NEWS RELEASES

March 27, 1997 No. 64

MARKET ACCESS REPORT OUTLINES

CANADA'S TRADE PRIORITIES

The Honourable Art Eggleton, Minister for International Trade, today released a report on Canada's priorities for gaining better access to foreign markets for Canadian businesses.

"This report outlines our game-plan for helping Canadian companies compete on an improved playing field in key foreign markets," said Mr. Eggleton. "Better access to foreign markets means more opportunities for Canadian exporters and investors and more jobs for Canadians."

The report, Canada's International Market Access Priorities -- 1997, describes how Canada is seeking improved access for goods, services and investments in several important markets. The document covers multilateral and regional trade liberalization initiatives and specific market access issues in several key markets, including the United States. The individual markets covered in the report accounted for over 95 per cent of Canada's record $314 billion worth of goods and services exports in 1996.

"Trade liberalization through the World Trade Organization (WTO) and the North American Free Trade Agreement has stimulated growth in Canada's trade in recent years," said Mr. Eggleton. "We have taken further steps to enhance trade in the last year through new free trade agreements with Chile and Israel."

The report also notes that Canada is involved in important multilateral negotiations on investment within the Organization for Economic Co-operation and Development. The objective is to gain greater protection and to reduce barriers for Canadian direct investment in other countries.

As well, Canada is making use of the WTO dispute settlement system in an effort to resolve some trade disputes with other countries. And the government is pursuing other activities to deal with trade and investment barriers erected by partners ranging from the United States to the European Union.

The new report replaces the Register of U.S. Barriers to Trade, which was issued annually by the Department of Foreign Affairs and International Trade since 1993.

Improving market access is a key element of Canada's strategy for assisting Canadian exporters and investors in foreign markets. Canada's International Market Access Priorities follows the Minister for International Trade's report to Parliament on March 19, 1997, on the government's international business development activities. A paper on Canada's overall trade policy agenda will be released later this spring.

The report is available on DFAIT's web site: http://www.dfait-maeci.gc.ca. It also may be obtained by contacting the Department of Foreign Affairs and International Trade's InfoCentre at 1-800-267-8376 (toll-free), or, in the Ottawa area, at 944-4000.

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A backgrounder on the highlights of the report is attached.

For further information, media representatives may contact:

Nicole Bourget

Director of Communications

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait.maeci.gc.ca

Backgrounder

CANADA'S INTERNATIONAL MARKET ACCESS PRIORITIES - 1997 HIGHLIGHTS

With exports of goods and services now accounting for 40 per cent of Canada's gross domestic product, the country's economic well-being depends on preserving and enhancing access to foreign markets. Canada has been successful in securing improved and more predictable access to the United States and other key markets, and will continue to work for improved and expanded coverage of international rules governing trade and investment. Better access to foreign markets means more opportunities for Canadian firms, producing jobs and growth at home.

Canada's International Market Access Priorities - 1997, presents priorities for further improving access for goods, services and investments to key markets through multilateral, regional and bilateral initiatives. Its geographic scope includes the United States, important regional initiatives in the Asia Pacific, Europe and Latin America, and several other key markets.

Although the individual markets covered in the report accounted for over 95 per cent of Canadian exports in 1996, the document is not intended as an exhaustive catalogue of government activities to improve market access, nor as a comprehensive inventory of foreign barriers to trade. The report succeeds the Register of U.S. Barriers to Trade, prepared by the Department of Foreign Affairs and International Trade annually since 1993.

Canada's International Market Access Priorities covers the following:

World Trade Organization (WTO)

To improve opportunities for Canadian business, Canada will be active through the full range of activities of the WTO, the cornerstone of the world trading system. For example, Canada has invoked the WTO's strengthened dispute settlement mechanism to challenge the European Union's ban on imports of meat derived from livestock treated with growth-promoting hormones, and Australia's ban on imports of uncooked salmon. Canada is also participating in accession negotiations with China, Chinese Taipei (Taiwan), Russia and other important markets seeking to join the WTO. Canada will work to ensure that they join the WTO on terms that strengthen the world trading system and produce tangible benefits to Canadian traders and investors.

North American Free Trade Agreement (NAFTA)

Working with the United States and Mexico, Canada will continue to seek accelerated tariff reductions where it serves Canadian interests, and will pursue additional initiatives to streamline cross-border commerce.

United States of America

Canada will:

protect and enhance access to the U.S. market by exercising its rights under existing trade agreements and resisting U.S. measures that constrain Canada's access to its most important trading partner;

continue to closely monitor -- and, if necessary, challenge -- key legislative and other developments that have an impact on the trading environment;

continue to defend Canadian cultural policies in the face of U.S. challenges, and to protect the growing importance of the U.S. market to Canada's cultural community;

work closely with the United States to introduce a number of concrete steps to create a "smart" border that facilitates trade and tourism, but keeps illegal goods and services out; and

pursue a range of other initiatives to advance Canadian market access objectives in other areas, such as trade remedies, services, and government procurement.

Mexico

Canada will continue to seek improved access in a number of areas, including agricultural products, trucking, telecommunications, financial services and government procurement.

Other Major Markets

Canada will:

continue to seek the elimination of a range of European Union tariff and non-tariff barriers affecting products such as fur, cereals, asbestos, and aluminum;

urge Japan to modify a range of measures affecting, primarily, Canadian exports of agri-food products and building products and housing;

make telecommunications products, agri-food and beverage products and investment its market access priorities for Korea;

seek improved access to the Indian market in areas such as telecommunications and through the phase-out of balance-of-payments import restrictions; and

look forward to continued, excellent access to the Hong Kong market after the July 1, 1997, transfer to the People's Republic of China.

New Free Trade Agreements

Canadian business will have significantly enhanced access to the Chilean market upon implementation of the Canada-Chile Free Trade Agreement on June 2, 1997. Under the recently implemented Canada-Israel Free Trade Agreement, Canada now enjoys a level playing field in that market with its competitors.

Multilateral Agreement on Investment (MAI) Negotiations

In these negotiations, scheduled to conclude in May 1997, Canada is seeking greater protection for Canadian direct investments in other countries and the reduction of barriers to investment. The MAI should also increase the attractiveness of Canada as an investment location.

Asia Pacific Economic Co-operation (APEC)

In 1997, which is also Canada's Year of Asia Pacific, Canada chairs this 18-member forum that promotes economic co-operation on the Pacific Rim. To improve access for Canadian traders and investors to these fast-growing markets, Canada will pursue several initiatives, including the harmonization and simplification of customs procedures.

Free Trade Area of the Americas (FTAA)

Canada will continue to be a strong proponent of this initiative which is seeking to achieve free trade among 34 countries of the hemisphere by 2005. Canada aims to see negotiations launched by 1998.