1993, c. 44

[Assented to June 23, 1993]

An Act to implement the North American Free Trade Agreement

WHEREAS the Government of Canada, the Government of the United Mexican States and the Government of the United States of America have entered into the North American Free Trade Agreement having resolved to

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

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

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,

build on their rights and obligations under the General Agreement on Tariffs and Trade and other multilateral and bilateral instruments of cooperation,

enhance the competitiveness of their firms in global markets,

foster creativity and innovation, and promote trade in goods and services that are the subject of intellectual property rights,

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

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

preserve their flexibility to safeguard the public welfare,

promote sustainable development,

strengthen the development and enforcement of environmental laws and regulations, and

protect, enhance and enforce basic workers’ rights;

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,

establish effective procedures for the review and resolution of disputes in antidumping and countervailing duty cases involving Canada and other NAFTA countries, 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 North American Free Trade Agreement Implementation Act.

2. (1) In this Act,

“Agreement” means the North American Free Trade Agreement entered into between the Government of Canada, the Government of the United Mexican States and the Government of the United States of America and signed on December 17, 1992, and includes any rectifications thereto made prior to its ratification by Canada;

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

“Free Trade Commission” means the Free Trade Commission established under Article 2001 of the Agreement;

“Minister”, in respect of any provision of this Act, means the member of the Queen’s Privy Council for Canada designated as the Minister for the purposes of that provision under section 11;

“NAFTA country” means a country that is a Party to the Agreement;

“Secretariat” means the Secretariat established pursuant to paragraph 1 of Article 2002 of the Agreement;

“territory”, with respect to a NAFTA country, has the meaning set out with respect to that country in Annex 201.1 of the Agreement.

(2) The Agreement, including the Schedules of Canada, of Mexico and of the United States referred to in Annex 302.2 of the Agreement, shall be published in the Canada Treaty Series.

3. For greater certainty, this Act, any provision of an Act of Parliament enacted by Part II 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 principles and rules, including national treatment, most-favoured-nation treatment and transparency, are to

(a) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the NAFTA countries;

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

(c) increase substantially investment opportunities in the territories of the NAFTA countries;

(d) provide adequate and effective protection and enforcement of intellectual property rights in the territory of each NAFTA country;

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

(f) establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of the Agreement.

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 I or any order or regulation made under Part I.

(2) Subject to Section B of Chapter Eleven of the Agreement, 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. (1) For greater certainty, nothing in this Act or the Agreement, except Article 302 of the Agreement, applies to water.

(2) In this section, “water” means natural surface and ground water in liquid, gaseous or solid state, but does not include water packaged as a beverage or in tanks.

8. Where the operation of a provision of an Act of Parliament is suspended pursuant to a provision of that Act enacted by Part II, section 43 of the Interpretation Act applies, with such modifications as the circumstances require, as if the suspended provision had been repealed.

9. For greater certainty, nothing in this Act, by specific mention or omission, limits 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.

10. The Agreement is hereby approved.

11. 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.

12. The Governor in Council may appoint any member of the Queen’s Privy Council for Canada to be a representative of Canada on the Free Trade Commission.

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

14. The Canadian Section of the Secretariat is hereby established for the purpose of facilitating the operation of the Agreement, including the work of panels, committees and scientific review boards that may be convened pursuant to the Agreement.

15. (1) There shall be a Secretary of the Canadian Section of the Secretariat to be appointed by the Governor in Council, on the recommendation of the Minister, to hold office for a term not exceeding five years.

(2) The Secretary shall be paid such salary or other remuneration and such expenses as may be fixed by the Governor in Council.

(3) In the event of the absence or incapacity of the Secretary or if the office of Secretary is vacant, the Governor in Council may appoint another person, on such terms and conditions as the Governor in Council considers appropriate, to act as Secretary, and a person so acting has all the powers, duties and functions of the Secretary and shall be paid such salary or other remuneration and such expenses as may be fixed by the Governor in Council.

(4) The provisions of the Public Service Superannuation Act, other than those related to tenure of office, apply to the Secretary, except that a person appointed as Secretary from outside the public service may, by notice in writing given to the President of the Treasury Board not more than sixty days after the date of appointment, elect to participate in the Diplomatic Service (Special) Superannuation Act, in which case the provisions of that Act, other than those related to tenure of office, apply to the Secretary from the date of appointment and the provisions of the Public Service Superannuation Act do not apply.

(5) The Secretary is the chief executive officer of the Canadian Section of the Secretariat and has supervision over and direction of the work and staff of the Section.

1993, c. 44, s. 15; 2003, c. 22, s. 225(E).

16. Such officers and employees as are required for the proper conduct of the work of the Canadian Section of the Secretariat shall be appointed in accordance with the Public Service Employment Act.

17. The Governor in Council may, in accordance with a consensus reached under Article 1124, 1414 or 2009 of the Agreement, appoint any person to be a member of the roster established under that Article.

18. The Minister may appoint any person to be a representative of Canada on any committee referred to in Section A of Annex 2001.2 of the Agreement.

19. The Government of Canada shall, in accordance with Annex 2002.2 of the Agreement, pay the costs of or its appropriate share of the costs of

(a) the remuneration and expenses payable to panelists, members of committees, including persons appointed under section 18, and members of scientific review boards;

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

(c) the general expenses incurred by panels, committees and scientific review boards.

20. (1) The Governor in Council may, where the Governor in Council is of the opinion that, for the purpose of giving effect in a province to Articles 312 and 313 of the Agreement, regulations are necessary in relation to any matter dealt with by those Articles, 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 Articles 312 and 313 of the Agreement in respect of which the regulation is made.

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

(4) A regulation made under subsection (1) or any provision thereof shall cease 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.

21. (1) The Governor in Council may, for the purpose of suspending in accordance with the Agreement the application to a NAFTA country of benefits of equivalent effect pursuant to Article 2019 of the Agreement, by order, do any one or more of the following:

(a) suspend rights or privileges granted by Canada to that country or to goods, service providers, suppliers, investors or investments of that country under the Agreement or any federal law, except under Chapter Nineteen of the Agreement or under any provision of the Special Import Measures Act enacted by Part II;

(b) modify or suspend the application of any federal law, except any provision of the Special Import Measures Act enacted by Part II, with respect to that country or to goods, service providers, suppliers, investors or investments of that country;

(c) extend the application of any federal law to that country or to goods, service providers, suppliers, investors or investments of that country; 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) shall have effect for such period as is specified in the order.

22. to 241. [Amendments]

*242. (1) Subject to this Act, this Act or any provision thereof, or any provision of any Act as enacted by this Act, shall come into force on a day or days to be fixed by order of the Governor in Council.

* [Note: Act, except section 177, in force January 1, 1994, see SI/94-1.]

(2) No order shall be made under subsection (1) unless the Governor in Council is satisfied that the Government of the United Mexican States and the Government of the United States of America have taken satisfactory steps to implement the Agreement.

* [Note: Schedule is not displayable.]