CIIT Committee Report

Supplementary opinion of the Conservative Party of Canada

The Conservative Party of Canada is appreciative of the work of the analysts, clerk and staff of the Standing Committee on International Trade for their work in preparing this committee report on reform of the World Trade Organization (WTO). We are also appreciative of the witnesses who appeared to share their testimony and views during the meetings on this topic, and take questions from committee members.

Conservatives recognize the important role the WTO has when it comes to free and fair trade globally. The WTO also continues to serve an important role in dispute resolution as well as to reduce non-tariff trade barriers between countries. But as observed over the most recent years, the WTO can also be at times ineffective, resulting in some disputes facing a brick wall or stalling due to some challenges it has faced in performing its responsibilities. This has been seen in recent cases such as with the dispute settlement process via the WTO’s Appellate Body, as well as in finding a common ground solution via the TRIPS council on intellectual property rights around COVID-19 vaccines.

The COVID-19 pandemic has also introduced new challenges in trade, as Canada and many other countries experienced firsthand when it came to the procurement of PPE, sanitizing equipment, ventilators, and COVID-19 vaccines. As Canada still does not have the ability to domestically produce COVID-19 vaccines, we are at the whim of the goodwill of the European Union and the United States in authorizing the export of the vaccines which we purchased from producers shipping them from there. We saw these risks emerge at a heightened level when the European Union announced export controls on COVID-19 vaccines in January of 2021. At that time, all of Canada’s COVID-19 vaccines from Pfizer and Moderna were being shipped from facilities in the European Union.  While the Government of Canada has highlighted the work it is doing through the Trade and Health Initiative via the Ottawa Group, it must also work with the group – of which the European Union is a member – to reduce barriers to the export of COVID-19 vaccines.

We also heard from government officials at Global Affairs Canada regarding the definition of ‘developed’ versus ‘developing’ countries at the WTO, and the contention around how a country is classified as one or the other. At present, with no formal definition each member country can determine themselves on whether they are a ‘developed’ or ‘developing’ country. As the WTO itself states, identifying as a ‘developing’ country brings certain rights – including various provisions in certain WTO agreements which a country defining itself as ‘developed’ would not have.[1] The Government of Canada working with its partners at the WTO and through the Ottawa Group on how to better differentiate and define developing countries could play an important role in fairer trade globally.

In conclusion, Conservatives list the following recommendations, in addition to the ones listed in the main body of the report, for the Government to consider when it comes to reform of the World Trade Organization:

Recommendations

1.   That the Government of Canada expedite its work with the Ottawa Group to find solutions to ensure a fully functioning Appellate Body at the World Trade Organization.
2.   That the Government of Canada work with its partners to establish a set definition of ‘Developing’ and ‘Developed’ country at the World Trade Organization.
3.   That the Government of Canada, through the Trade and Health Initiative of the Ottawa Group, work to remove or reduce the duration of export controls which are placed by states on COVID-19 vaccines.