C-13

1Schedule VII to the Financial Administration Act is amended by replacing “Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, done at Santiago on March 8, 2018.” with the following: Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, done at Santiago on March 8, 2018, and any accession protocol that is listed in the schedule to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act .

2Schedule 2 to the Commercial Arbitration Act is amended by replacing “Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, done at Santiago on March 8, 2018” in column 2 with the following: Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, done at Santiago on March 8, 2018, and any accession protocol that is listed in the schedule to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act

3The definition regulated foreign entity in section 2 of the Trust and Loan Companies Act is replaced by the following: regulated foreign entity has the same meaning as in section 2 of the Bank Act ; ( entité étrangère réglementée ) Trust and Loan Companies Act Clause 3 : Existing text of the definition: regulated foreign entity means an entity that is (a) incorporated or formed otherwise in a country or territory, other than Canada, in which a trade agreement listed in Schedule IV of the Bank Act is applicable, and (b) subject to financial services regulation in that country or territory; ( entité étrangère réglementée )

4Paragraph (a) of the definition regulated foreign entity in section 2 of the Bank Act is replaced by the following: (a) incorporated or formed otherwise in a country or territory, other than Canada, that is referred to in Schedule IV, and Bank Act Clause 4 : Relevant portion of the definition: regulated foreign entity means an entity that is (a) incorporated or formed otherwise in a country or territory, other than Canada, in which a trade agreement listed in Schedule IV is applicable, and

5Section 14.11 of the Act is replaced by the following: Schedule IV 14.11 For the purpose of implementing Canada’s international trade obligations, the Governor in Council may, by order, amend Schedule IV by adding, deleting or amending any item .

14.11For the purpose of implementing Canada’s international trade obligations, the Governor in Council may, by order, amend Schedule IV by adding or deleting the name of a trade agreement.

6Subsection 239(3.1) of the Act is replaced by the following: Exception (3.1) Subject to subsection 245(1.1), subsection (1) does not apply to a bank that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory, other than Canada, that is referred to in Schedule IV or of a regulated foreign entity. Clause 6 : Existing text of subsection 239(3.1): (3.1) Subject to subsection 245(1.1), subsection (1) does not apply to a bank that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.

7Subsection 251(3) of the Act is replaced by the following: Exception (3) Subject to subsection 245(1.1), subsection (1) does not apply to a bank that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory, other than Canada, that is referred to in Schedule IV or of a regulated foreign entity. Clause 7 : Existing text of subsection 251(3): (3) Subject to subsection 245(1.1), subsection (1) does not apply to a bank that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.

8Paragraphs 597(2.1)(a) and (b) of the Act are replaced by the following: (a) incorporated in a country or territory, other than Canada, that is referred to in Schedule IV; or (b) a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory, other than Canada, that is referred to in Schedule IV or of a regulated foreign entity. Clause 8 : Relevant portion of subsection 597(2.1): (2.1) Subject to subsection 245(1.1), subsection (2) does not apply to an authorized foreign bank that is: (a) incorporated in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable; or (b) a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.

9Subsection 816(1.1) of the Act is replaced by the following: Exception (1.1) Subject to subsection 822(1.1), subsection (1) does not apply to a bank holding company that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory, other than Canada, that is referred to in Schedule IV or of a regulated foreign entity. Clause 9 : Existing text of subsection 816(1.1): (1.1) Subject to subsection 822(1.1), subsection (1) does not apply to a bank holding company that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.

10Subsection 828(3) of the Act is replaced by the following: Exception (3) Subject to subsection 822(1.1), subsection (1) does not apply to a bank holding company that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory, other than Canada, that is referred to in Schedule IV or of a regulated foreign entity. Clause 10 : Existing text of subsection 828(3): (3) Subject to subsection 822(1.1), subsection (1) does not apply to a bank holding company that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.

11Schedule IV to the Act is replaced by the Schedule IV set out in Schedule 1 to this Act.

12The definition regulated foreign entity in subsection 2(1) of the Insurance Companies Act is replaced by the following: regulated foreign entity has the same meaning as in section 2 of the Bank Act ; ( entité étrangère réglementée ) Insurance Companies Act Clause 12 : Existing text of the definition: regulated foreign entity means an entity that is (a) incorporated or formed otherwise in a country or territory, other than Canada, in which a trade agreement listed in Schedule IV of the Bank Act is applicable; and (b) subject to financial services regulation in that country or territory; ( entité étrangère réglementée )

13The definition CPTPP tariff in subsection 2(1) of the Customs Tariff is amended by striking out “and” at the end of paragraph (j), by adding “and” at the end of paragraph (k) and by adding the following after paragraph (k): (l) the Comprehensive and Progressive United Kingdom Tariff. ( tarif PTPGP ) Customs Tariff Clause 13 : New.

14Section 27 of the Act is amended by adding the following in alphabetical order: CPUKT refers to the Comprehensive and Progressive United Kingdom Tariff. ( TUKGP ) Clause 14 : New.

15The Act is amended by adding the following after section 52.81: Comprehensive and Progressive United Kingdom Tariff 52.82 (1) Subject to section 24, goods that are entitled to the Comprehensive and Progressive United Kingdom Tariff are entitled to the Comprehensive and Progressive United Kingdom Tariff rates of customs duty. “A” final rate for CPUKT (2) If “A” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CPUKT” in relation to goods entitled to the Comprehensive and Progressive United Kingdom Tariff, the Comprehensive and Progressive United Kingdom Tariff rate of customs duty that applies to those goods is the final rate of “Free”. “F” staging for CPUKT (3) If “F” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CPUKT” in relation to goods entitled to the Comprehensive and Progressive United Kingdom Tariff, the Comprehensive and Progressive United Kingdom Tariff rate of customs duty that applies to those goods is the initial rate, reduced as provided in the “F” Staging List. Staging for CPUKT (4) Subject to subsection (5), if “X78”, “X79” or “X80” is set out in the column entitled “Preferential Tariff” in the List of Tariff Provisions following the abbreviation “CPUKT” in relation to goods entitled to the Comprehensive and Progressive United Kingdom Tariff, the Comprehensive and Progressive United Kingdom Tariff rate of customs duty that applies to those goods is, (a) if “X78” is set out, the initial rate, reduced, (i) effective on the first day on which the Comprehensive and Progressive Trans-Pacific Partnership Agreement is in effect between Canada and the United Kingdom, to three elevenths of the initial rate, (ii) effective on January 1, 2026, to two elevenths of the initial rate, (iii) effective on January 1, 2027, to one eleventh of the initial rate, and (iv) effective on January 1, 2028, to the final rate of “Free”; (b) if “X79” is set out, the initial rate, (i) without reduction, effective on the first day on which the Comprehensive and Progressive Trans-Pacific Partnership Agreement is in effect between Canada and the United Kingdom, (ii) reduced, effective on January 1, 2026, to three quarters of the initial rate, (iii) reduced, effective on January 1, 2027, to one half of the initial rate, (iv) reduced, effective on January 1, 2028, to one quarter of the initial rate, and (v) reduced, effective on January 1, 2029, to the final rate of “Free”; and (c) if “X80” is set out, the initial rate, reduced, (i) effective on the first day on which the Comprehensive and Progressive Trans-Pacific Partnership Agreement is in effect between Canada and the United Kingdom, to one quarter of the initial rate, and (ii) effective on January 1, 2029, to the final rate of “Free”. No retroactive effect (5) The rates of customs duty set out in subsection (4) shall have no effect in respect of a period before the first day on which the Comprehensive and Progressive Trans-Pacific Partnership Agreement is in effect between Canada and the United Kingdom. Rounding of specific rates (6) If a reduction under subsection (3) or (4) results in a specific rate of customs duty that includes a fraction of one hundredth of a cent, the rate shall be rounded down to the nearest one hundredth of a cent. Rounding of ad valorem rates (7) If a reduction under subsection (3) or (4) results in a rate of customs duty that includes a fraction of one per cent, the resulting percentage shall be rounded down to the nearest one tenth of one per cent. Rounding of ad valorem rates — fraction other than 0.5 (8) If, for any goods other than motor vehicles of heading No. 87.01, 87.02, 87.03, 87.04 or 87.05, a reduction under subsection (3) or (4) or a rounding of rates under subsection (7) results in a rate of customs duty that includes a fraction of one per cent other than 0.5, the resulting percentage shall be rounded down to the nearest percentage that divides evenly by 0.5. Elimination of rates of less than 2 per cent (9) If, for any goods other than motor vehicles of heading No. 87.01, 87.02, 87.03, 87.04 or 87.05, a reduction under subsection (3) or (4) results in a rate of customs duty that is a percentage of less than two per cent, the rate shall be further reduced to “Free” immediately.

52.83(1) The Governor in Council may, on the recommendation of the Minister, by order, amend the schedule to extend entitlement to the Comprehensive and Progressive United Kingdom Tariff to any goods that originate in a CPTPP country. Retroactivity (2) An order made under subsection (1) may, if it so provides, be retroactive and have effect in respect of a period before it is made, but no such order may have effect in respect of a period before the first day on which the Comprehensive and Progressive Trans-Pacific Partnership Agreement is in effect between Canada and the United Kingdom. Content of order (3) An order made under subsection (1) (a) must specify the date on which the order becomes effective; (b) must, if the order partially extends entitlement to the Comprehensive and Progressive United Kingdom Tariff, indicate the goods to which entitlement to that Tariff is extended; and (c) may exempt goods from the conditions set out in subsection 24(1) and prescribe any conditions that apply.

16(1) The portion of paragraph 76(4)(b) of the Act before subparagraph (i) is replaced by the following: (b) may — in respect of goods that are entitled to the Comprehensive and Progressive Trans-Pacific Partnership Tariff — be in effect during the period beginning on December 30, 2018 and ending Clause 16 : (1) and (2) Relevant portion of subsection 76(4): (4) An order made under subsection (1) ... (b) may be in effect during the period beginning on the day on which this subsection comes into force and ending (2) Subsection 76(4) of the Act is amended by adding the following after paragraph (b): (c) may — in respect of goods that are entitled to the Comprehensive and Progressive United Kingdom Tariff — be in effect during the period beginning on the day on which this subsection comes into force and ending (i) on the third anniversary of the first day on which the Comprehensive and Progressive Agreement on Trans-Pacific Partnership is in effect for the United Kingdom, if the order is in respect of goods for which the Comprehensive and Progressive United Kingdom Tariff is at its final rate of “Free” on that anniversary, and (ii) on the day on which the Comprehensive and Progressive United Kingdom Tariff rate of customs duty is reduced to its final rate of “Free”, if the order is in respect of goods for which the Comprehensive and Progressive United Kingdom Tariff rate of customs duty is not at its final rate of “Free” on the anniversary referred to in subparagraph (i).

17The List of Countries and Applicable Tariff Treatments set out in the schedule to the Act is amended by adding, in the column “Tariff Treatment / Other”, a reference to “CPUKT” opposite the references to “Channel Islands”, “Isle of Man” and “United Kingdom”.

18The List of Tariff Provisions set out in the schedule to the Act is amended by (a) adding in the column “Preferential Tariff / Initial Rate”, above the reference to “GPT”, a reference to “CPUKT:”; (b) adding in the column “Preferential Tariff / Final Rate”, above the reference to “GPT”, a reference to “CPUKT:”; (c) adding in the column “Preferential Tariff / Initial Rate” a reference to “Free” after the abbreviation “CPUKT”, and adding in the column “Preferential Tariff / Final Rate” a reference to “Free (A)” after the abbreviation “CPUKT”, for all tariff items except those tariff items set out in Schedules 2 and 3 to this Act; (d) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate”, a reference to “N/A” after the abbreviation “CPUKT” for those tariff items set out in Schedule 2 to this Act; and (e) adding in the columns “Preferential Tariff / Initial Rate” and “Preferential Tariff / Final Rate” after the abbreviation “CPUKT”, for each tariff item set out in Schedule 3 to this Act, the rates of customs duty and staging categories set out with respect to that tariff item in that Schedule.

19The definition Agreement in section 2 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act is replaced by the following: Agreement means the Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, done at Santiago on March 8, 2018, and any accession protocol that is listed in the schedule . ( Accord ) Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act Clause 19 : Existing text of the definition: Agreement means the Comprehensive and Progressive Agreement for Trans-Pacific Partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, done at Santiago on March 8, 2018. ( Accord )

20Section 9 of the Act is renumbered as subsection 9(1) and is amended by adding the following: (2) For greater certainty, any accession protocol that is listed in the schedule is also approved. Clause 20 : New.

21Section 47 of the Act is repealed. Clause 21 : The existing text of section 47 is not reproduced here because it is a provision that has produced its effect. Its repeal is consequential to clause 22 and ensures that spent schedule references in the Act are deleted.

22Schedules 1 to 13 to the Act are replaced by the schedule set out in Schedule 4 to this Act.

23This Act comes into force on a day to be fixed by order of the Governor in Council.