June 20, 2008
No. 141
The Honourable David Emerson, Minister of Foreign Affairs and International Trade and Minister for the Pacific Gateway and Vancouver-Whistler Olympics, today announced that the Government of Canada will seek consultations with China on its measures affecting the distribution of financial information services in China, under the World Trade Organization (WTO) dispute settlement process.
"We are concerned that measures imposed by China affecting foreign financial information suppliers are not consistent with its WTO obligations," said Minister Emerson.
In 2006, China's Xinhua News Agency issued a set of regulatory measures affecting the supply of financial information in China. Under these measures, foreign suppliers of financial information are not permitted to establish a commercial presence in China or deal directly with financial information consumers. In addition, they are required to disclose confidential business information to the regulator, which is related to a competitor.
These measures could adversely affect the ability of Canadian suppliers to provide financial information services in China-services that are key to ensuring the efficient and transparent operation of financial markets.
The Government of Canada will work with China and other parties involved, with a view to resolving this matter.
WTO consultations provide the parties with an opportunity to resolve a dispute through discussions. If consultations fail to resolve the matter, the complaining party may request that the matter be referred to a WTO dispute settlement panel.
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A backgrounder follows.
For further information, media representatives may contact:
Lynn Meahan
Press Secretary
Office of the Minister of Foreign Affairs and International Trade and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics
613-992-7332
Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
www.international.gc.ca/index.aspx
Backgrounder
WTO Consultations on China's Measures Governing Financial Information Services
On June 20, 2008, pursuant to the WTO Agreement, Canada requested consultations with China concerning measures affecting foreign financial information suppliers in China.
The objective of the consultations is to seek a better understanding of China's regulatory regime governing the provision of financial information services by foreign suppliers, including how the relevant measures are applied. Canada seeks to resolve concerns over measures adopted by China that put Canadian financial information service suppliers at a disadvantage relative to domestic suppliers.
The consultations will also provide Canada with an opportunity to confirm its understanding of the Chinese measures and their consistency with China's obligations under the General Agreement on Trade in Services (GATS) and its Protocol of Accession. Canada's goal is to ensure that Canadian financial information service suppliers operate on a level playing field.
As a global leader in financial information services, Canada has significant interests in the Chinese market. Timely and reliable financial information is of crucial importance to financial markets and to the ability of financial service providers to operate effectively in the global marketplace.
The European Communities and the United States launched consultations with China concerning these same measures in March 2008.
WTO consultations are a first step toward finding a resolution to a dispute through a discussion of the matter at issue. If consultations fail to resolve the matter, a party may request the establishment of a WTO dispute settlement panel.
Further information about the WTO dispute settlement process can be obtained on the WTO website at www.wto.org.
