FINANCIAL SERVICES AGREEMENT (Canada)

From: bobolsen@arcos.org (Bob Olsen)
Organization: FLORA Community WEB
Date: 21 Jan 1998 03:21:31 -0500

 I have hard copies of some WTO pages that suggest that, contrary to
 expert opinion, Canada has committed to allow 100 percent foreign
 ownerhip of Canadian banks.


 The WTO web site provides the following, apparently incomplete,
 information..............

 http://www.wto.org/wto/new/sumfin.htm


 17 December 1997

 Non-attributable summary of the main improvements in the
 new financial services commitments

 The following is informal background for information
 purposes only. It should not be cited or quoted as an
 official document of the WTO.

 -    A total of 56 offers (representing 70 countries)
      were submitted by the negotiating deadline of 12
      December 1997 and annexed to the Fifth Protocol to the
      GATS.

 -    Five countries (Bolivia, Costa Rica, Mauritius,
      Senegal and Sri Lanka) made offers in financial services
      for the first time. At present, 97 WTO Members have
      commitments in financial services under the GATS. This
      number will increase to 102 Members with the entry into
      force of the Fifth Protocol to the GATS.

 -    India and the United States have withdrawn their
      broad MFN exemptions based on reciprocity. Mauritius has
      limited the scope of its MFN exemption to services not
      listed in its Schedule of Specific Commitments.
      Venezuela has reduced the scope of its MFN exemption by
      removing capital market services from the coverage.
      Hungary has limited the applicability of its MFN
      exemption by removing a discretionary licensing
      requirement. The Philippines has reduced the scope of
      its MFN exemption based on reciprocity in commercial
      banking by excluding the expansion of existing
      operations from the scope, leaving only the
      establishment of new commercial presence.

 -    In addition to the 57 countries with existing
      commitments in the provision and transfer of financial
      information, Costa Rica, Honduras, Israel, Jamaica,
      Malta, Mauritius, Romania and Sri Lanka (8 countries)
      have extended the coverage of their commitments to these
      services.

                             _______

 Canada - Revising its 1995 commitments:

 -    Undertakes to modify its Schedule by 30 June
      1999 to incorporate the results of the implementation of
      a new foreign bank entry regime which will allow foreign
      banks to branch directly into Canada;

 -    Eliminates a requirement to gain Ministerial
      approval for foreign bank subsidiaries to open more than
      one branch.

 ====================================================================


 However, I have a hard copy of some WTO pages. 

 I had assumed that these pages were available on the WTO web site, but
 I cannot find them there.

 Among the pages that I have that I could not find on the WTO web site are:

 .............................................................................
									PRESS/86
									15 December 1997

		    SUCCESSFUL CONCLUSION OF THE 
		WTO'S FINANCIAL SERVICES NEGOTIATIONS

	....snip ......

 97-5513

..............................................................................

		WORLD TRADE ORGANIZATION  (WTO)
		FINANCIAL SERVICES NEGOTIATIONS

		FOREIGN INVESTMENT IN INSURANCE

		Total number of commitments 102
(This chart lists the 70 countries with improved commitments as of December
12)




 <no page number>

..............................................................................

..............................................................................

		WORLD TRADE ORGANIZATION  (WTO)
		FINANCIAL SERVICES NEGOTIATIONS

	  MARKET ACCESS AND SCOPE OF INSURANCE COMMITMENTS

		Total number of commitments 102
(This chart lists the 70 countries with improved commitments as of December
12)



<no page number>

..............................................................................

..............................................................................

		WORLD TRADE ORGANIZATION  (WTO)
		FINANCIAL SERVICES NEGOTIATIONS

		CROSS-BORDER INSURANCE ACTIVITIES

		Total number of commitments 102
(This chart lists the 70 countries with improved commitments as of December
12)



 <no page number>

..............................................................................

..............................................................................

		WORLD TRADE ORGANIZATION  (WTO)
		FINANCIAL SERVICES NEGOTIATIONS


 		BANKING/SECURITIES COMMITMENTS

		Total number of commitments 102
(This chart lists the 70 countries with improved commitments as of December
12)



 Right of Establishment for Banks (60 countries)

 Australia..... Canada..... U.S., Venezuela



 Right of Establishment of Securities Companies (45 Countries)

 Argentina..... Canada..... U.S., Venezuela



 100 percent ownership of banks (35 countries)

 Argentina..... Canada..... Uruguay


 
 100 percent ownerhip of securities firms (37 countries)

 Australia.... Canada..... U.S., Venezuela


 Provision and transfer of financial data and information (50 countries)

 Argentina..... Canada..... United States
 

				4

..............................................................................

..............................................................................
 
 Grandfathering acquired rights of foreign banks  (64 countries)

 Australia.... Canada...... U.S., Venezuela



 Grandfathering acquired rights of foreign securities firms (59 countries)

 Argentina....... Canada......  U.S., Venezuela
 

				5

..............................................................................


 You will notice (page 4) that Canada, but not the USA, appears to
 have committed to "100 percent ownership of banks" 
 
 I, and others, assume that that means that Canada commits to allowing
 100 percent foreign ownership of Canadian banks.

 I don't know what we have to do to get the Canadian media to wake up.


 Bob Olsen	Toronto		bobolsen@arcos.org   (:-)

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