Government Plans Further Tariff Relief to Benefit Canadian Businesses

(Department of Finance)

The Honourable Jim Flaherty, Minister of Finance, today announced public consultations on the Government's intention to eliminate all remaining tariffs on imported machinery and equipment and manufacturing inputs used by Canadian industry. The consultations will run until November 6.

“In Budget 2009, our Government unilaterally eliminated tariffs on a wide range of machinery and equipment, lowering business costs by an estimated $440 million over five years,” said Minister Flaherty. “The tariff relief initiative now being considered follows from our Economic Action Plan in January and would reduce production costs even further, providing both a short-term boost and a long-term competitive edge for Canadian industry.”

“It also demonstrates, once again, Canada's solid commitment to open global markets. Should the proposed cuts be implemented, Canada would boast a tariff-free environment for imported inputs and machinery used by Canadian enterprises. Along with a world-leading financial system and the lowest overall tax rate on new business investment in the G7 in 2010, it adds up to a compelling Canadian advantage.”

The consultations are a follow-up to commitments made in Budget 2009 to identify additional areas where tariff relief could be provided. The tariff relief under consideration would benefit a broad range of manufacturing industries.

Full details on the public consultations can be found in the September 19, 2009 edition of the Canada Gazette, Part I.