The government of Canada announced recently a number of significant changes concerning the tariff preferences the country extends to developing countries. These changes will take effect Jan. 1, 2015, and include the following.
Beneficiaries. Benefits under the General Preferential Tariff are being withdrawn with respect to all goods that originate in the following countries: Algeria, American Samoa, Antigua and Barbuda, Argentina, Azerbaijan, Bahamas, Bahrain, Barbados, Bermuda, Bosnia and Herzegovina, Botswana, Brazil, Brunei, Cayman Islands, Chile, China, Colombia, Costa Rica, Croatia, Cuba, Dominica, Dominican Republic, Ecuador, Equatorial Guinea, French Polynesia, Gabon, Gibraltar, Grenada, Guam, Hong Kong, India, Indonesia, Iran, Israel, Jamaica, Jordan, Kazakhstan, Kuwait, Lebanon, Macao, Macedonia, Malaysia, Maldives, Mariana Islands, Mauritius, Mexico, Namibia, Netherlands Antilles, New Caledonia and Dependencies, Oman, Palau, Panama, Peru, Qatar, Russia, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Seychelles, Singapore, South Africa, South Korea, Suriname, Thailand, Trinidad and Tobago, Tunisia, Turkey, Turks and Caicos Islands, United Arab Emirates, Uruguay, Venezuela, and U.S. Virgin Islands. This change will not apply to goods that were in transit to Canada before Jan. 1, 2015.
GPT benefits will continue to be available to 103 countries. However, Canada intends to continue to review GPT eligibility biannually and to remove benefits for countries that (a) are classified for two consecutive years as high- or upper-middle income according to the last World Bank income classifications or (b) have a 1% or greater share of world exports for two consecutive years according to the latest World Trade Organization statistics.
Equatorial Guinea and the Maldives are also being removed from benefits under the Least-Developed Country Tariff because they are now classified as high- and upper-middle income countries, respectively.