Initial Environmental Assessment (EA) of the Canada-Jordan Free Trade Negotiations

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Canada - Jordan

Initial Environmental Assessment (EA) of the Canada-Jordan Free Trade Negotiations

1. Executive Summary

In response to today’s rapidly evolving global trading environment, as part of the Global Commerce Strategy, the Government of Canada is committed to an aggressive bilateral trade negotiations agenda, which is supported by Budget 2008 and the Government’s economic plan, Advantage Canada. As part of this agenda, the Government announced, on February 20, 2008, the launch of free trade agreement (FTA) negotiations with the Hashemite Kingdom of Jordan (Jordan). The first round of negotiations took place from April 13-17, 2008, in Amman, Jordan with the second round scheduled for late July 2008 in Ottawa.

There is a strong correlation between open markets, economic development and enhanced environmental protection. Liberalized rules-based trade and efficiently regulated markets are key building blocks for economic growth and development. It has been observed that wealthier countries are better able to implement effective environmental policies than are poorer countries, and that public support for measures to protect the environment generally increases as incomes rise. Open markets also help to foster the development of new, more environmentally friendly technologies, and liberalized trade and investment help to accommodate technology transfer.

Improved understanding of the relationship between trade, economic growth and the environment can assist in the formulation of government policy to reduce potential conflicts between commercial and environmental objectives. In accordance with the 2001 Framework for Conducting Environmental Assessments of Trade Negotiations (Framework), an initial environmental assessment (Initial EA) of a Canada-Jordan FTA has been conducted to assist Canada’s policy makers in addressing potential environmental issues arising from the FTA that may affect Canada.

This Initial EA was conducted as part of Canada’s commitment to achieving a mutually supportive relationship between trade and the environment. It is intended to assist Canadian negotiators in integrating environmental considerations into the negotiating process by providing information on the environmental impacts of the proposed trade agreement, and to help inform related public considerations by outlining how environmental factors are being considered in trade negotiations.

Canada’s broad environmental objectives in negotiating trade agreements are:

to preserve Canada’s ability to protect the environment;
to ensure mutually supportive relationships between trade agreements and multilateral environmental agreements;
to stimulate improved allocative efficiency of resources to generate positive environmental impacts;
to strengthen the environmental management capacities of Canada’s trading partners; and
to use this strengthened capacity to mitigate against transboundary pollutants and invasive species that have the potential to directly affect Canada’s environment, economy and health.

In order to ensure that Canada’s environmental quality is protected when liberalizing trade, Canada includes trade-related environmental provisions in appropriate sections of the FTA (i.e. preamble, initial provisions, general exceptions), and negotiates parallel agreements on the environment.

The context of this EA is the Canada-Jordan FTA negotiations to date, focusing on the potential incremental environmental impacts, if any, of trade-induced economic and regulatory changes in Canada. It applies the analytical methodology outlined in the Framework, which outlines the process for conducting EAs, and identifies the main environmental issues expected to arise as a result of a free trade initiative. As such, it should be underscored that this is a strategic assessment and is intended to inform policy making as the proposed FTA is being negotiated. The findings of this Initial EA have been shared with the interdepartmental EA Committee,which includes broad inter-departmental representation, so as to facilitate informed and inclusive federal policy development and decision-making.

Canada’s exports to Jordan nearly doubled from $30.8 million in 2003 to $60.4 million in 2007. Between 2003 and 2007, Canadian exports to Jordan increased in every year with the exception of 2006 (this one-time, year-over-year decrease reflected a spike in exports of Canadian aircraft in 2005). Jordan was Canada’s 87^th largest export market in 2007, representing 0.01% of total Canadian goods exports that year. Top exports to Jordan include forest products, agriculture and agri-food products, and electrical machinery. Canada imported $16 million worth of goods from Jordan in 2007, up from $5.8 million in 2003. Jordan was Canada’s 111^th largest source of imports in 2007, and accounted for only 0.004% of Canada’s total global imports that year. Apparel represented 84% of Canada’s total goods imports from Jordan in 2007. Aside from apparel, Canada’s main imports from Jordan in 2007 were cucumbers and fertilizer.

An FTA between Canada and Jordan has the potential to expand opportunities for Canadian companies in Jordan’s rapidly growing economy, and in the broader Middle East and North African region. Tariff reduction in the context of an FTA with Jordan is expected to generate commercial benefits in a variety of sectors, including forest products, agriculture and agri-food, and machinery. Nevertheless, given the relatively low levels of trade between Canada and Jordan and the overall size of the Jordanian economy, even a dramatic increase in exports to Jordan would have a modest impact in relation to overall Canadian trade and production levels. Therefore, any environmental impacts resulting from Canadian export and production increases are expected to be of minimal significance. Tariff reduction is also expected to result in increased Canadian imports from Jordan, notably in the apparel sector, although these would continue to constitute a very small share of Canada’s global imports in this sector. No environmental impacts are expected to derive from increases of imports from Jordan as a result of an FTA.

2. Overall Environmental Assessment Process

Given the government’s view that trade and environment policies should be mutually supportive, it is Canada’s practice to pursue trade agreements in a manner consistent with, among other things, environmental protection and conservation. Undertaking environmental assessments (EAs) is an effective way to address potential environmental impacts that may result from the implementation of a trade agreement. The EA process is a mechanism through which to ensure that protection of the Canadian environment is a priority in trade negotiations. It does this by assisting decision makers in understanding the environmental implications of anticipated changes in production and trade flows and by maintaining and enhancing overall policy coherence at the national level.

The Government of Canada is committed to conducting environmental assessments (EAs) for all trade and investment negotiations using a process that involves both interdepartmental coordination and public consultations. The 2001 Framework for the Environmental Assessment of Trade Negotiations¹ (Framework) sets out this process. It was developed in response to the 1999 Cabinet Directive on Environmental Assessment of Policy, Plan and Program Proposals², which requires that all initiatives considered by Ministers or Cabinet must be environmentally assessed if implementation of the proposal may result in important environmental effects, either positive or negative. Detailed guidance for applying the Framework is contained in the Handbook for the Environmental Assessment of Trade³ (Handbook).

The framework is intended to be flexible and generic so that it can be adapted and applied to a variety of trade negotiations on a case-by-case basis according to the nature of the agreement to be negotiated while ensuring a systematic and consistent approach to meet two key objectives:

First, to assist Canadian negotiators to integrate environmental considerations into the negotiating process by providing information on the anticipated impacts of the proposed trade agreement on the Canadian environment.
Second, to help inform public consideration of a prospective FTA by outlining how environmental factors are being considered during negotiations.

Both trade negotiators and environmental experts are involved in the EA and work proceeds in tandem with the negotiations. In addition, the Framework contains a strong commitment to communication and consultation as part of each EA of trade negotiations.

The Framework provides for up to three increasingly detailed phases of assessment: the Initial, Draft, and Final EA. These phases correspond to progress in the negotiations. The Initial EA is a preliminary examination to identify key issues. The Draft EA builds on the findings of the Initial EA and requires more detailed analysis, though the Draft EA is not required if the Initial EA finds little likelihood of significant environmental impacts as a result of the agreement. However, in such circumstances, environmental considerations will continue to be integrated into ongoing negotiations and a Final EA will be completed. The Final EA is conducted at the conclusion of the negotiations. At the completion of each phase, a public report is issued together with a request for feedback.⁴

Following the conclusion of the Final EA, follow-up and monitoring may be undertaken in order to review any mitigation or enhancement measures recommended in the Final EA report. Such activities can be undertaken any time during the implementation of the concluded trade agreement in order to gauge the effects of its provisions from an environmental perspective.

Assessment Methodology

Pursuant to the EA Framework, this Initial EA is being conducted in an ex ante fashion (before the negotiations are completed). A Notice of Intent to conduct a Strategic Environmental Assessment of the Canada-Jordan free trade agreement (FTA) was published in the Canada Gazette on March 1, 2008, though no comments were submitted to the government. It should be underscored that this is a strategic assessment and is intended to inform the decision-making process as the proposed FTA is being negotiated. Consequently, there is some uncertainty associated with identifying likely economic and environmental impacts. Nevertheless, the analysis allows for the early identification of national goals and priorities with respect to trade and environmental interests, as well as any mitigation and enhancement options that can be taken into account while the trade negotiations are underway.

Consistent with the methodology prescribed in the Framework, this assessment explores the link between trade rules and regulatory policy and focuses on the potential, incremental economic and environmental impacts of a Canada-Jordan FTA on Canada. That is, the effects of new trade that may result directly from the proposed trade agreement. Transboundary, regional and global environmental impacts of the FTA are considered insofar as they have a direct impact on the Canadian environment.

The Framework includes a four-stage analytical methodology, as summarized below. The Handbook provides additional guidance on how to conduct each stage of the analysis.

Identification of the economic effect of the Agreement to be negotiated. The purpose of this stage is to identify the nature and scope of trade liberalization activity of the agreement under negotiation. This stage examines the provisions of a potential agreement, the changes or new trade activity that could result, and the overall economic relevance to Canada. This helps to determine the scope of analysis required for the environmental assessment and to prioritise the issues to be assessed.

Identification of the likely environmental impact of such changes. Once the economic effects of the proposed trade agreement have been identified and characterised, the likely positive and negative environmental impacts of such changes are identified. For analytical purposes, “environment” refers to the components of the Earth – which includes land, water and air (all layers of the atmosphere); all organic and inorganic matter; living organisms; and, the interacting natural systems that include components of the foregoing. The Handbook notes that in analysing the impacts on the Canadian environment, there are two main factors that contribute to the likelihood of environmental impact: exposure and probability.
Assessment of the significance of the identified likely environmental impacts. The identified likely environmental impacts are then assessed as to their significance. The Framework outlines a number of criteria in determining significance, including frequency, duration, permanency, geographic scope and magnitude, level of risk, irreversibility of the impacts, and possible synergies among the impacts. This study uses the following scale in relation to the criteria outlined above to describe significance: none, minimal, moderate, high and extreme.
Identification of enhancement/mitigation options to inform the negotiations. In the Initial EA, this step is intended to identify, in a preliminary fashion, possible policy options or actions to mitigate potential negative impacts and/or to enhance potential positive impacts that may occur as a result of the proposed free trade agreement.

In conducting EAs of trade negotiations, the Government of Canada is committed to a process that involves, inter alia, interdepartmental coordination. An interdepartmental committee is established to undertake the EA of each negotiation. The department leading the negotiations heads these EA committees, which are chaired by the Deputy Chief Negotiator for the applicable FTA and includes officials responsible for each negotiating area. The EA Committee also includes representation from Environment Canada and the Canadian Environmental Assessment Agency. All other government departments and agencies are welcome to participate, and many do so, based on the nature and scope of the agreement being assessed.

Results from the EA analysis are also enhanced through consultations with the Provincial and Territorial Governments, stakeholders including representatives from business, academic and non-governmental organizations (NGOs), and the public. In the preparations for the Initial EA, a Notice of Intent is issued inviting the public to provide their thoughts on the potential impacts of the proposed agreement on the Canadian environment. At the conclusion of each phase, EA reports are shared with provinces and territories and environmental experts⁵ and then issued publicly with a request for feedback.

The Government of Canada welcomes comments on this Initial EA Report, including with respect to the analysis of the economic relevance of new negotiations and the initial assessment of the likelihood and significance of resultant environmental impacts. Comments on opportunities to mitigate any negative environmental impacts and to enhance any positive effects as may already be identified at this stage are also welcome. Comments should be sent to:

E-mail: consultations@international.gc.ca or
Fax: (613) 944-7981 or
Mail: Consultations & Liaison Division (CSL)
Environmental Assessment Consultations– Jordan FTA
International Trade Canada
Lester B. Pearson Building
125 Sussex Drive
Ottawa, ON
K1A 0G2

3. Overview of the Trade and Investment Relationship Between Canada and Jordan

In response to today’s rapidly evolving global trading environment, as part of the Global Commerce Strategy, the Government of Canada is committed to an aggressive bilateral trade negotiations agenda, which is supported by Budget 2008 and the Government’s economic plan, Advantage Canada. As part of this agenda, the Government announced, on February 20, 2008, the launch of free trade agreement (FTA) negotiations with Jordan. The first round of negotiations took place from April 13-17, 2008, in Amman, Jordan with the second round scheduled for late July 2008 in Ottawa.

An FTA with Jordan would improve bilateral trade and economic ties, and better position Canadian business vis-à-vis competitors in this market, such as the United States and European Union, which already have FTAs with Jordan. The scope of these FTA negotiations is limited to goods. They build on a bilateral Air Services Agreement, which was announced in July 2007, and a (FIPA), for which negotiations were concluded in June 2007.

Table 1: Economic Indicators for Jordan

Population	2000	2006
Populaton (Millions)	4.8	5.6
Income
Gross Domestic Product (USD Billions)	8.5	14.1
GDP Per Capita (USD Market Prices	1,765	2,519
Trade (USD Billions)
Goods Exports	1.3	5.2
Goods Imports	4.6	11.5
Trade Balance	-3.3	-6.2
Economic Structure: Shares of GDP
Agriculture	2	3
Mining & Quarrying	3	3
Manifacturing	16	20
Others	7	7
Services	72	67

Sources: World Development report 2007 (World Bank); International Financial Statistics and Direction of Trade Statistics (International Monetary Fund); Country Profile: Jordan (Economist Intelligence Unit)

The Jordanian economy has experienced rapid growth in recent years, from GDP of US$8.5 billion in 2000 to $14.1 billion in 2006. Despite having limited natural resources (no significant oil reserves, limited arable agricultural land, and limited supplies of water), Jordan has achieved above-average development outcomes compared to other lower middle-income countries in the region. In 2006, Jordan’s GDP per capita was US$2,519 (or US$5,988 measured at the purchasing power parity exchange rates), compared to US$1,843 for Syria and US$1,488 for Egypt. This strong economic performance in recent years can be attributed to several factors, including:

Sound development policy: According to the World Bank, Jordan is ranked among the best economic reformers in comparison with other lower middle income-countries. Structural reforms have been especially successful in liberalizing the country’s private investment regime, opening to international trade and investment, and establishing modern regulation and institutions for private sector development.⁶
Foreign direct investment: FDI into Jordan more than tripled from US$3.1 billion in 2000 to US$12.7 billion in 2006.
FTA with the United States: Since the Jordan-US FTA entered force in 2001, the U.S. has become the dominant export market for Jordanian goods. Exports to the U.S. grew from US$63 million in 2000 to US$1.3 billion in 2006.
Worker remittances and public grants from abroad: In recent years, capital inflows in the form of workers’ remittances and public grants from abroad accounted for 20-25% of GDP¾one of the world’s highest rates for unilateral transfers.

During this period of economic growth, Jordan’s total global goods imports more than doubled from US$4.6 billion in 2000 to US$11.4 billion in 2006. Consistent with Jordan’s economic and import growth, Canada’s exports to Jordan nearly doubled from $30.8 million in 2003 to $60.4 million in 2007. Between 2003 and 2007, Canadian exports to Jordan increased in every year with the exception of 2006 (this one-time year-over-year decrease was due mainly to high value exports of Canadian aircraft in 2005). Jordan was Canada’s 87^th largest export market in 2007, representing 0.01% of Canada’s global goods exports that year. Top Canadian exports to Jordan in 2007 included forest products, electrical machinery, and agricultural and agri-food products led by pulses and cotton.

Table 2: Canada-Jordan Trade Summary (CAD Millions)

Activity	2003	2004	2005	2006	2007
CDN Goods Exports to Jordan	30.8	42.2	122.5	56.3	60.4
CDN Goods Imports from Jordan	5.8	6.7	8.7	14.6	16.0
Goods Trade Balance	25.0	35.4	113.7	41.7	44.5

Source: Statistics Canada

Jordan’s global goods exports increased from US$1.3 billion in 2000 to US$5.2 billion in 2006. Canada imported $16 million worth of goods from Jordan in 2007, up from $5.8 million in 2003. Jordan was Canada’s 111^th largest source of imports in 2007, and accounted for 0.004% of Canada’s global goods imports that year. Apparel represented 84% of Canada’s total imports from Jordan in 2007. Aside from apparel, Canada’s main imports from Jordan in 2007 were cucumbers and fertilizer.

Although the current levels of both Canadian investment in Jordan and Jordanian investment in Canada are modest, it is expected that the expanding Jordanian economy and the Canada-Jordan Foreign Investment Promotion and Protection Agreement (FIPA), for which negotiations were concluded in June 2007, will provide increased opportunities for Canadian investors in a variety of sectors, including manufacturing, mining, telecommunications, and transportation. Current Canadian investment in Jordan is concentrated in the potash mining sector.

While the Jordanian economy is strongly oriented towards the services sector, services trade between Canada and Jordan is modest, with bilateral flows totaling $5 million in 2004, the most recent year of data availability. Services are not included in the Canada-Jordan FTA negotiations because bilateral services interests are being adequately addressed in the WTO context.

4. Trade and the Environment

Public support for trade liberalization in Canada is linked to the expectation that the environment will be protected. Canada is committed to achieving mutually supportive trade and environment outcomes with its trading partners, and includes as a broad environmental objective when negotiating free trade agreements Canada’s continued ability to protect the environment. Where global and trans-boundary environmental impacts due to increased economic activity directly affect Canada’s environment, economy and the health of Canadians, Canada seeks to work with trading partners to strengthen their national environmental management systems.

In the context of increased economic activity related to trade liberalization, it is important to ensure that Canada and its trading partners maintain high levels of environmental protection and do not lower their standards or enforcement to attract trade or investment. Accordingly, and in order to ensure that economic development remains sustainable, Canada will negotiate with Jordan environment-related provisions in appropriate sections of the FTA and a parallel Environment Agreement.

Incorporating Environmental Provisions into the Canada-Jordan Free Trade Agreement

In the context of the Canada-Jordan FTA negotiations, Canada will negotiate an Environment Chapter within the FTA that includes environmental objectives and a reference to obligations set out in the parallel Environment Agreement.

The parallel Environment Agreement will set out mutual environmental obligations that address, inter alia:

the establishment of high levels of environmental protection;
the commitment not to derogate from domestic environmental laws to encourage trade or investment;
compliance with and the enforcement of environmental laws;
accountability, transparency and public participation on environmental matters; and
the assessment of the environmental impacts of proposed projects.

The Environment Agreement will also provide a framework for environmental cooperation aimed at strengthening the Parties’ environmental management systems. So as to emphasize the need for sustainable development on all fronts, Canada will endeavour to leverage its expertise on key issues of interest to both Parties, including enforcement and compliance issues, corporate social responsibility, and the enhancement of trade and environment linkages.

Canada-Jordan Environmental Cooperation Activities

In addition to concluding a bilateral Environment Agreement as part of the FTA package, Canada will continue to work with Jordan on a number of environmental initiatives currently underway. The Canadian International Development Agency (CIDA) contributed approximately $4 million over seven years, from 1998 to 2005, to the Jordan Valley Integrated Waste Management project. Through this project Canada assisted Jordan in introducing an improved technology for community waste management in the Jordan Valley. It involved the creation of a new and efficient waste management system and the introduction of appropriate cost-effective waste water treatment technology. The project also included a strong community-participation element and a revenue-generation component.

Jordan is also part of CIDA’s Water Demand Initiative in the Middle East and North Africa (MENA) region. The goal of the project is to facilitate the adoption and implementation of water demand management strategies, policies and tools in countries of the MENA region. The program is comprised of a number of components including: action research⁷, field-level pilot activities, regional exchange⁸, knowledge networking and capacity development. The $2 million project, which began in 2005, is expected to run until 2010.

CIDA is currently funding the $2 million dollar Mediterranean Wetlands Capacity Building project, which is operational in four countries including Jordan. The project is designed to build civil society's capacity to engage with their governments concerning improved wetlands management. The wetlands are an important water resource for many communities in a region where annual water consumption outstrips renewable resources. An increased focus on civil society on these issues will help reduce possible tensions and more effectively take into account the opinions of those people who rely on the wetland resources. This project, which began in 2007, is expected to run until 2012.

5. Initial Environmental Assessment Findings

The Initial EA findings are the result of a scoping exercise and subsequent analysis based on the analytical methodology outlined in the EA Framework. Table 1 presents the findings of the scoping exercise for each issue area (and corresponding FTA chapter) that were identified as not requiring in-depth analysis for the purposes of the Initial EA. This is followed by a more detailed analysis of trade in goods.

Results of Initial EA Analysis

Preamble: Anticipated outcome and Potential environmental implications and provisions

The preamble will provide guidance on the general intentions of the two Parties to the agreement, but is not binding. The preamble is expected to reference the Parties’ ongoing commitment to sustainable development and cooperation on environmental matters.

Initial Provisions: Anticipated outcome and Potential environmental implications and provisions

This chapter will establish the free trade area between Canada and Jordan, define the relation of the FTA to other agreements, and the extent of obligations. A proposed provision will make reference to the mutual commitments to multilateral environmental agreements (MEAs) and the relationship between the FTA and MEA obligations.

Rules of Origin: Anticipated outcome and Potential environmental implications and provisions

This chapter will include rules of origin that are clear, as simple as possible, and leave little room for administrative discretion. The rules are intended to ensure that the benefits of the FTA accrue only to goods qualifying as originating in the territory of either Party. Production and consumption changes resulting from rules of origin will be included in the Trade in Goods section of this Report.

Customs Procedures: Anticipated outcome and Potential environmental implications and provisions

This chapter will seek to ensure that the rules of origin are administered and enforced in a fair and transparent manner. There are no foreseen environmental impacts as a result of this chapter.

Trade Facilitation: Anticipated outcome and Potential environmental implications and provisions

This chapter will seek to streamline customs processes and facilitate the movement of goods across borders more efficiently. It is expected that any measures agreed to between the Parties would have minimal impact on the environment. Outcomes related to trade facilitation would not impact the Government of Canada’s ability to implement measures or regulations to protect the environment.

Emergency Action: Anticipated outcome and Potential environmental implications and provisions

This chapter will establish the Parties' rights and obligations with respect to the temporary suspension of FTA tariff concessions in the event that a surge in imports resulting from these tariff concessions causes serious injury or threat thereof to domestic industry producing like or directly competitive goods. There are no foreseen environmental impacts as a result of this chapter.

Sanitary and Phytosanitary Measures (SPS): Anticipated outcome and Potential environmental implications and provisions

This chapter will reaffirm commitments made under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and confirm the continued use of the WTO dispute settlement procedures for any formal disputes regarding SPS measures. As provided in the WTO Sanitary and Phytosanitary Measures Agreement, all Members maintain the right to take measures necessary for the protection of human, animal or plant life or health. All Members are required to ensure that SPS measures are applied only to the extent necessary to protect human, animal or plant life or health, and are based on scientific principles.

Technical Barriers to Trade (TBT): Anticipated outcome and Potential environmental implications and provisions

TBT provisions will affirm commitments made under the WTO Technical Barriers to Trade Agreement (TBT Agreement); promote greater cooperation in the field of standards, technical regulations and conformity assessment procedures; and address horizontal transparency issues, including notifications and participation in consultation processes. These provisions will reaffirm WTO TBT rights and obligations, including the right of all Members to take measures necessary to ensure the protection of human, animal or plant life or health. All Members are required to ensure that TBT measures are not more trade-restrictive than necessary to fulfil such legitimate objectives.

Monopolies and State Enterprises: Anticipated outcome and Potential environmental implications and provisions

This chapter will include provisionsthat permit the designation of monopolies and stateenterprises but place disciplines on a Party with respect to such entities.These include disciplines to ensure that a Party does notcircumvent obligations under the agreement, and that monopolies and state enterprises provide non-discriminatory treatment to investors of the other Party, act in accordance with commercial considerations and do not act anti-competitively outside of their monopoly designation. Canada will safeguard its ability to delegate governmental authority to monopolies and state enterprises. No environmental impacts are expected as a result of these provisions.

Environment: Anticipated outcome and Potential environmental implications and provisions

This chapter will outline principles and objectives that are elaborated upon in the Environment Agreement. There will be no binding obligations in this Chapter – these are set out in the Environment Agreement. No environmental impacts are expected as a result of this chapter.

Labour: Anticipated outcome and Potential environmental implications and provisions

This chapter will outline principles and objectives that are elaborated upon in the Labour Cooperation Agreement There will be no binding obligations in this Chapter – these are set out in the Labour Cooperation Agreement. No environmental impacts are expected as a result of this chapter.

Transparency: Anticipated outcome and Potential environmental implications and provisions

This chapter will facilitate the administration and smooth operation of the agreement by reiterating the Parties’ commitment to transparency and due process regarding matters covered by the FTA. This chapter will allow the Parties to review and comment in a transparent manner on any new laws or regulations, including those that may have negative environmental implications.

Dispute Settlement: Anticipated outcome and Potential environmental implications and provisions

This chapter will include state-to-state dispute resolution procedures based on the dispute settlement provisions of the NAFTA, but simplified and improved where possible. No environmental impacts are expected as a result of this chapter.

Exceptions: Anticipated outcome and Potential environmental implications and provisions

This chapter will include exceptions for measures such as those necessary to protect, inter alia, human, animal or plant life or health, as well as the environment. A GATT (Article XX) type exception will allow for the adoption or enforcement of measures to protect animal or plant life or health, and measures relating to the conservation of exhaustible natural resources.

Trade in Goods

In accordance with the Environmental Assessment Methodology, as outlined in Section II (A), this section includes:

An economic analysis of bilateral trade flows and expected growth areas as a result of a Canada-Jordan FTA;
Identification of potential environmental impacts associated with this trade growth and an assessment of the significance of these impacts; and
Identification of mitigation and enhancement measures that could address potential environmental impacts.

Anticipated Trade and Economic Effects of FTA

The proposed FTA will seek to improve market access in goods, principally through bilateral elimination of tariffs. The largest trade gains resulting from the FTA are expected in currently traded sectors facing significant tariff barriers. Canadian negotiators will also seek to include provisions that would facilitate increased cooperation with the government of Jordan to make trade more efficient, including through trade facilitating measures and customs procedures designed to provide certainty, transparency and effective verification. Rules of origin that are transparent, predictable and consistent in application will be developed to ensure that the benefits negotiated under the trade agreement accrue to its Parties.

The Canada-Jordan bilateral trade relationship has grown in recent years even in the absence of an FTA. An FTA is expected to further bolster this commercial relationship, particularly in the sectors outlined below. However, the Canada-Jordan trade relationship assumes a very small role in the context of Canada’s overall global trade flows. This would continue to be the case even if trade expanded dramatically as a result of an FTA.

Canadian Exports to Jordan

The Jordanian economy has experienced rapid growth in recent years, from GDP of US$8.5 billion in 2000 to US$14.1 billion in 2006. During this period of economic expansion, Jordan’s total global goods imports more than doubled from US$5.8 billion to US$13.0 billion per year. Consistent with this trend, Canada’s exports to Jordan nearly doubled from $30.8 million in 2003 to $60.4 million in 2007, making Jordan Canada’s 87^th largest export destination in that year. Between 2003 and 2007, Canadian exports to Jordan increased in every year with the exception of 2006 (this one-time, year-over-year decrease was due mainly to high value exports of aircraft in 2005). Despite recent growth of Canadian exports to this market, Canadian exports to Jordan represented only 0.01% of total Canadian global goods exports that year. Even if Canadian exports to Jordan were to expand ten-fold in the years following the implementation of the Canada-Jordan FTA, Canada’s exports to this market would represent only 0.1% of Canada’s 2007 global goods exports, suggesting that export growth resulting from an FTA with Jordan would have only a modest effect on Canada’s overall trade and production levels.

The table below lists Canada’s top 10 exports to Jordan in 2007 by product sectors. Exports from these groups accounted for 82% of Canada’s total exports to Jordan in that year. Canada’s top three sectors exporting to Jordan (forest products, agriculture, and electrical machinery) totalled a combined $38 million, or 62% of Canada’s total exports to Jordan in 2007. Exports to Jordan did not account for over 0.1% of Canadian global exports in any of these top ten export sectors in 2007.

Table 3: Canadian Exports to Jordan by Sector ($ CAD Millions)

Sector	2003	2004	2005	2006	2007	% 2007 Total CDN Exports to Jordan	% 2007 Total CDN Global Exports	2007 Avg. Jordan Tariff
Forest Products	7.2	18.8	19.4	19.6	19.5	32.19%	0.06%	12.1%
Agriculture	3.8	2.9	3.8	11.7	12.5	20.27%	0.04%	18.1% [Note 1]
Electrical Machinery	3.2	1.9	6.4	3.8	5.9	9.70%	0.03%	10.5%
Textiles	0.3	0.7	0.9	2.7	2.7	4.49%	0.10%	5.4%
Areospace Products	0.8	1.2	62.6	0.6	1.7	2.86%	0.01%	7.8%
Industrial Machinery	1.6	3.6	12.6	3.5	1.7	2.79%	0.01%	4.9%
Plastics	0.4	0.2	0.5	0.9	1.6	2.72%	0.01%	2.6%
Auto Parts	1.1	0.8	2.4	0.8	1.4	2.24%	0.01%	21.8%
Pharmaceuticals	1.8	0.7	1.2	0.9	1.3	2.22%	0.02%	0.6%
Iron and Steel	1.8	1.4	1.9	0.8	1.3	2.15%	0.01%	11.3%
Subtotal	22.1	33.3	111.7	45.2	48.3	81.63%
Others	8.7	8.9	10.7	11.1	11.1	18.37%
Total CDN Exports to Jordan	30.8	42.2	122.5	56.3	60.4	100.00%	0.01%

Sources: World Trade Atlas (Statistics Canada Data); 2007 Jordan Customs Tariff

Note 1: AdValorem simple average MFN rate, WTO 2007 calculation.

Canadian non-agricultural exports to Jordan totalled $48 million in 2007. Jordan applies, on average, an MFN tariff of 10.4% on non-agricultural products and many goods from key Canadian non-agricultural export sectors face Jordanian tariffs of up to 30%. An FTA is expected to eliminate tariffs on all non-agricultural goods within a specified number of years and could therefore be expected to facilitate further growth in Canadian non-agricultural exports to this market. Canadian sectors with the highest recent exports to Jordan and which face high Jordanian tariffs are expected to see the largest commercial gains as a result of tariff elimination.

Canada’s top non-agricultural sector exporting to Jordan in 2007 was forest products, including pulp, paper, wood and other products, which totalled $19.5 million (roughly equivalent to figures from 2004 to 2006). This sector accounted for 41% of non-agricultural exports or 32% of total Canadian exports to Jordan in 2007. Jordan’s average applied MFN tariff on forest products is 12.1%, with tariffs of 20–30% applied on many products of Canadian export interest, suggesting that tariff elimination in the context of a Canada-Jordan FTA would result in commercially significant benefits for Canadian exporters in this sector. However, Canada’s 2007 forest products exports to Jordan represented only 0.06% of Canada’s $34.9 billion global forest product exports. Moreover, Jordan’s global forest product imports in 2007 amounted to only $491.4 million, less than 1.5% of Canada’s global forest product exports. These figures suggest that even very strong growth of forest product exports resulting from an FTA would have only a relatively small effect on Canada’s overall export and production levels in this sector.

Electrical machinery, including information and communications equipment, represented Canada’s second largest non-agricultural sector exporting to Jordan in 2007, with exports totalling $5.9 million, the second-highest annual total over the 2003 to 2007 period ($6.4 million of exports to Jordan were recorded in 2005). Electrical machinery accounted for over 12% of Canada’s non-agricultural exports to Jordan in 2007 and 10% of total exports. Jordan’s average applied tariff on electrical machinery is 10.5%, with tariffs of up to 30% on products of Canadian export interest, suggesting that this sector could also see significantly expanded commercial opportunities as a result of a Canada-Jordan FTA. However, similar to forest products, an increase of electrical machinery exports to Jordan following an FTA would have a modest effect on Canadian production and global export levels in this sector, as exports to Jordan represented only 0.03% of Canadian global exports in this sector in 2007.

Other significant non-agricultural product groups exported to Jordan in 2007 included textiles ($2.7 million, 4.5% total exports to Jordan), aerospace products ($1.7 million, 2.9% total exports to Jordan), and industrial machinery ($1.7 million, 2.8% total exports to Jordan). These sectors could also see meaningful commercial gains as a result of an FTA, although in all cases, 2007 exports to Jordan represented less than 0.03% of Canadian global exports.

Canada exported $12.2 million of agricultural and agri-food products to Jordan in 2007. Leading agricultural exports include pulses ($5.7 million), cotton ($4.2 million), prepared foods ($700,000), and frozen french fries and other potato products ($600,000). An FTA is expected to eliminate Jordanian tariffs for most agricultural products of export interest, such as pulse crops, frozen french fries, various prepared foods and animal feeds, which face high tariffs of as much as 30%. While the reduction or elimination of tariffs could significantly increase Canadian agricultural export flows to Jordan, overall economic effects on Canada’s agriculture sector would be modest given that Canada’s $12 million of agricultural exports to Jordan in 2007 represents 0.04% of Canada’s $31.8 billion of global agricultural exports that year. Even if agricultural exports were to expand dramatically as a result of an FTA, total Canadian exports to Jordan in this sector would still amount to a very small share of Canadian global exports and production.

Canadian Imports from Jordan

Under an FTA, Canada would be prepared to eliminate tariffs on most goods imported from Jordan, which would tend to result in an increase in Canadian imports from Jordan. While Jordan is a recipient of Canada’s General Preferential Tariff (GPT), which provides preferential tariff rates for certain goods of qualifying developing countries, the vast majority of imports from Jordan are apparel products for which there is no preferential GPT tariff. Canada imported $16 million worth of goods from Jordan in 2007, up from $5.8 million in 2003. Jordan was Canada’s 111^th largest source of imports in 2007, and accounted for only 0.004% of Canada’s total global imports that year. The table below lists Canada’s top ten imports from Jordan in 2007 by product sectors. Imports from these groups accounted for 99% of Canada’s total imports from Jordan that year.

Table 4: Canadian Imports from Jordan by Sector ($ CAD Millions)

Sector	2003	2004	2005	2006	2007	% 2007 Total CDN Imports from Jordan	% 2007 Total CDN Global Imports	2007 Avg. CDN Tariff
Forest Products	4.44	4.75	6.57	10.71	13.36	83.719%	0.182%	16.3%
Agriculture	0.52	0.83	1.38	1.29	1.28	7.91%	0.005%	17.4% [Note 2]
Electrical Machinery	0.00	0.00	0.00	0.00	0.42	2.64%	0.063%	0.0%
Textiles	0.00	0.00	0.08	0.33	0.28	1.75%	0.005%	1.3%
Areospace Products	0.14	0.02	0.07	0.60	0.12	0.77%	0.001%	0.1%
Industrial Machinery	0.01	0.04	0.09	0.08	0.09	0.57%	0.007%	2.5%
Plastics	0.02	0.01	0.08	0.11	0.09	0.54%	0.000%	0.4%
Auto Parts	0.05	0.05	0.07	0.03	0.05	0.30%	0.001%	0.8%
Pharmaceuticals	0.12	0.18	0.14	0.18	0.04	0.25%	0.002%	2.2%
Iron and Steel	0.25	0.04	0.04	0.03	0.03	0.19%	0.001%	2.9%
Subtotal	5.5	5.9	8.5	13.4	15.7	98.62%
Others	0.2	0.8	0.3	1.2	0.2	1.38%
Total CDN Exports to Jordan	5.7	6.7	8.8	14.6	15.9	100.00%	0.004%

Sources: World Trade Atlas (Statistics Canada Data); 2007 Jordan Customs Tariff

Note 2: AdValorem simple average MFN rate, WTO 2007 calculation.

Apparel constituted a large majority of Canada’s annual imports from Jordan each year from 2003 to 2007. Imports of apparel in 2007 totalled $13.4 million and represented 84% of Canada’s total imports from Jordan. Canada applies tariffs of 17–18% on these apparel imports. Due to the large share of Canada’s recent imports from Jordan in this sector and the relatively high tariff rates applied on these imports, it is expected that this sector will be the predominant beneficiary of Canadian tariff elimination in the context of an FTA. However, as apparel imports from Jordan represented less than 0.2% of Canada’s global apparel imports in 2007, and because imports from Jordan in this sector are expected to largely displace imports from other international suppliers, it is expected that increased imports in this sector resulting from an FTA would have negligible effects on overall Canadian imports and production levels.

Aside from apparel, Canada’s main imports from Jordan in 2007 were agricultural products ($1.3 million), predominantly cucumbers ($770,000) and fertilizer ($420,000). Both of these products qualify for duty-free treatment under Canada’s GPT, and are therefore not expected to see notable gains as a result of tariff elimination under an FTA.

Potential Environmental Impacts and Significance

In light of the relatively small bilateral trade relationship between Canada and Jordan, environmental impacts resulting from a Canada-Jordan FTA are expected to have minimal significance. It is expected that any environmental impacts would be related to increased Canadian production due to greater Jordanian demand for Canadian exports as a result of tariff elimination. In particular, due to their large shares of Canadian exports to Jordan, the forest products and agricultural sectors are the areas in which production increases, and potentially environmental impacts, could be most likely as a result of an FTA with Jordan. However, as outlined below, minimal environmental impact is anticipated from increased Canadian exports to Jordan as a result of an FTA.

As noted in the previous section, forest products, with $19.5 million of exports to Jordan in 2007, are Canada’s largest non-agricultural export sector by a wide margin and the only non-agricultural sector with 2007 exports to Jordan exceeding $10 million. In principle, increased output in this sector could have environmental impacts, particularly regarding the sustainability of Canadian forests. However, as noted above, exports to Jordan accounted for only 0.06% of Canada’s $34.9 billion in total global exports of forest products in 2007, illustrating that even in the event of dramatic export growth in this sector as a result of an FTA, they would still constitute a very small share of Canadian exports and production. As such the significance of any environmental impact resulting from export expansion in the forest product sector is expected to be minimal and easily accommodated by current forest management programs.

Regarding increased agricultural exports and potential environmental impacts, the most significant changes in agricultural production are changes that affect land use (e.g. cropland under summerfallow, use of marginal lands) and changes in livestock numbers. Similar to the forest product sector, while the elimination of tariffs could increase Canadian agricultural export flows to Jordan, the significance of any environmental impacts would be minimal given that Canada’s $12 million of agricultural exports to Jordan in 2007 represents a very small share (0.04%) of Canada’s $31.8 billion of global agricultural exports that year. Even given very significant export growth, exports in this sector would still amount to a very small share of Canadian global exports and production. Further, Canada’s agricultural production is of relatively low intensity and, thus, any increase in domestic production in response to higher market demand in Jordan for Canadian agricultural products would be expected to have minimal environmental impact.

It is also reasonable to expect that some of the increases in Canadian agricultural and non-agricultural exports to Jordan made possible by tariff elimination may reduce exports to other less profitable destinations, thus further mitigating any potential environmental impact anticipated from increased trade flows.

Regarding the environmental implications of increased imports from Jordan as a result of an FTA, as noted above, increases of imports are expected to be concentrated in apparel products, and would represent a very small fraction of Canadian global apparel imports and domestic production in this sector. Further, it is anticipated that any increases of apparel imports from Jordan would come largely at the expense of other international suppliers, with limited impacts on Canadian production. No environmental impact is expected to result from increased apparel imports from Jordan, and virtually no environmental impact is expected to result from increased imports from Jordan in all sectors combined.

Mitigation and Environmental Enhancement Measures

Although minimal environmental impacts are expected to result from a Canada-Jordan FTA, given the predominance of the forest product sector amongst Canadian non-agricultural exports to Jordan, it is important to underscore that Canadian governments at the federal, provincial and territorial levels have taken steps to ensure that forests are managed in accordance with sustainable development principles. Canada’s commercial forest resources are largely managed by the provinces through forest management tenure agreements that strictly regulate harvesting, silviculture and forestry practices. These policies provide for regulatory and audit mechanisms based on sustainable development principles to ensure that timber is not harvested at rates exceeding a forest’s capacity to regenerate. Any marginal increase in production of those products that might result from tariff elimination in the context of a Canada-Jordan FTA could be easily accommodated within current forest management programs.

While minimal environmental impact is likewise expected to result from increased agricultural exports to Jordan as a result of the FTA, should there be any discernable environmental impacts, Agriculture and Agri-Food Canada (AAFC) has a number of programs in place intended to improve the environmental performance of the agriculture and agri-food sector. In conjunction with the provincial and territorial governments, AAFC, through the Agricultural Policy Framework (APF) 2002-2009, assists producers in accelerating the adoption of improved environmental practices.

AAFC funds various initiatives intended to improve the environmental performance of the agri-food sector, including:

Environmental Farm Planning (EFP): Farmers with EFPs are eligible to apply for financial and technical assistance to implement beneficial management practices through the National Farm Stewardship Program and Greencover Canada.
Greencover Canada: Landowners can access a package of funding and technical assistance to help improve grassland-management practices, protect water quality, reduce greenhouse-gas emissions, and enhance biodiversity and wildlife habitat.
National Agri-Environmental Standards Initiative: Producers will benefit from performance standards establishing the degree of desired environmental quality of air, water and soil in agricultural areas.
The National Agri-Environmental Health Analysis and Reporting Program provides objective, science-based indicators to inform decision-makers in agriculture and help improve policies and programs aimed at addressing environmental issues faced by producers.
National Farm Stewardship Program: Landowners can receive financial and technical assistance to implement on-farm beneficial management practices to address environmental risk identified in their Environmental Farm Plans.
The National Land and Water Information Service is developing an Internet portal to provide land managers with information, data, tools and expertise to help them make sustainable land-use decisions.
National Water Supply Expansion Program: Producers and agricultural communities can receive technical and financial assistance to help meet their everyday growing water needs.
The Pesticide Risk Reduction Program develops and implements strategies, conducts research and develops alternative approaches to pest management.
The Minor Use Program assists producers in accessing more environmentally friendly and efficient pest management technologies.
Various ongoing programs built upon the work of the activities of the Prairie Farm Rehabilitation Administration (PFRA), delivered to ensure the sustainable use and conservation of agricultural soil and water resources, such as grassland management, irrigation, crop diversification and shelterbelt planning.

In addition, provincial environmental legislation and initiatives normally have a direct impact on farming operations. They include a range of mechanisms designed to encourage or require environmentally sound farming practices:

extension services or funding to carry out specific practices, develop infrastructure, or diversify operations to reduce the environmental impact of agricultural production;
information documents on beneficial management practices;
regulations on reducing agricultural pollution;
policies encouraging the development of on-farm environment plans;
regulations on the development and operation of new or expanded livestock operations; and
legislation to regulate the discharge of pollutants.

Efforts related to the above and other programs will help offset any negative environmental impact that may result from liberalized agricultural trade with Jordan. In the event the environmental impacts as a result of the FTA turn out to be greater than expected, consideration will be given to expanding existing programs or creating new ones to deal with any negative effects.

A detailed list of federal, provincial and territorial legislation and regulations that may enhance positive environmental impacts or mitigate against negative environmental impacts of trade agreements is attached as Appendix 1 of this report.

6. Conclusion

The conclusion of a Canada-Jordan FTA would strengthen the existing bilateral commercial relationship. Given the relatively low levels of existing trade between Canada and Jordan and the overall size of the Jordanian economy, however, even a dramatic increase in exports would have a modest impact in relation to overall Canadian trade and production levels. Therefore, any environmental impacts resulting from Canadian export and production increases are expected to be of minimal significance.

In circumstances where the Initial EA does not anticipate significant environmental impacts for Canada, the Framework for the Environmental Assessment of Trade Negotiations does not require the Draft EA phase. Accordingly, the next environmental assessment covering the Canada-Jordan free trade initiative is expected to be the Final EA. That said, the findings of the Initial EA, published herein, public comments, and other new information that may become available will continue to inform both the negotiations and the EA process.

In accordance with the Framework, the Final EA will be conducted based on the outcome of the negotiations, and the findings will be made public. As such, it will include a discussion of any comments received in response to the Initial EA and further analysis regarding the anticipated environmental impacts of the agreement on Canada.

Following the conclusion of the Final EA, follow-up and monitoring can be undertaken in order to review any mitigation or enhancement measures recommended in the Final EA report. Monitoring and follow-up activities can be undertaken anytime during the implementation of a concluded trade agreement in order to gauge the performance of its provisions from an environmental perspective.

In tandem with the FTA negotiations with Jordan, a separate but parallel environmental agreement is being pursued. The Environment Agreement will, inter alia, provide a framework for environmental cooperation aimed at strengthening the Parties’ environmental management systems. Recognizing the need to reinforce sustainable development on all fronts, Canada will endeavour to leverage its expertise on related issues of interest to both Parties, which may include environmental enforcement and compliance issues, corporate social responsibility, and enhancing trade and environment linkages.

Appendix 1 - Environmental Legislation and Regulations

Below is a non-exhaustive list of federal, provincial and territorial legislation⁹ and regulations that may enhance positive environmental impacts or mitigate against negative environmental impacts of trade agreements.

Laws of General Application

Federal

Antarctic Environmental Protection Act
Auditor General Act
Canada Emission Reduction Incentives Agency Act (S.C. 2005, c. 30)
Canada National Parks Act (S.C. 2000, c. 32)
Canada Shipping Act (R.S.C. 1985, c. S-9)
Air Pollution Regulations (C.R.C., c. 1404)
Ballast Water Control and Management Regulations (SOR/2006-129)
Collision Regulations (C.R.C., 1978, c. 1416)
Dangerous Bulk Materials Regulations (SOR/87-24)
Dangerous Chemicals and Noxious Liquid Substances Regulations (SOR/93-4)
Dangerous Goods Shipping Regulations (SOR/81-951)
Fire Detection and Extinguishing Equipment (C.R.C. 1978, c. 1422)
Garbage Pollution Prevention Regulations (C.R.C., c. 1424)
Great Lakes Sewage Pollution Prevention Regulations (C.R.C., c. 1429)
Non-Pleasure Craft Sewage Pollution Prevention Regulations (SOR/91-659)
Oil Pollution Prevention Regulations (SOR/93-3)
Pleasure Craft Sewage Pollution Prevention Regulations (SOR/91-661)
Pollutant Discharge Reporting Regulations, 1995 (SOR/95-351)
Pollutant Substances Regulations (C.R.C., c. 1458)
Response Organizations and Oil Handling Facilities Regulations (SOR/95-405)

Canada Transportation Act

Canadian Environmental Assessment Act (CEAA)

CANADIAN ENVIRONMENTAL ASSESSMENT ACT (S.C. 1992, c. 37)
Canada Port Authority Environmental Assessment Regulations (SOR/99-318)
Comprehensive Study List Regulations (SOR/94-638)
Exclusion List Regulations (SOR/94-639)
Federal Authorities Regulations (SOR/96-280)
Inclusion List Regulations (SOR/94-637)
Law List Regulations (SOR/94-636)
Projects Outside Canada Environmental Assessment Regulations (SOR/96-491)
Regulations Respecting the Coordination by Federal Authorities of Environmental Assessment Procedures and Requirements (SOR/97-181)

Canadian Environmental Protection Act, 1999 (CEPA)

Canadian Environmental Protection Act, 1999 (S.C. 1999, c. 33)
2-Butoxyethanol Regulations (SOR/2006-347)
Alberta Equivalency Order (SOR/94-752)
Asbestos Mines and Mills Release Regulations (SOR/90-341)
Benzene in Gasoline Regulations (SOR/97-493)
Biological Test Method: Reference Method for Determining Acute Lethality of Effluents to Daphnia magna (EPS 1/RM/14)
Biological Test Method: Reference Method for Determining Acute Lethality of Effluents to Rainbow Trout (EPS 1/RM/13)
Biological Test Method: Test of Larval Growth and Survival Using Fathead Minnows (EPS 1/RM/22)
Biological Test Method: Test of Reproduction and Survival Using the Cladoceran Ceriodaphnia dubia (EPS 1/RM/21)
Chlor-Alkali Mercury Release Regulations (SOR/90-130)
Chlorobiphenyls Regulations (SOR/91-152)
Code of Practice for the Reduction of Chlorofluorocarbon Emissions from Refrigeration and Air Conditioning Systems
Compliance and Enforcement Policy for the Canadian Environmental Protection Act,1999 (CEPA,1999) (March 2001)
Contaminated Fuel Regulations (SOR/91-486)
Disposal at Sea Regulations (SOR/2001-275)
Domestic Substances List (SOR/94-311)
Environmental Assessments of Priority Substances Under the Canadian Environmental Protection Act
Environmental Code of Practice for Base Metals Smelters and Refineries (First Edition, March 2006)
Environmental Code of Practice for Elimination of Fluorocarbon Emissions from Refrigeration and Air Conditioning Systems
Environmental Code of Practice for Integrated Steel Mills (EPS 1/MM/7 - March 2001)
Environmental Code of Practice for Non-Integrated Steel Mills (EPS 1/MM/8 - March 2001)
Environmental Code of Practice for the Reduction of Solvent Emissions from Dry Cleaning Facilities (CCME-EPC/AITG-50E)
Environmental Code of Practice for Vapour Recovery in Gasoline Distribution Networks (CCME-EPC/TRE-30E)
Environmental Code of Practice on Halons (Code of Practice EPS 1/RA/3E)
Environmental Emergency Regulations (SOR/2003-307)
Export and Import of Hazardous Waste and Hazardous Recyclable Material Regulations (SOR/2005-149)
Export Control List Notification Regulations (SOR/2000-108)
Export of Substances Under the Rotterdam Convention Regulations (SOR/2002-317)
Federal Above-ground Storage Tank Technical Guidelines (P.C. 1996-1233)
Federal Halocarbon Regulations, 2003 (SOR/2003-289)
Federal Mobile PCB Treatment and Destruction Regulations (SOR/90-5)
Federal Underground Storage Tank Technical Guidelines
Fuels Information Regulations, No. 1 (C.R.C., c. 407)
Gasoline and Gasoline Blend Dispensing Flow Rate Regulations (SOR/2000-43)
Gasoline Regulations (SOR/90-247)
Guidance Document for Flow Measurement of Metal Mining Effluents (April 2001)
Guidance Document for the Sampling and Analysis of Metal Mining Effluents (April 2001)
Guide to Understanding the Canadian Environmental Protection Act, 1999 (October 27, 2004)
Guidelines for the Implementation of the Pollution Prevention Planning Provisions of Part 4 of the Canadian Environmental Protection Act, 1999 (CEPA 1999) (February 2001)
Guidelines for the Notification and Testing of New Substances: Chemicals and Polymers (REPEALED) (August 2001)
Guidelines for the Use of Information Gathering Authorities Under Section 46 of the Canadian Environmental Protection Act, 1999 (March 2001)
Guidelines for Volatile Organic Compounds in Consumer Products (2003)
Implementation Guidelines for Part 8 of the Canadian Environmental Protection Act, 1999 – Environmental Emergency Plans (September 2003)
Interprovincial Movement of Hazardous Waste Regulations (SOR/2002-301)
List of Hazardous Waste Authorities (SOR/92-636)
List of Toxic Substances Authorities (SOR/94-162)
Masked Name Regulations (SOR/94-261)
National Emission Guidelines for Stationary Combustion Turbines (CCME-EPC/AITG-49E)
National Pollutant Release Inventory and Municipal Wastewater Services (May 2003)
New Source Emission Guidelines for Thermal Electricity Generation (Canada Gazette, Part I, January 4, 2003)
New Substances Fees Regulations (SOR/2002-374)
New Substances Notification Regulations (Chemicals and Polymers) (SOR/2005-247)
New Substances Notification Regulations (Organisms) (SOR/2005-248)
Non-domestic Substances List (Canada Gazette, Part I)
Notice with Respect to Reporting of Greenhouse Gases (GHGs) for 2005 (Canada Gazette Part I, March 12, 2005)
Notice with Respect to Reporting of Greenhouse Gases (GHGs) for 2006 (Canada Gazette, Part I, July 15, 2006)
Notice with Respect to Selected Substances Identified as Priority for Action (Canada Gazette Part I, March 4, 2006)
Notice with Respect to Substances in the National Pollutant Release Inventory for 2005 (Canada Gazette, Part 1, February 19, 2005)
Notice with respect to substances in the National Pollutant Release Inventory for 2006 (Canada Gazette Part I, February 25, 2006)
Off-Road Compression-Ignition Engine Emission Regulations (SOR/2005-32)
Off-Road Small Spark-Ignition Engine Emission Regulations (SOR/2003-355)
On-Road Vehicle and Engine Emission Regulations (SOR/2003-2)
Ozone-Depleting Substances Regulations, 1998 (SOR/99-7)
PCB Waste Export Regulations, 1996 (SOR/97-109)
Persistence and Bioaccumulation Regulations (SOR/2000-107)
Phosphorus Concentration Regulations (SOR/89-501)
Prohibition of Certain Toxic Substances Regulations, 2005 (SOR/2005-41)
Pulp and Paper Mill Defoamer and Wood Chip Regulations (SOR/92-268)
Pulp and Paper Mill Effluent Chlorinated Dioxins and Furans Regulations (SOR/92-267)
Registration of Storage Tank Systems for Petroleum Products and Allied Petroleum Products on Federal Lands Regulations (SOR/97-10)
Regulations Respecting Applications for Permits for Disposal at Sea (SOR/2001-276)
Reporting For The Domestic Substances List
Rules of Procedure for Boards of Review (SOR/2003-28)
Secondary Lead Smelter Release Regulations (SOR/91-155)
Solvent Degreasing Regulations (SOR/2003-283)
Storage of PCB Material Regulations (SOR/92-507)
Sulphur in Diesel Fuel Regulations (SOR/2002-254)
Sulphur in Gasoline Regulations (SOR/99-236)
Tetrachloroethylene (Use In Dry Cleaning and Reporting Requirements) Regulations (SOR/2003-79)
Toxic Substances Management Policy
Toxic Substances Management Policy : Persistence and Bioaccumulation Criteria
Toxic Substances Management Policy : Report on Public Consultations
Tributyltetradecylphosphonium Chloride Regulations (SOR/2000-66)
Vinyl Chloride Release Regulations, 1992 (SOR/92-631)
Virtual Elimination List (SOR/2006-298)

Canadian Food and Drugs Act

Canadian Nuclear Safety and Control Act¹⁰

Department of the Environment Act

Department of the Environment Act (R.S.C. 1985, c. E-10)

Emergencies Act

Emergencies Act (R.S.C. 1985, c. 22 (4th Supp.))

Emergencies Preparedness Act

Eneregy Efficiency Act

Eneregy Efficiency Act (S.C. 1992, c. 36)
Energy Efficiency Regulations (SOR/94-651)

Hazardous Materials Information Review Act

Hazardous Materials Information Review Act (R.S.C 1985, c. 24 (3rd Supp.))
Application for a Claim for Exemption
Hazardous Materials Information Review Act Appeal Board Procedures Regulations (SOR/91-86)
Hazardous Materials Information Review Regulations (SOR/88-456)

Hazardous Products Act

Hazardous Products Act (R.S.C. 1985, c. H-3)
Carbonated Beverage Glass Containers Regulations (SOR/80-831)
Consumer Chemicals and Containers Regulations, 2001 (SOR/2001-269)
Controlled Products Regulations (SOR/88-66)
Hazardous Products (Crocidolite Asbestos) Regulations (SOR/89-440)
Hazardous Products (Glazed Ceramics and Glassware) Regulations (SOR/98-176)
Ingredient Disclosure List (SOR/88-64)
Safety Glass Regulations (C.R.C. 1978, c. 933)
Surface Coating Materials Regulations (SOR/2005-109)

National Round Table on the Environment and the Economy Act

National Round Table on the Environment and the Economy Act (S.C. 1993, c. 31)

Northwest Territories Waters Act

Northwest Territories Waters Act (S.C. 1992, c. 39)
Northwest Territories Waters Regulations (SOR/93-303)

Nuclear Fuel Waste Act

Nuclear Fuel Waste Act (S.C. 2002, c. 23)

Pest Control Products Act

Pest Control Products Act (S.C. 2002, c. 28)
List of Pest Control Product Formulants and Contaminants of Health or Environmental Concern (SI/2005-114)
Pest Control Products Regulations (Repealed) (C.R.C., c. 1253)
Pest Control Products Act (Repealed) (R.S.C. 1985, c. P-9)
Pest Control Products Incident Reporting Regulations (SOR/2006-260)
Pest Control Products Regulations (SOR/2006-124)
Pest Control Products Sales and Information Reporting Regulations (SOR/2006-261)
Regulations Prescribing the Fees to Be Paid for a Pest Control Product Application Examination Service Provided by or on Behalf of Her Majesty in Right of Canada, for a Right or Privilege to Manufacture or Sell a Pest Control Product in Canada and for Establishing a Maximum Residue Limit in Relation to a Pest Control Product (SOR/97-173)

Pilotage Act

Railway Safety Act

Railway Safety Act (R.S.C. 1985, c. 32 (4th Supp.))
Ammonium Nitrate Storage Facilities Regulations (C.R.C., Vol. XII, c. 1145)
Anhydrous Ammonia Bulk Storage Regulations (C.R.C., Vol. XII, c. 1146)
Chlorine Tank Car Unloading Facilities Regulations (C.R.C., Vol. XII, c. 1147)
Flammable Liquids Bulk Storage Regulations (C.R.C., Vol. XII, c. 1148)
Handling of Carloads of Explosives on Railway Trackage Regulations (SOR/79-15)
Heating and Power Boilers Regulations (C.R.C., Vol. XII, c. 1151)
Highway Crossings Protective Devices Regulations (C.R.C., Vol. XIII, c. 1183)
Liquefied Petroleum Gases Bulk Storage Regulations (C.R.C., Vol. XII, c. 1152)
Mining Near Lines of Railways Regulations (SOR/91-104)
Notice of Railway Works Regulations (SOR/91-103)
Railway Prevention of Electric Sparks Regulations (SOR/82-1015)
Railway Safety Appliance Standards Regulations (C.R.C., Vol. XIII, c. 1171)
Railway Safety Management System Regulations (SOR/2001-37)
Railway-Highway Crossing at Grade Regulations (SOR/80-748)
Service Equipment Cars Regulations (SOR/86-922)
Specifications 112 and 114 Tank Cars Regulations (SOR/79-101)
Wire Crossings and Proximities Regulations (C.R.C., Vol. XIII, c. 1195)

Safe Containers Convention Act

Safe Containers Convention Act (R.S.C. 1985, c. S-1)
Safe Containers Convention Regulations (SOR/82-1038)

Territorial Lands Act

Territorial Lands Act (R.S.C. 1985, c. T-7)
Canada Oil and Gas Drilling and Production Regulations (C.R.C., c. 1517)
Territorial Land Use Regulations (C.R.C., c. 1524)

Resources and Technical Surveys Act

Transportation of Dangerous Goods Act

Transportation of Dangerous Goods Act 1992 (S.C. 1992, c. 34)

Toronto Area Rail Transportation of Dangerous Goods Advisory Council Order (SOR/86-332)
Transportation of Dangerous Goods General Policy Advisory Council Order (SOR/90-153)
Transportation of Dangerous Goods Regulations (SOR/2001-286)
Transportation of Dangerous Goods Regulations - Schedules (SOR/2001-286)

Yukon Environmental and Sociio-Economic Assessment Act

Yukon Environmental and Sociio-Economic Assessment Act (S.C. 2003, c. 7)

Provincial/Territorial

Ontario Environmental Protection Act, Environmental Assessment Act, Dangerous Goods Transportation Act, Environmental Bill of Rights
Quebec Environment Quality Act, Ministry of the Environment Act, Transport Act
Nova Scotia Environment Act, Environmental Assessment Regulations
New Brunswick Clean Environment Act, Environmental Impact Assessment Regulation, Transportation of Dangerous Goods Act
Manitoba Sustainable Development Act, Environment Act, Dangerous Goods Transportation and Handling Act
British Columbia Environmental Management Act, Environmental Assessment Act, Transportation of Dangerous Goods Act
Prince Edward Island Environmental Protection Act
Alberta Environmental Protection and Enhancement Act, Environmental Assessment Regulation, Dangerous Goods Transportation and Handling Act
Saskatchewan Environmental Assessment Act, Environmental Management and Protection Act, Dangerous Goods Transportation Act,
Newfoundland and Environmental Protection Act, Environmental Assessment
Labrador Regulations, Dangerous Goods Transportation Act
Northwest Territories Environmental Protection Act, Environmental Rights Act, Transportation of Dangerous Goods Act
Yukon Environment Act, Environmental Assessment Act and Regulations, Dangerous Goods Transportation Act, Yukon Environmental and Socio-Economic Assessment Act, Yukon Act
Nunavut Transportation of Dangerous Goods Act

Laws impacting air

Federal

Aeronautics Act

Alternative Fuels Act

Alternative Fuels Regulations (SOR/96-453)

Weather Modification Information Act

Weather Modification Information Regulations (C.R.C., c. 1604)

Canadian Aviation Regulations

Motor Vehicle Fuel Consumption Standards

Provincial/Territorial

Ontario Environmental Protection Act
- Regulation 419/05 – Air Pollution – Local Air Quality
- Regulation 194/05 – Industry Emissions – Nitrogen Oxides and Sulfur Dioxide
- Regulation 127/01 – Air Contaminant Discharge Monitoring and Reporting
- Regulation 397/01 – Emissions Trading
- Ozone-depleting Substance Regulations
Nova Scotia Air Quality Regulations, Ozone Layer Protection Regulations
New Brunswick Clean Air Act, Air Quality Regulation, Ozone-depleting Substances Regulation
Manitoba Ozone-depleting Substances Act
British Columbia Ozone-depleting Substances and Other Halocarbons Regulation, BC Cleaner Gasoline Regulation, Sulphur Content of Fuel Regulation
Prince Edward Island Transboundary Pollution (Reciprocal Access) Act
Alberta Clean Air Act, Ozone-depleting Substances Regulation
Saskatchewan Clean Air Act and Regulations, Ozone-depleting Substances Control Regulations
Newfoundland and Labrador Air Pollution Control Regulations, Halocarbon Regulations

Laws impacting flora and fauna

Federal

Arctic Wildlife Act

Canada Wildlife Act

Canada Wildlife Act (R.S.C., 1985, c. W-9)
Wildlife Area Regulations (C.R.C., c. 1609)

Fertilizer Act

Health of Animals Act

Migratory Birds Convention Act, 1994

Migratory Birds Convention Act, 1994 (S.C. 1994, c. 22)
Migratory Bird Sanctuary Regulations (C.R.C., c. 1036)
Migratory Birds Regulations (C.R.C., c. 1035)

Migratory Birds Regulations

National Wildlife Week Act

Pest Control Products Act

Pesticide Residue Compensation Act

Plant Protection Act

Species at Risk Act (2002)

Species at Risk Act (S.C. 2002, c. 29)
Order Extending the Time for the Assessment of the Status of Wildlife Species (SOR/2006-115)
Order Extending the Time for the Assessment of the Status of Wildlife Species (REPEALED) (SOR/2003-215)

Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act

Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (S.C. 1992, c. 52)
Wild Animal and Plant Trade Regulations (SOR/96-263)

Provincial/Territorial

OntarioFish and Wildlife Conservation Act, Forestry Act
- Crown Forest Sustainability Act, 1994
- Pesticides Act
- Endangered Species Act
- Wilderness Areas Act
Quebec Wildlife Conservation and Development Act, Natural Heritage Conservation Act, Act Respecting Threatened or Vulnerable Species, Pesticides Act, Tree Protection Act
Nova Scotia Wildlife Habitat and Watercourses Protection Regulations, Endangered Species Act, Forests Act, Forest Sustainability Regulations
New Brunswick Endangered Species Act, Fish and Wildlife Act,
Manitoba Forest Act, Wildlife Act, Fisheries Act, Fishermen’s Assistance and Polluters’ Liability Act, Endangered Species Act
British Columbia Wildlife Act, Fisheries Act, Freshwater Fish Regulation, Farming and Fishing Industries Development Act, Fish Protection Act
Prince Edward Island Wildlife Conservation Act, Fisheries Act
Saskatchewan Forest Resources Management Act, Wildlife Act, Wildlife Habitat Protection Act , Fisheries Act
Northwest Territories Wildlife Act
Yukon Wildlife Act, Migratory Birds Convention Act, Fisheries Act, Forest Protection Act

Laws impacting water and fisheries

Federal

Arctic Waters Pollution Prevention Act

Arctic Waters Pollution Prevention Act (R.S.C. 1985, c. A-12)
Arctic Shipping Pollution Prevention Regulations (C.R.C., c. 353)
Arctic Waters Pollution Prevention Regulations (C.R.C., c. 354)
Governor in Council Authority Delegation Order (C.R.C., c. 355)
Steering Appliances and Equipment Regulations (SOR/83-810)

Canada Marine Act

Canada Marine Act (S.C. 1998, c. 10)
Natural and Man-made Harbour Navigation and Use Regulations (SOR/2005-73)
Port Authorities Operations Regulations (SOR/2000-55)
Seaway Property Regulations (SOR/2003-105)

Canada National Marine Consevation Areas Act

Canada National Marine Consevation Areas Act(S.C. 2002, c. 18)

Canada Water Act

Canada Water Act (R.S.C. 1985, c. C-11)
Guidelines for Canadian Drinking Water Quality
Guidelines for Canadian Drinking Water Quality 1978
Guidelines for Canadian Drinking Water Quality Summary Table (March 2006)
Guidelines for Effluent Quality and Wastewater Treatment at Federal Establishments (EPS 1-EC-76-1)

Coastal Fisheries Protection Act

Coasting Trade Act

Fisheries Act

Chlor-Alkali Mercury Liquid Effluent Regulations (C.R.C. 1978, c. 811)
Compliance and Enforcement Policy for the Habitat Protection and Pollution Prevention Provisions of the Fisheries Act (July 2001)
Fish Health Protection Regulations (C.R.C. 1978, c. 812)
Fish Toxicant Regulations (SOR/88-258)
Fishery (General) Regulations (SOR/93-53)
Management of Contaminated Fisheries Regulations (SOR/90-351)
Meat and Poultry Products Plant Liquid Effluent Regulations (C.R.C., c. 818)
Metal Mining Effluent Regulations (SOR/2002-222)
Petroleum Refinery Liquid Effluent Regulations (C.R.C., c. 828)
Potato Processing Plant Liquid Effluent Regulations (C.R.C., c. 829)
Pulp and Paper Effluent Regulations (SOR/92-269)
Understanding the Pulp and Paper Environmental Effects Monitoring Program (2004)

International Boundary Waters Treaty Act

International Rivers Improvements Act

International River Improvements Act (R.S.C. 1985, c. I-20)
International River Improvements Regulations (C.R.C., c. 982)

Lac Seul Conservation Act

Lake of the Woods Control Board Act

Navigable Waters Protection Act

Navigable Wayters Pprotection Act(R.S.C. 1985, c. N-22)
Navigable Waters Bridges Regulations (CRC, Vol. XIII, c. 1231)
Navigable Waters Works Regulations (C.R.C., Vol. XIII, c. 1232)

Northwest Territories Water Act

Oceans Act

Yukon Waters Act

Provincial/Territorial

OntarioOntario Water Resources Act
- Regulation 387/04 - Water Taking and Transfer
- Water Well Regulation (Regulation 903)
- Nutrient Management Act, 2002
- Safe Drinking Water Act, 2002
- Clean Water Act, 2006
- Lakes and Rivers Improvement Act
- Sustainable Water and Sewage Systems Act
- Pesticides Act
Quebec Watercourses Act, Water Resources Preservation Act
Nova Scotia Water Resources Protection Act, Wildlife Habitat and Watercourses Protection Regulations,
New Brunswick Clean Water Act, Water Quality Regulations, Watercourse Alteration Regulations
Manitoba Conservation Agreements Act, Ground Water and Water Well Act, Water Protection Act, Water Resources Conservation and Protection Act
British Columbia Water Act, Water Protection Act, Groundwater Protection Regulation
Prince Edward Island Water and Sewage Act
Alberta Water Act, Surface Water Quality Guidelines
Saskatchewan Water Regulations, Groundwater Conservation Act
Newfoundland and Labrador Water Resources Act
Northwest Territories Northwest Territories Waters Act, Water Resources Agreements Act
Yukon Water Act
Nunavut Nunavut Waters and Nunavut Surface Rights Tribunal Act

Laws impacting land and non-renewable resources

Federal

Agricultural and Rural Development Act

Canada Agricultural Products Act

Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

Canada-Newfoundland-Atlantic Accord Implementation Act

Canada Oil and Gas Operations Act

Canada Petroleum Resources Act

Energy Supplies Emergency Act

Fertilizer Act

First Nations Land Management Act

Indian Oil and Gas Act

James Bay and Northern Québec Native Claims Settlement Act

Mackenzie Valley Resource Management Act

Manganese-Based Fuel Additives Act

Manganese-Based Fuel Additives Act (S.C. 1997, c. 11)

Motor Vehicle Fuel Consumptions Standards (Not in Force)

National Energy Board Act

Northern Pipeline Act

Territorial Lands Act

Provincial/Territorial

OntarioEnvironmental Protection Act
- Regulations 101-104
- Regulation 153 – Record of Site Condition (Brownfields)
- Deep Well Disposal Regulation (Regulation 341)
- Regulation 347 – Waste Management – General
- Waste Management – PCBs Regulation (Regulation 362)
- Waste Diversion Act, 2002
- Waste Management Act
- Planning Act
- Greenbelt Act, 2005
- Nutrient Management Act
- Oak Ridges Moraine Conservation Act, 2001
- Places to Grow Act, 2005
- Aggregate Resources Act
- Mining Act
- Oil, Gas and Salt Resources Act
Quebec Mining Act
Nova Scotia Asbestos Waste Management Regulations, PCB Management Regulations, Wilderness Areas Protection Act, Petroleum Management Regulations, Energy Resources Conservation Act
New Brunswick Topsoil Preservation Act, Petroleum Product Storage and Handling Regulation, Regional Solid Waste Commissions Regulation, Energy Conservation Act, Mining Act, Oil and Natural Gas Act
Manitoba Natural Resources Act, Waste Reduction and Prevention Act, Habitat Heritage Act, Natural Resources Transfer Act
British Columbia Environment and Land Use Act, Contaminated Sites Regulation, Special Waste Regulation, Waste Discharge Regulation, Hazardous Waste Regulation, Forest Act, Forest and Range Practices Act
Prince Edward Island Oil and Natural Gas Act
Alberta Release Reporting Regulation, Release Regulation, Waste Control Regulation, Conservation and Reclamation Regulation, Coal Conservation Act, Energy Resources Conservation Act, Oil and Gas Conservation Act, Oil Sands Conservation Act, Pipeline Act
Saskatchewan Environmental Spill Control Regulations, Hazardous Substances & Waste Dangerous Goods Regulations, Mineral Industry Environmental Protection Regulations, Conservation and Development Act, Oil and Gas Conservation Act
Newfoundland and Labrador Well Drilling Regulations, Waste Management Regulations, Waste Reduction and Recovery Act
Northwest Territories Forest Protection Act, Waste Reduction and Recovery Act
Yukon Oil and Gas Act, Yukon Surface Rights Board Act

Laws impacting trade

Canada-Chile Free Trade Agreement Implementation Act

North American Free Trade Agreement Implementation Act

Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act

[1] For more information on the 2001 Framework for Conducting Environmental Assessment of Trade Negotiations see .

[2] For more information on the 2004 Cabinet Directive on Environmental Assessment of Policy, Plan and Program Proposals see .

[3] For more information on the Handbook for Conducting Environmental Assessments of Trade Negotiations see (PDF *, 516KB)

[4] All reports are available on the DFAIT web site at .

[5] The Environmental Assessment Advisory Group (EAAG) is made-up of individuals drawn from industry, academia and NGOs, who are selected based on their overall expertise and sound understanding of trade, investment and environmental issues. Members participate as individuals and not as representatives of specific organizations.

[6] The World Bank, Country Brief, Middle East and North AfricaRegion (MENA) – Jordan.

[7] Action research is a reflective process of progressive problem solving led by individuals working with others in teams or as part of a "community of practice" to improve the way they address issues and solve problems. Action research can also be undertaken by larger organizations or institutions, assisted or guided by professional researchers, with the aim of improving their strategies, practices, and knowledge of the environments within which they practice.

[8] Regional exchange refers not to one activity such as a stand alone conference, but to the ongoing exchanges between eminent practitioners within the region. This is the underlying methodology of the project.

[9]Electronic copies of the actual legislation can be obtained online at (federal) and (provincial/territorial).

[10] This has replaced the Atomic Energy Control Act

* If you require a plug-in or a third-party software to view this file, please visit the .