Canada cuts tariffs to give food manufacturing a boost

The Canadian government has eliminated a long list of tariffs on imported food ingredients in an effort to boost Canada’s food manufacturing industry.

A customs tariff order published Dec. 28 in the Canada Gazette described how approximately 200 different tariffs on imported food ingredients were going to be repealed or amended. Based on recent import levels, according to the order, an estimated $48 million in tariffs are collected annually on these products. The cuts took effect Jan. 16.

While some food ingredients already entered Canada tariff-free under the North American Free Trade Agreement (NAFTA), Finance Canada estimates that about 57 per cent of these imports were subject to tariffs. The duties averaged about five per cent, according to a story on CBC.ca.

A lengthy list of fruits, vegetables, cereals, grains, spices, fats, oils, food preparations and chocolate products (but nothing from the dairy, egg and poultry sectors, which are covered by Canada’s supply management system) now classify as duty-free.