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Chapter Fourteen - Transportation
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Agreement on Internal Trade
September 1994
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Article 1400: Application of General Rules
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Article 1401: Application of Other Chapters
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Article 1402: Objectives
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Article 1403: Scope and Coverage
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Article 1404: Extent of Obligations
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Article 1405: Business Registration Requirements
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Article 1406: Reciprocal Non-Discrimination
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Article 1407: No Restrictions or Obstacles to
Trade
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Article 1408: Reconciliation
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Article 1409: Transparency
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Article 1410: Listed Measures
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Article 1411: Phase Out of Non-Conforming Measures
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Article 1412: Consultations
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Article 1413: Assistance of Council
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Article 1414: Request for Panel
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Article 1415: Council of Ministers Responsible for
Transportation and Highway Safety
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Article 1416: Definitions
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Annex 1408.1 - Reconciliation
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Annex 1410.1 - Listed Measures
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Annex 1411 - Phase Out of Non-Conforming Measures
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Articles 401 (Application), 402 (Right of Entry and Exit) and 403
(No Obstacles) do not apply to this Chapter.
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For greater certainty, Articles 404 (Legitimate Objectives), 405
(Reconciliation) and 406 (Transparency) apply to this Chapter,
except as otherwise provided in this Chapter.
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For the purposes of Articles 1406 and 1407, the reference in
Article 404 (Legitimate Objectives) to "Article 401, 402 or
403" shall be construed as a reference to "Article 1406
or 1407".
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Chapter Six (Investment) applies to this Chapter, except as otherwise
provided in this Chapter.
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The objectives of this Chapter are:
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to ensure a seamless, integrated Canadian transportation
system that:
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is safe, secure and efficient;
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is responsive to the needs of shippers and travellers;
and
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promotes a competitive, productive and sustainable
economy throughout Canada;
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to affirm competition and market forces, whenever possible,
as the prime agents in providing viable and effective
transportation services;
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to build on the progress already achieved by the Parties in
reducing barriers to trade in transportation services through
existing consultation mechanisms and agreements;
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to further eliminate obstacles to trade in transportation
services in Canada and thereby facilitate internal trade in
goods and services; and
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to create effective procedures for:
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the implementation and application of this Chapter; and
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consultations to cooperatively resolve issues related
to the application of this Chapter and to expand and
enhance its benefits.
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The Parties shall interpret and apply this Chapter taking into
account the objectives set out in paragraph 1.
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This Chapter applies to measures adopted or maintained:
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by the Federal Government, that relate to or affect trade in
transportation services by carriers of a Province; and
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by a Province, that relate to or affect trade in
transportation services by carriers of another Province.
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Nothing in this Chapter shall be construed to prevent a Party from
providing an essential public transportation service, either by
means of a government enterprise or a contract with a private
supplier, in a manner that is consistent with this Agreement.
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Further to Article 102 (Extent of Obligations), each Party is
responsible for compliance with this Chapter by its other
governmental bodies, including Crown corporations, and by
non-governmental bodies that exercise authority delegated by law.
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Each Party is responsible for ensuring compliance with Article
1408(1) by its regional, local, district or other forms of
municipal government.
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The Provinces shall enter into negotiations, to be concluded no
later than July 1, 1996, for the special provisions required to
extend coverage of this Chapter to regional, local, district or
other forms of municipal government.
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A Party may adopt or maintain a measure requiring a carrier to
designate an agent for service of notices of proceedings and other
judicial documents within the territory of the Party.
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For the purposes of the corporate registration requirements
referred to in Article 606 (Corporate Registration and Reporting
Requirements), a carrier that picks up or drops off a traveller or
freight in, or travels through, a Province shall not be considered
to be carrying on business in the Province by reason of that
activity alone.
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Subject to Article 404 (Legitimate Objectives), the Federal
Government shall accord to carriers of a Province treatment that:
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is no less favourable than the best treatment that it accords
to carriers of any other Province, or of a non-Party, that
provide like, competitive or substitutable services; and
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does not discriminate between carriers of any Province and
carriers of any other Province, that provide like,
competitive or substitutable services.
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Subject to Article 404 (Legitimate Objectives), each Province shall
accord to carriers of any other Province treatment that:
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is no less favourable than the best treatment that the
Province accords to its own carriers and carriers of a
non-Party, that provide like, competitive or substitutable
services; and
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does not discriminate between carriers of any Province and
carriers of any other Province, that provide like,
competitive or substitutable services.
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Subject to Article 404 (Legitimate Objectives), no Party shall adopt
or maintain any measure that restricts or prevents the movement of
transportation services across provincial boundaries or that creates
an obstacle to trade in transportation services.
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Further to Article 405 (Reconciliation), the Parties shall
reconcile, by harmonization, mutual recognition or other means,
their regulatory and standards-related measures in accordance with
Annexes 405.1 and 405.2 and their measures listed in Annex 1408.1
in accordance with that Annex.
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Article 1415 and Chapter Seventeen (Dispute Resolution Procedures)
do not apply to disputes relating to compliance with this Article.
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A Party required to notify any other Party of a proposed measure under
Article 406(2) (Transparency) shall also notify the Council.
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This Chapter and Chapter Six (Investment) do not apply to:
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an existing measure maintained by a Party that is listed in
Annex 1410.1;
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the continuation or prompt renewal of any measure referred to
in paragraph (a); and
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an amendment to a measure referred to in paragraph (a), to
the extent that the amendment does not decrease the
conformity of the measure, as it existed immediately before
the amendment, with this Chapter.
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The Parties shall, through the Council, periodically, but in any
event at least every two years, endeavour to negotiate to
liberalize or remove measures listed in Annex 1410.1.
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Further to paragraph 2, the Council shall, within one year after
being notified of an issue relating to any measure listed in Annex
1410.1, develop a plan by consensus to address that issue.
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Where the Council has developed a plan referred to in paragraph 3,
but that plan fails to resolve the issue within two years after the
date on which the plan was agreed to, a Party may request the
establishment of a panel under Article 1705 (Establishment of
Panel) to determine whether the plan was properly implemented.
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Each Party shall liberalize or remove its non-conforming measures
listed in Annex 1411 in accordance with that Annex.
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Where a Party considers that an actual or proposed measure of
another Party is or would be inconsistent with this Chapter, it may
make a written request for consultations with the other Party. The
Party requesting consultations shall deliver notice of its request
to the other Party.
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A Party who requests consultations shall provide reasons for the
request.
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Consultations shall begin within 60 days after the date of delivery
of the request.
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The consulting Parties shall endeavour to conclude consultations
expeditiously, with a view to reaching a mutually satisfactory
conclusion.
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If the consulting Parties achieve a mutually satisfactory
resolution that involves the adoption of a measure that is
materially different than that in respect of which notice has been
given, Articles 406 (Transparency) and 1409 and this Article shall
apply in respect of the measure.
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If the matter has not been resolved to the mutual satisfaction of
the consulting Parties within a reasonable period of time after the
date of delivery of the request, any consulting Party may make a
written request to the Council for its assistance in resolving the
matter.
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The request for assistance shall set out:
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the actual or proposed measure that is considered to be
inconsistent;
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a summary of the issues raised in the dispute;
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the efforts made to resolve the matter through consultations;
and
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the remedy sought.
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Where the Council agrees to provide assistance, it shall determine
the nature and form of the assistance including the appointment of
one or more fact finding bodies, technical experts, mediators or
conciliators.
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A Party may have recourse to Chapter Seventeen (Dispute Resolution
Procedures) where it has requested:
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consultations under Article 1412, and such consultations have not
begun within 60 days after the date of delivery of the request; or
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the assistance of the Council under Article 1413, and such
assistance has not resulted in a mutually satisfactory resolution
within 90 days after the date of delivery of the request for
assistance.
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The Council shall:
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monitor and facilitate the implementation of the
reconciliation obligations set out in Article 1408(1);
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act as an effective forum for consultations toward further
reconciliation of regulatory and standards-related measures;
and
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prepare an annual report on its progress under paragraphs (a)
and (b).
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The Council may:
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consider and discuss matters relating to the implementation,
operation and further elaboration of this Chapter;
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erve as a forum for the exchange of views of the Parties on
the implications of proposed measures and for developing a
consensus on common approaches to trade-related issues or
problems to which this Chapter applies;
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establish any committees, working groups or expert groups
that it considers necessary or advisable to fulfil the intent
of this Chapter; and
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delegate any of its duties or responsibilities under this
Chapter to a committee established by the Council.
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In this Chapter:
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carrier
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means a person that seeks to provide or provides a transportation
service;
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carrier of a Province
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means, in relation to a Province, a carrier that is
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a resident of the Province;
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a business constituted or organized under the laws of the
Province; or
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a business constituted or organized under the laws of another
Party that has substantial business activities in or a
substantial connection to the Province;
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Council
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means the Council of Ministers Responsible for Transportation and
Highway Safety;
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legitimate objective
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includes, in addition to the objectives set out in the definition
"legitimate objective" in Article 200 (Definitions of
General Application), an objective respecting:
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the availability and quality of transportation services
facilities and services;
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the accessibility of transportation facilities and services
to mobility disadvantaged persons; and
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protection of public transportation infrastructure;
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trade in transportation services
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means the provision of a transportation service by a carrier of a
Province:
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into, out of or through a Province;
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within a Province, by a carrier of another Province; or
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within a Province, for a traveller or shipper of another
Province.
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Motor Vehicle Weights and Dimensions
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The Parties undertake to establish and maintain uniform rules
governing the size and weight of commercial motor vehicles,
building on the Memorandum of Understanding signed by the Parties
in 1988, as amended in 1992.
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The Council shall review the status of these rules at least every
two years.
Extra-Provincial Truck Carrier Operating Authorities
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In furtherance of Council direction, each Party shall eliminate its
operating authority requirements for extra- provincial trucking
operations no later than January 1, 1996.
Motor Carrier Safety Rules
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Subject to paragraph 5, each Party shall implement the National
Safety Code for Motor Carriers, as it exists on the date of entry
into force of this Agreement, within six months after that date.
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The Parties shall endeavour to resolve issues relating to the
effective delivery of the National Safety Code program before the
date of entry into force of this Agreement.
Bill of Lading
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The Parties shall establish a uniform national bill of lading for
transportation of goods by motor carriers before the date of the
entry into force of this Agreement.
Fuel and Sales Tax and Vehicle Registration Administrative
Harmonization
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The Council shall establish a work plan for the creation of
harmonized administrative mechanisms for the collection of fuel and
sales taxes and vehicle registration fees before the date of entry
into force of this Agreement.
Memorandum of Understanding on Regulatory Review
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The Parties affirm their commitments to the guiding principles of
regulatory policy and the criteria and process for regulatory
review embodied in the "Memorandum of Understanding to Review
Regulations Affecting Transportation", and will bring the
process envisaged by that Memorandum of Understanding into
operation.
Agents for Service
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The Council shall establish a work plan for the creation of
harmonized administrative arrangements for the designation of
agents for service as referred to in Article 1405(1) before the
date of entry into force of this Agreement.
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Newfoundland
Motor Carrier Act, 1990 and Motor Carrier Regulations
(Newfoundland Regulations 64/94) relating to the economic entry test
(reverse onus), rate and service regulation for passenger service; the
economic entry test (public convenience and necessity) and rate
regulation for ambulance service; and maintaining an economic entry
test (reverse onus) and rate regulation for dump truck service and a
moratorium on the issuance of dump truck licences.
Provisions of by-laws of municipalities within the Province relating
to the economic entry, rate, and service regulation of taxicabs,
liveries and buses operating within the municipality.
Nova Scotia
Motor Vehicle Act, R.S.N.S., 1989, Chapter 293,
Section 305, relating to the regulation and licensing of local
taxis.
Motor Carrier Act, R.S.N.S., 1989, Chapter 292, Sections 11
to 14 inclusive, relating to the licensing of public passenger
vehicles.
Railways Act, Chapter 11 of the Acts of 1993, Sections 14 to
21 inclusive, relating to the regulation and licensing of provincial
railways.
Prince Edward Island
Motor Carrier Act, R.S.P.E.I., 1988
Highway Traffic Act, R.S.P.E.I., 1988
New Brunswick
NIL
Quebec
An Act respecting transportation by taxi (R.S.Q., c.
T-11.1), section 33: power of the Commission des transports du
QuÚbec to approve transfers or changes of ownership of taxi
companies.
An Act respecting transportation by taxi (R.S.Q., c. T-11.1),
sections 59.2 and 59.5: power to seize the vehicle of a non-resident
offender operating a taxi, limousine or minibus (less than ten (10)
passengers) who could otherwise abscond.
An Act respecting transportation by taxi (R.S.Q., c. T-11.1),
and the Transportation by Taxi Regulation (O.C 1763-85, dated
August 28, 1985): limit of twenty (20) taxi permits per person.
An Act respecting transportation by taxi (R.S.Q., c. T-11.1),
and the Transportation by Taxi Regulation (O.C. 1763-85,
dated August 28, 1985): public interest criteria for entry in the taxi
sector without a reversal of proof; a moratorium on the issuance of
permits, and the requirement that operators and drivers of taxis,
limousines and minibuses (less than ten (10) passengers) reside or
have a place of business in Quebec.
An Act respecting truck transportation (R.S.Q., c. C-5.1),
sections 12, 14 and 15: public interest criteria for entry in the
general truck transportation sector (local undertakings) and test of
fitness.
An Act respecting truck transportation (R.S.Q., c. C-5.1),
sections 12 and 33: provision maintaining the requirement of an
attorney for non-Quebec truck transportation undertakings.
An Act respecting intermunicipal boards of transport in the area
of MontrÚal (R.S.Q., C-60.1), Municipal Code of
QuÚbec (R.S.Q., c. C-27.1) and Cities and Towns
Act (R.S.Q., c. C-19).
Education Act (R.S.Q., c. I-13.3) and the Regulation
respecting student transportation (O.C. 647-91, dated May 8,
1991).
General Order respecting the transport of passengers and goods by
water (R.R.Q., 1981 c. T-12 r. 17), section 28: public interest
criteria for entry in the local marine transportation sector.
Highway Safety Code (R.S.Q., c. C-24.2), section 92.1:
prohibition on driving for non-residents who have failed to pay,
within the prescribed time, a fine imposed for an infringement of this
Code.
Highway Safety Code (R.S.Q., c. C-24.2) and the
Regulation respecting carriers' demerit points (O.C.
672-88 dated May 4, 1988): system of demerit points which are
applicable to all carriers and which may result in the right to drive
being withdrawn for all the carrier's vehicles.
Railway Act (S.Q. 1993, c. 75), Division II: preservation of
the certificate of competence issued by the Commission des transports
du QuÚbec as a prerequisite for carrying on rail transportation
activities in Quebec.
Transport Act (R.S.Q., c. T-12), the Regulation
respecting bulk trucking (R.R.Q. 1981, c.T-12, r. 3), and the
Regulation respecting foreign carriers (R.R.Q., c. T-12, r.
24).
Transport Act (R.S.Q., c. T-12), paragraph 5(d), and the
Bus Transport Regulation (O.C. 1991-86 dated December 19,
1986), section 12: public interest criteria for entry in the bus
transportation sector.
Transport Act (R.S.Q., c. T-12), section 39, and the Bus
Transport Regulation (O.C. 1991-86 dated December 19, 1986),
sections 10 and 11: requirement of having a place of business or
domicile in Quebec, in the bus sector.
Transport Act (R.S.Q., c. T-12), section 80, and an Act
respecting truck transportation (R.S.Q., c. C-5.1), section 72:
power to seize a vehicle of a (non-resident) offender, in the trucking
and bus sectors, who could otherwise abscond.
Ontario
Public Vehicles Act, R.S.O. 1990, Chapter P. 54,
Sections 5, 6, 7 and 8, relating to the public necessity and
convenience test for the issuance and transfer of a public vehicle
operating license.
Provisions of by-laws of local, regional, district and other forms of
municipal governments within the province relating to the entry,
service and local presence requirements for taxicabs, liveries and
buses operating within the local, regional, district or municipal
area.
Manitoba
Provisions of the Highway Traffic Act, C.C.S.M.
c.H60, relating to the economic entry, rate and service regulation of
motor carriers, other than local truck undertakings as defined in the
Motor Vehicle Transport Act, 1987, R.S.C., 3rd Supp., c.
29.
Provision of the Provincial Railways Act, C.C.S.M. c.R15,
relating to the economic entry, rate and service regulation of
provincial railways as defined in the legislation.
Provision of the Taxicab Act, C.C.S.M. c.T10, relating to the
economic entry, rate and service regulation of taxicabs within the
city of Winnipeg.
Provisions of by-laws, municipalities within the province, relating to
the economic entry, rate, and service regulation of taxicabs, liveries
and buses operating within the municipality.
Provisions of the Highway Traffic Act, C.C.S.M. c.H60,
relating to the economic entry, rate and service regulation of local
truck undertakings as defined in the Motor Vehicle Transport
Act, 1987, R.S.C., 3rd Supp., c. 29, until January 1, 1998.
Saskatchewan
Motor Carrier Act, Section 4, relating to the
economic entry regulation of extra-and intra-provincial bus
service.
Railway Act, Section 14, relating to the economic entry
regulation of provincial railways.
Alberta
NIL
British Columbia
The Motor Carrier Act.
Northwest Territories
NIL
Canada
Motor Vehicle Transport Act, 1987, R.S.C., 3rd Supp.,
c. 29, Part 1
Western Grain Transportation Act, R.S.C., c. W-8.
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Newfoundland
NIL
Nova Scotia
NIL
Prince Edward Island
NIL
New Brunswick
NIL
Quebec
Transport Act (R.S.Q., c. T-12), section 39, and the
Bus Transport Regulation, (O.C. 1991-86, dated December 19,
1986), sections 9 and 10: from July 1, 1995, the requirement to have a
place of business or a domicile in Quebec for bus operators will apply
from the date on which the application for a permit is filed, and not
six (6) months before that application.
Transport Act (R.S.Q., c. T-12), Government Aid Program for
Public Transportation: the status quo is upheld until December 31,
1996, concerning procurement by municipalities in the field of bus
transportation and, from January 1, 1997, the timetable for trade
liberalization provided for in the Quebec-Ontario Agreement on
government procurement and labour mobility in the construction
industry will be upheld and applied in respect of all provinces.
Ontario
NIL
Manitoba
Provisions of the Highway Traffic Act, C.C.S.M.
c.H60, relating to the economic entry, rate and service regulation of
local truck undertakings as defined in the Motor Vehicle Transport
Act 1987, R.S.C., 3rd Supp., c. 29, effective January 1,
1998.
Saskatchewan
Motor Carrier Act, section 4, relating to local truck
regulation, effective January 1, 1998.
Alberta
NIL
British Columbia
Provisions of the Motor Carrier Act (R.S.B.C.,
Chapter 286) relating to the economic entry, rate and service
regulation of local truck undertakings as defined in the Motor Vehicle
Transport Act (Canada), effective January 1, 1998.
Northwest Territories
NIL
Canada
Motor Vehicle Transport Act, 1987, R.S.C., 3rd Supp.,
c. 29, Part III, effective 1 January 1998.
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