WT/TPR/S/314/Rev.1 30 September 2015 (15
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WT/TPR/S/314/Rev.1 30 September 2015 (15-5021) Page: 1/177 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT CANADA Revision This report, prepared for the tenth Trade Policy Review of Canada, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Canada on its trade policies and practices. Any technical questions arising from this report may be addressed to Angelo Silvy (tel: 022/739 5249), Denby Probst (tel: 022/739 5847), and Nelnan Koumtingue (tel: 022/739 6252). Document WT/TPR/G/314/Rev.1 contains the policy statement submitted by Canada. Note: This report was drafted in English. WT/TPR/S/314/Rev.1 • Canada - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 12 1.1 Real Sector and Structural Reform .............................................................................. 12 1.2 Fiscal Policy ............................................................................................................. 17 1.3 Monetary and Exchange Rate Policy ............................................................................ 18 1.4 Balance of Payments ................................................................................................. 19 1.5 Developments in Trade .............................................................................................. 21 1.5.1 Merchandise trade ................................................................................................. 21 1.5.1.1 Composition of trade ........................................................................................... 21 1.5.1.2 Direction of trade ................................................................................................ 23 1.5.2 Trade in services ................................................................................................... 25 1.6 Foreign Direct Investment ......................................................................................... 27 1.7 Outlook ................................................................................................................... 29 2 TRADE AND INVESTMENT REGIME ............................................................................ 30 2.1 General Framework .................................................................................................. 30 2.1.1 New developments ................................................................................................. 31 2.2 Trade Policy Objectives ............................................................................................. 32 2.3 Trade Agreements and Arrangements .......................................................................... 35 2.3.1 Participation in the WTO ......................................................................................... 35 2.3.2 Regional and preferential agreements ....................................................................... 35 2.3.2.1 Reciprocal trade agreements................................................................................. 36 2.3.2.2 Unilateral preferential regimes .............................................................................. 38 2.3.3 Other agreements and arrangements ........................................................................ 39 2.3.3.1 Trade with Australia and New Zealand .................................................................... 39 2.3.3.2 Anti-counterfeiting Trade Agreement ..................................................................... 39 2.4 Investment Regime .................................................................................................. 39 2.4.1 Investment framework and agreements .................................................................... 39 2.4.2 Investment Canada Act .......................................................................................... 39 2.4.3 Other Investment Restrictions ................................................................................. 41 2.4.4 Investment promotion ............................................................................................ 42 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 44 3.1 Measures Directly Affecting Imports ............................................................................ 44 3.1.1 Customs procedures and requirements ..................................................................... 44 3.1.2 Customs valuation ................................................................................................. 47 3.1.3 Rules of origin ....................................................................................................... 48 3.1.4 Tariffs .................................................................................................................. 49 3.1.4.1 Applied MFN rate ................................................................................................ 49 3.1.4.2 WTO bindings ..................................................................................................... 53 3.1.4.3 Preferential tariffs ............................................................................................... 53 WT/TPR/S/314/Rev.1 • Canada - 3 - 3.1.4.4 Tariff remission ................................................................................................... 55 3.1.5 Other charges affecting imports ............................................................................... 56 3.1.5.1 The GST/HST and provincial sales taxes ................................................................. 56 3.1.5.2 Excise taxes and duties ........................................................................................ 57 3.1.5.3 Other provincial taxes .......................................................................................... 58 3.1.6 Import prohibitions, restrictions, and licensing ........................................................... 59 3.1.7 Anti-dumping, countervailing, and safeguard measures ............................................... 61 3.1.7.1 Anti-dumping and countervailing measures ............................................................. 61 3.1.7.2 Safeguards ........................................................................................................ 65 3.1.8 Standards and other technical requirements .............................................................. 66 3.1.9 Sanitary and phytosanitary requirements .................................................................. 69 3.2 Measures Directly Affecting Exports ............................................................................. 71 3.2.1 Export procedures and requirements ........................................................................ 71 3.2.2 Export taxes, charges, and levies ............................................................................. 72 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 72 3.2.4 Export support and promotion ................................................................................. 73 3.2.5 Export finance, insurance, guarantees ...................................................................... 75 3.3 Measures Affecting Production and Trade ..................................................................... 77 3.3.1 Business framework and incentives .......................................................................... 77 3.3.1.1 Business framework ............................................................................................ 77 3.3.2 Incentives and subsidies ......................................................................................... 78 3.3.3 Competition policy and price controls ........................................................................ 79 3.3.3.1 Main regulatory and institutional framework ............................................................ 79 3.3.3.2 International cooperation ..................................................................................... 81 3.3.3.3 Price controls ..................................................................................................... 83 3.3.4 State trading, state-owned enterprises, and privatization............................................. 83 3.3.4.1 Stated trading enterprises .................................................................................... 83 3.3.4.2 Federal crown corporations ................................................................................... 84 3.3.4.3 Other entities that operate with federal government participation ............................... 88 3.3.4.4 Provincial crown corporations and government enterprises ........................................ 89 3.3.5 Government procurement ....................................................................................... 90 3.3.5.1 Overview ........................................................................................................... 90 3.3.5.2 Developments ...................................................................................................