WORLD TRADE WT/L/634 23 November 2005 ORGANIZATION (05-5613) Original: English/ French General Council 1-2 December 2005 CANADA - TARIFF TREATMENT FOR COMMONWEALTH CARIBBEAN COUNTRIES 2005 Report of the Government of Canada on the Trade-Related Provisions of CARIBCAN The following communication, dated 23 November 2005, 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 WT/L/634 Page 2 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. 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 2004 trade data. In general, these trade statistics indicate that: - In 2004, just under Can$782 million or 97 per cent of total Canadian imports from CARIBCAN beneficiaries entered Canada free of duty. As shown in Annex III, $654.7 million of this trade entered under MFN free rates while Can$6.3 million entered duty-free under General Preferential Tariff (GPT). Can$121.5 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$799 million in 1994 to Can$1.3 billion in 2004. The value of Canadian imports from the region has risen from Can$527 million in 1994 to Can$806 million in 2004. The value of Canadian exports to CARIBCAN countries has risen from Can$273 million in 1994 to Can$502 million in 2004. WT/L/634 Page 3 Statistical Annexes: Annex I: Total Imports form CARIBCAN Beneficiaries 1994 - 2004 Annex II: Total Canadian exports to CARIBCAN Beneficiaries 1994- 2004 Annex III: 2004 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 2004 (thousands of Canadian dollars) Country Anguilla Antigua - Barbuda Bahamas Barbados Belize Bermuda British Virgin Islands Cayman Islands Dominica Grenada Guyana Jamaica Montserrat St. Lucia St. Christopher (Kitts) and Nevis St. Vincent and the Grenadines Trinidad & Tobago Turks & Caicos Islands Total: 1994 5 368 44,867 14,098 17,686 13,988 37 586 423 440 203,865 211,328 78 463 1,888 247 16,122 66 526,555 1995 389 16,715 16,990 11,688 4,173 91 638 2,381 639 171,208 199,952 18 1,222 2,937 183 18,469 17 447,890 Source: Statistics Canada. Notes: A dash (-) indicates that an amount is nil or negligible. 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 2,958 138 46,599 93 551,046 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 4,426 137 26,215 338 536,630 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 4,494 200 34,157 686 557,608 1999 8 402 25,959 10,652 14,027 19,689 614 654 1,642 1,602 192,020 201,074 248 580 5,120 152 73,688 1,823 549,954 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 4,399 404 72,327 1,647 540,178 2001 10 340 13,785 9,118 3,739 2,369 1,324 27,571 775 1,037 209,474 324,783 113 237 6,121 310 195,141 1,007 797,254 2002 13 954 16,941 7,543 6,381 3,803 501 3,818 944 1,476 225,368 270,927 267 411 7,458 619 166,704 2,347 716,475 2003 8 748 48,149 6,282 4,501 1,655 1,146 2,242 358 1,082 201,099 264,871 453 266 8,722 124 232,921 7,980 782,607 2004 27 579 55,652 8,508 8,325 12,511 1,785 1,108 313 1,259 197,704 346,608 238 366 8,185 123 156,281 6,871 806,443 WT/ Page Total Canadian Imports from CARIBCAN Beneficiaries 1994 – 2004 Total Canadian Exports to CARIBCAN Beneficiaries 1994-2004 (thousands of Canadian dollars) Country Anguilla Antigua - Barbuda Bahamas Barbados Belize Bermuda British Virgin Islands Cayman Islands Dominica Grenada Guyana Jamaica Montserrat St. Lucia St. Christopher (Kitts) and Nevis St. Vincent and the Grenadines Trinidad & Tobago Turks & Caicos Islands Total: 1994 127 6,022 15,170 33,459 4,776 22,004 4,551 4,483 1,613 1,936 5,517 89,578 208 10,425 4,098 3,015 65,192 387 272,561 1995 548 6,160 15,231 31,554 4,232 34,302 1,381 11,490 1,891 3,789 8,144 96,645 128 12,521 2,498 2,815 94,658 654 328,641 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 2,560 3,116 83,913 514 332,667 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 2,011 4,063 102,544 537 343,680 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 5,675 3,676 129,703 1,379 397,371 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 10,646 4,633 161,936 2,357 476,570 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 9,633 4,906 110,822 2,341 430,811 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 16,147 3,941 156,222 2,366 496,443 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 27,036 3,743 136,808 2,933 552,061 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 12,059 5,874 125,507 10,372 456,210 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 3,982 5,130 121,475 7,182 501,654 Source: Statistics Canada Notes: A dash (-) indicates that an amount is nil or negligible. Includes Canadian domestic exports only. WT/L/634 Page WT/L/634 Page 6 Annex III(i) Duty Free 2004 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 GPT Free Caribcan (CCCT) Free Total Free 27,879 579,247 55,652,437 8,508,002 8,325,413 12,511,576 1,785,225 1,107,525 313,555 1,259,367 197,703,636 346,607,815 238,229 22,831 518,550 47,354,886 1,478,073 7,328,938 11,851,205 1,356,586 1,057,009 211,907 932,853 193,451,970 327,175,052 201,477 6,613 3,264,944 192,373 19,476 208,130 1,923,288 372,064 - 1,390 7,565,258 2,397,232 55,981 37,261 133 38,720 46,866 475,397 12,961,778 - 22,831 526,553 54,920,144 7,140,249 7,577,292 11,888,466 1,376,195 1,057,009 250,627 1,187,849 195,850,655 340,508,894 201,477 Total Free as % of Total Imports 82 91 99 84 91 95 77 95 80 94 99 98 85 8,185,253 366,305 123,094 156,281,426 6,870,982 806,446,966 1,860,798 303,196 118,780 53,412,441 6,113,288 654,749,840 104,236 197,665 6,288,789 21,477 52,704 236 97,290,135 508,793 121,453,361 1,986,511 355,900 119,016 150,900,241 6,622,081 782,491,990 24 97 97 97 96 97 Source: Statistic Canada. Notes: A dash (-) indicates that an amount is nil or negligible. WT/L/634 Page 7 Annex III(ii) Dutiable 2004 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 27,879 579,247 55,652,437 8,508,002 8,325,413 12,511,576 1,785,225 1,107,525 313,555 1,259,367 197,703,636 346,607,815 238,229 5,048 52,694 732,293 1,313,956 748,121 622,756 227,993 50,516 62,928 71,518 1,772,938 5,850,492 36,752 3,695 181,037 35,917 96,344 - 50,102 354 44,126 152,085 - 5,048 52,694 732,293 1,367,753 748,121 623,110 409,030 50,516 62,928 71,518 1,852,981 6,098,921 36,752 Total Dutiable as % of Total Imports 18 9 1 16 9 5 23 5 20 6 1 2 15 8,185,253 366,305 123,094 156,281,426 6,870,982 806,446,966 6,198,742 10,405 4,078 1,358,290 248,901 19,368,421 39,289 356,282 3,983,606 4,230,273 6,198,742 10,405 4,078 5,381,185 248,901 23,954,976 76 3 3 3 4 3 Source: Statistic Canada. Notes: A dash (-) indicates that an amount is nil or negligible. Total Dutiable WT/L/634 Page 8 Annex IV Top 25 Merchandise Imports from CARIBCAN Beneficiaries which entered Canada Under CARIBCAN Duty-Free Tariff Treatment in 2004 (in Canadian Dollars) HS Tariff 29051100 72031000 22084010 03061100 85369091 21039020 22021000 07149090 22087000 19059049 19019020 19053192 21039090 04063010 20059090 73269090 07142000 09109990 20089210 17049090 20089930 22029090 39269090 21069029 83061090 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.) Other: Junction boxes; Receptacle boxes of metal Mixed condiments and mixed seasonings Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured 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] Liqueurs and cordials Other biscuits [Containing less than 25% by weight of wheat] Food preparations of flour, meal, starch or malt extract 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 [Sauces and preparations] Within access commitment [Process cheese, not grated or powdered] Other [Other vegetables and mixtures of vegetables] Other [Other articles of iron or steel] Sweet potatoes Other spices Mixtures of akalas, akees, anchovy pears, apple-pears, avocados, bananas, bread fruit, carambolas, chayotes, cherimoyas (Jamaica apples), citris fruit, dates, durians, feijoas, figs, fu quas (alsam pears) genipes, guavas, imbus, jujubes, kiwi fruit… Other [Sugar confectionery (including white chocolate), not containing cocoa , not including chewing gum, whether or not sugarcoated] 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 [non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09] Other [Articles of plastics and articles of other materials of headings 39.01 to 39.14] Other [Food concentrates and fruit syrups for use in beverages or other food preparations] Other [Bells, gongs and the like not including church bells] Source: Statistics Canada import data. __________ Imports under CARIBCAN Treatment (CCCT) 85,931,244 12,570,537 8,326,249 8,102,138 837,556 677,247 668,217 620,050 524,656 513,130 415,956 349,575 326,571 298,774 295,620 278,226 271,932 244,192 199,282 190,152 186,781 179,992 168,614 158,180 141,600