{"id":63953,"date":"2017-01-20T17:06:15","date_gmt":"2017-01-20T17:06:15","guid":{"rendered":"http:\/\/usa.timesofnews.com\/bucking-protectionist-trends-canada-cuts-48m-worth-of-food-tariffs.html"},"modified":"2017-01-20T17:06:15","modified_gmt":"2017-01-20T17:06:15","slug":"bucking-protectionist-trends-canada-cuts-48m-worth-of-food-tariffs","status":"publish","type":"post","link":"https:\/\/usa.timesofnews.com\/breaking-news\/political\/bucking-protectionist-trends-canada-cuts-48m-worth-of-food-tariffs.html","title":{"rendered":"Bucking protectionist trends, Canada cuts $48M worth of food tariffs"},"content":{"rendered":"<p>As the incoming Trump administration talks about piling on new tariffs to discourage imports and protect American jobs, the Canadian government quietly moved\u00a0in the opposite direction over the holidays:\u00a0eliminating tariffs.\u00a0<\/p>\n<p>Why? To support Canadian jobs.<\/p>\n<p>A customs tariff order published Dec. 28 in the Canada Gazette describes how roughly 200 different tariffs on imported food ingredients will be repealed or amended.<\/p>\n<p>The order says that based on recent import levels, an estimated $48 million in tariffs\u00a0are collected annually on these products.\u00a0<\/p>\n<p>That&#8217;s roughly\u00a0how much revenue the government now gives up. And what\u00a0manufacturers will save, accordingly.<\/p>\n<p>The cuts took effect Jan. 16.<\/p>\n<p>Some food ingredients already entered\u00a0Canada tariff-free under\u00a0the North American Free Trade Agreement (NAFTA.)<\/p>\n<p>But\u00a0Finance Canada estimated\u00a0that about\u00a057 per cent of\u00a0these imports were subject to tariffs. The duties averaged\u00a0about five per cent.<\/p>\n<h2>Surprise! It&#8217;s duty-free now<\/h2>\n<p>Wanting to\u00a0boost the competitiveness of Canadian manufacturing is\u00a0not\u00a0new: the 2009 and 2010 budgets of\u00a0the previous Conservative government cut tariffs on imported machinery and equipment.<\/p>\n<p>The Liberals have added\u00a0agri-food\u00a0ingredients to that list.<\/p>\n<p>They\u00a0floated the idea in last spring&#8217;s budget and a\u00a0consultation followed.\u00a0But no minister or press release popped up\u00a0to say what was decided.<\/p>\n<p>A long list of fruits and vegetables, cereals and grains, spices, fats and oils, food preparations\u00a0and chocolate products \u2014 but nothing from the dairy, egg and poultry sectors covered by\u00a0Canada&#8217;s controversial supply management system\u00a0\u2014 now classify as\u00a0duty-free.<\/p>\n<ul>\n<li>\n<p><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/canada-trump-dairy-industry-1.3932722\">U.S. dairy groups urge Trump to set his sights on Canadian policies<\/a><\/strong><\/p>\n<\/li>\n<\/ul>\n<p>Some new tariff classifications were created to ensure foods destined for retail sale don&#8217;t slip through.\u00a0<\/p>\n<p \/>\n<p>The new cuts took hold\u00a0without any fanfare.<\/p>\n<p>One food manufacturer contacted by CBC News to comment on the potential savings\u00a0hadn&#8217;t even heard about it yet.<\/p>\n<p>But the Food  Consumer Products of Canada, the largest industry group representing\u00a0familiar brands like Campbell&#8217;s, Kellogg&#8217;s and Kraft, has been lobbying for a change like this for several years.<\/p>\n<p>&#8220;This is a really positive step,&#8221; said Carla\u00a0Ventin, the association&#8217;s vice-president of federal government affairs.\u00a0<\/p>\n<h2>&#8216;Moving in a different direction&#8217;<\/h2>\n<p>The industry&#8217;s cause is\u00a0fashionable now, with the chair of Finance Minister Bill Morneau&#8217;s\u00a0economic advisory panel, Dominic Barton,\u00a0touting the\u00a0growth potential of the Canadian agri-food industry as international food demand\u00a0grows.<\/p>\n<p> <img decoding=\"async\" src=\"http:\/\/usa.timesofnews.com\/wp-content\/plugins\/RSSPoster_PRO\/cache\/f22f4_dominic-barton-economy-20160520.jpg\" alt=\"Dominic Barton Economy 20160520\" width=\"100%\" \/><\/p>\n<p class=\"figure-caption\">Dominic Barton chairs federal Finance Minister Bill Morneau&#8217;s economic advisory committee. In a 2016 interview with The Canadian Press, he said Canada has all the ingredients to build &#8216;global champions&#8217; in its agri-food industries. (Paul Chiasson\/Canadian Press)<\/p>\n<p>Cutting these tariffs in a\u00a0more protectionist international trade climate \u2014 with the United Kingdom&#8217;s\u00a0Brexit\u00a0split from the European Union&#8217;s single market looming and an\u00a0incoming U.S. administration musing about what tariff\u00a0walls it might erect to protect domestic industries\u00a0\u2014 is even more interesting.<\/p>\n<p>&#8220;This government is moving in a different direction,&#8221; Ventin said. It&#8217;s recognized\u00a0that\u00a0North American manufacturing is\u00a0highly integrated.<\/p>\n<p>&#8220;Products cross back and forth across the border,&#8221; she said. &#8220;We don&#8217;t grow everything in Canada. We don&#8217;t process everything in Canada.&#8221;<\/p>\n<p>No banana or pineapple trees grow here. There&#8217;s no such thing as Canadian-grown cocoa. Need papaya for your chutney? That comes from somewhere else.<\/p>\n<p>Common spices and seasonings like black pepper, nutmeg and\u00a0cinnamon now enter tariff-free.<\/p>\n<h2>Threat to domestic growers?<\/h2>\n<p>The tariff list also includes produce that does grow in Canada.<\/p>\n<p>The Canadian Horticultural Council, which represents domestic growers, says it wasn&#8217;t notified of last spring&#8217;s consultation.<\/p>\n<p>&#8220;At the moment, we can&#8217;t say with certainty how much of an impact the regulation will have on our members,&#8221; said a statement from its president, Keith Kuhl.<\/p>\n<p>Food processors don&#8217;t see a serious risk of\u00a0domestic ingredients being\u00a0displaced.<\/p>\n<p>&#8220;Supply chains with companies\u00a0are unique and well-established. They don&#8217;t change overnight,&#8221; Ventin said, citing Canadian food safety and environmental standards and transport costs as reasons why Canadian manufacturers buy local if\u00a0they can.<\/p>\n<p>&#8220;A great deal of thought went into which tariff items \u2026 will be removed,&#8221; she said.<\/p>\n<p> <img decoding=\"async\" src=\"http:\/\/usa.timesofnews.com\/wp-content\/plugins\/RSSPoster_PRO\/cache\/f22f4_food-oreo-centenary-20120229.jpg\" alt=\"FOOD Oreo Centenary 20120229\" width=\"100%\" \/><\/p>\n<p class=\"figure-caption\">Food processors like this cookie factory in Montreal employ over 300,000 people across Canada. (Ryan Remiorz\/Canadian Press)<\/p>\n<p>But crops sometimes fail. International\u00a0suppliers\u00a0are sometimes the only alternative.<\/p>\n<p>&#8220;I&#8217;m not sure how much it will save,&#8221; said Chris Kyte, the president of the Food Processors of Canada, which represents about 100 Canadian-owned companies that make things like frozen entrees, pizza and beverages.<\/p>\n<p>&#8220;It&#8217;s one step to becoming more competitive,&#8221; he said.\u00a0&#8220;While it might be a 10 per cent or a 20 per cent tariff, and it might not be a large ingredient, every little bit helps, right?&#8221;<\/p>\n<p>Particularly in a tight-margin business like the food industry.<\/p>\n<p>&#8220;What I find gratifying is that the government recognizes that food manufacturing is important,&#8221; Kyte\u00a0said. &#8220;You think of the way they fawn over car companies. They would have gotten this a long time ago.&#8221;<\/p>\n<h2>Large employer<\/h2>\n<p>Food manufacturing employs about 300,000 Canadians nationally \u2014\u00a0not only in large, urban\u00a0enterprises but also in small, local facilities\u00a0closer to\u00a0farm suppliers.<\/p>\n<p>&#8220;It&#8217;s the largest employer in rural Canada and we do a large export business,&#8221; Kyte said.<\/p>\n<p>The government&#8217;s move\u00a0levels the playing field.<\/p>\n<p>&#8220;In the United States they got rid of tariffs on [food ingredient]\u00a0inputs a long time ago,&#8221; he said. &#8220;Our government&#8217;s really getting around to it today.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the incoming Trump administration talks about piling on new tariffs to discourage imports and protect American jobs, the Canadian government quietly moved\u00a0in the opposite direction over the holidays:\u00a0eliminating tariffs.\u00a0 Why? To support Canadian jobs. A customs tariff order published Dec. 28 in the Canada Gazette describes how roughly 200 different tariffs on imported food [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[84],"class_list":["post-63953","post","type-post","status-publish","format-standard","hentry","category-political","tag-political"],"_links":{"self":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/posts\/63953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/comments?post=63953"}],"version-history":[{"count":0,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/posts\/63953\/revisions"}],"wp:attachment":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/media?parent=63953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/categories?post=63953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/tags?post=63953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}