RESTRICTEDWORLD TRADE
ORGANIZATIONS/C/W/163/Add.4/Corr.1
8 January 2002
(02-0091)
Council for Trade in Services
DEVELOPMENTS IN THE AIR TRANSPORT SECTOR SINCE THE CONCLUSION OF
THE URUGUAY ROUND
PART FIVE
Background Note by the Secretariat
Corrigendum
The following corrections should be made to the Canadian entries on pages 20 and 22 in the
Annex to S/C/W/163/Add.4.
On page 20 in Table A2 in the Notes column the existing phrase should be replaced by:
"The Governor in Council (federal Cabinet) has the power to increase the limit on foreign
ownership of voting shares applicable to all Canadian carriers.  Other types of foreign
ownership, including non voting shares of a Canadian carrier are permitted subject to
compliance with the Canada Investment Act and provided that effective control of the carrier
is by Canadians."
On page 22 in Table A3, in the National Legislation on Ownership  column the existing
phrase should be replaced by:
"The maximum foreign ownership in a Canadian airline is currently limited to 25.  The
Minister of Transport has announced that the Air Canada Public Participation Act will be
amended to remove the 15% limit on voting shares held in Air Canada by any person. Once
the legislation is passed, all carriers in Canada will be subject to the same regime.  Control ofa Canadian carrier must reside with "national interests".  For a Canadian domestic service, the
Minister may exempt the non-Canadian carrier from the licence condition requiring it to be
Canadian where the Minister considers it necessary or advisable in the public interest that a
domestic licence be issued to a non-Canadian carrier. The Minister does not have the power
to make a similar exemption for carriers operating international services."
Also on page 22 in the column Emergency Provisions  in Table A3 the insert should now read:
"The Emergency Preparedness Act in Canada provides the Government with the legislative
power to requisition aircraft in the event of an emergency."
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