WTO gives Canada high marks for liberalisation

The World Trade Organisation (WTO) has given Canada high marks for its generally liberal line on trade, but has pointed to some areas such as agriculture and steel that were still protected by import barriers.

"Its trade regime is among the world's most transparent and liberal, notwithstanding barriers to imports in a few albeit important sectors," the Geneva-based body said in a review of Ottawa's trade policies over the weekend.

The report, the first on Canada since December 2000, said the country's "sound economic policies" and its "outward-looking" trade policies had helped sustain the country's economic growth despite the global economic slowdown.

Growth was four per cent over the first half of 2002, although it appeared to have slowed somewhat over the second six months, it noted.

The WTO listed agriculture, textiles and clothing, steel, telecommunications, audiovisual, air and maritime transport and insurance as areas still subject to significant support, although change was underway in several of them.

"Carrying on additional reforms would help reduce remaining barriers to trade and investment and improve resource allocation," the WTO said.

It said that dairy products and poultry were often protected by import tariffs in excess of 200 per cent, and that overall, agriculture remained a "large recipient" of financial assistance.

Decline in the Canadian steel industry had triggered an increase in protection and this was reflected in the high number of anti-dumping probes launched against rivals, the WTO said.

Under WTO rules, countries which suspect companies from another state of exporting at prices below cost, or dumping, can impose additional import duties while the case is being investigated.