Canadian Free Trade Agreement Exemptions
This section provides detailed information on the key provisions of trade agreements that are most relevant to municipalities. The three most important agreements are: The process of incorporation into Canadian law and ratification can begin immediately after the signing of the agreement and includes the following main steps: TRIPS: The Agreement on Trade-Related Aspects of Intellectual Property Rights. The TRIPS Agreement was negotiated in the Uruguay Round and is the WTO Agreement on Intellectual Property Rights. GATS: General Agreement on Trade in Services, entered into force in January 1995. This is the first multilateral agreement on international trade in services. This Annex presents Canada`s free trade agreements and other trade and investment-related initiatives and negotiations. In particular, the Annex provides an overview of the following: where set-aside or an exemption is used or used, some or all aspects of procurement may not be subject to certain obligations under trade agreements. In such cases, in order to reduce the risk, contract agents should continue to comply as far as possible with the obligations arising from trade agreements and should deviate only where necessary to serve the objective(s) for which the derogation is used or set-aside is applied. Canada`s participation in international trade agreements is governed by a fundamental reality: we must look outwards to achieve our prosperity, because we have an abundance of natural resource production, industrial goods and services, but only a relatively small domestic market. This means that it is crucial for Canada to have access to foreign markets and investment, and to ensure and improve that access through enforceable rules. Section B of Chapter Seven is similar to the WTO SPS Agreement, although there are some differences. The same basic principles apply, i.e. the right to take sanitary and phytosanitary measures; the right to establish an adequate level of protection; the measures must be based on scientific principles (where appropriate on the basis of a risk assessment); be non-discriminatory; must not be unnecessary obstacles or disguised trade restrictions; and transparency (notification and opportunity to comment prior to implementation).
The obligations laid down in Section B of Chapter Seven shall apply to SPS measures taken by agglomerations. In addition, the WTO GPA allows Canadians to compete on an equal footing at the sub-federal level in certain circumstances. In February 2010, Canada and the United States agreed to open access to sub-federal government procurement under WTO GPA rules. In the United States, 37 countries are signatories to the WTO GPA as “sub-central (federal) government entities.” In these countries, Canadians now enjoy free trade protection under the WTO GPA guidelines if the principal value of the contract exceeds the applicable thresholds and no other declared exemptions apply. ITA: Information Technology Agreement. A WTO-backed agreement that has been endorsed by several members and calls for the gradual abolition of most-favoured-nation tariffs on many information technology and telecommunications products. Two international free trade agreements help Canadians compete in U.S. government procurement: Additional rules for trade-distorting subsidies in services sectors are being considered by WTO members, as required by Article XV of the GATS. However, discussions have not progressed significantly and remain focused on fundamental issues, including what constitutes a trade-distorting subsidy in the services context. The guide is a single source of information on Canada`s trade agreements in one place.
As such, it is hoped that it will prove to be a widely used resource and practical planning tool for municipal officials, regardless of their knowledge of the subject. Interprovincial trade is particularly important given that approximately 40% of Canada`s trade takes place within its own borders. This Article also ensures that contracting entities use generally available IT systems when performing contracts electronically, while ensuring that the integrity of requests to participate and calls for tenders is preserved. It also prevents Parties from applying rules of origin to goods or services other than those used in the ordinary course of trade and from requesting, imposing or applying compensation (for example, any condition or obligation that promotes local development or improves a Party`s balance of payments accounts). B the use of national content requirements). Finally, it clarifies that the provisions on non-discrimination do not apply to measures other than the markets covered by Chapter (e.B. they do not apply to customs duties or charges of any kind levied on or in connection with imports). The SPS and TBT agreements contain several common elements, including the requirement of the least trade restriction, transparency and an appropriate procedure in the application of control, inspection and approval procedures. Both conventions also promote the application of international standards, but recognize the legitimacy of derogating from these standards if the WTO Member concerned seeks a higher level of protection than through the application of the international standard (SPS Agreement) or if the international standard would be an ineffective or inappropriate means of achieving the legitimate objectives pursued (TBT Agreement). SPS measures that are not based on an international standard shall be based on a risk assessment, unless there is sufficient scientific evidence to carry out such an assessment.
In the latter case, the Member may adopt an interim measure, but must also take steps to obtain the information necessary to carry out the risk assessment. The list of general exceptions to a trade agreement is usually found in the article on security and general exceptions in the chapter on government procurement; However, some trade agreements, such as the CPTPP, also contain exceptions in a special “Exceptions” chapter. For examples, see: Understanding on Rules and Procedures Governing the Settlement of Disputes: The Agreement Establishing the WTO Dispute Settlement System. This clearly shows that nothing in the GATS prevents governments, whether at the federal, provincial/territorial or local levels, from regulating for the benefit of their citizens. Governments are therefore free to pursue their regulatory objectives and have a wide range of choices in implementing those objectives. Economic Impact The CFTA strives to improve internal trade, a key driver of economic growth. Internal trade accounts for about one-fifth of Canada`s annual GDP, equivalent to about $385 billion annually. The AIT was signed by the federal, provincial and territorial governments (with the exception of Nunavut) in 1994 and came into force in 1995. The AIT was the first pan-Canadian agreement to remove barriers to the free movement of people, goods, services and investment in Canada.
The TBT Convention establishes non-discrimination obligations with regard to technical regulations, standards and conformity assessment procedures. It also requires that such measures be based on international standards, where appropriate, and that they not be prepared, adopted or implemented in a manner that creates unnecessary barriers to international trade. There are several important exceptions and reservations to these provisions that apply to municipalities. For example, the obligations in Chapter Eleven relating to national treatment and performance requirements do not apply to government procurement. Canada has also requested various exemptions and reservations in sensitive areas such as transportation, telecommunications, social services, cultural industries, and minority and Aboriginal affairs. NAFTA also reaffirms the right of the Parties to take and apply environmental measures in accordance with the provisions of Chapter Eleven. Finally, existing local government non-conforming measures in effect on January 1, 1994 are not subject to NAFTA obligations related to national treatment, most-favoured-nation treatment, performance requirements, and senior management and boards of directors. In addition, the preamble to NAFTA explicitly recognizes the parties` intention to “maintain their flexibility to protect the public good.” However, NAFTA requires governments at all levels to follow certain principles, such as non-discrimination, when implementing regulatory measures affecting cross-border trade in services […].
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