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Text of the Canada–Panama Free trade agreement – Annex I: Reservations for existing measures – Schedule of Canada

Sector: 

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: 

National Treatment (Article 9.04)

Performance Requirements (Article 9.07)

Senior Management and Boards of Directors (Article 9.08)

Measures:

Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.)

Investment Canada Regulations, SOR/85-611, as qualified by paragraphs 8 through 12 of the Description element

Description: Investment

  1. Under the Investment Canada Act, the following acquisitions of Canadian businesses by a non-Canadian are subject to review by the Director of Investments:
    1. a direct acquisition of a Canadian business with assets of C$5 million or more;
    2. indirect acquisition of a Canadian business with assets of C$50 million or more; and
    3. indirect acquisition of a Canadian business with assets between C$5 million and C$50 million that represent more than 50% of the value of the assets of all the entities the control of which is being acquired, directly or indirectly, in the transaction in question.
  2. For the purposes of this reservation:
    1. non-Canadian is an individual, government or agency thereof or an entity that is not Canadian; and
    2. Canadian means a Canadian citizen or permanent resident, government in Canada or agency thereof, or a Canadian-controlled entity as described in the Investment Canada Act.
  3. In addition, the specific acquisition or establishment of a new business in designated types of business activities relating to Canada’s cultural heritage or national identity may be subject to review if the Governor-in-Council authorizes a review in the public interest.
  4. An investment subject to review under the Investment Canada Act may not be implemented unless the Minister responsible for theInvestment Canada Actadvises the applicant that the investment is likely to be of net benefit to Canada. This determination is made in accordance with 6 factors described in the Act, summarized as follows:

    • the effect of the investment on the level and nature of economic activity in Canada, including the effect on employment, on the use of parts, components and services produced in Canada and on exports from Canada;
    • the degree and significance of participation by Canadians in the investment;
    • the effect of the investment on productivity, industrial efficiency, technological development and product innovation in Canada;
    • the effect of the investment on competition within an industry in Canada;
    • the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and
    • the contribution of the investment to Canada’s ability to compete in world markets.
  5. In making a net benefit determination, the Minister, through the Director of Investments, may review plans under which the applicant demonstrates the net benefit to Canada of the proposed acquisition. An applicant may also submit undertakings to the Minister in connection with a proposed acquisition that is the subject of review. In the event that an applicant fails to comply with an undertaking, the Minister may seek a court order directing compliance or another remedy authorized under the Investment Canada Act.
  6. A non-Canadian who establishes or acquires a Canadian business, other than those that are subject to review as described above must notify the Director of Investments.
  7. The Director of Investments will review an “acquisition of control”, as defined in the Investment Canada Act, of a Canadian business by an investor of Panama if the value of the gross assets of the Canadian business is not less than the applicable threshold.
  8. The higher review threshold, calculated as set out in paragraph 13, does not apply to an acquisition in the cultural businesses sector.
  9. Notwithstanding the definition of “investor of a Party” in Article 9.01, an investor may benefit from the higher review threshold only if that investor is:
    1. a national of Panama; or
    2. an entity controlled, as provided for in the Investment Canada Act, by a national of Panama.
  10. An indirect “acquisition of control” by an investor of Panama of a Canadian business in a sector other than those sectors identified in paragraph 8 is not reviewable.
  11. In connection with reviewing an acquisition of an investment under the Investment Canada Act, Canada may impose requirements or enforce a commitment or undertaking in connection with the establishment, acquisition, expansion, conduct or operation of an investment of an investor of Panama or of a non-Party for the transfer of technology, production process or other proprietary knowledge to a national or enterprise, affiliated to the transferor, in Canada.
  12. Except for requirements, commitments or undertakings relating to technology transfer as set out in paragraph 11 of this reservation, Article 9.07 applies to requirements, commitments or undertakings imposed or enforced under the Investment Canada Act. Article 9.07 shall not be construed to apply to a 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 construct or expand particular facilities, in Canada.
  13. For direct acquisition of control by an investor of Panama or for an investor of a non-Party where the Canadian business is controlled by an investor of Panama, the applicable threshold for review is C$299 million for 2010 and in January of each subsequent year the amount will be determined by the Minister using the following formula:

    Annual Adjustment = Current Nominal GDP at Market Prices Previous Year Nominal GDP at Market Prices amount determined for previous year

    Current Nominal GDP at Market Prices means the average of the Nominal Gross Domestic Products at Market Prices for the most recent 4 consecutive quarters.

    Previous Year Nominal GDP at Market Prices means the average of the Nominal Gross Domestic Products for the 4 consecutive quarters for the comparable period in the year preceding the year used in calculating the Current Nominal GDP at Market Prices.

    For the above-mentioned purposes, the amounts will be rounded to the nearest million CAD.


Sector: 

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: 

National Treatment (Article 9.04)

Senior Management and Boards of Directors (Article 9.08)

Measures: 

As set out in the Description element.

Description: Investment

  1. Canada or a province or territory, when selling or disposing of its equity interests in, or the assets of, an existing government enterprise or an existing governmental entity, may prohibit or impose limitations on the ownership of such interests or assets and on the ability of owners of such interests or assets to control a resulting enterprise by investors of Panama or of a non-Party or their investments. With respect to such a sale or other disposition, Canada or a province or territory may adopt or maintain a measure relating to the nationality of senior management or members of the board of directors.
  2. For the purposes of this reservation:
    1. a measure maintained or adopted after the date of entry into force of this Agreement that, at the time of sale or other disposition, prohibits or imposes a limitation on the ownership of equity interests or assets or imposes a nationality requirement described in this reservation is an existing measure; and
    2. government enterprise means an enterprise owned or controlled through ownership interests by Canada or a province or territory, 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.

Sector: 

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: 

National Treatment (Article 9.04)

Measures:

Canada Business Corporations Act, R.S.C. 1985, c. C-44

Canada Business Corporations Regulations, SOR/2001-512

Canada Corporations Act, R.S.C. 1970, c. C-32

Description: Investment

  1. Canada may place constraints on the issue, transfer and ownership of shares in a federally incorporated corporation. The object of those constraints is to permit a corporation to meet Canadian ownership requirements, under certain laws set out in the Canada Business Corporations Regulations, in sectors where ownership is required as a condition to operate or to receive licences, permits, grants, payments or other benefits. In order to maintain certain Canadian ownership levels, a corporation is permitted to sell shareholders’ shares without the consent of those shareholders, and to purchase its own shares on the open market.
  2. For the purposes of this reservation Canadian means “Canadian” as defined in the Canada Business Corporations Regulations.

Sector: 

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: 

Senior Management and Boards of Directors (Article 9.08)

Measures: 

Canada Business Corporations Act, R.S.C. 1985, c.C-44

Canada Business Corporations RegulationsSOR/2001-512

Canada Corporations Act, R.S.C. 1970, c. C-32

Special Acts of Parliament incorporating specific companies

Description: Investment

  1. The Canada Business Corporations Act requires, for most federally incorporated corporations, that 25% of directors be resident Canadians. A simple majority of resident Canadian directors is required for corporations in the following sectors: uranium mining; book publishing or distribution; book sales, where the sale of books is the primary part of the corporation’s business, and film or video distribution. Similarly, corporations that, by an Act of Parliament or Regulation, are individually subject to minimum Canadian ownership requirements are required to have a majority of resident Canadian directors.
  2. For the purposes of the Act, resident Canadian means a natural person who is a Canadian citizen ordinarily resident in Canada, a citizen who is a member of a class set out in the Canada Business Corporations Regulations, or a permanent resident as defined in theImmigration and Refugee Protection Act other than one who has been ordinarily resident in Canada for more than one year after becoming eligible to apply for Canadian citizenship.
  3. In the case of a holding corporation, not more than one-third of the directors need be resident Canadians if the earnings in Canada of the holding corporation and its subsidiaries are less than 5% of the gross earnings of the holding corporation and its subsidiaries.
  4. Under Part IV of the Canada Corporations Act, a simple majority of the elected directors of a Special Act corporation is required to be resident in Canada and citizens of a Commonwealth country. This requirement applies to every joint stock company incorporated subsequent to June22,1869, by any Special Act of Parliament.

Sector: 

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: 

National Treatment (Article 9.04)

Measures: 

Citizenship Act, R.S.C. 1985, c. C-29

Foreign Ownership of Land Regulations, SOR/79-416

Description: Investment

  1. The Foreign Ownership of Land Regulations are made pursuant to the Citizenship Act and the Agricultural and Recreational Land Ownership Act, RSA 1980, c. A-9. In Alberta, an ineligible person or foreign-owned or -controlled corporation may only hold an interest in controlled land consisting of a maximum of 2 parcels containing, in the aggregate, a maximum of 20 acres.
  2. For the purposes of this reservation:

    ineligible person means:

    1. a natural person who is not a Canadian citizen or permanent resident;
    2. a foreign government or agency thereof; or
    3. a corporation incorporated in a country other than Canada;

    controlled land means land in Alberta but does not include:

    • land of the Crown in right of Alberta;
    • land within a city, town, new town, village or summer village; and
    • mines or minerals.

Sector: 

All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: 

National Treatment (Article 9.04)

Measures:

Air Canada Public Participation Act, R.S.C. 1985, c. 35 (4th Supp.)

Canadian Arsenals Limited Divestiture Authorization Act, S.C. 1986, c. 20

Eldorado Nuclear Limited Reorganization and Divestiture Act, S.C. 1988, c. 41

Nordion and Theratronics Divestiture Authorization Act, S.C. 1990, c. 4

Description: Investment

  1. A “non-resident” or “non-residents” may not own more than a specified percentage of the voting shares of the corporation to which each Act applies. For some companies the restrictions apply to individual shareholders, while for others the restrictions may apply in the aggregate. Where there are limits on the percentage that an individual Canadian investor can own, these limits also apply to non-residents. The restrictions are as follows:
    • Air Canada: 25% in the aggregate;
    • Cameco Limited (formerly Eldorado Nuclear Limited): 15% per non-resident natural person, 25% in the aggregate;
    • Nordion International Inc.: 25% in the aggregate;
    • Theratronics International Limited: 49% in the aggregate; and
    • Canadian Arsenals Limited: 25% in the aggregate.
  2. For the purposes of this reservation, “non-resident” includes:
    • a natural person who is not a Canadian citizen and not ordinarily resident in Canada;
    • a corporation incorporated, formed or otherwise organized outside Canada;
    • the government of a foreign State or a political subdivision thereof, or a person empowered to perform a function or duty on behalf of such a government;
    • a corporation that is controlled directly or indirectly by an entity referred to in subparagraphs (a) through (c);
    • a trust:
      • established by an entity referred to in subparagraphs (b) through (d), other than a trust for the administration of a pension fund for the benefit of natural persons the majority of whom are resident in Canada, or
      • in which an entity referred to in subparagraphs (a) through (d) has more than 50% of the beneficial interest; and
    • a corporation that is controlled directly or indirectly by a trust referred to in subparagraph (e).

Sector:

 All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation:

Local Presence (Article 10.06)

Measure: 

Export and Import Permits Act, R.S.C. 1985, c.E-19

Description: Cross-Border Trade in Services

Only a natural person ordinarily resident in Canada, an enterprise with its head office in Canada or a branch office in Canada of a foreign enterprise may apply for and be issued an import or export permit or transit authorization certificate for a good or related service subject to controls under the Export and Import Permits Act.


Sector: 

Business Service Industries

Sub-Sector: 

Customs Brokers

Industry Classification: 

SIC 7794 Customs Brokers

CPC 749 Other supporting and auxiliary transport services

Type of Reservation: 

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Senior Management and Boards of Directors (Article 9.08)

Measures: 

Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

Customs Brokers Licensing Regulations, SOR/86-1067

Description: Cross-Border Trade in Services and Investment

To be a licensed customs broker in Canada:

  1. a natural person must be a Canadian national;
  2. a corporation must be incorporated in Canada with a majority of its directors being Canadian nationals; and
  3. a partnership must be composed of persons who are Canadian nationals, or corporations incorporated in Canada with a majority of their directors being Canadian nationals.

Sector: 

Business Service Industries

Sub-Sector: 

Duty Free Shops

Industry Classification: 

SIC 6599 Other Retail Stores, Not Elsewhere Classified (limited to duty free shops)

CPC 631, 632 (limited to duty-free shops)

Type of Reservation: 

National Treatment (Article 9.04)

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Measures: 

Customs Act, R.S.C. 1985, c. 1 (2nd Supp.)

Duty Free Shop Regulations, SOR/86-1072

Description: Cross-Border Trade in Services and Investment

  1. To be a licensed duty free shop operator at a land border crossing in Canada, a natural person must:
    1. be a Canadian national;
    2. be of good character;
    3. be principally resident in Canada; and
    4. 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 land border crossing in Canada, a corporation must:
    1. be incorporated in Canada; and
    2. have all of its shares beneficially owned by Canadian nationals who meet the requirements of paragraph 1.

Sector: 

Business Service Industries

Sub-Sector:

 Examination Services relating to the Export and Import of Cultural Property

Industry Classification:

SIC 999 Other Services, Not Elsewhere Classified (limited to cultural property examination services)

CPC 96321 Museum services except for historical sites and buildings (limited to cultural property examination services)

CPC 87909 Other business services n.e.c. (limited to cultural property examination services)

Type of Reservation:

 Local Presence (Article 10.06)

Measure: 

Cultural Property Export and Import Act, R.S.C.1985, c.C-51

Description: Cross-Border Trade in Services

  1. Only a resident of Canada or an institution in Canada may be designated as an expert examiner of cultural property for the purposes of the Cultural Property Export and Import Act.

  2. For the purposes of this reservation:

    institution means an entity that is publicly owned and operated solely for the benefit of the public, that is established for educational or cultural purposes and that conserves objects and exhibits them;

    resident of Canada means a natural person who is ordinarily resident in Canada, or a corporation that has its head office in Canada or maintains an establishment in Canada to which employees employed in connection with the business of the corporation ordinarily report for work.


Sector: 

Business Service Industries

Sub-Sector: 

Patent Agents

Industry Classification: 

SIC 999 Other Services, Not Elsewhere Classified (limited to patent agency)

CPC 86120 Legal advisory and representation services in statutory procedures of quasi-judicial tribunals, boards, etc. (limited to patent agency)

Type of Reservation: 

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Measures: 

Patent Act, R.S.C. 1985, c. P-4

Patent Rules, SOR/96-423

Description: Cross-Border Trade in Services

  1. To represent a person in the presentation and prosecution of a patent application or in other business before the Patent Office, a patent agent must be resident in Canada and registered by the Patent Office.
  2. A registered patent agent who is not resident in Canada must appoint a registered patent agent who is resident in Canada as an associate to prosecute an application for a patent.

Sector: 

Business Service Industries

Sub-Sector: 

Trade-mark Agents

Industry Classification: 

SIC 999 Other Services, Not Elsewhere Classified (limited to trade-mark agency)

CPC 86120 Legal advisory and representation services in statutory procedures of quasi-judicial tribunals, boards, etc. (limited to copyright/trade-mark agency)

Type of Reservation: 

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Measures: 

Trade-marks Act, R.S.C. 1985, c. T-13

Trade-marks Regulations, SOR/96-195

Description: Cross-Border Trade in Services

  1. To represent a person in the presentation and prosecution of an application for a trade-mark or in other business before the Trade-mark Office, a trade-mark agent must be resident in Canada and registered by the Trade-mark Office.
  2. A registered trade-mark agent who is not resident in Canada must appoint a registered trade-mark agent who is resident in Canada as an associate to prosecute an application for a trade-mark.

Sector: 

Energy

Sub-Sector: 

Oil and Gas

Industry Classification: 

SIC 071 Crude Petroleum and Natural Gas Industries

CPC 883 Services incidental to mining

Type of Reservation: 

National Treatment (Article 9.04)

Measures: 

Canada Petroleum Resources Act, R.S.C. 1985, c. 36 (2ndSupp.)

Territorial Lands Act, R.S.C. 1985, c. T-7

Federal Real Property and Federal Immovables Act, S.C.1991, c. 50

Canada-Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28

Description: Investment

  1. This reservation applies to production licences issued for “frontier lands” and “offshore areas” (areas not under provincial jurisdiction) as defined in the applicable measures.
  2. A person who holds an oil and gas production licence or shares therein must be a corporation incorporated in Canada.

Sector: 

Energy

Sub-Sector:

 Oil and Gas

Industry Classification: 

SIC 071 Crude Petroleum and Natural Gas Industries

CPC 883 Services incidental to mining

Type of Reservation: 

Performance Requirements (Article 9.07)

Local Presence (Article 10.06)

Measures: 

Canada Oil and Gas Production and Conservation Act, R.S.C. 1985, c. O-7, as amended by the Canada Oil and Gas Operations Act, S.C. 1992, c. 35

Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation Act, S.C. 1988, c. 28

Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Measures implementing the Canada-Yukon Oil and Gas Accord

Measures implementing the Northwest Territories Oil and Gas Accord

Description: Cross-Border Trade in Services and Investment

  1. Under the Canada Oil and Gas Operations Act, a “benefits plan” must be approved by the Minister in order to be authorized to proceed with an oil and gas development project.
  2. A “benefits plan” is a plan for the employment of Canadians and for providing Canadian manufacturers, consultants, contractors and service companies with a full and fair opportunity to participate on a competitive basis in the supply of goods and services used in proposed work or activity referred to in the benefits plan.
  3. The benefits plan contemplated by the Canada Oil and Gas Operations Act permits the Minister to impose on the applicant an additional requirement 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 proposed work referred to in the benefits plan.
  4. The Canada - Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada - Newfoundland Atlantic Accord Implementation Acthave the same requirement for a benefits plan but also require that the benefits plan ensures that:
    1. the corporation or other body submitting the plan establishes in the applicable province an office where appropriate levels of decision-making are to take place, prior to carrying out work or an activity in the offshore area;
    2. expenditures be made for research and development to be carried out in the province, and for education and training to be provided in the province; and
    3. first consideration be given to goods produced or services provided from within the province, where those goods or services are competitive in terms of fair market price, quality and delivery.
  5. 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 proposed work or activity referred to in the plan.
  6. In addition, Canada may impose a requirement or enforce a commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a person of Canada in connection with the approval of development projects under the applicable Acts.
  7. Provisions similar to those set out above are included in laws which implement the Canada-Yukon Oil and Gas Accord.
  8. Provisions similar to those set out above will be included in laws or regulations to implement the Northwest Territories Oil and Gas Accord. For the purposes of this reservation this accord shall be deemed, once concluded, to be an existing measure.

Sector: 

Energy

Sub-Sector:

 Oil and Gas

Industry Classification: 

SIC 071 Crude Petroleum and Natural Gas Industries

CPC 883 Services incidental to mining

Type of Reservation: 

Performance Requirements (Article 9.07)

Measures: 

Canada - Newfoundland Atlantic Accord Implementation Act, S.C. 1987, c. 3

Hibernia Development Project Act, S.C. 1990, c. 41

Description: Investment

  1. Under the Hibernia Development Project Act, Canada and the Hibernia Project Owners may enter into agreements. Those agreements may require the Project Owners to undertake to perform certain work in Canada and Newfoundland and to use their best efforts to achieve specific Canadian and Newfoundland target levels in relation to the provisions of a “benefits plan” required under theCanada - Newfoundland Atlantic Accord Implementation Act. “Benefits plans” are further described in the Schedule of Canada, Annex I at pages I-C-26-28.
  2. In addition, Canada may impose in connection with the Hibernia project a requirement or enforce a commitment or undertaking for the transfer of technology, a production process or other proprietary knowledge to a national or enterprise in Canada.

Sector: 

Energy

Sub-Sector:

Uranium

Industry Classification: 

SIC 0616 Uranium Mines

CPC 883 Services incidental to mining

Type of Reservation:

National Treatment (Article 9.04)

Most-Favoured-Nation Treatment (Article 9.05)

Measures: 

Investment Canada Act, R.S.C. 1985, c. 28 (1stSupp.)

Investment Canada Regulations, SOR/85-611

Non-Resident Ownership Policy in the Uranium Mining Sector, 1987

Description: Investment

  1. Ownership by “non-Canadians”, as defined in the Investment Canada Act, 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.
  2. Exemptions from the policy are permitted, subject to approval of the Governor-in-Council, only in cases where Canadian participants in the ownership of the property are not available. Investments in properties by non-Canadians, made prior to December 23, 1987 and that are beyond the permitted ownership level, may remain in place. No increase in non-Canadian ownership is permitted.

Sector: 

Professional, Technical and Specialized Services

Sub-Sector: 

Professional Services

Industry Classification: 

CPC 862 Auditing Services

Type of Reservation: 

National Treatment (Article 10.03)

Most-Favoured-Nation Treatment (Article 10.04)

Local Presence (Article 10.06)

Measures: 

Bank Act,S.C. 1991, c. 46

Insurance Companies Act,S.C. 1991, c. 47

Cooperative Credit Associations Act, S.C. 1991, c. 48

Trust and Loan Companies Act, S.C. 1991, c. 45

Description: Cross-Border Trade in Services

  1. Banks are required to have a firm of accountants to be auditors of the bank. A firm of accountants must be qualified as set out in the Bank Act. Among the qualifications required is that two or more members of the firm must be ordinarily resident in Canada and that the member of the firm jointly designated by the firm and the bank to conduct the audit must be ordinarily resident in Canada.
  2. An insurance company, a cooperative credit association, and a trust or loan company require an auditor who can either be a natural person or a firm of accountants. An auditor of such an institution must be qualified as set out in the Insurance Companies Act, theCooperative Credit Associations Act or the Trust and Loan Companies Act, as the case may be. In the case where a natural person is appointed to be the auditor of such a financial institution, among the qualifications required is that the person must be ordinarily resident in Canada. In the case where a firm of accountants is appointed to be the auditor of such a financial institution, the member of the firm jointly designated by the firm and the financial institution to conduct the audit must be ordinarily resident in Canada.

Sector: 

Transportation

Sub-Sector:

Air Transportation

Industry Classification: 

SIC 451 Air Transport Industries

CPC 731 Passenger transportation by air

CPC 732 Freight transportation by air

Specialty air services, as set out in the Description section below

Type of Reservation: 

National Treatment (Article 9.04)

Measures: 

Canada Transportation Act, S.C. 1996, c. 10

Aeronautics Act, R.S.C. 1985, c. A-2

Canadian Aviation Regulations, SOR/96-433:

Description: Investment

  1. Only a Canadian operator of commercial air services may operate Canadian-registered aircraft. These regulations require an operator to be Canadian in order to obtain a Canadian Air Operator Certificate and to qualify to register aircraft as Canadian.
  2. Only a Canadian may provide the following commercial air transportation services:
    1. “domestic services” (air services between points, or from and to the same point, in the territory of Canada, or between a point in the territory of Canada and a point not in the territory of another country);
    2. “scheduled international services” (scheduled air services between a point in the territory of Canada and a point in the territory of another country) where those services have been reserved to Canadian carriers under existing or future air services agreements;
    3. “non-scheduled international services” (non-scheduled air services between a point in the territory of Canada and a point in the territory of another country) where those services have been reserved to Canadian carriers under the Canada Transportation Act;
    4. “specialty air services” (include aerial mapping, aerial surveying, aerial photography, forest fire management, fire-fighting, aerial advertising, glider towing, parachute jumping, aerial construction, heli-logging, aerial inspection, aerial surveillance, flight training, aerial sightseeing and aerial crop spraying).
  3. A foreign natural person may not own a Canadian-registered aircraft for private use.
  4. A corporation incorporated in Canada but that does not meet the Canadian ownership and control requirements may only register an aircraft for private use when the corporation is the sole owner of the aircraft. The Canadian Aviation Regulations also have the effect of limiting non-Canadian corporations operating foreign-registered private aircraft within Canada to the carriage of their own employees.
  5. For the purposes of this reservation, “Canadian” has the meaning set out in Section 55 of the Canada Transportation Act and incorporated by reference in regulations made under the Aeronautics Act:

    “Canadian’ means a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act, a government in Canada or an agent of such a government or a corporation or other entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least seventy-five per cent, or such lesser percentage as the Governor in Council may by regulation specify, of the voting interests are owned and controlled by Canadians”

Sector: 

Transportation

Sub-Sector: 

Air Transportation

Industry Classification: 

SIC 4523 Aircraft Servicing Industry

SIC 3211 Aircraft and Aircraft Parts Industry

Not CPC defined: Aircraft repair and maintenance services, as defined in the Cross-Border Trade in Services Chapter

Type of Reservation: 

Local Presence (Article 10.06)

Measures: 

Aeronautics Act, R.S.C. 1985, c. A-2

Canadian Aviation Regulations, SOR/96-433:

Description: Cross-Border Trade in Services

Aircraft and other aeronautical product repair, overhaul or maintenance activities required to maintain the airworthiness of Canadian-registered aircraft and other aeronautical products must be performed by Canadian-certified persons (namely approved maintenance organizations and aircraft maintenance engineers). Certifications are not provided for persons located outside Canada, except sub-organizations of approved maintenance organizations that are located in 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

CPC 7121 Other scheduled passenger transportation by land other than by railway

CPC 7122 Other non-scheduled passenger transportation by land other than by railway

CPC 7123 Freight transportation by land other than by railway

Type of Reservation: 

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Measures: 

Motor Vehicle Transport Act, R.S.C. 1985, c. 28 (3rdSupp.), as amended by S.C. 2001, c. 13

Canada Transportation Act, S.C. 1996, c. 10

Customs Tariff, 1997, c. 36

Description: Cross-Border Trade in Services

Only a person of Canada using Canadian-registered and Canadian built or duty-paid trucks or buses may provide truck or bus services between points in the territory 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

CPC 721 Transport services by sea-going vessels

CPC 722 Transport services by non-sea-going vessels

CPC 74540 Vessel salvage and refloating services

CPC 74590 Other supporting services for water transport

Type of Reservation: 

National Treatment (Article 9.04)

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Measure: 

Canada Shipping Act2001, S.C. 2001, c. 26

Description: Cross-Border Trade in Services and Investment

  1. To register a ship in Canada, the owner of that ship or the person who has exclusive possession of that ship must be:
    1. a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act;
    2. a corporation incorporated under the domestic law of Canada or a province or territory; or
    3. when the ship is not already registered in another country, a corporation incorporated under the domestic law of a country other than Canada if one of the following is acting with respect to all matters relating to the ship:
      1. a subsidiary of the corporation that is incorporated under the domestic law of Canada or a province or territory,
      2. an employee or director in Canada of a branch office of the corporation that is carrying on business in Canada, or
      3. a ship management company incorporated under the laws of Canada or a province or territory.
  2. A ship registered in a foreign country that has been bareboat chartered may be listed in Canada for the duration of the charter while the ship’s registration is suspended in its country of registry, if the charterer is:
    1. a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act; or
    2. a corporation incorporated under the domestic law of Canada or a province or territory.

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

CPC 721 Transport services by sea-going vessels

CPC 722 Transport services by non-sea-going vessels

CPC 74520 Pilotage and berthing services

CPC 74540 Vessel salvage and refloating services

CPC 74590 Other supporting services for water transport

Type of Reservation: 

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Measures: 

Canada Shipping Act2001, S.C. 2001, c. 26

Marine Certification Regulations, SOR 97-391

Description: Cross-Border Trade in Services

A master, mate, engineer or certain other seafarers must hold a certificate granted by the Minister of Transport as a requirement of service on Canadian-registered ships. Such a certificate may be granted only to a Canadian national.


Sector: 

Transportation

Sub-Sector: 

Water Transportation

Industry Classification: 

SIC 4554 Piloting Service, Water Transport Industry

CPC 74520 Pilotage and berthing services

Type of Reservation:

National Treatment (Article 10.03)

Local Presence (Article 10.06)

Measures: 

Pilotage Act, R.S.C. 1985, c. P-14

General Pilotage Regulations, SOR/2000-132

Atlantic Pilotage Authority Regulations, C.R.C. 1978, c.1264

Laurentian Pilotage Authority Regulations, C.R.C. 1978, c.1268

Great Lakes Pilotage Regulations, C.R.C. 1978, c. 1266

Pacific Pilotage Regulations, C.R.C. 1978, c. 1270

Description: Cross-Border Trade in Services

Subject to the Schedule of Canada, Annex II, at pagesII-C-17-18a licence or a pilotage certificate issued by the relevant regional Pilotage Authority is required to provide pilotage services in the compulsory pilotage waters of the territory of Canada. Only a Canadian national may obtain such a licenceor pilotage certificate. A permanent resident of Canada who has been issued a pilot’s licence or pilotage certificate must become a Canadian citizen within5 years of receipt of such licence or pilotage certificate in order to retain it.


Sector: 

Transportation

Sub-Sector: 

Water Transportation

Industry Classification: 

SIC 454 Water Transport Industry

CPC 721 Transportation services by sea-going vessels

CPC 722 Transportation services by non-sea-going vessels

Type of Reservation:

Local Presence (Article 10.06)

Measure: 

Shipping Conferences Exemption Act1987, R.S.C. 1985, c.17 (3rd Supp.)

Description: Cross-Border Trade in Services

Members of a shipping conference must maintain jointly an office in the region of Canada where they operate. A shipping conference is an association of ocean carriers that has the purpose or effect of regulating rates and conditions for the transportation by those carriers of goods by water.


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

CPC 721 Transportation services by sea-going vessels

CPC 722 Transportation services by non-sea-going vessels

Type of Reservation: 

Most-Favoured-Nation Treatment (Article 10.04)

Measure: 

Coasting Trade Act, S.C. 1992, c. 31

Description: Cross-Border Trade in Services

The prohibitions under the Coasting Trade Act set out in Schedule of Canada, Annex II, at pages II-C-14-16, do not apply to a 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.

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