Transportation Consultative Group on Maritime and Ports Policy (TCG-5)

The Marine Policy group of Transport Canada participates in the Transportation Consultative Group on Maritime and Ports Policy (TCG-5) with government representatives from the United States and Mexico.  This site is designed to provide a communications link with the public and interested parties on the work of TCG-5. 

Listed below are a number of documents including a Background Paper on the NAFTA and associated transport working groups.  Also provided is the Mission Statement for TCG-5 and its Generic Work Program.  A Summary Report of the last meeting and Tentative Agenda for the upcoming meeting are included as well.

Comments and feedback are welcome.  You may contact Robert Snider at 613-998-0690, or by e-mail at: sniderr@tc.gc.ca. 

• Background Paper on the NAFTA Land Transportation Standards Sub-Committee and Transportation Consultative Groups
• TCG-5 Mission Statement and Generic Work Program
• Summary of the Last TCG-5 Meeting (Queretaro, Mexico - October 2000)
• Tentative Agenda for the Next Meeting (Canada - 2001)

North American Free Trade Agreement (NAFTA)
Land Transportation Standards Subcommittee and
Transportation Consultative Groups

Background

The North American Free Trade Agreement, commonly referred to as NAFTA, is a trilateral trade agreement among Canada, Mexico and the United States. It came into force on January 1, 1994.

The NAFTA formally establishes a free trade area between Canada, Mexico, and the United States and it sets out the basic rules and principles that govern the Agreement. The objectives of the Agreement are to eliminate barriers to trade, promote conditions of fair competition, increase investment opportunities, provide adequate protection for intellectual property rights, establish effective procedures for the implementation and application of the Agreement and for the resolution of disputes, and establish a framework for further trilateral, regional and multilateral cooperation. The NAFTA therefore, affirms the three countries’ commitment to promoting employment and economic growth through the expansion of trade and investment opportunities in the free trade area and by enhancing the competitiveness of Canadian, Mexican, and U.S. firms in global markets in a manner that protects the environment.

Land Transportation Standards Subcommittee (LTSS)

NAFTA has given rise to a number of trilateral initiatives, including efforts in science and technology, the environment, and transportation. In transportation, the Land Transportation Standards Subcommittee (LTSS) was originally created by the NAFTA to address development of more compatible standards related to truck, bus and rail operations and the transport of hazardous materials between Canada, Mexico and the United States. The Agreement provided for the LTSS to implement a work program in accordance with a timetable set by the NAFTA. The objective of the LTSS is to facilitate increased travel and transportation between the NAFTA nations by developing and implementing compatible and/or uniform standards for surface transportation drivers, vehicles, roads, and traffic control devices; the safety of railroad operating personnel; and the transportation of hazardous materials. Five working groups were formed to carry-out the LTSS work program. While some of the work has already been completed, work in other areas remains to be finished. The specific individual LTSS working groups are as follows:

LTSS#1 - Driver and Vehicle Standards,
LTSS#2 - Vehicle Weights and Dimensions,
LTSS#3 - Traffic Control Devices (mandate completed October 1999),
LTSS#4 - Rail Standards (combined with TCG - 2 in 1995),
LTSS#5 - Transport of Hazardous Materials.

Transportation Consultative Groups (TCG)

In order to address issues not specifically assigned to the LTSS by the NAFTA, the three parties to the Agreement created related groups; Transportation Consultative Groups (TCG) to address non-standards issues that affect cross-border movements among the three nations. These groups have been working in cooperation with the LTSS to address issues related to cross-border facilitation, rail operations, electronic data interchange, application and exchange of information on advanced technologies, and maritime and ports policy. The focus of these groups is to increase the sharing of transportation-related information among the parties. The LTSS and TCG usually meet jointly each year with some officials taking part in both groups. The five working groups of transportation officials from the three nations who meet in TCGs pursue activities in the following specific areas:

TCG#1 - Cross-Border Operations and Facilitation,
TCG#2 - Rail Standards (includes LTSS - 4),
TCG#3 - Automated Data Exchange,
TCG#4 - Cooperation on Transportation Technologies,
TCG#5 - Maritime and Ports Policy.

TCG-5 - Maritime and Ports Policy

In 1998 a Mission Statement and Generic Work Program were adopted. The Mission Statement and Generic Work Program guide the TCG-5 activities from meeting to meeting and constitute the long term focus of the Group. The Group remains flexible to respond to emerging needs and may establish its priorities accordingly.

It should be pointed out that there are three general obligations to facilitate trade in services under NAFTA: national treatment, most-favoured-nation treatment, and a prohibition on local presence requirements as a condition to provide a service.  The parties to the NAFTA Agreement were unable to find common ground to adopt these obligations in the maritime transport sector.  By wishing to retain existing non-conforming measures and the ability to introduce new measures, the United States effectively excluded maritime transport from the Agreement.  The NAFTA does however contain limited maritime commitments between Canada and Mexico, which essentially preserve the status quo in the Canadian and Mexican maritime transport regimes and commits both parties not to introduce more restrictive measures.  Accordingly, the Maritime and Ports Policy Transportation Consultative Group (TCG-5) is largely a forum for the exchange of information on policy developments while attempting to develop closer cooperation and harmonization among the three parties to the NAFTA Agreement.

TCG-5 MISSION STATEMENT AND WORK PROGRAM

The Transportation Consultative Group on Maritime and Ports Policy is to:

• monitor the implementation of NAFTA maritime commitments, in particular ensuring the currency and transparency of maritime legislation and regulation;
• identify both opportunities and obstacles in maritime transportation which influence the growth of commerce among NAFTA members;
• undertake maritime related projects and tasks of common benefit and interest to achieve greater levels of co-operation and to support the development of maritime industries;
• regularly exchange and circulate information on shipping developments as well as ship safety for such purposes as: supporting the development of both maritime policy and the maritime sector; clarification; solicitation of views; enhanced understanding; and harmonization.

TCG-5 GENERIC WORK PROGRAM

Legal and Regulatory Environment - Maintain a complete and transparent inventory of maritime legislation and regulations, in particular, by up-dating the content of NAFTA annexes.

Ship Safety - Promote ship safety and the protection of the marine environment through examination of the economic aspects of enhanced co-operation and facilitation of maritime traffic among NAFTA members, exchange of information , supporting work of ship safety authorities, identification of areas for co-operation, and encouragement of harmonized approaches.

Maritime Statistics - Consider the data requirements for maritime policy and the maritime industry, develop trilateral recommendations for data availability, coordinate with the on-going effort of the North American Transportation Data Interchange Working Group on Maritime Statistics.

Maritime Liability and Insurance - consider regulatory standards, requirements and gaps, consider incidence of different national requirements and any subsequent economic implications, consider any opportunities for harmonization respecting hazardous goods, financial responsibility, certification, etc.

Co-operation in Multilateral Fora - Consider work programs and activities of international maritime organizations, engage in a prior exchange of positions and considerations in taking positions, consider possible co-ordination in multilateral fora to advocate joint positions.

Intermodal Transportation - Consider intermodal policies, regulations and requirements with a view towards facilitating more efficient movement across borders; focus on any incidence of traffic congestion, bottlenecks and inadequate infrastructure; consider greater use and co-operation in implementing new technologies such as electronic data interchange and paperless customs processing; examine problems of cargo security, cargo claims and insurance and criminal use of intermodal systems.

Consultation and Communications - Develop a consultation and communications strategy respecting the private sector in order to fully reflect actual commercial interests and ensure their continuing interest.

Co-ordination and Exchange with Other NAFTA Transportation Consultative Groups - Ensure timely communication with other NAFTA working groups to avoid duplication and to maximize mutual assistance.

Exchange of Information on Shipping Developments - Regularly advise of developments in shipping policy or the maritime sector.

June 1998

Summary Report on the Meeting of the
Maritime and Ports Policy Transportation Consultative Group (TCG-5)
San Juan del Rio, Queretaro, Mexico

October 24, 2000

Summary

The meeting of the NAFTA consultative group TCG-5 was attended by marine policy and ship safety officials from Canada, the United States and Mexico. The following is an overview of the issues and accomplishments from the meeting.

Ship Safety Issues

The three delegations agreed to a final draft of the joint declaration on port state control which recognizes that effective action by port state authorities is required to prevent the operation of substandard ships which do not comply with international standards. There was agreement to continue the exchanges of marine safety inspectors among the three countries and to further develop and share information regarding the inspection of commercial ships. An exchange of information took place on efforts to control non-native aquatic organisms in ballast water of foreign-going ships. Support for a proposal at the International Maritime Organization to ensure the continued financing of the North Atlantic Ice Patrol program was also discussed.

Maritime Statistics

The Group acknowledged the recent release of the 416 page report entitled "North American Transportation in Figures". The extensive report was prepared by the North American Transportation Statistics Project working group consisting of representatives from the 3 NAFTA countries.

Maritime Liability and Insurance

The Group was apprised of the proposed Canadian Marine Liability Act (Bill S-17) which would adopt a new regime of shipowners’ liability to passengers and a new regime for apportioning liability. However, with the call of an election in Canada, the Bill has been set aside until the next Parliament. Concerning the forthcoming workshop on marine liability regimes to be held in January 2001 under the auspices of the Maritime Transport Committee of the OECD, the Group will try to exchange information on the subject in advance of the meeting. Mexico briefly explained the application of its Navigation Law with respect to liability issues.

Consultation and Communication

The Mexican delegation made a presentation on port privatization in Mexico. The presentation covered the need for change as well as the history and process of the privatization effort in the country. Questions and answers followed.

Canada informed the Group that it had established a NAFTA TCG-5 web-page on the Transport Canada site as a way of opening the channels of communications with industry and other interested parties.

Exchange of Information on Shipping Policy Developments

The Group acknowledged that much of the policy work in each country had been temporarily interrupted due to federal elections during November in Canada and the United States, and as a result of the July 2000 Mexican election that will bring in a new administration to office in December. Nevertheless, each country reported on a range of maritime-related developments.

For example, Canada touched on legislative efforts to reform the Canada Shipping Act and amend the Shipping Conferences Exemption Act. However, both exercises had to be suspended to await the outcome of the federal election. The review of the Canada Transportation Act was discussed and it was mentioned that the election would have no bearing on this process since it is a statutory review under the Act. The Group was apprised of the Canadian industry report entitled, "The Great Lakes - St. Lawrence Waterway: A 20/20 Vision for the Future" which had recently been released.

Mexico reported on new regulations under the Navigation Act dealing with aspects of the operation and use of ships in Mexican waters (cabotage). Further, Mexico mentioned the insurance requirements for ships and liability obligations of ship owners involved in marine incidents in Mexico.

The U.S. reported on the continuing discussions in the U.S. over possible changes to the Carriage of Goods by Sea Act (COGSA). The possibility of tabling amendments in the next session of Congress was mentioned. Also, mentioned as possible business for the next Congress was a replacement for the Harbor Maintenance Tax to finance port dredging and waterway projects, and a solution to safely disposing old ships that pose a hazard to the environment. It was acknowledged that in all likelihood, bills dealing with the ownership and registration of U.S. vessels, Jones Act related bills, and maritime related tax bills would not be passed prior to the November election.

Finally, the Group decided there is a need to reflect on the progress of the Group and to discuss future work prior to the next meeting scheduled to take place in Canada in 2001.

Tentative Agenda for the Next Meeting of TCG-5
October 15-17, 2001
(Ottawa)

MEETING POSTPONED

1. Opening Remarks
2. Marine Safety Issues
3. Presentation(s) by Non-Government Organization (to be arranged)
4. Cargo Liability and Insurance
5. Maritime Statistics
6. Intermodal Transportation
7. Other International Fora
8. Changes in Maritime Legislation
9. Shipping Policy Developments
10. Review Workplan
11. Discuss/Prepare Presentation to Heads of Delegation
12. Other Business