Canada imposes 10% tariff on imported canned vegetables to protect domestic industry
Ottawa: Canada will impose a 10% surtax on most imported canned vegetables for up to 200 days as the government seeks to protect domestic producers from a surge in foreign shipments that it says threatens the country's processing industry.
Finance Minister Francois-Philippe Champagne announced the provisional safeguard measure on Thursday, saying it was needed to address "critical circumstances" facing Canada's canned vegetable sector and to counter the effects of trade diversion on local growers and processors.
The tariff took effect on June 19 and will remain in place while the Canadian International Trade Tribunal completes an investigation into whether rising imports are causing, or threatening to cause, serious injury to Canadian producers.
"The government is committed to standing up for Canadian producers and ensuring they have the support they need to remain competitive in the face of global challenges," Champagne said in a statement.
The tribunal launched its safeguard inquiry in March and is expected to deliver its findings by Sept. 9. If it determines that imports are not harming domestic producers, the provisional tariff will be lifted immediately.
Should the tribunal find evidence of injury, it will recommend whether longer-term trade remedies are warranted, while also considering the impact on food affordability and food security.
Under Canada's international trade obligations, imports from the United States, Mexico, Israel, Chile and developing countries will be exempt from the measure.
The move comes as governments around the world increasingly use trade and industrial policy tools to protect domestic industries amid heightened global economic competition and shifting trade flows.
Safeguard measures are permitted under World Trade Organization rules when imports rise sharply enough to cause or threaten serious injury to domestic producers. In urgent cases, countries may impose provisional measures for up to 200 days while investigations are underway.
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