TRADE
“We will ensure full and effective implementation of the
Uruguay Round results according to the agreed timetables.”
(22)
Grade: 0
Background:
World Trade Organization (WTO) encompasses the GATT, as modified by
the Uruguay Round, all agreements and arrangements concluded under its
auspices and the complete results of the Uruguay Round;
Its structure is headed by a Ministerial Conference meeting at least once
every two years;
A General Council oversees the operation of the agreement and
ministerial decisions on a regular basis;
“The Final Act of Embodying the Results of the Uruguay Round of
Multilateral Trade Negotiations”, signed by ministers in Marrakesh on 15 April
1994… contains legal texts which spell out the results of the negotiations
since the Round was launched in Punta del Este, Uruguay, in September
1986.
(Source: World Trade
Organization)
Details:
The Trade Policy Review (TPR) Body of the WTO conducts regular
reviews of member countries' trade policies. On November 18-19/96 this body
conducted its fourth review of Canada's trade policies.
The following was derived from the Concluding Remarks from the Chairperson
(source: WTO Secretariat):
Main conclusion of Chairperson: “Members fully acknowledged the
export-driven growth in the Canadian economy over the past two years, the
liberalization in certain sectors, and the various initiatives to review and update
trade policy mechanisms. However, a number of concerns had been expressed
at earlier reviews remain. These include continuing high levels of protection in
the agricultural sector, the large number of anti-dumping measures still in force,
and the problems of ensuring that policies shaped at federal level were fully
carried through at sub-federal level. Other issues that received emphasis were
remaining restrictions in the services sector and the manner of implementation of
the Agreement on Textiles and Clothing.”
members recognized “Canada's strong support for the multilateral trading
system” and “noted Canada's progress in implementing and consolidating WTO
agreements which has contributed to a more liberal trade regime in several
areas.”
Canada representative emphasized that Canadian performance in the tariff
area was better than the TPR report indicated – “across all imports, the trade-
weighted applied tariff averaged only 1.6 per cent. Referring to the gap between
m.f.n. and preferential rates, he noted that the movement towards global free
trade would reduce such gaps; Canada remained ready to support further
multilateral tariff liberalization.”
Canadian steps towards liberalization in agriculture was an area where
members sought clarification and further action
members critical of Canada's high m.f.n. in textiles and clothing
appreciation showed for Canada's “…deregulation in some of the largest and
previously most protected, service sectors of the Canadian economy” like
financial services, telecommunications and air transport
Canadian response to TPR comments:
on agriculture: most contentious issue: Canada emphasized that
“Canada's current tariff quota system reflected its Uruguay Round concessions
on agriculture. With regard to further WTO discussions on agriculture, he said
that Canada fully supported a programme of analysis and information exchange
within the WTO on agricultural trade-policy matters, not limited to market-access
questions, with a view to preparing for the eventual resumption of negotiations
foreseen in the Agreement on Agriculture.”
on textiles and clothing:, “Canada had fully implemented its
commitments in the first phase of integration under the Agreement on Textiles
and Clothing.”
on financial services: “Canada had long pursued liberalization in
financial services, transportation and telecommunication services.”
Some points from Press Release entitled “Canada's domestic and
external reforms help create stronger base for economic expansion” 11
November 1996 prior to the WTO Trade Policy Review:
“full bilateral tariff elimination, except for certain farm items, is scheduled for
1998. These reductions must be seen in the light of an ongoing general
reduction of Canadian tariffs, including m.f.n. tariffs, in line with WTO obligations,
and improvement in the General Preferential Tariff.” (Press Release entitled,
“Canada's domestic and external reforms help create stronger base for
economic expansion” 11 November 1996)
under WTO agreements and budgetary constraints expenditure on
agriculture has been reduced by 20% since 1994
Some points from 30th Quadrilateral Trade Ministers' Meeting in
Toronto, April 30-May 2, 1997
Statement by Minister for International Trade, Art Eggleton:
recalling the Singapore Ministerial Conference in December 1996, Eggleton
said the ministers “affirmed…strong support for the WTO as a forum for ongoing
liberalization, consultation and discussion, and examined in detail
implementation of the Uruguay Round agreements, the current work program of
the WTO, including both the pre-existing built-in agenda and addition, work
assisgned to the WTO at Singapore, and prospects for future progress.”
ministers welcomed WTO Financial Services Committee timetable aimed at
completing relaunched negotiations by mid-December
Art Eggleton ‘s Opening Statement to the Singapore Ministerial
Conference of the WTO December 9, 1996 :
Canadian support of appplication of WTO rules to “ecolabelling” and a
thorough examination of nexus between environmental and trade agreements.”
Canada proposed a 1997 meeting to enhance provision of technical
assistance re: developing countries
Analysis:
For the most part, the Canadian government has reaffirmed on several
occasions its general support of the WTO Uruguay Round agreement and its
intention to comply with the commitments in good faith and within the specified
timetables. Minister for International Trade Art Eggleton summed up the
pervasive Canadian position when he stated at the WTO Ministerial meeting in
Singapore, December 1996: “Although trade policies and regulations have
become more transparent through the trade policy review mechanism, WTO
members still have much room to improve, particularly with notification of
national measures and the timely provision of public access to WTO documents”
and “I believe we should continue our efforts to further reduce tariffs, to
accelerate the tariff cuts contained in the Marrakesh schedules, and to broaden
the number of zero for zero agreements, including oilseeds and aluminum.”
While the Trade Policy Review Body has repeatedly criticized the Canadian
government for slow progress in areas like agriculture, the Canadian approach in
certain contentious areas (particularly domestically) appears to be a cautious
and steady one. Canadian representatives at the WTO have defended this
approach and pointed to general Canadian compliance with specific Uruguay
Round agreements. As Canada is in the process of completion and
implementation of the Uruguay Round results, the grade designated here is 0.
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