45 ELIZABETH II

CHAPTER 33

An Act to implement the Canada-Israel Free Trade Agreement

Assented to 18th December, 1996

Preamble

WHEREAS the Government of Canada and the Government of the State of Israel have entered into a Free Trade Agreement

    desiring to strengthen their economic relations and to promote economic development,

    wishing to create a framework for promoting investment and cooperation,

    resolved to foster the development of their trade with due regard to fair conditions of competition,

    recalling the mutual interest of the Government of Canada and the Government of the State of Israel in reinforcement of the multilateral trading system as reflected in the Agreement Establishing the World Trade Organization,

    recalling that the Government of Canada and the Government of the State of Israel entered into a Memorandum of Understanding on September 27, 1976 that established a Joint Economic Commission, which was continued under a Memorandum of Understanding on Economic Cooperation entered into on August 5, 1993, and

    wishing to establish a free trade area between the two countries through the removal of trade barriers,

WHEREAS the Government of Canada has entered into the Agreement having further resolved to strengthen the Canadian economy and Canada's competitiveness as a trading nation;

WHEREAS the Government of Canada has announced its willingness to extend the benefits of the Agreement to another beneficiary;

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

Short title

1. This Act may be cited as the Canada-Israel Free Trade Agreement Implementation Act.

INTERPRETATION

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 State of Israel and signed on July 31, 1996, and includes any rectifications to it made before its ratification by Canada.

``Commission ''
« Commission »

``Commission'' means the Canada-Israel Trade Commission established under paragraph 1 of Article 8.2 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 9 as the Minister for the purposes of that provision.

Publication of Agreement

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

Interpreta-
tion consistent with Agreement

3. For greater certainty, this Act, any provision of an Act enacted or amended by Part II 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

Purpose

4. The purpose of this Act is to implement the Agreement, the objective of which, as elaborated more specifically through its provisions, is to eliminate barriers to trade in, and facilitate the movement of, goods within the free-trade area established by the Agreement, and thereby to promote conditions of fair competition and substantially increase investment opportunities in that free-trade area.

HER MAJESTY

Binding on Her Majesty

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

GENERAL

Causes of action under Part I

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 I or an order or regulation made under Part I.

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.

Non-appli-
cation of Agreement to water

7. (1) For greater certainty, nothing in this Act or the Agreement, except Article 2.1 of the Agreement, applies to water.

Definition of ``water''

(2) In this section, ``water'' means natural surface and ground water in liquid, gaseous or solid state, but does not include water packaged as a beverage or in tanks.

PART I

IMPLEMENTATION OF AGREEMENT GENERALLY

Approval of Agreement

Agreement approved

8. The Agreement is hereby approved.

Designation of Minister

Order designating Minister

9. 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

Appointment of represen-
tative on the Commission

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

Payment of expenditures

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

Administra-
tive support

12. 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 Eight of the Agreement.

Appoint-
ments to certain committees

13. The Minister for International Trade may appoint any person to be a representative of Canada on any committee or working group referred to in paragraph 4 of Article 8.2 of the Agreement.

Costs of panels

14. The Government of Canada shall, in accordance with Annex 8.9 of the Agreement, pay the costs of or its appropriate share of the costs of

    (a) the remuneration and expenses payable to panellists and assistants; and

    (b) the general expenses incurred by panels.

Regulations

Regulations

15. The Governor in Council may make regulations

    (a) for carrying out the purposes and provisions of this Act; and

    (b) on the recommendation of the Minister for International Trade, for carrying out and giving effect to paragraph 1 of Annex 8.9 of the Agreement.

PART II

CONSEQUENTIAL AMENDMENTS

R.S., c. 47 (4th Supp.)

Canadian International Trade Tribunal Act

16. Section 2 of the Canadian International Trade Tribunal Act is amended by adding the following after subsection (2):

Same meaning

(2.1) In this Act,

    (a) ``CIFTA'' has the same meaning as ``Agreement'' in subsection 2(1) of the Canada-Israel Free Trade Agreement Implementation Act; and

    (b) ``Canada-Israel Free Trade Agreement Tariff'', ``imported from Israel or another CIFTA beneficiary'' and ``Israel or another CIFTA beneficiary'' have the same meaning as in subsection 2(1) of the Customs Tariff.

17. The Act is amended by adding the following after section 19.01:

Definition of ``principal cause''

19.011 (1) In this section, ``principal cause'' means, in respect of a serious injury, an important cause that is no less important than any other cause of the serious injury.

Emergency measures - Israel or another CIFTA beneficiary

(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 Canada-Israel Free Trade Agreement Tariff 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 to domestic producers of like or directly competitive goods, where the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report.

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.

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.

Notice of report

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

1994, c. 47, s. 32

18. The portion of subsection 19.02(1) of the Act before paragraph (a) is replaced by the following:

Mid-term review

19.02 (1) Where an order made under subsection 59.1(1), (8) or (11) or 59.11(2), (13) or (20) of the Customs Tariff or subsection 5(3), (3.2), (4.01) or (4.8) of the Export and Import Permits Act specifies that it remains in effect for a period of more than three years, the Tribunal shall, before the mid-point of the period,

19. The Act is amended by adding the following after section 20.01:

Determi-
nation in respect of goods of Israel or another CIFTA beneficiary

20.02 (1) Where, in an inquiry conducted pursuant to a reference under section 20 into goods imported from Israel or another CIFTA beneficiary that are specified by the Governor in Council or in an inquiry conducted pursuant to a complaint under subsection 23(1) into goods so imported that are specified by the Tribunal, the Tribunal finds that the specified imported goods and goods of the same kind imported from other countries are being imported in such increased quantities and under such conditions as to be a principal cause of serious injury, or threat thereof, to domestic producers of like or directly competitive goods, the Tribunal shall determine

    (a) whether the quantity of the specified imported goods accounts for a substantial share of total imports of goods of the same kind; and

    (b) whether the specified imported goods contribute importantly to the serious injury or threat thereof.

Determi-
nations

(2) In the case of an inquiry to which subsection (1) applies, the Tribunal shall include in its report any determinations made pursuant to that subsection.

Inquiry under section 30.07

(3) In an inquiry under section 30.07 into goods imported from Israel or another CIFTA beneficiary conducted pursuant to an extension request, the Tribunal shall determine

    (a) whether the quantity of the goods accounts for a substantial share of total imports of goods of the same kind; and

    (b) whether the goods contribute importantly to serious injury, or threat thereof, to domestic producers of like or directly competitive goods.

Considera-
tions

(4) In making a determination under this section, the Tribunal shall take fully into account paragraph 2 of Article 4.6 of CIFTA.

1993, c. 44, s. 39

20. 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) or (1.04), 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.

21. Section 23 of the Act is amended by adding the following after subsection (1.03):

Filing of complaint - CIFTA Tariff

(1.04) Any domestic producer of goods that are like or directly competitive with goods being imported into Canada that are entitled to the Canada-Israel Free Trade Agreement 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 to domestic producers of like or directly competitive goods.

22. (1) Paragraph 26(1)(a) of the Act is amended by striking out the word ``or'' at the end of subparagraph (i.3) and by adding the following after subparagraph (i.3):

      (i.4) in the case of a complaint filed under subsection 23(1.04), the goods that are entitled to the Canada-Israel Free Trade Agreement 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 to domestic producers of like or directly competitive goods, or

1994, c. 47, s. 36(2)

(2) Subsection 26(7) of the Act is replaced by the following:

Time limit on inquiry

(7) Where subsection 59.1(3.1) or 59.11(6) of the Customs Tariff or subsection 5(3.1) of the Export and Import Permits Act prohibits the making of an order pursuant to subsection 59.1(1) or 59.11(2) of the Customs Tariff or subsection 5(3) of the Export and Import Permits Act in respect of any goods during any period, the Tribunal may commence an inquiry into a complaint under subsection (1) in respect of the goods no earlier than one hundred and eighty days before the end of the period.

23. Subsection 27(1) of the Act is amended by striking out the word ``or'' at the end of paragraph (a.3) and by adding the following after paragraph (a.3):

    (a.4) in the case of a complaint filed under subsection 23(1.04), the goods that are entitled to the Canada-Israel Free Trade Agreement Tariff 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 to domestic producers of like or directly competitive goods; or