Canada-Chile Free Trade Agreement
[ Index
Annex I
Reservations for Existing Measures and
Commitments (Chapters G and H)
(Continued)
Annex I
Schedule of Canada
Sector: | Agriculture |
Sub-Sector: | |
Industry Classification: | |
Type of Reservation: |
National Treatment (Article G-02) |
Level of Government: |
Federal |
Measures: | Farm Credit
Corporation Act, S.C. 1993, c. 14 |
Description: |
Investment
Loans by the Farm Credit Corporation may be made only to:
- individuals who are Canadian citizens or permanent residents;
- corporations related to farming in Canada controlled by Canadian citizens
or permanent residents; or
- cooperative farm associations, all members of which are Canadian citizens
or permanent residents.
| Phase-Out: | None
|
Sector: | All Sectors
| Sub-Sector:
| Industry Classification:
| Type of Reservation: | National Treatment
(Articles G-02, H-02)
Most-Favoured Nation Treatment (Articles G-03, H-03)
Local Presence (Article H-05)
Performance Requirements (Article G-06)
Senior Management and Boards of Directors (Article G-07)
| Level of Government: | Provincial
| Measures: | All existing non-conforming
measures of all provinces and territories
| Description:
| Phase-Out: | None
|
Sector: | All
Sectors
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: | National Treatment
(Article G-02)
Performance Requirements (Article G-06)
Senior Management and Boards of Directors (Article G-07)
| Level of Government: | Federal
| Measures: | Investment Canada Act,
R.S.C. 1985, c. 28 (1st Supp.) Investment Canada Regulations,
SOR/85611
As qualified by paragraphs 8 through 12 of the Description element
| Description: |
Investment
1. Under the Investment Canada Act, the following acquisitions of
Canadian businesses by "non-Canadians" are subject to review by the Director of
Investments:
- all direct acquisitions of Canadian businesses with assets of
C$5 million or more;
- all indirect acquisitions of Canadian businesses with assets of C$50
million or more; and
- indirect acquisitions of Canadian businesses with assets between C$5
million and C$50 million that represent more than 50 percent of the value of
the assets of all the entities the control of which is being acquired,
directly or indirectly, in the transaction in question.
2. A "non-Canadian" is an individual, government or agency thereof or an
entity that is not "Canadian". "Canadian" means a Canadian citizen or permanent
resident, government in Canada or agency thereof or Canadian-controlled entity
as provided for in the Investment Canada Act.
3. In addition, specific acquisitions or new businesses in designated types
of business activities relating to Canada's cultural heritage or national
identity, which are normally notifiable, may be reviewed if the Governor in
Council authorizes a review in the public interest.
4. An investment subject to review under the Investment Canada Act may
not be implemented unless the Minister responsible for the Investment Canada
Act advises the applicant that the investment is likely to be of net benefit
to Canada. Such a determination is made in accordance with six factors described
in the Act, summarized as follows:
- the effect of the investment on the level and nature of
economic activity in Canada, including the effect on employment, on the
utilization of parts, components and services produced in Canada, and on
exports from Canada;
- the degree and significance of participation by Canadians in the
investment;
- the effect of the investment on productivity, industrial efficiency,
technological development and product innovation in Canada;
- the effect of the investment on competition within any industry or
industries in Canada;
- the compatibility of the investment with national industrial, economic
and cultural policies, taking into consideration industrial, economic and
cultural policy objectives enunciated by the government or legislature of
any province likely to be significantly affected by the investment; and
- the contribution of the investment to Canada's ability to compete in
world markets.
5. In making a net benefit determination, the Minister, through the Director
of Investments, may review plans under which the applicant demonstrates the net
benefit to Canada of the proposed acquisition. An applicant may also submit
undertakings to the Minister in connection with any proposed acquisition which
is the subject of review. In the event of noncompliance with an undertaking by
an applicant, the Minister may seek a court order directing compliance or any
other remedy authorized under the Act.
6. Non-Canadians who establish or acquire Canadian businesses, other than
those described above, must notify the Director of Investments.
7. The Director of Investments will review an "acquisition of control", as
defined in the Investment Canada Act, of a Canadian business by an
investor of Chile if the value of the gross assets of the Canadian business is
not less than the applicable threshold.
8. The review threshold applicable to investors of Chile, calculated as set
out in the Phase-Out element, is higher than those described in paragraph
1. However, this higher review threshold does not apply in the following
sectors: uranium production and ownership of uranium producing properties;
financial services; transportation services; and cultural businesses.
9. Notwithstanding the definition of "investor of a Party" in Article G-39,
only investors who are nationals, or entities controlled by nationals as
provided for in the Investment Canada Act, of Chile may benefit from the
higher review threshold.
10. An indirect "acquisition of control" of a Canadian business by an
investor of Chile is not reviewable.
11. Notwithstanding Article G-06(1), Canada may impose requirements, or
enforce any commitment or undertaking, in connection with the establishment,
acquisition, expansion, conduct or operation of an investment of an investor of
Chile or of a non-Party for the transfer of technology, production process or
other proprietary knowledge to a national or enterprise, affiliated to the
transferor, in Canada, in connection with the review of an acquisition of an
investment under the Investment Canada Act.
12. Except for requirements, commitments or undertakings relating to
technology transfer as set out in paragraph 11, Article G-06(1) shall apply to
requirements, commitments or undertakings imposed or enforced under the
Investment Canada Act. Article G-06(1) shall not be construed to apply to
any requirement, commitment or undertaking imposed or enforced in connection
with a review under the Investment Canada Act, to locate production,
carry out research and development, employ or train workers, or to construct or
expand particular facilities, in Canada.
| Phase-Out: | For investors of Chile, the
applicable threshold for the review of a direct acquisition of control of a
Canadian business will be $168 million dollars for the year 1996 and for
each year thereafter the amount determined by the Minister in January of
that year arrived at by using the following formula:
Annual Adjustment =
Current Nominal GDP
at Market Prices
---------------------- x
amount determined for
Previous Year Nominal GDP previous year
at Market Prices
"Current Nominal GDP at Market Prices" means the average of the Nominal Gross
Domestic Products at Market Prices for the most recent four consecutive
quarters.
"Previous Year Nominal GDP at Market Prices" means the average of the Nominal
Gross Domestic Product for the four consecutive quarters for the comparable
period in the year preceding the year used in calculating the "Current Nominal
GDP at Market Prices".
The amounts determined in this manner will be rounded to the nearest million
dollars.
|
Sector: |
All Sectors
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: | National Treatment
(Article G-02)
Senior Management and Boards of Directors (Article G-07)
| Level of Government: | Federal
Provincial
| Measures: |
As set out in the Description element
| Description: |
Investment
Canada or any province, when selling or disposing of its equity interests in,
or the assets of, an existing state enterprise or an existing governmental
entity, may prohibit or impose limitations on the ownership of such interests or
assets, and on the ability of owners of such interests or assets to control any
resulting enterprise, by investors of the other Party or of a non-Party or their
investments. With respect to such a sale or other disposition, Canada or any
province may adopt or maintain any measure relating to the nationality of senior
management or members of the board of directors.
For purposes of this reservation:
- any measure maintained or adopted after the date of entry into
force of this Agreement that, at the time of sale or other disposition,
prohibits or imposes limitations on the ownership of equity interests or
assets or imposes nationality requirements described in this reservation
shall be deemed to be an existing measure; and
- "state enterprise" means an enterprise owned or controlled through
ownership interests by Canada or a province and includes an enterprise
established after the date of entry into force of this Agreement solely for
the purposes of selling or disposing of equity interests in, or the assets
of, an existing state enterprise or governmental entity.
| Phase-Out: | None
|
Sector: |
All Sectors
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: | National Treatment
(Article G-02)
| Level of Government: |
Federal
| Measures: | Canada Business
Corporations Act, R.S.C. 1985, c. C44
Canada Corporations Act, R.S.C. 1970, c. C32
Canada Business Corporations Act Regulations, SOR/79316
| Description: | Investment
"Constraints" may be placed on the issue, transfer and ownership of shares in
federally incorporated corporations. The object is to permit corporations to
meet Canadian ownership requirements, under certain laws set out in the
Canada Business Corporations Act Regulations, in sectors where Canadian
ownership is required as a condition to operate or to receive licenses, permits,
grants, payments or other benefits. In order to maintain certain "Canadian"
ownership levels, a corporation is permitted to sell shareholders' shares
without the consent of those shareholders, and to purchase its own shares on the
open market. "Canadian" is defined in the Canada Business Corporations Act
Regulations.
| Phase-Out: |
None
|
Sector: |
All Sectors
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: | Senior Management
and Boards of Directors (Article G-07)
| Level of Government: | Federal
| Measures: |
| Description: |
Canada Business Corporations Act, R.S.C. 1985, c. C-44
Canada Business Corporations Act Regulations, SOR/79-316
Canada Corporations Act, R.S.C. 1970, c. C-32
Special Acts of Parliament incorporating specific companies
Investment
The Canada Business Corporations Act requires that a simple majority
of the board of directors, or of a committee thereof, of a
federally-incorporated corporation be resident Canadians. For purposes of the
Act, "resident Canadian" means an individual who is a Canadian citizen
ordinarily resident in Canada, a citizen who is a member of a class set out in
the Canada Business Corporations Act Regulations, or a permanent resident
as defined in the Immigration Act other than one who has been ordinarily
resident in Canada for more than one year after he became eligible to apply for
Canadian citizenship.
In the case of a holding corporation, not more than one-third of the
directors need be resident Canadians if the earnings in Canada of the holding
corporation and its subsidiaries are less than five percent of the gross
earnings of the holding corporation and its subsidiaries.
Under the Canada Corporations Act, a simple majority of the elected
directors of a Special Act corporation must be resident in Canada and citizens
of a Commonwealth country. This requirement applies to every joint stock company
incorporated subsequent to June 22, 1869 by any Special Act of Parliament.
| Phase-Out: | None
|
Sector: |
All Sectors
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: | National Treatment
(Article G-02)
| Level of Government: | Federal
| Measures: | Citizenship Act, R.S.C.
1985, c. C29
Foreign Ownership of Land Regulations, SOR/79-416
| Description: |
Investment
The Foreign Ownership of Land Regulations are made pursuant to the
Citizenship Act and the Alberta Agricultural and Recreational Land
Ownership Act. In Alberta, an ineligible person or foreign-owned or
controlled corporation may only hold an interest in controlled land consisting
of not more than two parcels containing, in the aggregate, not more than 20
acres. An "ineligible person" is:
- an individual who is not a Canadian citizen or permanent
resident;
- a foreign government or agency thereof; or
- a corporation incorporated elsewhere than in Canada.
"Controlled land" means land in Alberta but does not include:
- land of the Crown in right of Alberta;
- land within a city, town, new town, village or summer village; and
- mines or minerals.
| Phase-Out: | None
|
Sector: |
All Sectors
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: | National Treatment
(Article G-02)
| Level of Government: | Federal
| Measures: | Air Canada Public
Participation Act, R.S.C. 1985, c. 35 (4th Supp.)
PetroCanada Public Participation Act, S.C. 1991, c. 10
Canadian Arsenals Limited Divestiture Authorization Act, S.C. 1986, c.
20
Eldorado Nuclear Limited Reorganization and Divestiture Act, S.C.
1988, c. 41
Nordion and Theratronics Divestiture Authorization Act, S.C. 1990, c.
4
| Description: |
Investment
A "nonresident" may not own more than a specified percentage of the voting
shares of the corporation to which each Act applies. For each company the
restriction is as follows:
Air Canada: 25 per cent
PetroCanada Inc: 25 per cent
Canadian Arsenals Limited: 25 per cent
Eldorado Nuclear Limited: 5 per cent
Nordion Limited: 25 per cent
Theratronics Limited: 49 per cent
"Nonresident" generally means:
- an individual, other than a Canadian citizen, who is not
ordinarily resident in Canada;
- a corporation incorporated, formed or otherwise organized outside Canada;
- the government of a foreign State or any political subdivision thereof,
or a person empowered to perform a function or duty on behalf of such a
government;
- a corporation that is controlled directly or indirectly by nonresidents
as defined in any of paragraphs (a) through (c);
- a trust
- established by a nonresident as defined in any of paragraphs
(b) through (d), other than a trust for the administration of a pension
fund for thebenefit of individuals a majority of whom are residents, or
- in which nonresidents as defined in any of paragraphs (a) through (d)
have more than 50 percent of the beneficial interest; or
- a corporation that is controlled directly or indirectly by a trust
referred to in paragraph (e).
| Phase-Out: | None
|
Sector: |
All Sectors
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: | Local Presence
(Article H-05)
| Level of Government: | Federal
| Measures: |
Export and Import Permits Act, R.S.C. 1985, c. E-19
| Description: | Cross-Border Services
Only individuals ordinarily resident in Canada, enterprises having their head
offices in Canada or branch offices in Canada of foreign enterprises may apply
for and be issued import or export permits or transit authorization certificates
for goods and related services subject to controls under the Export and
Import Permits Act.
| Phase-Out: | None
|
Sector: |
Automotive
| Sub-Sector: |
| Industry Classification: |
| Type of Reservation: |
| Level of Government: |
Performance Requirements (Article G-06)
Federal
| Measures: |
Canada - United States Free Trade Agreement Implementation Act, S.C.
1988, c. 65
| Description: | Investment
Canada may grant waivers of customs duties conditioned explicitly on the
fulfillment of performance requirements:
- to those manufacturers of automotive goods set out in Part One
of Annex 1002.1 of the Canada - United States Free Trade Agreement, in
accordance with the headnote to that Part; and
- for the applicable periods specified in Article 1002(2) of the Canada -
United States Free Trade Agreement to those manufacturers of automotive
goods set out in Part Two of Annex 1002.1 of that Agreement.
| Phase-Out: | - None
- Until January 1, 1998
|
Sector: |
Business Service Industries
| Sub-Sector: | Customs Brokerages and
Brokers
| Industry Classification: | SIC 7794
Customs Brokers
| Type of Reservation: | National Treatment
(Article H-02)
Local Presence (Article H-05)
Senior Management and Boards of Directors (Article G-07)
| Level of Government: | Federal
| Measures: |
Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)
Customs Brokers Licensing Regulations, SOR/86-1067
| Description: | Cross-Border Services
and Investment
To be a licensed customs broker or brokerage in Canada:
- an individual must be a Canadian citizen or permanent
resident;
- a corporation must be incorporated in Canada with a majority of its
directors being Canadian citizens or permanent residents; and
- a partnership must be composed of persons who are Canadian citizens or
permanent residents, or corporations incorporated in Canada with a
majority of their directors being Canadian citizens or permanent
residents.
An individual who is not a licensed customs broker but who transacts business
as a customs broker on behalf of a licensed customs broker or brokerage must be
a Canadian citizen or permanent resident.
| Phase-Out: | None. Subject to discussion
by the Parties two years after the date of entry into force of this
Agreement.
|
Sector: |
Business Service Industries
| Sub-Sector: | Duty Free Shops
| Industry Classification: | SIC 6599 Other
Retail Stores, Not Elsewhere Classified (limited to duty free shops)
| Type of Reservation: | National Treatment
(Articles G-02, H-02)
Local Presence (Article H-05)
| Level of Government: | Federal
| Measures: |
Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)
Duty Free Shop Regulations, SOR/86-1072
| Description: | Cross-Border Services
and Investment
- To be a licensed duty free shop operator at a land border crossing in
Canada, an individual must:
- be a Canadian citizen or permanent resident;
- be of good character;
- be principally resident in Canada; and
- have resided in Canada for at least 183 days of the year preceding the
year of application for the license.
- To be a licensed duty free shop operator at a land border crossing in
Canada, a corporation must:
- be incorporated in Canada; and
- have all of its shares beneficially owned by Canadian citizens or
permanent residents who meet the requirements of paragraph 1.
| Phase-Out: | None
|
Sector: |
Business Service Industries
| Sub-Sector: | Examination Services
relating to the Export and Import of Cultural Property
| Industry Classification: | SIC 999 Other
Services, Not Elsewhere Classified (limited to cultural property examination
services)
| Type of Reservation: | Local Presence
(Article H-05)
| Level of Government: | Federal
| Measures: |
Cultural Property Export and Import Act, R.S.C. 1985, c. C-51
| Description: | Cross-Border Services
Only a "resident of Canada" or an "institution" in Canada may be designated
as an "expert examiner" of cultural property for purposes of the Cultural
Property Export and Import Act. A "resident" of Canada is an individual who
is ordinarily resident in Canada, or a corporation that has its head office in
Canada or maintains one or more establishments in Canada to which employees
employed in connection with the business of the corporation ordinarily report
for work. An "institution" is an institution that is publicly owned and operated
solely for the benefit of the public, that is established for educational or
cultural purposes and that conserves objects and exhibits them.
| Phase-Out: | None
|
Sector: |
Business Service Industries
| Sub-Sector: | Patent Agents and Agencies
| Industry Classification: | SIC 999 Other
Services, Not Elsewhere Classified (limited to patent agency)
| Type of Reservation: | National Treatment
(Article H-02)
Local Presence (Article H-05)
| Level of Government: | Federal
| Measures: |
Patent Act, R.S.C. 1985, c. P-4
Patent Rules, C.R.C. 1978, c. 1250
Patent Cooperation Treaty Regulations, SOR/89-453
| Description: | Cross-Border Services
To represent persons in the presentation and prosecution of applications for
patents or in other business before the Patent Office, a patent agent must be
resident in Canada and registered by the Patent Office.
A registered patent agent who is not resident in Canada must appoint a
registered patent agent who is resident in Canada as an associate to prosecute
an application for a patent.
An enterprise may be added to the patent register provided that it has at
least one member who is also on the register.
| Phase-Out: | None.
|
Sector: | Business Service Industries
| Sub-Sector: | Trade-Mark Agents
| Industry Classification: | SIC 999 Other
Services, Not Elsewhere Classified (limited to trade-mark agency)
| Type of Reservation: | National Treatment
(Article H-02)
Local Presence (Article H-05)
| Level of Government: | Federal
| Measures: |
Trade-Marks Act, R.S.C. 1985, c. T-13
Trade-mark Regulations (1996), SOR/96-195
| Description: | Cross-Border Services
To represent persons in the presentation and prosecution of applications for
trade-marks or in other business before the Trade-Mark Office, a trade-mark
agent must be resident in Canada and registered by the Trade-Mark Office.
A registered trade-mark agent who is not resident in Canada must appoint a
registered trade-mark agent who is resident in Canada as an associate to
prosecute an application for a trade-mark.
| Phase-Out: | None
|
Sector: |
Energy
| Sub-Sector: | Oil and Gas
| Industry Classification: | SIC 071 Crude
Petroleum and Natural Gas Industries
| Type of Reservation: | National Treatment
(Article G-02)
| Level of Government: | Federal
| Measures: | Federal Real Property Act,
R.S.C. 1985, c. F-8.4
Canada Oil and Gas Land Regulations, C.R.C. 1978, c. 1518
| Description: | Investment
This reservation applies to production licences issued with respect to
"frontier lands" and "offshore areas" (areas not under provincial jurisdiction)
as defined in the applicable measures.
Persons who hold oil and gas production licenses or shares therein for
discoveries made after March 5, 1982 must be Canadian citizens ordinarily
resident in Canada, permanent residents or corporations incorporated in Canada.
No production licence may be issued for discoveries made after March 5, 1982
unless the Minister of Energy, Mines and Resources is satisfied that the
Canadian ownership rate of the interestowner in relation to the production
licence on the date of issuance would not be less than 50 per cent.
"Interest-owner" is defined in the Canada Petroleum Resources Act to mean
"the interest holder who owns an interest or the group of interest holders who
hold all the shares of an interest".
The Canadian ownership requirements for oil and gas production licenses for
discoveries made prior to March 5, 1982, are set out in the Canada Oil and
Gas Land Regulations.
| Phase-Out: | None
| Sector: |
Energy
| Sub-Sector: | Oil and Gas
| Industry Classification: | SIC 071 Crude
Petroleum and Natural Gas Industries
| Type of Reservation: | Local Presence
(Article H-05)
Performance Requirements (Article G-06)
| Level of Government: | Federal
| Measures: |
| Description: |
| Phase-out: | Canada Oil and Gas
Production and Conservation Act, R.S.C. 1985, c. O-7, as amended by
Canada Oil and Gas Operations Act, S.C. 1992, c. 35
Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation
Act, S.C. 1988, c. 28
Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987,
c. 3
Measures implementing Yukon Oil and Gas Accord
Measures implementing Northwest Territories Oil and Gas Accord
Cross-Border Services and Investment
1. Under the Canada Oil and Gas Operations Act, the approval of the Minister
of Energy, Mines and Resources of a "benefits plan" is required to receive
authorization to proceed with any oil and gas development project.
2. A "benefits plan" is a plan for the employment of Canadians and for
providing Canadian manufacturers, consultants, contractors and service companies
with a full and fair opportunity to participate on a competitive basis in the
supply of goods and services used in any proposed work or activity referred to
in the benefits plan.
The Act permits the Minister to impose an additional requirement on the
applicant, as part of the benefits plan, to ensure that disadvantaged
individuals or groups have access to training and employment opportunities or
can participate in the supply of goods and services used in any proposed work
referred to in the benefits plan.
3. The Canada - Nova Scotia Offshore Petroleum Resources Accord
Implementation Act and the Canada - Newfoundland Atlantic Accord
Implementation Act have the same requirement for a benefits plan but also
require that the benefits plan ensure that:
- prior to carrying out any work or activity in the offshore
area, the corporation or other body submitting the plan establish in the
applicable province an office where appropriate levels of
decision-making are to take place;
- expenditures be made for research and development to be carried out in
the province, and for education and training to be provided in the
province; and
vfirst consideration be given to goods produced or services provided from
within the province, where those goods or services are competitive in terms of
fair market price, quality and delivery.
4. The Boards administering the benefits plan under these Acts may also
require that the plan include provisions to ensure that disadvantaged
individuals or groups, or corporations owned or cooperatives operated by them,
participate in the supply of goods and services used in any proposed work or
activity referred to in the plan.
5. In addition, Canada may impose any requirement or enforce any commitment
or undertaking for the transfer of technology, a production process or other
proprietary knowledge to a person of Canada in connection with the approval of
development projects under the applicable Acts.
6. Provisions similar to those set out above will be included in laws or
regulations to implement the Yukon Oil and Gas Accord and Northwest Territories
Oil and Gas Accord which for purposes of this reservation shall be deemed, once
concluded, to be existing measures.
None
|
Sector:
|
Energy
| Sub-Sector: | Oil and Gas
| Industry Classification: | SIC 071 Crude
Petroleum and Natural Gas Industries
| Type of Reservation: | Performance
Requirements (Article G-06)
| Level of Government: | Federal
| Measures: | Canada - Newfoundland
Atlantic Accord Implementation Act, S.C. 1987, c. 3
Hibernia Development Project Act, S.C. 1990, c. 41
| Description: | Investment
Pursuant to the Hibernia Development Project Act, Canada and the
"Hibernia Project Owners" may enter into agreements whereby the Project Owners
undertake to perform certain work in Canada and Newfoundland and to use their
"best efforts" to achieve specific Canadian and Newfoundland "target levels" in
relation to the provisions of any "benefit plan" required under the
Canada-Newfoundland Atlantic Accord Implementation Act. "Benefits plans" are
further described in Schedule of Canada, Annex I, page I-C-20.
In addition, Canada may impose in connection with the Hibernia project any
requirement or enforce any commitment or undertaking for the transfer of
technology, a production process or other proprietary knowledge to a national or
enterprise in Canada.
| Phase-Out: | None
|
Sector: |
Energy
| Sub-Sector: | Uranium
| Industry Classification: | SIC 0616
Uranium Mines
| Type of Reservation: | National Treatment
(Article G-02)
Most-Favoured-Nation Treatment (Article G-03)
| Level of Government: | Federal
| Measures: | Investment Canada Act,
R.S.C. 1985, c. 28 (1st Supp.)
Investment Canada Regulations, SOR/85-611
Policy on NonResident Ownership in the Uranium Mining Sector, 1987
| Description: | Investment
Ownership by "non-Canadians", as defined in the Investment Canada Act,
of a uranium mining property is limited to 49 per cent at the stage of first
production. Exceptions to this limit may be permitted if it can be established
that the property is in fact "Canadiancontrolled" as defined in the
Investment Canada Act.
Exemptions from the policy are permitted, subject to approval of the Governor
in Council, only in cases where Canadian participants in the ownership of the
property are not available. Investments in properties by nonCanadians, made
prior to December 23, 1987 and that are beyond the permitted ownership level,
may remain in place. No increase in nonCanadian ownership is permitted.
| Phase-Out: | None
|
Sector: |
Fisheries
| Sub-Sector: | Fish Harvesting and
Processing
| Industry Classification: | SIC 031 Fishing
Industry
| Type of Reservation: | National Treatment
(Article G-02)
Most-Favored-Nation Treatment (Article G-03)
| Level of Government: | Federal
| Measures: | Coastal Fisheries
Protection Act, R.S.C. 1985, c. C33
Fisheries Act, R.S.C. 1985, c. F14
Coastal Fisheries Protection Regulations, C.R.C. 1978, c. 413
Policy on Foreign Investment in the Canadian Fisheries Sector, 1985
Commercial Fisheries Licensing Policy
| Description: | Investment
Under the Coastal Fisheries Protection Act, foreign fishing vessels
are prohibited from entering Canada's Exclusive Economic Zone except under
authority of a licence or under treaty. "Foreign" vessels are those which are
not "Canadian" as defined in the Coastal Fisheries Protection Act. Under
the Fisheries Act, the Minister of Fisheries and Oceans has discretionary
authority with respect to the issuance of licences.
Fish processing enterprises that have a foreign ownership level of more than
49 per cent are prohibited from holding Canadian commercial fishing licences.
| Phase-Out: | None
|
Sector:
|
Fisheries
| Sub-Sector: | Fishing-Related Services
| Industry Classification: | SIC 032
Services Incidental to Fishing
| Type of Reservation: | National Treatment
(Article H-02)
Most-Favored-Nation Treatment (Article H-03)
| Level of Government: | Federal
| Measures: |
Coastal Fisheries Protection Act, R.S.C. 1985, c. C-33
| Description: | Cross-Border Services
Under the Coastal Fisheries Protection Act, the Department of
Fisheries and Oceans is responsible for controlling the activities of foreign
fishing vessels in Canada's Exclusive Economic Zone, including access to
Canadian ports (port privileges).
In general, the Department grants such port privileges, including the
purchase of fuel and supplies, ship repair, crew exchanges and transshipment of
fish catches, only to fishing vessels from a country with which it has
favourable fishery relations, based primarily on adherence by that country to
Canadian and international conservation practices and policies. Exceptions to
this general rule are permitted in cases of emergency ("force majeure") and
where the specific provisions of bilateral fisheries treaties apply.
| Phase-Out: | None
|
Sector: |
Professional, Technical and Specialized Services
| Sub-Sector: | Professional Services
| Industry Classification: | SIC 862
Auditing Services
| Type of Reservation: | National Treatment
(Article H-02)
Local Presence (Article H-05)
| Level of Government: | Federal
| Measures: | Bank Act, S.C. 1991,
c. 46
Insurance Companies Act, S.C. 1991, c. 47
Cooperative Credit Associations Act, 1991, c. 48
Trust and Loan Companies Act, 1991, c. 45
| Description: | Cross-Border Services
Banks are required to have a firm of accountants to be auditors of the
bank. A firm of accountants must be qualified as set out in the Bank Act.
Among the qualifications required is that two or more members of the firm must
be ordinarily resident in Canada and that the member of the firm jointly
designated by the firm and the bank to conduct the audit must be ordinarily
resident in Canada.
An insurance company, a cooperative credit association, and a trust or
loan company require an auditor who can either be a natural person or a firm of
accountants. An auditor of such an institution must be qualified as set out in
the Insurance Companies Act, the Cooperative Credit Associations Act
or the Trust and Loan Companies Act, as the case may be. In the case
where a natural person is appointed to be the auditor of such a financial
institution, among the qualifications required is that the person must be
ordinarily resident in Canada. In the case where a firm of accountants is
appointed to be the auditor of such a financial institution, the member of the
firm jointly designated by the firm and the financial institution to conduct the
audit must be ordinarily resident in Canada.
| Phase-Out: | None
|
Sector: | Transportation
| Sub-Sector: | Air Transportation
| Industry Classification: | SIC 451 Air
Transport Industries
| Type of Reservation: | National Treatment
(Article G-02)
Most-Favored-Nation Treatment (Article G-03)
Senior Management and Boards of Directors (Article G-07)
| Level of Government: | Federal
| Measures: | Canada Transportation Act,
S.C. 1996, c. 10
Aeronautics Act, R.S.C. 1985, c. A2
Air Regulations, C.R.C. 1978, c. 2
Aircraft Marking and Registration Regulations, SOR/90591
| Description: |
Investment
Only "Canadians" may provide the following commercial air transportation
services:
- "domestic services" (air services between points, or from and
to the same point, in the territory of Canada, or between a point in the
territory of Canada and a point not in the territory of another country);
- "scheduled international services" (scheduled air services between a
point in the territory of Canada and a point in the territory of another
country) where those services have been reserved to Canadian carriers under
existing or future bilateral agreements; and
- "nonscheduled international services" (non-scheduled air services between
a point in the territory of Canada and a point in the territory of another
country) where those services have been reserved to Canadian carriers under
the Canada Transportation Act.
"Canadian" is defined in the Canada Transportation Act to mean a
Canadian citizen or permanent resident, a government in Canada or agent thereof
or any other person or entity that is controlled in fact by, and of which at
least 75 per cent of the voting interests are owned and controlled by, persons
otherwise meeting these requirements.
Regulations made under the Aeronautics Act also require that a
Canadian air carrier operate Canadian-registered aircraft. To be qualified to
register aircraft in Canada, a carrier must be a Canadian citizen or permanent
resident, or a corporation incorporated and having its principal place of
business in Canada, its chief executive officer and not fewer than two-thirds of
its directors as Canadian citizens or permanent residents and not less than 75
percent of its voting interest owned and controlled by persons otherwise meeting
these requirements. In addition, all commercial air services in Canada require a
Canadian operating certificate to ensure their safety and security. An operating
certificate for the provision of servicesrestricted to Canadian carriers is
issued only to qualified persons.
A corporation incorporated in Canada but that does not meet the Canadian
ownership and control requirements may only register a private aircraft when the
corporation is the sole owner of the aircraft. The regulations also have the
effect of limiting "nonCanadian" corporations operating foreign-registered
private aircraft within Canada to the carriage of their own employees.
For specialty air services, see Schedule of Canada, Annex II, page II-C-8.
| Phase-Out: | None
|
Sector: |
Transportation
| Sub-Sector: | Air Transportation
| Industry Classification: | SIC 4513
Non-Scheduled Air Transport, Specialty, Industry
| Type of Reservation: | National Treatment
(Articles G-02, H-02)
Local Presence (Article H-05)
Senior Management and Boards of Directors (Article G-07)
| Level of Government: | Federal
| Measures: | Aeronautics Act, R.S.C.
1985, c. A-2
Air Regulations, C.R.C. 1978, c. 2
Aircraft Marking and Registration Regulations, SOR/90-591
Foreign Air Carrier Certification Manual, TP 11524, and the
Personnel Licensing Handbook, TP 193 (Department of Transport)
As qualified by paragraph 2 of the Description element
| Description: |
Cross-Border Services
1. An operating certificate issued by the Department of Transport is required
to provide specialty air services in the territory of Canada. The Department of
Transport will issue an operating certificate to a person applying for authority
to provide specialty air services, subject to compliance by that person with
Canadian safety requirements. An operating certificate for the provision of
aerial construction, heli-logging, aerial inspection, aerial surveillance,
flight training, aerial sightseeing, and aerial spraying services is not issued
to a person that is not Canadian as provided for in the applicable regulations.
For Investment, see Schedule of Canada, Annex II, page II-C-8.
2. A person of Chile may obtain an operating certificate, subject to
compliance by that person with Canadian safety requirements, for the provision
of aerial mapping, aerial surveying, aerial photography, forest fire management,
fire-fighting, aerial advertising, glider towing, parachute jumping, aerial
construction, heli-logging, aerial inspection, aerial surveillance, flight
training, and aerial sightseeing services.
| Phase-Out: | Beginning on January 1, 2000,
a person of Chile will be permitted to obtain an operating certificate,
subject to compliance by that person with Canadian safety requirements, for
the provision of aerial spraying services.
|
Sector: |
Transportation
| Sub-Sector: | Air Transportation
| Industry Classification: | SIC 4523
Aircraft Servicing Industry
SIC 3211 Aircraft and Aircraft Parts Industry
| Type of Reservation: | Most-Favored-Nation
Treatment (Article H-03)
Local Presence (H-05)
| Level of Government: | Federal
| Measures: | Aeronautics Act, R.S.C.
1985, c. A-2
Airworthiness Manual, chapters 573 and 575, made under the authority
of Air Regulations, C.R.C. 1978, c. 2
Agreement Concerning Airworthiness Certification, Exchange of Letters
between Canada and the United States, dated August 31, 1984, CTS 1984/26
| Description: | Cross-Border Services
Aircraft repair, overhaul or maintenance activities required to maintain the
airworthiness of Canadian-registered aircraft must be performed by
Canadian-certified persons (approved maintenance organizations and aircraft
maintenance engineers). Certifications are not provided for persons located
outside Canada, except sub-organizations of approved maintenance organizations
that are themselves located in Canada.
Pursuant to an airworthiness agreement between Canada and the United States,
Canada recognizes the certifications and oversight provided by the United States
for all repair, overhaul and maintenance facilities and individuals performing
the work located in the United States.
| Phase-Out: | None
|
Sector: |
Transportation
| Sub-Sector: | Land Transportation
| Industry Classification: | SIC 456 Truck
Transport Industries
SIC 4572 Interurban and Rural Transit Systems Industry
SIC 4573 School Bus Operations Industry
SIC 4574 Charter and Sightseeing Bus Services Industry
| Type of Reservation: | National Treatment
(Article H-02)
Local Presence (Article H-05)
| Measures: | Motor Vehicle Transport Act,
1987, R.S.C. 1985, c. 29 (3rd Supp.), Parts I and II
Canada Transportation Act, S.C. 1996, c.10
Customs Tariff, R.S.C. 1985, c. 41 (3rd Supp.)
| Description: | Cross-Border Services
Only persons of Canada, using Canadian-registered and either Canadian-built
or duty-paid trucks or buses, may provide truck or bus services between points
in the territory of Canada.
| Phase-Out: | None
|
Sector: |
Transportation
| Sub-Sector: | Water Transportation
| Industry Classification: | SIC 4541
Freight and Passenger Water Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
SIC 4549 Other Water Transport Industries
SIC 4553 Marine Salvage Industry
SIC 4559 Other Service Industries Incidental to Water Transport
| Type of Reservation: | National Treatment
(Article H-02)
Most-Favored-Nation Treatment (Article H-03)
Local Presence (Article H-05)
| Level of Government: | Federal
| Measures: | Canada Shipping Act,
R.S.C. 1985, c. S-9, Part II
| Description: | Cross-Border Services
To register a vessel in Canada for purposes of providing international
maritime transportation services, the owner of that vessel must be:
- a Canadian citizen or a citizen of a Commonwealth country; or
- a corporation incorporated under the laws of, and having its principal
place of business in, Canada or a Commonwealth country.
For domestic maritime transportation services (cabotage), see Schedule of
Canada, Annex II, page II-C-9.
| Phase-Out: | None
|
Sector: |
Transportation
| Sub-Sector: | Water Transportation
| Industry Classification: | SIC 4541
Freight and Passenger Water Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
SIC 4549 Other Water Transport Industries
SIC 4553 Marine Salvage Industry
SIC 4554 Piloting Service, Water Transport Industry
SIC 4559 Other Service Industries Incidental to Water Transport
| Type of Reservation: | National Treatment
(Article H-02)
Local Presence (Article H-05)
| Level of Government: | Federal
| Measures: | Canada Shipping Act,
R.S.C. 1985, c. S-9, Part II
| Description: | Cross-Border Services
Masters, mates, engineers and certain ratings must be certified by the
Department of Transport as ship's officers while engaged on a
Canadian-registered vessel. Only Canadian citizens or permanent residents may be
certified as ship's officers or ratings.
| Phase-Out: | None
|
Sector: |
Transportation
| Sub-Sector: | Water Transportation
| Industry Classification: | SIC 4554
Piloting Service, Water Transport Industry
| Type of Reservation: | National Treatment
(Article H-02)
Local Presence (Article H-05)
| Level of Government: | Federal
| Measures: | Pilotage Act, R.S.C.
1985, c. P-14
General Pilotage Regulations, C.R.C. 1978, c. 1263
Atlantic Pilotage Authority Regulations, C.R.C. 1978, c. 1264
Laurentian Pilotage Authority Regulations, C.R.C. 1978, c. 1268
Great Lakes Pilotage Regulations, C.R.C. 1978, c. 1266
Pacific Pilotage Regulations, C.R.C. 1978, c. 1270
| Description: |
Cross-Border Services
Subject to Schedule of Canada, Annex II, page II-C-13, a license issued by
the relevant regional Pilotage Authority is required to provide pilotage
services in the territory of Canada. Only Canadian citizens or permanent
residents may obtain such a license. A permanent resident of Canada who has been
issued a pilot's license must become a Canadian citizen within five years of
receipt of the license in order to retain it.
| Phase-Out: | None
|
Sector: |
Transportation
| Sub-Sector: | Water Transportation
| Industry Classification: | SIC 454 Water
Transport Industries
| Type of Reservation: | Local Presence
(Article H-05)
| Level of Government: | Federal
| Measures: | Shipping Conferences
Exemption Act, 1987, R.S.C. 1985, c. 17 (3rd Supp.)
| Description: | Cross-Border Services
Members of a shipping conference must maintain jointly an office or agency in
the region of Canada where they operate. A shipping conference is an association
of ocean carriers that has the purpose or effect of regulating rates and
conditions for the transportation by those carriers of goods by water.
| Phase-Out: | None
|
Sector: |
Transportation
| Sub-Sector: | Water Transportation
| Industry Classification: | SIC 4541
Freight and Passenger Water Transport Industry
SIC 4542 Ferry Industry
SIC 4543 Marine Towing Industry
| Type of Reservation: | Most-Favored-Nation
Treatment (Article H-03)
| Level of Government: | Federal
| Measures: | Coasting Trade Act,
S.C. 1992, c. 31
| Description: | Cross-Border Services
The prohibitions under the Coasting Trade Act, set out in Schedule of
Canada, Annex II, page II-C-11, do not apply to any vessel that is owned by the
U.S. Government when used solely for the purpose of transporting goods owned by
the U.S. Government from the territory of Canada to supply Distant Early Warning
sites.
| Phase-Out: | None
|
To continue with Annex I - Schedule of Chile
[ Index ]
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