Feds drop tariffs
By Food in Canada staff
Business OperationsThe federal government has announced further tariff relief for Canada’s manufacturers, including the food-processing sector
Ottawa – The federal government announced on Nov. 27 that it will be eliminating tariffs that cover more than 70 product categories – including the food processing sector.
For Canadian food processors, the import duties they pay to get apple juice concentrate and other mixtures used in manufacturing beverages are being eliminated.
Industry response
The Food Processors of Canada say it fully supports the initiative.
The association, which represents Canadian food processing businesses, says the initiative levels the playing field so that Canadian processors can better compete against imported finished product.
“The tariff is a tax on consumers and business,” says Christopher Kyte, president of the Food Processors of Canada. “Eliminating the tariff will reduce consumer prices and keep jobs in Canada.”
The Food Processors of Canada adds that there will be no impact on apple growers as processors will continue to use high-quality Canadian apples to make single strength juice, apple sauce and other specialty products.
Savings
The federal government says the move is expected to save Canadian businesses about $32 million annually.
In Canada’s Economic Action Plan, the feds eliminated all tariffs on imported machinery and equipment and manufacturing inputs to make Canada a tariff-free zone for industrial manufacturers by 2015.
In Budget 2010, the government committed to consulting with Canadians to identify areas where further trade liberalization could take place. The tariff relief just announced is a result of those consultations.
The federal government says eliminating tariffs on goods used in manufacturing helps Canadian companies operating in a wide range of sectors by lowering their production costs. This will benefit Canadian manufacturers by increasing the competitiveness of their operations, thus contributing to a stronger economy.
Since 2009, the Government has eliminated more than 1,800 tariff items and provided more than $435 million in annual tariff relief to Canadian businesses.
More information will be published in the Dec. 7 edition of the Canada Gazette, Part II. A partial list includes:
• Hardware to make furniture (for example, casters);
• Certain parts (like fasteners) used in making footwear and clothing;
• Certain parts to make transportation equipment (like trailers);
• Gelatine capsules used to make pharmaceuticals; and
• Plastic and rubber conveyor belts.
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