1nd Session, 35th Parliament,
42-43-44 Elizabeth II, 1994-95

The House of Commons of Canada

BILL C-311

An Act to require the Minister for International Trade to retaliate against import restrictions introduced by the United States of America on Canadian refined sugar and sugar-containing products

Whereas the Government of Canada and the governments of other countries entered into agreements to establish the World Trade Organization (WTO) effective January 1, 1995;

Whereas as part of the WTO negotiations members of the World Trade Organization were required to make binding market access concessions on agricultural trade pursuant to the WTO Agreement on Agriculture;

Whereas the Government of the United States of America took the opportunity to impose additional restrictions on imports of Canadian refined sugar and sugar-containing products;

Whereas such restrictions were added to numbers of existing import restrictions and will substantially reduce market access for Canadian refined sugar and sugar-containing products;

Whereas such action was unreasonable and inconsistent with international trade rules;

Whereas such action will burden and restrict fairly traded Canadian sugar products;

And whereas it is necessary to take action on an urgent basis to protect the interest of Canadian producers of sugarbeets, refined sugar and sugar-containing products;

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

SHORT TITLE

Short title

1. This Act may be cited as the United States Sugar Import Restrictions Retaliation Act.

INTERPRETATION

Definition

2. In this Act,

``WTO Agreement on Agriculture''
« Accord de l'OMC relatif à l'agriculture »

``WTO Agreement on Agriculture'' means the Agreement on Agriculture that formed part of the Final Act Embodying The Results Of The Uruguay Round Of Multilateral Trade Negotiations signed at Marrakesh, April 15, 1994;

``Minister''
« ministre »

``Minister'', in respect of any provision of this Act, means the Minister for International Trade;

``WTO schedule of market access commitments' '
« Liste des engagements en matière d'accès aux marchés accessoire à l'Accord sur l'Organisatio n mondiale du commerce »

``WTO schedule of market access commitments'', means the schedule of market access commitments made by the United States of America pursuant to the WTO Agreement on Agriculture.

PART I

3. The Minister shall undertake consultations with the Government of the United States of America to determine whether it will restore the previous levels of access which Canadian exports of sugar and sugar-containing products held prior to the imposition of new restrictions in the United States of America's schedule of market access commitments made pursuant to the WTO Agreement on Agriculture. Such consultations shall be concluded within 60 days of the entry into force of this Act.

4. In the event that consultations pursuant to section 3 fail to restore access levels within the 60 day period, the Governor in Council shall take immediate action under section 59 of the Customs Tariff necessary to protect the interests of Canadian producers of sugarbeets, refined sugar and sugar-containing products. Such action shall suspend concessions or benefits related to imports of the like products from the United States of America. Canadian imports of refined sugar and sugar-containing products from the United States of America shall be limited to the equivalent market share (percentage share of total Canadian market for such products) that Canadian exports of refined sugar and sugar-containing products hold of the United States market (percentage share of total U.S. market for such products).

5. The Minister shall continue to seek a satisfactory resolution of the matter and all retaliatory measures maintained under section 4 shall be continued only for so long as it is necessary to achieve such a resolution.

PART II

6. The Minister shall report to Parliament at the end of every 90 day period commencing after the entry into force of this Act on whether, in the opinion of the Minister, there has been a satisfactory resolution of the matter. Retaliatory measures maintained pursuant to section 4 shall be removed upon the date which the Minister specifies in the report to Parliament made under this section.