./.WORLD TRADE
ORGANIZATIONS/CSS/W/53
14 March 2001
(01-1410)
Council for Trade in Services
Special SessionOriginal:  English/
French
COMMUNICATION FROM CANADA
Initial Negotiating Proposal on Telecommunication Services
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 pro posal 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, including in areas related to Canada’s ability to achieve its cultural policyobjectives.
A. I
NTRODUCTION
2. The rapid pace of technological innovation in the provision of telecommunication services is
transforming economies and impacting on societies. Canada and other countries that have liberalized
their telecommunication services markets have seen prices fall and new services quickly made
available to both business and consumers. The development and wide availability of affordable,
innovative and high-quality telecommunication services is a key challenge for many WTO Members.
3. Growing recognition by governments that competitiveness is increasingly dependant on
innovative and cost-effective telecommunications services has led to telecommunications deregulation
and to liberalization of the international trade environment, including most recently under the 1997
Agreement on Basic Telecommunications. In many countries, including Canada, the market for
telecommunications services is now characterized by the replacement of monopolies by dynamiccompetition, including from foreign suppliers.
4. Canada, like many other countries, has put in place a regulatory regime intended to stimulate
competition in the marketplace while making telecommunications services accessible and affordable
to all its citizens. As a consequence, Canada has among the lowest prices, and the highest overall
telephone penetration rates, in the world. Virtually all Canadian citizens and businesses have Internetservice available at prices that are among the lowest in the world, and high speed service will soon be
available to three quarters or more of Canadians.  This is helping to further the development and
expansion of e-commerce. As countries liberalize their telecommunication services markets, they can
expect to experience similar important economic and social benefits.
5. As the process of market liberalization continues and grows, the international market for
telecommunications services will continue to expand  rapidly, to the benefit of all WTO Members. The
telecommunications services sector in Canada is gr owing at three times the rate of the economy as aS/CSS/W/53
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whole, and liberalization of international telecommunications markets has created opportunities for
Canadian service suppliers in overseas markets. Canada also has a highly sophisticated
telecommunications equipment sector, which has seen its export opportunities increase in liberalized
telecommunications services markets as these make the necessary infrastructure investments to
introduce or expand service.
B. PROPOSAL
6. Canada promotes liberalization of markets for telecommunications services. Canada urges
those Members that have not made commitments in the area of basic telecommunications and
value-added telecommunications, or that have made limited commitments or commitments with long
phase-in periods, to make commitments and to accelerate liberalization.
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