November 13, 2008
No. 214
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia Pacific Gateway, today announced that Canada and China have signed the Memorandum of Understanding Regarding Measures Affecting Foreign Suppliers of Financial Information Services. The agreement, signed on behalf of the Government of Canada in Geneva today, following the approval of Minister Day, addresses Canadian concerns over Chinese treatment of foreign suppliers of financial information services.
"This agreement resolves an important commercial problem in China by improving market access for foreign companies there and ensuring they are treated fairly," said Minister Day. "Canadian companies are world-leading suppliers of financial information services, and this agreement will further increase their ability to compete in the vast and growing Chinese market."
Under the Memorandum of Understanding, China agrees to create a new, independent regulator of financial information services. China also confirms that providers of financial information services face no obstacles in establishing a commercial presence in the country, and that foreign suppliers will be accorded no less favourable treatment than domestic ones.
China has signed similar agreements with the European Communities and the United States, which shared Canada's concerns over China's regulation of financial information services.
A backgrounder follows.
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For further information, media representatives may contact:
Mélisa Leclerc
Director of Communications
Office of the Minister of International Trade and Minister for the Asia-Pacific Gateway
613-992-6186
Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
www.international.gc.ca/index.aspx
Backgrounder
Memorandum of Understanding between China and Canada Regarding Measures Affecting Foreign Suppliers of Financial Information Services
On November 13, 2008, following the approval of International Trade Minister Stockwell Day, Canada and China signed the Memorandum of Understanding (MOU) Regarding Measures Affecting Foreign Suppliers of Financial Information Services. This negotiated settlement represents the culmination of Canada's efforts to resolve concerns arising from Chinese measures affecting foreign suppliers of financial information services in China.
The Chinese measures at issue prohibited suppliers of financial information services from dealing directly with clients and require the suppliers to work through an agent- designated by the country's regulator-that is also a competitor. In addition, they required foreign suppliers to disclose confidential business information to the regulator, which is related to a competitor. Canada was also concerned that financial information service suppliers could not freely establish a commercial presence in China.
The MOU highlights Canada's concerns and describes what China will do to address them. In particular, China will authorize a new, independent government entity to regulate financial information services; confirms that it does not impose any prohibitions on the supply of financial information services through commercial presence; will ensure that foreign suppliers of financial information services are able to supply those services without involving an agent or intermediary; and will ensure that such providers are treated in a non-discriminatory fashion.
The negotiated settlement followed formal consultations with China in the WTO.
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.
China signed separate MOUs with the United States and European Communities, which had similar concerns.
Further information about the WTO dispute settlement process may be found at: www.wto.org/english/tratop_e/dispu_e/dispu_e.htm.
Further information about this particular issue may be found at: www.wto.org/english/tratop_e/dispu_e/cases_e/ds378_e.htm.
