Bill C-41

2nd Session, 41st Parliament,

62-63 Elizabeth II, 2013-2014

house of commons of canada

BILL C-41

An Act to implement the Free Trade Agreement between Canada and the Republic of Korea

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

SHORT TITLE

1. This Act may be cited as the Canada–Korea Economic Growth and Prosperity Act.

INTERPRETATION

2. The following definitions apply in this Act.

“Agreement” means the Free Trade Agreement between Canada and the Republic of Korea, done at Ottawa on September 22, 2014.

“Commission” means the Joint Commission established under Article 20.1 of the Agreement.

“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” means the Minister for International Trade.

3. For greater certainty, this Act and any federal law that implements a provision of the Agreement or fulfils an obligation of the Government of Canada under the Agreement is to be interpreted in a manner consistent with the Agreement.

4. For greater certainty, nothing in this Act or the Agreement applies to natural surface or ground water in liquid, gaseous or solid state.

5. For greater certainty, nothing in this Act, by specific mention or omission, is to 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.

HER MAJESTY

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

PURPOSE

7. The purpose of this Act is to implement the Agreement, the objectives of which, as elaborated more specifically through its provisions, are to

(a) establish a free trade area in accordance with the Agreement;

(b) promote, through the expansion of recip-rocal trade, the harmonious development of the economic relations between Canada and the Republic of Korea in order to create opportunities for economic development;

(c) promote conditions of fair competition affecting trade between Canada and the Republic of Korea;

(d) substantially increase investment opportunities in Canada and the Republic of Korea;

(e) eliminate barriers to trade in goods and services in order to contribute to the harmonious development and expansion of world and regional trade;

(f) enhance and enforce environmental laws and regulations and strengthen cooperation between Canada and the Republic of Korea on environmental matters;

(g) protect, enhance and enforce basic workers’ rights, strengthen cooperation on labour matters, and build on the respective international commitments of Canada and the Republic of Korea on labour matters; and

(h) promote sustainable development.

CAUSES OF ACTION

8. (1) No person has any cause of action and no proceedings of any kind are to 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 sections 9 to 15 or an order made under those sections.

(2) Subject to Section B of Chapter 8 and Annex 18-E of the Agreement, no person has any cause of action and no proceedings of any kind are to 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.

PART 1

IMPLEMENTATION OF THE AGREEMENT

Approval

9. The Agreement is approved.

Administrative and Institutional Provisions

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

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

Panels, Committees, Subcommittees, Working Groups and Other Bodies

12. (1) The Minister may

(a) appoint representatives of Canada to any committee, subcommittee, working group or other body referred to in paragraph 5 of Article 20.1 of the Agreement;

(b) appoint a panellist in accordance with paragraph 3 of Article 21.7 of the Agreement; and

(c) propose candidates to serve as the chair of a panel in accordance with that Article 21.7.

(2) The Minister of the Environment may

(a) appoint representatives of Canada to the Environmental Affairs Council referred to in Article 17.11 of the Agreement;

(b) select a panellist in accordance with paragraph 1 of Annex 17-A of the Agreement; and

(c) propose candidates to serve as the chair of a panel of experts, or select the chair, in accordance with paragraph 2 of that Annex.

(3) The Minister of Labour may

(a) select a panellist in accordance with paragraph 1 of Annex 18-D of the Agreement; and

(b) propose candidates to serve as the chair of a Review Panel, or select the chair, in accordance with that paragraph.

13. The Minister is to designate an agency, division or branch of the Government of Canada to facilitate the operation of Chapter 21 of the Agreement and to provide administrative assist-ance to panels established under that Chapter.

14. The Government of Canada is to pay the costs of or its appropriate share of the costs of

(a) the remuneration and expenses payable to members of panels, committees, subcommittees, working groups and other bodies, to independent experts and to the assistants of panel members; and

(b) the general expenses incurred by panels, committees, subcommittees, working groups and other bodies.

Orders

15. (1) The Governor in Council may, for the purpose of suspending benefits in accord-ance with Article 21.11 of the Agreement, by order, do any one or more of the following:

(a) suspend rights or privileges granted by Canada to the Republic of Korea or to goods of the Republic of Korea under the Agreement or any federal law;

(b) modify or suspend the application of any federal law, with respect to the Republic of Korea or to goods of the Republic of Korea;

(c) extend the application of any federal law to the Republic of Korea or to goods of the Republic of Korea;

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

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

Protection of Geographical Indications

16. The following definitions apply in this section and in sections 17 to 22.

“ginseng” means ginseng products classified under heading No. 12.11 or 13.02 of the schedule to the Customs Tariff.

“protected geographical indication identifying ginseng” means all of the following indications:

(a) GoryeoHongsam;

(b) GoryeoBaeksam;

(c) GoryeoSusam;

(d) ginseng rouge de Corée;

(e) ginseng blanc de Corée;

(f) ginseng frais de Corée;

(g) Korean Red Ginseng;

(h) Korean White Ginseng;

(i) Korean Fresh Ginseng.

“protected geographical indication identifying rice” means all of the following indications:

(a) IcheonSsal;

(b) riz Icheon;

(c) Icheon Rice.

“rice” means rice products classified under heading No. 10.06 of the schedule to the Customs Tariff.

17. A person must not use in connection with a business, as a trade-mark or otherwise,

(a) a protected geographical indication identifying rice in respect of rice not originating in the Republic of Korea; or

(b) a translation or transliteration in any language of a protected geographical indication identifying rice in respect of rice not originating in the Republic of Korea.

18. A person must not use in connection with a business, as a trade-mark or otherwise,

(a) a protected geographical indication identifying ginseng in respect of ginseng not originating in the Republic of Korea; or

(b) a translation or transliteration in any language of a protected geographical indication identifying ginseng in respect of ginseng not originating in the Republic of Korea.

19. Nothing in section 17 or 18 prevents the use of a trade-mark in association with rice or ginseng by a person who has in good faith, before the day on which this section comes into force,

(a) filed an application in accordance with section 30 of the Trade-marks Act for the registration of, or secured the registration of, that trade-mark in association with rice or ginseng; or

(b) acquired rights to that trade-mark in association with rice or ginseng through use.

20. Nothing in section 17 or 18 prevents the use, as a trade-mark or otherwise, in connection with a business, of a protected geographical indication identifying rice or a protected geographical indication identifying ginseng — or a translation or transliteration in any language of either of those protected geographical indications — if the protected geographical indication is not or has ceased to be protected by the laws applicable to the Republic of Korea, or has fallen into disuse there.

21. Sections 17 and 18 do not apply to the use of a trade-mark by a person if no proceedings are taken to enforce those sections in respect of that person’s use of the trade-mark within five years after use of the trade-mark by that person or that person’s predecessor-in-title has become generally known in Canada or the trade-mark has been registered by that person in Canada, unless it is established that that person or that person’s predecessor-in-title first used the trade-mark with knowledge that the use was contrary to section 17 or 18, as the case may be.

22. (1) On application of any interested person, the Federal Court or the superior court of a province may issue an injunction if it is satisfied that any act has been done contrary to section 17 or 18.

(2) For the purposes of subsection (1), “interested person” means any person who is affected or reasonably apprehends that he or she may be affected by any act that is contrary to section 17 or 18.

PART 2

RELATED AMENDMENTS

Crown Liability and Proceedings Act

23. The definition “labour cooperation treaty” in section 20.1 of the Crown Liability and Proceedings Act is replaced by the following:

“labour cooperation treaty” means a treaty, or chapter of a treaty, respecting labour cooperation referred to in Part 2 of the schedule;

24. Part 2 of the schedule to the Act is amended by adding the following in alphabetical order:

Chapter 18 of the Free Trade Agreement between Canada and the Republic of Korea, done at Ottawa on September 22, 2014, as amended from time to time in accordance with Article 23.2 of that Agreement.

Financial Administration Act

25. Schedule VII to the Financial Administration Act is amended by adding the following in alphabetical order:

Free Trade Agreement between Canada and the Republic of Korea, done at Ottawa on September 22, 2014.

Customs Act

26. Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order:

“CKFTA” has the same meaning as “Agreement” in section 2 of the Canada–Korea Economic Growth and Prosperity Act;

“Korea” has the same meaning as in subsection 2(1) of the Customs Tariff;

27. Part 1 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Korea” in column 1, a corresponding reference to “CKFTA” in column 2 and a corresponding reference to “Korea Tariff rates of customs duty under the Customs Tariff” in column 3.

28. Part 2 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CKFTA” in column 1 and a corresponding reference to “Article 4.21” in column 2.

29. Part 3 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Korea” in column 1 and a corresponding reference to “paragraph 1 of Article 4.10 of CKFTA” in column 2.

30. Part 4 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “Korea” in column 1 and a corresponding reference to “CKFTA” in column 2.

31. Part 5 of the schedule to the Act is amended by adding, in alphabetical order, a reference to “CKFTA” in column 1 and a corresponding reference to “Chapter Four” in column 2.

Commercial Arbitration Act

32. Schedule 2 to the Commercial Arbitration Act is amended by adding, at the end of column 1, a reference to “Article 8.18 or 8.19” and a corresponding reference to “Free Trade Agreement between Canada and the Republic of Korea, done at Ottawa on September 22, 2014” in column 2.

Canadian International Trade Tribunal Act

33. (1) Section 2 of the Canadian International Trade Tribunal Act is amended by adding the following after subsection (4.4):

(4.5) In this Act,

(a) “CKFTA” has the same meaning as “Agreement” in section 2 of the Canada–Korea Economic Growth and Prosperity Act; and

(b) “Korea Tariff” means the rates of customs duty referred to in section 49.7 of the Customs Tariff.

(2) Subsection 2(5) of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

34. The Act is amended by adding the following after section 19.019:

19.0191 (1) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat.

(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 Korea Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms, and under such conditions as to alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, if the Governor in Council, on the recommendation of the Minister, refers the question to it for inquiry and report.

(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.

(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 15 days on which that House is sitting after the report is so submitted.

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

35. The Act is amended by adding the following after section 20.06:

20.07 (1) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is no less important than any other cause of the serious injury or threat.

(2) Where, in an inquiry conducted under section 20 into goods imported from Korea that are specified by the Governor in Council, 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, in absolute terms, and under such conditions as to alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, the Tribunal shall determine whether the specified imported goods are a principal cause of the serious injury or threat of serious injury.

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

(4) In an inquiry commenced under section 30.07 into goods imported from Korea conducted pursuant to an extension request, the Tribunal shall determine whether the goods imported from Korea are a principal cause of the serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods.

36. Section 21.1 of the Act is replaced by the following:

21.1 In sections 23 to 30, “complaint” means a written complaint filed with the Tribunal under any of subsections 23(1) to (1.097) 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.

37. Section 23 of the Act is amended by adding the following after subsection (1.096):

(1.097) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Korea 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, in absolute terms, and under such conditions as to alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods.

38. Paragraph 26(1)(a) of the Act is amended by striking out “or” at the end of subparagraph (i.96) and by adding the following after subparagraph (i.96):

(i.97) in the case of a complaint filed under subsection 23(1.097), the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms, and under such conditions as to alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, or

39. Subsection 27(1) of the Act is amended by striking out “or” at the end of paragraph (a.96) and by adding the following after paragraph (a.96):

(a.97) in the case of a complaint filed under subsection 23(1.097), the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms, and under such conditions as to alone constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods; or

40. (1) The portion of subsection 30.03(1) of the Act before paragraph (a) is replaced by the following:

30.03 (1) The Tribunal shall cause to be published in the Canada Gazette a notice of the expiry date of any order that imposes a surtax on any goods under subsection 55(1), section 60, subsection 63(1) or 74(1) or (2) of the Customs Tariff or includes any goods on the Import Control List under subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act, but no notice shall be published if

(2) Subsection 30.03(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

(c) the total of the effective period specified in the order and any periods during which the goods were subject to a surtax imposed by an order made under subsection 74(1) or (2) of the Customs Tariff is four years.

41. Subsection 30.04(1) of the Act is replaced by the following:

30.04 (1) Any domestic producer of goods that are like or directly competitive with any goods that are subject to an order referred to in subsection 30.03(1), or any person or association acting on behalf of any such domestic producer, may file with the Tribunal a written request that an extension order be made under subsection 63(1) or 74(7) of the Customs Tariff or subsection 5(3.2) of the Export and Import Permits Act because an order continues to be necessary to prevent or remedy serious injury to domestic producers of like or directly competitive goods.

42. The Act is amended by adding the following after section 30.26:

SAFEGUARD MEASURES IN RESPECT OF KOREA

30.27 In sections 30.28 to 30.32, “complaint” means a written complaint filed with the Tribunal under subsection 23(1.097) 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 subsection 30.28(2).

30.28 (1) Any domestic producer of goods that are like or directly competitive with any goods being imported into Canada and that are entitled to the Korea Tariff, or any person or association acting on behalf of such a domestic producer, may, if filing a complaint under subsection 23(1.097), include in that complaint a written allegation that as a result of that entitlement, the imported goods are being imported in such increased quantities, in absolute terms, and under such conditions as to give rise to critical circumstances.

(2) The allegation must

(a) state in reasonable detail the facts on which it is based;

(b) state an estimate of the total percentage of Canadian production of the like or directly competitive goods that is produced by the domestic producers by whom or on whose behalf the allegation is filed;

(c) be accompanied by any information that is available to the complainant to support the facts referred to in paragraph (a) and to substantiate the estimate referred to in paragraph (b);

(d) be accompanied by any other information that may be required by the rules; and

(e) make any other representations that the complainant considers relevant to the matter.

30.29 (1) The Tribunal may, within seven days after the day on which a complaint under subsection 23(1.097) is received, by notice in writing, request the complainant to provide any additional information that the Tribunal considers necessary in order for an allegation that is included in the complaint to be properly documented.

(2) If the Tribunal receives additional information under subsection (1) or this subsection, the Tribunal may, within seven days after the day on which the additional information is received, by notice in writing, request the complainant to provide any additional information that the Tribunal considers necessary in order for the allegation to be properly documented.

30.3 (1) The Tribunal shall, within seven days after the day on which an allegation is received or, if the Tribunal has requested the complainant to provide additional information under subsection 30.29(1) or (2), within seven days after the day on which the additional information is received, determine whether the allegation is properly documented and, if the Tribunal determines that it is, commence an inquiry into the allegation if it is satisfied

(a) that the information provided by the complainant and any other information examined by the Tribunal discloses a reasonable indication that

(i) the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms, and under such conditions as to constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods, and

(ii) delay in taking action would cause serious injury to domestic producers of like or directly competitive goods that would be difficult to repair; and

(b) that the allegation is made by or on behalf of domestic producers that produce a major proportion of the domestic production of the like or directly competitive goods.

(2) If the Tribunal decides to commence an inquiry, it shall immediately

(a) notify the complainant and each other interested party in writing of its decision, of the reasons for it and of the date on which any hearing in the inquiry will commence;

(b) cause a notice of its decision and the date on which any hearing in the inquiry will commence to be published in the Canada Gazette; and

(c) send to the Minister a copy of the complaint and the information accompanying the complaint, the allegation and the information accompanying the allegation and any other relevant information examined by the Tribunal in relation to the allegation.

(3) If the Tribunal decides not to commence an inquiry, it shall immediately notify the complainant of its decision, of the reasons for it and, if the reasons are based in whole or in part on information that was obtained from a source other than the complainant, of the fact that the decision was based in whole or in part on that information.

30.31 (1) In an inquiry, the Tribunal shall, not later than 58 days after the day on which the complaint is received and having regard to any regulations made under paragraph 40(a), determine on the basis of available information whether

(a) the evidence discloses a reasonable indication that the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities, in absolute terms, and under such conditions as to constitute a principal cause of serious injury, or threat of serious injury, to domestic producers of like or directly competitive goods; and

(b) delay in taking action would cause serious injury to domestic producers of like or directly competitive goods that would be difficult to repair.

(2) During the inquiry, the Tribunal shall examine any other matter in relation to the allegation that the Governor in Council refers to it.

(3) The Tribunal shall prepare a report on the inquiry and provide a copy of the report to the Governor in Council, the Minister, the complainant and any other person who made representations to the Tribunal during the inquiry.

(4) The Tribunal shall cause a notice of the report to be given to each other interested party and to be published in the Canada Gazette.

30.32 If the Tribunal determines under subsection 25(1) that the complaint in which the allegation is included is not properly documented, or determines not to commence an inquiry into the complaint under subsection 26(3), any proceeding initiated in relation to the allegation shall be terminated and the Tribunal must

(a) if an inquiry has been commenced under subsection 30.3(1), notify the complainant and each other interested party in writing that the proceeding has been terminated and cause a notice of the fact that the proceeding has been terminated to be published in the Canada Gazette; or

(b) if an inquiry has not been commenced, notify the complainant in writing that the proceeding has been terminated.

Customs Tariff

43. Subsection 2(1) of the Customs Tariff is amended by adding the following in alphabetical order:

“Canada–Korea Free Trade Agreement” has the same meaning as “Agreement” in section 2 of the Canada–Korea Economic Growth and Prosperity Act.

“Korea” means the land, maritime areas and air space under the sovereignty of the Republic of Korea, and those maritime areas, including the seabed and subsoil adjacent to and beyond the outer limit of the territorial seas, over which the Republic of Korea may exercise sovereign rights or jurisdiction in accordance with international law and its domestic law.

44. Section 5 of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

45. Subparagraph 14(2)(c)(xiv) of the Act is replaced by the following:

(xiv) subsection 74(1),

(xv) subsection 74(2),

(xvi) subsection 5(3), (3.2) or (4.1) of the Export and Import Permits Act.

46. Section 27 of the Act is amended by adding the following in alphabetical order:

“KRT” refers to the Korea Tariff.

47. The Act is amended by adding the following after section 49.6:

Korea Tariff

49.7 (1) Subject to section 24, goods that originate in Korea are entitled to the Korea Tariff rates of customs duty.

(2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “KRT” in relation to goods entitled to the Korea Tariff, the Korea Tariff rate of customs duty that applies to those goods is the final rate of “Free”.

(3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “KRT” in relation to goods entitled to the Korea Tariff, the Korea Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List.

(4) If “V1”, “V2”, “V3” or “V4” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “KRT” in relation to goods entitled to the Korea Tariff, the Korea Tariff rate of customs duty that applies to those goods is the initial rate, reduced

(a) if “V1” is set out,

(i) effective on the coming into force of this subsection, to 66.7% of the initial rate,

(ii) effective on the day that is one year after the day on which this subsection comes into force, to 33.3% of the initial rate, and

(iii) effective on the day that is two years after the day on which this subsection comes into force, to the final rate of “Free”;

(b) if “V2” is set out,

(i) effective on the coming into force of this subsection, to 80% of the initial rate,

(ii) effective on the day that is one year after the day on which this subsection comes into force, to 60% of the initial rate,

(iii) effective on the day that is two years after the day on which this subsection comes into force, to 40% of the initial rate,

(iv) effective on the day that is three years after the day on which this subsection comes into force, to 20% of the initial rate, and

(v) effective on the day that is four years after the day on which this subsection comes into force, to the final rate of “Free”;

(c) if “V3” is set out,

(i) effective on the coming into force of this subsection, to 90% of the initial rate,

(ii) effective on the day that is one year after the day on which this subsection comes into force, to 80% of the initial rate,

(iii) effective on the day that is two years after the day on which this subsection comes into force, to 70% of the initial rate,

(iv) effective on the day that is three years after the day on which this subsection comes into force, to 60% of the initial rate,

(v) effective on the day that is four years after the day on which this subsection comes into force, to 50% of the initial rate,

(vi) effective on the day that is five years after the day on which this subsection comes into force, to 40% of the initial rate,

(vii) effective on the day that is six years after the day on which this subsection comes into force, to 30% of the initial rate,

(viii) effective on the day that is seven years after the day on which this subsection comes into force, to 20% of the initial rate,

(ix) effective on the day that is eight years after the day on which this subsection comes into force, to 10% of the initial rate, and

(x) effective on the day that is nine years after the day on which this subsection comes into force, to the final rate of “Free”; and

(d) if “V4” is set out,

(i) effective on the coming into force of this subsection, to 90.9% of the initial rate,

(ii) effective on the day that is one year after the day on which this subsection comes into force, to 81.8% of the initial rate,

(iii) effective on the day that is two years after the day on which this subsection comes into force, to 72.7% of the initial rate,

(iv) effective on the day that is three years after the day on which this subsection comes into force, to 63.6% of the initial rate,

(v) effective on the day that is four years after the day on which this subsection comes into force, to 54.5% of the initial rate,

(vi) effective on the day that is five years after the day on which this subsection comes into force, to 45.5% of the initial rate,

(vii) effective on the day that is six years after the day on which this subsection comes into force, to 36.4% of the initial rate,

(viii) effective on the day that is seven years after the day on which this subsection comes into force, to 27.3% of the initial rate,

(ix) effective on the day that is eight years after the day on which this subsection comes into force, to 18.2 per cent of the initial rate,

(x) effective on the day that is nine years after the day on which this subsection comes into force, to 9.1% of the initial rate, and

(xi) effective on the day that is ten years after the day on which this subsection comes into force, to the final rate of “Free”.

(5) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one tenth of a cent, the rate shall be rounded down to the nearest one tenth of a cent.

(6) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5.

(7) If a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately.

48. The definition “principal cause” in section 54 of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

49. Section 59.1 of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

50. Subsection 63(4.1) of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

51. The Act is amended by adding the following after section 73:

Bilateral Emergency Measures — Korea

74. (1) Subject to subsections (3) to (9), if at any time it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under subsection 19.0191(2) of the Canadian International Trade Tribunal Act or further to a complaint filed under subsection 23(1.097) of that Act, that goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order

(a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 49.7;

(b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Korea Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods for the corresponding season immediately before the order is made, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods for the corresponding season immediately before the coming into force of this subsection; and

(c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Korea Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection.

(2) Subject to subsections (3) to (9), if at any time it appears to the satisfaction of the Governor in Council, further to an allegation filed under subsection 30.28(1) of the Canadian International Trade Tribunal Act, that there are critical circumstances resulting from the fact that goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order

(a) suspend, during the period that the order is in effect, any reduction of the rate of customs duty with respect to those goods that would otherwise be made after that time by virtue of section 49.7;

(b) in respect of goods on which a customs duty is imposed on a seasonal basis, make those goods subject to a temporary duty, in addition to any other duty specified in this Act or any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Korea Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods for the corresponding season immediately before the order is made, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods for the corresponding season immediately before the coming into force of this subsection; and

(c) in respect of goods other than goods referred to in paragraph (b), make those goods subject to a temporary duty, in addition to any other duty specified in this Act or any other Act of Parliament relating to customs, at a rate set out in the order, but that rate, when added to the rate of customs duty specified in the Korea Tariff that is in effect in respect of those goods at that time, may not exceed the lesser of

(i) the Most-Favoured-Nation Tariff rate of customs duty that is in effect in respect of those goods at the time the order is made, and

(ii) the Most-Favoured-Nation Tariff rate of customs duty that was in effect in respect of those goods immediately before the coming into force of this subsection.

(3) An order under subsection (1) remains in effect for the period that is specified in the order, which shall not exceed two years. However, if the order results from a complaint filed under subsection 23(1.097) of the Canadian International Trade Tribunal Act and an order under subsection (2) has been made in the context of that complaint, the period shall not exceed two years less the number of days during which the order under subsection (2) was in effect.

(4) An order under subsection (2) ceases to have effect at the beginning of the two-hundredth day after the day on which the order is made.

(5) Despite subsection (4), if the inquiry made by the Canadian International Trade Tribunal into the complaint filed under subsection 23(1.097) of the Canadian International Trade Tribunal Act does not result in a finding that the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods,

(a) the order made under subsection (2) in the context of the same complaint ceases to have effect on the day that the Governor in Council receives the resulting report of the Canadian International Trade Tribunal under subsection 29(3) of that Act, and

(b) the Governor in Council may, on the recommendation of the Minister, by order, refund any surtaxes imposed under the order made under subsection (2).

(6) Despite subsection (4), if the inquiry made by the Canadian International Trade Tribunal into the complaint filed under subsection 23(1.097) of the Canadian International Trade Tribunal Act results in a finding that the goods that are entitled to the Korea Tariff are, as a result of that entitlement, being imported in such increased quantities and under such conditions as to alone constitute a principal cause of serious injury, or a threat of serious injury, to domestic producers of like or directly competitive goods, the Governor in Council may, on the recommendation of the Minister, by order, extend the period of the order made under subsection (2) in the context of the same complaint. The total period of the order is not to exceed two years.

(7) The Governor in Council may, on the recommendation of the Minister, by order, extend the period of an order made under subsection (1) or (2), if it appears to the satisfaction of the Governor in Council, as a result of an inquiry made by the Canadian International Trade Tribunal under section 30.07 of the Canadian International Trade Tribunal Act that the order continues to be necessary to prevent or remedy serious injury to, and to facilitate the adjustment of, domestic producers of like or directly competitive goods, and that there is evidence that the domestic producers are adjusting. The total period of the order is not to exceed four years.

(8) An order made under subsection (1) or (2) may be in effect during the period beginning on the day on which this subsection comes into force and ending

(a) if the order is in respect of goods for which the Korea Tariff rate of customs duty is reduced to the final rate of “Free” over a period of less than five years, on the day that is ten years after the expiry of the tariff staging period in respect of those goods; and

(b) if the order is in respect of goods for which the Korea Tariff rate of customs duty is reduced to the final rate of “Free” over a period of five years or more, on the day that is fifteen years after the coming into force of this subsection.

(9) If an order made under subsection (1) or (2) ceases to have effect in a particular calendar year, the rate of customs duty applicable to the goods after the order ceases to have effect is the rate of customs duty that is applicable in accordance with section 49.7.

(10) In this section, “principal cause” means, in respect of a serious injury or threat of a serious injury, an important cause that is not less important than any other cause of the serious injury or threat.

52. Section 79 of the Act is amended by adding the following after paragraph (m):

(n) subsection 74(1);

(o) subsection 74(2).

53. Section 87 of the Act is amended by adding the following after subsection (2):

(3) Despite subsection 20(2), the value for duty of goods of tariff item No. 9971.00.00 that are entitled to the Korea Tariff is the value of the repairs or alterations made to those goods in Korea.

(4) Subsection (3) ceases to have effect on the day before the day that is 10 years after the day on which this subsection comes into force.

54. (1) Paragraph 133(j) of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

(2) Paragraph 133(j.1) of the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

55. The List of Countries and Applicable Tariff Treatments set out in the schedule to the Act is amended by adding, in the column “Tariff Treatment / Other”, a reference to “KRT” opposite the reference to “South Korea”.

56. (1) The List of Tariff Provisions set out in the schedule to the Act is amended by

(a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT”, a reference to “KRT:”;

(b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT”, a reference to “KRT:”;

(c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “KRT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “KRT”, for all tariff items except those tariff items set out in Sched-ules 1 and 2 to this Act;

(d) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate”, a reference to “N/A” after the abbreviation “KRT” for those tariff items set out in Schedule 1 to this Act; and

(e) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “KRT”, for each tariff item set out in Schedule 2 to this Act, the rates of duty and staging categories set out with respect to that tariff item in that Schedule.

(2) The Description of Goods of tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

(3) Note 1 to the Description of Goods of tariff item No. 9971.00.00 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

Note 1: The Iceland Tariff, Korea Tariff, Norway Tariff and Switzerland–Liechtenstein Tariff rate of customs duty applicable to goods classified under this tariff item shall be, in respect of the value of the repair or alteration to the goods carried out only in Iceland, Korea, Norway, Switzerland or Liechtenstein determined under section 87 of this Act, in accordance with their classification in Chapters 1 to 97.

(4) The Description of Goods of tariff item No. 9990.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

(5) The Description of Goods of tariff item No. 9992.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding, in alphabetical order, a reference to “Korea” in the list of countries.

Department of Employment and Social Development Act

57. Subsections 19.1(1) and (2) of the Department of Employment and Social Development Act are replaced by the following:

19.1 (1) All moneys received by Her Maj-esty as a result of a monetary assessment by a panel determination under a treaty, or chapter of a treaty, respecting labour cooperation referred to in the schedule shall be paid into the Consolidated Revenue Fund and, if required under the treaty, credited to a special account in the accounts of Canada to be known as the Labour Cooperation Treaties Account.

(2) If an amount is assessed against Canada by a panel determination under a treaty, or chapter of a treaty, respecting labour cooperation referred to in the schedule, an amount equal to that amount shall be credited to the Account if the Account has been designated for the purposes of the treaty in accordance with its provisions.

58. The schedule to the Act is amended by adding the following in alphabetical order:

Chapter 18 of the Free Trade Agreement between Canada and the Republic of Korea, done at Ottawa on September 22, 2014, as amended from time to time in accordance with Article 23.2 of that Agreement.

PART 3

COORDINATING AMENDMENTS AND COMING INTO FORCE

Coordinating Amendments

59. (1) In this section, “other Act” means the Economic Action Plan 2014 Act, No. 1.

(2) If section 366 of the other Act comes into force before the day on which this Act receives royal assent, then any reference to “trade-mark” in sections 17 to 21 of the English version of this Act is replaced with a reference to “trademark”.

(3) If section 366 of the other Act comes into force before the day on which this Act receives royal assent, then section 19 of the English version of this Act is amended by replacing “Trade-marks” with “Trademarks”.

(4) If section 366 of the other Act comes into force on the day on which this Act receives royal assent, then this Act is deemed to have received royal assent before the day on which that section 366 comes into force.

60. If section 2 of the Order Amending the Schedule to the Customs Tariff (Raw Cane Sugar) and subsection 56(1) of this Act come into force on the same day, then that section 2 is deemed to have come into force before that subsection 56(1).

Coming into Force

61. This Act, other than sections 59 and 60, comes into force on January 1, 2015 unless, before that day, the Governor in Council makes an order fixing a day that is after January 1, 2015 as the day on which this Act comes into force.