Government of Canada Policy

The Minerals and Metals Policy of the Government of Canada

VII. Minerals and Metals at the International Level: Providing Leadership in the Implementation of Sustainable Development

Minerals and metals are vital to modern industrial activity, global development and quality of life. Whether from naturally occurring or anthropogenic sources, they have an impact on the daily lives of every inhabitant of our planet. Although mining activity is domestic, markets are global, as is the competition for investment capital. The environmental impact of minerals and metals extraction, processing, use, re-use, production, transportation, recycling, or disposal does not always respect borders. Associated social issues have had an increasingly international dimension. The international nature of many of the pressures on the sector will necessarily influence the type of partnerships, programs and activities that need to be developed in response. Canada’s global role in the sustainable development of minerals and metals is elaborated below. In playing that role, Canada has developed an approach that is assertive, action-oriented, and cognizant of multi-stakeholder interests. It is a role the international community expects of us.

Trade Liberalization and Investment

Canada is the worlds
largest exporter of
minerals and metals

Canada is the world’s largest exporter of minerals and metals, exporting approximately 60 different mineral commodities to over 100 countries around the globe. Canada is also a major exporter of downstream, value-added mineral- and metal-related products, as well as environmentally sound technologies. As a major trading nation, and as the home of several large, integrated multinational minerals and metals producers, as well as a growing number of junior mining companies involved in direct investment, and exploration and development activities abroad, Canada is dependent on transparent, predictable, rules-based international trade and investment regimes. The World Trade Organization (WTO) is an essential forum for their pursuit. Also important is the work being done under the auspices of the Organization for Economic Co-operation and Development (OECD) – in particular, current efforts to develop a multilateral international investment framework. Free trade areas, such as the North American Free Trade Agreement (NAFTA), and bilateral agreements can advance global free trade by promoting the flow of goods, services and investment through the progressive lowering of tariffs and elimination of non-tariff barriers.

The Government will promote:

the progressive reduction in tariffs on mineral and metal commodities and products;

the elimination of unjustifiable non-tariff barriers that impede the industry’s access to international markets;
the use of existing trade remedy and dispute settlement mechanisms to redress unjustified health and environmental standards that restrict trade;
the expansion of free trade areas such as the one established under NAFTA;
a multilateral framework of rules that will protect and promote international investment; and
appropriate bilateral double taxation and foreign investment protection agreements.

Sound Management of Minerals and Metals

As for other sectors, the international community is grappling with the translation of sustainable development of minerals and metals into practice. Environmental, health and labour standard initiatives have the potential to affect the competitiveness and acceptability of mineral and metal products in the marketplace. Canada is expected to play a defining role in international fora engaged in the development of instruments aimed at viable long-term solutions to problems of sustainable development. Central to Canadian approaches are the concepts of risk assessment, risk management, and the Safe Use Principle.

A number of international institutions are involved. The Intergovernmental Forum for Chemical Safety (IFCS) was established to identify priorities for cooperative action in pursuit of Chapter 19 of the Rio Summit’s Agenda 21, which addresses the Environmentally Sound Management of Toxic Chemicals. The United Nations Environment Programme (UNEP) and other United Nations bodies, including the Commission on Sustainable Development (CSD), the Economic Commission for Europe (ECE), the International Maritime Organization (IMO), and the Interorganization for the Sound Management of Chemicals (IOMC), are active on a variety of initiatives, including a Prior Informed Consent Convention and a Heavy Metals Protocol to the ECE Convention on Long-Range Transboundary Air Pollution.

The OECD is playing a lead role on a number of fronts, including the development of an approach to the management of trade in hazardous waste destined for recycling. Its risk reduction program has led to pilot projects for five chemicals and, in particular, the voluntary industry Action Program on lead. Intergovernmental commodity study groups are also playing an increasing role in the development and implementation of such initiatives.

Increased global cooperation has fostered a variety of mechanisms to address environmental, health and safety concerns related to particular minerals and metals. The experience of recent years, however, has yielded important lessons. There is a recognition of the need to be creative in developing approaches that are practical, effective and, where necessary, legally enforceable. The goal is to address environmental, health and safety concerns while ensuring that society continues to derive the benefits from the responsible use of minerals and metals. The potential adverse economic consequences of the various instruments will require close attention. It will also be important to differentiate more clearly between minerals and metals and other chemicals in the development of such instruments.

The Government will seek to ensure that international approaches allow for the safe production, transportation, use, re-use, recycling or disposal of mineral and metal products and raw materials, as well as the appropriate regulatory measures for managing products and materials that exhibit risk factors of concern.

The Government will promote consideration of an integrated mechanism for the sound management of chemicals, providing for the full range of appropriate instruments from legally binding agreements to government-sponsored non-regulatory approaches to voluntary industry initiatives.

Canada is expected to
play a defining role
in international fora

The Government will continue to support the development of multilateral environmental agreements (MEAs) that are environmentally effective, science-based, and take into account economic and social considerations.

Trade measures have been used to enforce MEAs and to prevent non-parties from circumventing obligations contained in an agreement. They are, however, generally not a first best option and should only be considered when the policy objectives of the agreement would otherwise be thwarted. The relationship between the use of trade measures in MEAs and international trade rules is currently under examination by the WTO.

Where trade provisions are considered necessary, the Government will seek to ensure that:

all other reasonable approaches to achieving the desired outcome have been properly evaluated and have been deemed to be ineffective;
the selected approach is consistent with Canada’s international trade obligations and established government policies and programs; and
the selected measure is the least trade-restrictive available and is not intended to confer a competitive advantage.

Social policy issues are also being addressed, notably in the World Health Organization and the International Labour Organization (ILO). An ILO Convention and Recommendation on Safety and Health in Mines, adopted in 1995, set comprehensive international standards to improve safety and health for the 25 million workers directly involved in mining. The Government will be examining the implementation of these instruments in consultation with the provinces, including the possible future ratification of the Convention. Canadian initiatives such as the Workplace Hazardous Materials Information System (WHMIS), which is designed to ensure that information on hazardous products is consistently and systematically transferred from suppliers to employers to workers on a national basis, have been favourably viewed internationally. Human rights questions, including child labour abroad, will receive increasing attention.

Bilateral and Regional Cooperation

Traditionally, Canada has benefitted from bilateral working groups, such as the Canada-EU Metals and Minerals Working Group, as fora for consultations aimed at market transparency and economic cooperation. Increasingly, these fora have provided opportunities for raising sustainable development concerns. A number of countries in the Americas are major producers of minerals and metals and look to Canada as an example of workable and sustainable development-based policy approaches. Memoranda of Understanding can provide a framework for enhanced cooperation, as can regional initiatives such as the Mines Ministers of the Americas meetings. Similarly, the Government supports the work of such regional bodies as the NAFTA Environment Commission and the Asia-Pacific Economic Cooperation (APEC) Expert Group on Minerals and Energy Exploration and Development (GEMEED).

The Government affirms its commitment, through bilateral and regional initiatives, to promote the sustainable development of minerals and metals and to develop, where resources permit, partnerships with countries that share our views and concerns.

Technical Cooperation

Over the past 130 years, Canada has developed the knowledge, expertise and world-class technology in mining that enables it to play a leadership role. With this foundation, Canada provides policy advice and scientific and technological assistance to developing countries that are trying to respond to the sustainable development challenge in the context of minerals and metals. For example, the Canadian International Development Agency (CIDA), through the Canada Centre for Mineral and Energy Technology (CANMET) and the Geological Survey of Canada (GSC), has played a major role to this end. In a multilateral setting, Canada has also played a role through mechanisms such as training and education programs, and technology transfer workshops, hosted, for example, under OECD auspices or conducted as part of the Basel Convention implementation process. As a goal, the Government, within the scope of existing resources, will continue to promote its willingness to share Canada’s experience and expertise in implementing sustainable development in the area of minerals and metals, particularly with developing countries and international development assistance agencies.

Consultations with Stakeholders

Responding to diverse issues and policy pressures requires that governments be well informed about the interests and viewpoints of the many stakeholders likely to be affected. To promote the free exchange of information between the federal government and affected stakeholders, transparency and effective means of communication are essential. Therefore, the Government is committed to managing its participation in multilateral fora to ensure clarity and transparency for clients. Whenever possible, Canadian positions will be developed in consultation with the provinces and territories, and with input from the industry, the environmental community, and other stakeholders.