Canadian Finance Minister Jim Flaherty said on Sunday the government would eliminate tariffs on dozens more products used by Canadian manufacturers, aiming to lower their costs and encourage more hiring.
This initiative eliminates tariffs across a wide range of sectors, including food processing, apparel, electrical equipment, footwear, household furniture and furnishings, metals, motor vehicles and transport equipment, pharmaceuticals, and pulp and paper.
Eliminating tariffs on goods used by Canadian manufacturers in their operations will translate into a direct reduction of production costs, enhancing the competitiveness of Canadian firms in both domestic and foreign markets.
It will also reduce the administrative burden on businesses related to certain customs regulations.
The elimination of tariffs covers over 70 product categories, including:
• Apple juice concentrate and other mixtures used in manufacturing beverages;
• 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;
• Plastic and rubber conveyor belts.
As part of the Economic Action Plan, the Government implemented broad tariff relief measures to enhance the competitiveness of Canadian firms and make Canada a tariff-free zone for industrial manufacturers by 2015. Budget 2010 also included a commitment to work with Canadians to identify additional areas where tariff relief could take place. This initiative is the result of extensive consultations further to this commitment, including the publication of a notice in Part I of the Canada Gazette on February 5, 2011.
More information will be published in the December 7 edition of the Canada Gazette,Part II.