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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MARKET ACCESS REPORT OUTLINESCANADA'S TRADE PRIORITIES </title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> April 15, 1998 No. 89 MARKET ACCESS REPORT OUTLINES CANADA'S TRADE PRIORITIES International Trade Minister Sergio Marchi today released the government's report on Canada's priorities for improving access to foreign markets for Canadian businesses. "This report shows just how hard we are working to open doors to the global market for Canadian companies," said Mr. Marchi. "For companies to succeed, trade promotion and trade policy must work hand in hand." Opening Doors to the World: Canada's International Market Access Priorities -- 1998 describes how Canada is seeking improved access for goods, services and investments in key markets including the United States. The report also outlines multilateral, regional and bilateral trade liberalization initiatives. "In 1997, Canadian business had better access to world markets as a result of the important trade liberalization work that took place in multilateral forums," said Mr. Marchi. "However, there is still a long way to go. The world may indeed be a global village but, from a trade perspective, there are still neighbourhoods we cannot enter, streets we cannot travel and stores where we cannot sell our goods." The report notes important market access successes for Canada in 1997, which include a financial services agreement, the Information Technology Agreement, and the Agreement on Basic Telecommunications negotiated at the WTO. These agreements give Canadian companies important new opportunities in the world market. As well, Canada will continue to make use of the WTO dispute settlement system in an effort to resolve some existing trade disputes with other countries. The government will pursue other initiatives to deal with trade and investment barriers erected by Canada's trading partners. Improving market access is a key element of Canada's strategy for assisting Canadian exporters and investors in foreign markets. Market access is one of the government's three priorities for international trade; the other two are trade and development promotion, and investment promotion. The report is available at two Web sites: www.dfait-maeci.gc.ca and www.exportsource.gc.ca. It also may be obtained by contacting the Department of Foreign Affairs and International Trade InfoTech at 1-800-267-8376 (toll-free), or (613) 944-4000 in the Ottawa area. - 30 - A backgrounder with the highlights from the report is attached. For further information, media representatives may contact: Leslie Swartman Office of the Minister for International Trade (613) 992-7332 Media Relations Office Department of Foreign Affairs and International Trade (613) 995-1874 This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca Backgrounder OPENING DOORS TO THE WORLD: CANADA'S INTERNATIONAL MARKET ACCESS PRIORITIES -- 1998 With exports of goods and services now accounting for over 40 percent of Canada's gross domestic product, maintaining and improving access to foreign markets for Canadian exporters and investors is a top priority for the government. Around the globe, tariffs, red tape and other obstacles to commerce are coming down. Canada continues to play a leadership role in moving toward a world in which trade moves freely -- in a manner that promotes Canadian values. However, much remains to be done. Opening Doors to the World: Canada's International Market Access Priorities -- 1998 presents the government's priorities for further improving access for Canadian exporters and investors to key markets. It outlines the range of initiatives the government will pursue this year at the multilateral, regional and bilateral levels, as well as details on specific obstacles to be tackled in several markets. The document also highlights significant market-opening results from 1997 that will bring benefits to Canadian exporters and investors. Market Access Results in 1997 In December, Canada was one of 70 countries that concluded negotiations on a financial services agreement at the World Trade Organization (WTO). The agreement, which covers countries representing over 95 percent of world trade in financial services, will give Canadian financial institutions improved access to key markets in Europe, Asia and Latin America, and should lead to new export and job opportunities in Canada. Canada maintained unrestricted access to the U.S. grain market in the face of political pressure on the U.S. Administration from Congressional representatives for a return to a more restrictive import regime. Japan will reduce its tariffs to zero by 2002 on all distilled spirits products, including Canadian whisky, under the terms of negotiations stemming from the findings of a WTO panel on Japan's liquor-tax regime. Within the framework of the WTO, and under agreements reached with Canada and several other countries, India will phase out import restrictions on a wide range of products of interest to Canadian exporters. Canada and the United States implemented an agreement on trade in sugar and sugar-containing products that gives Canadian exporters of these products assured access to the U.S. market. The Canada-EU Agreement on Humane Trapping Standards restored secure access to the European market for Canadian fur products. This agreement will contribute to increased employment opportunities in many remote northern regions, notably in Aboriginal communities. In November, the 18 Asia-Pacific Economic Cooperation (APEC) member economies agreed to pursue an ongoing program of voluntary liberalization in 15 sectors, covering over $1 trillion in annual imports by APEC members. Several Canadian export priorities are included in the nine "priority" sectors (e.g. forest products, fish and fish products, and environmental goods and services). Canada's Market Access Priorities for 1998 Canada will be active through the full range of activities of the WTO, the cornerstone of the world trading system. Canada also uses, as necessary, the WTO's strengthened dispute settlement mechanism to protect Canadian interests; an example of this is Canada's challenge of Australia's ban on imports of uncooked salmon. Canada is also participating in accession negotiations with China, Chinese Taipei (Taiwan), Russia, Saudi Arabia and other important markets seeking to join the WTO. To ensure that Canada benefits fully from its unique economic relationship with the United States, Canada will: defend access to the U.S. market by exercising its rights under existing trade agreements and by resisting U.S. measures that constrain Canada's access to its most important trading partner; continue to monitor closely and respond to key measures that may distort trade and investment decisions in the North American market; continue to resist the extraterritorial application of U.S. laws; work closely with the United States to enhance co-operation along our common border; continue to advance Canadian market access objectives in other areas, such as services, government procurement, and the application of trade remedies; and work with the United States to complete a Mutual Recognition Agreement on fish inspection systems as soon as possible. To improve opportunities for Canadians to do business throughout the hemisphere, the government will actively engage in negotiations on the Free Trade Area of the Americas, and will work to ensure concrete progress by the turn of the century. Canada will work to finalize plans for trade liberalization in the sectors that APEC leaders and ministers identified at their November 1997 meeting in Vancouver, in a manner that serves as a catalyst for broader liberalization at the WTO. To enhance opportunities for Canadian exporters, Canada will continue to work with Japan to modify a range of measures impeding Canadian exports of agri-food products, and building products and pre-fabricated housing. Canada will continue to seek improved access to the Chinese market, especially in the context of WTO accession negotiations with that country. Turning to Europe, Canada will continue to seek the elimination of a range of European Union tariff and non-tariff barriers affecting Canadian exports such as cereals, canola, asbestos, softwood lumber, and aluminum, while, at the same time, through the Canada-EU Action Plan, it will explore the further development of transatlantic trade relations. Canada is holding discussions on the scope for free trade negotiations with the European Free Trade Association, which includes Norway, Switzerland, Iceland, and Liechtenstein. April 1998 </body> </html>

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