OTTAWA: As the incoming Trump administration talks about piling on new tariffs to discourage imports and protect American jobs, the Canadian government quietly moved in the opposite direction over the holidays.
A customs tariff order published on December 28, 2016 in the Canada Gazette describes how roughly 200 different tariffs on imported food ingredients will be repealed or amended.
The order says that based on recent import levels, an estimated $48 million in tariffs are collected annually on these products. That’s roughly how much revenue the government now gives up. And what manufacturers will save, accordingly.
The cuts took effect on January 16, 2017. Some food ingredients already entered Canada tariff-free under the North American Free Trade Agreement (NAFTA.)
But Finance Canada estimated that about 57 per cent of these imports were subject to tariffs. The duties averaged about five per cent.
