Generalized
system of preferences
Notification by Canada
Addendum
The following communication, dated 19 June 2024,
is being circulated at the request of the delegation of Canada.
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NOTIFICATION REGARDING CANADA'S GENERAL
PREFERENTIAL TARIFF
AND LEAST‑DEVELOPED COUNTRY TARIFF
This is
to inform the Committee on Trade and Development that Canada has extended for a
further ten years, to 31 December 2034, the General Preferential Tariff (GPT)
and Least-Developed Country Tariff (LDCT) and that some changes are also being
made to these two tariff treatments. Canada has also created the legislative
framework for the General Preferential Tariff Plus (GPT+), which will be
developed over the coming years.
1 EXTENSION
OF THE GPT AND LDCT
On 22
June 2023, Royal Assent was given to the Budget
Implementation Act, 2023, No. 1. Through this Bill, the GPT and LDCT
were extended to 31 December 2034. The new expiry dates are set out in the Customs Tariff (available online http://laws-lois.justice.gc.ca/eng/acts/c-54.011/FullText.html) in section 36 for the GPT and
section 40 for the LDCT.
2 Legislative
framework for the gpt+
Through
the Budget Implementation Act, 2023, No. 1,
Canada established the legislative framework for the GPT+ program that will
incentivize countries to adhere to international standards on human rights,
labour conditions, gender equality and climate change. (See sections 36.1
through 36.4 of the Customs Tariff,
available online at http://laws-lois.justice.gc.ca/eng/acts/c-54.011/FullText.html).
The
design, development, and operationalization of the General Preferential Tariff
Plus (GPT+) program will be undertaken in the coming years and is subject to
future decisions of the Government of Canada to determine, among other aspects,
the level of tariff benefits, products affected, country eligibility and
compliance criteria.
When it
enters into effect, the GPT+ program will complement, rather than replace, the
GPT. Developing countries will need to be eligible for the GPT in order to be
eligible for the GPT+.
3 CHANGES
TO THE LIST OF BENEFICIARIES FOR THE GPT AND LDCT
Effective
1 January 2025, Canada will withdraw entitlement to the LDCT from Cape Verde,
Samoa, Tuvalu and Vanuatu.
Effective 1 January 2025, Canada will
withdraw entitlement to the GPT:
Armenia,
Belize, British Virgin Islands, Fiji, Georgia, Guatemala, Guyana, Iraq,
Marshall Islands, Moldova, Nauru, Paraguay, Tonga, Turkmenistan, Tuvalu and
Vietnam.
Effective
1 January 2025, Canada will extend entitlement to the GPT to Lebanon and
Tunisia.
4 CHANGES
TO THE RULES OF ORIGIN REGULATIONS and direct shipment requirements
Effective
1 January 2025, Canada is introducing new, simplified rules of origin and
direct shipment requirements that will apply to the GPT, LDCT and CCCT, as well
as the GPT+ when it enters into effect. These changes will help beneficiary
countries maximize utilization of benefits across the programs.
See:
General Preferential Tariff, General
Preferential Tariff Plus and Least Developed Country Tariff Rules of Origin
Regulations available at:
https://laws-lois.justice.gc.ca/eng/regulations/SOR-2023-210/FullText.html
Direct Shipment
(Most-Favoured-Nation Tariff, General Preferential Tariff, General Preferential
Tariff Plus, Least Developed Country Tariff, Commonwealth Caribbean Countries
Tariff, Australia Tariff and New Zealand Tariff) Regulations available at:
https://laws-lois.justice.gc.ca/eng/regulations/SOR-2023-212/FullText.html
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