Revisions To The General Preferential Tariff (GPT): Higher Tariffs Foreseen

A seemingly trivial notice published in the December 22, 2012 edition of the Canada Gazette, Part I could have a major financial impact not only for importers, but also for Canadian consumers. Indeed, the proposed amendments to the General Preferential Tariff (GPT) by the Canadian government could trigger an increase in tariffs on imported goods from more than 70 different countries. Importers should conduct a thorough review of their imports as of now in order to determine whether the proposed measures will affect them.

History

In 1974, Canada, on the recommendation of the United Nations Conference on Trade and Development and in concert with other industrialized nations, instituted a preferential customs tariff program to promote the importation of products originating in developing countries. The program, known as the GPT, was intended to assist in the industrialization of countries with relatively precarious economic situations. Today, the GPT grants