Public Consultation on the Renewal of Canada’s Tariff Preference Programs for Developing Countries
Public Consultation on the Renewal of Canada’s Tariff Preference Programs for Developing Countries
Planned
2022-08-03
2023-01-15

Current Status: Open

Join In

This consultation seeks feedback on proposals for the renewal of Canada’s tariff preference programs for imports from developing and least developed countries (LDCs), two of which are set to expire at the end of 2024. The proposals present options to introduce inclusive trade elements, improve the programs’ performance, enhance predictability, and ensure alignment with Canada’s broader trade and development policy objectives.

Under the Generalized System of Preferences (GSP), Canada currently extends non-reciprocal preferential tariffs to imports from developing and least developed countries through two programs, in order to facilitate and promote their export-driven industrialization and development:

  • (1) The General Preferential Tariff (GPT) offers duty-free treatment or reduced tariffs to 106 developing countries on 84 per cent of tariff lines. This includes most goods, other than apparel, textile products, footwear, and certain sensitive agricultural goods including supply-managed products.
  • (2) The Least Developed Country Tariff (LDCT) offers duty-free treatment for essentially all goods, excluding only over-quota supply-managed products, from 49 LDCs largely based on the UN List of LDCs.

Legislative authority for the GPT and LDCT programs expires and has been renewed by Parliament every 10 years since their establishment. The programs were last renewed in 2015, and are currently set to expire on December 31, 2024. 

Specifically, we want to hear from you on:

  1. Creating a new GPT+ program extending tariff benefits based on labour and environmental criteria;
  • This proposal would expand tariff benefits for developing countries that meet certain international labour rights and environmental standards and ensure closer alignment with Canada's broader trade and development policy objectives and free trade agreements.
  • Updating GPT eligibility through a formal five-year review process;
  • Introducing a 3-year transition period following LDCT graduation to minimize supply chain disruptions; and,
  • Simplifying program requirements to ease administrative burden and reduce compliance costs for businesses.
  • The consultation paper contains additional details. Please review it in full here.

    Send us an email:

    Please send us your written submission to Tariff-tarif@fin.gc.ca with "Consultation on the Renewal of Canada's Tariff Preference Programs for Developing Countries" as the subject line.

    Who is the focus of this consultation?

    Through this consultation, we want to hear from Canadian businesses, non-governmental organizations, civil society groups and members of the public.

    What's next?

    Our conversation doesn't end here.

    Your input will inform the research our economists have been doing to help inform decisions on the renewal of Canada's tariff preference programs for developing countries.

    Those providing comments are asked to indicate clearly the name of the individual or the organization that should be identified as having made the submission. In order to respect privacy and confidentiality, please advise when providing your comments whether you:

    • consent to the disclosure of your comments in whole or in part;
    • request that your identity and any personal identifiers be removed prior to publication; or
    • wish that any portions of your comments be kept confidential (if so, clearly identify the confidential portions).

    Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Should you indicate that your comments, or any portions thereof, be considered confidential, the Department of Finance will make all reasonable efforts to protect this information.

    Related link

    Public Consultations on Renewal of Canada's Tariff Preference Programs for Developing Countries

    Get in touch

    Yannick Mondy
    Director, Trade and Tariff Policy
    International Trade Policy Division
    Department of Finance
    Ottawa, Ontario
    K1A 0G5
    tariff-tarif@fin.gc.ca