The Canadian government has introduced legislation to Parliament that
will protect Canadian economic sectors from unfair import competition
from China, now that the Asian economic giant has joined the World
Trade Organization.
The legislation allows Canada to impose safeguards and anti-dumping
duties if cheap imports from China threaten to undermine Canadian
industries.
As part of the deal worked out to allow WTO entry Dec. 11, 2001, China
agreed that other countries could give themselves special protection
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from cheaper Chinese competition, at least until China’s economy is
fully integrated into the global economy.
Federal trade minister Pierre Pettigrew said the legislation also marks
Canada’s official recognition of China’s status as a WTO member, giving
Canadian exporters greater access to one of the world’s largest markets.
“China is Canada’s fourth largest trading partner and has one fifth of
the earth’s population,” Pettigrew said when he introduced the
legislation.
“These legislative measures will allow Canada to take full advantage of
the new opportunities that will arise from China’s accession to the WTO
while ensuring that trade with the new member remains fair and
equitable.”
Last year, the $15 billion trade between the two countries favoured
China four to one. The government says new WTO trade rules will change
the balance.
“Agricultural products are among our largest exports to China and the
sector will benefit greatly from liberalization,” said a foreign
affairs department statement Feb. 7 on the benefits of China’s WTO
entry.
The quantitative restriction on canola seed ends and the import duty
falls to nine percent from 12 percent this year.
Chinese imports of durum will soar more than 30-fold to 8.5 million
tonnes and Canada will have a chance to fill a greater portion of the
growing market, according to government trade analysts.
Tariffs on frozen beef will fall from 39 percent to 12 percent by 2004.
