Highlights

  • Investigations and regulatory actions are being taken by Canadian authorities regarding trade, taxation, and procurement issues.
  • Environmental and health assessments have led to new regulatory requirements for certain chemical substances.
  • Financial regulations are being updated to address cross-border enforceability and administrative burdens.
  • Amendments to regulations on aquatic invasive species and explosives aim to improve compliance, safety, and reduce administrative burdens.
  • Consultations with various stakeholders have generally supported these regulatory changes.

Canadian Agencies Investigate Trade, Tax, and Procurement Issues

The Canada Border Services Agency has initiated investigations into the alleged dumping and subsidizing of truck bodies from China under the Special Import Measures Act. The Canada Revenue Agency has issued a notice to revoke the registration of several charities for not meeting the filing requirements of the Income Tax Act. The Canadian International Trade Tribunal determined that a complaint by École de langues Eagle Inc. regarding a procurement by the Department of Public Works and Government Services was valid, as the evaluation was based on undisclosed criteria. The Tribunal is also conducting an inquiry into a complaint by Equifax Canada Co. against Export Development Canada, alleging improper assessment of its capabilities. The Canadian Radio-television and Telecommunications Commission has posted applications and notices of consultation on its website, with deadlines for interventions and comments. [Source]

New Regulations for Glycolipids Use and Increased Borrowing Limit for Toronto Port Authority

The Minister of the Environment and the Minister of Health have assessed a substance known as glycolipids, rhamnose-containing, Pseudomonas putida-fermented, from D-glucose, potassium salts, and have issued a Significant New Activity (SNAc) Notice under the Canadian Environmental Protection Act, 1999. This notice requires any person intending to use the substance for a significant new activity to submit a notification with specific information at least 90 days prior to the activity. The notice outlines the types of products and concentrations that constitute a significant new activity, such as cosmetics and certain detergents with more than 2% of the substance by weight. Exemptions include research and development uses, site-limited intermediates, and products for export only. The notice also specifies the information required for submission, including details about the activity, anticipated quantity, and potential environmental and health impacts. The information will be assessed within 90 days of receipt. The notice does not apply to uses regulated under certain other Canadian Acts. Compliance with the notice is mandatory, and a pre-notification consultation is recommended for those preparing a notification. Additionally, the Toronto Port Authority’s borrowing limit has been increased to $185 million, and University Bancorp, Inc. has been approved to have a financial establishment in Canada. [Source]

Munich Reinsurance America Plans Risk Transfer to Canadian Branch

Munich Reinsurance America, Inc. (MRAM), operating in Canada as a branch, plans to apply for approval from the Superintendent of Financial Institutions (Canada) to have all its risks reinsured by Munich Reinsurance Company of Canada. This will be done through an assumption reinsurance agreement. The agreement will be available for inspection by MRAM Branch treatyholders at their Chief Agency in Toronto for 30 days after the notice’s publication. Treatyholders can also request a copy of the agreement via mail or email. [Source]

CDIC Amends By-law to Align Cross-Border Stay Provisions and Reduce Burden

The Canada Deposit Insurance Corporation (CDIC) is amending its Eligible Financial Contracts By-law to address issues related to the enforceability of stay provisions in cross-border situations. The Financial Stability Board identified risks with domestic legislative stays not being recognized in foreign jurisdictions, leading to uncertainty in the enforceability of these provisions. To mitigate this, CDIC requires federal member institutions to include contractual language recognizing legislative stay requirements in certain contracts. The current By-law exempts only a subset of central counterparties (CCPs) and does not exempt foreign government agencies or multilateral development banks (MDBs), unlike peer authorities. This discrepancy has increased the administrative burden on CDIC’s member institutions. An assessment concluded that expanding exemptions to align with peer authorities would not hinder CDIC’s ability to manage orderly resolutions. The proposed amendments will exclude CCPs, foreign government departments or agencies, and MDBs from the prescribed class of eligible financial contracts. The compliance date for these changes is set for October 1, 2028, allowing institutions time to adjust. The amendments aim to reduce administrative burdens and align with international practices without affecting CDIC’s resolution capabilities. [Source]

Proposed Amendments to Strengthen Aquatic Invasive Species Regulations in Canada

The Aquatic Invasive Species Regulations (AISR) were initially established in 2015 to manage the deposit of substances to control aquatic invasive species (AIS) in Canada. However, gaps have been identified, such as the lack of clear authority to authorize the deposit of substances like deactivating agents used alongside pesticides, the absence of a requirement for authorization holders to follow specified directions, and the inability to amend, suspend, or cancel authorizations. These gaps could lead to non-compliance with the Fisheries Act and hinder enforcement actions.

Aquatic invasive species pose significant threats to Canada’s ecosystems, necessitating chemical control using pesticides, which requires authorization under the AISR. Health Canada’s Pest Management Regulatory Agency (PMRA) regulates these pesticides, assessing their risks and approving their labels, which may include additional substances for safe use. The proposed amendments aim to address these gaps by allowing the deposit of additional substances, enforcing compliance with authorization directions, and enabling the amendment, suspension, or cancellation of authorizations.

Consultations with federal, provincial, and territorial partners, as well as Indigenous Peoples and the public, have shown general support for the amendments, although some concerns were raised regarding engagement processes and the management of pesticides. The amendments are expected to provide legal certainty, improve enforcement capabilities, and streamline processes for amending authorizations, without imposing significant costs on businesses or the government. The changes align with existing pesticide regulations and are not expected to impact international trade or obligations. [Source]

Amendments to Explosives Regulations 2013 for Enhanced Safety and Modernization

The Explosives Regulations, 2013, are being amended to address changes in the explosives sector and enhance safety and security. Key amendments include introducing a transport permit and registration for propellant powder sellers, updating fees, and clarifying regulatory requirements. The amendments aim to modernize the regulatory regime, reduce administrative burdens, and align with the Government of Canada’s commitment to reducing “red tape.” The changes are expected to provide a net present benefit of $198,765, with improved clarity and safety for businesses, including small businesses. The amendments address gaps in transportation and selling of propellant powder, relax certain requirements, and update licensing and fee schemes. The proposal also includes new requirements for manufacturing explosives, remote avalanche control systems, and rocket motors. The amendments will be implemented in phases, with some changes coming into force immediately and others in subsequent years. The proposal has undergone extensive consultation with stakeholders, and the amendments are designed to enhance public safety and regulatory compliance. [Source]

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