SINT Committee Report

LIST OF RECOMMENDATIONS

Recommendation 1:

That, without excluding other emerging markets, the Government of Canada make China, India, Brazil, and Russia the primary focus of its Emerging Markets Strategy.

Recommendation 2:

That, in the context of Recommendation 1, the government should make every effort to inform Canadian businesses of trade and investment opportunities around the world. Government programs and policies should be flexible and responsive enough to allow businesses to pursue those opportunities, recognizing the laws of those countries and within the framework of corporate social responsibility.

Recommendation 3:

That, without foregoing strategic opportunities elsewhere, the Government of Canada focus its future bilateral free trade negotiating efforts on large economies or regional groupings. These agreements should include open rules of origin requirements and not undermine trade liberalization efforts at the multilateral level. No such negotiations should proceed without first consulting with Canadian stakeholders, including civil society, to ensure that their needs are addressed.

Recommendation 4:

That the Government of Canada vigorously pursue free trade negotiations with the Mercosur regional bloc. NAFTA type investor-state provisions should be excluded from any such agreement.

Recommendation 5:

That the Government of Canada, in consultation with business, explore the need for, and negotiate, foreign investment protection agreements (FIPA) in key emerging markets.

Recommendation 6:

That in its current FIPA negotiations with China and India, and any future negotiations with other countries, the Government of Canada ensure that any final agreement contains meaningful provisions to protect Canadian intellectual property.

Recommendation 7:

That the Government of Canada look for ways to reduce regulatory hurdles between Canada and emerging markets. Where enough common ground exists, and ensuring that Canadian health and safety regulations are maintained and enhanced, mutual recognition agreements should be considered.

Recommendation 8:

That the Government of Canada work to maintain and enforce its completed air service agreements with China and India, and turn its attention to improving air service access to other priority emerging markets, especially Russia and Brazil.

Recommendation 9:

That in any bilateral or multilateral trade negotiations, the Government of Canada seek well-defined, science-based rules that allow countries to address their legitimate sanitary and phytosanitary concerns. Sanitary and phytosanitary concerns should not be used as an illegitimate non-tariff trade barrier.

Recommendation 10:

That, following the recent example with India, the Government of Canada negotiate science and technology agreements with other significant emerging markets, beginning with China, Brazil and Russia.

Recommendation 11:

That the Government of Canada, while respecting the jurisdiction of the provinces, ensure that there is a systematic connection between Canadian university offices for technology transfer, and appropriate international trade officials in Canada and abroad in order to facilitate partnership opportunities for commercialization purposes. Consideration should also be given to organizing missions of university transfer officers to key countries.

Recommendation 12:

That, building on the successful experience of the 2003 Canada-India Science and Technology study on institutional linkages and academic, government and private partnerships, the federal government work with the provinces, the Association of Universities and Colleges Canada, foreign governments and other key actors to map existing linkages and complimentary research interest and strengths in countries of interest in order to develop strategic plans of action for research co-operation between Canada and key nations. China, Russia and Brazil should be the top priority in this regard.

Recommendation 13:

That the Government of Canada conduct a formal review of the Investment Canada Act, to ensure that the Act is effective in delivering on its stated intent — ensuring that foreign investment in Canada serves the national interest. The Investment Canada Act should make certain that foreign investment maximizes the benefit to Canadians, including, but not limited to creating jobs in Canada; building the domestic capital stock; raising productivity levels; and improving research and development capacity. Any investment that is not in the Canadian national interest should be rejected.

Recommendation 14:

That the Government of Canada ensure that the Canadian International Trade Tribunal has the necessary resources to conduct safeguard investigations and that the government use import safeguards as per WTO rules.

Recommendation 15:

That, in accordance with the commitment made in the September 2002 Speech from the Throne, the Government of Canada, in partnership with the provinces and universities, “position Canada as a destination of choice for talented foreign students and skilled workers by more aggressively selecting and recruiting through universities and in key embassies abroad.” To that end, the government should follow the examples of the United Kingdom and Australia, which offer prestigious scholarships to foreign students.

Recommendation 16:

That the Government of Canada examine ways to improve the visa acceptance rates of foreign students looking to study in Canada.

Recommendation 17:

That the Government of Canada draft legislation under which Canadian companies operating abroad should continue to be subject to Canadian laws as they pertain to human rights.

Recommendation 18:

That the Government of Canada incorporate a social responsibility pillar (i.e., human and social rights, and environmental protection) into its Emerging Markets Strategy and, more generally, should also attach stronger conditions related to corporate social responsibility to its trade and investment assistance programs.

Recommendation 19:

That the Department of Foreign Affairs and International Trade work with the Canadian International Development Agency to identify aid projects in CIDA’s target developing countries where Canadian expertise could contribute. This information should then be made publicly available as part of the initiative outlined in Recommendation 21.

Recommendation 20:

That the Government of Canada employ a whole-of-government approach to its Emerging Markets Strategy. This involves adopting a clear, coordinated and comprehensive approach to the strategy with all relevant government departments and agencies contributing their expertise to the Minster of International Trade.

Recommendation 21:

That the Government of Canada establish a program whereby its trade officers regularly compile information on project activity by sector in their part of the world. A one-stop information source, combining this project intelligence with that collected under Recommendation 19, should be set up. Project information should be posted on the Internet and a distribution system created that allows Canadian companies to subscribe to receive free updates as new information on projects relevant to their sector becomes available. Canadian trade officers should be provided with all the tools necessary to fulfil this task.

Recommendation 22:

That the Government of Canada ensure that its export-readiness services adequately inform Canadians about the realities of conducting business overseas — both the opportunities and the risks.

Recommendation 23:

That, in an effort to strengthen ministerial and other high-level government relationships, the Government of Canada increase the number and frequency of official visits to priority emerging markets. While visits to China, India, Brazil and Russia should be the highest priority, visits to other emerging markets should also take place as often as possible.

Recommendation 24:

That Canada increase the number of trade missions it sends to its key emerging markets. A combination of larger and smaller missions should occur at least two or three times a year. Smaller missions should focus on specific economic sectors, as business demand warrants.

Recommendation 25:

That the Government of Canada consult with businesses and business associations on a regular basis to determine in which countries other than China, India, Brazil and Russia — and in which economic sectors — trade missions would be most beneficial. These missions would be secondary in priority to those outlined in Recommendation 24.

Recommendation 26:

That the Government of Canada consult with participants on its recent trade missions to China, India and Brazil for their views on how future such missions could be improved.

Recommendation 27:

That the Government of Canada launch an outreach campaign that actively encourages government and/or business leaders from emerging markets to visit Canada as frequently as possible. Canadians active in the region should also be invited to participate.

Recommendation 28:

That, given the gaps identified by this report, the Government of Canada review the scope and mandates of its trade- and investment-support programs and make any necessary changes.

Recommendation 29:

That, given the cancellation of the Program for Export Market for Industry (PEMD-Industry), the Government of Canada consider establishing a program to provide support to small- and medium-sized enterprises to cope with the costs and risks associated with conducting business in emerging markets.

Recommendation 30:

That, notwithstanding the recent increase in funding contained in the 2005 Budget to enhance Canada’s overseas presence, additional resources are needed to further expand the on-the-ground support for Canadian businesses in emerging markets.

Recommendation 31:

That the Government of Canada extend the length of term of international postings for its trade officers in China, India, Brazil, and Russia to a period of five years.

Recommendation 32:

That the Government of Canada review its visa application and approval process with a view to expediting the process. As part of this review, the government should ensure that adequate visa application services are available in the highest-traffic and/or more central cities.

Recommendation 33:

That the Government of Canada establish a clear and explicit list of required documents for business visa applicants, taking into account security and safety considerations.

Recommendation 34:

That the Government of Canada establish a “fast track” process for repeat business visa applicants. Under such a process, candidates would undergo a thorough preliminary screening, but once approval and a visa were granted for the first visit, subsequent visas would be guaranteed expedited clearance.

Recommendation 35:

That the Government of Canada consider establishing a “fast track” program similar to that outlined in Recommendation 34 for companies that frequently send businesspeople to Canada. Under such a program, firms that undergo a preliminary screening and exhibit a good track record would receive expedited clearance to regularly send employees or representatives to Canada on temporary business visas. These individuals could vary from trip to trip, provided they all met Canadian immigration requirements.

Recommendation 36:

That the Government of Canada review the list of countries from which it requires an entry visa, and remove visa requirements where unnecessary. By so doing, the government can free up staff resources that can be redeployed to countries where the need is greater.

Recommendation 37:

That the Government of Canada establish an “innovation centre” within Canada — a venue in which Canadian companies can showcase their new products and technologies.

Recommendation 38:

That the Government of Canada lift the current borrowing limit in place on ports.

Recommendation 39:

That the Government of Canada consult with the various Canadian Port Authorities, transportation associations and other stakeholders to ensure that capacity at Canada’s ports and all related transportation infrastructure is adequate to meet the demands arising from increased trade with emerging markets. In addition, the government should re-examine its infrastructure support programs with a view to making ports eligible for funding.

Recommendation 40:

That the Government of Canada invest in border infrastructure to increase the capacity of its border crossings. It must also improve government policy coordination with regard to border issues. A single department or agency should be directly responsible for all border activity.

Recommendation 41:

That, in the interests of increasing the international competitiveness of Canadian industries by promoting productivity-enhancing investment, the Government of Canada review its capital cost allowance rates.

Recommendation 42:

That the Government of Canada reform its foreign tax credit system to allow project-based companies to retain the use of their unused tax credits accumulated in one country for application against taxation in another country in the following year.

Recommendation 43:

That, in order to meet the opportunities and challenges associated with emerging markets — both in terms of export competitiveness and the adjustment within Canada to outside competitive pressures — the Government of Canada ensure that R&D support is sufficient and easily accessible. Funds for any given R&D initiative should be delivered out of a single access point within government.

Recommendation 44:

That the repayment obligations of the Technology Partnerships Canada program be extended to allow companies to spend more money on commercialization.