Canada Poised to Become "Tariff-Free Zone" for Manufacturers Thanks to Budget 2010
Ottawa, March 9, 2010
2010-019
Measures in Budget 2010 to eliminate all remaining tariffs on manufacturing
inputs and machinery and equipment will be critical to creating jobs and growing
the economy, according to the Honourable Jim Flaherty, Minister of Finance, and
the Honourable Peter Van Loan, Minister of International Trade, who highlighted
the measures today. Ministers Flaherty and Van Loan were joined at the event by
the Honourable Denis Lebel, Minister of State (Economic Development Agency of
Canada for the Regions of Quebec).
“Making Canada a tariff-free zone for manufacturers will keep us ahead of the
pack and show the rest of the world that we’re open for business,” said Minister
Flaherty. “It will help keep good manufacturing jobs here in Canada, and create
many more.”
Budget 2010: Leading the Way on Jobs and Growth builds on measures taken in
Budget 2009 to permanently eliminate tariffs applied on a broad range of
machinery and equipment, providing average annual savings of $88 million. This
year’s budget will eliminate all remaining tariffs on manufacturing inputs and
machinery and equipment, providing an additional $300 million in annual duty
savings for Canadian business.
This historic step will position Canada as the first among its G20 partners to
allow manufacturers to operate without the cost of tariffs on inputs and
machinery and equipment. This tariff elimination is expected to result in the
creation of up to 12,000 jobs over time.
“Eliminating these tariffs will encourage our companies to acquire the
equipment, parts and machinery they need to become more competitive,” said
Minister Van Loan. “Along with our aggressive trade agenda, this initiative will
help Canadian companies and workers compete and win in markets around the
world.”
The majority of these 1,541 tariffs were eliminated March 5, 2010, with the
remainder being gradually eliminated by no later than January 1, 2015. When the
second phase of tariff relief is fully implemented, more than $5 billion in
imports will be liberalized.
“Our government has made a commitment to keeping Canada open for trade and
investment and we have followed through with concrete measures,” concluded
Minister Lebel.
For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
Monika Bujalska
Press Secretary
Office of the Minister of International Trade
613-992-9304
Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
Simon Bachand
Press Secretary
Office of the Honourable Denis Lebel
Canada Economic Development
613-996-6236
