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Canada–Costa Rica Free Trade Agreement Implementation Act (S.C. 2001, c. 28)

Assented to 2001-12-18

Canada–Costa Rica Free Trade Agreement Implementation Act

S.C. 2001, c. 28

Assented to 2001-12-18

An Act to implement the Free Trade Agreement between the Government of Canada and the Government of the Republic of Costa Rica

SUMMARY

This enactment implements the Free Trade Agreement between Canada and Costa Rica (the Agreement), signed by the Minister for International Trade at Ottawa on April 23, 2001.

The general provisions of the enactment specify that no recourse may be taken on the basis of the provisions of Part 1 of the enactment or any order made under that Part, or the provisions of the Agreement itself, without the consent of the Attorney General of Canada.

Part 1 of the enactment approves the Agreement and provides for the designation or appointment of Ministers or other persons to carry out various functions of the Agreement, the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the Agreement and the power of the Governor in Council to make regulations for carrying out the provisions of the enactment.

Part 2 of the enactment amends existing laws in order to bring them into conformity with Canada’s obligations under the Agreement.

Part 3 of the enactment states that the Governor in Council may not issue an order bringing into force any of the provisions of the enactment until the Governor in Council is satisfied that Costa Rica has taken satisfactory steps to implement the Agreement.

Preamble

WHEREAS the Government of Canada and the Government of the Republic of Costa Rica have entered into a Free Trade Agreement having resolved to

strengthen the special bonds of friendship and cooperation among their peoples,

contribute to the harmonious development and expansion of world and regional trade and provide a catalyst to broader international cooperation,

create new employment opportunities and improve working conditions and living standards in their respective territories,

recognize the differences in the level of development and the size of their respective economies and create opportunities for economic development,

create an expanded and secure market for the goods and services produced in their territories,

reduce distortions to trade,

establish clear and mutually advantageous rules governing their trade,

ensure a predictable commercial framework for business planning and investment,

recognize the importance of trade facilitation in promoting efficient and transparent procedures to reduce costs and to ensure predictability for their importers and exporters,

build on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization and other multilateral and bilateral instruments of cooperation,

promote regional integration with an instrument that will contribute to the establishment of the Free Trade Area of the Americas (FTAA),

enhance the competitiveness of their firms in global markets,

ensure that the benefits of trade liberalization are not undermined by anticompetitive activities,

promote sustainable development,

undertake each of the preceding in a manner consistent with environmental protection and conservation,

preserve their flexibility to safeguard the public welfare,

recognize that States have the ability to preserve, develop and implement their cultural policies for the purpose of strengthening cultural diversity, and

recognize the increased cooperation between Canada and Costa Rica on labour and environmental cooperation;

WHEREAS the Government of Canada has entered into the Agreement having further resolved to

strengthen Canada’s national identity while at the same time protecting vital national characteristics and qualities, and

strengthen the Canadian economy and Canada’s competitiveness as a trading nation;

WHEREAS the Agreement applies generally throughout Canada;

AND WHEREAS it is necessary, in order to give effect to the Agreement, to make related or consequential amendments to certain Acts;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Marginal note:Short title

1. This Act may be cited as the Canada–Costa Rica Free Trade Agreement Implementation Act.

INTERPRETATION

Marginal note:Definitions

  • 2. (1) The definitions in this subsection apply in this Act.

    “Agreement”

    « Accord »

    “Agreement” means the Free Trade Agreement entered into between the Government of Canada and the Government of the Republic of Costa Rica and signed on April 23, 2001, and includes any rectifications to it made before its ratification by Canada.

    “Commission”

    « Commission »

    “Commission” means the Free Trade Commission established under Article XIII.1 of the Agreement.

    “federal law”

    « texte législatif fédéral »

    “federal law” means the whole or any portion of an Act of Parliament or a regulation, order or other instrument issued, made or established in the exercise of a power conferred by or under an Act of Parliament.

    “Minister”

    « ministre »

    “Minister”, in respect of any provision of this Act, means the member of the Queen’s Privy Council for Canada designated under section 10 as the Minister for the purposes of that provision.

    “territory”

    « territoire »

    “territory” means

    • (a) with respect to Canada, the territory to which its customs laws apply, including any areas beyond the territorial seas of Canada within which, in accordance with international law and its domestic law, Canada may exercise rights with respect to the seabed and subsoil and their natural resources; and

    • (b) with respect to Costa Rica, the territory and air space, and the maritime areas, including the seabed and subsoil adjacent to the outer limit of the territorial sea, over which it exercises, in accordance with international law and its domestic law, sovereign rights with respect to the natural resources of such areas.

  • Marginal note:Publication of Agreement

    (2) The Agreement shall be published in the Canada Treaty Series.

Marginal note:Interpretation consistent with Agreement

3. For greater certainty, this Act, any provision of an Act enacted or amended by Part 2 and any other federal law that implements a provision of the Agreement or fulfils an obligation of the Government of Canada under the Agreement shall be interpreted in a manner consistent with the Agreement.

PURPOSE

Marginal note:Purpose

4. The purpose of this Act is to implement the Agreement, the objectives of which, as elaborated more specifically through its provisions, are to

  • (a) establish a free trade area in accordance with the Agreement;

  • (b) promote regional integration through an instrument that contributes to the establishment of the Free Trade Area of the Americas (FTAA) and to the progressive elimination of barriers to trade and investment;

  • (c) create opportunities for economic development;

  • (d) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of Canada and Costa Rica;

  • (e) substantially increase investment opportunities in the territories of Canada and Costa Rica;

  • (f) facilitate trade in services and investment with a view to developing and deepening the relations of Canada and Costa Rica under the Agreement;

  • (g) promote conditions of fair competition in the free-trade area established by the Agreement;

  • (h) establish a framework for further bilateral, regional and multilateral cooperation to expand and enhance the benefits of the Agreement; and

  • (i) create effective procedures for the implementation and application of the Agreement, for its joint administration and for the resolution of disputes.

HER MAJESTY

Marginal note:Binding on Her Majesty

5. This Act is binding on Her Majesty in right of Canada.

GENERAL

Marginal note:Causes of action under Part 1

  • 6. (1) No person has any cause of action and no proceedings of any kind shall be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of Part 1 or an order or regulation made under Part 1.

  • Marginal note:Causes of action under the Agreement

    (2) No person has any cause of action and no proceedings of any kind shall be taken, without the consent of the Attorney General of Canada, to enforce or determine any right or obligation that is claimed or arises solely under or by virtue of the Agreement.

Marginal note:Non-application of Agreement to water

7. For greater certainty, nothing in this Act or the Agreement applies to natural surface or ground water in liquid, gaseous or solid state.

Marginal note:Construction

8. For greater certainty, nothing in this Act, by specific mention or omission, shall be construed to affect in any manner the right of Parliament to enact legislation to implement any provision of the Agreement or fulfil any of the obligations of the Government of Canada under the Agreement.

PART 1IMPLEMENTATION OF AGREEMENT GENERALLY

Approval of Agreement

Marginal note:Agreement approved

9. The Agreement is hereby approved.

Designation of Minister

Marginal note:Order designating Minister

10. The Governor in Council may, by order, designate any member of the Queen’s Privy Council for Canada to be the Minister for the purposes of any provision of this Act.

Administrative and Institutional Provisions

Marginal note:Commission

11. The Minister for International Trade is the principal representative of Canada on the Commission.

Marginal note:Payment of expenditures

12. The Government of Canada shall pay its appropriate share of the aggregate of any expenditures incurred by or on behalf of the Commission.

Marginal note:Administrative support

13. The Minister for International Trade shall designate an agency, division or branch of the Government of Canada to facilitate the operation of, and provide administrative assistance to panels established under, Chapter XIII of the Agreement.

Panels, Committees, Subcommittees and Working Groups

Marginal note:Appointments to roster

14. The Governor in Council may, in accordance with a consensus reached under Article XIII.9 of the Agreement, appoint any person to be a member of the roster established under that Article.

Marginal note:Appointments to committees, subcommittees and working groups

15. The Minister may appoint any person to be a representative of Canada on any committee or subcommittee referred to in Annex XIII.2.2 of the Agreement or on any committee, subcommittee or working group established under Article XIII.1.5 of the Agreement.

Marginal note:Costs

16. The Government of Canada shall, in accordance with Annex XIII.3.2 of the Agreement, pay the costs of or its appropriate share of the costs of

  • (a) the remuneration and expenses payable to panellists, members of committees, subcommittees and working groups, including persons appointed under section 15;

  • (b) the remuneration and expenses payable to assistants; and

  • (c) the general expenses incurred by panels, committees, subcommittees and working groups.

Orders and Regulations

Marginal note:Regulations re Article III.8

  • 17. (1) The Governor in Council may, if the Governor in Council is of the opinion that, for the purpose of giving effect in a province to Article III.8 of the Agreement, regulations are necessary in relation to any matter dealt with by that Article, make regulations for that purpose including, without limiting the generality of the foregoing, regulations requiring or prohibiting the doing of anything in relation to which a regulation may be made under this subsection and prescribing penalties for the contravention of any such regulation.

  • Marginal note:Applicability of regulations in respect of a province

    (2) A regulation made under subsection (1) shall not come into force in respect of a province if the Governor in Council is of the opinion that the province has, by or under provincial law, enacted provisions or is carrying on practices that are in conformity with the portion of Article III.8 of the Agreement in respect of which the regulation was made.

  • Marginal note:Consultation with provincial governments

    (3) The Minister shall consult with the government of a province before the making of a regulation under subsection (1) in respect of that province.

  • Marginal note:Expiration

    (4) A regulation made under subsection (1) or any of its provisions ceases to be in force in respect of a province on a day or days to be fixed, in respect of that province, by order of the Governor in Council.

  • Marginal note:Binding on province

    (5) A regulation made under subsection (1) in respect of a province is binding on Her Majesty in right of that province.

Marginal note:Orders re Article XIII.18

  • 18. (1) The Governor in Council may, for the purpose of suspending concessions or other obligations in accordance with Article XIII.18 of the Agreement, by order, do any one or more of the following:

    • (a) suspend rights or privileges granted by Canada to Costa Rica or to goods, service providers, suppliers, investors or investments of Costa Rica under the Agreement or any federal law;

    • (b) modify or suspend the application of any federal law enacted by Part 2, with respect to Costa Rica or to goods, service providers, suppliers, investors or investments of Costa Rica;

    • (c) extend the application of any federal law to Costa Rica or to goods, service providers, suppliers, investors or investments of Costa Rica; and

    • (d) take any other measure that the Governor in Council considers necessary for that purpose.

  • Marginal note:Period of order

    (2) Unless revoked, an order made under subsection (1) has effect for the period specified in the order.

PART IIRELATED AND CONSEQUENTIAL AMENDMENTS

R.S., c. 47 (4th Supp.)Canadian International Trade Tribunal Act

Marginal note:1997, c. 14, s. 19(1)

  • 19. (1) The definition “textile and apparel goods” in subsection 2(1) of the Canadian International Trade Tribunal Act is replaced by the following:

    “textile and apparel goods”

    « produits textiles et vêtements »

    “textile and apparel goods” means the textile and apparel goods set out in Appendix 1.1 of Annex 300-B of the Agreement, in Appendix 1.1 of Annex C-00-B of the CCFTA or in Appendix III.1.1.1 of Annex III.1 of the CCRFTA, as the case may be;

  • Marginal note:1997, c. 14, s. 19(2)

    (2) Subsection 2(4) of the Act is replaced by the following:

    • Marginal note:Same meaning

      (4) In this Act,

    • Marginal note:Goods imported from a NAFTA country, Chile or Costa Rica

      (5) For the purposes of this Act, goods are imported from a NAFTA country, from Chile or from Costa Rica if they are shipped directly to Canada from the NAFTA country, from Chile or from Costa Rica, as the case may be, within the meaning of sections 17 and 18 of the Customs Tariff.

20. The Act is amended by adding the following after section 19.012:

Definition of “principal cause”

  • 19.013 (1) In this section, “principal cause” means, in respect of a serious injury or threat thereof, an important cause that is no less important than any other cause of the serious injury or threat.

  • Marginal note:Emergency measures — Costa Rica

    (2) The Tribunal shall inquire into and report to the Governor in Council on the question whether goods that are entitled to the benefit of the Costa Rica Tariff, other than textile and apparel goods, are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a principal cause of serious injury, or threat thereof, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report.

  • Marginal note:Terms of reference

    (3) The Tribunal shall conduct an inquiry under subsection (2) and prepare its report in accordance with the terms of reference established by the Governor in Council or the Minister, as the case may be.

  • Marginal note:Tabling of report

    (4) The Minister shall cause a copy of each report submitted to the Governor in Council or the Minister to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report is so submitted.

  • Marginal note:Notice of report

    (5) The Tribunal shall cause notice of the submission of a report to be published in the Canada Gazette.

Marginal note:1997, c. 14, s. 23

21. Section 21.1 of the Act is replaced by the following:

Definition of “complaint”

21.1 In sections 23 to 30, “complaint” means a written complaint filed with the Tribunal under subsection 23(1), (1.01), (1.02), (1.03), (1.04), (1.05), (1.06), (1.07) or (1.08) and, for the purposes of those sections, a complaint is properly documented if the Tribunal is satisfied that it contains or is accompanied by the information required by section 23.

22. Section 23 of the Act is amended by adding the following after subsection (1.06):

  • Marginal note:Filing of complaint — Costa Rica Tariff

    (1.07) Any domestic producer of goods that are like or directly competitive with any goods, other than textile and apparel goods, being imported into Canada and that are entitled to the Costa Rica Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities and under such conditions as to alone constitute a cause of serious injury, or threat thereof, to domestic producers of like or directly competitive goods.

  • Marginal note:Filing of complaint — Costa Rica Tariff

    (1.08) Any domestic producer of any textile and apparel goods that are like or directly competitive with any textile and apparel goods being imported into Canada and that are entitled, either under section 24 of the Customs Tariff or, in respect of goods that fall under the scope of the Agreement on Textiles and Clothing in Annex 1A of the World Trade Organization Agreement pursuant to a commitment made by Canada, under section 49.2 of the Customs Tariff, to the Costa Rica Tariff, or any person or association acting on behalf of such a domestic producer, may file a written complaint with the Tribunal alleging that, as a result of that entitlement, the imported goods are being imported in such increased quantities, in absolute terms or relative to the domestic market in Canada for the goods, and under such conditions as to cause serious damage, or actual threat thereof, to domestic producers of like or directly competitive textile and apparel goods.

Marginal note:1997, c. 14, s. 25

23. Paragraph 25(2)(c) of the Act is replaced by the following:

  • (c) in the case of a complaint filed under subsection 23(1.03), (1.06) or (1.08), send to the Minister a copy of the complaint and the information examined by the Tribunal in making its determination.

  • 24. (1) Paragraph 26(1)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (i.6) and by adding the following after subparagraph (i.6):

    • (i.7) in the case of a complaint filed under subsection 23(1.07), the goods that are entitled to the Costa Rica Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions that they alone constitute a cause of serious injury, or threat thereof, to domestic producers of like or directly competitive goods,

    • (i.8) in the case of a complaint filed under subsection 23(1.08), the textile and apparel goods that are entitled to the Costa Rica Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms or relative to the market in Canada for the goods, and under such conditions as to cause serious damage, or actual threat thereof, to domestic producers of like or directly competitive textile and apparel goods, or

  • Marginal note:1997, c. 14, s. 26(2)

    (2) Subsection 26(2.1) of the Act is replaced by the following:

    • Marginal note:Copies to Minister

      (2.1) Notwithstanding subsection (2), in the case of a complaint filed under subsection 23(1.03), (1.06) or (1.08), the Tribunal shall send to the Minister only a copy of its decision and a copy of any relevant information examined by the Tribunal in relation to the complaint that was not previously sent to the Minister under subsection 25(2).

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