./.WORLD TRADE
ORGANIZATIONS/CSS/W/47
14 March 2001
(01-1403)
Council for Trade in Services
Special SessionOriginal:  English/
French
COMMUNICATION FROM CANADA
Initial Negotiating Proposal on Regulatory Transparency and Predictability
The attached communication has been received from the delegation of Canada with the
request that it be circulated to Members of the Council for Trade in Services.
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1. Canada reserves the right to modify this proposal at any time. This proposal does not prejudge
Canada’s position on other service sectors, nor any future offer on this or other sectors. This proposal
should be read in conjunction with the principles and objectives as outlined in Canada’s initial
negotiating proposal.
A. INTRODUCTION
2. The vast majority of service industry firms in Canada are small- and medium-sized enterprises
(SMEs). Many of these firms have only recently considered entering the international market and
formal barriers to trade are “potential” (in the sense that they may not have encountered them directly
yet). The availability of information required to enter a foreign market is often a significant problem.
The need to improve the transparency and predictability of the regulatory conditions under whichinternational business is conducted is perhaps the most consistent theme that emerges in the course of
consultation with Canadian business. For these firms the most significant barrier to trade is often lack
of information on the conditions related to:
• entering and operating in foreign markets;
• the procedures to be followed to comply with regulatory requirements in these
markets;
• the process available to seek changes to the regulatory environment; and
• the options available for input to or redress from regulatory changes.
3. The Government of Canada encourages transparency and predictability in regulatory policy in
recognition of the wide-ranging benefits that can result. While it is not the only objective, manyelements of the Government of Canada’s Regulatory Policy address directly, or otherwise encourage,
transparency. The Government of Canada requires that its regulatory authorities ensure that:
• Canadians are consulted, and that they have an opportunity to participate in
developing or modifying regulations and regulatory programs;S/CSS/W/47
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• a problem or risk demonstrably exists and that federal government intervention is
justified and that regulation is the best alternative;
• the benefits outweigh the costs to Canadians, their governments and businesses — in
particular, regulatory authorities must ensure that the limited resources available to
government are used where they do the most good;
• adverse impacts on the capacity of the economy to generate wealth and employment
are minimized and no unnecessary regulatory burden is imposed — in particular,
regulatory authorities must ensure that:
• information and administrative requirements are limited to what is absolutely
necessary and that they impose the least possible cost;  the special circumstances of
small businesses are addressed; and parties proposing equivalent means to conform
with regulatory requirements are given consideration.
• international and intergovernmental agreements are respected and full advantage is
taken of opportunities for co-ordination with other governments and agencies; and
• systems are in place to manage regulatory resources effectively — in particular,
regulatory authorities must ensure that:
• the Regulatory Process Management Standards are followed compliance and
enforcement policies are articulated, as appropriate; and resources have been
approved and are adequate to discharge enforcement responsibilities effectively and
to ensure compliance where the regulation binds the government.
4. Through these requirements, Government of Canada regulatory policy ensures a high level of
transparency and predictability. Transparency has also become a central principle in the multilateraltrading system. The WTO agreements contain a wide range of provisions covering transparency.
Indeed, the GATS alone contains a number of provisions in this regard including the preamble to the
agreement, Articles III, IV, VI and several other elements of the agreement (Reference Paper on Basic
Telecommunication and Disciplines for domestic regulation in the accountancy sector).
B. P
ROPOSAL
5. Regulatory policy has evolved since the conclusion of the Uruguay Round. A variety of
approaches to transparency reflecting different governmental structures, traditions and capacity are in
place in Member states. In the course of the GATS negotiations, Canada will wish to explore current
best practices with Members with respect to regulatory transparency and determine whether, on the
basis of developments in this area, existing GATS provisions in this area can be enhanced.
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