LETTER TO MINSITER PETTIGREW
Trade Treatment of Electronically Delivered Software

August 13, 2002
 
 
The Honourable Pierre Pettigrew, P.C., M.P.
Minister of International Trade
125 Sussex Drive
Ottawa, ON
K1A 0G2

Dear Mr. Pettigrew:

I would like to thank you for the kind invitation for the Canadian Advanced Technology Alliance to lunch with you on August 7. I found the day’s sessions on the GATS both informative and constructive.

During the discussion after your remarks, speech, a question was raised on the slow pace of progress on the software issue. Canada, usually regarded as a leader in trade liberalisation, is seen as an obstacle on software. It is counted as one of the two countries least supportive of moving forward on software. In response to the question you requested an update on the subject.

You will recall that on May 15 a group of associations and companies, including CATAAlliance, wrote to you on "Liberalizing the Information & Communications technology Sector through Multilateral Trade Negotiations". The letter urges that: "Electronically delivered software, to the extent that it may be considered a service, should receive trade treatment no less favourable than software delivered in physical form;". I have enclosed a copy of the letter, along with a CATAAlliance paper, "THE CANADIAN SOFTWARE INDUSTRY, A TRADE PERSPECTIVE". The latter explains the special importance of the current negotiations to the future of the Canadian software industry.

No progress has been made on the problem in the months since. Software, one the fastest growing, most export driven Canadian industries, remains entangled in the problems of the cultural industries. One of Canada’s leading exporters is being handicapped by the protectionist agenda of another sector. Canada’s reputation as a supporter of trade liberalisation is being damaged by the impasse.

Minister, CATAAlliance urges you to place a high priority on the resolution of this issue. We will be happy to meet with you to help solve the problem.

Yours sincerely,


 

David Paterson
Executive Director, Public Affairs

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