Canada willing to consider special and differential treatment for agricultural imports coming from developing countries
Responding to the questions raised by Pakistan during their trade policy review early this year, the Canadian government reaffirmed their commitment to fair trade and stressed their reservation over tariff escalations on agricultural products, and finding appropriate solutions through Doha Round negotiations. They added that Canada was pleased to consider all requests for special and differential treatment on licensing requirements for import of fresh fruits and vegetables on a case-by-case basis, taking into account the special development, financial and trade needs of the developing country making the request.
Pakistan had raised a number of questions showing its concerns to the Canadian trade policy regime, including its duty free - quota free market access to LDCs, trade facilitation and immigration / visa policy. The replies furnished by Canada are reproduced as follows:
[Pakistan Question 1]
Question: At the Hong Kong Ministerial Conference in December 2005, Ministers agreed that for grant of duty free, quota free access to LDCs, its impact on other similarly placed countries would be taken into account.
Has Canada analyzed as to how this initiative affected in real terms the imports from other low-income developing countries such as Pakistan when Canada allowed duty free quota free market access to some countries?
ANSWER: Canada's original decision to extend tariff-free and quota-free access to most imports from least-developed countries was made at the G8 Kananaskis Summit held in 2002 as one of a number of initiatives taken by Canada in support of Africa's development. The program announced at this Summit came into effect for all LDC countries on January 1, 2003.
Canada’s decision to provide duty-and quota-free access for most products from LDCs was targeted at improving the economic prospects of the poorest countries of the world. To facilitate this, the initiative’s rules of origin, particularly those associated with apparel products, were designed to help LDCs benefit from the program. These rules allow LDCs to use fabric imported from other developing countries in apparel exported to Canada.
Therefore, while other low-income developing countries such as Pakistan do not benefit directly from the LDC initiative, they are placed in a position to benefit indirectly by, for example, supplying fabric to LDCs. Canada would also note that the exports of Pakistan and other low-income developing countries already benefit from preferential access to the Canadian market under Canada’s General Preferential Tariff (GPT) Program.
Canada remains committed to working with developing countries, especially the least developed, to help them benefit further from trade liberalization and integrate fully into the multilateral trading system.
[Pakistan Question 2]
Question 2: While there is liberal trade environment for industrial goods, some non-tariff barriers like undue delay of containers at the port of landing, diversion of cargo to other ports and inspection hassles add to the cost of doing business; and discourage Canadian importers to retain the supply chain with the established partners.
Would Canada like to explain the reasons as to why imports coming from developing countries are subjected to discriminatory practices; and does Canada have any plan to redress such grievances?
ANSWER: Canada's import policies are administered and applied in a fair and consistent manner based on our laws and regulations. The CBSA's commitment to fairness is based on six pillars: respect and courtesy, fair application of the law, privacy and confidentiality, bilingual service, accurate information about entitlements and obligations, and review of our actions or decisions (first link below). The publication entitled Guide to Importing Commercial Goods provides information that is applicable to all goods that are imported into Canada (second link below).
http://www.cbsa-asfc.gc.ca/agency-agence/fairness/menu-e.html
http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4041/rc4041-e.html
[Pakistan Question 3]
Question: Pronounced tariff escalations among semi-processed and fully processed agricultural products have an adverse impact on investment in food processing sectors in developing countries.
Does Canada intend to adjust these tariff escalations in order to encourage value-added exports from developing countries?
ANSWER: Canada is a strong supporter of an ambitious outcome to the Doha negotiations. Canada outlined a proposed approach to address tariff escalation in WTO document Job(06)/166 which was distributed to all Members in June 2006. Within the context of the Doha negotiations, Canada continues to support an ambitious tiered formula as well as an additional modality to reduce or eliminate any tariff escalation that may remain after the application of that formula. Canada supports addressing tariff escalation broadly within the Doha negotiations to encourage trade in value-added products.
[Pakistan Question 4]
Question: As per Canadian law, the importers of fresh fruit and vegetables must be licensed by the Canadian Food Inspection Agency, which delays the export of developing countries executed by new importers in Canada.
Is there any plan to provide some Special and Differential Treatment to developing countries in this regard?
ANSWER:Canada has not received any requests for special and differential treatment with regards to these requirements. Canada is pleased to consider all requests for special and differential treatment on a case-by-case basis, taking into account the special development, financial and trade needs of the developing country making the request.
[Pakistan Question 5]
Immigration and Visa Policy
Question: While the Canadian government is encouraging immigration of professional human resource from Pakistan, it is generally denying business visas to the genuine businesspersons, who are nominated by their respective trade bodies and recommended by the government for their business related travel.
Could Canada justify such discriminatory policies that run against business and economic interest of developing countries?
ANSWER: In the GATS context, Canada has significant Uruguay Round commitments and strong offer on mode 4 which covers Business Visitors, Intra-corporate transferees, Contract Service Suppliers and Independent Professionals. Canada’s UR commitments have eliminated the need for a labour market test for WTO Members qualifying as a professional – one of the major hurdles business persons face when entering a country to work on a temporary basis. Furthermore, our commitments on Business Visitors cover business persons entering Canada to attend trade fairs, participate in business meetings or similar activities without the requirement of a labour market test or a work permit. As per the Annex to the GATS on the Movement of Natural Persons, paragraph 4, members may apply measures to regulate the entry of natural persons into its territory, including the requirement for a visa. We are always seeking ways to improve the administration of our immigration framework and would encourage you to share with us the details of your concerns at a later date. In the meantime, we trust the following information on our visa regime will be useful:
Under Canada's Immigration and Refugee Protection Act, every foreign national, except people from countries specifically exempted in the Immigration and Refugee Protection Regulations, must have a temporary resident visa before arriving in Canada. Temporary resident visa requirements allow Canada to fulfil the objectives of the Immigration and Refugee Protection Act by facilitating the entry of bona fide visitors to Canada for such purposes as trade, commerce, tourism, international understanding, and cultural, educational and scientific activities, while also protecting the health, safety and security of Canadian society.
Approval of a temporary resident visa application cannot be guaranteed as each application is considered on its own merit. Visa officers look at many factors in assessing whether an applicant is a genuine temporary resident. They consider the purpose of the visit and the applicant's ties to his or her home country, including the family and economic situation. Foreign nationals wishing to come to Canada as temporary residents must show that they will respect the conditions that apply to temporary residents. One of these conditions is that they will leave voluntarily at the end of the visit.
Canada does not differentiate between business visitors and persons visiting Canada for other purposes, such as visiting family or tourism. All visitors are assessed against the same criteria, and the purpose of the visit is only one element that may be considered.
