Canada’s support of G20 world trade and investment response to COVID‑19

The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, participated in the G20 Trade and Investment Ministerial Meeting on September 22, 2020. At the meeting, Minister Ng committed to making public Canada’s implementation of the G20 Action Plan on Trade and Investment. The Action Plan was forged in response to the COVID‑19 crisis and endorsed by G20 trade and investment ministers at their May 2020 meeting. The following information on Canadian COVID‑19 initiatives is in line with Canada’s commitment to transparency and accountability in implementing this action plan.

On this page

• Short‑term collective actions
• Longer‑term collective actions

Short‑term collective actions

1.1 Trade regulation

Section 1.1.1

G20 action item

Ensure that any emergency trade measures designed to tackle COVID‑19, including export restrictions on vital medical supplies and equipment and other essential goods and services, if deemed necessary, are:

• targeted, proportionate, transparent and temporary
• reflect our interest in protecting the most vulnerable
• do not create unnecessary barriers to trade or disruption to global supply chains
• are consistent with WTO rules

Canada’s response

• Canada has not implemented any export restrictions or prohibitions in response to the pandemic. Canada discourages the use of such measures.
• Measures taken by Canada in response to COVID‑19 are targeted, proportionate, transparent, temporary, do not create unnecessary barriers to trade or disruption to global supply chains, and are consistent with WTO rules. Among the measures:
  • Canadian Food Inspection Agency: COVID-19 information for industry
  • Canada Border Services Agency: Certain Goods Remission Order
  • Canada Border Services Agency: Emergency Goods COVID‑19

Section 1.1.2

G20 action item

Refrain from introducing export restrictions on agricultural products, including on products purchased for non‑commercial humanitarian purposes; avoid unnecessary food stockpiling, without prejudice to domestic food security, consistent with national requirements.

Canada’s response

• During the pandemic, Canada has not implemented any export restrictions or prohibitions on any agricultural products, including those for non‑commercial, humanitarian purposes. Canada discourages the use of such measures.
• On January 21, 2021, Canada signed a Joint Statement, along with 53 other members, committing to not impose export restrictions on non-commercial, humanitarian purchases by the World Food Programme.
• Canada has avoided unnecessary stockpiling of food that could undermine global food security.
• Canada has demonstrated its commitment to avoiding export restrictions and avoiding unnecessary stockpiling, as stated in various joint statements, including the Canada‑led statement circulated in the WTO’s General Council entitled “Responding to the COVID‑19 Pandemic with Open and Predictable Trade in Agricultural and Food Products.”
• Canada has submitted notifications of its trade‑related measures to the WTO, and encourages other members to submit notifications of their trade‑related measures and to also work with the WTO Secretariat to ensure that the information compiled in the WTO’s online trackers is complete and accurate.
• To date, Canada has only implemented trade‑facilitative measures to respond to the pandemic, including expediting access to necessary goods, waiving import tariffs on certain goods imported to combat COVID‑19 and authorizing the manufacture of patented inventions to respond to the public health emergency, through the COVID-19 Emergency Response Act (which amends the Patent Act).

Section 1.1.3

G20 action item

Consider exempting humanitarian aid related to COVID‑19 from any export restrictions on exports of essential medical supplies, medical equipment and personal protective equipment, consistent with national requirements.

Canada’s response

• Canada has not implemented such export restrictions in response to the pandemic.
• Canada mitigates against the unintended consequences of sanctions through legislated exceptions for certain humanitarian activities such as delivery of food, medicine and medical supplies.
• Canada has taken steps to enhance and expedite the review of applications for permits and certificates where applicants have identified a link to the global health crisis.

1.2 Trade facilitation

Section 1.2.1

G20 action item

Accelerate the implementation of the WTO Trade Facilitation Agreement, to the extent possible, particularly the provisions which are especially critical during the pandemic, such as Article 7.1 (Pre‑arrival Processing), Article 7.3 (Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges), and Article 7.8 (Expedited Shipments).

Canada’s response

• Canada has fully implemented the WTO Trade Facilitation Agreement (TFA).
• Canada has been coordinating efforts among Ottawa Group members to share experiences on trade facilitation measures adopted in response to the COVID‑19 pandemic and identify how members can support the implementation of the WTO Trade Facilitation Agreement.
• Canada facilitated discussions with Ottawa Group members to identify ways to modernize WTO members’ customs procedures and promote best practices, including the use of digital solutions, as members continued to implement the TFA in advance of the October meetings of the WTO Committee on Trade Facilitation.
• During the October 2020 meeting of the WTO Committee on Trade Facilitation, Canada and other Ottawa Group members made presentations to share best practices and lessons learned on the implementation of the TFA with the broader WTO membership.

Section 1.2.2

G20 action item

Speed up and streamline customs procedures, in line with the WTO Trade Facilitation Agreement, and encourage the use of electronic documentation and processes—including the use of smart applications–where possible and practical.

Canada’s response

• Implementation of the Canada Border Services Agency’s (CBSA) Single Window Initiative eliminated the need to provide paper documents in most instances, with some exceptions.
• The CBSA’s e‑Longroom initiative created a new process for providing electronic copies of release documents. Exceptional cases to electronic documentation include hazardous waste and CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) and Kimberley certificates, whereby hard copies of permits must still legally be provided to the CBSA, in part due to verification of security features. The e‑Longroom process still requires that CITES and Kimberley permits be submitted in hard copy. E‑Longroom will remain in place following the pandemic.

Section 1.2.3

G20 action item

Reduce sanitary and technical barriers to trade by encouraging greater use of relevant existing international standards and ensuring access of information on relevant standards is not a barrier to enabling production of PPE and medical supplies.

Canada’s response

• Health Canada implemented COVID‑19 measures to expedite access to disinfectants, hand sanitizers and personal protective equipment to help limit the spread of COVID‑19.
• In light of the unprecedented demand and urgent need for products that can help limit the spread of COVID‑19, Health Canadais facilitating access to products by temporarily easing some regulatory requirements (i.e. licensing and bilingual labelling) as an interim measure. Under this measure, Health Canada will allow certain products to be sold, including:
  • products that are already authorized for sale in Canada but are not fully compliant with Health Canada requirements (e.g. English-only labelling, different packaging from what was authorized)
  • products that are not authorized for sale in Canada, but are authorized or registered in other jurisdictions with similar regulatory frameworks and quality assurances (e.g. U.S., EU)

Section 1.2.4

G20 action item

Share necessary information within the G20 regarding medical suppliers, as appropriate and according with applicable national legislation, so as to facilitate trade deals.

Canada’s response

• Canada has regrouped all available information and useful resources on medical suppliers. More specifically, the website provides information on supply and procurement, manufacturing scale-up and re-tooling, and research and funding opportunities.
• For more details visit: COVID-19: Mobilizing industry to provide medical supplies.

Section 1.2.5

G20 action item

Encourage G20 ministers of economy and ministers of industry to expand production capacity for medical devices and components and personal protective equipment, consistent with public health guidance.

Canada’s response

• The Government of Canada has expanded domestic production capacity for medical devices and components, and PPE, through a call to action to Canadian manufacturers, resulting in letters of intent/contracts with various manufacturers.
• This expanded production was facilitated by Health Canada’s regulatory Interim Order Respecting the Importation and Sale of Medical Devices for Use in Relation to COVID‑19.
• For more details visit: COVID-19: Mobilizing industry to provide medical supplies.

Section 1.2.6

G20 action item

Encourage G20 ministers of digital services to promote the application of online services and e‑commerce, in accordance with national laws and regulations, to facilitate the flow of essential goods and services during the pandemic.

Canada’s response

• Canada continues to emphasize the important role that digital trade and online services can play in maintaining international trade stability and predictability, in particular through its ongoing work under the WTO Joint Statement Initiative (JSI) on Electronic Commerce. Canada also continues to emphasize the important role that transparent and predictable conditions can play in fostering international investment, in particular through its ongoing work under the WTO JSI on Investment Facilitation for Development.
• Canada is pursuing an inclusive approach to trade to ensure that the benefits and opportunities of trade and investment are more widely shared, which it seeks to achieve through obligations in the digital trade chapters of its free trade agreements (FTAs). This approach is informed by ongoing dialogue with a broad range of Canadians, including under-represented groups in international trade (women, SMEs, Indigenous peoples).
• Canada includes data localization provisions in the digital trade/e‑commerce chapters of its FTAs that will ensure that companies can move data across borders in a reliable and secure manner, while ensuring that legitimate privacy and security rights are protected.
• Through Canada’s ongoing work under the WTO JSI on Electronic Commerce, Canada continues to support efforts related to WTO reform, notably vis‑à‑vis the theme of modernizing WTO trade rules, given the growing importance of the digital economy as a platform for conducting trade and economic activity across all sectors of the economy. The digital economy and the digitalization of international trade also creates new opportunities to promote inclusive economic growth, including by eliminating distances, increasing connectivity, reducing transaction costs and facilitating economic participation of under‑represented groups (e.g. small and medium‑sized enterprises, women, Indigenous peoples, etc.).

Section 1.2.7

G20 action item

Encourage our governments to facilitate the resumption of essential cross‑border travel in accordance with national laws and regulations, while safeguarding public health, in line with our efforts to combat the pandemic as well as to minimize the socio‑economic impacts of COVID‑19.

Canada’s response

• The Government of Canada took steps early on in the pandemic to ensure that essential cross‑border travel could continue in order to protect Canada’s food security and supply chains.
• A series of orders in council have been implemented in response to COVID‑19 that outlines a list of acceptable purposes for continuing to travel to and work in Canada. These include work within sectors such as health care, energy and utilities, transportation, and manufacturing. Furthermore, those approved for work authorization, either before or during the pandemic, are eligible to work in Canada.
• Canada was also part of the group of countries that endorsed the May 1, 2020, Joint ministerial statement on action plans to facilitate the flow of goods and services as well as the essential movement of people.

Section 1.2.8

G20 action item

Support the efforts of international organizations (WTO, OECD, FAO, WFP, etc.) to analyze the impacts of COVID‑19 on global agricultural supplies, distribution chains and agri‑food production and trade.

Canada’s response

• At the WTO, Canada has supported work analyzing the impacts of COVID‑19 on agricultural supply chains. This included leading the development of the WTO General Council statement titled “Responding to the COVID-19 Pandemic with Open and Predictable Trade in Agricultural and Food Products” and co‑sponsoring a Cairns Group COVID-19 initiative on food security. Canada has also supported the WTO Secretariat in compiling a list of COVID-19 measures related to agriculture. These initiatives underline the importance of and call for analysis and coordination of international organizations to analyze the impact of COVID‑19 on global agricultural supply chains.
• At the OECD, Canada has supported policy briefs issued in response to urgent COVID‑19 issues, for example, relating to global food systems, global agricultural supply chains, and COVID‑19 issues and policy responses.
• Going forward, Canada has also supported an OECD work plan for the 2021‑22 biennium that mainstreams COVID‑19 issues across policy research areas related to agriculture. Canada has also supported providing the OECD Secretariat with considerable flexibility to shift additional resources towards future COVID‑19 work, if needed.

1.3 Transparency

Section 1.3.1

G20 action item

Share experiences and best practices on measures that countries have put in place at their borders, with points of contact to be identified for each of our governments, within a reasonable timeline.

Canada’s response

• Together with other Ottawa Group members and WTO Reform group partners, Canada believes that ensuring maximum transparency of trade‑related measures introduced in response to the pandemic or its economic effects must be a priority. The current level of notifications and transparency of such measures is not sufficient. Therefore, Canada and the Ottawa Group members are ensuring that their notification obligations are fully met and that their measures are submitted for notification as far in advance as practicable; they also call on other WTO members to do the same in order to ensure that transparency is provided for all trade‑related measures taken in response to COVID‑19.
• Canada actively coordinates with like‑minded partners in tracking COVID‑19‑related trade measures. In particular, Canada has coordinated with a number of G20 Trade and Investment Working Group participants in such efforts.
• Canada’s point of contact for best practices on border measures:

Global Affairs Canada: Canada’s Notification authority and enquiry point
Technical Barriers and Regulations Division
111 Sussex Drive,
Ottawa, Ontario
K1A 0G2
enquirypoint@international.gc.ca
343‑203‑4273
613‑943‑0346

Section 1.3.2

G20 action item

Provide notification of trade‑related measures, including customs and other border operations, introduced in response to COVID‑19, in accordance with our WTO obligations.

Canada’s response

• Canada has taken the approach of providing notifications exceeding WTO obligations.
  • COVID‑19: Measures affecting trade in goods
  • COVID‑19: Measures affecting trade in services
  • COVID‑19: Measures regarding trade‑related intellectual property rights
  • Ad hoc report on Covid-19 measures taken by Canada in the agricultural sector (G/AG/GEN/167/Rev.1)

1.4 Operation of logistics networks

Section 1.4.1

G20 action item

Encourage G20 transport ministers to enhance air, land and marine connectivity and work with the private sector to prioritize the movement of essential goods by facilitating access to freight so as to achieve critical mass to maintain connectivity and safeguard jobs.

Canada’s response

Transportation and supply chain services are considered as “essential travel” when restrictions on non-essential travel are implemented at the Canada‑U.S. border.

Air transportation

• In response to COVID‑19 as it relates to the air sector, Transport Canada (TC) has brought into force new legal requirements—such as mandatory health checks, temperature screening, the use of face coverings—to ensure workers and passengers are protected.
• Canadian provinces and territories have introduced enhanced public health and safety protocols and rules, such as physical distancing in public areas, including in airports.

Marine transportation

• Guidance was provided to the marine community on how to keep employees safe while moving goods safely and efficiently through Canada’s ports.
• In addition, measures for marine industry workers were introduced, including:
  • extension of certification period of marine personnel certificates
  • mobility of asymptomatic workers in the marine sector, which includes crew change and shore leave for seafarers

Road transportation

• Transport Canada published a number of federal safety guidance documents for the road transportation sector alongside other measures to support the safe and sustained movement of people and goods by road during the pandemic. This included a regulatory exemption, issued under the Commercial Vehicle Drivers Hours of Service Regulations allowing for extended commercial vehicle hours of service from March 24, 2020, to April 30, 2020. Case‑by‑case targeted exemptions could be issued in the future in the context of COVID‑19.
• An employment confirmation letter template for the trucking/automotive industry was developed to support the movement of essential road transportation workers within and across borders.
• Working with other federal departments and provincial/territorial governments, Transport Canada issued a Federal Guidance for School Bus Operations during the COVID‑19 Pandemic, which includes recommended measures to help minimize the spread of COVID‑19 in the context of school bus operations, which protect both students and drivers.
• Transport Canada continues to coordinate with road transportation industry associations, other government departments, provincial/ territorial road safety administrators, and the U.S. Department of Transportation to address key issues (for example, facilitating re‑opening/access to rest stops for commercial drivers).

Other measures

• The Government of Canada established a core definition of “essential transportation workers,” which encompasses those who are important for the movement of goods and people (for example, truck drivers and crew on any plane, train, or marine vessel).
• The government provided an exemption to an order to self‑isolate for 14 days for cross‑border travel for essential workers.
• Through the Council of Ministers Responsible for Transportation and Highway Safety, the government issued federal/provincial/territorial guiding principles for risk reduction and personal protective equipment in the transportation system.

Section 1.4.2

G20 action item

Encourage G20 transport ministers to facilitate the increase of air cargo capacity by temporarily converting passenger aircraft into freighters to carry goods, in accordance with applicable safety and security standards.

Canada’s response

Civil Aviation Safety Alert (CASA) No. 2020-04:

• Issue 01 was published on April 14, 2020, detailing the operational, personnel and airworthiness requirements for the transport of cargo in the passenger compartment of commercial aircraft in accordance with applicable safety and security standards. This CASA expired on August 31, 2020, and was replaced with Issue 02.
• Issue 02 expanded requirements based on feedback from all stakeholders, and came into force on September 1, 2020. It expires on July 31, 2021.

Section 1.4.3

G20 action item

Encourage G20 transport ministers to issue publicly accessible information regarding enforcement procedures for vehicles, drivers, cargo, or passengers and travelers, especially for quarantined areas, within a reasonable timeline and as far as practicable.

Canada’s response

• Information is made publicly accessible on the CBSA website, which includes information for essential workers crossing the border. This includes information about quarantined areas and required practices, as well as a link to the ArriveCANApp.

Section 1.4.4

G20 action item

Encourage G20 transport ministers to abide by international practices and guidelines to ensure the movement of goods through maritime channels, in accordance with national laws and regulations.

Canada’s response

• In a March 30, 2020, letter to the Chair of the International Maritime Organization (IMO) Council, Canada indicated its support for the IMO’s response to the COVID‑19 pandemic, which included the facilitation of the movement of goods. Canada is an active member of the IMO Council and encourages members to follow IMO directives.
• Transport Canada supports the actions taken to date by the IMO Secretary General, particularly efforts to work with member states, industry partners and intergovernmental and nongovernmental organizations to facilitate maritime trade and protect seafarers.

1.5 Support for micro, small, and medium sized enterprises (MSMEs)

Section 1.5.1

G20 action item

Call for international organizations to prepare in‑depth reports, within their mandates, on the disruption of MSME global value chains caused by the pandemic.

Canada’s response

• WTO Statement on COVID‑19 and the Multilateral Trading System ‑ May 5, 2020: Parties to intensify efforts to support their ability to make a contribution to economic recovery.
• Statement on COVID‑19 by APEC Ministers Responsible for Trade ‑ May 5, 2020: Senior officials to develop a coordinated approach to collecting and sharing information on policies and measures, including stimulus packages for the immediate responses to the economic crisis and long‑term recovery packages, which could help respond to the economic challenges brought on by the pandemic.
• WTO Statement on Highlighting the Importance of MSMEs in the Time of COVID‑19 - May 26, 2020: Statement calls for the careful monitoring of all MSME‑related developments and for further action to support MSMEs’ involvement in international trade and ensure that supply chains remain open and connected. Parties committed to join with other international organizations and stakeholders to explore solutions and share good practices to facilitate trade, accelerate efforts towards trade digitalization, including access to digital tools, and improve MSMEs’ access to trade finance and to trade‑related information and opportunities through online platforms.
• APEC Ministers Responsible for Trade Virtual Meeting Joint Statement 2020 ‑ July 25, 2020: Statement urges senior officials to establish a digital platform for information exchange.
• OECD policy paper on impacts of COVID‑19 on SMEs in Canada. Canada appreciates the OECD’s work in this area, which identifies impacts on SMEs in Canada and policy responses.

Section 1.5.2

G20 action item

Encourage enhancement of communication channels and networks for MSMEs, including through deepened collaboration with the private sector.

Canada’s response

• Development and continual updates to Canada’s COVID‑19 Economic Response Plan, which provides Canadian businesses, including MSMEs, with a direct channel to the work the Government of Canada is undertaking to help businesses facing hardship because of the COVID‑19 outbreak.
• Establishment of a 4‑week hotline service (May 25 to July 3) called the Business Resilience Service - May 25, 2020: The service aimed to help entrepreneurs and small-business owners with financial planning advice.
• Partnership with the People Outside Safely Together (POST) Promise program - June 10, 2020: An initiative to help businesses across Canada reopen safely by following key public health actions to help prevent the spread of COVID‑19.
• June 2020 Statement of the Ottawa Group: Focusing Action on COVID‑19. Action Item 6: Deepen Engagement with Stakeholders. Ottawa Group ministers instructed officials to explore how to best pursue intensified engagement with stakeholders in order to better inform policymaking. In response, Canada’s Minister for Small Business, Export Promotion and International Trade has convened meetings of business stakeholders to discuss the impacts of COVID‑19 on the trading system, naming a co‑convenor charged with ensuring a small business perspective is incorporated into the discussions.
• Investment example: On July 17, 2020, the Government of Canada invested $4 million in FedDev Ontario, a regional support agency, to support women‑led businesses to rebuild and reopen in southern Ontario. This investment, conducted through the Regional Relief and Recovery Fund (RRRF), the Northumberland CFDC and the Windsor‑Essex Economic Development Corporation, will deliver the “Rebuild Reopen Revive” initiative to support women‑led small‑ and medium‑sized enterprises in rural and urban communities across southern Ontario. Over 700 women‑led businesses will be supported through this initiative.
• The Black Entrepreneurship Program(BEP) is a partnership between the Government of Canada, Black‑led business organizations, post‑secondary or other accredited educational institutions and financial institutions. With an investment of up to $221 million over 4 years, the BEP will help Black Canadian business owners and entrepreneurs grow their businesses and succeed now and in the future. The BEP is comprised of 3 initiatives:
  • National Ecosystem Fund
  • Black Entrepreneurship Knowledge Hub
  • Black Entrepreneurship Loan Fund
• As of October 30, 2020, over $2.4 billion had been committed in specific support to Indigenous and northern communities and organizations. Of this amount:
  • $34.3 million for territorial businesses through CanNor’s Regional Relief and Recovery Fund
  • $15 million for CanNor’s Northern Business Relief Fund
  • $306.8 million for interest‑free loans and non‑repayable contributions to help Indigenous SMEs
  • $117 million to support community‑owned and micro‑businesses through the Indigenous Community Business Fund
  • $16 million to support Indigenous tourism businesses under the COVID‑19 Indigenous Tourism Stimulus Development Fund
• On May 16, 2020, the Government of Canada announced that it would provide $15 million in additional funding to support women entrepreneurs through the Women Entrepreneurship Strategy (WES). This money will go directly to select organizations that are currently WES Ecosystem Fund recipients and will help women entrepreneurs through the COVID‑19 pandemic.

Longer term collective actions

2.1 Supporting the multilateral trading system

Section 2.1.1

G20 action item

Promote the necessary reform of the WTO to improve its functioning, and support the role of the multilateral trading system in promoting stability and predictability of international trade flows.

Canada’s response

• Canada continues to demonstrate leadership in the Ottawa Group on WTO reform, which brings together like‑minded WTO members in the pursuit of finding ways to improve and strengthen the organization. On June 15, Canada hosted a virtual ministerial meeting of the Ottawa Group. Ottawa Group ministers endorsed a joint statement, Focusing Action on COVID‑19, which included concrete trade policy actions to support an inclusive, sustainable and resilient recovery and promote thinking on what trade rules should be adapted or developed to guide collaborative policy responses to future global crises.
• Since December 2019, the WTO’s Appellate Body (AB) has been unable to hear new appeals due to a loss of quorum, the result of the United States’ blocking of new appointments to the AB. In the light of the AB impasse, Canada and 23 other WTO members have established the Multi‑party Interim Appeal Arbitration Arrangement (MPIA). It was formally notified to the WTO Dispute Settlement Body (DSB) on April 30. The MPIA allows binding two‑stage dispute settlement between willing members and it is in place only until the AB is operational again. The MPIA became fully operational on July 31 with the notification to the DSB of the pool of 10 arbitrators.

Section 2.1.2

G20 action item

Continue the discussion on how the G20 can support work at the WTO, including under the Riyadh Initiative on the Future of the WTO.

Canada’s response

• Canada has participated actively in the discussions under the Riyadh Initiative on the Future of the WTO, convened by the Saudi presidency.

Section 2.1.3

G20 action item

Endeavour to strengthen transparency and notify the WTO of any trade-related measures taken, in accordance with our WTO obligations.

Canada’s response

• In the context of the WTO, there are the 2 Market Access Committee notifications (G/MA/W/145 and G/MA/W/153) on reducing import costs for medical supplies, a Technical Barriers to Trade notification on labelling flexibility (G/TBT/N/CAN/609), and a Trade Policy Review Body transparency document, “COVID‑19: Transparency of trade related measures,” drafted by the EU (RD/TPR/1170) and co‑sponsored by Canada.

Section 2.1.4

G20 action item

Work together to deliver a free, fair, inclusive, non‑discriminatory, transparent, predictable, and stable trade and investment environment and to keep our markets open.

Canada’s response

• Canada’s engagement in the G20 Trade and Investment Working Group, the Ottawa Group on WTO Reform and the Ministerial Coordination Group on COVID‑19 are designed to further this objective. Canada continues to emphasize the important role that transparent and predictable conditions can play in fostering international investment, in particular through its ongoing work under the WTO Joint Statement Initiative on Investment Facilitation for Development.
• Canada has successfully advanced an inclusive approach to trade in its recently modernized FTAs with Chile (entered into force February 2019) and Israel (entered into force September 2019). In both cases, Canada was successful in securing agreement for a dedicated chapter on trade and gender, which is currently being implemented. Canada is also implementing activities under the SME chapters for the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (entered into force December 2018), the modernized Canada‑Israel FTA, and the Canada‑U.S.‑Mexico FTA (entered into force July 2020).
• At its first joint committee meeting in September 2018, Canada and the European Union (EU) agreed to 3 recommendations under the Canada‑EU Comprehensive Economic and Trade Agreement (CETA) on trade and gender, SMEs, and trade and climate change. These recommendations are currently being implemented.
• Canada is advancing its inclusive approach to trade in ongoing negotiations with the Pacific Alliance and Mercosur, including by advancing dedicated chapters and provisions on gender, Indigenous peoples, and SMEs.
• On August 4, 2020, Canada, Chile and New Zealand signed a new Global Trade and Gender Arrangement, under which the 3 countries will work together to share best practices and promote gender equality, including in international organizations such as the World Trade Organization.

Section 2.1.5

G20 action item

Work to ensure a level playing field to foster an enabling business environment.

Canada’s response

• Canada’s engagement in the G20 Trade and Investment Working Group, the Ottawa Group on WTO Reform and the Ministerial Coordination Group on COVID‑19 are designed to further this objective.
• Canada actively participated in the July 2020 meeting of the Global Forum on Steel Excess Capacity.

Section 2.1.6

G20 action item

Reaffirm the importance of the interface between trade and digital economy, and note the ongoing discussions under the Joint Statement Initiative on Electronic Commerce and the Moratorium on Customs Duties on Electronic Transmissions, and reaffirm the need to reinvigorate the WTO Work Programme on Electronic Commerce.

Canada’s response

• Canada continues to be an active participant in the WTO JSI on Electronic Commerce negotiations by participating in virtual discussions with other members, and continues to advocate for, and emphasize the importance of, the Moratorium on Customs Duties and the Work Programme on Electronic Commerce.

Section 2.1.7

G20 action item

Explore COVID‑19-related WTO initiatives to promote open and more resilient supply chains, and expand production capacity and trade in the areas of pharmaceutical, medical and other health‑related products.

Canada’s response

• On June 15, 2020, Ottawa Group ministers endorsed a joint statement, Focusing Action on COVID‑19, which included concrete trade policy actions in response to COVID‑19. One of the action items pertains to a possible plurilateral initiative on medical devices.
• At the 6th ministerial meeting of the Ottawa Group on November 23, Ministers endorsed a communication on trade and health that was presented at the WTO’s General Council in December 2020. The communication outlines potential elements to be included in a trade and health initiative, including shorter‑term objectives such as unilateral commitments to avoid the use of export restrictions, and potential longer‑term objectives such as negotiating permanent tariff reductions for medical supplies.

2.2 Building resilient supply chains

Section 2.2.1

G20 action item

Support the development and sharing of best practices, specifically in terms of measures that could be taken during a global crisis to support expanding production and trade in essential goods and services, including digital trade/e‑commerce.

Canada’s response

• Canada has been convening regular meetings of the Ministerial Coordination Group on COVID‑19 and the Ottawa Group on WTO Reform, both at the ministerial and working levels.
• On June 15, 2020, Ottawa Group ministers instructed officials to prioritize and accelerate work on the Joint Statement Initiative (JSI) on e‑commerce, including through informal and virtual discussions, ahead of the rescheduled the 12th Ministerial Conference (MC12) in 2021, including through the development of a consolidated negotiating text by no later than the end of 2020. Ministers emphasized the importance of supporting the efforts of the co‑convenors of the JSI on e‑commerce. JSI co-conveners (Japan, Australia and Singapore) presented a consolidated text at a plenary meeting on December 10, 2020.
• Canada, along with 23 WTO members, signed a joint statement to reinforce international cooperation on trade in agricultural and agri‑food products. The signatories agreed that emergency measures related to COVID‑19 for agricultural and agri‑food products must be targeted, proportionate, transparent, temporary and consistent with WTO rules. Canada continues to work with international partners to ensure that safe, affordable and nutritious food is accessible to Canadians and people around the world.

Section 2.2.2

G20 action item

Strengthen cooperation between authorities responsible for the regulation of trade, including customs authorities, with regard to the issues relating to electronic document management.

Canada’s response

• Canada appreciates the work of the World Customs Organization (WCO) in launching a special section of its website to address customs‑related COVID‑19 issues. The WCO has issued reference guides for pandemic-related customs issues such as PPE tariff classifications, and has provided guidance on how customs authorities can help reduce the importation of counterfeit PPE goods. Lastly, the WCO has noted that in response to the increase in imported counterfeit PPE, a number of jurisdictions have imposed export controls and a medical device licensing framework that apply to the trade of such products.
• Canada recognizes that cross‑border supply chains are vital to ensuring the continued flow of goods, including food and medical supplies, for all Canadians. The CBSA and its federal partners are working with commercial stakeholders to ensure that commercial traffic is not impeded during COVID‑19. The CBSA has urged carriers who do not already get electronic notices to sign up as soon as possible in order to reduce document handling at primary inspection lines as a safety measure during COVID‑19.

Section 2.2.3

G20 action item

Ensure the transparency and availability of trade‑related information and global market information useful to MSMEs, noting inputs from the Business 20.

Canada’s response

• Development of and continual updates to Canada’s COVID‑19 Economic Response Plan, which provides all Canadian businesses, including MSMEs, with a direct channel to the work that the Government of Canada is undertaking to help businesses facing hardship because of the COVID‑19 outbreak.

Section 2.2.4

G20 action item

Encourage connection and policies to strengthen cooperation between multinational corporations and MSMEs, noting inputs from the Business 20.

Canada’s response

• On July 15, 2020, Minister of Small Business, Export Promotion and International Trade Mary Ng and Shopify, a Canadian multinational e‑commerce company, launched “Go Digital Canada” to bring thousands of small businesses online and help them adapt to a digital economy. Go Digital Canada will support the digitization of businesses in Canada, whether business‑owners are new to e‑commerce or looking to scale their existing business.
• Go Digital Canada is a central resource hub that aims to make it easier for Canadian entrepreneurs to get online and grow their business with confidence through support resources and tools offered by Shopify and its ecosystem of partners and experts.

Section 2.2.5

G20 action item

Encourage G20 governments to establish voluntary guidelines that would allow, in the event of a global health crisis, essential cross‑border travel, including essential business travel, on an exceptional basis, in accordance with national laws and regulations and without undermining efforts to safeguard public health.

Canada’s response

• Information is made publicly accessible on the CBSA website, which includes information for essential workers crossing the border. This includes information about quarantine areas and practices, as well as a link to the ArriveCANApp.

2.3 Strengthening international investment

Section 2.3.1

G20 action item

Recalling the voluntary G20 Guiding Principles for Global Investment Policymaking, share information on actions taken to strengthen international investment for sustainable development.

Canada’s response

Financing for Development in the Era of COVID‑19 and Beyond Initiative

• On May 28, 2020, the prime ministers of Canada, Jamaica, and the Secretary‑General of the United Nations launched the Financing for Development in the Era of COVID‑19 and Beyond Initiative. The launch event brought together world leaders at the United Nations, who called for urgent action and creative solutions to address the socio‑economic impacts of COVID‑19 and finance recovery efforts.
• The initiative builds on and feeds into global processes seeking to manage the socio‑economic crisis caused by the pandemic, including those initiated by the G7, G20 and OECD, work done at international financial Institutions, the Finance in Common Summit, and the United Nations Financing for Development process.
• Following the launch, 6 discussion groups worked over the summer to identify some 250 concrete policy options that could inform the actions of all stakeholders in overcoming the crisis and steer the recovery towards long‑term resilience and the attainment of the 2030 Agenda for Sustainable Development.
• The menu of policy options was further refined to reflect the views expressed by finance ministers from all continents following the first‑ever Meeting of Finance Ministers at the United Nations, held on September 8, 2020. On September 29, the prime ministers of Canada, Jamaica, and the Secretary‑General of the United Nations co‑convened world leaders a second time to consider the work done to date and to maintain the momentum behind a coordinated global economic recovery effort. Canada and Jamaica will continue to co‑lead this initiative, including any high‑level follow‑up meeting planned for 2021.

Other initiatives

• The Tri Hita Karana (THK) Roadmap for Blended Finance establishes a shared value system and terms of reference among international stakeholders (donors, development finance institutions, international financial institutions, private sector, civil society organizations, think tanks) for use of blended finance to support the Sustainable Development Goals. The THK builds upon the OECD Development Assistance Committee (DAC) Blended Finance Principles that were endorsed by DAC members in 2017. The THK is coordinated and facilitated by the OECD Development Co-operation Directorate (DCD), which supports the work of the DAC.  Global Affairs Canada co‑chairs the THK Working Group on Transparency with the OECD Secretariat and the International Finance Corporation.
• The Investor Leadership Network, launched during Canada’s 2018 G7 presidency, is an open and collaborative platform for leading investors interested in addressing sustainability and long‑term growth.
• Canada supports the Closing the Investment Gap initiative to address the lack of upstream project preparation capacity, which prevents institutional investors from investing in major infrastructure projects in developing countries. Canada’s support gives the highest priority to projects that reduce GHG emissions and protect communities that are vulnerable to the impact of climate change, while empowering women and girls.

Section 2.3.2

G20 action item

Share best practices on promoting investments in sectors related to or impacted by the COVID‑19 pandemic.

Canada’s response

• Canada is working to inform and update its investment attraction practices through guidance papers on supply chains and key sectors of focus.

Section 2.3.3

G20 action item

Work together to identify key areas, such as critical medical supplies and equipment and sustainable agricultural production, where investment is needed.

Canada’s response

• The Ministerial Coordination Group on COVID‑19 (MCGC) provides a forum for such work. The MCGC, which brings together foreign ministers from 15 countries, has proven to be a key forum for expressing and delineating common concerns by providing a unique, global perspective on the fight against the COVID‑19 pandemic.
• In 2018, Canada proposed to the G20 the use of Agroecosystem Living Labs (ALL) for innovative agricultural research. ALL farms are intended to bring scientists, industry, and farmers together to develop, test and monitor new technologies and farm practices. Thus far, 2 living labs have been launched in Canada. As part of this effort, Canada will invest in 3 more living labs in the next 2 years.

Section 2.3.4

G20 action item

Encourage investment in new capacity for producing medical supplies, medical equipment, and personal protective equipment.

Canada’s response

Canada’s efforts to mobilize medical supply for COVID‑19

• Canada has established a special team of trade officials to manage the COVID‑19 response specifically from a trade and investment angle. This includes determining domestic strengthens and gaps and working within our networks to address those gaps through procurement, partnerships and foreign direct investment.

Section 2.3.5

G20 action item

Encourage government agencies to work with companies and investors in identifying investment opportunities and activities.

Canada’s response

Canada’s efforts to mobilize medical supplies for COVID‑19

• Canadian government investment officers meet regularly with companies to identify potential investment opportunities, including those related to Canada’s COVID‑19 response.

Section 2.3.6

G20 action item

Encourage consultations with the private sector on its needs as necessary, as part of policymaking on foreign direct investment.

Canada’s response

Canada’s efforts to mobilize medical supplies for COVID‑19

• Canadian government investment officers are reaching out to existing investors to assess their needs and provide them with information on government incentives. Information gleaned from these conversations has been used to inform policymaking for COVID‑19 relief measures for business.
• In October and November 2020, Canada held targeted conversations with private sector stakeholders to inform its forthcoming approach to private sector engagement for sustainable development.

Section 2.3.7

G20 action item

Encourage cooperation on technical assistance and capacity building provided to developing and least-developed countries on investment promotion.

Canada’s response

• Canada works closely with international organizations such as the World Bank’s International Finance Corporation, the United Nations Economic Commission for Africa and the East African Community, and directly with national governments, the private sector, and civil society organizations to reduce barriers to trade and investment in developing and least-developed countries.
• Through bilateral and plurilateral assistance programs, Canada has made efforts to help developing countries build institutional capacity and improve the regulatory environment. For example, Canada’s Expert Deployment Mechanism for Trade and Development (EDM) deploys technical experts while exploratory talks are underway, during formal negotiations, or following the conclusion and ratification of free trade agreement (FTAs) or foreign investment promotion and protection agreements (FIPAs) with Canada. The EDM is aligned with Canada’s Feminist International Assistance Policy. As a result, it aims to contribute to poverty reduction by supporting policy development and helping ensure that gains from trade and investment are distributed more equitably. Specific to investment, through the EDM, Canada is helping developing countries to raise domestic awareness of FTA investment obligations, establish an effective investment dispute management system, and prepare schedules of commitments for trade in services and investment.
• Through its international assistance, Canada is supporting the Trade Facilitation Office Canada (TFO Canada) for capacity building initiatives that support trade partnerships between exporters from developing countries and Canadian and foreign buyers. TFO Canada is a leader in teaching entrepreneurs in the developing world to be successful exporters, with a focus on Canadian markets. TFO Canada’s services are available in over 150 countries recognized by the OECD as eligible for development assistance, with projects in Africa, the Americas, Asia and Eastern Europe.
• Through the Technical Assistance Partnership, Canadian experts will be deployed to meet expressed needs of partner governments in ODA‑eligible countries, aligned with the Feminist International Assistance Policy. Technical assistance initiatives will address needs from all Policy action areas, which may include investment promotion.