NEWS RELEASES

August 25, 2000 (11:00 a.m. EDT) No. 208

CANADA FURTHER OPENS MARKET TO LEAST-DEVELOPED COUNTRIES

International Trade Minister Pierre Pettigrew, Finance Minister Paul Martin and International Co-operation Minister Maria Minna today announced that Canada will increase the number of products that enter the country duty-free from the world's least-developed countries. These tariff measures will come into effect on September 1, 2000.

"By gaining greater access to the Canadian market, least-developed countries are benefiting from the global trading system," said Minister Pettigrew. "These measures also demonstrate Canada's support for the World Trade Organization (WTO) and its efforts to promote further trade liberalization."

Five hundred and seventy additional tariff items will be accorded duty-free treatment, which means about 90 percent of product categories from the world's least-developed countries may enter Canada duty-free. On August 23 Canada also liberalized the origin requirements that apply to imports entering the Canadian market from least-developed countries.

"The measures we are announcing today are intended to spur growth in many developing countries," said Minister Martin. "A more generous preferential tariff scheme will hopefully lead to increased economic activity, better wages and broader job opportunities in these countries."

In the past several months, the WTO has consulted widely on this issue and asked members to participate in a four-point plan to build confidence in the world trading system among developing countries. Today's market access announcement is part of a number of initiatives Canada has contributed to the four-point WTO plan.

"Improving market access and providing trade-related technical assistance are key elements to raising the standards of living in the least-developed countries," said Minister Minna.

In the areas of capacity building and technical assistance, Canada, through the Canadian International Development Agency, co-founded the Advisory Centre on WTO Law at the Seattle WTO Ministerial meeting last December. Canada has also been a strong supporter of the "Integrated Framework," which pulls together relevant bodies in helping developing nations to participate in the modern global economy. In addition, Canada has contributed $700 000 to a special fund for the integration of least-developed countries in the world trading system.

At the Seattle Ministerial, Mr. Pettigrew chaired the implementation working group, which focussed on helping developing countries meet their WTO obligations and benefit from the trading system. Canada made several proposals on improving the WTO's internal transparency and inclusiveness in a March 2000 paper submitted to WTO members (available at http://www.dfait-maeci.gc.ca/tna-nac/transparency_paper-e.asp).

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For further information, media representatives may contact:

Sylvie Bussières

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

Nathalie Gauthier

Office of the Minister of Finance

(613) 996-7861

Jean-Michel Catta

Department of Finance

(613) 996-8080

Robin Walsh

Office of the Minister for International Co-operation

(819) 953-3160

Media Relations Office

Canadian International Development Agency (CIDA)

(819) 953-6534

E-mail: info@acdi-cida.gc.ca

Web site: http://www.acdi-cida.gc.ca (electronic version of this document)

This document is also available on the Department of Foreign Affairs and

International Trade's Internet site at http://www.dfait-maeci.gc.ca