GENEVA (Reuters) - Canada's trade and investment regime is among the world's most liberal, but barriers persist in certain agri-food industries, textiles and key service sectors, the World Trade Organization (WTO) said on Friday.
Canada, enjoying the ninth consecutive year of growth, maintains restrictions for foreign competitors in financial services, transportation, telecommunications and so-called "cultural sectors," according to the report by WTO economists.
WTO's 140 member states discussed the trade policy review at a two-day-long meeting which ended on Friday. On Thursday, U.S. trade ambassador Rita Hayes urged Canada -- its largest single trading partner -- to open wider to foreign agricultural goods and end programs that gave its wheat growers an "unfair advantage" on world markets.
In a speech to the talks, Hayes also welcomed Canada's stated commitment in current WTO negotiations to working for the elimination of export subsidies to farmers. Both countries are largely targeting the European Union, trade diplomats say.
The WTO report said that in WTO agriculture negotiations, Canada was seeking improved market access, export subsidy elimination and reduced trade-distorting domestic support, while on the other it wished to preserve its right to operate "orderly marketing systems" in the wheat, dairy, poultry and egg sectors.
Canadian support programs -- including those for diary exports, aircraft, motor vehicles, generic drugs and magazines -- have been challenged under WTO rules, it added.
Canada -- linked to the United States and Mexico through NAFTA -- has built up its already extensive network of such preferential trade arrangements, negotiating with Costa Rica, Singapore and the European Free Trade Association grouping Switzerland, Norway, Iceland and Liechtenstein, the report said.
"Notwithstanding these efforts, the privileged relationship with the United States is likely to remain paramount for Canada for years to come," it said.
The U.S. absorbs some 86 percent of Canadian exports, while 21 percent of U.S. exports go to its northern neighbor.
Canada's tariff regime offers duty-free entry to more than 90 percent of imports, either under most-favored-nation (MFN) or preferential rules, the report said. This results in a trade-weighted average tariff of only some 0.9 percent.
But higher tariffs apply to a "number of sensitive products," including vegetables, cut flowers, sugar, wines, textiles, clothing, footwear and ships, it added. These goods were of particular interest to exporting developing countries.
Canada is also one of the major users of anti-dumping measures to protect domestic producers, according to the report, with 85 definitive anti-dumping duties in force at mid-year.
"Exports from some 35 partners are affected, 58 percent of which cover steel products," it added.:
