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Immediate release
Ottawa, July 28, 1995

Canada Welcomes WTO Agreement on Financial Services

Finance Minister Paul Martin and International Trade Minister Roy MacLaren today welcomed the World Trade Organization (WTO) agreement enhancing trade in international financial services.

The Ministers strongly support the outcome of the financial services negotiations which will improve Canada's access to a number of financial markets, while further securing current access to key markets such as the European Union. Under the agreement, Canada guarantees existing access to Canadian financial markets.

"This is a good deal for Canadian banks, insurance and securities firms who will gain enhanced and more secure market access to a number of countries' financial markets," Mr. Martin said. "The agreement gives Canadian firms greater opportunities to provide competitive services world-wide."

The Ministers expressed their satisfaction that the agreement firmly establishes the principle of multilateral rules of the road for financial services -- including the Most-Favoured-Nation principle (MFN) that obliges participating countries to provide equal treatment to all -- and acts as a building block for further liberalisation."

The agreement will be in place until the end of 1997 at which time Canada and other countries will have the opportunity to consider whether there is sufficient liberalisation in developing countries to continue to offer MFN treatment.

The Ministers also expressed disappointment that the United States chose not to participate fully in the agreement. "I would hope that over the course of the next two and a half years the U.S. Administration will be able to reconsider its position and commit fully to the multilateral approach," Mr. MacLaren said.

The Ministers noted that the U.S. decision will not adversely affect Canadian companies, since Canada is already assured market access to the U.S., including national and full MFN treatment under the North American Free Trade Agreement (NAFTA).

Mr. MacLaren also expressed his satisfaction with the positive conclusion of parallel negotiations in the WTO covering temporary movement of people. The agreement allows for easier movement of people to provide business and professional services in other countries.

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For further information:

Sheila Riordon
Financial Sector Policy Branch
Department of Finance
(613) 992-5259

Media Relations Office
Foreign Affairs and International Trade
(613) 995-1874