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NAFTA - Schedule of Canada
ANNEX I
Schedule of Canada
SECTOR: Agriculture
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: National Treatment (Article 1102)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Farm Credit Act, R.S.C. 1985, c. F-2
as amended by R.S.C. 1985, c. 1 (4th
Supp.); S.C. 1991, c. 5, 53
Farm Credit Regulations, C.R.C. 1978,
c. 644 as amended by SOR/81-560;
SOR/82-495; SOR/83-198
DESCRIPTION: Investment
Loans by the Farm Credit Corporation
may be made only to:
(a) individuals who are Canadian
citizens or permanent residents;
(b) farming corporations controlled
by Canadian citizens or permanent
residents; or
(c) cooperative farm associations,
all of whose members are Canadian
citizens or permanent residents.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: All Sectors
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: National Treatment (Article 1102)
Performance Requirements (Article 1106)
Senior Management (Article 1107)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c.
28, as amended by S.C.1988, c. 65
Investment Canada Regulations,
SOR/85-611, as amended by SOR/189-69
An Act to Amend the Investment Canada
Act, (Bill C-89, introduced in
Parliament on 18 June 1992)
DESCRIPTION: Investment
1. Under the Investment Canada Act,
the following acquisitions of Canadian
businesses by "non-Canadians" are
subject to review by Investment
Canada:
(1) all direct acquisitions of
Canadian businesses with assets
of $5 million or more;
(2) all indirect acquisitions of
Canadian businesses with assets
of $50 million or more; and
(3) indirect acquisitions of Canadian
businesses with assets between $5
million and $50 million which
represent more than 50 percent of
the value, calculated in the
prescribed manner, of the assets
of all the entities the control
of which is being acquired,
directly or indirectly, in the
transaction in question.
2. "Canadian business", "Canadian"
and "non-Canadian" are defined in the
Investment Canada Act. A "non-
Canadian" is an individual, government
or agency thereof or an entity which
is not "Canadian".
3. In addition, specific
acquisitions or new businesses in
designated types of business
activities related 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. Investments subject to review
under the Investment Canada Act are
not to 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.
5. These factors are summarized as
follows:
(a) 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;
(b) the degree and significance of
participation by Canadians in the
investment;
(c) the effect of the investment on
productivity, industrial
efficiency, technological
development and product
innovation in Canada;
(d) the effect of the investment on
competition within any industry
or industries in Canada;
(e) 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
(f) the contribution of the
investment to Canada's ability to
compete in world markets.
6. In making a net benefit
determination, the Minister, through
Investment Canada, 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.
7. The establishment or acquisition
of Canadian businesses by non-
Canadians, other than those described
above, are to be notified to the
agency administering the Act,
Investment Canada.
8. Review of "acquisition of
control", as defined in the Investment
Canada Act, of a Canadian business by
an American or Mexican will take place
if the value of the gross assets of
the Canadian business is not less than
the applicable thresholds, effective
on the date of entry into force of
this Agreement and adjusted on each
anniversary thereof. The calculation
of the applicable review threshold is
set out in the Duration section below.
9. The review threshold applicable
to American and Mexican investors is
higher than those set out above.
However, this higher review threshold
does not apply in the following
sectors: uranium production and
ownership of uranium producing
properties; oil and gas; financial
services; transportation services and
cultural businesses.
10. Indirect "acquisitions of
control", as defined in the Investment
Canada Act, of Canadian businesses by
"American" and "Mexican" investors are
not reviewable. Notwithstanding the
definition of "investor of a Party" in
Chapter Eleven, only investors who are
nationals, or entities controlled by
nationals, (as defined in the
Investment Canada Act) of the United
States or Mexico, may benefit from the
higher review threshold.
11. Notwithstanding Article 1106(1),
Canada reserves the right to 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 another 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
pursuant to the Investment Canada Act.
12. Except for requirements,
commitments or undertakings related to
technology transfer as set out above,
Article 1106(1) shall apply to
requirements, commitments or
undertakings imposed or enforced under
the Investment Canada Act. However,
Article 1106(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.
DURATION: Paragraphs 10, 11 and 12 of the
Description setting out Canada's
reservations and commitments with
respect to Articles 1102, 1106(1),
and 1138 shall govern.
For American and Mexican investors,
the applicable threshold for the
review of a direct acquisition of
control of a Canadian business shall
be:
(a) for the twelve month period
commencing on the date of entry
into force of this Agreement,
such monetary amount as
determined in accordance with
Annex 1607.3 of the Canada-United
State Free Trade Agreement;
(b) commencing on the first
anniversary of the date of entry
into force of this Agreement, the
monetary amount for the preceding
year multiplied by an annual
adjustment representing the
increase in nominal Gross
Domestic Product, as set out
below.
The calculation of the annual
adjustment shall be determined in
January of each year after 1994 using
the most recently available data as
published by Statistics Canada and
using the following formula:
Ann ual Adjustment =
Current nominal GDP at market
prices
---------------------------------
----------------------Previous
year nominal GDP at market prices
"Current nominal GDP at market prices"
means the arithmetic mean of the
nominal Gross Domestic Product at
market prices for the most recent four
consecutive quarters (seasonally
adjusted at annual rates).
"Previous year nominal GDP at market
prices" means the arithmetic mean of
the nominal Gross Domestic Product at
market prices for the four consecutive
quarters (seasonally adjusted at
annual rates) 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
shall be rounded to the nearest
million dollars.
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: All Sectors
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: National Treatment (Article 1102)
Senior Management (Article 1107)
LEVEL OF GOVERNMENT: Federal
Provincial
LEGAL CITATION:
DESCRIPTION: Investment
When selling or disposing of its
equity interests in, or the assets of,
an existing state enterprise or an
existing governmental entity, Canada
and each province reserve the right to
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
another Party or non-Party or their
investments. In addition, Canada and
each province reserve the right to
adopt or maintain any measure relating
to the nationality of senior
management or members of the board of
directors.
For the purposes of this reservation:
(a) any measure maintained, or
adopted after the entry into
force of this Agreement,
prohibiting or imposing
limitations on the ownership of
equity interests or assets or
nationality requirements
described in this reservation
shall be deemed to be an existing
measure; and
(b) "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.
DURATION:
The Description shall govern on entry
into force of this Agreement.
Indeterminate.
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: All Sectors
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: National Treatment (Article 1102)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Canada Business Corporations Act,
R.S.C. 1985, C. I-44, as amended by
R.S.C. 1985, c. 27 (2nd Supp.), R.S.C.
1985, c. 1 (4th Supp.); S.C. 1990, c.
17; S.C. 1991, c. 45, 46, 47
Canada Corporations Act, R.S.C. 1970,
C. C-32, as amended by R.S.C. 1970, c.
C-10 (1st Supp.); S.C. 1970-71-72, c.
43, 63; S.C. 1972, c. 17; S.C.
1974-75-76, c. 33; S.C. 1978-79, c.
11; S.C. 1985, c. 26; S.C. 1986, c.
26, 35
Canada Business Corporations Act
Regulations SOR/79-316, as amended by
SOR/79-513, SOR/79-728, SOR/80-873,
SOR/81-3, SOR/81-189, SOR/81-868,
SOR/82-187, SOR/83-511, SOR/83781,
SOR/83-817, SOR/85-384, SOR/86-365,
SOR/86-366, SOR/86-421, SOR/86-983,
SOR/87-248, SOR/87-629, SOR/8863,
SOR/88-491, SOR/89-159, SOR/89-323,
SOR/90-660, SOR/91-567
DESCRIPTION: Investment
The cited laws and regulations permit
constraints to be placed on issue,
transfer and ownership of shares in
federally incorporated business
corporations. The object is to permit
corporations to meet Canadian
ownership requirements, under certain
laws as prescribed in the regulations,
in sectors where such ownership is
required as a condition to operate.
In order to maintain certain
"Canadian" ownership levels,
corporations are permitted to sell
shareholders' shares without the
consent of those shareholders, and to
purchase the corporation's own shares
on the open market. "Canadian" is
defined in the regulations.
DURATION:
Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: All Sectors
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: Senior Management (Article 1107)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Canada Business Corporations Act,
R.S.C. 1985, c. I-44 as amended R.S.C.
1985, c. 27 (2nd Supp.), R.S.C. 1985,
c. 1 (4th Supp.); S.C. 1990, c. 17;
S.C. 1991, c. 45, 46, 47
Canada Business Corporations Act
Regulations, SOR/79-316, as amended
SOR/79-513, SOR/79-728, SOR/80-873,
SOR/81-3, SOR/81-189, SOR/81-868,
SOR/82-187, SOR/83-511, SOR/83-781,
SOR/83-817, SOR/85-384, SOR/86-365,
SOR/86-366, SOR/86-421, SOR/86-983,
SOR/87-248, SOR/87-629, SOR/88-63,
SOR/88-491, SOR/89-159, SOR/89-323,
SOR/90-660, SOR/91-567
Canada Corporations Act, R.S.C. 1970,
c. C-32
Special Acts of Parliament
incorporating specific companies
DESCRIPTION: Investment
The Canada Business Corporations Act
requires that a simple majority of
members of the board of directors, or
of a committee thereof, of a
federally-incorporated company must be
resident Canadians. For the purposes
of the Act the term "resident
Canadian" is defined as an individual
who is a Canadian citizen ordinarily
resident in Canada, a citizen who is a
member of a class as set out in the
regulations, or a permanent resident
as defined in the Immigration Act
except a person 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 1/3 of the directors
need be resident Canadians if the
earnings in Canada of the holding
corporation and its subsidiaries are
less than 5% 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 residents of Canada and
citizens of a Commonwealth country.
This requirement applies to every
joint stock company incorporated
subsequent to 22 June 1869 by any
Special Act of Parliament and any
subsequent amendments to such Acts.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: All Sectors
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: National Treatment (Article 1102)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Citizenship Act, R.S.C. 1985, c. C-29
as amended by R.S.C. 1985 c. 28 (1st
Supp.); c. 30 (3rd Supp.); c. 44 (3rd
Supp.); c. 28 (4th Supp.)
Foreign Ownership of Land Regulations,
SOR/79-416; SOR/79-514; SOR/80-156;
SOR/82-544
DESCRIPTION: Investment
Under the Citizenship Act, a province
is authorized to prohibit or restrict
acquisitions of real property located
in that province by non-Canadians.
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 2 parcels
containing, in the aggregate, not more
than 20 acres. An "ineligible
person" is (1) an individual who is
not a Canadian citizen or permanent
resident; (2) a foreign government or
agency thereof; or (3) a corporation
incorporated elsewhere than in Canada.
"Controlled land" means land in
Alberta but does not include (1) land
other than land owned by the Crown;
(2) land within a city, town, new
town, village, or summer village and
(3) mines or minerals.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR:
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: National Treatment (Article 1102)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Air Canada Public Participation Act,
R.S.C. 1985, c. 35 (4th Supp.)
Canada Development Corporation
Reorganization Act, S.C. 1985, c. 49
Petro-Canada Public Participation Act,
S.C. 1991, c. 10
Canadian Arsenals Limited Divestiture
Authorization Act, S.C. 1986, c. 20
Cooperative Energy Act, S.C.
1980-81-82-83, c. 108
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
Non-residents may not own more than a
specified percentage of the voting
shares of the corporation to which
each Act applies. For each company the
restrictions are as follows:
Air Canada: 25%
Canada Development Corporation: 25%
Petro-Canada Inc: 25%
Canadian Arsenals Limited: 25%
Eldorado Nuclear Limited: ownership
not restricted but voting rights
restricted to 25% of votes cast at
meetings
Nordion Limited: 25%
Theratronics Limited: 49%
Cooperative Energy Corporation: 49%
Non-resident is defined in the cited
laws to generally mean:
(a) an individual, other than a
Canadian citizen, who is not
ordinarily resident in Canada;
(b) a corporation incorporated,
formed or otherwise organized
outside Canada;
(c) 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;
(d) a corporation that is controlled
directly or indirectly by
non-residents as defined in any
of paragraphs (a) to (c);
(e) a trust (i) established by a
non-resident as defined in any of
paragraphs (b) to (d), other than
a trust for the administration of
a pension fund for the benefit of
individuals a majority of whom
are residents, or (ii) in which
non-residents as defined in any
of paragraphs (a) to (d) have
more than fifty per cent of the
beneficial interest; or
(f) a corporation that is controlled
directly or indirectly by a trust
described in paragraph (e).
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: All Sectors
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION: Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Export and Import Permits Act, R.S.C.,
1985, c. E-19
DESCRIPTION: Cross-Border Services
Only natural persons ordinarily
resident in Canada, enterprises having
their head office in Canada or branch
offices in Canada of a foreign
enterprise may apply for and be issued
import or export permits or a transit
authorization certificate for goods
and related services subject to
controls pursuant to regulations of
the Export and Import Permits Act.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Automotive
SUB-SECTOR:
INDUSTRY CLASSIFICATION:
TYPE OF RESERVATION:
LEVEL OF GOVERNMENT: Performance Requirements (Article 1106)
Federal
LEGAL CITATION: Canada-United-States Free Trade
Agreement Implementation Act
DESCRIPTION: Investment
Article 1106(3) shall not apply to the
granting of waivers of customs duties
conditioned, explicitly or implicitly,
upon the fulfillment of performance
requirements by those manufacturers of
automotive goods:
(a) 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
(b) for the applicable periods
specified in Article 1002(2) and
(3) of the Canada - United-States
Free Trade Agreement to those
manufacturers of automotive goods
set out in Parts Two and Three,
respectively, of Annex 1002.1 of
that Agreement.
DURATION: (a) Indeterminate
(b) For Part Two, until January 1,
1998; and for Part Three, until
January 1, 1996 or such earlier
date specified in existing
agreements between Canada and the
recipient of the waiver.
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Business Service Industries
SUB-SECTOR: Customs Brokerages and Brokers
INDUSTRY CLASSIFICATION: SIC 7794 Customs Brokerages and Brokers
TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)
Senior Management (Article 1107)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Customs Act, R.S.C., 1985, c. 41 (2nd Supp.)
Customs Brokers Licensing Regulations,
SOR/86-1067
DESCRIPTION: Cross-Border Services and Investment
1. To be a licensed customs broker
in Canada, an individual must be a
Canadian citizen or permanent
resident.
2. To be a licensed customs
brokerage in Canada:
(a) a corporation must be
incorporated in Canada with a
majority of its directors being
Canadian citizens or permanent
residents; and
(b) 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.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Business Service Industries
SUB-SECTOR: Duty Free Shops
INDUSTRY CLASSIFICATION: SIC 6599 Other Retail Stores, Not
Elsewhere Classified
TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Customs Act, R.S.C., 1986, c.1 (2nd Supp.)
Duty Free Shop Regulations,
SOR/86-1072, as amended
DESCRIPTION: Cross-Border Services and Investment
1. To be a licensed duty free shop
operator at a land border crossing in
Canada, an individual must:
(a) be a Canadian citizen or
permanent resident;
(b) be of good character;
(c) be principally resident in
Canada; and
(d) have resided in Canada for at
least 183 days of the year
preceding the year of application
for the licence.
2. To be a licensed duty free shop
operator at a border crossing in
Canada, a corporation must:
(a) be incorporated in Canada; and
(b) have all of its shares
beneficially owned by Canadian
citizens or permanent residents
who meet the requirements of
paragraph 1.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Business Service Industries
SUB-SECTOR: Examination Services relating to the
Export and Import of Cultural Property
INDUSTRY CLASSIFICATION: SIC 990 Other Services
TYPE OF RESERVATION: Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Cultural Property Export and Import
Act, R.S.C. 1985, c. C-51
DESCRIPTION: Cross-Border Services
For purposes of the Cultural Property
Export and Import Act an "expert
examiner" of cultural property must be
either a natural person who ordinarily
resides 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.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Business Service Industries
SUB-SECTOR: Patent Agents and Agencies
INDUSTRY CLASSIFICATION: SIC 7499 Other Financial
Intermediaries, Not
Elsewhere Classified
(Limited to Holders of
Intellectual Property
Rights)
TYPE OF RESERVATION: National Treatment (Article 1202)
Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Patent Act, R.S.C., 1985, c. P-4
Patent Rules, CRC, Vol. XIII, c. 1250,
p.10053
Patent Cooperation Treaty Regulations,
SOR/89-453
DESCRIPTION: Cross-Border Services
1. To be able 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 a resident of
Canada and registered by the Patent
Office.
2. To prosecute an application for a
patent in Canada a registered patent
agent who is not a resident of Canada
must appoint a registered patent agent
who is a resident of Canada as an
associate to prosecute the
application.
3. Any firm may be added to the
patent register provided that it has
at least one member who is also on the
register.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Business Service Industries
SUB-SECTOR: Trade-Mark Agents
INDUSTRY CLASSIFICATION: SIC 7499 Other Financial
Intermediaries, Not
Elsewhere Classified
(Limited to Holders of
intellectual Property
Rights)
TYPE OF RESERVATION: National Treatment (Article 1202)
Most-Favored-Nation Treatment (Article 1203)
Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Trade-Marks Act, R.S.C., 1985, c. T-13
Trade-Marks Regulations, CRC, Vol.
XVIII, c. 1559, p. 13803, as amended
DESCRIPTION: Cross-Border Services
1. To be able 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 a
resident of Canada and registered by
the Trade-Mark Office.
2. To prosecute an application for a
trade-mark in Canada, 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
the application.
3. Trade-mark agents who reside, and
are registered (in good standing), in
a Commonwealth country or the United
States may be added to the register of
trade-mark agents.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Energy
SUB-SECTOR: Oil and Gas
INDUSTRY CLASSIFICATION: [To be provided]
TYPE OF RESERVATION: National Treatment (Article 1102)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Canada Petroleum Resources Act, R.S.C.
1985, c. 36 (2nd Supp.) as amended by
R.S.C. 1985, c. 21 (4th Supp.), S.C.
1990, c. 8, 41., S.C. 1991, c. 10
(partly in force), 24 (not in force),
46 (not in force)
Territorial Lands Act, R.S.C. 1985,
c.T-7 as amended by R.S.C. 1985, c. 7
(3rd Supp.)(partly in force); S.C.
1991, c. 2, 24 (not in force), 50 (not
in force)
Public Lands Grants Act, R.S.C. 1985,
c. P-30 as amended R.S.C. 1985, c. 13
(1st Supp.); S.C. 1991, c. 24 (not in
force). Act repealed S.C. 1991, c. 50
(repealing legislation not in force)
Canada-Newfoundland Atlantic Accord
Implementation Act, S.C. 1987, c. 3 as
amended by S.C. 1988, c. 28, S.C.
1990, c. 41; S.C. 1991, c. 46 (not in
force), 49, 50 (not in force)
Canada-Nova Scotia Offshore Petroleum
Resources Accord Implementation Act,
S.C. 1988, c. 28 as amended by S.C.
1990, c. 28, 41; S.C. 1991, c. 46 (not
in force), 49, 50 (not in force)
Canada Oil and Gas Land Regulations,
C.R.C. c. 1518 as amended SOR/80-590;
SOR/82-663; SOR/89-144
DESCRIPTION: Investment
Canadian legislation contains certain
qualifications for holders of oil and
gas production licenses for
discoveries made after March 5, 1982.
These qualifications ensure that
holders of such licenses, or shares
therein, are Canadian citizens
ordinarily resident in Canada,
permanent residents or corporations
incorporated in Canada.
Notwithstanding qualification to hold
a production license, no production
license shall 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
interest-owner in relation to the
production license on the date of
issuance would not be less than 50%.
"Interest-owner" is defined in the
Canada Petroleum Resources Act to mean
"an interest holder who holds the
interest or a group of interest
holders who hold all the shares of the
interest".
With respect to production licenses
for discoveries made prior to March 5,
1982, the Canadian ownership
requirements are as set out in the
Canada Oil and Gas Land Regulations.
These qualifications and Canadian
ownership requirements are in respect
of production licenses issued on
"frontier lands" and the "offshore
areas" (areas not under provincial
jurisdiction) as defined in the
legislation.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Energy
SUB-SECTOR: Uranium
INDUSTRY CLASSIFICATION: [To be provided]
TYPE OF RESERVATION: National Treatment (Article 1102)
Most-Favored-Nation Treatment
(Article 1103)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Investment Canada Act, R.S.C. 1985, c.
28, as amended by S.C.1988, c.65
Investment Canada Regulations, SOR/85-
611 as amended by SOR/189-69
An Act to Amend the Investment Canada
Act, (Bill C-89, introduced in
Parliament on 18 June 1992)
Policy on Non-resident Ownership in
the Uranium Mining Sector, 1987
DESCRIPTION: Investment
Non-resident ownership of a uranium
mining property is limited to 49% at
the stage of first production.
Exceptions to this limit may be
permitted if it can be established
that the property is in fact
Canadian-controlled as defined in the
Investment Canada Act.
Exemptions from the policy are
allowed, subject to Cabinet approval,
only in cases where Canadian
participants in the ownership of the
property cannot be found. Investments
in properties by "non-Canadians", as
defined in the Investment Canada Act,
prior to December 23, 1987, beyond the
permitted ownership level, are allowed
to remain in place; however no
increase in non-Canadian ownership is
permitted.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Fisheries
SUB-SECTOR: Fish Harvesting and Processing
INDUSTRY CLASSIFICATION: [To be provided]
TYPE OF RESERVATION: National Treatment (Article 1102)
Most-Favored-Nation Treatment (Article 1103)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Coastal Fisheries Protection Act,
R.S.C. 1985, c. C-33 as amended by
R.S.C. 1985, c. 31 (1st Supp.); R.S.C.
1985, c. 39 (2nd Supp.); S.C. 1990, c.
44
Fisheries Act, R.S.C. 1985, c. F-14 as
amended by R.S.C. 1985, c. 31 (1st
Supp.); R.S.C. 1985, c. 35 (1st
Supp.); R.S.C. 1985, c. 40 (4th
Supp.); S.C. 1990, c. 16; S.C. 1990,
c. 17
Policy on Foreign Investment in the
Canadian Fisheries Sector, 1985
Commercial Fisheries Licensing Policy
Coastal Fisheries Protection
Regulations, C.R.C., 1978, c. 413
DESCRIPTION: Investment
Under the Coastal Fisheries Protection
Act, "foreign" fishing vessels are
prohibited from entering Canada's 200
mile fishing zone except under
authority of a license 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 a
discretionary authority with respect
to the issuance of licenses.
Fish processing companies which have a
foreign ownership level of more than
49% are prohibited from holding
Canadian commercial fishing licenses.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Fisheries
SUB-SECTOR: Fishing-Related Services
INDUSTRY CLASSIFICATION: SIC 032 Services Incidental to Fishing
TYPE OF RESERVATION: National Treatment (Article 1202)
Most-Favored-Nation Treatment (Article 1203)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: 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
Fisheries Zone (EFZ), 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 countries with
which it has favorable fishery
relations, based primarily on
adherence by the foreign country to
Canadian and international
conservation practices and policies.
Exceptions to this general rule are
allowed in cases of emergency ("force
majeure") and where the specific
provisions of bilateral fisheries
treaties apply.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Government Finance
SUB-SECTOR: Securities
INDUSTRY CLASSIFICATION: [To be provided]
TYPE OF RESERVATION: National Treatment (Article 1202)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Financial Administrative Act, R.S.C.,
1985, Chap. F-11 and annual Orders-in-
Council
DESCRIPTION: Investment
Canada Savings Bonds are issued
annually pursuant to the Financial
Administration Act. Terms and
conditions are set by Orders-in-
Council. Sale of Canada Savings Bonds
is restricted to individuals who are
Canadian nationals.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Transportation
SUB-SECTOR: Air Transportation
INDUSTRY CLASSIFICATION: [To be provided]
TYPE OF RESERVATION: National Treatment (Article 1102)
Most Favored Nation Treatment (Article 1103)
Senior Management (Article 1107)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: National Transportation Act, 1987,
R.S.C. 1985, c. 28 (3rd Supp.), as
amended by R.S.C. 1985, c. 29 (3rd
Supp.); R.S.C. 1985 c. 19 (4th Supp.);
R.S.C. 1985, c. 32 (4th Supp.)
Aeronautics Act, R.S.C. 1985, c. A-2
as amended by R.S.C.1985, c. 33 (1st
Supp.); R.S.C. 1985, c. 28 (3rd Supp.)
Air Regulations, C.R.C. 1978, c. 2
Aircraft Marking and Registration
Regulations, SOR/90-591, as amended by
SOR/91-504
DESCRIPTION: Investment
The following "commercial air
services" are reserved to Canadian air
carriers or operators: domestic air
transportation services (cabotage);
international scheduled air
transportation services reserved by
bilateral agreements to Canadian
airlines; and international
non-scheduled air transportation
services between Canada and a country
other than a foreign air carrier's
state of registry ("fifth freedom
charters"). For specialty air
services, see Schedule of Canada,
Annex I, p.I-C-42 and Schedule of
Canada, Annex II, p.II-C-9.
Only qualified persons may provide
commercial air services reserved to
Canadian air carriers or operators.
Non-Canadian investment in voting
stock of enterprises providing
commercial air services that are
reserved to Canadian air carriers or
operators is limited to 25% or to a
lesser percentage where control in
fact of the enterprise is otherwise
considered not to be held by
Canadians. Non-Canadians are not
permitted, through voting interests or
other forms of investment, to control
Canadian air carriers or operators.
Aircraft other than state aircraft may
only be registered in Canada by
qualified persons. Aircraft not
registered in Canada are limited by
regulation concerning the period
during which they may be operated in
Canada by Canadians.
A qualified person is a Canadian
citizen or permanent resident, or a
corporation incorporated by or under
the laws of Canada or a province and
of which:
(a) not less than 75 % of the voting
interest is in fact owned and
controlled by Canadian citizens
or permanent residents or by a
corporation meeting the
requirements on Canadian
ownership and control;
(b) not less than 2/3 of its
directors are Canadian citizens
or permanent residents;
(c) the executive head is a Canadian
citizen or permanent resident;
and
(d) the principal place of business
is in Canada.
A corporation incorporated by or under
the laws of Canada or a province but
that does not meet the Canadian
ownership and control requirements may
only register a private aircraft when
the corporation is the sole owner and
subject to other limitations and
requirements of the Air Regulations.
The Air Regulations also have the
effect of limiting "non-Canadian"
corporations operating foreign
registered private aircraft within
Canada to the carriage of their own
employees. A "non-Canadian"
corporation is a corporation which
does not meet the Canadian ownership
and control requirements.
All commercial air services operating
in Canada require a Canadian operating
certificate to ensure their safety and
security. An operating certificate
authorizing the provision of
commercial air services reserved to
Canadian operators or air carriers is
only issued to qualified persons.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Transportation
SUB-SECTOR: Air Transportation
INDUSTRY CLASSIFICATION: SIC 4513 Non-Scheduled Air Transport,
Specialty Industry
TYPE OF RESERVATION: National Treatment (Articles 1102, 1202)
Local Presence (Article 1205)
Senior Management (Article 1107)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Aeronautics Act, R.S.C., 1985, c. A-2,
section 4.2
Air Regulations, C.R.C., Vol. I, c. 2,
sections 700 and 702
Air Regulations Series 2, No. 2
(Aircraft Marking and Registration
Regulations), SOR/90-591, section 19
DESCRIPTION: Cross-Border Services and Investment
1. A person requires a Canadian
operating certificate issued by the
Department of Transport 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 such services,
subject to compliance by such person
with Canadian safety requirements.
2. Such 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
defined in the applicable regulations
(a Canadian national or a corporation
incorporated and having its principal
place of business in Canada, its chief
executive officer and not fewer than
2/3 of its directors as Canadian
nationals, and not less than 75% of
its voting interest owned and
controlled by persons otherwise
meeting these requirements).
3. A person of Mexico or of the
United States may obtain an operating
certificate, subject to compliance by
such person with Canadian safety
requirements, for the provision of
aerial mapping, aerial surveying,
aerial photography, forest fire
management, fire-fighting, aerial
advertising, glider towing and
parachute jumping services.
DURATION: Cross-Border Services
Paragraph 3 of the Description shall
govern upon entry into force of this
Agreement.
A person of Mexico or of the United
States will be permitted to obtain an
operating certificate, subject to
compliance with Canadian safety
requirements, for the provision of the
following specialty air services:
(a) two years after the entry into
force of this Agreement, aerial
construction and heli-logging
services;
(b) three years after the entry into
force of this Agreement, aerial
inspection, aerial surveillance,
flight training, and aerial
sightseeing services; and
(c) six years after the entry into
force of this Agreement, aerial
spraying services.
=============================================================================
ANNEX I
Schedule of Canada
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 1203)
Local Presence (1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Aeronautics Act, R.S.C., 1985,
c. A-2, section 4.9
Air Regulations, Series 2, No.11
[ ]
Airworthiness Manual, chapters 573 and
575 [ ]
Agreement Concerning Airworthiness
Certification, Exchange of Letters
between Canada and the United States,
dated August 31, 1984, CTS______.
DESCRIPTION: Cross-Border Services
Aircraft repair, overhaul and
maintenance activities which are
required to maintain the airworthiness
of Canadian-registered aircraft must
be performed by Canadian-certified
persons. Such certifications are not
provided for enterprises 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, maintenance and
overhaul activities performed by U.S.-
certified persons, including the
individual performing the work,
located in the United States.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
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 1202)
Local Presence (Article 1205)
LEGAL CITATION: Motor Vehicle Transport Act, 1987,
R.S.C., 1985, c. 29, (3rd Supp.),
Parts I and II
National Transportation Act, 1987,
R.S.C., 1985, c. 28 (3rd Supp.), Part
IV
Customs Tariff, R.S.C., 1985, c. 41
(3rd Supp.), subsection 19(1)
DESCRIPTION: Cross-Border Services
Only persons of Canada, using
Canadian-built or duty-paid trucks or
buses, may provide truck or bus
services between points in the
territory of Canada.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
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 (Articles 1102, 1202)
Most-Favored-Nation Treatment (Articles 1103, 1203)
Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c.
S-9, sections 6 and 7
DESCRIPTION: Cross-Border Services and Investment
To register a ship in Canada for the
purpose of providing international
maritime transportation services, the
owner of the ship must be:
(a) a Canadian citizen or a citizen
of a Commonwealth country, or
(b) 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,
p.II-C-10.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
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 1202)
Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Canada Shipping Act, R.S.C., 1985, c.
S-9, Part II
DESCRIPTION: Cross-Border Services
Masters, mates, and engineers are
required to be certified by the
Department of Transport as ship's
officers while engaged on a Canadian-
registered vessel. Only Canadian
nationals may be certified as ship's
officers.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Transportation
SUB-SECTOR: Water Transportation
INDUSTRY CLASSIFICATION: SIC 4554 Piloting Service, Water
Transport Industry
TYPE OF RESERVATION: National Treatment (Article 1202)
Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Pilotage Act, R.S.C., 1985, c. P-14
General Pilotage Regulations, C.R.C.,
Vol. XIII c. 1263
Atlantic Pilotage Authority
Regulations, C.R.C. Vol. XIII, c. 1264
Laurentian Pilotage Authority
Regulations, C.R.C., Vol. XIII, c.
1268
Great Lakes Pilotage Regulations,
C.R.C., Vol. XIII, c. 1266
Pacific Pilotage Regulations, C.R.C.,
Vol. XIII, c. 1270
DESCRIPTION: Cross-Border Services
A licence issued by the Department of
Transport is required to provide
pilotage services in Canada. Only
Canadian citizens or permanent
residents may obtain such licence. A
permanent resident of Canada who has
been issued a pilot's licence must
become a Canadian citizen within five
years of receipt of such licence in
order to retain it.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Transportation
SUB-SECTOR: Water Transportation
INDUSTRY CLASSIFICATION: SIC 454 Water Transport Industry
TYPE OF RESERVATION: Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Shipping Conference Exemption Act,
1987, R.S.C., 1985, c.17 (3rd Supp.),
section 18
DESCRIPTION: Cross-Border Services
Members of a shipping conference shall
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 such carriers of
goods by water.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
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 1203)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Coasting Trade Act, S.C., 1992, c. 31,
subsection 3(5)
DESCRIPTION: Cross-Border Services
The prohibitions under the Coasting
Trade Act set out in Schedule of
Canada, Annex II, p. II-C-10 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.
DURATION: Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Energy
SUB-SECTOR: Oil and Gas
INDUSTRY CLASSIFICATION: [To be provided]
TYPE OF RESERVATION: Performance Requirements (Article 1106)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Canada Oil and Gas Operations Act (in
force as of September 1, 1992)
Hibernia Development Project Act
DESCRIPTION:
1. The terms and conditions of
government assistance for the Hibernia
project require that certain goods and
services be sourced in Newfoundland
and in Canada and that the project
operator undertakes, on a "best
efforts" basis, to achieve specific
Canadian and Newfoundland content
levels.
2. In addition, Canada reserves the
right to impose 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, in connection
with the Hibernia project.
DURATION: For purposes of this entry, paragraph
2 of the Description shall govern with
respect to Canada's reservation to the
obligations of Article 1106(1) (f).
Indeterminate
=============================================================================
ANNEX I
Schedule of Canada
SECTOR: Energy
SUB-SECTOR: Oil and Gas
INDUSTRY CLASSIFICATION: [To be provided]
TYPE OF RESERVATION: Performance Requirements (Article 1106)
Local Presence (Article 1205)
LEVEL OF GOVERNMENT: Federal
LEGAL CITATION: Canada Oil and Gas Operation Act, (in
force as of September 1, 1992)
Canada-Nova Scotia Offshore Petroleum
Resources Accord Implementation Act,
S.C. 1988, c.28
Canada-Newfoundland Atlantic Accord,
S.C. 1987, c.3
Yukon Oil and Gas Accord (under
negotiation)
Northwest Territories Oil and Gas
Accord (under negotiation)
DESCRIPTION:
1. Under the Canada Oil and Gas
Operations Act, the Minister of
Energy, Mines and Resources requires
the applicant to submit a "benefits
plan". Approval of the benefits plan
is required to receive authorization
to proceed with any oil and gas
development project.
2. A "benefits plan" means 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. Similar provisions
will be included in the Yukon and
Northwest Territories Accords.
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:
(a) before carrying out any work or
activity in the offshore area the
corporation or other body
submitting the plan shall
establish in the Province an
office where appropriate levels
of decision-making are to take
place;
(b) expenditures shall 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
(c) first consideration shall 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
in the benefits plan.
5. In addition, Canada reserves the
right to impose 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, in connection
with the approval of development
projects under the Acts cited above.
DURATION: For purposes of this entry, paragraph
5 of the Description shall govern with
respect to Canada's reservation to the
obligations of Article 1106(1) (f).
For purposes of this entry, the Yukon
Oil and Gas Accord and the Northwest
Territories Oil and Gas Accord shall
be deemed to be existing measures,
upon completion of their negotiation.
Indeterminate
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