Tariff panel says Canada broke rules on ownership

July 15, 1983

An international panel says Canada violated laws of global trade that restrict foreign ownership of domestic business. A committee of the General Agreement on Tariffs and Trade ruled that Canada is wrong in requiring non-Canadian investors to buy certain supplies and services within Canada. GATT members, such as Canada, are required to treat foreign-owned and domestic companies evenhandedly. The Reagan administration had issued complaints about the Canadian practice.