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ARTICLE · 12 SEPTEMBER 2022

Could Imported Apparel Start Costing 17% More? Canada Revising Its Special Duties For Developing Countries

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Canada continues to reduce duties on goods from developing and least developed countries in order to assist in those countries' economic development. Those duty reductions are set to expire in December 2024.

CanadaInternational Law
Jonathan O'Hara
Jonathan O'Hara
William Pellerin
William Pellerin
Tayler Farrell
Tayler Farrell
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Canada continues to reduce duties on goods from developing and least developed countries in order to assist in those countries' economic development. Those duty reductions are set to expire in December 2024.1 The potential expiry, renewal and revision of those programs is providing both real opportunities and significant threats to Canada's apparel industry. Currently, apparel from least developed countries are imported duty-free, by contrast, apparel from developed, and even developing countries are subject to a 17% duty on average.

Finance Canada has launched public consultations on the renewal and amendment of the two tariff programs at issue.2 These programs are the General Preferential Tariff ("GPT"), applicable to developing countries (though the tariff program generally excludes apparel and footwear), and the Least Developed Country Tariff ("LDCT"), which applies to least developed countries (which does apply to apparel and footwear).

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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