Regulation of financial services, reform of immigration/employment law, e-commerce highlighted by CLHIA
With NAFTA renegotiations set to begin on August 16, Canada’s association for life and health insurers has stated its position on the trade deal. In a statement released this week, newly installed president and CEO of the CLHIA Stephen Frank outlined what providers want to see from any prospective agreement. Regulation of financial services, reform of immigration/employment law, as well as an e-commerce update were key issues identified by Frank ahead of the crucial meetings next month.
According to data from the CLHIA, close to 150,000 people are employed in the life and health insurance sector in Canada. As the world’s largest economy, the US is a major part of international business for Canada’s providers, accounting for 18.7% of worldwide premiums. As such, the terms of NAFTA II, should it come to pass, have huge implications for the industry, particularly when it comes to the regulatory environment governing insurers on both sides of the International Boundary.
“NAFTA protects the right of each participant nation to regulate financial services in a manner that is best suited for their own individual markets,” states Frank. “The continued ability to regulate the financial services sector for sound prudential and risk management practices must remain a cornerstone of Canadian trade policy.”
Another priority for the industry is finding consensus when it comes to immigration law, specifically how it pertains to temporary entry of business personnel. Frank and the CLHIA believe NAFTA is badly out-of-date on this, which is something Justin Trudeau’s trade delegation need to bear in mind in discussions with their US and Mexican counterparts.
“We believe Canada should work with its NAFTA partners to update and clarify the list of professionals and to improve the efficiency and predictability of ‘inter-company transferee’ or ‘business visitor’ programs,” explains Frank. “Canada can also use this process to improve its own immigration system by creating an electronic visa application and approval process.”
The North American Free-Trade Agreement came into effect in January 1994, which predates the proliferation of the internet. NAFTA has had various updates over the years to reflect the many advancements in technology, but not enough, say critics. It’s another area the Canadian team needs to prioritize ahead of talks next month, says the CLHIA.
“Having been negotiated over two decades ago, it is not surprising that NAFTA does not contain an e-commerce chapter … In light of the fact that all three NAFTA partners participated in the TransPacific Partnership (TPP) negotiations, the e-commerce provisions in the TPP could serve as a starting point for negotiations in the NAFTA context,” believes Frank.
The TPP, like NAFTA, has received plenty of criticism itself, most notably from Donald Trump. Nevertheless, the CLHIA considers the agreement as something Canada’s trade team can use when negotiating how e-commerce is approached in any NAFTA sequel.
“Canada should ensure that companies maintain their existing ability to transfer business data across borders while respecting the privacy requirements of host jurisdictions,” he says. “An e-commerce chapter should also set the standard that prohibits parties from imposing monetary penalties (such as taxation or customs duties) for the transfer of digital data across borders.”
Related stories:
Privacy concerns a priority for insurers, says new CLHIA CEO
NAFTA negotiations key for life and health insurers’ prosperity, says CLHIA
According to data from the CLHIA, close to 150,000 people are employed in the life and health insurance sector in Canada. As the world’s largest economy, the US is a major part of international business for Canada’s providers, accounting for 18.7% of worldwide premiums. As such, the terms of NAFTA II, should it come to pass, have huge implications for the industry, particularly when it comes to the regulatory environment governing insurers on both sides of the International Boundary.
“NAFTA protects the right of each participant nation to regulate financial services in a manner that is best suited for their own individual markets,” states Frank. “The continued ability to regulate the financial services sector for sound prudential and risk management practices must remain a cornerstone of Canadian trade policy.”
Another priority for the industry is finding consensus when it comes to immigration law, specifically how it pertains to temporary entry of business personnel. Frank and the CLHIA believe NAFTA is badly out-of-date on this, which is something Justin Trudeau’s trade delegation need to bear in mind in discussions with their US and Mexican counterparts.
“We believe Canada should work with its NAFTA partners to update and clarify the list of professionals and to improve the efficiency and predictability of ‘inter-company transferee’ or ‘business visitor’ programs,” explains Frank. “Canada can also use this process to improve its own immigration system by creating an electronic visa application and approval process.”
The North American Free-Trade Agreement came into effect in January 1994, which predates the proliferation of the internet. NAFTA has had various updates over the years to reflect the many advancements in technology, but not enough, say critics. It’s another area the Canadian team needs to prioritize ahead of talks next month, says the CLHIA.
“Having been negotiated over two decades ago, it is not surprising that NAFTA does not contain an e-commerce chapter … In light of the fact that all three NAFTA partners participated in the TransPacific Partnership (TPP) negotiations, the e-commerce provisions in the TPP could serve as a starting point for negotiations in the NAFTA context,” believes Frank.
The TPP, like NAFTA, has received plenty of criticism itself, most notably from Donald Trump. Nevertheless, the CLHIA considers the agreement as something Canada’s trade team can use when negotiating how e-commerce is approached in any NAFTA sequel.
“Canada should ensure that companies maintain their existing ability to transfer business data across borders while respecting the privacy requirements of host jurisdictions,” he says. “An e-commerce chapter should also set the standard that prohibits parties from imposing monetary penalties (such as taxation or customs duties) for the transfer of digital data across borders.”
Related stories:
Privacy concerns a priority for insurers, says new CLHIA CEO
NAFTA negotiations key for life and health insurers’ prosperity, says CLHIA
