ANNOUNCEMENT 01 Jul 2014

In July 2014, the government of Canada announced a change in import duties.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: No inception date

Import tariff

The Government of Canada is currently engaged in a comprehensive review of its General Preferential Tariff (GPT) program for imports from developing countries. The initiative could lead to removal of dozens of countries from the preferential program. The GPT was established in 1974; the most recent overall review of the program took place 20 years ago. In the intervening two decades the global economy as a whole and the economic development of many of the beneficiary developing countries have changed. Canada's GPT program currently provides duty-free or preferential duty treatment, except for most apparel, footwear, and certain agricultural products, to 175 beneficiary countries and territories. The government review will be examining the status of countries currently on the list, proposing to remove from the GPT program countries that(i) are classified for two consecutive years as high income or upper middle income economies according to the latest World Bank income classifications; or(ii) have a share of world exports that is equal to or greater than 1% for two consecutive years according to the latest World Trade Organization trade statistics. Based on these criteria, the Canadian government intends to withdraw GPT eligibility from 72 countries or territories effective July 1, 2014. The complete list is included in the Gazette notice. Canadian authorities will consider any changes to product coverage as well as possible modifications to the current requirement that at least 60% of the value of a product contain inputs originating in one or more GPT beneficiaries or Canada. The government is also seeking input from interested parties on the program's product coverage, safeguard mechanism, rules of origin, and other questions.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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