international investment and innovation linkages, and to resist protectionism.

2.21.  The Canadian Government has responded by prioritizing trade and investment liberalization, most recently through the 2013 Global Markets Action Plan, Canada's blueprint for creating jobs and economic growth through trade and investment.

2.22.  With respect to trade promotion, the plan focuses Canada's efforts on key sectors and identifies priority established and emerging markets, with a goal of expanding the presence of small and medium sized enterprises.

2.23.  The plan ensures that Canadian embassies and missions abroad put an emphasis on economic diplomacy and trade promotion activities.

2.24.  And it ensures that Canada's Trade Commissioner Service has its human and financial resources allocated to where they can maximize assistance to Canada's international business.

2.25.  With respect to trade policy, the Global Markets Action Plan sets clear priorities and objectives for Canada's trade negotiations.

2.26.  In that light, Canada is moving forward on trade and investment liberalization on three fronts: first, multilaterally; second, bilaterally and regionally; and third, unilaterally through domestic economic reform.

2.27.  On the multilateral front: I mentioned earlier our support for the TPR process, the transparency pillar of the WTO. On the dispute settlement pillar – under which Canada is assertive in advancing and defending our rights and obligations – we agree with Director General Azevêdo's statement, at the June 1 event celebrating the 20th anniversary of the WTO, that the dispute settlement system plays a critical role in countering protectionism.

2.28.  And, of course, Canada remains dedicated to the negotiations pillar, under which the GATT and the WTO have had such historical success. Successive rounds of multilateral trade negotiations, coupled with the accession of major economies, have cut trade barriers, stimulated international trade, increased investment flows, built a stronger foundation for global economic growth and prosperity, and lifted millions out of poverty.

2.29.  It is in that light that Canada has been a strong supporter of the modernization of the global trade rules – which are now decades old - through the Doha Development Agenda. Despite the long delays in completing the Doha Round, we were delighted to support a successful outcome at Bali, especially with respect to the Trade Facilitation Agreement, which we are working hard to fully implement expeditiously.

2.30.  The TFA has tremendous potential to support jobs and growth in the developing countries that implement it. So as part of our on-going commitments on Aid for Trade, Canada has already committed close to US$60 million in funding for trade facilitation, including a US$2 million contribution to the World Bank Group's Trade Facilitation Support Program. Canada is also considering further contributions to help developing countries take advantage of trade facilitation.

2.31.  WTO Members can count on Canada to support a pragmatic and successful outcome at the tenth Ministerial Conference in Nairobi this December. We agree with the many other Members who have warned that a failure to succeed in Nairobi will have dire consequences for the WTO's reputation as a forum to negotiate modern global trade rules.

2.32.  In the lead up to Nairobi, Canada is working constructively with other Members, including as part of the Cairns Group, to move forward with multilateral trade liberalization. Canada has and will continue to provide more clarity to the discussions in various groups, such as our recent presentation to the NAMA group on the effects of various tariff-reducing mechanisms on a representative sample of Canada's tariff.

2.33.  Canada is also strongly committed to the development dimension of the DDA and the work we will undertake in the lead-up to Nairobi, and will pursue an outcome that is supportive of and sensitive to the needs of developing countries.

2.34.  Of course, Canada is also a supporter of the WTO's various plurilateral negotiations - to cut tariffs on information technology products and environmental goods, and to expand the membership of the Agreement on Government Procurement. We are also pursuing further services liberalization through the Trade in Services Agreement negotiations with 24 WTO Members.

2.35.  I'm certain everyone in the room today agrees that we need to improve the credibility of the multilateral system. But we cannot focus on multilateral trade talks alone.

2.36.  To re-energize global growth in trade, we must also pursue bilateral and regional agreements that open new markets in ways that complement and enhance the multilateral system.

2.37.  To that end, Canada is pursuing ambitious Free Trade Agreements, Foreign Investment Promotion and Protection Agreements and Air Transport Agreements with partners around the world.

2.38.  In short, we are pursuing the most ambitious trade agenda in Canada's history.

2.39.  Since 2006, the Government of Canada has concluded trade agreements with 38 countries, bringing the total to 43 FTA partners.

2.40.  Since 2011, Canada has brought into force new FTAs with Colombia, Jordan, Panama, Honduras and the Republic of Korea, and we have concluded a historic Comprehensive Economic and Trade Agreement with the European Union. Once all these agreements are implemented, more than 80% of Canada's two-way trade in goods will be covered by FTAs, and Canadian businesses will have preferential access to over 50% of the world's economy.

2.41.  Our ongoing negotiations with other key partners, including our work to conclude the Trans‑Pacific Partnership negotiations, will further broaden and deepen our trading relationships in fast-growing Asia-Pacific markets and around the world.

2.42.  Beyond FTAs, Canada has also concluded or brought into force 43 Foreign Investment Promotion and Protection Agreements, and concluded new and expanded Air Transport Agreements covering over 80 partners from around the globe.

2.43.  So we are making good progress on trade and investment negotiations.

2.44.  But we are not waiting for trade agreements to require us to liberalize our economy. We are also undertaking unilateral trade reforms to make the Canadian economy more competitive and help our businesses to create jobs and wealth.

2.45.  The Secretariat's report points out that Canada is moving decisively to lower barriers to trade and cut red tape. We have eliminated over 1,800 tariffs on imported machinery, equipment and manufacturing inputs, making Canada the first tariff-free zone for industrial manufacturers in the G20. In 2013, an OECD report recognized Canada's unilateral tariff elimination efforts as a best practice to be emulated by others.

2.46.  We are also working to eliminate internal barriers to trade, and to promote domestic competition in areas such as telecommunications and financial services, to keep our economy globally competitive.

2.47.  We are doing all of this unilaterally, through domestic reforms, knowing that these measures will strengthen our economy.

2.48.  In conclusion, it is clear that in a world where technology and innovation continue to shrink distances and shape our economies, free trade, open markets and good governance have never been more critical to each nation's prosperity.

2.49.  I am pleased to say that today the Canadian economy is strong and resilient, in no small part because we are working hard to further open trade and investment opportunities.

2.50.  In doing so, Canada takes its WTO obligations very seriously. And we believe that our overall compliance with those obligations is among the highest of WTO Members.

2.51.  I recognize that many of you have questions about our policies. Indeed, we so far have received over 600 written questions, including 67 new ones late last week. We have responded in writing to all the advance questions we received from Members by the 18 May deadline, and we aim to respond in writing tomorrow to the great majority of questions we received after that deadline.

2.52.  After we turn the floor over to Members today, I know you will have even more questions, some of them critical of Canadian policies and measures. Canada welcomes this engagement. We will take your recommendations and suggestions into account, and, though explaining why our policies and measures are the right choice for Canada, we will strive to improve where possible.

2.53.  Merci beaucoup, thank you very much, gracias.

3  STATEMENT BY THE DISCUSSANT

3.1.  Monsieur le Directeur général, laissez-moi vous souhaiter, ainsi qu'à votre délégation, une cordiale bienvenue à Genève et en Suisse. J'aimerais joindre le Président dans ses remerciements au Canada et au Secrétariat pour les excellents rapports qui forment une base solide pour cette revue de la politique commerciale du Canada.

3.2.  C'est avec plaisir que j'ai accepté la fonction de présentateur pour cette revue. Le Canada est un pays exceptionnel par sa beauté, sa diversité et sa société multiculturelle. C'est un pays qui a su faire face à de grands défis liés, entre autres, à sa large superficie (deuxième pays le plus vaste du monde), à ses conditions climatiques souvent sévères, à son marché intérieur plutôt réduit et à l'existence d'un seul voisin limitrophe. Le Canada est un pays avec une politique d'immigration accomplie, un niveau de vie parmi les plus élevés et une distribution des richesses parmi les plus équilibrées du monde. Comme la Suisse, le Canada fonctionne selon un système fédéral ce qui a également une influence sur sa politique économique. Le Canada est un pays qui peut se targuer de sa haute compétitivité – et je ne pense pas uniquement au hockey sur glace, où le Canada est champion du monde en titre – non, je fais référence à son économie diversifiée et résiliente. Le Canada est un exportateur net dans les secteurs agricole et manufacturier.

3.3.  Après cette courte introduction en français, langue officielle du Canada et de l'OMC, je vais passer à l'autre langue officielle du Canada, l'anglais.

3.4.  Canada is the world's fifth largest agri-food exporter and sixth largest importer. It is the world's 13th largest merchandise exporter and 11th largest merchandise importer. Interestingly, even if the services sector is the largest contributor to Canada's economy, accounting for 70% of GDP during the period 2011-14, Canada's services trade is relatively small, about one fifth the size of its merchandise trade. Canada remains a net services importer and the services trade deficit even slightly increased during the review period.

3.5.  During the review period, Canadian exports grew at an impressive average of 7% per year. Canada's trade performance was marked by steady increases in imports and exports, both goods and services, with a particular strong increase in merchandise exports in 2014. This fact has, however, to be seen against the background that mining and energy collectively account for approximately one-half of total Canadian merchandise exports, with crude oil representing approximately 18% of the total.

3.6.  Canada, as the Secretariat report highlights, has certain vulnerabilities with respect to trade, as it is heavily reliant on the United States as its major market and has a relatively narrow export product base, mainly energy and mineral products, vehicles and transport equipment. Despite attempts to diversify exports geographically, the share of exports to the United States actually increased during the period under review from 74% to 77% and the share of imports from that partner also increased from 50% to 54%.

3.7.  Positive policy choices made by Canada and mentioned in earlier TPR's have been confirmed. As in the past, Canada maintains a transparent trade policy regime and is generally not resorting to protectionist measures. However, and unlike in the previous review-period, Canada continued to make quite frequent use of anti-dumping and countervailing duty measures during this review period, as there were 43 initiations of anti-dumping investigations, with a peak of 17 in 2013, and 21 initiations of countervailing duty investigations, with a peak of 12 in 2014.

3.8.  In respect of its trade policy choices, Canada states clearly in its Government report, that the World Trade Organization is a cornerstone of Canada's trade policy agenda, and a key forum for engaging with its trading partners. Canada reaffirms its commitment to the Doha Development Agenda and its willingness to contribute to a timely implementation of the Trade Facilitation Agreement – which is very welcome and should serve on this issue, in my view, as an example to all delegations represented in this room.

3.9.  Canada enhanced its economic and trade policies in the period under review in particular through further implementation of its Economic Action Plans, which it started in 2009. Based on the Economic Action Plan 2012, Canada launched its Global Markets Action Plan (GMAP) to support Canadian companies and investors abroad in 2013. The GMAP aims, inter alia, to match the success in market openings through Free Trade Agreements by supporting Canadian companies to take advantage of these agreements. The 2014 Economic Action Plan focused on balancing the budget, supporting jobs and growth, developing resources responsibly and supporting families and communities.

3.10.  On autonomous liberalization measures undertaken by Canada, I note the streamlining of its customs tariff. Canada's 2014 tariff schedule is based on HS 2012 and has at the eight-digit tariff level almost 1000 lines less than the schedule at the time of the previous review, which was based on HS 2007. Thousands of HS codes were simplified and MFN-tariffs of 5% or less were eliminated. The process of tariff simplification adds to previous unilateral liberalization efforts. Over the last years, Canada reduced MFN duty rates to zero on more than 1800 tariff lines relating to manufacturing inputs, machinery and equipment. Canada also eliminated permanently the MFN applied rates of customs duty on Mobile Offshore Drilling Units, as well as - of direct interest to consumers - on baby clothes, and certain sports and athletic equipment. Over two-thirds of Canadian tariff lines have zero-duties.

3.11.  By lowering effective protection on a broad range of manufacturing inputs, machinery and equipment, Canada's policy is aiming at reducing production costs, improve efficiency and enhance innovation in downstream manufacturing industries. Canada takes in this respect a different pathway than other WTO Members – some of which are rather seeking to maintain or even increase duties, which does not necessarily facilitate the integration of their domestic companies in global value chains. Personally, I commend Canada for its bold policy in respect of its duties on industrial products. But Members in this room may hope that Canada will be doing the same on agricultural tariffs.

3.12.  Besides autonomous policy measures, Canada also continued to open its markets through negotiations of Free Trade Agreements (FTAs). Since 2011, five new FTAs have entered into force (Korea, Colombia, Honduras, Jordan and Panama). Furthermore, a FTA with the EU was completed in mid-2014, but has yet to enter into force. Canada is also part of the Trans Pacific Partnership negotiations, as well as of negotiations on sectoral agreements in and outside the WTO, in particular ITA expansion, the Environmental Goods Agreement and TiSA, the Trade in Services Agreement.

3.13.  In April 2014, the revised GPA came into force for Canada with substantial changes in Canada's schedule at the sub-federal level. Now, all provinces and territories and ten federal crown corporations are included.

3.14.  During the review period, considerations on intellectual property (IP) have played an important role both in Canada's domestic legislative activity as well as in its international trade policy. Since 2011, Canada has ratified two, and initiated accession to five other important international IP treaties, and has adopted or introduced a number of significant legislative changes to its IP regime.

3.15.  Canada is also an important actor in trade related development cooperation. Canada is a strong supporter of Aid for Trade and the Doha Development Agenda Global Trust Fund as well as the Standards and Trade Development Facility. Canada also supported the Advisory Centre on WTO Law (ACWL). Canada contributed US$2.5 million over the last years to help the ACWL continue its work. Furthermore, Canada has disbursed US$2 million to the World Bank Group's Trade Facilitation Support Program in 2014.

3.16.  Now, let me turn to some features which particularly retained my attention when preparing for this Trade policy Review and to some questions which I have in respect of Canada's trade policy.

3.17.  I would like to start where the discussant of the ninth review, Ambassador John Adank from New Zealand, left in 2011. He highlighted two more general and a number of specific concerns in regard of Canada's trade policy.

3.18.  The more general concerns pointed out by Ambassador Adank in 2011 were – and I quote: "longstanding ones from earlier trade policy reviews", namely the issue of rationalizing Canada's internal market and the challenges posed by Canada's dualistic agricultural policy.

3.19.  In terms of specific concerns, he mentioned, in particular, national treatment in relation to excise taxes, ongoing requirements for WTO Members in the investment and services areas, and questions around the trade-restrictiveness of certain technical regulations and other mandatory measures.

3.20.  Ambassador Adank closed his statement in 2011 with the following remark: "Accordingly, looking ahead to Canada's tenth trade policy measures, these are areas where Members will be interested in hearing of further developments." Indeed, looking at the questions raised by Members, these areas remain of key interest to Members still today.

3.21.  My impression from reading the background material and the questions of Members is that the more general concerns highlighted in 2011 on progress to rationalize Canada's internal market and issues posed by Canada's dualistic agricultural policy remain as relevant as in earlier reviews. They seem both to have their roots in challenges linked to a federal structure where responsibility is shared between federal and provincial/territorial governments. During the review period, the Agreement on Internal Trade, which governs domestic trade, was amended twice. The changes included revisions to procurement, labour mobility, and dispute resolution sections. These are important areas, however, there are more areas on which - from an outside perspective - one would hope that action by Canada would be taken. There are, for instance, the excise taxes and duties on alcoholic beverages and tobacco products which seem inconsistent with WTO national treatment obligations – an issue which had been mentioned in 2011, already. As discussant, I would like to raise the question how Canada intends to ensure that national treatment obligations of the WTO will be fully respected at the sub-Federal level?

3.22.  In agriculture, Canada is on the one hand an important exporter in particular of wheat and barley as well as of red meat, while on the other hand it has a big dairy industry with a high level of support. As the overall framework and regulation of the dairy sector has not changed significantly since the last review, many questions by Members to Canada in this TPR are directed at this area and Members in the room are keen to hear Canada's answers to their queries.

3.23.  A very important and challenging area for Canada is the mining and energy sector contributing significantly to employment and tax revenue. During the review period, there were significant impacts on trade and the economy mainly due to fluctuations in energy prices. A similar situation may possibly prevail in times ahead, with the consequence among others that low oil prices may lead to poor economics for many existing and potential oil sand projects. How does the Canadian Government see the ability of the industry to cope with this challenging situation?

3.24.  Natural gas is another important sector for Canada, as it is the world's fourth largest exporter. Today, all exported natural gas goes to the United States. It may be important for Canada to diversify export markets by converting gas into liquefied natural gas (LNG). I take from the Secretariat report that industry proponents are pursuing a variety of LNG export proposals that are moving through the established regulatory review process. It could be of interest to Members to hear more on how this regulatory review process works.

3.25.  In respect of trade in services, the Government of Canada is very active in the WTO and through a number of trade policy tools such as free trade agreements, including the negotiation of a Trade in Services Agreement (TiSA). Furthermore, in Canada's Global Markets Action Plan, services sectors are an important component. Nonetheless, the Canadian services trade as of today is relatively small. Are there further measures through which the Canadian Government intends to strengthen the capacities of the Canadian services sector, particularly its international competitiveness?

3.26.  Through the Global Markets Action Plan, Canada has also placed emphasis on pursuing more foreign investment promotion and protection agreements where there is potential for economic growth and interest to Canadian investors. Despite efforts to improve the framework to encourage more direct investment, FDI inflows remained modest and were outpaced by FDI outflows. Possibly, investment promotion, even if important, may not be sufficient. In the reports I have read that Canada's FDI legislation has remained broadly unchanged during the review period, except for provisions related to state-owned enterprises and some amendments in the area of telecommunications. Furthermore, in 2013, the first rejection of a foreign investment on national security grounds was taken by the Governor in Council. My question therefore is, whether there are additional measures to investment promotion which the Canadian Government is envisaging to make Canada more attractive to foreign direct investment?

3.27.  These are my opening remarks as discussant at this tenth Trade Policy Review of Canada. In summary, the period under review has shown an entrepreneurial Canada undertaking reforms, improving access to foreign markets and supporting its economy with the implementation of trade strategies to produce high quality at lower costs for export markets.

3.28.  The future will tell us if these measures are sufficient to overcome vulnerabilities of Canada with respect to trade, as Canada is heavily reliant on one trading partner and on a relatively narrow export product base.

3.29.  Canada seems to have still potential to improve the functioning of its internal market in respect of national treatment obligations, its attractiveness to foreign investment, the strengthening of its services sector and a broadening of its export product base as well as a diversification of its export markets.

4  STATEMENTS BY MEMBERS

SINGAPORE

4.1.  Singapore and Canada enjoy strong bilateral relations and have longstanding economic ties. The bilateral trade in goods was S$2.73 billion in 2014 and bilateral trade in services amounted to S$2.3 billion in 2013, an overall increase of 24.3% from 2012. Our investment relations are robust. As of 2013, the total stock of investment in Singapore from Canada was S$5.17 billion, with over 640 Canadian companies registered in Singapore. This business presence is reciprocated by existence of numerous Singapore companies in Canada.

4.2.  As like-minded countries that believe in the importance of free trade, Canada and Singapore have a long history of close cooperation at various international platforms such as the WTO and APEC. We commend Canada's constructive role and contributions at these platforms which help build a strong multilateral trading system. At the regional level, Singapore, Canada and others are also engaging intensively to conclude negotiations on a high standard and comprehensive Trans Pacific Partnership agreement, which will deepen economic integration in the Asia-Pacific and encourage greater trade liberalisation.

4.3.  We congratulate Canada on its overall positive economic performance since emerging from the global economic crisis. We note from the Secretariat report that Canada's economy has sustained positive growth of 1.9% to 3% in recent years. This is indicative of Canada's sound macroeconomic policies and the success of its Economic Action Plans.

4.4.  We note with interest that according to the Secretariat's report, Canada's import tariff regime remained nearly unchanged since the last review with average applied tariff for agricultural products staying at 22.5%. While there has been partial liberalization of foreign investment restrictions for telecoms companies with a market share of 10% or less, the report also noted certain investment restrictions remain in place. We encourage Canada to undertake more unilateral liberalization in the high tariffs relating to certain agricultural products, and address the remaining investment restrictions. 

4.5.  We welcome Canada's commitment in adopting an ambitious trade and investment strategy that includes expanding markets for its businesses and the promotion of foreign investment. This will help counter the vulnerabilities on the heavy reliance on a single major market and a narrow export products base, which were mentioned in the Secretariat report. Given Canada's strong interest in trade, we are confident that it would ratify the WTO Trade Facilitation Agreement soon. We hope to witness the continued evolution of Canada's trade policies which will further cement its status as an advocate of global free trade.

4.6.  Before I conclude, I would like thank Ambassador Jonathan Fried and his able team in Geneva for their excellent cooperation and look forward to continuing the close working relationship. We also thank Canada for their timely responses to our questions and wish them every success in their tenth Trade Policy Review.

MALAYSIA

4.7.  Malaysia and Canada have a longstanding bilateral economic relation besides people to people contact with many Malaysian students choosing Canada as a choice of education destination. In term of investment, as of 2013, almost 80 projects with Canadian participation had been implemented with total investments of almost US$227 million in Malaysia. These projects had created some 10,700 job opportunities that contribute towards Malaysia's economic growth. It is also worth noting that some of Canada's major companies such as Bombardier, Talisman Energy and Bank of Nova Scotia have their presence in Malaysia. Similarly, Malaysian investments in Canada are being headed by leading Malaysian companies such as PETRONAS and Felda Global Ventures Holdings Berhad. Investment made by PETRONAS in Canada is one of Malaysia's largest global investment. 

4.8.  In 2014, total trade between the two countries was US$1.7 billion; with Malaysia's exports to Canada accounting for US$808 million, while imports amounted to almost US$920 million.

4.9.  Malaysia is also working alongside Canada to improve our regional economic cooperation through initiatives such as the TPP and as a Dialogue Partner of ASEAN. The Third ASEAN Economic Ministers (AEM)-Canada Consultation held in Nay Pyi Taw, Myanmar last year reaffirmed our commitment to implement the ASEAN-Canada Joint Declaration on Trade and Investment adopted in 2011. As Chair of ASEAN this year, Malaysia will continue the momentum to ensure its successful implementation. The ASEAN Economic Minister (AEM) Roadshow to Canada was also held for the first time last year, providing opportunities to promote and strengthen trade and investment relations between ASEAN and Canada.

4.10.  At the multilateral front, Malaysia appreciates Canada's firm commitment to a rules-based and transparent trading system. Canada is an active Member, both in the context of the regular work of the WTO and in the Doha negotiations. Canada's solid records of notification, submissions in different Doha negotiating groups and outstanding contribution to Aid for Trade Program are laudable. Malaysia looks forward to Canada's strong leadership in our preparation of July's work programme, for a credible package to be shaped for the WTO Ministerial Conference in December later this year. On this, we encourage Canada to ratify the Trade Facilitation Agreement at the earliest. 

4.11.  As a fellow member of the Cairns Group, Malaysia notes Canada's efforts in removing distortions to trade in agriculture. Malaysia commends Canada for the improvements in the overall orientation of its agriculture sector with a view to provide greater openness to trade in agriculture. Notwithstanding this improvement, we have some concerns in particular on Canada's regulatory controls over its dairy sector and dairy imports and would appreciate clarification on how Canada intends to reform its dairy domestic supports.

4.12.  Finally, we would like to take this opportunity to thank the delegation of the Canada for responding to our questions and these are being examined at the Capital. We will also be submitting additional questions and we look forward to receiving feedback.

SWITZERLAND

4.13.  From the Secretariat's comprehensive report, we note – as some macro developments – that the Canadian economy has grown steadily over the last few years and that the unemployment rate has declined significantly since its peak five years ago. At the same time, the Canadian Government has made deficit reduction a cornerstone of its economic policy and has succeeded in presenting a balanced budget for the current fiscal year, in spite of falling prices for the country's energy exports. We would like to commend Canada on these major achievements. Meanwhile, geographical diversification of trading partners has remained to be a challenge, with the U.S. accounting for more than three quarters of exports.

4.14.  Canada is Switzerland's second most important trading partner in the Americas. Last year, our trade amounted to more than US$5 billion. Strong economic ties are also reflected in Switzerland being the fifth largest foreign direct investor in Canada. Swiss affiliates provide jobs to more than 60,000 Canadians. With a double taxation agreement and a free trade agreement in force, in addition to the WTO legal framework, companies doing business between our two countries can rely on a solid framework.

4.15.  Some of the most noted developments since Canada's last TPR have been the entry into force of five further preferential trade agreements and, in particular, the conclusion of a Comprehensive Economic and Trade Agreement (CETA) with the European Union. These efforts should contribute to diversifying Canada's foreign trade going forward.

4.16.  Allow me to highlight a few specific issues.

4.17.  Under the Investment Canada Act of 1985, foreign investments above a certain threshold must be notified to the authorities. Under the CETA, the review threshold has been raised to Can$1.5 billion for EU companies. As one of the largest foreign investors in Canada, Switzerland would like to recall the importance of providing a level playing field among all investors.

4.18.  In the context of the CETA, Canada has proposed changes to its WTO tariff-rate quota for cheese. We are concerned that such quota reallocation would result in a reduction of market access for other WTO Members, including imports from Switzerland.

4.19.  I would now like to turn to intellectual property that is an area of high importance to us. With regard to the protection of confidential business information, Switzerland welcomes the guidelines recently published by the Canadian Health Ministry, which provide relevant authorities with guidance regarding the implementation of Bill C-17 amending Canada's Food and Drugs Act. We also would like to thank Canada for its constructive engagement regarding concerns we raised about the treatment of confidential business information. We hope that the principles outlined in the guidelines will ensure the protection of proprietary confidential business information against unfair commercial use.

4.20.  I would like to mention that Switzerland shares the concerns expressed by others about the interpretation by Canadian courts of conditions for patentability. The so called "promise doctrine" applied to inventions in the field of therapeutical or pharmacological applications seems to create a higher standard for patentability than provided for in Article 27 TRIPS. Moreover, that doctrine seems to be applied inconsistently, thereby creating uncertainty for companies.

4.21.  To conclude, Switzerland would like to commend Canada's high commitment to the WTO and very valuable engagement for the multilateral trading system, particularly at this critical stage for the future of WTO and in view of a post-Bali work programme and a successful MC10 in Nairobi.

AUSTRALIA

4.22.  Australia and Canada have a strong trade relationship with bilateral trade in goods and services valued at $A 5.3 billion in 2014. 

4.23.  We enjoy a significant and growing investment relationship, primarily in the resources and manufacturing sectors. Canada was our tenth largest source of investment in 2014, with Canadian investment in Australia valued at over $A 35.2 billion. During the same period, Australia's investment in Canada reached $A 45.4 billion. 

4.24.  We are pleased to work with Canada across a range of international bodies, including the WTO and G20 to advance our trade agendas. Australia and Canada are strong supporters of the multilateral trading system. Australia particularly appreciates Canada's participation in the Cairns Group. Canada's contribution to Cairns Group work substantially enhances the Group's capacity to engage in discussions on agriculture in the WTO.

4.25.  We look forward to working closely with Canada implement the Bali Package and WTO post‑Bali work plan. We congratulate Canada on being the first WTO Member to notify implementation of the LDC Services Waiver. Implementation of the Waiver is an important indication of Members' commitment to promoting LDC participation in trade in services. 

4.26.  We value our close working relationship in the negotiations on the Environmental Goods Agreement, Trade in Services Agreement and expansion of the Information Technology Agreement. We look forward to continued engagement and leadership by Canada in the lead-up to MC10, particularly in our efforts to move towards conclusion of the Doha negotiations. 

4.27.  Australia congratulates Canada on its solid growth in GDP, employment and trade since Canada's last review and acknowledge Canada's recent federal budget surplus– against the backdrop of slow global growth and plummeting oil prices.

4.28.  Australia does have some specific reservations about some of Canada's trade and economic settings. Australia has over a long period registered its concerns about the measures Canada continues to impose to restrict access to specific agricultural sectors and in particular those products it regulates via supply-management policies. Australia retains its long-held position that reforms to these sectors should be prioritized. Such reforms would safeguard the long term competitiveness of these industries and demonstrate Canada's willingness to contribute meaningfully to global trade liberalization efforts.

4.29.  Canada's Non Resident Ownership Policy (NROP) which restricts foreign ownership or interest in Canadian uranium mines to 49% at the production stage (while there is no restriction on ownership of projects in the exploration stage) remains of significant concern to Australia. The NROP has implications for Australian companies with uranium interests in Canada and we encourage the removal of this discriminatory policy.

4.30.  We note Canada has continued its efforts to grow and diversify its economy by expanding its range of WTO-consistent bilateral trade and investment agreements. In 2014 alone Canada concluded FTA negotiations with the European Union, Republic of Korea, Burkina Faso and Ecuador and signed six signed bilateral investment treaties (Cameroon, Nigeria, Senegal, Mali, Serbia and Cote d'Ivoire). The outcomes of these negotiations are of considerable interest to many countries, including Australia.

4.31.  We value the close working relationship we have with Canada in the Trans-Pacific Partnership negotiations. An ambitious, comprehensive TPP Agreement that builds on our respective WTO commitments will be a substantial step towards realising the vision of an inclusive Free Trade Area of the Asia-Pacific. 

4.32.  Australia asked Canada many questions on a range of sectors and we would like to thank Canada for its responses to these questions.

SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

4.33.  Considering the importance of Canada's role in world trade and the global economy, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is very pleased to see that Canada's economy has been growing steadily over the review period, and is projected to expand at a healthy rate over the next few years. It is especially encouraging to note that Canada remains committed to pursuing an ambitious trade and investment strategy promoting further liberalization on both a global and a regional basis, and aimed at strengthening the multilateral trading system.

4.34.  Canada has always been an active Member of the WTO, both in terms of the day-to-day work of the organization and in the on-going Doha Round of negotiations. The decisions from the 2013 Bali Ministerial Conference provide a solid basis for making progress in the interests of all Members. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu particularly welcomes Canada's strong support of the Trade Facilitation Agreement and its commitment to its timely implementation. Furthermore, we recognize that Canada is the first Member to make notification concerning preferential treatment to services and services suppliers of LDC countries. We certainly look forward to working with Canada in the run-up to a successful tenth WTO Ministerial Meeting.

4.35.  Our trading and economic relationship with Canada has for long been a growing and very fruitful one. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is currently Canada's 12th largest trading partner globally and its 5th largest trading partner in Asia, with the value of two-way trade totalling US$4 billion in 2014. The amount of two-way investments between the two economies is substantial and could be further increased.

4.36.  We believe that there is plenty of potential to generate more trade and investment opportunities between us by capitalizing on our respective competitive advantages. We expect our economic cooperation to strengthen even further in a bilateral, regional and multilateral context in the future.

4.37.  On the subject of Canada's trade policies and practices, we have already submitted a number of questions to Canada on various issues in advance. I thank Canada for its prompt replies. I would just like to mention one particular concern of ours today, which is that, during the review period, Canada has persisted in using anti-dumping and countervailing duty remedies at an ever-increasing rate, the majority of which are investigations and measures relating to imports from Asia. As the Secretariat report points out, over the period Canada initiated 43 anti-dumping investigations; 40 led to the imposition of preliminary duties and 24 to the imposition of final duties. At the end of 2014, Canada had a total of 53 anti-dumping measures in force. We hope Canada will guard against the abusive recourse to trade remedies, work on more credible rules, and consider adopting a consultative process for resolving the relevant issues to ensure free and fair trade, for the benefit of all business operators, the welfare of consumers and the healthy development of global supply chains.

BRAZIL

4.38.  The robustness of Canada's economy was clearly proved in the period under review, which followed the recent economic and financial crisis. Even though indicators such as the average GDP growth of 2.4% and an unemployment rate at 6.9% are not as bright as those displayed before the crisis, they are still remarkable and illustrate how resilient Canada has been in face of a challenging external environment. 

4.39.  Trade remains vital for the health of Canada's economy and represented 64% of its GDP in 2014. Besides being very active in bilateral negotiations, as evidenced by the number of FTAs it has concluded, Canada shares with Brazil a strong commitment to a rules-based multilateral trading system.

4.40.  This spirit is reflected in the country's significantly open trade regime for industrial goods. More could be done, however, to extend the same degree of openness to all sectors. In the last decade, the average applied MFN tariff for non-agricultural products has been consistently reduced, reaching 2.4% in 2014. Conversely, the average tariffs for agricultural goods have increased in the same time span, standing at the very high point of 22.5%, almost ten times higher than those charged for non-agricultural products.

4.41.  Canada could also look at the number of its non-ad valorem tariffs and tariff peaks, both having proportionately increased in the last ten years. It is a matter of transparency in the first case and, again, a matter of balancing its trade in the second, since most of the peaks apply to agricultural products.

4.42.  Turning to the bilateral trade, the two-way flow between our countries had significantly increased in 2011, recovering from the slump caused by the crisis. From that peak to 2014, however, it shrank 24%, going back roughly to the level of 2010. I am confident we can regain that dynamism by diversifying our exports. Brazil, for example, exports almost exclusively minerals, oil and traditional agricultural products. Similarly, our imports consist basically of fertilizers, minerals, machinery and paper.

4.43.  Bilateral Foreign Direct Investment is significant. In 2014, Brazil received almost US$1 billion from Canada, contributing to the US$9 billion in the FDI stock from Canada. In the opposite direction, the stock of Brazilian FDI in Canada reached more than US$17 billion in 2014. That made Brazil the 7th largest investor in Canada.

4.44.  Brazil and Canada have a rich agenda of cooperation that extends well beyond trade, including a bilateral Strategic Partnership Dialogue, a Joint Economic and Trade Committee, the Brazil-Canada Consultative Committee on Agriculture, and the Joint Committee for Cooperation in Science, Technology and Innovation. Canada is also the third main destination for students participating in Brazil's Science without Borders, an academic exchange programme. Since 2011, more than six thousand Brazilians have gone abroad to study in Canadian universities.

4.45.  To conclude, I would like to emphasize that many factors unite Brazil and Canada, such as the size of our territories, the abundance of our natural resources and the diversity of our populations. This exercise gives a good opportunity to assess our relations and make sure that we can strive for even more fruitful trade and economic relations in the future.

MÉXICO

4.46.  Canadá es un importante socio comercial de México. Es el tercer mercado de exportación de México en el mundo^[1] y su sexto proveedor internacional.^[2] A su vez, en el 2013, México se constituyó como el segundo proveedor comercial de Canadá en el continente americano.

4.47.  Gracias al Tratado de Libre Comercio de América del Norte, los dos países forman parte de cadenas globales de valor en múltiples sectores. De hecho, Canadá es el cuarto inversionista extranjero más importante de México. Estos datos ilustran la estrecha relación comercial y excelentes lazos de cooperación de larga data que mi país mantiene con Canadá, los cuales tienen gran potencial de expandirse a partir de las diferentes negociaciones comerciales en las que ambos países participamos, como el TPP y el TISA.

4.48.  Es alentador ver que, como lo constata el informe de la Secretaría, la economía canadiense está experimentando una rápida recuperación económica después de la crisis financiera con una tasa media anual de crecimiento de 2,4%. Aunque la tasa de desempleo, situada en aproximadamente el 7%, sigue por arriba de la registrada antes de 2008.

4.49.  Sin duda la economía de Canadá es un caso de éxito. Es de señalar, sin embargo, que Canadá enfrenta algunos desafíos para asegurarse un crecimiento sostenido. En su reporte de enero de 2015, el FMI señala que su crecimiento económico podría verse afectado por la caída sostenida de los precios de petróleo, que ha afectado a la inversión en su sector energético, y por ciertos riesgos presentes en su mercado inmobiliario, en el que se percibe cierta sobrevaluación. El FMI también sugiere acciones para incrementar la productividad de la fuerza laboral con políticas que aumenten las habilidades laborales acorde a las necesidades del mercado y alentando la inversión en investigación y desarrollo de las empresas.  

4.50.  El informe de la Secretaría de la OMC enfatiza la poca diversificación de los mercados de exportación de Canadá. Es de reconocer, sin embargo, los importantes esfuerzos que Canadá realiza para abrirse a nuevos mercados, incluyendo a través de la negociación de acuerdos de libre comercio, tanto a nivel bilateral como regional.

4.51.  Es igualmente de aplaudir el que Canadá haya profundizado aún más sus esfuerzos autónomos de liberalización y simplificación arancelaria, que han situado al arancel aplicado a los productos no agrícolas en 2,4%. Sin embargo, sigue destacando el hecho de que el sector agrícola es el más protegido en su economía.

4.52.  En efecto, el arancel promedio NMF aplicado a los productos agrícolas (según la clasificación de la OMC) es de 22,5%, lo que lo convierte en uno de los países más proteccionistas del mundo en este sector, ubicándolo en el lugar 55 entre los 148 miembros incluidos en la base de datos del World Tariff Profiles 2014.

4.53.  Por otro lado, es de elogiar las acciones tomadas por el Gobierno canadiense en materia de procedimientos aduaneros, particularmente en materia de incautación de mercancías y la aplicación del programa  Release Prior to Payment (Levantes antes del Pago), así como los programas que permiten a los importadores habilitados beneficiarse de procedimientos en frontera más eficientes Partners in Protection (PIP), Customs Self-Assesment (CSA), y el Free and Secure Trade (FAST).

4.54.  Como en la mayoría de países de alto ingreso, el sector de los servicios es el que más contribuye al PIB (con cerca del 70% entre 2011-2014). En este sector se destaca el buen desempeño que ha tenido el sector turístico, los servicios ambientales, los servicios prestados a las empresas y la fortaleza de su sistema financiero, sobre lo cual ha enfatizado el Sr. MacKay.

4.55.  En suma, constatamos que desde su último examen de políticas comerciales, Canadá ha logrado avances significativos, y que los mayores esfuerzos que quedan por hacer se refieren principalmente al sector agrícola. 

4.56.  No puedo concluir mi intervención sin mencionar el papel tan activo y constructivo que juega la delegación de Canadá en Ginebra, encabezada por el Embajador Fried, en todas las actividades de la OMC. Agradecemos a Canadá las respuestas a las preguntas formuladas por mi delegación, las cuales analizaremos con detalle, y le deseamos el mejor de los éxitos en el presente examen.

HONG KONG, CHINA

4.57.  The economic and trade relations between Hong Kong, China (HKC) and Canada are strong and important. We are home to the largest Canadian business community in Asia. Last year, Canada was our 25th largest trading partner and we ranked 6th among Canada's export markets. We are pleased to be named, in Canada's 2013 Global Markets Action Plan, as one of the emerging markets with the best potential for broad Canadian commercial interests. We look forward to furthering our bilateral relations.

4.58.  At the same time, HKC and Canada are both staunch supporters of the multilateral trading system, seeing it as the cornerstone of our trade policies. Together, we are also actively engaged in the negotiations on plurilateral agreements which can contribute to the system, such as the Information Technology Agreement and Environmental Goods Agreement. HKC looks upon Canada as an important partner as we pursue trade liberalization in various contexts.

4.59.  During the review period, Canada has taken further steps to facilitate trade. A recent example is the introduction, just last month, of a Regulatory Framework for the Advance Commercial Information programme, which allows the Canadian Border Service Agency to use more effective risk management processes and tools to identify health, safety and security threats prior to the arrival of commercial goods. We appreciate Canada's efforts in improving its customs clearance procedures, and trust that in pursuing these initiatives Canada will ensure that they do not create unnecessary barriers to trade.

4.60.  We are also pleased to note Canada's commitment to the timely implementation of the Trade Facilitation Agreement, and look forward to its acceptance of the Agreement soon.

4.61.  By the beginning of this year, Canada had completed its unilateral trade liberalization efforts and eliminated the MFN applied rates of customs duties on machinery and equipment and on industrial manufacturing inputs. This is further to the tariff simplification process it introduced in 2012, and the elimination of the MFN applied customs duties on baby clothing and certain sports and athletic equipment in 2013.

4.62.  However, the level of tariff protection for Canada's agricultural sector is still relatively high. Since 2011, the average applied tariff for non-agricultural products had declined from 2.5% to 2.4%, but the average applied tariff for agricultural products stayed at a much higher level of 22.5%. The rates for certain products were even higher, such as the 238.7% for dairy products and 47% for animal products. While we appreciate Canada's effort in reducing subsidies to its agricultural sector, we hope to see lower tariffs as well.

4.63.  Separately, as 96.1% of Canada's tariffs are already ad valorem, we also encourage Canada to apply ad valorem rates to the remaining lines for greater predictability and transparency.

4.64.  On contingency measures, we note with concern the steep increase in the number of AD investigations initiated between 2012 and 2014, as compared with the previous three years. Of the 53 definitive AD measures in place at the end of the last year, some 80% were applied on steel and other metal products, and most investigations targeted Asian countries. Also, while AD measures last for seven years on average, one particular measure on potatoes imported from the United States has been in place for over 30 years. Bearing in mind the significant trade stifling effects of such actions, we strongly urge Canada to exercise restraint in initiating AD proceedings and critically examine the need for continued action.

4.65.  We are also aware of statutory provisions that restrict foreign investment. Under the Investment Canada Act, non-Canadians establishing or acquiring a Canadian business must submit either a notification or an application for review. There are also other investment restrictions in sectors such as fishing, mining, oil sands, air transport, publishing, broadcasting, film distribution, and telecommunications. While some of these restrictions were relaxed during the review period, we encourage Canada to consider further liberalization.

4.66.  With the services sector accounting for 70% of its GDP, I think Canada should have a strong interest in opening up its services markets to foreign investment. We therefore encourage Canada to also remove the commercial presence requirement for foreign financial services providers, and allow foreign insurers to be incorporated provincially.

4.67.  Finally, I would like to thank Canada for its response to our written questions. I would also like to commend Ambassador Fried and his team for the very constructive role they play in the WTO. I wish Canada a fruitful Trade Policy Review. 

UNITED STATES

4.68.  As a neighbour and top trading partner, Canada's trade regime continues to be of deep interest to the United States. The foundation of our long-standing relationship is the North American Free Trade Agreement, preceded by the U.S.-Canada Free Trade Agreement. Canada is the United States' largest goods trading partner with U$658 billion in total two-way goods trade during 2014, an increase of nearly 7% since Canada's last TPR in 2011. Services trade between the United States and Canada has also grown by more than 5% since 2011, totalling US$93.5 billion in 2014. Bilateral direct investment exceeds US$600 billion (according to 2013 data) supporting enhanced employment opportunities in each country. Today, according to the Secretariat report, 77% of all Canadian exports go to the United States and 54% of Canadian imports come from the United States.

4.69.  The United States' partnership with Canada is critical to both Governments' national and economic security. Recognizing and building upon the dynamic economic relationship our two countries share, in 2011, President Obama and Prime Minister Harper launched the Beyond the Border and Regulatory Cooperation Council initiatives to deepen our regulatory cooperation efforts to increase economic competitiveness while enhancing security through secure, efficient, rapid, and lawful movement of goods and people. Nearly four years later, our mutual commitment to these shared goals remains and this important work continues.

4.70.  Since Canada's last Trade Policy Review, the United States and Canada have worked together to advance the multilateral trading system. The United States values Canada's strong support for multilateral trade liberalization through pressing for pragmatism in the DDA negotiations. We are working closely with Canada in the Environmental Goods Agreement negotiations and believe strongly that one of the best ways we can respond to the environmental challenges our world faces, is by achieving our shared goal of global free trade in environmental goods. We welcome Canada's support for the implementation of the Trade Facilitation Agreement and are appreciative of Canada's role in the Trade in Services Agreement (or TiSA) negotiations. We look forward to continuing to work with Canada on these important multilateral and plurilateral efforts to open markets and to address other important issues that affect the global trading system.

4.71.  Reflecting its deep commitment to trade liberalization, Canada has played a leading role in regional trade arrangements. Canada was a founding member of the Asia-Pacific Economic Cooperation forum in 1989, and continues to make valuable contributions to APEC's important work to promote trade and investment liberalization in the Asia-Pacific region. 

4.72.  We are now working with Canada in the most ambitious effort yet to promote regional trade and investment liberalization, the Trans-Pacific Partnership (or TPP). Canada joined the TPP in October 2012, as did Mexico. The TPP represents the next step in the evolution of our trading relationship with our North American partners. 

4.73.  In TPP, we are seeking to liberalize trade and investment on a comprehensive basis, and are tackling a broad range of issues with relevance to the way trade happens in the 21st century. These are ambitious objectives, but the 12 TPP partners are committed to them, in part because we know an ambitious agreement is one that will generate the greatest benefits to its members, and for our citizens. We are committed to a TPP that is fully consistent with our WTO obligations and contributes to a stronger multilateral system. 

4.74.  Despite these positive achievements, there are some areas in which we would encourage the Government of Canada to make further improvements. We hope this Trade Policy Review will help draw Canada's attention to those areas where we believe additional reforms would enhance its competitiveness.

4.75.  First, the United States commends Canada for the passage of the Combating Counterfeit Products Act in December 2014. While the new law provides authority to Canadian customs officials to detain pirated and counterfeit goods being imported and exported at the border, the United States is disappointed that the new law does not apply to pirated and counterfeit goods in customs transit control or customs trans-shipment control in Canada. The United States urges Canada to provide its customs officials with full ex officio authority to improve its ability to address the serious problem of pirated and counterfeit goods entering our highly integrated supply chains.

4.76.  Trade in agriculture and agri-food products comprises an important component of our vibrant and mutually beneficial trading relationship. Reducing barriers to agricultural imports that distort competition could improve Canada's productivity to the benefit of consumers not only in North America, but also worldwide. We encourage Canada to re-examine policies that impose excessive tariffs and restrict imports of certain agriculture products, such as dairy products, eggs, and poultry. 

4.77.  Finally, we are also deeply troubled by recent changes to the Province of British Columbia's rules for selling wine. As of April 2015, B.C. allows only B.C. wines to be sold on the shelf in B.C. grocery stores. Barring imported wines from also being stocked on local grocery store shelves reduces the competitive opportunities for imported wines. We therefore urge Canada to ensure that a level playing field is afforded to domestic and imported wines alike in accordance with Canada's obligations under the WTO.

4.78.  As Canada's largest trading partner and bound to it by an increasingly integrated North American economy, we share a strong common interest in Canada's continued growth and prosperity. Our bilateral experience with Canada is compelling evidence that mutual trade liberalization is a powerful force for economic growth and increased competitiveness. For that reason, we look forward to working with Canada, and other WTO Members, to support and strengthen the multilateral trading system.

NEW ZEALAND

4.79.  As in Canada's previous review in 2011, we have noted both Canada's strong economic performance as well as areas outlined in the Secretariat report where Canada could implement reforms in support of further economic growth.

4.80.  New Zealand observes that there is a strong link between Canada's strong economic performance and international trade. Like other Members, we welcome Canada's proactive and constructive contribution to the current post-Bali work programme discussions, as well as the importance it attaches to the WTO as the foundation for its relationships with its trading partners.

4.81.  New Zealand and Canada enjoyed close collaboration across a range of WTO work streams, including in technical Committees, special sessions and negotiations towards plurilateral agreements that support the multilateral system, such as the ITA expansion, GPA, and EGA. New Zealand notes that Canada chairs the General Council and the Working Party on GATS Rules. New Zealand appreciates Canada's contribution as a fellow member of the Cairns Group. Beyond the WTO, we are also currently working very closely in pursuit of conclusion of the Trans Pacific Partnership negotiation, and the Trade in Services Agreement.

4.82.  However, despite this solid relationship, New Zealand, more broadly, maintains a number of areas of concern regarding aspects of Canada's trade and economic policy settings. In particular, these lie in the two areas of agriculture and liquor trade mark ups.

4.83.  New Zealand continues to be concerned about the magnitude and nature of Canada's export subsidies. Indeed, based on the most recent notifications, Canada is the largest provider of export subsidies. Given the highly distorting effects these subsidies, we call on Canada to outline how and when it plans to curtail these subsidies. Based on our own experience, and that of others, the removal of export subsidies demonstrates the positive impact such policy changes can have on a domestic agricultural sector.

4.84.  New Zealand welcomes Canada's declining agricultural producer support estimate, at 11.6% in 2013 versus 17.2% in 2009. However, we note that this is not consistent across sectors and we would welcome Canadian efforts to ensure that support to the dairy industry decreases along with other industries.

4.85.  Canada's export subsidies and domestic support are effectively part of its wider supply management. As the Secretariat report notes, supply management hinders the competitiveness of the dairy industry and passes the costs to the consumer, none of which would appear to serve the interests of Canada. We remain interested in consideration Canada has given to ensure Canada can take advantage of growing international demand for dairy.

4.86.  Finally, we would like to take this opportunity to raise the emerging issue of variable trade mark ups by provincial liquor boards. New Zealand wishes to ensure that imported products are given access to the same sales channels as locally produced products and that any mark ups are applied in a transparent, non-discriminatory manner.

4.87.  New Zealand appreciates Canada's continued commitment to the multilateral trading system and we welcome the positive steps that Canada has taken in the four years since the last TPR.

EUROPEAN UNION

4.88.  Canada has an open and strong economy which created about 740 000 jobs during the review period. This is a success story. Canada's strategy to diversify its exports and support the internationalisation of its SMEs will be of much interest to many of us. Canada's steady increases in imports and exports, both in goods and services, have contributed to increasing its participation in the world economy. As noted by the Secretariat, Canada's trade however remains very dependent on the situation in the United States' market.

4.89.  Canada is a strategic partner for the EU. Economic relations between the EU and Canada are characterized by robust two-way trade and investment flows. As far as trade in goods is concerned, the EU is Canada's second most important partner.

4.90.  We are going through an exciting period as the EU and Canada finalized last August 2014 the negotiations of the EU-Canada Comprehensive Economic and Trade Agreement (CETA). We are both preparing the ratification by our parliaments. Together with other trading partners, the EU and Canada have supported and promoted economic openness as a normative standard in international relations and in this Organization. We remain convinced that CETA will enable further achievements at the multilateral level. As already underlined by Canada in its report, CETA addresses subjects and sectors not yet covered by the WTO. In that sense, CETA allows us to apply new rules beyond the WTO acquis, which is unique. We hope this will over time profit this organisation too.

4.91.  The EU wishes to convey its appreciation for the constructive role played by Canada in reaching a successful outcome at the WTO's Ninth Ministerial Conference in Bali and the commitment it expresses in its report to a timely implementation. The EU would like to acknowledge the role of Ambassador Jonathan Fried and his team for their tireless efforts in advancing the work in this organisation.

4.92.  The EU has seized the opportunity of the review to present few written questions to Canada. The EU hopes that some of the questions it raised will be of interest to most of the Membership. In fact, it may well be that we were not the only ones to raise the following issues:

·             The ongoing review of the inter-provinces agreement and the impact on Canada's implementation of its international commitments;

·             The Investment Canada Act;

·             The perspectives for the liquor boards;

·             The legislative measures that Canada intends to take to implement the Trade Facilitation Agreement.

4.93.  The EU very much welcomes that Canada used the alternative timeframe for its review, which allows all of us to get replies to our written questions in advance to the meeting and to make the meeting more effective.

CHINA

4.94.  The first impression we have is the encouraging fact that Canada has emerged rapidly from the global economic recession with annual GDP growth at 2.4% in the past four years, and its economy has generally shown strong resilience to external shocks, with a right focus on boosting growth and job creation. 

4.95.  This is attributive to robust actions taken by the Government of Canada which has timely adopted the effective macroeconomic policies and strong fiscal and financial fundamentals. The Economic Action Plan has served to overcome the shortcomings in economic development, and some positive steps have been further taken to facilitate trade and investment, including the Release Prior to Payment programme, unilateral tariff reduction programme and the amendment of Telecommunications Act. 

4.96.  Nonetheless, Canada is still facing some long-term challenges, such as aging population, declining energy price, diversifying its export, encouraging two-way investment. With Canada's Economic Action Plan fully in operation, we expect Canada to undertake more concrete actions to re-energize its economy.

4.97.  Canada is a trading nation, with a natural endowment of bordering two great oceans of the Atlantic and the Pacific. International trade is vitally important to Canada and has been "the life blood of the Canadian economy", continuously powering its prosperity. While pursuing pro-trade and pro-investment strategy, Canada has been expanding markets and supporting commercial success in trade in the past years.

4.98.  As we are celebrating WTO's 20th anniversary this year, I think Canada deserves a special credit, acknowledging the fact that Canada, as an original GATT Contracting Party and WTO Member, has played an indispensable and positive role in the creation of both GATT and WTO. This is even true today as Canada is committed to the multilateral trading system and vigorously pushing forward the Doha Round. Particularly, Ambassador Jonathan Fried is working hard with his Geneva team to help finalize the Post-Bali Work Programme. Special tribute has to be paid to Ambassador Fried for his capacity as the Chair of General Council last year in breaking the impasse and implementing the Bali Decisions. 

4.99.  We notice with gratitude that Canada is the first Member to submit notifications on the LDC services waiver, and Canada is also pacing up its domestic ratification process of accepting Trade Facilitation Agreement (TFA). We hope that Canada will join efforts with all Members to contribute to the success of Nairobi Ministerial and conclude the Doha Round as early as possible.

4.100.  This year marks the 45 years anniversary of establishment of diplomatic relationship between China and Canada. In the past years, bilateral economic ties continued to deepen in a rapid and profound manner. China is the second largest trading partner, as well as a major source of overseas tourists of Canada. Canada is the second largest destination of China's overseas investment. According to China's statistics, bilateral trade has increased to US$55.2 billion in 2014 and is expected to maintain the strong growth this year. Two-way investment is also flourishing in a range of sectors including mining, manufacturing, financing, real estate and rental sectors. We believe that the entry into force of Bilateral Investment Promotion and Protection Agreement will further boost the confidence of business community and promote faster investment flow.

4.101.  Having said that, it is worth mentioning that there are still a number of concerns on certain issues in Canada's trade policies and practices, including the transparency of foreign investment reviewing process, just and fair treatment to Chinese investors, use of anti-dumping measures, export promotion programs, restrictions on high-tech products and preparation of domestic standards. We urge Canada to take concrete measures to address our concerns. We appreciate the Canadian delegation for their responses to China's questions, which we will study carefully.

NORWAY

4.102.  Canada is an original Member of the WTO and a strong advocate of the multilateral trading system. Canada has always been a key player in shaping the multilateral trading system, and its active and constructive role in the further development of the WTO is necessary and important as we prepare the Post Bali Work Programme and the Nairobi ministerial conference. As the Secretariat states in its report, Canada is committed to free trade and depends heavily on international trade to sustain the prosperity of the nation and raise the incomes and living standards of Canadians.

4.103.  We welcome Canada's active participation in initiatives such as TiSA and the ITA. Norway would like to commend Canada on the longstanding cooperation on the issue of the environmental goods, and in particular, during the last year in the environmental goods agreement negotiations (EGA).These negotiations will hopefully add constructively to the multilateral trading system, given the aim to multilateralize a future agreement. Liberalization of environmental goods will contribute to the climate challenge. Norway strongly support more members joining the EGA initiative, and shares the ambition to finalize the negotiations before the UNFCCCs Convention of the Parties in Paris December 2015.

4.104.  Let me also highlight Canada's active role in the negotiation of the revised WTO Agreement on Government Procurement (GPA) and to which it became party since its entry into force on 6 April 2014. Now that the revised GPA has entered into force, Canada is actively involved in its work programmes and new accessions, and remains committed to the further expansion of the agreement.

4.105.  As others, we note with concern, Canada's widespread use of trade remedies.

4.106.  Mr McKay has stressed Canada's ambitious trade policy agenda with a view to diversifying Canada's exports. Canada is currently taking part in a number of plurilateral, regional and bilateral free trade negotiations. This obviously requires considerable resources being allocated to negotiating bilateral agreements parallel to/or in lieu of ongoing multilateral negotiations within the WTO. We are impressed with the capacity of Canadian authorities to handle all these processes. For Norway (and the other EFTA-countries) the final negotiated text on the Canada-EU Comprehensive Economic and Trade Agreement (CETA) is of particular interest and we look forward to the finalization of the legal review.

4.107.  A topic where we would have liked to see some more elaboration in the reports is the Trans-Pacific Partnership (TPP) negotiations, which Canada joined in 2012. According to the Canadian report, participation in the TPP is a key pillar of Canada's ambitious pro-trade plan. Participation in the negotiations strengthens Canada's efforts to broaden and deepen its trading relationships with Asia-Pacific markets and its traditional partnerships in the Americas.

4.108.  Norway would like to commend Canada's strong commitment to Aid for Trade and for its support to Trade Facilitation implementation.

4.109.  On trade relations between Norway and Canada, let me briefly mention that the current flow of Norway – Canada trade is concentrated in the energy and mineral sector. Canada's main imports from Norway are petroleum products, seafood and machinery. Canada`s main exports are nickel mattes. There is a potential for expansion of services and investment activities across a diverse range of industries. Long-term business development will be facilitated by joint efforts in research and innovation, and eliminating residual barriers to trade and investments. Equally important is the fact that a large number of Norwegian companies are established in the Canadian market. They represent the marine, maritime, chemical, information technology sector, defence industry, as well as oil and gas industries – and we see a trend towards diversification.

4.110.  Let me also add that the Norwegian Pension Fund Global by the end of 2014 had invested an amount close to about US$25 billion in Canada. These investments include equity investment in more than 250 companies. 

JAPAN

4.111.  First of all, Japan highly commends Canada's contribution over the years to the Multilateral Trading System under the WTO. Especially, Japan appreciates the important roles played by Canada in promoting DDA negotiations in recent years. Canada has been contributing in the process as an important Member and as an active proponent of the various negotiation areas. We are looking forward to working together with Canada for a successful conclusion of DDA.

4.112.  Needless to say, Ambassador Fried, as the Chair of General Council, took the leadership to push forward DDA negotiations and to overcome the difficult impasse after Bali. Given the importance of TF Agreement as the first substantive outcome since the establishment of the WTO, his chairmanship significantly contributed to maintaining and strengthening the negotiation function of the WTO.

4.113.  On TF Agreement, Japan commends Canada's efforts to complete its domestic procedures for the acceptance tabling the TFA for the approval by the Parliament. Japan expects that Canada finalizes its domestic procedures in a timely manner.

4.114.  It is also noteworthy that Canada is the first Member which notified the commitment on the LDC service waiver.

4.115.  In addition to the efforts in the multilateral field, Canada has been actively participating in the plurilateral negotiations for further trade liberalization, such as the ITA expansion, EGA, and TiSA. Canada is also one of the parties committed to the revised GPA which entered into force in April 2014 and has been taking the leadership to coordinate discussion on new rules associated with the revision of the agreement. Japan commends Canada's proactive contributions to these plurilateral negotiations in Geneva.

4.116.  With respect to the RTAs, Japan emphasizes that these agreements should be fully compatible with the WTO Agreements. Only in that way, they will complement and strengthen the multilateral trading system. The report by the Secretariat mentioned that five new Canadian FTAs entered into force during the review period. In addition, Canada concluded the negotiations of the Canada-EU Trade Agreement last September. It also continues TPP negotiations, which expected to be concluded very soon, as well as bilateral negotiations of RTAs with various countries including Japan. Japan commends these efforts by Canada for further trade liberalization.

4.117.  Despite these commendable general trade policies, there are some concerns with respect to specific trade measures, namely, pharmaceutical patents, export restrictions related to energy sector, and forestry policies. Now let me touch upon these issues.

4.118.  First, pharmaceutical patent applications are often declined in Canada due to the utility requirement which is more stringent than other countries. Japan has concern about consistency with this utility requirement and Article 27 of TRIPS Agreement, if Canada imposes the excessively stringent requirement only in the sector of pharmaceuticals.

4.119.  Second, Japan submitted a question regarding the export restrictions stipulated in Article 605 of NAFTA, Canada answered that it would implement them in accordance with the international obligations under NAFTA and the WTO Agreements. We are very much interested in how Canada ensures the compatibility with the WTO Agreement in practice. We will submit additional questions with respect to the concrete procedures to implement them.

4.120.  Third, with regard to forestry policies, Canadian federal government requires permission for export of Canadian logs. In particular, the federal and provincial governments impose export restrictions on logs produced in British Colombia, requiring the use or manufacturing in the province as well as surplus test for export. Furthermore, we have a concern that a fee in lieu of manufacture imposed in British Colombia would constitute de facto export tax. And also we have been informed of an export ban on a certain high-quality logs produced in Canada. Japan would like to know Canada's position on these measures with respect to the consistency with Article 11 and Paragraph 12 of Article 24 of GATT.

4.121.  Last but not least, I could not conclude my remarks without mentioning an important contribution made by Canada under the review period. It is the Ambassador Fried's presentation with deep insight as Discussant of TPR of Japan two years ago, which was only possible by a real connoisseur of Japan. I would like to take this opportunity to express our gratitude to Ambassador Fried for his impressive presentation.

4.122.  I hope that our close cooperation will continue in future WTO activities, and would also like to wish Canada a very fruitful and successful TPR.

ARGENTINA

4.123.  Tras la profunda crisis financiera y económica internacional que afectó severamente el comercio global en el bienio 2008-2009, el comercio bilateral entre la Argentina y el Canadá ha mostrado signos muy alentadores de recuperación para ambos países, tanto en el bienio 2010‑2011 como en 2012-2014.

4.124.  En relación con esto, y si bien tanto el Canadá como la Argentina son exportadores netos de productos agropecuarios y agroalimentarios, las cifras antes referidas indican que -sin lugar a dudas- podemos realizar acciones tendientes a la reactivación y diversificación del comercio bilateral. Esto, en virtud del carácter complementario de varios sectores de nuestras economías.

4.125.  En este sentido, mi país celebra los recientes avances que permitirán ampliar el acceso de la carne bovina argentina al mercado canadiense y señala, además, su interés que en un futuro próximo se puedan dar los pasos tendientes a permitir la exportación de carne aviar argentina a Canadá.

4.126.  Asimismo, y con la finalidad de profundizar nuestras relaciones comerciales en diversas áreas, la Argentina quisiera manifestar su preocupación por las medidas adoptadas por -o que se encuentran a consideración de- algunos gobiernos provinciales canadienses en materia de comercio de vinos y su compatibilidad con la normativa del GATT.

4.127.  En el plano multilateral, Canadá y Argentina son miembros del Grupo Cairns. Destacamos que juntos han venido trabajando desde hace más de tres décadas a favor de la continuación del proceso de reforma de la agricultura. A lo largo de todos estos años Canadá ha efectuado contribuciones relevantes, tanto técnicas como políticas, para la labor de dicho Grupo.

4.128.  En cuanto a las  restricciones no arancelarias a la importación de los productos agropecuarios, quisiéramos recordar que Canadá ha tomado la iniciativa para abordar, junto con otros países participantes incluyendo a la Argentina, el problema de los bajos niveles de presencia de organismos genéticamente modificados autorizados, pero no permitidos en ciertos mercados de importación (nos referimos aquí a "low level presence" o LLP). Con la declaración de Vancouver de marzo de 2012 se ha dado el inicio a un proceso que continuó con una segunda reunión de participantes en Rosario, Argentina, en septiembre de 2012, y una tercera en Sudáfrica, en septiembre de 2013.

4.129.  Al respecto, nos gustaría expresar que apoyamos los esfuerzos de Canadá para promover un abordaje multilateral a la regulación de situaciones de bajos niveles de presencia (LLP), que permita garantizar el libre comercio de productos agroalimentarios ambientalmente seguros e inocuos, esperando sumar a otros miembros relevantes a esta Iniciativa.

4.130.  Finalizando, y al tiempo de reiterar nuestro reconocimiento por esta nueva oportunidad de intercambiar elementos de juicio y consideraciones sobre las políticas y prácticas comerciales de Canadá, permítanos señalar -una vez más- la relevancia de este ejercicio de transparencia en todos sus aspectos y desear a las autoridades canadienses la exitosa conclusión de este décimo examen de su política comercial.

EL SALVADOR

4.131.  Del informe de la Secretaría observamos la fortaleza de la economía canadiense, manteniendo sus indicadores macroeconómicos estables, logrando salir rápidamente de la crisis gracias a la creación de políticas macroeconómicas congruentes y a la fortaleza de su sistema financiero.

4.132.  También resaltamos el éxito alcanzado con la implementación del Plan de Acción sobre los Mercados Mundiales, el cual es un plan estratégico que incluye objetivos centrados en la firma de nuevos acuerdos comerciales, reforzar el sistema multilateral, acuerdos de promoción y protección de la inversión extranjera, abordar los obstáculos al comercio, entre otros.

4.133.  Del informe de la Secretaría, vemos con preocupación algunos programas para la exportación en el sentido de los alcances que los mismos tienen en los efectos comerciales.

4.134.  En materia arancelaria, observamos que Canadá ha realizado esfuerzos en simplificar su sistema arancelario a través de la reducción de líneas arancelarias y la reducción de aranceles aplicados menores al 5%. No obstante, instamos a Canadá a consolidar las líneas arancelarias pendientes, y a reducir los picos arancelarios, especialmente en cuanto a las líneas con aranceles compuestos, los cuales pueden llegar a superar el nivel consolidado en OMC, tal como se indica en el informe de la Secretaría.

4.135.  En el plano bilateral, El Salvador estableció relaciones diplomáticas con Canadá en 1961, destacándose el apoyo brindado a El Salvador en áreas tales como los derechos humanos, la democracia, el desarrollo socio-económico y la asistencia a los refugiados.

4.136.  En cuanto al comercio bilateral, Canadá ocupó el 10º lugar como destino de nuestras exportaciones. Con respecto a las importaciones, Canadá ocupa un lugar destacado en el ranking de proveedores de bienes de El Salvador, totalizando 57 millones de dólares EE.UU. en 2014, lo cual refleja la importancia comercial de Canadá para la cadena productiva del país.

4.137.  Dicho comercio es bastante complementario, ya que de conformidad con información del Banco Central de Reserva de El Salvador, para el período 2012-2014 las exportaciones de El Salvador hacia Canadá se concentraron en azúcar, café y productos de la confección, mientras que las exportaciones de Canadá a El Salvador son principalmente de productos de papel y cartón, grasas y aceites vegetales y animales, medicamentos y madera.

4.138.  La inversión extrajera directa proveniente de Canadá al cuarto trimestre de 2014 tiene un saldo de 268.51 millones de dólares EE.UU., siendo nuestro 7º inversor extranjero, concentrado en los sectores de banca seguros, textiles y servicios de externalización de procesos empresariales.

4.139.  En lo que a relaciones de negociaciones bilaterales se refiere, estamos en una fase avanzada del proceso de un Tratado de Libre Comercio, esperando poder concluir en un futuro cercano, congruentes con los objetivos de la agenda de política comercial, esbozada este día por el Representante de Canadá. No creo que debo extenderme más allá de lo que aquí indico dada la formalidad muy cercana que el señor McKay tiene con Centroamérica.

4.140.  En el plano multilateral, tal como lo recoge el informe de la Secretaría, Canadá es un Miembro activo en los Comités de la OMC. El Salvador aplaude los esfuerzos de Canadá en el marco de esta Organización y agradece el apoyo que da a las pequeñas economías, agrupación a la que El Salvador pertenece. Coincidimos de la importancia de concluir el presente ciclo de negociaciones a la brevedad, fieles a los mandatos dados por nuestros Ministros.

4.141.  Instamos al Gobierno de Canadá a concluir con el proceso de ratificación del Acuerdo de Facilitación del Comercio. Esto sería un mensaje muy importante para el multilateralismo.

4.142.  Como delegación, queremos felicitar la excelente participación del equipo canadiense ante la OMC, encabezada por el Embajador Jonathan Fried. Sus contribuciones e impulso han sido constructivos y pragmáticos.

4.143.  Reiterar lo señalado por el Gobierno de la república, el hecho que Canadá es un importante amigo de El Salvador, que ha demostrado siempre su solidaridad en los momentos que más hemos necesitado.

4.144.  Por último, agradecemos las respuestas provistas por Canadá formuladas por El Salvador en el marco de este ejercicio. Las mismas las analizaremos y daremos el seguimiento que estas merecen.

GUATEMALA

4.145.  Guatemala y Canadá han mantenido tradicionalmente una relación estrecha y cordial en una gran diversidad de temas de su agenda bilateral y regional. En 2012, el Primer Ministro Canadiense anunció durante la Sexta Cumbre de las Américas, el lanzamiento de la Iniciativa Canadiense para la Seguridad en Centroamérica (CISCA), un programa de destinado a fortalecer la seguridad regional en áreas tales como la capacitación de la policía, la seguridad fronteriza y el diálogo regional. Adicionalmente, en abril de 2015 durante la VII Cumbre de las Américas, las autoridades canadienses anunciaron el lanzamiento de programas adicionales dirigidos a América Latina, varios de los cuales contemplan también a Guatemala.

4.146.  En términos de comercio e inversión, nuestros países han sostenido históricamente una relación estable y armónica. Existe sin embargo un gran potencial para un incremento significativo en su intercambio de bienes y servicios. Guatemala es el segundo socio comercial principal de Canadá en Centroamérica. La balanza comercial ha mostrado un avance progresivo en los últimos años y superó los 300 millones de dólares EE.UU. en 2014. Los principales productos  importados de Canadá consisten en maquinaria, papas, fertilizantes y aparatos eléctricos. Por su parte, los principales productos exportados a Canadá consisten en azúcar, textiles, vegetales y frutas. Las inversiones canadienses en Guatemala constituyen una de sus fuentes principales de Inversión Extranjera Directa (IED) y abarcan una gran variedad de sectores tales como la minería, agricultura, silvicultura, energía, telecomunicaciones y servicios financieros. Nuestros países han discutido y negociado por varios años un Tratado de Libre Comercio y ambos países están abiertos a continuar dichas negociaciones.

4.147.  En relación con el examen de políticas comerciales que hoy nos concierne, resaltamos la capacidad de la economía canadiense para resistir a las perturbaciones externas y mantener un crecimiento, así como la aplicación de una política fiscal prudente ,los esfuerzos para reequilibrar su déficit en el período 2015-2016 y su constante participación en el sistema multilateral del comercio. Por otro lado, nos llama la atención el número de programas de subvenciones e incentivos que brindan asistencia a sus empresas bajo diferentes formas. Por otro lado, consideramos que será un reto interesante para Canadá en el futuro, continuar el proceso de diversificación de su oferta exportable.

4.148.  Reconocemos los esfuerzos emprendidos por Canadá durante el período evaluado en este examen de políticas comerciales. Agradecemos las respuestas remitidas a las preguntas planteamos y deseamos a la delegación que hoy los representa, la conclusión exitosa de este ejercicio.

CHILE

4.149.  Chile asigna un alto valor a su relación bilateral con Canadá. En los 74 años de relaciones diplomáticas, los vínculos se han ido desarrollando sobre la base de valores compartidos en el ámbito internacional, como los derechos humanos, la libertad, la democracia, el respeto al derecho internacional, la defensa del multilateralismo.

4.150.  De hecho, ambos países se reconocen mutuamente como países afines "like minded" lo que se traduce en coincidencias e iniciativas comunes en diversos foros multilaterales. Somos socios cercanos no solo en Naciones Unidas, sino también en el APEC, la OEA y, por supuesto, en esta casa.

4.151.  Además trabajamos juntos para ampliar las oportunidades y la integración comercial regional del Pacífico en el contexto de las negociaciones del Trans Pacific Partnership.

4.152.  Nuestra relación bilateral se fundamenta en dos pilares: el Acuerdo Marco de Asociación Estratégica de 2007 que amplía y profundiza la colaboración en sectores prioritarios, como el desarrollo sostenible, la educación y la agricultura, entre otros; y el Tratado de libre Comercio de 1997. Este acuerdo marcó un hito relevante en la política comercial de Chile, pues fue el primer tratado comercial suscrito con un país desarrollado. Después de México, fue el segundo firmado con un miembro del NAFTA.

4.153.  El acuerdo inicial no solo abarcó el comercio de bienes, sino también servicios, inversiones, medio ambiente, y temas laborales.

4.154.  El TLC con Canadá cumplirá en pocas semanas 18 años desde su entrada en vigencia. En estos años, se ha ido actualizando y modernizando, como la incorporación de un capítulo de Compras Públicas, que le permite a las empresas chilenas participar en el mercado federal de compras gubernamentales canadiense; y la suscripción de un Acuerdo Modificatorio al TLC que incorpora un capítulo de servicios financieros junto con una serie de modificaciones a diferentes disciplinas del Acuerdo.

4.155.  El proceso de desgravación culminó en 2003 para el 98,7% de los productos chilenos, que ingresan a Canadá sin aranceles. Desde entonces, el crecimiento promedio anual del intercambio comercial ha sido de un 13%. En el mismo período, el saldo de la balanza comercial con Canadá fue superavitario para Chile con una expansión promedio de 13% para las exportaciones y 14% para las importaciones.

4.156.  Canadá es un importante socio de Chile en inversiones, acumulando un stock de más de 19 mil millones de dólares EE.UU., y se sitúa como la tercera fuente de inversión, fuertemente concentrada en el sector minero (33%) y los servicios (9%).

4.157.  Con respecto al presente Examen, observamos que Canadá ha recuperado su impulso económico tras la crisis financiera, registrando durante el período que cubre este Examen un crecimiento del PIB medio anual del 2,4%. Nos alegra comprobar que ese éxito se ha logrado sin mayores alteraciones a su política comercial internacional.

4.158.  Muy interesante ha sido conocer que Canadá aplica desde 2009 una política de responsabilidad social de las empresas del sector extractivo, y alienta a sus empresas con presencia en el extranjero a operar conforme a las leyes del estado anfitrión, de manera transparente y aplicando mejores prácticas acordes a las Directrices de la OCDE.

4.159.  Esas son buenas noticias para un país como Chile que cuenta con fuerte presencia comercial extranjera en su sector extractivo, y que a su vez se encuentra diseñando una iniciativa similar para sus empresas.

4.160.  Por otra parte, nos preocupa que Canadá continúe otorgando importantes subvenciones e incentivos a su industria nacional mediante 755 programas de ayuda, según el informe de la Secretaría, sumados el ámbito federal, provincial y local.

4.161.  Ello resulta particularmente evidente en los sectores de agricultura y pesca. En el caso de la agricultura, se observan subsectores protegidos fuertemente, como los lácteos. Aunque, como señala el informe de la Secretaría, en general la ayuda interna ha disminuido en relación al período anterior, estimamos que sería valioso que Canadá considerara la disminución y eventual eliminación de apoyos que podrían distorsionar el comercio internacional.

4.162.  En otros aspectos, nos llama la atención el aumento y la utilización intensiva de medidas de defensa comercial durante el período.

4.163.  Según el informe de la Secretaría, se registran 43 investigaciones antidumping y 21 investigaciones en materia de derechos compensatorios.

4.164.  Sería interesante para nosotros conocer las causas de este aumento.

4.165.  Más allá de lo señalado específicamente, es claro que en esta casa Canadá aporta proactivamente y comparte una visión común con respecto a la liberalización del comercio internacional, en el marco multilateral que la OMC representa.

4.166.  En esta perspectiva, destacamos que Canadá es un Miembro que ha contribuido continuamente en la búsqueda de caminos de entendimiento para la conclusión del Programa de Trabajo Post Bali, con miras a que la próxima Conferencia Ministerial de Nairobi sea un éxito, y avancemos así hacia la conclusión de la Ronda de Doha.

COLOMBIA

4.167.  Para el período del examen, la economía canadiense seguía mostrando signos de una sólida recuperación económica. Luego de una considerable caída del PIB del 2,5% en 2009, su tasa de crecimiento real fue en promedio del 2,4% entre 2011 y 2014 - nivel alto entre los países desarrollados. Esto se puede explicar por la pertinente aplicación de políticas macroeconomías con medidas de estímulo fiscal y monetario, y el contar y mantener un sólido sector financiero. 

4.168.  En cuanto al comercio exterior, resalta su dinamismo presentando un aumento constante tanto en importaciones como en exportaciones de bienes y servicios. A pesar de esto, la economía canadiense presenta algunos desafíos, como lo es su alta dependencia del mercado de Estados Unidos y la concentración de sus exportaciones en pocos productos. Como se puede observar en el informe de la Secretaría, sus exportaciones de mercancías a este país, como porcentaje del total, aumentaron del 74 al 77% entre 2011 y 2014. En ese mismo período, el aumento también se vio en las importaciones de mercancías, que pasaron del 50 al 54% de las importaciones totales.

4.169.  Por otra parte, continúan algunas medidas de Canadá que afectan el comercio y distorsionan la competencia en el sector agrícola principalmente en los productos lácteos, los cereales y la carne. Por ejemplo, vemos que las importaciones de productos lácteos y avicultura siguen siendo limitadas a contingentes arancelarios con aranceles extracuota muy elevados. La producción y el comercio doméstico de estos productos continúa regulada y los niveles de ayuda destinada siguen siendo altos. Nos preguntamos si considerarán la posibilidad de realizar reformas inclinadas a una mayor liberalización en el contexto de su creciente integración a los mercados mundiales.

4.170.  Como lo resalta el informe de la Secretaría, Canadá no cuenta con un marco jurídico general que rija los incentivos y las subvenciones. Sin embargo, facilita ayudas a nivel federal, provincial y local que afectan la inversión y el comercio. Las ayudas, como la asistencia a las empresas en forma de donaciones, garantías de préstamo, devoluciones y desgravaciones fiscales, y subvenciones para el pago de salarios, afectan el entorno de la inversión y el comercio.

4.171.  En materia de medidas sanitarias y fitosanitarias, celebramos que los cambios en el sistema de inocuidad de Canadá hayan surtido el proceso de consultas, conduzcan a la modernización del mismo y estén de conformidad con las disposiciones de la OMC sobre la materia. Al respecto, cabe señalar que las autoridades informaron que el Organismo Canadiense de Inspección de Alimentos (CFIA) colaborará con pequeñas y medianas empresas para estudiar enfoques que se adapten a sus necesidades operativas y facilitarles el cumplimiento. Así mismo, cabe destacar que el CFIA implementó un sistema de importación automatizado para ayudar a los importadores y las autoridades aduaneras a gestionar las importaciones de productos agropecuarios, pesqueros, sanitarios y alimentarios.

4.172.  Por último, reconocemos el trabajo que viene desarrollando Canadá en cuanto a negociaciones de acuerdos de libre comercio y su participación en acuerdos plurilaterales. Desde el último examen, entraron en vigor cinco FTAs, entre los que se encuentre el de nuestro país. A enero de 2015, Canadá ya tenía 11 en vigor, había concluido el acuerdo con la UE y está negociando actualmente otros diez. Canadá juega un papel activo a favor del fortalecimiento del sistema multilateral del comercio que es reconocido por los Miembros de la OMC. Esperamos seguir contando con su excelente Embajador y equipo en Ginebra como firmes aliados en este proceso y, sobre todo, en los trabajos para la culminación de la Ronda de Doha. 

THE RUSSIAN FEDERATION

4.173.  The Russian delegation welcomes the 10th Trade Policy Review of Canada. We are pleased to be a part of the current monitoring exercise which enables us to emphasize those elements in the Canadian trade regime we are interested in or concerned about.

4.174.  We appreciate the continuous growth of Canadian economy with an average annual rate of 2.4% during the review period due to both robust economic policy and market factors. It is worth to note, however, that despite steady increase in imports and exports, Canada has certain vulnerabilities with respect to trade, as the country is reliant heavily on its major partner-market of the United States. A narrow export product base - mainly energy and mineral products, transportation equipment and vehicles – still remains another feature of the Canadian economy and requires a proper addressing. In this context, we observe with attention how Ottawa - in the course of contributing to further economic growth - copes with the challenges of diversifying its merchandise specialization and rebuilding trade and investment policies with priorities, given to the key national sectors of strong competitive advantages.

4.175.  On the bilateral track, over the years the Russian Federation and Canada have been developing broad cooperation in many areas, including mining, oil and gas, automotive components, aerospace and others. During the recent years, our trade turnover showed a slight upward trend, reaching the amount of US$2.2 billion in 2014. Obviously, it is far behind the existing economic potential of the Russian-Canadian bilateral ties. And we believe that our countries can be of much more interest to each other, not only like they are on the ice hockey arena but also in such not less competitive fields as trade in goods, trade in services, investment and many others.

4.176.  During this review, Russia has submitted a number of questions regarding some of Canadian trade and investment policies, in particular SPS, food standards, state owned enterprises, import and distribution of alcoholic beverages. We look forward to receiving the answers and intend to give them a thorough consideration.

4.177.  We remain deeply concerned with a number of unilateral trade restrictive measures imposed by Canada against the Russian Federation due to non-economic reasons. In this respect, we would like to express our regrets and disappointment with the escalating of anti-Russian political rhetoric of Ottawa which brings nothing but harm to both sides including mutual economic, trade and investment losses. The Russian Federation reiterates its request to Canada to bring its measures in line with the Canadian obligations under the WTO Agreements and to terminate all unfounded restrictive measures immediately.

REPÚBLICA DOMINICANA

4.178.  Para la República Dominicana, Canadá es un importante socio comercial, y durante los últimos cuatro años del 2010 al 2014, ha sido el principal origen de inversión extranjera directa, con un flujo de 2,973.3 millones de dólares EE.UU., representando el 25% del total en los últimos cuatro años. En cuanto al intercambio comercial, en el año 2014, el mismo alcanzó 1,235 millones de dólares EE.UU. aproximadamente, representando un superávit en favor de la República Dominicana de 700 millones de dólares EE.UU. aproximadamente.

4.179.  Canadá se ha recuperado de la crisis financiera y durante el período objeto de examen (2011-2014), el PIB ha crecido a una tasa media anual del 2,4%, y aunque el crecimiento durante el período no ha sido comparable a los niveles registrados antes de la crisis y sigue siendo inferior a su tasa potencial, la economía canadiense ha mostrado generalmente capacidad de resistencia ante las perturbaciones externas.

4.180.  La economía canadiense es una economía diversificada, sin embargo, también se indica que ha dependido durante mucho tiempo de sus recursos naturales y de su riqueza mineral, siendo los sectores de la minería y la energía no solo muy importantes para la economía canadiense en términos de PIB y empleo, sino que los mismos contribuyen de manera importante a las exportaciones y tienen una incidencia positiva en su balanza de pagos. En este sentido, sería importante continuar haciendo esfuerzos en pos de la diversificación de la economía.

4.181.  Tomamos nota del Plan de Acción Económica de 2014, el cual de manera certera, centró su atención en equilibrar el presupuesto, apoyar la generación de empleo y el crecimiento, explotar de forma responsable los recursos, y ayudar a las familias y las comunidades.

4.182.  Canadá ha realizado esfuerzos para reequilibrar y eliminar el déficit, producto del período de crisis, controlando el gasto en programas, introduciendo medidas para mejorar la equidad del sistema fiscal y estableciendo condiciones adecuadas para impulsar el crecimiento económico.

4.183.  Durante el período objeto de examen, la evolución del comercio en el Canadá se caracterizó por un aumento constante de las importaciones y exportaciones de mercancías y servicios, siendo el comercio de mercancías del Canadá aproximadamente cinco veces superior al comercio de servicios, tanto en el caso de las importaciones como en el de las exportaciones, sin embargo el mismo depende significativamente de los Estados Unidos como su mercado principal y cuenta con una base limitada de productos destinados a la exportación, compuesta fundamentalmente por productos energéticos y minerales, servicios de transporte y vehículos. En este sentido, sería conveniente hacer mayores esfuerzos para diversificar tanto los mercados de destino como los productos de las exportaciones. 

4.184.  Canadá, durante el período examinado, ha llevado a cabo un proceso de simplificación de los aranceles mediante la armonización de numerosos derechos en tres intervalos arancelarios, incluida la eliminación de los aranceles menores al 5%. Asimismo, se tomaron varias iniciativas autónomas de liberalización en sectores (como la maquinaria y equipo, la ropa de bebés, el material deportivo o las unidades de perforación mar adentro, lo cual sin duda contribuye a un mayor crecimiento y comercio); sin embargo, todavía permanecen importantes barreras en el sector agrícolas, con contingentes arancelarios y elevadas tasas arancelarias, en particular, en los lácteos, con un arancel medio de 238,7% y los productos de origen animal con un promedio arancelario del 47%.

4.185.  Nos preocupa sin embargo, que Canadá siguió utilizando las medidas antidumping y los derechos compensatorios de forma acelerada, iniciando 43 investigaciones antidumping (con un número máximo de 17 en 2013) y 21 investigaciones en materia de derechos compensatorios (con un número máximo de 12 en 2014). Sugerimos en este sentido, la aplicación de estas medidas, de una forma más racional, de forma que no se obstaculice el comercio de los países en desarrollo.

4.186.  También nos llama la atención el importante número de programas de ayuda en forma de subvenciones e incentivos que proporciona el Canadá, teniendo aproximadamente, 755 programas de ayuda que proporcionan asistencia a las empresas en forma de donaciones, garantías de préstamo, devoluciones y desgravaciones fiscales, y subvenciones para el pago de salarios, y nos preguntamos sobre su consistencia con el Acuerdo de Subvenciones y Medidas Compensatorias de la OMC.

4.187.  Vemos con simpatía sus programas tecnológicos y de innovación que benefician a las pequeñas y medianas empresas cuyas exportaciones a los mercados emergentes esperan aumentar su presencia del 29% al 50%, siendo este tipo de programas, un instrumento importante en las políticas de mejoría en la redistribución del ingreso. Asimismo, felicitamos a Canadá por su fuerte compromiso en la ejecución de programas de innovación dirigidos a nuevas tecnologías limpias y mejora del medio ambiente.

4.188.  La República Dominicana ha presentado algunas preguntas a Canadá, en relación con sus esquemas preferenciales y agradecemos las respuestas presentadas, las cuales vamos a estudiar con detenimiento.

INDIA

4.189.  India welcomes the robust recovery made by the Canadian economy post financial crisis. Canada has registered an average annual GDP growth rate of 2.4% during the review period, notwithstanding the uncertain global economic environment and weak external demand, which is impressive. At the same time, as noted by the discussant, Canada continues to confront certain vulnerabilities with respect to trade as it is significantly reliant on a single market and has a narrow export product base, mainly concentrated in sectors such as energy, mineral products, transport, and vehicles. Further, the fluctuations in commodity and energy prices have had an impact on its economy and current account deficit. However, through its Global Markets Action Plan and sector specific strategies, it has continued to calibrate it trade policy and promotion strategies to maintain its competitive edge and access to international markets.

4.190.  While Canada has generally maintained an open and transparent policy regime, it would appear that some sectors are still quite closed. As noted in the Secretariat report, while over two‑thirds of the Canadian tariff lines have zero duties, the application of non-zero rates is concentrated in a few sectors such as dairy products, clothing and footwear – areas where developing countries have also export interests. Canada provides support in the form of subsidies and incentives through over 750 support programmes at the federal, State and provincial levels providing assistance in the form of grants, loans, guarantees, tax refunds and credits.

4.191.  As noted by the discussant, another area of some concern is the structure of the Canadian agriculture, with a very competitive exporting sector on the one hand and supply managed industries on the other. Canada's average applied tariff for agriculture products of 22.5 %, which remained unchanged in the review period, is almost ten times higher than the average tariff for non-agricultural products, which is at 2.4%. Furthermore, Canada continues to use a wide array of protection instruments, such as tariff rate quota, tariff peaks, non-ad valorem tariffs, special safeguards, and export subsidies. Similarly, on the investment side, there remain certain restrictions in sectors such as telecommunications, broadcasting, and air transport.

4.192.  On the bilateral front, India and Canada enjoy a multifaceted and strategic partnership underpinned by shared values of democracy, pluralism, expanding economic engagement and long standing people to people linkages. Canada is home to over 1.2 million people of Indian origin. Our bilateral trade has maintained a steady growth with two-way trade increasing from Can$4.2 billion in 2010 to Can$6.4 billion in 2014. Indian investments in Canada have increased steadily in the recent years, especially in the IT, software and natural resource sectors. India and Canada are working together to expeditiously conclude a balanced and mutually beneficial comprehensive economic partnership agreement. We are also in the process of negotiating a bilateral investment promotion and protection agreement. All in all, our bilateral relations are undergoing significant transformation and both countries remain committed to elevating the trade and investment linkages to their full potential.

4.193.  We had posed some advance written questions to Canada and my authorities would be reviewing the responses received. Let me underline one particular area of concern to India, which relates to visa and work permits for IT professionals. The recent changes carried out by Canada in its Temporary Foreign Workers Program (TFWP) and, in particular, significant changes to the ICT visa and work permit category have directly impacted the movement of service providers, especially those working in the IT sector. The Labour Market Impact Analysis and a rigorous definition of "Specialized Knowledge" for IT work permit could adversely impact Canada's ability to attract the best talent to contribute to its digital economy. We would urge the Canadian Government to review these requirements to facilitate movement of temporary service providers.

4.194.  Finally, we very much appreciate the role played by Canada in the WTO and the on-going DDA negotiations. India and Canada have a shared interest in an effective multilateral trading system and we look forward to working with Ambassador Fried and his team, and other Members in the on-going negotiations to help conclude the Doha Round with balanced outcomes for all. 

REPUBLIC OF KOREA

4.195.  I am pleased to note that Canada and Korea have maintained mutually beneficial trade relationship over the years based on the complementary nature of both economies. Korea is Canada's seventh largest trading partner and third largest in Asia. Bilateral trade volume between the two countries has steadily increased, reaching more than US$11.4 billion in 2014, with Canada's exports to Korea reaching US$4.2 billion. With respect to FDI, Korea's investment to Canada amounted to US$10 billion, and Canada's investment to Korea amounted to US$5.5 billion in 2012. Importantly, these figures demonstrate a very close economic partnership that will continue to grow and develop in the future.

4.196.  Turning to Canada's overall economic performance, Korea would like to commend the Canadian Government for recovering well from the financial crisis and achieving an average 2.4% GDP growth during the review period. Even though its economy has faced some challenges and the growth rate slightly declined to below 2% between 2012-14 mainly due to weaker export growth and investment, we believe that its unilateral trade liberalization policies coupled with its wide ranging structural reforms have and will continue to be the major source of tis economic strength and success.

4.197.  More specifically, the average applied tariff for non-agricultural products during the period declined from 2.5% to 2.4%. A number of autonomous liberalization initiatives were undertaken in some sectors including machinery, clothes, sports equipment and offshore drilling units. In addition, the revised GPA came into force for Canada in 2014 whereby Canada's market access commitments at the sub-federal level have been significantly expanded. All provinces and territories as well as ten federal crown corporations are now covered in Canada's GPA schedule. As a firm believer in the multilateral trading system embodied in the WTO, Canada has played a key role by actively participating in the DDA negotiations and plurilateral negotiations.

4.198.  On the bilateral front, it is our hope that the Korea-Canada Free Trade Agreement, Canada's first FTA with an Asian country, which entered into force in January 2015 will help deepen the economic cooperation between the two countries. We also hope that it will play a role in helping advance trade liberalization as it aims to achieve a comprehensive and high-quality trade deal while fully respecting WTO standards.

4.199.  Korea would like to provide a brief comment on Canada's trade remedies where we find there is room for improvement. We note that, as pointed out in the Secretariat report, Canada has used anti-dumping and countervailing duty measures at an accelerated pace during the review period. There were 43 initiations of anti-dumping investigations and 21 initiations of countervailing duty investigations. It is important to note that the majority of investigations involved countries from Asia. In 2014, there were six anti-dumping measures in force and two investigations initiated on imports of Korean products, primarily steel products. Taking into account the adverse effects of these measures on trade, it would be advisable that more prudent approaches be taken in initiating anti-dumping investigations.

4.200.  Finally, we very much hope that Canada, as one of the world's most open and responsible trading nations, will continue to play an important role in helping not only strengthen the WTO multilateral trading system as a whole, but also advance the DDA negotiations. To be clear, Korea has and will continue to work closely with Canada within the context of the DDA and plurilateral negotiations.

TRINIDAD AND TOBAGO

4.201.  Trinidad and Tobago and Canada enjoy a longstanding and dynamic relationship, the origins of which precede the achievement of independence of Trinidad and Tobago on 31 August 1962. Such a relationship commenced in 1938 when a full-time Trade Commissioner was appointed to Port Spain. In August 2012, Trinidad and Tobago simultaneously celebrated the fiftieth anniversary of achievement of Independence and the fiftieth anniversary of the establishment of diplomatic relations with Canada. This protracted history highlights the reality that both countries share friendly relations and have been mutual trading partners for over seven decades.

4.202.  Since the year 2000 to present, the volume of trade between Trinidad and Tobago and Canada has steadily increased. Exports from Trinidad and Tobago to Canada include fish and seafood, iron and steel, machinery, mineral fuel organic chemicals and beverages whilst imports from Canada include vegetables, machinery, paper and paperboard, copper, electronic equipment and mineral ore.

4.203.  Trinidad and Tobago is a business friendly country and one of Canada's largest investment target countries in the Caribbean region. These investments are primarily in the banking and energy sectors and include potash and methanol. In March 2013, the Trinidad and Tobago Business Guardian quoted the High Commissioner of Canada H.E. Gérard Latulippe who expressed that the value of Canadian investment in Trinidad and Tobago was in the vicinity of Can$1.3 billion.

4.204.  In terms of financial services, such an investment is quite dynamic with the operation of prominent institutions such as the Royal Bank of Canada and Scotiabank in Trinidad and Tobago. 

4.205.  Trinidad and Tobago also recognizes that Canada is an industrial giant with increasing expertise and experience in the energy and mining sectors. According to the Canadian Energy Overview 2013-Energy Briefing Note, Canada's energy industry's direct contribution to GDP is 9.6%, a positive increase of 1.1% when compared to the previous year. It is therefore not surprising that over the years, investment in Trinidad and Tobago by Canadian oil companies has been consistent. Some of the major Canadian energy companies which have operations in Trinidad and Tobago include Methanex, PCS Nitrogen, Niko Resources and Touchstone Exploration.

4.206.  As a result of these capital ventures, the Ministry of Energy and Energy Affairs of Trinidad and Tobago has recommended that efforts be made to strengthen cooperation between Trinidad and Tobago and Canada in the energy sector particularly in relation to areas such as: heavy oil, carbon capture storage and carbon dioxide enhanced oil recovery (EOR). In addition to this, there is also a mutual interest between the countries in the transfer of knowledge, technology and experience in developing a skilled labour force and infrastructural development for both conventional and non-conventional energy sectors in a sustainable manner. That being said, it is also worth mentioning that Trinidad and Tobago and Canada are also exploring the possibility of employing skilled labourers to work in the booming energy sector in the province of Alberta.

4.207.  With the view to further strengthening bilateral ties and investment links between the two countries, in April 2013, the Honourable Kamla Persad-Bissessar, Prime Minister of Trinidad and Tobago, together with her accompanying delegation, paid an Official visit to Canada. During that visit, four Memoranda of Understanding were signed in the areas of tertiary-level education, employment services, security and defence. Following that meeting, and as recent as January, 2015, a Canadian Trade and Economic Mission visited Port of Spain to explore and assess market opportunities in Trinidad and Tobago and vice-versa. The Mission sought to facilitate the identification of Canadian business partners for Trinidad and Tobago companies which have the potential to serve as a network for distribution, sales and service agents for Trinidad and Tobago products on the Canadian market with the aim of creating several investment opportunities.  

4.208.  In addition to this, special reference must also be made to the fact that Trinidad and Tobago continues to participate and benefit from the Canadian Seasonal Agriculture Workers Programme (SWAP). This programme, which has been in place for more than forty years, engages local agricultural workers in seasonal harvesting projects in Canada.

4.209.  My delegation would like to take this opportunity to briefly discuss the CARICOM-Canada Trade Agreement -commonly known as CARIBCAN. The CARIBCAN arrangement supports Trinidad and Tobago's goals for export growth and diversification and creates positive spill-off effects on other development goals including economic transformation and poverty and unemployment reduction. For close to two decades, between 25 and 35% of Trinidad and Tobago's exports to Canada have been duty-free under CARIBCAN. Following the last meeting of the WTO Council for Trade of Goods (CTG) in March 2015, the issue relating to the renewal of the CARIBCAN waiver until 2023 was deferred. Despite this, Trinidad and Tobago together with the rest of CARICOM remain confident that the CARIBCAN waiver would be approved when it comes up for consideration at the next meeting of the CTG scheduled to take place next month. Trinidad and Tobago and the rest of the region welcome the possibility of returning to the negotiating table to make further progress on this issue.

4.210.  As a small developing island State, Trinidad and Tobago agrees that international trade and investment flows are essential drivers of sustainable economic growth. My delegation also agrees with the fact that the liberalization of trade in, for example, environmental goods can contribute positively to climate change and other global environmental challenges. Having said this, my delegation will request further assistance from Canada, as a major player in the G20, in lobbying on behalf of small vulnerable countries in order for them to meet their development objectives. 

4.211.  Finally, please permit me to thank the delegation of Canada for their responses provided to Trinidad and Tobago's questions which were posed in advance of this meeting.

ECUADOR

4.212.  En nombre de mi país, le extiendo un cordial saludo, al tiempo que reconocemos su gestión para llevar adelante los exámenes de políticas comerciales, ejercicio que aporta al principio de transparencia de la Organización, respecto de las medidas de política comercial adoptadas por los países Miembros.

4.213.  Asimismo, permítame dar la bienvenida a la delegación de Canadá encabezada por el Señor Cameron Mackey, Director de Negociaciones Comerciales, así como extender el agradecimiento de mi Delegación por los comprehensivos informes recibidos para este décimo Examen que han sido presentados tanto por el Gobierno de Canadá como por la Secretaría de la OMC.

4.214.  De igual forma, el Ecuador agradece la presentación realizada en calidad de ponente por el Representante Permanente de Suiza ante la OMC, Embajador Remigi Winzap.

4.215.  El Ecuador participa con interés en este Examen de políticas comerciales debido a que Canadá es considerado como una de las principales economías del mundo, con un PIB que creció a una tasa media anual del 2,4% durante el presente período de evaluación.

4.216.  En el informe de la Secretaría se expresa que, desde el año 2009, el Gobierno canadiense ha aplicado planes de acción a través de las cuales se identifican las medidas de política que deben adoptarse para superar posibles limitaciones, y ayudar a impulsar la economía, En este sentido, el Ecuador reconoce las acciones adoptadas en el Plan correspondiente al año 2014, cuyo objetivo fundamental fue el establecimiento de acciones destinadas a impulsar su economía y la generación de empleo.  

4.217.  De igual forma, registramos la información proporcionada tanto por el Gobierno de Canadá como por la Secretaría respecto a la evolución del comercio que se caracteriza por un aumento constante de las importaciones y exportaciones tanto de mercancías como de servicios lo que, en el 2014, permitió registrar un saldo positivo en la balanza del comercio de mercancías; y que los servicios continúan siendo la columna vertebral de la economía canadiense, toda vez que, durante el período de evaluación, representó el 70% del PIB, siendo el turismo el principal sector exportador de servicios de Canadá.

4.218.  Un tema que mi delegación desea destacar es la utilización de medidas antidumping y derechos compensatorios que, según se expresa en el informe de la Secretaría, han sido utilizados de manera acelerada por parte del Gobierno de Canadá. En ese sentido, es de interés de nuestro país conocer la fundamentación de esa política. 

4.219.  De otra parte, si bien en el informe se expresa que los compromisos contraídos por Canadá en el marco de la OMC en materia de reducción de subvenciones a la exportación se aplican a varios grupos de productos, y que han disminuido en el bienio 2011-2012, persiste la preocupación para mi país, en la medida que se continúa facilitando ayudas en forma de subvenciones e incentivos en el ámbito federal, provincial y local.

4.220.  Por otro lado, el Ecuador toma nota de lo señalado en el informe de la Secretaría sobre ciertas preocupaciones o puntos débiles que adolece el comercio de Canadá como la dependencia  de los Estados Unidos como su principal mercado. 

4.221.  En ese contexto, Canadá ha reconocido la necesidad de diversificar sus exportaciones en mercados distintos a los Estados Unidos. Para lo cual, ha buscado concertar acuerdos comerciales con miras a crear oportunidades nuevas de acceso a mercados para sus bienes de exportación.

4.222.  En tal virtud, el Ecuador reitera su interés de iniciar un proceso de negociación tendiente a establecer una relación comercial de largo plazo con Canadá que promueva, a partir de los principios de solidaridad y beneficio equitativo, el aprovechamiento de las complementariedades y fortalezas de ambas economías en armonía con los objetivos de desarrollo sostenible.

4.223.  De igual manera, la República del Ecuador desea manifestar la intención de trabajar hacia la identificación de alternativas que motiven la inversión Canadiense en el Ecuador tomando en cuenta las estrategias desarrolladas por el Canadá, sobre todo en sectores extractivos con el Plan para la Explotación Responsable de los Recursos del Canadá.

4.224.  Para concluir, deseamos anticipar nuestro agradecimiento a la delegación de Canadá por sus respuestas a las preguntas que hemos planteado sobre algunos aspectos concretos de su política comercial, lo que proveerá de insumos importantes para el fortalecimiento de las relaciones bilaterales en materia de comercio exterior.

TURKEY

4.225.  Canada is not only the 11th biggest economy in the world, but also one of the most active and leading Members of the WTO. Its valuable contributions to the works of the regular Committees and its constructive attitude within the DDA negotiations, make Canada an important stakeholder of the multilateral trading system. It would not be fair to ignore the personnel efforts and contribution of Ambassador Fried within this process.

4.226.  It is satisfactory that the Canadian economy showed important resilience to the world economic crisis and resumed a reasonable and sound economic growth rate during the review period, while reorienting down the unemployment, thanks to the positive contribution of trade among other things. We also observe with satisfaction that Canada continues to maintain a liberal and predictable trade and investment regime during the review period. Its average tariff stands at as low as 2.4% for industrial products and at a reasonable level of 22.5% for agricultural products, while 67% of its tariff lines are duty free. Despite this liberal trading regime, Canada maintains a relatively high protection rate of 20% for some bedding, clothing and footwear products, which are mostly imported from developing countries.

4.227.  On the other hand, Canada reviewed its General Preferential Tariff regime for imports from developing countries and graduated 72 countries, including Turkey, from its GPT regime, as of 1 January 2015. It is unclear what is the basis for graduation from the GPT regime since the GDP per capita of the graduated countries varies from US$1.500 (India) to US$50.000 (Netherlands). While it is reasonable to graduate high income countries from the GPT regime, graduating relatively low level countries is not in conformity with the "development" perspective of the trade policy priorities set by Canada and recited by the Secretariat report. I also believe that removing all those 72 countries from the GPT regime would not help the efforts of Canada for diversifying its trading partners and would strengthen its commercial dependence to the United States.

4.228.  Turkey and Canada are both member of the G20 and our bilateral trade with Canada has a relatively balanced structure and it increased nearly 50% during the review period. However, I strongly believe that our US$2 billion bilateral trade volume does not represent the real potential and there is still a big room to develop it in a balanced manner.

THAILAND

4.229.  Canada is currently ranked as Thailand's 32nd largest trading partner. In 2014, the value of bilateral trade between the two countries stood at US$3.28 billion, a decline of 2.86% from the previous year. Canada is also ranked as our 29^th export destination and 35^th import source. Conversely, Thailand is currently ranked as Canada's 21^st trading partner, 31^st destination, and 17^th source of import.

4.230.  Despite the decline in bilateral trade, Thailand and Canada have been working actively to strengthen our trade and investment relations. Indeed, the two countries have engaged in numerous discussions regarding the possibility of the two sides, I am hopeful that we could launch a negotiation for the agreement in the near future.

4.231.  In the multilateral trading system, Canada has certainly been an active contributor to the system. In this regard, Thailand would like to commend Canada for its dedication to fostering a transparent and trade facilitative environment, having undertaken a tariff simplification process to harmonize duties, and implemented initiatives to unilaterally liberalize trade in several sectors during the review period. Moreover, great efforts have also been made to improve its customs procedures through numerous programs such as the Customs Self-Assessment, and the Free and Secure Trade Programs.

4.232.  Thailand has always appreciated Canada's thoughtful and informed involvement in various negotiations forums, and is certain that Canada can play a key role in providing the spark needed to move the WTO negotiations forward. In this connection, we do look forward to practical and constructive negotiating work in the WTO to achieve a meaningful work programme and the successful tenth Ministerial Conference this year.

4.233.  The TPR reports indicated that both Canada's import and export numbers have steadily increased over the past few years. Which I believe is the result of the country's proactive approach towards free trade agreements, in addition to its determination towards the enhancement of trade environment. Thailand certainly supports these constructive efforts as they will without doubt contribute positively to multilateral trading system.

4.234.  In this review, Thailand has submitted several questions to Canada, covering the policies and measures of our interests regarding among other things, Canada's permit requirements of textiles, government procurement, competition policy, and investment regime. We are looking forward to Canada's responses with anticipation, and will certainly study them in detail with great interest.

4.235.  In conclusion, Thailand would like to express its appreciation to the Canada delegation for today's presentation. We are thankful to Canada and H.E. Ambassador Jonathan T. Fried for the close cooperation with Canada at every level, including that between our Geneva-based delegations.

COSTA RICA

4.236.  Costa Rica se complace en participar en este Examen de políticas comerciales. Canadá es un socio con el que compartimos muchos puntos de vista en la OMC como miembros del grupo de Cairns y del grupo de Friends of the System, siendo un país comprometido con el sistema multilateral de comercio, así como con la conclusión exitosa y ambiciosa de la Ronda Doha. También compartimos posiciones muy cercanas sobre la Facilitación de Comercio, las Indicaciones Geográficas y el papel de las Tecnologías de la Información como facilitador del desarrollo, solo por mencionar algunos temas. 

4.237.  El intercambio comercial entre Costa Rica y Canadá alcanzó 258 millones de dólares EE.UU. en 2014 y, si bien es modesto, éste se recuperó a las cifras previas a la crisis de 2009 y prácticamente duplicó las cifras de 2002, fecha en que entró en vigor el Tratado de Libre Comercio entre ambos países. Nuestros países, además, tienen en vigor un Tratado para la promoción recíproca de las inversiones desde 1999, lo que ha permitido que Canadá se sitúe como un importante origen de la inversión extranjera directa en nuestro país.

4.238.  Tanto el informe de la Secretaría como el del Gobierno dejan constancia de la estabilidad de la economía canadiense y su recuperación de la crisis financiera mundial. Costa Rica reconoce los esfuerzos de Canadá por simplificar sus aranceles, incluyendo la eliminación de los aranceles estorbo inferiores al 5%. También resaltamos la importancia que su Gobierno ha dado al sector de las tecnologías ambientales y sostenibles a través del Plan de Acción para los Mercados Mundiales; así como a las negociaciones sobre los bienes ambientales, temas en los que Costa Rica posee un gran interés.

MONTENEGRO

4.239.  Canada ranks as one of the top investors in Montenegro's tourist industry. Its major investment project "Porto Montenegro" aims at developing the biggest marina in the Eastern Adriatic and has already become a brand regularly featured in all leading Travel & Tourism reports. With €256 million gross investments from 2007 through 2014 and the plan for additional €107 million in the course of 2015, this project has strengthened competiveness of the overall tourism as Montenegro's most important services export, positioning the entire Tivat Bay for long term economic growth. In addition, Canadian companies have successfully participated in modernisation of the safe and secure Montenegro's costal management system put in place in 2013 in support of the international maritime requirements. Montenegro is ready to extend economic cooperation with Canada particularly in the area of infrastructure, transportation and energy that could be further facilitated by the existing Bilateral Trade Agreement and the Agreement on strategic cooperation with the Canadian Commercial Corporation signed in 2012.

4.240.  My delegation would also like to use this opportunity to recognize and appreciate Canada's valuable contribution to the number of development projects granted to Montenegro in conjunction with the international organizations as UNICEF, World Vision and Microcredit.

4.241.  As a country with Government that values openness to international trade, Montenegro welcomes the Government of Canada's continued contribution to the multilateral trading system. We commend Canada for its commitment to deliver strong economic growth, successfully manage government borrowing and reduce unemployment, while also ensuring increases in international trade. Although Montenegro notes that Canadian exports suffered during the global economic crisis, Montenegro is pleased to observe that exports have now returned to their pre-global financial crisis levels.

4.242.  In agreement with the Secretariat, Montenegro also notes the Government of Canada's continued commitment to the advancement of international trade through the negotiation and implementation of free trade agreements. In this regard, Montenegro wishes to congratulate the Government of Canada on securing the entry into force of five new FTAs since its last Trade Policy Review; as well as its signing of an FTA with the European Union in 2014. Montenegro fully agrees with the value that FTAs can serve in increasing international trade and commerce, wishing every success to the parties to these agreements.

4.243.  Montenegro notes with interest the Government of Canada's Global Markets Action Plan ("GMAP"). Montenegro agrees with the importance that the Government of Canada attaches to developing policy initiatives capable of advancing commercial interests in established markets, as well as ensuring that businesses are able to successfully engage with priority emerging markets. In this regard, Montenegro wishes to commend the Government of Canada for the scale of its GMAP project. In such a competitive environment as we live, seeking to advance Canadian interests in 80 countries across the World is a vitally important aim.

4.244.  Finally, Montenegro will continue to follow with interest the implementation of Canada's federal tourism strategy and its key achievements, in particular the best practices of cooperation with the private sector, tour operators and travel agents trough the new marketing initiatives introduced by this strategy.

4.245.  Montenegro is looking forward to continuing constructive engagement with the delegation of Canada in Geneva lead by distinguished Ambassador Fried whose contribution to the work of WTO has been remarkable.

URUGUAY

4.246.  Antes que nada nos gustaría destacar la capacidad de Canadá de negociar un alto número de acuerdos de comercio en todo el mundo. Parece un desafío al determinismo geográfico que Canadá enfrenta y que se ha mencionado en varias intervenciones. Al mismo tiempo, Canadá desarrolla un importante rol en la OMC y en las negociaciones de la Ronda de Doha.

4.247.  Uruguay y Canadá tienen un excelente nivel de relación tanto en el plano político como económico-comercial, cultural y de cooperación. Compartimos valores e intereses, como Miembros de múltiples organizaciones hemisféricas e internacionales, con una activa participación en foros multilaterales e importantes contribuciones a las Misiones de Paz de las Naciones Unidas, lo que afirma esos intereses comunes en cuanto a la seguridad hemisférica y a las cuestiones de desarrollo.

4.248.  En relación a la cooperación, uno de los temas centrales que integra nuestra agenda bilateral es la cooperación en el sector de minería: hemos dialogado sobre nuevas vías de cooperación, la captación de inversiones y modelos de negocios.

4.249.  En lo que hace referencia a la relación comercial, también compartimos intereses: ambos países integramos el Grupo de Cairns con el objetivo común de reformar las reglas del comercio agrícola. Uruguay desea aprovechar la oportunidad para agradecer el compromiso de Canadá con el Grupo, reflejado entre cosas en la elaboración de numerosos trabajos técnicos de alta calidad.

4.250.  El comercio bilateral entre Uruguay y Canadá se ha afianzado con el paso de los años: entre 2010 y 2014 creció más del 200%. En el 2014, Uruguay exportó más de 122 millones de dólares EE.UU. lo que hace de Canadá un socio importante para Uruguay. Nuestro país exporta principalmente carne bovina congelada y los productos que siguen en importancia son: cítricos, lana, pescados, y arándanos.

4.251.  En lo relativo a carne vacuna, principal exportación de Uruguay a Canadá, el acceso se limita a apenas un monto de 11.844 toneladas en régimen NMF que son parte de una cuota de un total de 76.404 toneladas. En el pasado, esta limitante en el acceso se veía parcialmente flexibilizada por demandas de la industria por "suplementary import permits". Lamentablemente, hace ya casi 10 años que las autoridades canadienses no otorgan tales permisos.

4.252.  Otro importante conjunto de productos de exportación del Uruguay es el lácteo (quesos, mantequilla, leche en polvo) que enfrentan en Canadá aranceles de hasta 238% quizás entre los más altos aplicados por un Miembro de la OMC.

4.253.  Uruguay está interesado en exportar a Canadá carne ovina con hueso. Se han mantenido reuniones bilaterales con Canadá sobre el tema en el marco de la 82 conferencia de la OIE y, en agosto del 2014, la Embajada del Uruguay presentó una nota a la Dirección de Seguridad Alimentaria de la Agencia canadiense de Inspección Alimentaria, en la que se comunicó que una misión de la OIE visitó Uruguay e indicó que el proyecto nacional cumple con las normas internacionales, incluidas las de bienestar animal. Uruguay no solo cumple con la normativa OIE, sino también el Código Sanitario áralos animales terrestres y mantiene el estatus de país libre de fiebre aftosa con vacunación desde el 2003 y, además, Uruguay no vacuna contra aftosa al ganado ovino desde 1988.

4.254.  Las importaciones originarias de Canadá tuvieron un comportamiento volátil en el período de examen. Los productos provenientes de Canadá tienen mayor valor agregado que las exportaciones uruguayas. Los principales productos son abonos minerales o químicos potásicos, maquinarias para cosechar y para fabricar caucho o plástico y cajas de fundición.

4.255.  Existen muchas oportunidades de comercio entre ambos países, para nuestro país las mayores oportunidades se encuentran en productos que contienen un mayor valor agregado industrial que el habitual, como preparados y conservados de carne bovina y ovina, vinos, sustancias y productos químicos, madera y productos derivados o productos textiles y prendas de vestir.

4.256.  En cuanto al rubro inversiones, tenemos un acuerdo para la promoción y protección de inversiones extranjeras. Existe un número importante de empresas canadienses que han invertido en Uruguay en manufacturas como en servicios tales como servicios financieros, y se espera que el número aumente luego del acuerdo de intercambio de información tributaria en vigencia desde el 2014.

4.257.  Finalmente, quisiera destacar que Canadá juega un importante papel en las negociaciones multilaterales tanto por su dimensión económica como por su capacidad de propuesta y ambos países coinciden en el interés en la conclusión exitosa de la Ronda de Doha para el Desarrollo, de manera que permita el fortalecimiento del sistema multilateral de comercio.

MAURITIUS

4.258.  At the outset, my delegation wishes to commend the crucial role played by Canada at the WTO. Mauritius believes in a fair, inclusive and multilateral approach to the negotiations with a view to reaching a balanced outcome but more importantly the symbiotic integration of nations in the increasingly interconnected world.

4.259.  We wish to laud Canada for the resilience of its economy in the face of the economic crisis, the brunt of which we have all suffered for example through a shrink in global demand. We intend to tap Canada's experience through its Global Markets Action Plan. Its trade promotion and trade policy strategy aimed at supporting the commercial success of its companies, the retooling of government's trade efforts and economic diplomacy including outreach to emerging markets.

4.260.  Mauritius would wish to explore a key aspect of the Global Markets Action Plan - the International Education Strategy aimed at attracting international researchers and students to Canada and promoting research links between Canadian and foreign educational institutions. Mauritius has a circular migration project with Canada, which has been operating with great success. 

4.261.  At the Trade Policy Review of Mauritius held last year, the delegation of Canada offered to explore avenues of cooperation in the field of the ocean economy. We are pleased to announce that the new Government of Mauritius has a full-fledged Ministry in charge of the portfolio of Ocean economy and we look forward to meaningful cooperation with the relevant Canadian authorities to delineate the areas of engagement.

4.262.  My delegation wishes to express appreciation of the Canada's recognition of the specific challenges faced by SVEs like Mauritius and the necessity that the needs, interests, concerns of SVEs are duly recognized and translated into the Work Programme for the SVE's.

4.263.  Both Canada and Mauritius attach the same importance to trade as a major driver of growth. Mauritius strongly believes in greater intra-regional trade and improved trade facilitation cooperation and coordination to enable further trade flows.

4.264.  My delegation looks forward to working closely with the delegation of Canada as we engage in an important year at the WTO with a view to yielding concrete deliverables for the Nairobi Ministerial Meeting.

BÉNIN

4.265.  L'examen des indicateurs et performances économiques fournies par le Canada dans le rapport du Gouvernement fait ressortir que le Canada a réussi à juguler pendant la période que couvre le présent examen les effets de la crise économique observée sur les marchés mondiaux. Depuis 2011, date du dernier examen, le Canada a enregistré une amélioration de son Produit Intérieur Brut (PIB) et de ses échanges commerciaux tout en menant une politique efficiente de création d'emplois qui a permis de faire reculer le taux de chômage.

4.266.  S'agissant des indicateurs macroéconomiques, ils font ressortir que la croissance réelle de l'économie a atteint 2,5% en 2014. Une embellie se note également au niveau des exportations canadiennes qui ont résorbé le ralentissement enregistré pendant la période de récession et enregistré une progression de 9,9% par rapport à leur niveau d'avant la récession.

4.267.  Ces résultats sont appuyés par une stratégie prospective qui vise à rétablir les équilibres budgétaires d'ici à 2015-2016.

4.268.  Les performances ainsi enregistrées sont la résultante de mesures économiques, budgétaires et financières efficientes qui ont permis de transcender les difficultés et de traverser la crise économique et financière mondiale.

4.269.  La délégation du Bénin se réjouit, en outre, de noter au titre du rapport du Gouvernement du Canada que "l'Organisation mondiale du commerce (OMC) représente l'un des grands piliers de la politique commerciale du Canada et un cadre privilégié pour dialoguer avec ses partenaires commerciaux".

4.270.  Elle salue les efforts déployés par le Canada pour faciliter l'aboutissement heureux des négociations commerciales du Cycle de Doha.

4.271.  Á cet effet, elle se félicite du soutien apporté par le Canada au respect de la dimension "développement" du Programme de Doha pour le développement (PDD) puisque la Partie canadienne réitère l'importance d'accorder une attention spéciale aux besoins des pays en développement, notamment des Pays les moins avancés (PMA).

4.272.  Tout en félicitant le Canada pour le soutien financier apporté aux PMA en vue de faciliter leur meilleure implication dans le Système commercial multilatéral, la délégation du Bénin voudrait former le vœu que cet appui se poursuive, s'intensifie et se diversifie, surtout avec:

·             les échéances majeures qui sont annoncées, notamment: i) le cinquième examen global de l'Aide pour le commerce; ii) le lancement de la nouvelle phase du Cadre intégré renforcé; iii) les Objectifs du développement durable post-2015, d'une part; et

·             les défis déjà identifiés et qui attendent d'être relevés dans le cadre de la mise en œuvre du Programme d'Istanbul en faveur des PMA, d'autre part.

4.273.  Dans le cadre spécifique de l'OMC, il serait vivement apprécié qu'une attention particulière et une considération bienveillante et constructive soient accordées aux préoccupations des PMA au nombre desquelles: i) l'accès aux marchés en franchise de droits et hors contingent pour les produits provenant des PMA; ii) les règles d'origine; iii) l'opérationnalisation effective de la dérogation dans le domaine des services à travers des mesures qui ont un intérêt et une valeur commerciale avérés pour les PMA; et iv) la question vitale du coton, etc.

4.274.  Ma délégation prend note des nombreuses initiatives prises par le Canada au titre de partenariats bilatéraux mutuellement avantageux au nombre desquelles la conclusion d'Accords sur la promotion et la protection des investissements étrangers, y compris avec le Bénin.

4.275.  Elle prend également note des nombreux accords plurilatéraux conclus ou en cours de finalisation et invite la partie canadienne à veiller à ce que ces accords complètent utilement les actions menées dans le cadre multilatéral à l'OMC, plutôt que de s'y substituer.

4.276.  La délégation du Bénin reste convaincue que le Canada, comme par le passé, continuera à promouvoir le multilatéralisme et à soutenir les activités en cours de négociation du Cycle de Doha en observant la prise en compte utile et bénéfique de la dimension développement.

PANAMÁ

4.277.  Panamá desea felicitar a Canadá por el desempeño económico mostrado durante el período de examen. La economía canadiense ha podido enfrentar la crisis financiera implementando políticas públicas que han permitido un crecimiento económico a través del aumento de las importaciones y exportaciones de mercancías y servicios, programas encaminados a la diversificación de sus productos, promoción del comercio y la inversión, medidas de estímulo monetario y fiscal, y la ampliación de sus mercados a través de la celebración de Acuerdos Comerciales Regionales, entre estos el suscrito con Panamá el 14 de mayo de 2010 y que entró en vigor el 1 de abril de 2013.

4.278.  Panamá y Canadá mantienen sólidas relaciones diplomáticas y comerciales las cuales se sustentan a través de una decena de convenios vigentes que abarcan temas comerciales, laborales, fiscales, así como lo referente a intercambio de información. Canadá representa el segundo socio comercial de Panamá, y en el 2013, año de entrada en vigencia del Tratado, el 14,8% de nuestras importaciones de bienes se realizaron al amparo del TLC, aunque no tuvo relevancia en las exportaciones.

4.279.  En cuanto al impacto en la Zona Libre de Colón, las reexportaciones e importaciones de Panamá en el comercio con Canadá totalizaron B/. 12.6 millones y B/. 13.3 millones, respectivamente en el 2013. Las reexportaciones de dicha Zona a Canadá aumentaron 23,6% en el 2013, con respecto al año anterior y las importaciones disminuyeron 1,4%.

4.280.  La posición de la inversión extranjera directa de Canadá en Panamá es de B/.1,260 millones en el 2013 (1,4% más que el año anterior). La inversión canadiense en el año 2013 representó el 4% del total de inversión extranjera directa en Panamá.

4.281.  El flujo de carga larga total a través del Canal de Panamá por Canadá en el 2014 fue de 10,303,448 toneladas largas (3,36% más que el año anterior), representando el puesto número 10 en la jerarquización de países que utilizan el Canal.

4.282.  Para finalizar, deseamos felicitar a Canadá por su activa participación en el sistema de comercio multilateral, su dedicación al proceso de negociación y adopción del Acuerdo de facilitación del comercio, y su destacado rol en las negociaciones comerciales que se llevan a cabo en el marco de esta Organización.

KINGDOM OF SAUDI ARABIA

4.283.  The Trade Policy Review reports prepared by Canada and the Secretariat reveal that the Canadian economy remains sound, resilient and diversified. GDP growth has averaged 2.4% annually during the review period 2011-14. Canada's strong macroeconomic fundamentals and its continuous efforts to improve the productivity and the competitiveness of its economy, including through trade and investment liberalization enabled it to manage a prompt recovery from external shocks and financial crisis.

4.284.  Building upon the Economic Action Plans (EAP) of 2009 that focused on boosting economic growth and performance and creating jobs, the Canadian Government continued to implement EAP during the review period. Through these plans, the Government focused on policy actions to be undertaken to strengthen the immigration system; create new infrastructure plan; invest in research and innovation; provide support to manufacturers and businesses; improve trade and economic aspects such as tax relief and cuts; eliminate tariffs on machinery and equipment and on industrial manufacturing inputs; enhance the Free Trade Zone policies and programmes; modernize Canada's General Preferential Tariff regime; expand Export Development Canada's role in the credit market; develop resources and enhance social support.

4.285.  Canada is also to be commended for its Global Markets Action Plan (GMAP) in 2013 which targeted setting priorities and objectives for trade initiatives and trade promotion activities.

4.286.  We also appreciate Canada's firm commitment to a rules-based and a transparent multilateral trading system, as well as to help developing countries and least developed countries (LDCs) addressing their concerns and difficulties. Its contribution to Aid for Trade Program, Monitoring Mechanism for Special and Differential Treatment and the decisions related to market access for least developed countries (LDCs) are clear proofs to this effect.

4.287.  Canada and Saudi Arabia enjoy a friendly and substantive relationship, underpinned by commercial ties and supported by shared membership in the G20. Saudi Arabia is currently Canada's second largest export market in the Middle East, with two-way merchandise trade reaching US$3.6 billion in 2011. Saudi Arabia primarily exports crude petroleum and petrochemicals to Canada. Canada exports motor vehicles, machinery and equipment, ores, slag, ash, paper, electrical equipment to Saudi Arabia.

4.288.  More than 16,000 Saudi students are now studying in Canada, making Saudi Arabia Canada's fourth largest source of international students. Also, 4,000 Saudi doctors have received medical training in Canada.

4.289.  There is significant potential for economic ties to grow between the two countries especially in agriculture, transportation, water, power, urban development and other infrastructure projects. The Canada-Saudi Arabia Joint Economic Commission (JEC) was established to support the promotion of bilateral business ties and help expand and diversify trade between the two countries.

4.290.  The Kingdom of Saudi Arabia believes that the multilateral trading system is a key element for global development. Canada has a long standing tradition of constructive and forward-looking participation in the WTO. Consequently, we welcome Canada's active role in the multilateral context to secure the conclusion of the Doha Development Agenda and allow the WTO to address new challenges.

HONDURAS

4.291.  En lo que concierne al informe presentado, notamos con gran interés que el Canadá se ha podido recuperar satisfactoriamente de la crisis financiera y durante el período de 2011 al 2014, el PIB ha crecido a una tasa media anual del 2,4%, evidencia que la economía canadiense ha mostrado generalmente capacidad de resistencia ante las perturbaciones externas.

4.292.  Notamos que el Plan de Acción Económica de 2014 centró su atención en equilibrar el presupuesto, apoyar la generación de empleo y el crecimiento, explotar de forma responsable los recursos y ayudar a las familias y las comunidades.

4.293.  Resaltamos la puesta en vigencia del Plan de Acción sobre los Mercados Mundiales mediante el cual se establecen las prioridades y objetivos de las iniciativas comerciales y de las actividades de promoción del comercio, y la inversión otorgando prioridad a 22 sectores en los que el Canadá ha identificado con una sólida ventaja competitiva.

4.294.  Del informe se desprende que las autoridades señalan que el sector agrícola y agroalimentario del Canadá sigue siendo un sector fundamental de la economía, y en 2012 representó el 6,2% del PIB. El Canadá sigue siendo  un importante comerciante de productos agrícolas, sobre todo de cultivos extensivos como el trigo, la cebada y las semillas oleaginosas.

4.295.  En cuanto al sector de los servicios, en general siguen siendo la columna vertebral de la economía canadiense y durante el período 2011-2014, representaron el 70% del PIB. Se destaca que el sector turístico es un sector terciario importante que representa aproximadamente el 2% del PIB y el 1,4% de la inversión total en el Canadá.

4.296.  En el año 2011, Canadá elaboró una Estrategia Federal de Turismo para adoptar un enfoque del sector del turismo a nivel de todo el Gobierno y mediante la Política Cielo Azul, apoya la Estrategia Federal de Turismo a través de acuerdos de transporte aéreo nuevos o ampliados o disposiciones administrativas que abarcan más de 85 países incluido nuestro país.

4.297.  En lo que respecta a nuestro comercio bilateral, a partir del 1º de octubre de 2014, entró en vigencia el Acuerdo de Libre Comercio entre Honduras y Canadá, el cual prevé la eliminación gradual de los aranceles y los contingentes arancelarios para 2028. Determinados productos agropecuarios seguirán estando sujetos a protección arancelaria tanto en el Canadá como en Honduras.

4.298.  En ese sentido, nuestro comercio bilateral ha presentado un incremento de alrededor del 4% con respecto al año 2013, donde importamos aproximadamente 44,000,000 de dólares EE.UU. en abonos, papel y cartón, sellos de correo, láminas de plástico, medicamentos para uso humano, máquinas para trabajar textiles, manufacturas de hierro, entre otros.

4.299.  Exportamos alrededor de 235,000,000 dólares EE.UU. en productos del sector agrícola y del sector acuícola desatancando los bananos, piñas, café, filetes de tilapia, camarones, aceite de palma, azúcar de caña, cigarros y algunos productos del sector industrial tales como cementos, cordeles, colofonias, carbón y desperdicios de aluminio.

4.300.  La inversión extranjera directa de Canadá es prominente en Honduras en la fabricación de prendas de vestir y la minería. Honduras se está convirtiendo en un destino cada vez más importante para inversionistas y turistas canadienses. Un total de 103,100 canadienses viajaron a Honduras en 2014.

4.301.  Honduras es uno de los países en donde Canadá concentra la cooperación internacional y en donde se enfoca el más extenso programa bilateral en Centroamérica. En la última década, un número creciente de trabajadores hondureños han ingresado a Canadá bajo el Programa de Trabajadores Extranjeros Temporales; en el 2014, más de 278 personas fueron a trabajar a Canadá.

4.302.  Nuestro país agradece el apoyo del Canadá a los programas en temas tales como lactancia, maternidad, empoderamiento a las madres solteras, especialmente en los temas de educación y seguridad alimentaria así como los distintos programas y proyectos auspiciados por el Canadá incluido el de fortalecimiento de las capacidades institucionales para la prevención del crimen en Centroamérica a través del Observatorio e Índice de Seguridad Democrática del Sistema de Integración Centroamericano.

4.303.  Finalmente, permítame reitérale nuestro reconocimiento por esta nueva oportunidad de intercambiar y examinar las políticas y prácticas comerciales de Canadá, al mismo tiempo desear éxito a las autoridades en la presentación de su mecanismo de Examen de políticas comerciales.

BARBADOS

4.304.  Barbados is pleased to take part in this Trade Policy Review. Canada's performance since the 2008 global crisis was due primarily to the timeliness of the application of effective macroeconomic policies and the strength of its banking sector.

4.305.  Canada's rapid emergence from the crisis therefore demonstrates the country's ability to face the global economic downturn and its resilience to external shocks.

4.306.  The Secretariat report has characterized Canada as a country which is rich in natural resources and had diversified its economy then by resulting in global rankings of 13th largest merchandise trade exporter and 11^th largest import market for merchandise bids.

4.307.  Although imports and exports trade has increased, imports continue to increase slightly faster than exports thereby contributing to the country's current account balance. GDP growth over the review period 2001-14 averaged 2.4%. Growth in 2011 was 3% before it dropped to 2% in 2013. We therefore note that the outlook for Canada remains positive as GDP growth is expected to reach 2.3% in 2015 and then decrease to 2.1% in 2016. It is also anticipated that the country will remain at an inflation rate of about 2% in line with the targets set by the Central Bank.

4.308.  We also commend the Government of Canada on its initiative to assist in bolstering its economy, foster job creation and promote prosperity towards its various economic action plans. In this regard, we note the implementation of its global market action plan which seeks to prioritize market and increase export market penetration through defined pro-trade and investment goals and objectives in Canada's pursuit of an ambitious trade agenda driven by an increasing trade employment and economic growth. In particular, my delegation notes the efforts of Canada initiated in 2014 to bring a balance in its budget, support employment and growth, develop the resources particularly as it relates to the environment, and support families and communities. My delegation wishes Canada well in the implementation of these objectives.

4.309.  We note that Canada continues its commitments to the multilateral trading system through its participation in various aspects of the WTO works including through its active contributions to the regular work of the various WTO Committees and to works defined in the post-Bali work programme on the remaining issues of the Doha Development Agenda.

4.310.  Barbados places particular emphasis on realizing real and tangible development dividends for developing countries in concluding the DDA. We therefore look forward to the continued interaction with Canada in the realization of these goals in the deliberation of the post-Bali work programme and a successful conclusion of the Doha Development Round and, more generally, in the day-to-day work of the WTO.

4.311.  Barbados and Canada enjoy a long, cordial trade and political relationship. Barbados and Canada signed a double taxation treaty in 1980 and a bilateral investment treaty in 1996. Canada has over the years proven to be an important source market for inward foreign direct investment to Barbados.

4.312.  Canada is an important partner for Barbados in the area of trade and services, in particular financial services, insurance and tourism. Although the value of two-way trade in services between Barbados and Canada has increased over the years, the balance is significantly in favour of Canada.

4.313.  With regard to Barbados as a main stay, Canada remains an important source market for Barbados tourism and is the third largest individual contributor to this sector between 2007 and 2013.

4.314.  Barbados and its CARICOM counterparts have been beneficiaries of unilateral and non‑reciprocal duty free access to the Canadian market under CARIBCAN. CARIBCAN was implemented since 1996 and allows for most merchandise products originating in Barbados access to the Canadian market. In this regard, Barbados welcomes the decision by Canada to seek a new waiver in the WTO and looks forward to its approval which would ensure that trade between CARICOM's small vulnerable economies and Canada will continue.

PAKISTAN

4.315.  During the period under review, the global financial crisis also threatened the Canadian economy; however, owing to the adaptable and WTO compliant policies and reforms, Canada steered well - thereby shielding its economic growth from the externalities generated before and during the crisis. Not only Canada deserves all out praise for that, but also the constructive measures undertaken with a view to eliminate the fiscal deficit by 2015-16 – which indeed speak volumes about the laudable steps, sending strong signals of economic recovery.

4.316.  We commend the exceptional set of actions implemented by the Canadian Government such as the EAP (Economic Action Plans); the Global Commerce Strategy and the GMAP (global Markets Action Plan) – undertaken to promote its Growth and Investments activities.

4.317.  We note and applaud Canada's autonomous liberalization initiatives in important sectors like: machinery and equipment, baby clothes, sports equipment and offshore drilling units. 

4.318.  Canada is a key trading partner of Pakistan, as well as a big investor in several critical sectors of our economy. And we wish to register our sincere appreciation to such an autonomous trade regime being pursued by Canada; sectors like textile and clothing as well as sports equipment are extremely crucial for Pakistan's exports, and we welcome these initiatives that boost bilateral trade.

4.319.  Pakistan and Canada are presently working on a bilateral investment treaty, and aim to finalize it in the very near future.

4.320.  We, in particular, note the able leadership and drive of H.E Ambassador Jonathan Fried and his Geneva based team; we have always found them very supportive of the reform efforts, tirelessly to finalize the post-Bali work programme.

JAMAICA

4.321.  The National and Secretariat reports prepared for Canada's tenth Trade Policy Review show that Canada has successfully weathered the storm of the recent global financial and economic recession, primarily through an adherence to strong monetary and fiscal policies. Given Canada's important note in Global Trade and Economic Affairs, this outcome is quite significant and noteworthy.

4.322.  Canada's longstanding commitment to free trade is recognized. We take note of the efforts to further diversify its economy which, while benefiting from significant natural resource and mineral wealth is already strongly services-driven. We are struck by Canada's ambitious pursuit of an array of Free Trade Agreements in recent years. From the perspective of a small developing country like Jamaica, we appreciate the effort made to secure these agreements in the challenging bilateral and plurilateral trade negotiating environment.

4.323.  Also noteworthy were the significant number of reforms, including legislative reforms that were undertaken since the last Trade Policy Review in 2011. These include significant reforms in the areas of intellectual property and food health.

4.324.  Canada and Jamaica share strong historical and geographical ties, with both countries belonging to the Commonwealth and to the Organisation of American States. Exchanges and contacts between our Governments and our peoples have contributed to the enrichment and development of the economy and society of both nations. We have been longstanding trading partners; particularly in the areas of mineral ores, fish products, alcoholic beverages (rum) and financial services. 

4.325.  Indeed, it is for this reason that we have noted with keen interest, the number of advanced and subsequent questions posed to Canada on the matter of the provincial regulation of the sale of alcoholic beverages. 

4.326.  Together with members of the Caribbean Community, we have undertaken seven rounds of negotiations for a CARICOM-Canada Free Trade Agreement. Our Negotiations are now "under review".

4.327.  Jamaica appreciates the decision by the Government of Canada to submit a new waiver request to the WTO for the CARIBCAN arrangement, which will ensure that existing trade with Canada continues to take place without disruption. Jamaica continues to derive significant benefits from access to the Canadian market, which contributes to generating jobs, foreign exchange and investment. Consequently, Canada continues to be an important trading partner for Jamaica, and remains our second largest market for the trade in goods. We, anticipate that in July, the waiver will be adopted allowing trade under this beneficial arrangement to continue.

4.328.  Regarding the trade in services, Canada has been a significant source market for tourist arrivals to Jamaica, second only to the USA, and accounts for approximately 20% of all stop-over visitor arrivals in 2012 and 2013, exhibiting a consistent upward trend since 2009. Canada also ranks second behind the USA by virtue of tourist expenditure receipts. 

4.329.  Canada is also the main exporter of financial services to Jamaica, with our two largest banks (the Bank of Nova Scotia and the National Commercial Bank) being owned by Canadian principals. In addition to tourism and financial services, Canada is also a major supplier of travel and transportation-related services.

4.330.  Jamaica is, therefore, of the view that services will remain a very important area of trade between both countries for the foreseeable future and, thus, strongly encourages the further development of bilateral trade in this important sector.

4.331.  Canada is an important development partner for Jamaica at both the national and regional levels. Jamaica is, therefore, appreciative of the support that the Government of Canada has given over the years under various initiatives, including the Caribbean Regional Development Program and through bilateral programmes. We look forward to strengthening our bilateral partnership with Canada in these and other areas in the future.

4.332.  Jamaica commends the Government of Canada for its strong commitment to multilateral trade and to a balanced, rules-based international trading system; and for its leadership role in trying to find solutions for an outcome in the Doha Development Round of negotiations.

4.333.  We take note of the multi-year financial contribution for trade facilitation for the benefit of developing countries and also, of the Canadian Government's decision to extend, for a further ten years, two key regimes that will greatly benefit developing country trading partners; namely, the unilateral tariff reference for LDCs (or LDCT) and the General Preferential Tariff (GPT) – its GSP regime. 

4.334.  In the context of the post-Bali agenda and the crafting of a DDA work programme, the preservation of special and differential treatment and flexibilities for SVEs is fundamental to their prospects for enhanced trade and economic development, and a clear improvement in the quality of life for the populations of SVEs. Jamaica is, therefore, appreciative of the reference to Small Vulnerable Economies (SVEs) that appears in Canada's National Report and of Canada's stated commitment to collaborating with other WTO Members to implement the SVEs Work Programme.

4.335.  The Jamaican delegation, in this Forum, thanks Ambassador John Fried for his stewardship of the General Council during 2014 and his, and the delegation of Canada's, continued contribution to the work of the Organization at all levels.

DOMINICA ON BEHALF OF OECS

4.336.  I make this brief statement on behalf of the OECS and in so doing, welcome the delegation of Canada from Ottawa headed by Mr Cameron MacKay and also acknowledge the delegation based in Geneva headed by H.E. Ambassador Jonathan Fried.

4.337.  We thank the Secretariat and Canada for their reports and Ambassador Winzap for his contributions this morning. As others before me have noted and as indicated in the Secretariat report, the economy of Canada has demonstrated a high level of robustness, stability and resilience during recent global economic downturn and volatility. This, as the reports indicate, is in part due to the strong and prudent macroeconomic policies implemented by the Government.

4.338.  We note and commend Canada for the developments and reforms that have taken place since the last Trade Policy Review.

4.339.  Canada and the member States of the OECS share a long and cordial relationship that encompasses trade, investment, cultural, education, social and political spheres. Canada is the regions 5th most important trading partner. Canada is also a significant source of investment including in the financial sector.

4.340.  Canada and the OECS share a strong commitment to the WTO and the MTS. We also share a desire for a successful conclusion of the DDA, one that is balanced and addresses the interests of all Members. In that regard, we would like to commend Canada for the leadership role that it has played in the various aspects of the work of the WTO including in the TNC and its subsidiary bodies in the DDA negotiations and in the General Council and its subsidiary bodies in the regular work.

4.341.  We particularly wish to note and commend Canada for its support and work in the area of development in the WTO including its stated commitment to the principle of special and differential treatment, its participation in and contribution to Aid for Trade, and its recognition of the need to address the concerns of small vulnerable economies and its efforts in that regard.

4.342.  The OECS member States have been and continue to benefit from Canada's development assistance both at the national and regional level through CIDA including support to strengthen the institutional capacity of the OECS and the development of a trade policy framework at the OECS. The Governments of the OECS remain appreciative of the Government of Canada for these supports and look forward to continued development cooperation in the future.

4.343.  The OECS members are also beneficiaries of the unilateral CARIBCAN initiative and we wish to thank Canada for the recent application for a new WTO waiver in the CTG which we hope will be approved at the next meeting of the CTG. 

5  REPLIES BY THE REPRESENTATIVE OF canada AND ADDITIONAL COMMENTS

5.1.  Mes collègues et moi souhaitons remercier toutes les délégations présentes aujourd'hui pour la journée de clôture du dixième Examen des politiques commerciales du Canada par l'OMC.

5.2.  As I mentioned in my opening statement at the start of our review, Canada considers the TPR process to be a key pillar of the WTO system. The statements from the 40 Members who intervened on Monday, and the well over 600 written questions we have now received are a valuable opportunity for the Canadian delegation to hear directly from each Member your perspective on our trade policies. After we return to Ottawa we will continue to reflect on your suggestions on how to make the Canadian economy even more open and competitive.

5.3.  Let me say at the outset today how pleased the Canadian delegation was to hear such support for Canada's trade and economic framework. Members overwhelmingly noted Canada's strong economic performance following the global economic crisis, the success of our annual "Economic Action Plan", Canada's achievements with respect to balancing the budget and creating jobs, and our solid record of economic growth. Many Members welcomed Canada's commitment to our Global Markets Action Plan, and its focus on leveraging trade and investment as drivers of growth and jobs, including through the implementation of free trade agreements and foreign investment promotion and protection agreements.

5.4.  With respect to Canada's participation in the multilateral trading system, we heard welcome support for Canada's longstanding efforts to help conclude the Doha Development Agenda, our active participation in a range of plurilateral negotiations, and our work to implement the new Trade Facilitation Agreement – the Parliamentary review of which is scheduled to conclude in Ottawa tomorrow, setting the stage for Canada to move forward on the legislative changes necessary to ratify the Agreement. On Monday, Members also welcomed our ongoing contributions regarding aid for trade - including for trade facilitation, as well as Canada's implementation of duty-free, quota-free market access for least developed countries, and our measures to implement the services waiver for LDCs.

5.5.  Of course, both in Members' written questions and in our discussions on Monday, we also heard some concerns and criticism of certain Canadian policies. Canada has already provided written responses to all the questions posed by Members before the 18 May deadline, and the Secretariat circulated yesterday our responses to more than 140 additional questions posed after the deadline. Moreover, the Canadian delegation is committed to answering all the remaining written questions in the coming weeks. So every Member that raised a particular issue with Canada in writing will have a written response.

5.6.  In that light, in the time remaining in the meeting today I will turn briefly to some of the main areas where Members expressed concerns.

5.7.  First, several Members raised issues regarding some of Canada's agricultural policies. Canada reminds Members that, as stated in the Secretariat report, Canada was the sixth-largest importer of agricultural products in 2012, accounting for 2.7% of the total value of world imports. Clearly, the Canadian market for agricultural products is very welcoming of imports, and restrictions are minimal.

5.8.  The supply management system is a fundamental component of Canada's agricultural industry and has served Canada well for many years. It is the national system that dairy, poultry and egg producers have chosen for themselves.

5.9.  Canada's practices are fully compliant with its WTO commitments. Our country welcomes stable and predictable levels of imports, provided under tariff rate quotas, in order to manage domestic production to meet market demands.

5.10.  In response to questions regarding Canada's use of agricultural subsidies, let me be clear that Canada supports the elimination of export subsidies as part of a balanced outcome in the Doha agriculture negotiations. This effort would need to be reflective of the overall level of ambition in all three negotiating pillars: domestic support, market access and export competition. Canada would like to reiterate that it has implemented, and continues to abide by, its commitments in its Uruguay Round schedule of tariff concessions. 

5.11.  We also heard Members' comments with respect to a recent increase in the use of trade remedies. As recognized in the WTO agreements themselves, trade remedies investigations are legitimate tools to address situations where unfair trading practices of foreign firms and governments are causing, or threatening to cause, injury to domestic industry. The increased number of Canadian investigations over the 2012-2014 period is not typical of Canada's general declining trend in anti-dumping investigations. In fact, this increase is limited to a narrow range of products that may be affected by underlying issues of global concern, such as global steel production overcapacity. The OECD has indicated that overcapacity in steel production creates an increased likelihood of dumping. The OECD also identified Government interventions as a contributing factor to global excess production capacity. In that light, Canada reminds Members that the WTO has reported a global increase in anti-dumping investigations in this sector during the period of review.

5.12.  So, Canada is not alone. Canada's responses to Members' written questions provide more detail on Canadian trade remedies policies and practices.

5.13.  Some Members also asked about Canada's investment regime and the Investment Canada Act. Recognizing the importance of investment flows into the country, Canada has a broad framework in place to promote trade and investment, and ensure that foreign investment benefits Canada. The Investment Canada Act is an important part of that framework. Since the Act was introduced in 1985, only one transaction has been formally disallowed under the net benefit review process. Importantly, investment flows into Canada remain very strong, totalling US$59.6 billion in 2014. Indeed, the Secretariat report highlights, as did many Members, that Canada is both a desirable major destination for foreign direct investment, and a major investor contributing to sustainable development in countries around the world.

5.14.  WTO Members also expressed considerable interest in the marketing of beer, wines and spirits in Canada. Canada's Provincial and Territorial Liquor Boards predate the GATT and have been notified to the WTO as state trading enterprises. The boards operate as businesses whose purchase and sales decisions are based on commercial considerations. Provincial liquor board practices have been accepted through various bilateral agreements to which Canada is a Party. Notably, Canada's demand for imports, in particular imported wine, is strong and growing. In fact, Canadians consume about 470 million litres of wine per year, of which only 10% is pure Canadian content. Seventy percent is imported wine and 20% are international Canadian blends. The federal Government will continue to work closely with the provinces and territories to ensure consistency of the practices of provincial liquor boards with our international trade obligations.

5.15.  With respect to intellectual property, we were pleased that many Members noted the changes Canada has undertaken since the last review to modernize our intellectual property regime to align with international practices. As mentioned both in the Secretariat and Government reports, Canada ratified two WIPO copyright-related treaties in 2014 and is in the process of acceding to five additional WIPO treaties in relation to trademarks, industrial designs and patents. Since the last review, Canada also made significant legislative changes through the Copyright Modernization Act and the Combatting Counterfeit Products Act. Through these initiatives, the Government is demonstrating its dedication to strengthening the intellectual property framework which serves to foster innovation, job creation and economic growth.

5.16.  Several Members asked specific questions about the Canadian intellectual property regime, including: clarification regarding patent utility; anti-counterfeiting procedural aspects and their application to products in transit through Canada; and implementation of the Canada-EU Comprehensive and Economic Trade Agreement (CETA) commitments, as well as other issues. Canada has provided, or will provide, written responses to these questions.

5.17.  Regarding Members' questions around Government programs for business, Canada, like many countries, maintains certain programs that support businesses in their efforts to expand and grow. Canada takes great effort to ensure that these programs are designed and implemented in accordance with the provision of the Agreement on Subsidies and Countervailing Measures, and that our subsidy notification to the WTO is prepared in accordance with Article 25 of the ASCM. Canada is now in the process of preparing its 2015 subsidies notification.

5.18.  Several Members noted some concern over the intensity of Canada's trade relationship with the United States. From Canada's point of view, our close and preferential trading relations with our southern neighbour – the world's largest economy, and one of the most dynamic - are overwhelmingly positive for the Canadian economy. Especially since the coming into force of the Canada-US FTA in 1989, followed by the North American Free Trade Agreement in 1994, the great majority of our two-way trade is unhindered by barriers. Indeed, preferential trade rules for intra‑North American trade have intensified regional value chains to the extent that we don't just trade with the United States any more, we "make things together". In fact, a key Canadian trade policy objective is to negotiate modern, preferential FTAs with our other major trading partners to allow Canadian businesses to similarly strengthen the productivity of value chain linkages with dynamic economies beyond North America.

5.19.  Moreover, we encourage Members to keep in mind that, in light of highly integrated North American transportation networks and supply chains, there is likely some reporting of Canadian exports to the United States that are in fact destined for other international markets. In addition, it is an unfortunate reality that growth has been below trend in many regions of the world in the period under review. As the economies of other Members continue to recover, we have every confidence that competitive Canadian goods and services exports will grow to other markets as well.

5.20.  Finally, Ambassador Winzap and others noted what may appear to be a relatively limited share of services in Canada's export mix, relative to the importance of services to the Canadian economy. To put this into context, it is important to take into account that Canada maintains a liberal services regime to ensure a competitive services market. WTO and other studies remind us that the value-added contributed by services along the value chain is often not captured in merchandise export statistics. Nonetheless, Canada is actively seeking to improve conditions for trade in services by pursuing liberalization, transparency and predictability in services markets through regional, bilateral and plurilateral initiatives, including the Trade in Services Agreement. Canada is also seeking a credible outcome for services in the WTO's post-Bali work plan. Improved coverage of GATS commitments, complemented by clear and specific disciplines on domestic regulation, would make an important multilateral contribution to world trade in services.

5.21.  Monsieur le Président, je reconnais que plusieurs autres questions spécifiques ont été soulevées par les Membres lundi. Je vous assure que le Canada a soit déjà répondu par écrit à ces questions, ou le fera au cours des jours et des semaines qui viennent.

5.22.  En conclusion, je voudrais remercier encore une fois:

·             Tous les Membres pour leurs questions;

·             Vous, Monsieur le Président, pour l'efficience de votre conduite de cet examen;

·             L'Ambassadeur Winzap pour ses points de vue très réfléchis sur les politiques commerciales du Canada; et, bien entendu,

·             l'équipe du Secrétariat de l'OMC, pour son excellent travail qui a permis de réaliser un examen constructif de nos politiques commerciales.

DISCUSSANT

5.23.  I would like to thank Director General Cameron MacKay and his delegation for the hard work put into this TPR and for providing high quality answers to the many questions of Members – I understand that you have received some additional questions for which you will provide answers in the coming weeks.

5.24.  Your open and constructive approach throughout this exercise has allowed Members to learn and benefit from Canada's experiences. The additional information provided in your statement right now has helped to further clarify some of the issues raised during the first day of this review.

5.25.  In general terms, Members noted Canada's strong economic performance in recent years and underlined their appreciation for Canada's engagement in the WTO, its valuable contributions to the work of the regular committees, the timeliness of its notifications and the very constructive work in the DDA negotiations. In particular, several Members have commended Canada for having been the first to present its concrete measures to implement the services waiver for LDCs. Furthermore, Members are looking forward to the timely ratification of the Trade Facilitation Agreement ahead of the tenth WTO Ministerial.

5.26.  Many Members noted favourably the engagement of Canada in the negotiations on the extension of the Information Technology Agreement (ITA), on an Environmental Goods Agreement (EGA) as well as on the Trade in Services Agreement (TiSA).

5.27.  Of great interest to Members were also Canada's Preferential Trade Agreements, and in particular the Canada-EU Comprehensive Economic and Trade Agreement, as well as the Trans Pacific Partnership negotiations. At the next, the eleventh TPR of Canada in 2019, Members will for sure be keen to learn more on the impact of these agreements on Canada's trade and to what extent they have contributed, together with the Global Markets Action Plan, to broaden Canada's export product base and to diversify its export markets.

5.28.  While the general tone of the interventions on Monday has been very positive in respect of Canada's economic performance and trade policy, Members have also expressed some concerns. Without being exhaustive, I would like to flag some of them: many Members commented on agriculture with a focus on the dairy sector and the supply management in this area, other Members questioned the access of beef and veal meat under the existing import quotas. Members also noted that a very low level of tariffs on industrial goods – even if peaks are maintained on some sensitive industrial products like clothing and footwear – is not matched by a similar openness on all sub-sectors on the agricultural side. I also heard concerns in regard of differing tax and distribution provisions in provinces, tending to favour domestic over imported alcoholic beverages. Several Members noted the increase in numbers of contingency measures with a high concentration on steel and other metal products. In this context, Canada was also asked to critically examine the need for continued action, once such measures have been introduced. Further queries concerned new legislation and regulations on intellectual property rights and how certain provisions were being implemented and enforced.

5.29.  In summary, Canada has been rightly praised for much of its trade policy. Nonetheless, a number of concerns have also been raised. I hope that Canada will consider and possibly act upon those issues. It would certainly be very much appreciated if, by the eleventh TPR in 2019, Canada could elaborate on its response to apprehensions raised by Members in this TPR and, in particular, demonstrate that the necessary steps will have been taken to assure full compliance with national treatment obligations.

5.30.  I would like to end with a more general reflection on the multilateral trading system. On the one hand, we have heard during this TPR Members' unanimous recognition of the positive role that Canada plays in the WTO, and for the multilateral trading system. On the other hand, we have heard you, Director General, on the first day of the TPR saying that Canada is pursuing the most ambitious trade agenda in Canada's history and cannot solely rely on the multilateral trade talks. This sounds to me as a call by you, Director General, on all of us who want a strong multilateral trading system to keep the negotiation function of the WTO alive, by keeping it relevant and by providing meaningful results. I heard you also say on Monday, and I quote: "WTO Members can count on Canada to support a pragmatic and successful outcome at the tenth Ministerial Conference in Nairobi this December. We agree with the many Members who have warned that a failure to succeed in Nairobi will have dire consequences for the WTO's reputation as a forum to negotiate modern global trade rules." For sure, Members appreciate Canada's engagement in view of MC10, and personally, I very much agree with you, that we Members have to seize the opportunity offered by Nairobi.

5.31.  Pour conclure cette session, j'aimerais remercier le Canada de m'avoir choisi comme présentateur. Monsieur le Directeur général, je suis convaincu que le Canada est bien armé pour relever les défis qui se présenteront ces prochaines années. Une période qui commencera avec une première échéance décisive: Les élections de cet automne.

UNITED STATES

5.32.  I would like to thank the Canadian delegation for its constructive participation in this process, in particular the written responses to our written questions. In that regard, the United States has a single follow-up question which is rather technical so better answered in writing.

5.33.  As well, I would like to thank Director General Mackay for his comments this morning which, I think, were very responsive to many of the concerns raised.

JAPAN

5.34.  At the outset, let me thank the Canadian delegation for providing us with informative oral explanations regarding our concerns. We also would like to express our appreciation for the helpful comments from the discussant.

5.35.  Japan read the answers provided by Canada to our advance written questions carefully, and submitted a follow-up question in written form before this meeting. The question refers to the export restriction on the energy sector as we mentioned on the first day of this TPR. We are looking forward to receiving Canada's written answer in due course.

5.36.  Finally, Japan is willing to work closely with Canada, together with other Members, for our forthcoming discussions in the WTO, sharing the common objectives of maintaining and strengthening the multilateral trading system.

5.37.  We wish Canada a successful and fruitful TPR.

EUROPEAN UNION

5.38.  The EU would just like to thank Canada for its comprehensive replies to our advance questions and thank Director General MacKay for additional information this morning. We don't have any follow-up questions to pose.

5.39.  We would just like to thank Canada for its constructive participation in this exercise.

6  CONCLUDING REMARKS BY THE CHAIRPERSON

6.1.  The tenth Trade Policy Review of Canada has offered us an important opportunity to have a better understanding about the developments of the economic, trade, and investment policies of Canada since its last Review in 2011, and the challenges that Canada faces. Our discussion has benefitted from the active participation of the Canadian delegation, headed by Mr. Cameron MacKay, Director General, Trade Negotiations, Department of Foreign Affairs, Trade and Development, and by the insightful comments from the Discussant, the Permanent Representative of Switzerland to the WTO, H.E. Ambassador Remigi Winzap. Canada's timely response to more than 600 advanced written questions has been greatly appreciated by Members, and we look forward to answers to any outstanding questions no later than one month after this meeting.

6.2.  Canada was commended for its overall open and transparent trade and investment policies, with few obstacles for its trading partners. Canada was praised for maintaining a robust and resilient economy in the aftermath of the global financial crisis. Its timely macroeconomic interventions allowed it to weather the financial crisis and maintain an average GDP growth rate of 2.4% during the review period. It was noted that during this period Canada's merchandise imports and exports continued to grow at a modest pace. Trade remained a significant factor contributing to Canada's GDP growth during the period. While Canada remained an important recipient and provider of foreign direct investment, Canada's inward FDI grew less than foreign direct investment abroad during the period under review.

6.3.  Canada has been active in many trade policy areas and at many levels, as guided by its Global Markets Action Plan (GMAP). It was noted that Canada had pursued an ambitious free trade agreement agenda with five FTAs concluded since the last review, one not yet in force, and another ten in the pipeline. At the same time, it was pursuing plurilateral and regional initiatives both inside and outside the WTO on ITA, TiSA, Environmental Goods Agreement (EGA), and the Trans-Pacific Partnership (TPP). Furthermore, Canada maintained a strong commitment to the multilateral trading system, in particular the Doha Development Agenda and the post-Bali process. Members acknowledged Canada's leadership role in the WTO in both the regular work and in the negotiation process. Many developing countries, LDCs, and small and vulnerable economies were in particular grateful for Canada's support in terms of Aid-for-Trade, S&D treatment, preferences, financial aid and assistance, and the LDC services waiver.

6.4.  Members welcomed Canada's autonomous tariff liberalization and tariff simplification efforts, which would contribute to further increasing the competitiveness of the manufacturing sector and to lowering prices for consumers. Canada was also commended for its leadership and support during the trade facilitation negotiations and its commitment to accept and implement the TFA expeditiously. A number of trade facilitating measures had also been undertaken autonomously during the review period and Members welcomed the programmes aimed at reducing the time and procedures for customs clearance. Another improvement was the commitment undertaken by Canada during the GPA negotiations that had extended procurement opportunities to the provinces and territories, including several crown corporations.

6.5.  While there were many positive developments during the review period, it was important to note a number of areas where Members thought improvement was possible. Canada remained vulnerable with respect to its exports as it relied heavily on one market, the United States, and a narrow product base, predominantly energy and mineral products. Despite efforts to diversify trade, both imports and exports had further concentrated with respect to trade with the United States during the review period. The slowdown of FDI was also noted in spite of a number of incentives; in this context, Members wondered if Canada would revise its main investment law or remove long-standing barriers in some sectors in order to reverse this trend. Services trade remained relatively small despite the large size of the domestic services market and Members inquired if Canada had plans to deregulate or encourage some services trade. Also, due to Canada's unique system of government, the competences of the provinces, territories, and local levels of government presented a challenge to Canada's trade policy and commitments in the multilateral trading system. Thus, Members inquired if there were plans to revise Canada's agreement governing internal trade (AIT) or otherwise put in place mechanisms to ensure compliance with its international obligations.

6.6.  Several Members questioned various aspects of Canada's alcoholic beverage distribution and tax regime, and expressed concerns over compliance with WTO national treatment provisions. Members also noted that Canada had stepped up its use of trade remedies over the review period, and Canada was encouraged to resort to these types of measures with restraint. The continued use of export restrictions in certain sectors was also noted. Furthermore, a large number of targeted programmes provide support and incentives to Canadian businesses. With respect to intellectual property, questions were raised concerning pharmaceutical patent approvals and regulations on pirated and counterfeited goods.

6.7.  While praising Canada for its unilateral tariff liberalization in the industrial sector, Members voiced concerns with regards to the protection in some other sectors. In particular, they noted that Canada's agricultural sector remains highly protected through various means: high tariffs; high subsidies and domestic support; supply management channels, in particular for dairy and poultry products. Clothing, apparel and footwear are also still subject to high tariffs. Members urged Canada to step up its liberalization efforts in these areas.

6.8.  On services, Members referred to the strength of the banking sector and its commercial presence abroad, strategies to encourage tourism, and the movement of temporary workers. Several Members welcomed the accessibility to higher education services for foreign students in Canada.

6.9.  Members congratulated Canada for its economic resilience and its general resistance to impose protectionist measures since its last review. The tenth Review of Canada's trade policies was successfully concluded to the benefit of all the Membership. The large number of advance written questions submitted before the meeting and the nearly 40 delegations that took the floor during our two days of discussions highlight the importance Members attached to Canada's trade and related policies and its role in the multilateral trading system.

6.10.  In closing, I would like to thank Director General MacKay and the rest of the Canadian delegation, all the other delegations, the Discussant and the Secretariat for the very positive and active contribution to the tenth Trade Policy Review of Canada.

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