FAIT Committee Report
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LIST OF RECOMMENDATIONS
Recommendation 1:
That the Government of Canada work aggressively within the WTO to achieve measurable progress towards the reduction and/or elimination of remaining industrial tariffs.
Recommendation 2:
That Canada thoroughly assess the existing proposal to include a "development box" in the WTO Agreement on Agriculture, and make its findings public.
Recommendation 3:
That Canada assume a leadership role in promoting access for developing countries to the markets of the developed world. To that end, Canada should make unilateral concessions in improving access to the Canadian market for products originating in these countries. The federal government should also explore the need to provide transitional assistance to the domestic industries and/or workers affected by this measure.
Recommendation 4:
That the federal government energetically support special and differential treatment provisions for developing countries that provide those countries with a more flexible timeframe for implementing WTO agreements. In negotiating this position at the WTO, Canada should also seek clear and equitable rules for how such an entitlement is determined in order that countries not qualify for special treatment in cases where it is not warranted.
Recommendation 5:
That the federal government take a leading-edge role in providing trade-related technical assistance to developing countries. With a view to finding the most effective way to do so, the federal government should also commit to increasing its contribution to capacity-building programs.
Recommendation 6:
That Canada continue to promote its position at the WTO that calls for any modification of the existing compulsory licensing arrangement to not restrict developing countries without access to appropriate manufacturing capacity from importing generic medications in the event of public health emergencies. Canada should also promote the establishment of a dedicated international fund to help developing countries without access to such generic drugs to purchase them.
Recommendation 7:
That the Government of Canada unilaterally eliminate all remaining tariff and quota restrictions on imports from least-developed countries, save those on supply-managed agricultural products. In implementing this initiative, the federal government should do its utmost to discourage the transhipment of goods from countries remaining under quota restraint. The market access undertaking should be completed as soon as possible and certainly not later than December 31, 2002.
Recommendation 8:
That, given the reality that the bulk of the economic costs associated with the Government of Canada’s proposal to provide full market access to least-developed countries will be borne disproportionately by a limited number of industries, the federal government establish a transitional assistance program for those industries affected and/or for their workers.
Recommendation 9:
That the Government of Canada actively seek the support of other WTO Members for revising the Dispute Settlement Understanding to make compensation mandatory if compensation is requested by the aggrieved Member in lieu of authorization to suspend equivalent concessions, in
instances of non-compliance with panel decisions. Non-conforming anti-dumping and countervailing duties should have to be completely refunded.
Recommendation 10:
That the federal government seek WTO consensus on clarifying the guidelines governing implementation of WTO rulings. In particular, the Government of Canada should urge Members to support DSU revisions that would expand the scope of arbitration under Article 21.3, and that would clarify the relationship between Articles 21.5 and 22 to resolve the ongoing sequencing problems.
Recommendation 11:
That, to improve the effectiveness of the WTO dispute settlement system, the Government of Canada actively encourage other WTO Members to implement an aggressive internal mediation process within the WTO to resolve disputes at an early stage in the process. Failing this, access to outside mediation should be explored.
Recommendation 12:
That the federal government urge WTO Members to review the composition of panels and the Appellate Body, as well as the need for rules of evidence and dissenting opinions. Furthermore, a remand authority for the Appellate Body should be considered to assist in the correction of errors made by panels.
Recommendation 13:
That, in order to enhance the transparency of the WTO’s dispute settlement system, the federal government activate an aggressive campaign to achieve consensus among WTO Members to open WTO dispute settlement proceedings to the public and to require that all Members make their submissions to WTO dispute settlement panels public.
Recommendation 14:
That the Government of Canada push for a formal WTO procedure for the submission of amicus curiae briefs, but that their consideration and acceptance be at the sole discretion of the relevant panel or the Appellate Body.
ANTI-DUMPING, SUBSIDIES AND COUNTERVAIL MEASURES
Recommendation 15:
That the federal government seek a thorough clarification and strengthening of the WTO’s trade remedy rules, with the stated objective of curbing the disturbing rise in protectionist abuses. Special focus should be placed on reforming current WTO anti-dumping rules to impose fundamental constraints on trade protectionism.
Recommendation 16:
That the Government of Canada undertake a thorough examination of its own anti-dumping rules, including any required changes stemming from the outcome of the WTO negotiations.
Recommendation 17:
That the federal government seek WTO consensus to have the WTO Agreement on Agriculture stipulate that export subsidies in agriculture be immediately eliminated. The government should encourage the WTO to examine countries’ use of export credits, export promotion activity and food aid to ensure that these do not embody any subsidy component.
Recommendation 18:
That the WTO Agreement on Agriculture be altered to dramatically restrict the provision by Members of production- or trade-distorting domestic support. In this reform effort, serious consideration should be given to establishing maximum limits on support that distorts production or trade; eliminating the blue box category of domestic subsidies and clarifying green box support programs to ensure that they have no production- or trade-distorting effects.
Recommendation 19:
That, in an effort to improve market access as part of the WTO’s negotiations on agriculture, the Government of Canada advocate the establishment of a product-specific minimum access requirement of 5% using the most recently available consumption period as a base period. Clear and binding rules should govern the administration of the tariff rate quotas. Moreover, all in-quota tariffs should be abolished and those not protecting a tariff rate quota markedly reduced. A negotiated phase-in of import access level increases should also be implemented in parallel with the implementation and enforcement of new market access rules.
Recommendation 20:
That the federal government undertake, and render public, an examination of the impact of Canada’s existing commitments under the GATS on the effective provision by Canadian governments of health, education and social services and on the Canadian regulatory structure affecting them. This study should be updated once the WTO negotiations on services are nearing completion.
Recommendation 21:
That the Government of Canada ensure its ability to preserve and promote cultural diversity by accelerating its efforts to achieve the desired New International Instrument on Cultural Diversity.
INVESTMENT AND COMPETITION POLICY
Recommendation 22:
That the Government of Canada diligently strive to attain WTO consensus on the importance of creating a comprehensive international agreement to protect investment. Investor-state provisions should be excluded from the agreement.
Recommendation 23:
That the federal government urgently examine recent environment-related decisions at the WTO Appellate Body in an effort to determine the extent to which WTO case law has evolved and whether or not there is a pressing
need for negotiations on the relationship between the trade obligations contained in Multilateral Environmental Agreements and existing WTO rules.
Recommendation 24:
That Canada actively pursue at the WTO, the reduction of barriers to trade in the environmental goods and services industry. In negotiating this position at the WTO, Canada should also be mindful of the potential limitations that barriers to trade in services may have on the ability of Canadian firms to offer product support and after-sales services for their environmental products.
Recommendation 25:
That to eliminate ambiguity on the subject of bulk water exports, the federal government conclusively demonstrate to Canadians its legal understanding of how the Doha negotiating mandate does not compromise its position that no such export from Canada is permitted. Furthermore, Canadian negotiators should ensure that no ambiguity exists on Canada’s position on this subject during the forthcoming round of trade negotiations. Finally, upon the conclusion of the negotiations, the federal government should provide to all Canadians its legal interpretation of any negotiated agreement in order to minimize any further misunderstandings.
Recommendation 26:
That the Government of Canada actively and with renewed urgency continue its efforts to achieve WTO consensus on the establishment of a permanent WTO parliamentary mechanism to provide closer association of Members of Parliaments and elected officials with the work of the WTO, and in connecting the WTO with citizens and the global public. Issues to be addressed in designing such a mechanism include: how to structure and finance the organization; how to determine representation; and how to define its institutional links with the WTO.
Recommendation 27:
That the Government of Canada revisit this Sub-Committee’s Recommendation 14 contained in its June 2001 report on Canada-Europe Economic Relations (Crossing The Atlantic: Expanding The Economic Relationship Between Canada And Europe) and work together with like-minded countries to encourage the WTO to craft and employ more formal, efficient and effective decision-making procedures within its organization. Separate procedures should be developed to cover both administrative (i.e., process) decisions and those involving trade issues.
Recommendation 28:
That the federal government propose to WTO Members that the International Labour Organization and the United Nations Environment Programme be allowed to contribute their specialized expertise to the negotiating process.
Recommendation 29:
That the Government of Canada promote the injection of clauses within WTO agreements that would tie countries’ access to the benefits from WTO membership to proven respect for democratic rights.