WORLD TRADE ORGANIZATION WT/L/664 4 December 2006 (06-5786) General Council 14-15 December 2006 Original: English CANADA - TARIFF TREATMENT FOR COMMONWEALTH CARIBBEAN COUNTRIES 2006 Report of the Government of Canada on the Trade-Related Provisions of CARIBCAN The following communication, dated 27 November 2006, is being circulated at the request of the Delegation of Canada. _______________ Introduction CARIBCAN is an economic and trade development assistance program for the Commonwealth Caribbean countries and territories established as a result of a commitment by Canada at the Commonwealth Heads of Government meeting in Nassau in October 1985. The objectives of CARIBCAN are to enhance Commonwealth Caribbean trade and export earnings, improve the trade and economic development prospects of the region, promote new investment opportunities, and encourage enhanced economic integration and co-operation. The main feature of CARIBCAN is the unilateral extension by Canada, beginning on 15 June 1986, of duty-free access to the Canadian market for most commodities originating in Commonwealth Caribbean countries. On 28 November 1986, a decision by the Contracting Parties to the General Agreement on Tariffs and Trade (GATT) waived until 15 June 1998, the provisions of paragraph 1 of Article 1 of the General Agreement, "only to the extent necessary to permit the Government of Canada to provide duty-free treatment to eligible imports of Commonwealth Caribbean countries benefiting from the provisions of CARIBCAN, without being required to extend the same duty-free treatment to like products of any other contracting party" (L/6102). On 14 October 1996, the WTO extended the CARIBCAN waiver until 31 December 2006. (WT/L/185). The conditions associated with the CARIBCAN waiver remain unchanged. This report is being made in accordance with paragraph 3 of the WTO waiver of 14 October 1996 and Article IX of the WTO Agreement. Country Coverage The Customs Tariff lists 18 countries or dependent territories which are eligible to receive the duty-free benefits accorded under CARIBCAN: Anguilla, Antigua-Barbuda, The Bahamas, Barbados, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Christopher (St. Kitts) and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago, and the Turks and Caicos Islands. No additions or deletions from this list have occurred since CARIBCAN was enacted on 15 June 1986. WT/L/664 Page 2 Product Coverage There have been no amendments to CARIBCAN product coverage since the changes made in February 1998. Today, product exclusions from the duty-free provisions of CARIBCAN are: - Goods of HS Chapters 50 to 65 inclusive; Goods covered by tariff items with “over access commitment” rates of duty established in the “tariffication” process. Rules of Origin The rules of origin for the purposes of the Commonwealth Caribbean Countries Tariff (CCCT) treatment are set out in regulations enacted pursuant to Section 24 of the Customs Tariff. To qualify for the duty-free treatment accorded to Commonwealth Caribbean countries, at least 60 per cent of the ex-factory price of the goods as packed for shipment to Canada must originate in one or more beneficiary countries or Canada. The 60 per cent qualifying content may be cumulated from various CARIBCAN beneficiary countries or Canada. The goods must be finished in the beneficiary country in the form in which they are imported into Canada. Pursuant to the Proof of Origin Regulations, either a duly completed Certificate of Origin, Form A, or a written statement of origin signed by the exporter, must be presented to Customs at the time of release, accounting or refund. Trade under CARIBCAN Canada-CARIBCAN trade statistics are annexed in a series of tables to this report and include 2005 trade data. In general, these trade statistics indicate that: - In 2005, Can$869.4 million or 98 per cent of total Canadian imports from CARIBCAN beneficiaries entered Canada free of duty. As shown in Annex III, Can$746.7 million of this trade entered under MFN free rates while Can$5.7 million entered duty-free under General Preferential Tariff (GPT). Can$116.9 million of this trade entered under the preferential CARIBCAN tariff (CCCT). Annex IV shows the top 25 commodity imports benefiting from the CARIBCAN preference. - Total Canada-CARIBCAN trade (exports plus imports) has grown from Can$776.5 million in 1995 to Can$1.5 billion in 2005. The value of Canadian imports from the region has risen from Can$448 million in 1995 to Can$890.6 million in 2005. The value of Canadian exports to CARIBCAN countries has risen from Can$329 million in 1995 to Can$571 million in 2005. WT/L/664 Page 3 Statistical Annexes: Annex I: Total Imports form CARIBCAN Beneficiaries 1995 - 2005 Annex II: Total Canadian exports to CARIBCAN Beneficiaries 1995 - 2005 Annex III: 2005 Imports from CARIBCAN Beneficiaries by Tariff Treatment Annex IV: Top 25 Merchandise Imports from CARIBCAN Beneficiaries which entered Canada under the CARIBCAN Duty-Free Tariff Treatment (CCCT) in 2005 (thousands of Canadian dollars) Country 1995 Anguilla Antigua - Barbuda 389 Bahamas 16,715 Barbados 16,990 Belize 11,688 Bermuda 4,173 British Virgin Islands 91 Cayman Islands 638 Dominica 2,381 Grenada 639 Guyana 171,208 Jamaica 199,952 Montserrat 18 St. Lucia 1,222 St. Christopher (Kitts) and Nevis 2,937 St. Vincent and the Grenadines 183 Trinidad & Tobago 18,469 Turks & Caicos Islands 17 Total: 447,890 Annex I 1996 11 1,857 23,432 15,703 7,953 2,317 1,299 1,968 1,180 559 204,033 239,135 203 1,602 1997 41 1,256 8,056 13,736 12,737 3,751 199 624 1,390 1,112 203,375 257,507 341 1,287 1998 7 2,698 22,002 11,722 8,263 7,602 615 1,070 1,910 1,067 203,107 256,384 28 1,595 1999 8 402 25,959 10,652 14,027 19,689 614 654 1,642 1,602 192,020 201,074 248 580 2000 9 10,380 14,003 7,375 9,868 17,614 1,376 522 1,698 1,523 197,800 197,727 94 1,413 2001 10 340 13,785 9,118 3,739 2,369 1,324 27,571 775 1,037 209,474 324,783 113 237 2002 13 954 16,941 7,543 6,381 3,803 501 3,818 944 1,476 225,368 270,927 267 411 2003 8 748 48,149 6,282 4,501 1,655 1,146 2,242 358 1,082 201,099 264,871 453 266 2004 27 579 55,652 8,508 8,325 12,511 1,785 1,108 313 1,259 197,704 346,608 238 366 2005 145 558 56,816 7,368 9,651 17,738 2,699 441 775 944 147,206 393,028 104 512 2,958 4,426 4,494 5,120 4,399 6,121 7,458 8,722 8,185 7,868 138 46,599 93 551,046 137 26,215 338 536,630 200 34,157 686 557,608 152 73,688 1,823 549,954 404 72,327 1,647 540,178 310 195,141 1,007 797,254 619 166,704 2,347 716,475 124 232,921 7,980 782,607 123 156,281 6,871 806,443 125 237,073 7,525 890,576 Source: Statistics Canada. Notes: A dash (-) indicates that an amount is nil or negligible. WT/ Page Total Canadian Imports from CARIBCAN Beneficiaries 1995 – 2005 Total Canadian Exports to CARIBCAN Beneficiaries 1995-2005 (thousands of Canadian dollars) Country 1995 Anguilla 548 Antigua - Barbuda 6,160 Bahamas 15,231 Barbados 31,554 Belize 4,232 Bermuda 34,302 British Virgin Islands 1,381 Cayman Islands 11,490 Dominica 1,891 Grenada 3,789 Guyana 8,144 Jamaica 96,645 Montserrat 128 St. Lucia 12,521 St. Christopher (Kitts) and Nevis 2,498 St. Vincent and the 2,815 Grenadines Trinidad & Tobago 94,658 Turks & Caicos Islands 654 Total: 328,641 Annex II 1996 588 28,133 19,292 35,872 2,586 33,453 898 7,281 2,238 4,649 11,171 90,784 185 5,426 1997 881 9,384 21,610 37,193 9,847 39,177 3,417 1,369 1,840 3,321 10,671 86,937 149 8,729 1998 1,007 8,492 24,513 36,396 3,760 40,165 2,628 12,266 3,236 4,901 9,968 98,032 81 11,493 1999 673 11,402 26,301 41,087 3,332 42,973 28,743 8,127 5,560 4,839 14,655 96,699 83 12,524 2000 651 10,727 26,018 33,783 2,598 34,540 60,187 8,286 4,436 4,023 8,073 99,815 289 9,683 2001 2,802 10,434 27,706 29,104 3,505 34,715 2,240 63,858 2,671 3,142 8,068 121,933 214 7,375 2002 1,301 7,970 33,245 33,629 5,079 107,599 2,167 6,807 2,614 4,450 10,373 158,212 291 7,804 2003 802 17,273 28,883 41,979 5,271 42,945 2,129 7,671 7,668 5,868 9,536 124,650 300 7,423 2004 1,215 15,534 30,392 44,769 5,425 59,301 2,637 10,738 4,967 6,056 10,603 163,755 434 8,059 2005 1,559 14,968 59,949 55,729 6,347 66,405 2,786 22,374 4,585 6,956 15,330 144,312 510 7,020 2,560 3,116 2,011 4,063 5,675 3,676 10,646 4,633 9,633 4,906 16,147 3,941 27,036 12,059 3,982 5,380 83,913 514 332,667 102,544 537 343,680 129,703 1,379 397,371 161,936 2,357 476,570 110,822 2,341 430,811 156,222 2,366 496,443 3,743 136,808 2,933 552,061 5,874 125,507 10,372 456,210 5,130 121,475 7,182 501,654 6,978 141,525 8,258 570,971 Source: Statistics Canada. Notes: A dash (-) indicates that an amount is nil or negligible. Includes Canadian domestic exports only. WT/L/664 Page WT/L/664 Page 6 Annex III(i) Duty Free 2005 Imports from CARIBCAN Beneficiaries by Tariff Treatment (in Canadian dollars) Country Anguilla Antigua and Barbuda Bahamas Barbados Belize Bermuda Br. Virgin Is. Cayman Islands Dominica Grenada Guyana Jamaica Montserrat St. Christopher (Kitts) and Nevis Saint Lucia Saint Vincent/Gren. Trinidad and Tobago Turks/Caicos Is. Total Total Imports MFN Free 144,775 115,383 557,918 56,816,109 7,367,727 9,651,248 17,738,257 2,698,459 441,259 774,520 943,959 147,206,217 393,028,412 103,902 477,403 52,361,654 2,163,519 8,860,357 17,352,460 2,332,037 382,836 522,691 401,225 141,360,391 370,301,535 66,862 7,868,091 512,059 124,853 237,073,012 7,525,349 890,576,126 GPT Free Caribcan (CCCT) Free - Total Free Total Free as % of Total Imports 80 87 - 115,383 82,868 2,270 267,592 1,632,475 207,874 - 6,297 3,653,708 1,729,417 84,875 5,590 27,234 170,382 3,126,581 13,707,681 - 483,700 56,015,362 7,159,864 8,960,955 17,358,050 2,414,905 382,836 552,195 839,199 146,119,449 384,217,113 66,862 99 97 93 98 89 87 71 89 99 98 64 1,799,752 360,859 124,492 140,843,361 1,803 1,786 266,989 5,642 73,229 94,111,701 1,807,197 435,874 124,492 235,222,051 23 85 100 99 6,918,333 746,745,150 5,746,308 231,555 116,933,892 7,149,888 869,425,375 95 98 3,266,928 15,723 Source: Statistic Canada. Notes: A dash (-) indicates that an amount is nil or negligible. WT/L/664 Page 7 Annex III(ii) Dutiable 2005 imports from CARIBCAN Beneficiaries by Tariff Treatment (in Canadian dollars) Country Anguilla Antigua and Barbuda Bahamas Barbados Belize Bermuda Br. Virgin Is. Cayman Islands Dominica Grenada Guyana Jamaica Montserrat St. Christopher (Kitts) and Nevis Saint Lucia Saint Vincent/Gren. Trinidad and Tobago Turks/Caicos Is. Total Total Imports MFN Dutiable GPT Dutiable Caribcan Dutiable 144,775 557,918 56,816,109 7,367,727 9,651,248 17,738,257 2,698,459 441,259 774,520 943,959 147,206,217 393,028,412 103,902 29,392 74,218 800,747 205,866 690,293 380,207 259,874 58,423 222,325 104,760 1,009,417 8,724,705 37,040 23,680 71,604 64,797 - 1,997 5,747 21,797 - 29,392 74,218 800,747 207,863 690,293 380,207 283,554 58,423 222,325 104,760 1,086,768 8,811,299 37,040 Total Dutiable as % of Total Imports 20 13 1 3 7 2 11 13 29 11 1 2 36 7,868,091 512,059 124,853 237,073,012 7,525,349 890,576,126 6,060,894 76,185 361 1,719,149 375,461 20,829,317 65,775 225,856 66,037 95,578 6,060,894 76,185 361 1,850,961 375,461 21,150,751 77 15 0 1 5 2 Source: Statistic Canada. Notes: A dash (-) indicates that an amount is nil or negligible. Total Dutiable WT/L/664 Page 8 Annex IV Top 25 Merchandise Imports from CARIBCAN Beneficiaries which entered Canada Under CARIBCAN Duty-Free Tariff Treatment in 2005 (in Canadian Dollars) HS Tariff 29051100 72031000 22084010 03061100 22071010 22021000 20089930 07149090 21039020 19059049 85369091 20059090 21039090 19053192 09109990 22087000 19053191 08129010 73269090 19059043 22029090 17049090 20079990 04063010 07142000 Description Methanol (methyl alcohol) Ferrous products obtained by direct reduction of iron ore Rum Rock lobster and other sea crawfish (Palinurus spp., Panulirus spp., Jasus spp.) Undenatured, ethyl alcohol of an alcoholic strength by volume of 80% vol or higher, for use as a spirituous or alcoholic beverage or for use in the manufacture of spirituous or alcoholic beverages Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured Akalas, akees, anchovy pears, apple-pears, avocados, bananas, banana chips (thin banana slices fried or otherwise prepared whether or not salted, sweetened or otherwise flavoured), bread fruit, carambolas, chayotes, cherimoyas (Jamaica apples)…. Other [Arrowroot, salep, Jerusalem artichokes and similar roots and tubers with high starch or inulin content, fresh, chilled or dried, whether or not sliced or in the form of pellets; sago pith] Mixed condiments and mixed seasonings Other biscuits [Containing less than 25% by weight of wheat] Other: Junction boxes; Receptacle boxes of metal Other [Other vegetables and mixtures of vegetables] Other [Sauces and preparations] Other: Wafers and frozen waffles containing 25% or more by weight of wheat, in packages of a weight not exceeding 454 g each, and sweet biscuits containing 25% or more by weight of wheat, in packages of a weight not exceeding 1.36 kg each, over access.... Other spices Liqueurs and cordials Sweet biscuits: containing 25% or more by weight of wheat, within access commitment Akalas, akees, anchovy pears, apple-pears, avocados, bananas, bread fruit, carambolas, chayotes, cherimoyas (Jamaica apples)…. Other [Other articles of iron or steel] Other biscuits: Containing 25% or more by weight of wheat, in packages of a weight not exceeding 1.36 kg each, over access commitment Other [non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09] Other [Sugar confectionery (including white chocolate), not containing cocoa, not including chewing gum, whether or not sugar-coated] Other [nut puréee and nut pastes; berry purée, other fruit purée other jams, jellies…] Within access commitment [Process cheese, not grated or powdered] Sweet potatoes Source: Statistics Canada import data. __________ Imports under CARIBCAN Treatment (CCCT) 77,027,793 14,794,586 9,962,298 3,885,263 2,365,913 766,983 743,331 712,331 695,522 465,702 445,951 373,854 373,641 345,363 279,274 226,939 186,887 185,506 179,550 175,062 168,469 143,316 127,661 127,630 127,094