ARCHIVED — Order Amending the Schedule to the Customs Tariff (Extension of Most-Favoured-Nation Tariff to Libya)

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Vol. 143, No. 4 — February 18, 2009

Registration

SOR/2009-24 January 29, 2009

CUSTOMS TARIFF

P.C. 2009-129 January 29, 2009

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 31 of the Customs Tariff (see footnote a), hereby makes the annexed Order Amending the Schedule to the Customs Tariff (Extension of Most-Favoured-Nation Tariff to Libya).

ORDER AMENDING THE SCHEDULE TO THE CUSTOMS TARIFF (EXTENSION OF MOST-FAVOURED-NATION TARIFF TO LIBYA)

AMENDMENT

1. The List of Countries and Applicable Tariff Treatments set out in the schedule to the Customs Tariff (see footnote 1) is amended by adding the following in alphabetical order:

Libya

COMING INTO FORCE

2. This Order comes into force on the day on which it is registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issue and objectives

Libya is one of only two countries whose products are currently subject to Canada’s General Tariff, under which most imports are subject to a customs duty rate of 35%.

This Order amends the List of Countries in the schedule of the Customs Tariff to extend Most-Favoured-Nation (MFN) tariff treatment to Libya. This is part of the normal course of action in the normalization of the relations between Canada and Libya.

Description and rationale

Libya is one of only two countries whose products are subject to Canada’s General Tariff. Under the General Tariff, most imports are subject to an import duty of 35%, which is higher than the average MFN tariff of 5.5%. Under its World Trade Organization (WTO) obligations, Canada grants MFN tariff treatment to all its trading partners that are members of that organization.

Libya applied to become a WTO member in 2001. In 2004, Canada and other WTO members granted observer status to Libya and agreed to start talks on its membership bid. Other trading partners have already granted MFN tariff treatment to Libya in advance of its WTO membership, including the European Union (2003) and the United States (2006).

Relations between Canada and Libya are being normalized, as demonstrated by the appointment of a resident ambassador in Tripoli in 2004 and the designation of a Libyan ambassador in Ottawa in 2005. Canada and Libya are cooperating on a variety of subjects such as Darfur, culture and the fight against terrorism. There is interest on both sides to expand on bilateral commercial activities.

Certain Canadian businesses are expected to benefit from this tariff treatment change as they would get access to a cheaper source of inputs. However, given current trade patterns, the annual amount of duty foregone by the Government as a result of this Order is expected to be minimal (i.e. lower than one thousand dollars).

Consultation

A notice was issued in Part I of the Canada Gazette on July 26, 2008, inviting views from interested parties. The Government of Alberta and the Canadian Fertilizer Institute have expressed support for the initiative. The Department of Foreign Affairs and International Trade, Industry Canada and Agriculture and Agri-Food Canada support this initiative. No opposition was received.

Implementation, enforcement and service standards

The Canada Border Services Agency is responsible for the administration of and compliance with customs and tariff legislation and regulations. In the course of its administration of these tariff changes, the Agency will inform the importing community.

Contact

Charles Asselin
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Telephone: 613-992-5593

Footnote a
S.C. 1997, c. 36

Footnote 1
S.C. 1997, c. 36