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Current Consultations

Consultations on Services Trade Negotiations
Online Questionnaire for Canadian Businesses

Transportation Services

  1. Background Information:

    Transportation services include maritime, air, rail, road, auxiliary services and rental and leasing services of transportation equipment without operators.

    Commercial transportation refers to those service industries that move passengers and goods for a fee, such as airlines, railways and trucking firms.

    Commercial transportation industries in Canada accounted for $39 billion in 2002, or 4% of the value-added GDP. Trucking is the most important industry, accounting for $11.9 billion, or 1.2 % of the total output. The air and rail transportation industries accounted for $4.3 billion (0.4 % of total output) and $4.7 billion (0.5 %), respectively

    In 2002, total employment in Canada rose by 2.2 % with the creation of 335,000 jobs. Over the last five years, the number of full-time jobs related to transportation totaled more than 800,000. Preliminary figures for 2002 do not allow for the assessment of the total employment in the transport sector. The air transport industry was severely affected by the economic slowdown and the terrorist attacks, and showed no signs of recovery in 2002; air transport-related employment decreased by 7.2 %. No conclusion could be drawn from the available data for the other transportation sectors.

    In 2002, the United States was by far Canada's most important trading partner, capturing 76 % (in value) of Canada's total trade with the world (70 % in 1991). Trucks carried almost 66 % of this trade ($1.5 billion on a daily basis), followed by rail (17 %), pipeline, air and marine. Trucking was the dominant mode for exports (57 %) and for imports (80 %). By volume, pipelines ranked first, at 32 % (mainly in exports), followed by trucks (29 %) and marine (20 %).

  2. Deescription of Sector in the GATS

    The classification system that is used in the GATS by most WTO members divides Transport Services into the following nine categories:

    • Maritime Transport Services
    • Internal Waterways Transport
    • Air Transport Services
    • Space Transport
    • Rail Transport Services
    • Road Transport Services
    • Pipeline Transport
    • Services auxiliary to all modes of transport
    • Other Transport Services

  3. What Canada heard in previous consultations

    Priority Markets:

    While the first priority market for all modes of transport remains the United States, interest has been expressed by stakeholders that Canada target specific countries or groupings of countries, which either maintain limitations or have not made commitments. Specific countries that were identified include the following:

    Australia, Brazil, China, European Union, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, North Africa (Algeria and Morocco), Norway, Pakistan, Panama, Russian Federation, Singapore, South Africa, Taiwan, Thailand, Venezuela and Viet Nam.

    Market Access Barriers:

    Typical trade barriers raised in previous consultations include:

    • Measures that impose limitations on the number of service suppliers (quotas, monopolies, economic needs tests);

    • Measures that impose limitations on the operations of service suppliers (quotas, monopolies, economic needs tests);

    • Lack of transparency regarding rules/regulations;

    • Limitations on investment and/or right of establishment;

    • Unfair licensing requirements;

    • Government procurement restrictions;

    • Restrictions on entry and stay of managers, professionals and experts;

    • Citizenship or residency requirements;

    • Security measures, cargo reservation, cabotage restrictions and lack of uniformity in applying anti trust exemptions for ocean carriers.

Go directly to the Questionnaire.


Last Updated:
2004-08-18

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