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Opening Doors to the World:
Canada's International Market Access Priorities 2000
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8. Summary of Market Access Results in 1999
The WTO
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New negotiations were launched in agriculture and services aimed at achieving progressively higher levels of liberalization.
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Accession negotiations were concluded between WTO Members and three countries -- Latvia, Estonia and Jordan -- bringing the WTO membership to 136.
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Canada submitted a formal proposal for the establishment of a working party on biotechnology.
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Canada and the other members of the WTO Agreement to Eliminate Duties on Specified Pharmaceutical Products implemented the third tranche of tariff cuts associated with this agreement. This phase included 639 additional products, including inputs.
United States
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The Consultative Committee on Agriculture began operation in 1999 to bring concerns and differences forward for resolution before they become serious bilateral irritants. The committee also involves provinces and states on a more systematic basis.
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The movement of feeder cattle into Canada was facilitated by expanding animal health approvals for cattle from states that meet certain animal health criteria.
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Regulations have been implemented that require a Canadian export permit for access to its tariff rate quota for Canada on sugar-containing products.
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Michigan amended its Single Business Tax (SBT) legislation, significantly reducing its impact on access for Canadian companies. The SBT, currently 2.2 percent, will be phased out at 0.1 percent per year over a 23-year period.
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An agreement-in-principle was reached on the main elements required to resolve problems resulting from changes to the U.S. International Trade in Arms Regulations (ITARs).
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As a result of reviews of 15 long-standing anti-dumping and countervailing duty orders, seven were revoked.
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Anti-dumping and countervailing duty cases against live cattle concluded in the fall of 1999 with neither resulting in permanent additional duties on Canadian cattle. In the anti-dumping case, the International Trade Commission (ITC) found no injury or threat of injury in its final determination; and in the countervailing duty case, the Department of Commerce found that subsidies were below de minimis levels and so were not countervailable.
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An anti-dumping investigation of imports of stainless steel wire did not result in the application of additional duties to imports from Canada.
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Two safeguard investigations involving imports of carbon-steel wire rod and carbon-steel line pipe concluded that imports from Canada were not injuring U.S. industry.
Mexico
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Canada and Mexico signed a satellite services agreement to facilitate the provision of services via commercial satellites licensed by the two countries.
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Canada and Mexico signed a Memorandum of Understanding (MOU) on the acceptance of test data to ensure that telecommunications and IT products meet all necessary safety standards.
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New opportunities for air services between the two countries were created as a result of an agreement on code-sharing that has been effectively implemented.
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A MOU on Cooperation in Food Safety and Inspection and Animal and Plant Health was signed in September 1999 to identify and resolve issues related to bilateral trade in agriculture and food products.
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The Fruit and Vegetable Dispute Resolution Corporation was incorporated in November 1999. This voluntary, industry-based, tri-national dispute settlement mechanism focuses on private commercial disputes involving trade in fruits and vegetables within and among the NAFTA countries.
Free Trade Area of the Americas
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The Administrative Secretariat for the negotiations was established in Miami under the directorship of a Canadian.
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Progress was achieved on the work programs for the nine FTAA negotiating groups and three other bodies addressing the cross-cutting issues of e-commerce, civil society engagement and the participation of smaller economies.
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In Toronto, at a meeting of the 34 hemispheric trade ministers on November 3-4, 1999, ministers: reviewed the progress of the negotiations; adopted a substantive package of business-facilitation measures; agreed on a statement directed at the Seattle WTO Ministerial Conference on the elimination of agricultural export subsidies; instructed negotiators to develop a draft text of the FTAA Agreement by April 2001; and agreed on a renewed mandate for the FTAA Civil Society Committee.
Chile
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On January 1, 2000, the Convention on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion (DTA) came into effect.
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On January 1, 2000, an agreement to accelerate the elimination of tariffs on a selection of products came into effect.
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In May 1999, two MOUs between the CFIA and Chilean Agriculture and Livestock Service on cooperation and the exportation of Canadian pork to Chile were signed.
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Chile lowered its visa processing fee from US$650 to US$100.
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Chile continued to suspend the encaje.
European Union
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In April 1999, the EU dehydrated alfalfa industry imposed a voluntary ban on sales of dehydrated alfalfa to Japan, thus reducing the market disruption that had been occurring in Japan as a result of low-priced, subsidized EU alfalfa.
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In April 1999, the EU opened a single year 4,000-tonne TRQ for cooked and peeled shrimp.
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In November 1999, fisheries ministers from Member States agreed to renew the TRQ for cooked and peeled shrimp for a further three years and increase the quantity to 5,000 tonnes per year.
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In June 1999, Canadian and EU authorities signed an agreement permitting information exchange and cooperation in the area of competition policy and law.
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In September 1999, the EU reduced the gap between the export subsidy levels granted for barley and for malt.
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In September 1999, the EU Standing Plant Health Committee agreed to a multi-year derogation which will allow for the importation of Canadian seed potatoes until March 31, 2002.
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In November and December 1999, explanatory discussions were held on the possible scope of a wine and spirits agreement, which would provide improved market access for Canadian exporters in these areas.
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In December 1999, Canada and the EU announced a Joint Statement on Electronic Commerce in the Information Society, which recognized the potential global benefits of e-commerce and declared the objective of constructing an enabling global environment that maximizes social potential for citizens.
APEC
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Developed an agreement on APEC principles to enhance competition policy and regulatory reform.
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Established a MRA on conformity assessment of electrical and electronic equipment.
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Completed an APEC directory on professional services.
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an APEC website on Y2K for information exchange and preparedness tool kits.
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a study on the development of an APEC food system.
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Published a study on e-commerce adoption by SMEs in APEC Member economies.
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Supported eight specific steps to take the region closer to an open market in air services.
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Published International Commercial Disputes: a Guide to Arbitration and Dispute Resolution in APEC Member Economies, 1999.
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Published Competition Law for Developing Countries.
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Updated the hardcopy and internet versions of the APEC Guidebook on Investment Regimes.
Japan
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Japan revised the Japan Agricultural Standards (JAS) Law allowing foreign organizations to obtain Registered Certification Organization (RCO) and Registered Grading Organization (RGO) status.
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Japan approved the import of all varieties of Canadian tomatoes and agreed to discontinue variety-specific testing for Canadian tomatoes.
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Substantial reform, deregulation and restructuring of Japan's financial services sector resulted in Canada's largest-ever single investment in Japan.
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A new JAS product standard improved access conditions for Canadian plywood.
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Japan moved forward with replacing the system of building product testing and approval based on section 38 of the Building Standards Law toward the new system of foreign recognized evaluation bodies and recognized approval bodies.
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Japan continues to move toward increased adoption of international (ISO) standards for building products.
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Japan discontinued the Dairy Genetics Subsidy Program, which will improve access for Canadian bovine semen.
Korea
India
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Under an agreement announced January 10, 2000, quantitative restrictions (QRs) and import-licensing requirements will be lifted on 1429 agriculture, textile and consumer products. QRs on 714 tariff lines will be eliminated by April 2000, with the remainder phased out by April 2001.
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In October 1999, new telecommunications legislation was passed that will allow basic and cellular service operators to migrate from the existing system of a fixed-licence fee to a revenue-sharing regime. This will enhance market access for new entrants.
Indonesia
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Canada maintained market share in wheat sales, despite the predatory subsidy policies of competing economies, particularly those of the United States.
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The Canadian Embassy continued to press Indonesia customs authorities to improve transparency.
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The Indonesian government implemented new regulations permitting greater foreign ownership of commercial banks. Foreign investors may now own up to 99 percent of a bank's shares.
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Non-food agricultural tariffs have been reduced.
Thailand
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In October 1999, the Thai Parliament adopted a revised Alien Business Law, significantly easing restrictions on foreign companies doing business in Thailand.
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In August 1999, Thailand reduced the tariff on canola meal from 10 percent to 5 percent, making it equivalent to the tariff for soya meal.
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Thailand reduced the tariff for alfalfa from a prohibitive 30 percent to 5 percent.
Vietnam
The Philippines
Australia
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