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Vol. 136, No. 40 — September 30, 2000

Order Suspending Certain Provisions of the Special Import Measures Act

Statutory Authority

Special Import Measures Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Order suspends provisions of the Special Import Measures Act (SIMA) that currently exempt certain kinds of foreign subsidies from the application of countervailing duties. The Regulations amend certain related provisions in the Special Import Measures Regulations (SIM Regulations). These changes are required to bring the SIMA into conformity with recent changes to the Agreement on Subsidies and Countervailing Measures, which is one of the World Trade Organization (WTO) agreements. The Agreement contained provisions that rendered certain subsidies, which satisfied very specific criteria, immune from countervailing duty action. These provisions lapsed on December 31, 1999, because WTO countries were not able to agree on their extension.

Alternatives

There are no reasonable alternatives to this action.

Benefits and Costs

The amendments to the SIMA and the SIM Regulations will ensure reciprocity with our trading partners in the application of WTO subsidy rules, so that we are not treating our trading partners more favourably than they are treating us in countervail investigations.

There are no foreseeable costs.

Consultation

The Canada Customs and Revenue Agency and the Canadian International Trade Tribunal, the administrating agencies for the SIMA, were consulted.

Compliance and Enforcement

Compliance is not an issue.

Contact

Michèle Dupont, International Trade Policy Division, Department of Finance, Ottawa, Ontario K1A 0G5, (613) 996-0629.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 98(1)(see footnote a) of the Special Import Measures Act, proposes to make the annexed Order Suspending Certain Provisions of the Special Import Measures Act.

Interested persons may make representations with respect to the proposed Order within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Director, International Trade Policy Division, Department of Finance, 140 O'Connor Street, Ottawa, Ontario K1A 0G5.

Ottawa, September 21, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

ORDER SUSPENDING CERTAIN PROVISIONS OF THE SPECIAL IMPORT MEASURES ACT

SUSPENSIONS

1. The application of the definition "arbitration body" and of paragraph (b) of the definition "non-actionable subsidy" in subsection 2(1) of the Special Import Measures Act is suspended with respect to all countries.

2. The application of the words "and subsection 31.1(1)" in subsection 31(6) of the Act is suspended with respect to all countries.

3. The application of section 31.1 of the Act is suspended with respect to all countries.

COMING INTO FORCE

4. This Order comes into force on the day on which it is registered.

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Regulations Amending the Special Import Measures Regulations

Statutory Authority

Special Import Measures Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see Order Suspending Certain Provisions of the Special Import Measures Act.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 97(see footnote b) of the Special Import Measures Act, proposes to make the annexed Regulations Amending the Special Import Measures Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Director, International Trade Policy Division, Department of Finance, 140 O'Connor Street, Ottawa, Ontario K1A 0G5.

Ottawa, September 21, 2000

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE SPECIAL IMPORT MEASURES ACT REGULATIONS

AMENDMENTS

1. The definitions "industrial research"(see footnote 1) and "precompetitive development activity"(see footnote 2) in section 2 of the Special Import Measures Regulations(see footnote 3) are repealed.

2. The headings before section 25.3 and section 25.3(see footnote 4) of the Regulations are repealed.

COMING INTO FORCE

3. These Regulations come into force on the day on which they are registered.

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Footnote a

S.C. 2000, c. 14, s. 47

Footnote b

S.C. 1999, c. 12, s. 51

Footnote 1

SOR/96-255

Footnote 2

SOR/96-255

Footnote 3

SOR/84-927

Footnote 4

SOR/95-26


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