2nd Session, 35th Parliament,
45-46 Elizabeth II, 1996-97

The House of Commons of Canada

BILL C-81

An Act to implement the Canada-Chile Free Trade Agreement and related agreements

Preamble

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

    strengthen the special bonds of friendship and cooperation between their nations,

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

    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,

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

    enhance the competitiveness of their firms in global markets,

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

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

    preserve their flexibility to safeguard the public welfare,

    promote sustainable development,

    strengthen the development and enforcement of environmental laws and regulations,

    protect, enhance and enforce basic workers' rights,

    facilitate the accession of Chile to the North American Free Trade Agreement, and

    contribute to hemispheric integration;

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

Short title

1. This Act may be cited as the Canada-Chile 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 Republic of Chile and signed on December 5, 1996, and includes any rectifications to it made before its ratification by Canada.

``Commission ''
« Commission »

``Commission'' means the Free Trade Commission established under paragraph 1 of Article N-01 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 its sea bed and subsoil and their natural resources; and

      (b) with respect to Chile, the land, maritime, and air space under its sovereignty, and the exclusive economic zone and the continental shelf over which it exercises sovereign rights and jurisdiction in accordance with international law and its domestic law.

Publication of Agreement

(2) The Agreement, including the Schedule of Canada and the Schedule of Chile referred to in Annex C-02.2 of 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 objectives of which, as elaborated more specifically through its provisions, are to

    (a) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of Canada and Chile;

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

    (c) substantially increase investment opportunities in the territories of Canada and Chile;

    (d) create effective procedures for the implementation and application of the Agreement, for its joint administration and for the resolution of disputes; and

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

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) Subject to Section II of Chapter G of the Agreement, 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 C-02 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.

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 I

IMPLEMENTATION OF AGREEMENT GENERALLY

Approval of Agreement

Agreement approved

9. The Agreement is hereby approved.

Designation of Minister

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

Commission

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

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.

Administra-
tive 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 N of the Agreement.

Panels, Committees and Scientific Review Boards

Appointments to roster

14. The Governor in Council may, in accordance with a consensus reached under Article G-25 or N-09 of the Agreement, appoint any person to be a member of the roster established under that Article.

Appointments to certain committees

15. The Minister may appoint any person to be a representative of Canada on any committee referred to in Section A of Annex N-01.2 of the Agreement.

Costs of panels, committees and boards

16. The Government of Canada shall, in accordance with Annex N-02.2 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, including persons appointed under section 15, and members of scientific review boards;

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

    (c) the general expenses incurred by panels, committees and scientific review boards.

Orders and Regulations

Regulations re Article C-10

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 C-10 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.

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 C-10 of the Agreement in respect of which the regulation was made.

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.

Expiration

(4) A regulation made under subsection (1) or any of its provision 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.

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.

Orders re Article N-18

18. (1) The Governor in Council may, for the purpose of suspending in accordance with the Agreement the application to Chile of benefits of equivalent effect under Article N-18 of the Agreement, by order, do any one or more of the following:

    (a) suspend rights or privileges granted by Canada to Chile or to goods, service providers, suppliers, investors or investments of Chile under the Agreement or any federal law, except under Articles M-05 and M-06 and paragraphs 1 to 6 of Article M-07 of the Agreement or under a provision of the Special Import Measures Act enacted by Part II;

    (b) modify or suspend the application of any federal law, except a provision of the Special Import Measures Act enacted by Part II, with respect to Chile or to goods, service providers, suppliers, investors or investments of Chile;

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

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

Period of order

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