2001, c. 28

[Assented to December 18, 2001]

An Act to implement the Free Trade Agreement between the Government of Canada and the Government of the Republic of Costa Rica

WHEREAS the Government of Canada and the Government of the Republic of Costa Rica have entered into a Free Trade Agreement having resolved to

strengthen the special bonds of friendship and cooperation among their peoples,

contribute to the harmonious development and expansion of world and regional trade and provide a catalyst to broader international cooperation,

create new employment opportunities and improve working conditions and living standards in their respective territories,

recognize the differences in the level of development and the size of their respective economies and create opportunities for economic development,

create an expanded and secure market for the goods and services produced in their territories,

reduce distortions to trade,

establish clear and mutually advantageous rules governing their trade,

ensure a predictable commercial framework for business planning and investment,

recognize the importance of trade facilitation in promoting efficient and transparent procedures to reduce costs and to ensure predictability for their importers and exporters,

build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other multilateral and bilateral instruments of cooperation,

promote regional integration with an instrument that will contribute to the establishment of the Free Trade Area of the Americas (FTAA),

enhance the competitiveness of their firms in global markets,

ensure that the benefits of trade liberalization are not undermined by anticompetitive activities,

promote sustainable development,

undertake each of the preceding in a manner consistent with environmental protection and conservation,

preserve their flexibility to safeguard the public welfare,

recognize that States have the ability to preserve, develop and implement their cultural policies for the purpose of strengthening cultural diversity, and

recognize the increased cooperation between Canada and Costa Rica on labour and environmental cooperation;

WHEREAS the Government of Canada has entered into the Agreement having further resolved to

strengthen Canada’s national identity while at the same time protecting vital national characteristics and qualities, and

strengthen the Canadian economy and Canada’s competitiveness as a trading nation;

WHEREAS the Agreement applies generally throughout Canada;

AND WHEREAS it is necessary, in order to give effect to the Agreement, to make related or consequential amendments to certain Acts;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1. This Act may be cited as the Canada — Costa Rica Free Trade Agreement Implementation Act.

2. (1) The definitions in this subsection apply in this Act.

“Agreement” means the Free Trade Agreement entered into between the Government of Canada and the Government of the Republic of Costa Rica and signed on April 23, 2001, and includes any rectifications to it made before its ratification by Canada.

“Commission” means the Free Trade Commission established under Article XIII.1 of the Agreement.

“federal law” means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament.

“Minister”, in respect of any provision of this Act, means the member of the Queen’s Privy Council for Canada designated under section 10 as the Minister for the purposes of that provision.

“territory” means

(a) with respect to Canada, the territory to which its customs laws apply, including any areas beyond the territorial seas of Canada within which, in accordance with international law and its domestic law, Canada may exercise rights with respect to the seabed and subsoil and their natural resources; and

(b) with respect to Costa Rica, the territory and air space, and the maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea, over which it exercises, in accordance with international law and its domestic law, sovereign rights with respect to the natural resources of such areas.

(2) The Agreement shall be published in the Canada Treaty Series.

3. For greater certainty, this Act, any provision of an Act enacted or amended by Part 2 and any other federal law that implements a provision of the Agreement or fulfils an obligation of the Government of Canada under the Agreement shall be interpreted in a manner consistent with the Agreement.

4. The purpose of this Act is to implement the Agreement, the objectives of which, as elaborated more specifically through its provisions, are to

(a) establish a free trade area in accordance with the Agreement;

(b) promote regional integration through an instrument that contributes to the establishment of the Free Trade Area of the Americas (FTAA) and to the progressive elimination of barriers to trade and investment;

(c) create opportunities for economic development;

(d) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of Canada and Costa Rica;

(e) substantially increase investment opportunities in the territories of Canada and Costa Rica;

(f) facilitate trade in services and investment with a view to developing and deepening the relations of Canada and Costa Rica under the Agreement;

(g) promote conditions of fair competition in the free-trade area established by the Agreement;

(h) establish a framework for further bilateral, regional and multilateral cooperation to expand and enhance the benefits of the Agreement; and

(i) create effective procedures for the implementation and application of the Agreement, for its joint administration and for the resolution of disputes.

5. This Act is binding on Her Majesty in right of Canada.

6. (1) No person has any cause of action and no proceedings of any kind shall be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of Part 1 or an order or regulation made under Part 1.

(2) No person has any cause of action and no proceedings of any kind shall be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement.

7. For greater certainty, nothing in this Act or the Agreement applies to natural surface or ground water in liquid, gaseous or solid state.

8. For greater certainty, nothing in this Act, by specific mention or omission, shall be construed to affect in any manner the right of Parliament to enact legislation to implement any provision of the Agreement or fulfil any of the obligations of the Government of Canada under the Agreement.

9. The Agreement is hereby approved.

10. The Governor in Council may, by order, designate any member of the Queen’s Privy Council for Canada to be the Minister for the purposes of any provision of this Act.

11. The Minister for International Trade is the principal representative of Canada on the Commission.

12. The Government of Canada shall pay its appropriate share of the aggregate of any expenditures incurred by or on behalf of the Commission.

13. The Minister for International Trade shall designate an agency, division or branch of the Government of Canada to facilitate the operation of, and provide administrative assistance to panels established under, Chapter XIII of the Agreement.

14. The Governor in Council may, in accordance with a consensus reached under Article XIII.9 of the Agreement, appoint any person to be a member of the roster established under that Article.

15. The Minister may appoint any person to be a representative of Canada on any committee or subcommittee referred to in Annex XIII.2.2 of the Agreement or on any committee, subcommittee or working group established under Article XIII.1.5 of the Agreement.

16. The Government of Canada shall, in accordance with Annex XIII.3.2 of the Agreement, pay the costs of or its appropriate share of the costs of

(a) the remuneration and expenses payable to panellists, members of committees, subcommittees and working groups, including persons appointed under section 15;

(b) the remuneration and expenses payable to assistants; and

(c) the general expenses incurred by panels, committees, subcommittees and working groups.

17. (1) The Governor in Council may, if the Governor in Council is of the opinion that, for the purpose of giving effect in a province to Article III.8 of the Agreement, regulations are necessary in relation to any matter dealt with by that Article, make regulations for that purpose including, without limiting the generality of the foregoing, regulations requiring or prohibiting the doing of anything in relation to which a regulation may be made under this subsection and prescribing penalties for the contravention of any such regulation.

(2) A regulation made under subsection (1) shall not come into force in respect of a province if the Governor in Council is of the opinion that the province has, by or under provincial law, enacted provisions or is carrying on practices that are in conformity with the portion of Article III.8 of the Agreement in respect of which the regulation was made.

(3) The Minister shall consult with the government of a province before the making of a regulation under subsection (1) in respect of that province.

(4) A regulation made under subsection (1) or any of its provisions ceases to be in force in respect of a province on a day or days to be fixed, in respect of that province, by order of the Governor in Council.

(5) A regulation made under subsection (1) in respect of a province is binding on Her Majesty in right of that province.

18. (1) The Governor in Council may, for the purpose of suspending concessions or other obligations in accordance with Article XIII.18 of the Agreement, by order, do any one or more of the following:

(a) suspend rights or privileges granted by Canada to Costa Rica or to goods, service providers, suppliers, investors or investments of Costa Rica under the Agreement or any federal law;

(b) modify or suspend the application of any federal law enacted by Part 2, with respect to Costa Rica or to goods, service providers, suppliers, investors or investments of Costa Rica;

(c) extend the application of any federal law to Costa Rica or to goods, service providers, suppliers, investors or investments of Costa Rica; and

(d) take any other measure that the Governor in Council considers necessary for that purpose.

(2) Unless revoked, an order made under subsection (1) has effect for the period specified in the order.

19. to 59. [Amendments]

*60. (1) Subject to subsection (2), the provisions of this Act, or any provisions of an Act as enacted or amended by this Act, come into force on a day or days to be fixed by order of the Governor in Council.

(2) No order may be made under subsection (1) unless the Governor in Council is satisfied that the Government of the Republic of Costa Rica has taken satisfactory steps to implement the Agreement.

* [Note: Act in force November 1, 2002, see SI/2002-146.]

[Amendments]